Structured as temporary rules effective until 8/1/2028, the proposed amended regulations in West Virginia make several changes that seem largely designed to conform to the recent statutory changes. However, some of the proposed amendments may have more impact upon application. Key changes include the following:
Dormancy and Trigger Changes:
Defines “stock or other equity interest in a business association” to include dividends, debt instruments and government securities. This seems to resolve the discrepancy created by the shortened catch-all dormancy period effective June 10, 2022 as a result of the recent statutory changes. The discrepancy is alleviated by allowing for the analysis of dividends under the equity securities provision, but it sets up another contradiction with respect to debt instruments by including them in the definition of stock or other equity interest in a business association, but also having a specific provision addressing debt of a business association (other than a bearer or original issue discount bond).
Filing Technicalities:
Requires reporting of a beneficiary’s SSN and relationship to the owner for life insurance property and property subject to transfer on death (IRAs).
Removes the requirement that 80% of estimated amount due be remitted on extension.
Securities are to be delivered to the state’s agent in street name.
Non-freely transferable shares, which includes those with little to no value, are not to be delivered to the state.
Audit Provisions:
Removes statement implying by exclusion that only the records of a non-reporting entity are subject to examination.
Removes requirement of notice in writing 10 days prior to an exam, and the reference to use of estimation.
Adds a right to use contracted 3rd party auditors and that they such auditors will conduct audits off-site unless deemed impracticable by the auditor.
Statute of Limitations:
10 year limitation period applicable to property identified in a report only applies to the specific property reported – not to the type of property reported.
An examination is an “action” for purposes of the statute of limitations, and it will toll the limitations period once commenced.
Claims:
The administrator may remove requirement to file claim for property valued <$5,000
