February 10, 2015
Charles A. Trost, Esq.
Waller Lansden Dortch & Davis, LLP
Nashville City Center
511 Union St., Suite 2700
Nashville, TN 37219-1760
Dear Mr. Trost,
I am writing to you and the Uniform Law Commission today on behalf of the National Association of Credit Management and its more than 15,000 members in the trade credit industry. I understand the Commission is redrafting the 1995 Uniform Unclaimed Property Act (UUPA) and that a business-to-business (B2B) exemption for business associations involved in the ordinary course of business is being reviewed.
Our association urges the Commission to offer guidance and clarification in the UUPA that states should indeed adopt a B2B exemption as part of the updated UUPA. This is deeply important because the 1995 Act does not specifically exempt such transactions and fewer than one-third of all U.S. states have such an exemption in place. It is problematic because so many businesses face a host on onerous and inconsistent unclaimed property regulations in the present landscape.
We strongly support industry groups such as the America Bar Association, NACM North Central, the Unclaimed Property Professional Organization and the Coalition of State Taxation in the following language:
"Notwithstanding any other provision of the [Act], any property due or owing from a business association to another business association including, but not limited to, checks, drafts or similar instruments, credit memoranda, overpayments, credit balances, deposits, unidentified remittances, nonrefunded overcharges, discounts, refunds and rebates, shall not constitute unclaimed property under this [Act]. This section also applies to all amounts due or owing from a business association to another business association that, on the effective date of this section, are in possession, custody or control of a business association."
NACM thanks the Commission in earnest for any consideration given to this critical area while reviewing potential legislative changes.
Robin Schauseil, CAE
National Association of Credit Management
8840 Columbia 100 Parkway
Columbia, MD 21045-2158