Companion bills have been introduced in Iowa proposing to amend the banking provisions in Iowa’s Unclaimed Property law to include electronic messaging as an activity that constitutes contact.
On January 17, 2023, Iowa House Study Bill 33 was introduced and on January 18, 2023, Senate Study Bill 1055 was introduced. The identical bills propose to add electronic messaging as an activity that updates the date of last contact for purposes of restarting the dormancy period. Furthermore, the bill adds that the non-return of electronic messaging will also update contact so long as the banking organization maintains a record of all returned electronic messaging. Finally, the due diligence provision has been updated. Currently, banking organizations must send notice by certified mailing. The bills now permit electronic messaging in lieu of certified mail.
A definition of “electronic messaging” is added and means “electronic mail, text messaging, or other electronic means of communication, including an online banking website application”.
If passed, the new law would become effective 7/1/23.