Bill Text: IA SF2236 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the treasurer of state's duties, including Iowa educational savings plan trust and Iowa ABLE savings plan trust requirements and disposition of unclaimed property, and including effective date and retroactive applicability provisions.(Formerly SSB 3116.)
Spectrum: Committee Bill
Status: (Introduced) 2024-02-20 - Subcommittee recommends passage. []. [SF2236 Detail]
Download: Iowa-2023-SF2236-Introduced.html
Senate
File
2236
-
Introduced
SENATE
FILE
2236
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
3116)
A
BILL
FOR
An
Act
relating
to
the
treasurer
of
state’s
duties,
including
1
Iowa
educational
savings
plan
trust
and
Iowa
ABLE
savings
2
plan
trust
requirements
and
disposition
of
unclaimed
3
property,
and
including
effective
date
and
retroactive
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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2236
DIVISION
I
1
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST
2
Section
1.
Section
12D.3,
subsection
1,
Code
2024,
is
3
amended
to
read
as
follows:
4
1.
Each
participation
agreement
may
require
a
participant
5
to
agree
to
invest
a
specific
amount
of
money
in
the
trust
6
for
a
specific
period
of
time
for
the
benefit
of
a
specific
7
beneficiary.
A
participant
shall
not
be
required
to
make
an
8
annual
contribution
on
behalf
of
a
beneficiary.
The
maximum
9
contribution
that
may
be
deducted
for
Iowa
income
tax
purposes
10
shall
not
exceed
two
five
thousand
five
hundred
dollars
per
11
beneficiary
per
year
adjusted
annually
to
reflect
increases
12
in
the
consumer
higher
education
price
index
,
rounded
up
to
13
the
nearest
fifty
or
hundred
dollars
.
The
treasurer
of
state
14
shall
set
an
account
balance
limit
to
maintain
compliance
with
15
section
529
of
the
Internal
Revenue
Code.
A
contribution
shall
16
not
be
permitted
to
the
extent
it
causes
the
aggregate
balance
17
of
all
accounts
established
for
the
same
beneficiary
under
the
18
trust
to
exceed
the
applicable
account
balance
limit.
19
Sec.
2.
Section
422.7,
subsection
22,
paragraph
c,
20
subparagraph
(1),
Code
2024,
is
amended
by
adding
the
following
21
new
subparagraph
division:
22
NEW
SUBPARAGRAPH
DIVISION
.
(g)
A
direct
trustee-to-trustee
23
transfer
to
a
Roth
individual
retirement
account
in
accordance
24
with
the
rules
under
section
529(c)(3)(E)
of
the
Internal
25
Revenue
Code.
26
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
division
of
this
27
Act
applies
retroactively
to
January
1,
2024,
for
tax
years
28
beginning
on
or
after
that
date.
29
DIVISION
II
30
DISPOSITION
OF
UNCLAIMED
PROPERTY
31
Sec.
4.
Section
556.1,
Code
2024,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
15.
“Virtual
currency”
means
a
digital
34
representation
of
value,
other
than
a
representation
of
the
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United
States
dollar
or
a
foreign
currency,
that
functions
1
as
a
unit
of
account,
a
store
of
value,
and
a
medium
of
2
exchange
that
uses
cryptography
to
secure
transactions
that
3
are
digitally
recorded
on
a
distributed
ledger,
such
as
a
4
blockchain.
5
Sec.
5.
NEW
SECTION
.
556.2D
Unclaimed
virtual
currency.
6
1.
The
treasurer
of
state
shall,
in
accordance
with
chapter
7
17A,
adopt
rules
as
are
necessary
for
the
method
of
delivery,
8
transfer,
maintenance,
and
sale
of
virtual
currency
that
is
9
presumed
abandoned.
10
2.
The
treasurer
of
state
may
decline
to
accept
virtual
11
currency
deemed
abandoned
if
the
treasurer
of
state
determines
12
that
the
virtual
currency
is
not
freely
transferable,
is
of
13
nominal
value,
or
the
value
is
less
than
the
estimated
expenses
14
of
maintenance,
notice,
or
sale
of
the
property.
