Iowa 5342XD: Treasurer of State, 529 Accounts and Unclaimed Property (5342XD) - Treasurer of State

Bill Text

SENATE/HOUSE FILE _____
BY (PROPOSED TREASURER OF
STATE BILL)
A BILL FOR
An Act relating to the treasurer of state’s duties, including1
Iowa educational savings plan trust and Iowa ABLE savings2
plan trust requirements and disposition of unclaimed3
property, and including effective date and retroactive4
applicability provisions.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:6
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DIVISION I1
IOWA EDUCATIONAL SAVINGS PLAN TRUST2
Section 1. Section 12D.3, subsection 1, Code 2024, is3
amended to read as follows:4
1. Each participation agreement may require a participant5
to agree to invest a specific amount of money in the trust6
for a specific period of time for the benefit of a specific7
beneficiary. A participant shall not be required to make an8
annual contribution on behalf of a beneficiary. The maximum9
contribution that may be deducted for Iowa income tax purposes10
shall not exceed two five thousand five hundred dollars per11
beneficiary per year adjusted annually to reflect increases12
in the consumer higher education price index, rounded up to13
the nearest fifty or hundred dollars. The treasurer of state14
shall set an account balance limit to maintain compliance with15
section 529 of the Internal Revenue Code. A contribution shall16
not be permitted to the extent it causes the aggregate balance17
of all accounts established for the same beneficiary under the18
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 following21
new subparagraph division:22
NEW SUBPARAGRAPH DIVISION. (g) A direct trustee-to-trustee23
transfer to a Roth individual retirement account in accordance24
with the rules under section 529(c)(3)(E) of the Internal25
Revenue Code.26
Sec. 3. RETROACTIVE APPLICABILITY. This division of this27
Act applies retroactively to January 1, 2024, for tax years28
beginning on or after that date.29
DIVISION II30
DISPOSITION OF UNCLAIMED PROPERTY31
Sec. 4. Section 556.1, Code 2024, is amended by adding the32
following new subsection:33
NEW SUBSECTION. 15. “Virtual currency” means a digital34
representation of value, other than a representation of the35
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United States dollar or a foreign currency, that functions1
as a unit of account, a store of value, and a medium of2
exchange that uses cryptography to secure transactions that3
are digitally recorded on a distributed ledger, such as a4
blockchain.5
Sec. 5. NEW SECTION. 556.2D Unclaimed virtual currency.6
1. The treasurer of state shall, in accordance with chapter7
17A, adopt rules as are necessary for the method of delivery,8
transfer, maintenance, and sale of virtual currency that is9
presumed abandoned.10
2. The treasurer of state may decline to accept virtual11
currency deemed abandoned if the treasurer of state determines12
that the virtual currency is not freely transferable, is of13
nominal value, or the value is less than the estimated expenses14
of maintenance, notice, or sale of the property.15
3. The treasurer of state may direct a holder of virtual16
currency to sell virtual currency in conjunction with the17
holders’ reporting. A holder that sells virtual currency at18
the direction of the treasurer of state shall be entitled to19
the protections provided under section 556.13, provided that20
the holder has complied with the notice provisions of section21
556.2 and has otherwise acted in good faith.22
Sec. 6. Section 556.11, subsection 5, Code 2024, is amended23
to read as follows:24
5. a. If the holder of property presumed abandoned25
under this chapter knows the whereabouts of the owner and26
if the owner’s claim has not been barred by the statute of27
limitations, the holder shall, before filing the annual report,28
communicate with the owner and take necessary steps to prevent29
abandonment from being presumed. The holder shall exercise due30
diligence to ascertain the whereabouts of the owner.31
b. If the property presumed abandoned is securities, a32
brokerage account, or virtual currency, the holder of property33
shall provide notice to the owner that the owner’s holdings may34
be liquidated either prior to or subsequent to reporting to35
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the state, after which the owner will be entitled to claim the1
proceeds of sale only.2
c. A holder is not required to make a due diligence mailing3
to owners whose property has an aggregate value of less than4
fifty dollars.5
d. The treasurer of state may charge a holder that fails to6
timely exercise due diligence, as required in this subsection,7
five dollars for each name and address account reported if8
thirty-five percent or more of the accounts are claimed within9
the twenty-four months immediately following the filing of the10
holder report.11
Sec. 7. Section 556.12, subsection 1, Code 2024, is amended12
to r