The escheatment of banking property in South Dakota will increase as HB 1270 was signed into law by Governor Dennis Daugaard. The dormancy period for banking properties was reduced from five to three years, making South Dakota the 22nd state since 2007 to pass legislation reducing dormancy periods.
As a result of legislation such as this, more and more banks are having to report and remit dormant accounts sooner.
The law will go into effect on July 1, 2012, but will not affect the current reporting period ending June 30th. The Holder Reports due by November 1, 2012 will still use the current dormancy periods. All reports due in 2013 will follow the updated dormancy periods.