25.696.11 100th Legislative Session 1196
2025 South Dakota Legislature
House Bill 1196
ENROLLED
AN ACT
ENTITLED An Act to update Uniform Unclaimed Property Act to include provisions
related to virtual currency and notice requirements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 43-41B-1 be AMENDED:
43-41B-1. Terms in this chapter mean:
(1) "Administrator," the state treasurer;
(2) "Apparent owner," the person whose name appears on the records of the holder
as the person entitled to property held, issued, or owing by the holder;
(3) "Attorney general," the chief legal officer of this state;
(4) "Banking organization," any bank, trust company, savings bank, industrial bank,
land bank, safe deposit company, private banker, or any organization defined by
other law as a bank or banking organization;
(5) "Business association," a nonpublic corporation, joint stock company, investment
company, business trust, partnership, cooperative, or association for business
purposes of two or more individuals, whether or not for profit, including a banking
organization, financial organization, insurance company, or utility;
(6) "Domicile," the state of incorporation of a corporation or the state of the principal
place of business of an unincorporated person;
(7) "Financial organization," a savings and loan association, cooperative bank, building
and loan association, or credit union;
(8) "Holder," a person, wherever organized or domiciled, who is:
(a) In possession of property belonging to another;
(b) A trustee; or
(c) Indebted to another on an obligation;
(9) "Insurance company," an association, corporation, fraternal or mutual benefit
organization, whether or not for profit, which is engaged in providing insurance 25.696.11 2 1196
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coverage, including accident, burial, casualty, credit life, contract performance,
dental, fidelity, fire, health, hospitalization, illness, life, including endowments and
annuities, malpractice, marine, mortgage, surety, and wage protection insurance;
(10) "Intangible property," includes:
(a) Moneys, checks, drafts, deposits, interest, dividends, unpaid mineral
proceeds, royalties, vendor checks, income, unpaid commissions, unpaid
overcharges, and unpaid accounts payable;
(b) Credit balances, customer overpayments, gift certificates, security deposits,
refunds, credit memos, unpaid wages, unused airline tickets, and
unidentified remittances;
(c) Stocks and other intangible ownership interests in business associations;
(d) Moneys deposited to redeem stocks, bonds, coupons, and other securities,
or to make distributions;
(e) Amounts due and payable under the terms of insurance policies;
(f) Amounts distributable from a trust or custodial fund established under a
plan to provide health, welfare, pension, vacation, severance, retirement,
death, stock purchase, profit sharing, employee savings, supplemental
unemployment insurance, or similar benefits; and
(g) United States savings bonds held or owing in this state by any person, or
issued or owed in the course of a holder's business, or by a state or other
government, governmental subdivision, agency, or instrumentality;
(11) "Last known address," any description, code, or other indication of the location of
the apparent owner, which identifies the state where the apparent owner is located,
even if the description, code, or other indication of location is not sufficient to direct
the delivery of first-class United States mail to the apparent owner;
(12) "Owner," a depositor in the case of a deposit, a beneficiary in case of a trust other
than a deposit in trust, a creditor, claimant, or payee in the case of other intangible
property, or any other person having a legal or equitable interest in propert y
subject to this chapter or his legal representative;
(13) "Person," an individual, business association, state or other government,
governmental subdivision or agency, public corporation, public authority, estate,
trust, two or more persons having a joint or common interest, or any other legal
or commercial entity;
(14) "Property," includes money, rights to claim refunds or rebates, postal savings
deposits, bonds, United States savings bonds, notes, certificates, policies of 25.696.11 3 1196
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insurance, other instruments of value, choses -in-action, obligations whether
written or unwritten and anything of value of any nature whatsoever;
(15) "State," any state, district, commonwealth, territory, insular possession, or any
other area subject to the legislative authority of the United States;
(15A) "Unclaimed Property Division," a division within the Office of the State Treasurer;
(16) "Utility," a person who owns or operates for public use any plant, equipment,
property, franchise, or license for the transmission of communications or the
production, storage, transmission, sale, delivery, or furnishing of electricity, water,
steam, or gas; and
(17) "Virtual currency," a digital representation of value used as a medium of exchange,
unit of account, or store of value, which does not have legal tender status
recognized by the United States, but not including:
(a) The software or protocols governing the transfer of the digital
representation of value;
(b) Game-related digital content; or
(c) A loyalty or gift card.
Section 2. That a NEW SECTION be added to chapter 43-41B:
Virtual currency is deemed abandoned three years after the latest indication of
interest. The administrator may decline to accept virtual currency presumed abandoned
if, in the administrator's discretion:
(1) The virtual currency is not freely transferable;
(2) The virtual currency is of nominal value; or
(3) The value of the virtual currency is less than the estimated expenses of
maintenance, notice, or sale.
