While one state tightened up its law for pawnbrokers and other secondhand dealers to enhance their record keeping for gift cards and similar products, another state refined its law related to reporting virtual currency.
Colorado SB14; Signed 4/8/2019, effective 8/2/19
Requires secondhand dealers who purchase store credits, gift cards or merchandise cards to keep a record of those purchases in an electronic register and accessible to law enforcement for reasonable time.
Additionally, any store credit, gift card or merchandise card of any value not issued by the person to the definition of a “valuable article”, which triggers certain record-keeping requirements.
Failure to comply and record the purchases in an electronic database is a class 3 misdemeanor for a first offense and a class 6 felony for a second or subsequent offense. Ouch!
Kentucky HB204; Signed 3/26/2019, effective 3/26/19
Requires holders of reportable virtual currency to liquidate and remit the proceeds to the administrator within ninety (90) days prior to filing the report.
Does not provide recourse for the owner against the holder or the administrator to recover any gain in value that occurs after the liquidation of the virtual currency.
KY HB204 also amended KRS 393A.020 to state that KRS Chapter 393A shall not apply to mineral proceeds.
Stay tuned for our next installment of law changes that affect your unclaimed property reporting. For more information on this and more, contact the knowledgeable staff at UPCR!