State Law Now Requires Businesses to Report Stocks and Other Securities Sooner

Treasurer Kennedy Says Companies Must Report Unclaimed Stocks After Three Years

BATON ROUGE, LA – A new state law requires companies holding stocks and other securities that have not been cashed or claimed after three years to report this unclaimed property to the state before November 1 of this year, according to State Treasurer John Kennedy. Act 573 of the 2006 Regular Legislative Session, authored by Sen. Noble Ellington, reduces the time that businesses can hold stocks and other securities belonging to Louisiana citizens from five years to three years.

“State law used to require businesses to turn stocks and dividends belonging to citizens over to the state after five years,” said Treasurer Kennedy. “There has been a trend nationwide, however, to reduce this holding period to three years. About half of all states have a three-year holding period for unclaimed securities, and Louisiana’s unclaimed property law is now uniform with those states.”

Companies must turn over stocks and securities to the state after three years if an individual has not cashed dividends, if the individual has not exchanged shares in a merger, or if shares have been undeliverable usually because an individual has changed addresses. Companies who report unclaimed stocks and securities to the state before November 1 of this year will avoid interest (currently 8 percent) that may be charged on property not timely reported and possible penalties of $200 a day (up to a maximum of $5,000 or $25,000 if found to be willful).

“If companies have questions about the new law, I encourage them to contact us for more information,” said Treasurer Kennedy. “We are here to help businesses comply with the law so that citizens can collect the money that belongs to them.”

For more information about Act 573, visit www.latreasury.com, click on “Unclaimed Property” and “Holder Information.” Companies can also email questions to unclaimed@treasury.state.la.us or call the Unclaimed Property Division’s toll-free nationwide hotline at 1-888-925-4127.

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