The administrator may prescribe, by rule promulgated pursuant to chapter 1-26,
classes or types of virtual currency exempt from reporting or liquidation.
Except as otherwise provided in this section, a holder of unclaimed virtual currency
shall liquidate the virtual currency within thirty days prior to the filing of the report
required by § 43-41B-18 and remit the proceeds to the administrator.
If the holder is unable to liquidate the virtual currency, or reasonably believes the
virtual currency cannot be liquidated, the holder must promptly provide written notice to
the administrator explaining why the virtual currency cannot be liquidated as required by
this section, and the administrator must direct the holder concerning an alternate
disposition of the virtual currency. 25.696.11 4 1196
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An owner does not have recourse against the administrator or the holder to recover
any gain in value that occurs after the liquidation of the virtual currency pursuant to this
section.
For purposes of this section, "indication of interest" means any action or
communication by an apparent owner that demonstrates the apparent owner's knowledge
of the existence of property held, issued, or owing by the holder or the apparent owner's
intent to retain ownership of property held, issued, or owing by the holder.
Section 3. That § 43-41B-18 be AMENDED:
43-41B-18. A person holding property, tangible or intangible, which is presumed
abandoned and subject to custody as unclaimed property under this chapter, shall report
to the administrator concerning the property as provided in this section. The expiration of
any period of time specified by statute or court order, during which an action or proceeding
may be commenced or enforced to obtain payment of a claim for money or recovery of
property, does not prevent the money or property from being presumed abandoned or
affect any duty to file a report required by this chapter or to pay or deliver abandoned
property to the state treasurer.
The holder of unclaimed property shall, before filing the annual report required by
this section, communicate with the owner and take necessary steps to prevent
abandonment from being presumed by exercising due diligence to ascertain the
whereabouts of the owner. For property having a value of fifty dollars or more, the holder
shall mail notice to each person entitled to the property presumed abandoned under this
chapter, except that mailing of notice is not required if the holder's records indicate the
owner's address is inaccurate.
The mailed notice must contain a statement that, according to the records of the
holder, property is being held, to which the addressee appears to be entitled, and which
will escheat to the state. The notice must also contain information regarding any changes
of the name of the holder. In the case of securities deemed abandoned pursuant to
subdivision 43-41B-2(a) and § 43-41B-10, or safe deposit box contents deemed
abandoned pursuant to § 43-41B-17, the notice must state that the property may be sold
by the administrator. In the case of virtual currency deemed abandoned pursuant to
section 2 of this Act, the notice must state that the property may be sold by the holder
prior to remittance to the administrator.
The report must be verified and must include: 25.696.11 5 1196
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(1) Except with respect to travelers checks and money orders, the name, if known,
and last known address, if any, of each person appearing from the records of the
holder to be the owner of property of the value of ten dollars or more presumed
abandoned under this chapter;
(2) In the case of unclaimed funds of ten dollars or more held or owing under any life
or endowment insurance policy or annuity contract, the full name and last known
address of the insured or annuitant and of the beneficiary according to the records
of the insurance company holding or owing the funds;
(3) In the case of the contents of a safe deposit box or other safekeeping repository
or of other tangible property, a description of the property and the place where it
is held and may be inspected by the administrator and any amounts owing to the
holder;
(4) The nature and identifying number, if any, or description of the property and the
amount appearing from the records to be due, provided that items of value under
ten dollars each may be reported in the aggregate;
(5) The date the property became payable, demandable, or returnable, and the date
of the last transaction with the apparent owner with respect to the property; and
(6) Other information the administrator prescribes by rule as necessary for the
administration of this chapter.
If the person holding property presumed abandoned and subject to custody as
unclaimed property is a successor to other persons who previously held the property for
the apparent owner, or the holder's name has changed while holding the property, the
holder must file with the report all known names and addresses of each previous holder
of the property.
The report must be filed before November first of each year as of June thirtieth,
next preceding, but the report of any life insurance company must be filed before May
first of each year as of December thirty-first next preceding. On written request by any
person required to file a report, the administrator may postpone the reporting date or
waive any interest fees or penalties.
25.696.11 6 1196
HB1196 ENROLLED
An Act to update Uniform Unclaimed Property Act to include provisions related to virtual
currency and notice requirements.
I certify that the attached Act originated in
the:
House as Bill No. 1196
Chief Clerk
Speaker of the House
Attest:
Chief Clerk
President of the Senate
Attest:
Secretary of the Senate
House Bill No. 1196
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2025 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2025
Governor
STATE OF SOUTH DAKOTA ,
ss.
Office of the Secretary of State
Filed ____________, 2025
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State