There is a significant amount of disparity between the states in terms of their unclaimed property reporting requirements. However, an increasing number of states are recognizing that the benefits of identifying best practices, establishing national standards, and achieving, to whatever degree possible, uniformity. Lynden Lyman, the managing director of the ACS Unclaimed Property Clearinghouse in Boston, discusses this changing area of law.
Mr. Lyman writes: The National Association of Unclaimed Property Administrators (NAUPA), a non-profit organization affiliated with the National Association of State Treasurers that represents
the interests of state unclaimed property administrators, has been diligently working for more than a year to specifically address the issue of improving and simplifying unclaimed property reporting through greater uniformity. NAUPA, whose stated goals include promoting uniformity among the states “whenever possible,” has appointed a Uniformity and Standardization Steering Committee, which has in turn created various subcommittees to examine specific areas.
“Our approach has been to start by working on the simpler issues, and try to score a few victories before we take on the tougher issues,” comments Stephen Larson, a 23- year “veteran” of the Iowa State Treasurer’s Office and the current NAUPA president.
“So far, I am pleased to report that we have been successful in updating uniform negative reporting procedures, and the model holder reimbursement form. I am very hopeful that during 2008, the states can make considerable progress in resolving the relationship code problem. The huge number of codes and the differences among states creates headaches for holders, and opens the possibility that the state could pay the wrong claimant,” Larson added.