HB 519: Unclaimed Property Modifications - Utah

Amended 2/17/2026 12:02:533 → Substitute #1 · 6 edits

MODERATE

This bill updates Utah's unclaimed property laws to specifically address digital assets like cryptocurrency and virtual currencies. It establishes a new definition for 'digital asset,' sets a three-year presumption of abandonment for these assets, and creates a new statute requiring holders to deliver digital assets to the state administrator within 30 days if they have the ability to transfer them. The bill also adds a new section allowing the administrator to direct holders to liquidate digital assets before the standard reporting deadline if custody is not feasible.

Scope change

The bill expands the scope of the Unclaimed Property Act to explicitly include digital assets, which were previously not clearly defined or covered under the existing statutes.

DEFINITION

Added specific definitions for 'digital asset,' 'digital asset account,' 'digital asset holder,' 'digital asset wallet,' and 'private key' to clarify what falls under the law.

TIMELINE

Established a new three-year presumption of abandonment period specifically for digital assets, separate from other property types.

REQUIREMENT

Created a new requirement for digital asset holders to deliver assets to the state administrator's designated custodian within 30 days of reporting, provided the holder has the technical ability to transfer the asset.

Added provisions allowing the administrator to direct holders to sell or liquidate digital assets immediately if the state cannot accept custody or the cost of custody exceeds the asset's value.

ENFORCEMENT

Enacted a new section (67-4a-702.5) governing the sale and liquidation of digital assets by the administrator, including rules on exchange pricing and liability for value fluctuations.

TECHNICAL

Added a new section (67-4a-201.5) detailing specific circumstances under which a digital asset is presumed abandoned, including scenarios involving undelivered physical mail.

Amended Excerpts 2/17/2026 12:02:533 → Amended 2/17/2026 12:02:533 · 5 edits

MODERATE

This bill updates Utah's Unclaimed Property Act to specifically address digital assets like cryptocurrency and virtual currencies. It establishes new definitions for digital assets and creates a process where holders must transfer these assets to a state custodian within 30 days of reporting them. The bill also sets rules for when the state can sell these assets and allows for early liquidation in specific circumstances.

Scope change

The bill expands the scope of unclaimed property to explicitly include digital assets, virtual currencies, and non-fungible tokens, which were not previously detailed in the statute.

DEFINITION

Added specific definitions for 'digital asset,' 'digital asset account,' 'digital asset holder,' 'designated custodian,' 'private key,' and 'virtual currency' to clarify what assets fall under the law.

REQUIREMENT

Requires digital asset holders to deliver assets to a state-designated custodian within 30 days of reporting them, unless the holder lacks the private key to transfer the asset.

Modified the sale requirements to ensure digital assets listed on stock exchanges are not sold for less than the prevailing market price.

TIMELINE

Establishes a three-year waiting period after the state receives a digital asset before it can be sold, with exceptions for early liquidation if the asset cannot be held.

ENFORCEMENT

Added liability protections for issuers and holders who act in good faith to transfer digital assets to the state administrator.

Enrolled → Amended Excerpts 2/17/2026 12:02:533 · 2 edits

MINOR

The bill was amended to clarify that digital assets listed on established exchanges must be sold at or above the prevailing market price on those exchanges. The amendment also standardizes the language regarding the sale of digital assets not listed on exchanges, ensuring consistent terminology across the section.

REQUIREMENT

Added specific language requiring the administrator to sell digital assets listed on established exchanges for no less than the price prevailing on the exchange at the time of sale.

Standardized the phrasing for selling digital assets not listed on an established exchange to explicitly state 'by any commercially reasonable method'.

Introduced → Enrolled · 7 edits · Mar 18, 2026

MODERATE

This bill updates Utah's unclaimed property laws to specifically address digital assets like cryptocurrency and NFTs. It creates a new section defining when digital assets are considered abandoned and establishes a process for holders to deliver these assets to the state. The bill also adds a new Senate sponsor and clarifies that digital assets held without transfer authority must be maintained by the holder until they can be transferred.

Scope change

The bill expands the scope of the Unclaimed Property Act to explicitly include digital assets, which were not previously covered in such detail.

DEFINITION

Added specific definitions for 'digital asset', 'digital asset account', 'digital asset holder', 'digital asset wallet', and 'private key' to clarify what property falls under the law.

REQUIREMENT

Created a new section requiring holders to deliver digital assets to the state administrator within 30 days if they have the ability to transfer them.

Established a new rule that holders must maintain digital assets they cannot transfer (e.g., missing private keys) until they gain the ability to transfer them.

Added a requirement for holders to send physical mail to owners of digital assets to determine the abandonment timeline if digital records are insufficient.

TIMELINE

Set a three-year presumption of abandonment for digital assets based on the owner's last indication of interest.

ENFORCEMENT

Added provisions allowing the administrator to direct holders to liquidate digital assets if custody costs exceed the asset's value or if the asset cannot be accepted for custody.

TECHNICAL

Corrected the Senate sponsor's name from 'LONG TITLE' to 'Kirk A. Cullimore' and updated the effective date section.

Unclaimed Property Modifications

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