On February 2, 2017, Delaware Governor John Carney signed Senate Bill 13 (SB 13) to amend the state's unclaimed property laws in response to the recent ruling in Temple-Inland, Inc. and to adopt various sections of the Revised Uniform Unclaimed Property Act (RUUPA) last July. Key changes contained in SB13 include the following:

— Establish a 10-year record retention requirement and statute of limitations coupled with a 10-year plus dormancy look-back period both while under examination and under Delaware's voluntary disclosure agreement (VDA) program

— Establish a due diligence mailing requirement for general ledger-type property

— Allow holders currently undergoing an audit to convert an older examination (before July 22, 2015) to a VDA

— Create two new concepts: The "verified report" and the "compliance review," which appear to inquire into a suspected deficient annual compliance report and a desk audit, respectively

— Delay resolution of Delaware's unclaimed property estimation and sampling techniques (until July 1, 2017), which the court found lacking in Temple-Inland

— Revise the definition of "last-known address" to only require the state to be identified in a holder's books and records

— Mandate the assessment of interest and provide Delaware the right to waive interest only by 50%

Provisions of SB 13 took effect upon the governor's signature, unless otherwise specified.

The attached document provides an in-depth summary of these changes.

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ATTACHMENT

Key changes contained in SB13