The bill amends the Uniform Unclaimed Property Act in South Dakota to incorporate provisions specifically addressing virtual currency and the associated notice requirements for holders of unclaimed property. It defines "virtual currency" as a digital representation of value that is not recognized as legal tender by the United States and establishes that such currency is deemed abandoned three years after the last indication of interest from the owner. The bill allows the state treasurer, referred to as the "administrator," to decline acceptance of virtual currency that is not freely transferable, has nominal value, or whose liquidation costs exceed its value. Additionally, it mandates that holders of unclaimed virtual currency must liquidate it within thirty days prior to filing their annual report and remit the proceeds to the administrator.

Furthermore, the bill amends existing reporting requirements for holders of unclaimed property. It emphasizes the necessity for holders to communicate with property owners and take steps to prevent abandonment from being presumed, particularly for properties valued at fifty dollars or more. Holders are required to send notices to owners, informing them of the property being held and the potential for it to escheat to the state. The report submitted to the administrator must include detailed information about the property, including the owner's last known address and the nature of the property, and must be filed annually by November 1st. The bill aims to enhance the management of unclaimed property, particularly in the context of emerging digital assets.

Statutes affected:
Introduced, 01/30/2025: 43-41B-1, 43-41B-18
Enrolled, 03/04/2025: 43-41B-1, 43-41B-18