DALLAS, July 14, 2014 /PRNewswire/ -- Missouri HB 1075 was approved by the Governor on July 9, 2014. The items of most interest to unclaimed property holders include a business-to-business deferral based on an ongoing business relationship allowing for the exclusion from reporting, which states: "any outstanding check, draft, credit balance, customer's overpayment, or unidentified remittance issued to a business entity or association as part of a commercial transaction in the ordinary course of a holder's business shall not be presumed abandoned." Furthermore, the legislation defines a business credit as "any credit offered by one business entity to another business entity to be applied in exchange for goods or services but does not have a redeemable cash value" and provides these are not subject to the unclaimed property law. The dormancy period for payroll checks will be reduced from five to three years.
Additionally, enforcement of the unclaimed property act will not occur beyond three years after a report is filed or beyond six years if a fraudulent report is filed whereas if no report has been filed, the state treasurer has the authority to take enforcement actions at any time.
In accordance with Missouri rules, the unclaimed property legislative items become effective 90 days after adjournment of the Legislature, on or about August 28, 2014. The payroll check dormancy period reduction to three years begins on January 1, 2015.
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