15
3.
The
treasurer
of
state
may
direct
a
holder
of
virtual
16
currency
to
sell
virtual
currency
in
conjunction
with
the
17
holders’
reporting.
A
holder
that
sells
virtual
currency
at
18
the
direction
of
the
treasurer
of
state
shall
be
entitled
to
19
the
protections
provided
under
section
556.13,
provided
that
20
the
holder
has
complied
with
the
notice
provisions
of
section
21
556.2
and
has
otherwise
acted
in
good
faith.
22
Sec.
6.
Section
556.11,
subsection
5,
Code
2024,
is
amended
23
to
read
as
follows:
24
5.
a.
If
the
holder
of
property
presumed
abandoned
25
under
this
chapter
knows
the
whereabouts
of
the
owner
and
26
if
the
owner’s
claim
has
not
been
barred
by
the
statute
of
27
limitations,
the
holder
shall,
before
filing
the
annual
report,
28
communicate
with
the
owner
and
take
necessary
steps
to
prevent
29
abandonment
from
being
presumed.
The
holder
shall
exercise
due
30
diligence
to
ascertain
the
whereabouts
of
the
owner.
31
b.
If
the
property
presumed
abandoned
is
securities,
a
32
brokerage
account,
or
virtual
currency,
the
holder
of
property
33
shall
provide
notice
to
the
owner
that
the
owner’s
holdings
may
34
be
liquidated
either
prior
to
or
subsequent
to
reporting
to
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the
state,
after
which
the
owner
will
be
entitled
to
claim
the
1
proceeds
of
sale
only.
2
c.
A
holder
is
not
required
to
make
a
due
diligence
mailing
3
to
owners
whose
property
has
an
aggregate
value
of
less
than
4
fifty
dollars.
5
d.
The
treasurer
of
state
may
charge
a
holder
that
fails
to
6
timely
exercise
due
diligence,
as
required
in
this
subsection
,
7
five
dollars
for
each
name
and
address
account
reported
if
8
thirty-five
percent
or
more
of
the
accounts
are
claimed
within
9
the
twenty-four
months
immediately
following
the
filing
of
the
10
holder
report.
11
Sec.
7.
Section
556.12,
subsection
1,
Code
2024,
is
amended
12
to
read
as
follows:
13
1.
If
a
report
has
been
filed
with
the
treasurer
of
state,
14
or
property
has
been
paid
or
delivered
to
the
treasurer
of
15
state,
for
the
fiscal
year
ending
on
June
30
or,
in
the
case
of
16
unclaimed
demutualization
proceeds,
for
the
preceding
calendar
17
year
as
required
by
section
556.11
,
the
treasurer
of
state
18
shall
provide
may
do
any
of
the
following:
19
a.
Provide
for
the
publication
annually
of
at
least
20
one
notice
not
later
than
the
following
November
30.
Each
21
notice
shall
may
be
published
at
least
once
each
week
for
two
22
successive
weeks
in
an
English
language
newspaper
of
general
23
circulation
in
the
county
in
this
state
in
which
is
located
the
24
last
known
address
of
any
person
to
be
named
in
the
notice.
25
If
an
address
is
not
listed
or
if
the
address
is
outside
this
26
state,
the
notice
shall
may
be
published
in
the
county
in
which
27
the
holder
of
the
abandoned
property
has
its
principal
place
28
of
business
within
this
state.
29
b.
Publish
information
to
make
the
public
aware
of
30
the
existence
of
unclaimed
property
and
the
treasurer
of
31
state’s
unclaimed
property
program
in
a
newspaper
in
general
32
circulation
in
the
state.
33
Sec.
8.
Section
556.19,
Code
2024,
is
amended
to
read
as
34
follows:
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556.19
Claim
Procedure
for
abandoned
property
paid
or
1
delivered.
2
1.
Any
person
claiming
an
interest
in
any
property
delivered
3
to
the
state
under
this
chapter
may
file
a
claim
thereto
or
to
4
the
proceeds
from
the
sale
thereof
on
the
form
prescribed
by
5
the
state
treasurer.
