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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsApril 2017


Regulatory Flexibility Act Form

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In compliance with the State’s Administrative Procedures Act (Title 29, Chapter 101 of the Delaware Code) and under the authority of 12 Del.C. §1173(a)(6), the Delaware Department of State proposes to introduce regulations related to the Department of State’s Voluntary Disclosure Agreement Program in the Delaware Abandoned or Unclaimed Property Law.
In accordance with 29 Del.C. §10116, persons wishing to submit written comments, suggestions, briefs, and compilations of data or other written materials concerning the proposed regulations should direct them to the following address:
Notice may also be directed via electronic mail to SOS.VDA@state.de.us. Any written submission in response to this notice and relevant to the proposed regulations must be received by the Department of State no later than 4:30 p.m. EST, Wednesday, May 3, 2017.
Delaware Code, Title 12 §1173(a)(6)
On February 2, 2017, the Governor of Delaware signed into law Senate Bill 13 of the 149th General Assembly, which revised and updated the Delaware Abandoned and Unclaimed Property Law. The Department of Finance Unclaimed Property Audit Program and the Department of State Voluntary Disclosure Agreement Program are administered separately, and it is not legally permissible for any one Holder, including the Holder’s subsidiaries and related entities, to be in both programs. Section 1176(b) directed the Secretary of Finance, in consultation with the Secretary of State, to promulgate regulations to create consistency in any examination or voluntary disclosure. The Department of Finance has introduced regulations containing an Examination Manual, which includes proposed regulations regarding permissible base periods in an examination, items to be excluded from the estimation calculation in an examination, aging criteria for outstanding and voided checks in an examination, and the definition of what constitutes complete and researchable records in an examination in accordance with Section 1176(b). In order to establish expectations for Holders that enroll in the Department of State Voluntary Disclosure Agreement Program, the Department of State has proposed these regulations to demonstrate how these issues will be administered in the Department of State Voluntary Disclosure Agreement program.
1.1.1 On February 2, 2017, the Governor of Delaware signed into law Senate Bill 13 of the 149th General Assembly, which revised and updated the Delaware Abandoned or Unclaimed Property Law. Section 1176(b) states as follows:
1.3.1 12 Del.C. §1173(a)(6) Rule-making.
2.0 Delaware Department of State Abandoned or Unclaimed Property Voluntary Disclosure Agreement Program Estimation Regulations
2.1.1 The effective date of these Regulations shall be the date the Regulations are adopted, and the standards contained therein shall apply to all Department of State voluntary disclosures pursuant to 12 Del.C. §1173 commenced after that date. To the extent practical, the Regulations shall apply to any ongoing Department of State voluntary disclosure pursuant to 12 Del.C. §1173 that commenced prior to the effective date of these Regulations, though the failure of the Department of State to have conformed to these regulations not-yet-in-existence would not invalidate a previously settled voluntary disclosure agreement.
2.2 Scope of Abandoned or Unclaimed Property Voluntary Disclosure Agreement (“VDA”)
2.3.5.1 If for certain periods the amount of reportable property cannot be ascertained from the books and records of the Holder, projection techniques may be used to determine the reportable amounts for such periods. Such determination shall be made by first examining records during periods in which records exist to establish a “base period” of data from which statistical inferences can be made for periods in which records are incomplete or do not exist. To the extent permitted by law, names and addresses identified in the base period shall not be used to determine which state has the priority claim to the abandoned property estimated to be due over periods where records of owners’ addresses do not exist.
2.3.5.2 All sampling, projection and estimation techniques used by the Holder to determine unclaimed property due to Delaware shall be presented to the Department of State. The Department of State and the Holder must agree to the sampling, projection and estimation techniques in order to complete a Voluntary Disclosure Agreement. It is the intent of the State that any estimation methodologies used shall result in a reasonable representation of the unclaimed property potentially due for the estimated periods.
Last Updated: December 31 1969 19:00:00.
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