Virginia Disposition of Unclaimed Property Act; administrator to exercise due diligence to locate owner.
Impact
The implications of SB867 are significant for both property owners and the state administration. By enforcing a mandate for due diligence, the bill could potentially increase the recovery rates of unclaimed properties, thus benefiting individuals who may not be aware that they are entitled to reclaim assets. Additionally, it emphasizes coordination with the Tax Commissioner to access relevant tax information, which may facilitate locating owners more effectively. This shift could enhance trust in the state’s handling of unclaimed property.
Summary
Senate Bill 867 introduces a crucial amendment to the Virginia Disposition of Unclaimed Property Act. The bill tasks the administrator with the responsibility of exercising due diligence to locate the owners of unclaimed funds or abandoned property. This requirement is intended to ensure that efforts are made to reunite owners with their unclaimed assets that have been handed over to the state. The amendment is proposed in response to the growing concern over how unclaimed properties are handled and aims to offer a more proactive approach in identifying and reaching out to property owners.
Conclusion
Overall, SB867 signifies a proactive legislative step towards improving the management of unclaimed properties in Virginia. As the bill progresses through the legislative process, it will be important to observe discussions around the balance between effective recovery measures and the protection of individual privacy.
Contention
While the bill is aimed at improving the recovery of unclaimed properties, it might also raise questions regarding privacy and the extent of information-sharing between state departments, specifically between the administrator and the Department of the Treasury. Critics may argue that coordinating with the Tax Commissioner could inadvertently lead to concerns about how tax data is utilized and whether it aligns with privacy rights of individuals. Thus, although the intent is to strengthen the process, there may be discussions on establishing safeguards to protect property owners’ information.