6
2.
Notwithstanding
subsection
1,
the
treasurer
of
state
7
may
waive
the
requirement
of
a
claim
form
and
pay
or
deliver
8
property
directly
to
a
person
if
the
person
receiving
the
9
property
or
payment
is
shown
to
be
the
apparent
owner
included
10
on
a
report
filed
under
section
556.11
and
the
treasurer
of
11
state
reasonably
believes
the
person
is
entitled
to
receive
12
the
property
or
payment.
The
treasurer
of
state
may
use
state
13
tax
information
to
assist
in
identifying
the
owner
of
property
14
that
has
been
abandoned
as
provided
under
this
chapter
or
in
15
verifying
a
claim
filed
under
this
chapter.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
the
treasurer
of
state’s
duties,
20
including
Iowa
educational
savings
plan
trust
requirements
and
21
disposition
of
unclaimed
property.
22
DIVISION
I
——
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST.
The
23
bill
increases
the
maximum
contribution
to
a
beneficiary’s
24
529
account
that
may
be
deducted
for
income
tax
purposes
to
25
$5,500
per
year.
The
maximum
deduction
for
tax
year
2023
is
26
$3,785.
Additionally,
under
current
law
the
maximum
deduction
27
is
adjusted
annually
to
reflect
increases
in
the
consumer
price
28
index.
Under
the
bill,
such
adjustments
will
instead
reflect
29
increases
in
the
higher
education
price
index
rounded
up
to
30
the
nearest
$50
or
$100.
By
operation
of
law,
the
bill
also
31
increases
the
maximum
deduction
amount
available
in
an
Iowa
32
ABLE
savings
plan
trust
to
the
same
amount
for
the
current
and
33
future
years.
34
The
bill
also
provides
that
a
transfer
made
in
a
direct
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trustee-to-trustee
transfer
from
a
529
account
to
a
Roth
1
individual
retirement
account
in
accordance
with
the
rules
2
under
the
federal
Internal
Revenue
Code
section
529(c)(3)(E)
3
are
exempt
from
state
individual
income
taxation.
4
The
division
of
the
bill
applies
retroactively
to
January
1,
5
2024,
for
the
tax
year
beginning
on
or
after
that
date.
6
DIVISION
II
——
DISPOSITION
OF
UNCLAIMED
PROPERTY.
The
bill
7
creates
regulations
that
are
necessary
for
the
methods
of
8
delivery,
transfer,
maintenance,
and
sale
of
virtual
currency
9
that
is
presumed
abandoned.
The
bill
allows
the
treasurer
10
of
state
(treasurer)
to
decline
to
accept
abandoned
virtual
11
currency
if
the
treasurer
of
state
determines
that
the
virtual
12
currency
is
(1)
not
freely
transferable,
(2)
of
nominal
13
value,
or
(3)
the
value
is
less
than
the
estimated
expenses
of
14
maintenance,
notice,
or
sale
of
the
property.
The
bill
allows
15
the
treasurer
to
sell
abandoned
virtual
currency.
16
The
bill
provides
that
the
holder
of
property
that
are
17
securities,
brokerage
accounts,
or
virtual
currency
shall
18
provide
notice
to
the
owner
that
the
holdings
may
be
liquidated
19
either
prior
to
or
subsequent
to
reporting
to
the
state
and
20
will
only
be
entitled
to
claim
the
proceeds
of
sale.
21
The
bill
removes
the
requirement
for
publication
of
public
22
notice
by
the
treasurer
for
abandoned
property,
instead
making
23
it
optional
and
at
the
discretion
of
the
treasurer.
24
The
bill
provides
that
the
treasurer
may
pay
or
deliver
25
property
directly
to
a
person
if
the
person
receiving
the
26
property
or
payment
is
shown
to
be
the
apparent
owner
included
27
on
a
report
for
abandoned
property
and
the
treasurer
reasonably
28
believes
the
person
is
entitled
to
receive
the
property
or
29
payment.
The
treasurer
may
use
state
tax
information
to
assist
30
in
identifying
the
owner
of
property.
31
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