The 2019 state legislative sessions are clearly off and running at full speed, as evidenced by the number of bills being introduced impacting stocks and securities! SSA’s Legal and Regulatory committee is monitoring these bills and is working diligently to provide commentary as applicable. Working in collaboration with the Stock Transfer Agents Association (STA), the Unclaimed Property Professionals Organization (UPPO) and the unclaimed property Holders Coalition, the following letters have been signed by SSA addressing members’ concerns.
Arkansas HB1427: This bill includes a provision which allows the Administrator to liquidate unclaimed securities immediately upon receipt depriving unsuspecting shareholders of their property rights without just compensation. The provision prevents a shareholder from being able to take the steps necessary to recover the full value of his or her shares. This is because the shareholder’s claim is limited to the amount received from the sale of the shares, less expenses, even though the shares should not have been sold in the first instance.
Washington HB1179: The letter requests that HB 1179 be amended to address concerns that would “cause significant losses for shareholders”. It further points out sections that are clearly at odds with the Revised Uniform Unclaimed Property Act (RUUPA) as adopted by the ULC in July 2016.
Illinois Regulations: As a member of the Holders Coalition, SSA recently signed on to a joint Holders Coalition letter to Illinois. The Coalition had the opportunity to comment on the proposed rules seeking to implement the Illinois Revised Uniform Unclaimed Property Act (765 ILCS 1026) as adopted by the General Assembly through Public Acts 100-22 and 100-566.