Bill > HB1196

This bill updates the Uniform Unclaimed Property Act to include provisions specifically addressing virtual currency, defining it as a digital representation of value used as a medium of exchange that does not have legal tender status. The bill establishes that virtual currency is considered abandoned three years after the last indication of interest by the owner, and provides the state treasurer (administrator) discretion to decline acceptance of virtual currency that is not freely transferable, has nominal value, or would cost more to maintain than it is worth. Holders of unclaimed virtual currency are required to liquidate the property within thirty days prior to filing their annual report and remit the proceeds to the administrator, with provisions for alternative disposition if liquidation is not possible. The bill also modifies notice requirements for unclaimed property, mandating that for property valued at fifty dollars or more, holders must mail notices to owners, with specific language about potential escheatment or sale of the property. Additionally, the bill expands reporting requirements for holders, including more detailed information about the property, its history, and previous holders. Importantly, the bill clarifies that owners have no recourse against the administrator or holder for any value gained after liquidation of the virtual currency.

Budget and Finance

https://sdlegislature.gov/#/Session/Bill/26050