1.1 	A bill for an act
1.2 	relating to commerce; regulating unclaimed virtual currency funds and funds held 
1.3 	for prepayment of funeral-related expenses;amending Minnesota Statutes 2024, 
1.4 	sections 345.31, by adding a subdivision; 345.43, by adding a subdivision; 
1.5 	proposing coding for new law in Minnesota Statutes, chapter 345.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2024, section 345.31, is amended by adding a subdivision 
1.8 	to read:
1.9 		Subd. 10.Virtual currency. "Virtual currency" means a digital representation of value 
1.10 	used as a medium of exchange, unit of account, or store of value that does not have legal 
1.11 	tender status recognized by the United States. Virtual currency does not include:
1.12 	(1) software or protocols governing the transfer of the digital representation of value;
1.13 	(2) game-related digital content; or
1.14 	(3) a loyalty card or gift card.

1.15 	Sec. 2. [345.382] FUNDS HELD FOR THE PREPAYMENT OF 
1.16 	FUNERAL-RELATED EXPENSES.
1.17 	Funds on deposit or held in trust for the prepayment of a funeral or other funeral-related 
1.18 	expenses are presumed abandoned at the earliest of:
1.19 	(1) three years after the date of death of the beneficiary;
1.20 	(2) one year after the date the beneficiary has attained, or would have attained if living, 
1.21 	the age of 105, if the holder does not know whether the beneficiary is deceased; or
2.1 	(3) 30 years after the contract for prepayment was executed.

2.2 	Sec. 3. [345.383] EXEMPTION FOR CERTAIN PROPERTY HELD IN 
2.3 	TAX-DEFERRED ACCOUNTS.
2.4 	Property held in a plan described in section 529 or 529A of the Internal Revenue Code, 
2.5 	as amended, are exempt from the requirements of sections 345.31 to 345.60.

2.6 	Sec. 4. [345.384] VIRTUAL CURRENCY.
2.7 	(a) Virtual currency is presumed abandoned three years after the apparent owner's latest 
2.8 	indication of interest in the virtual currency.
2.9 	(b) For purposes of this section, an indication of an apparent owner's interest in virtual 
2.10 	currency includes:
2.11 	(1) a record communicated by the apparent owner to the holder or agent of the holder 
2.12 	concerning the property or the account in which the property is held;
2.13 	(2) an oral communication by the apparent owner to the holder or agent of the holder 
2.14 	concerning the property or the account in which the property is held, if the holder or its 
2.15 	agent contemporaneously makes and preserves a record of the fact of the apparent owner's 
2.16 	communication;
2.17 	(3) a distribution or evidence of receipt of a distribution made by electronic or similar 
2.18 	means; or
2.19 	(4) activity directed by an apparent owner in the account in which the property is held, 
2.20 	including accessing the account or information concerning the account, or a direction by 
2.21 	the apparent owner to increase, decrease, or otherwise change the amount or type of virtual 
2.22 	currency held in the account.
2.23 	(c) An action by an agent or other representative of an apparent owner, other than the 
2.24 	holder acting as the apparent owner's agent, is presumed to be an action on behalf of the 
2.25 	apparent owner.
2.26 	(d) A communication with an apparent owner by a person other than the holder or the 
2.27 	holder's representative is not an indication of interest in the property by the apparent owner 
2.28 	unless a record of the communication evidences the apparent owner's knowledge of a right 
2.29 	to the property.

3.1 	Sec. 5. Minnesota Statutes 2024, section 345.43, is amended by adding a subdivision to 
3.2 	read:
3.3 		Subd. 2b.Virtual currency. (a) If property reported to the commissioner is virtual 
3.4 	currency, the holder must liquidate the virtual currency and remit the proceeds to the 
3.5 	commissioner.
3.6 	(b) The liquidation must occur any time within 30 days before filing the report under 
3.7 	section 345.41. The owner does not have recourse against the holder or the commissioner 
3.8 	to recover any gain in value that occurs after the liquidation of the virtual currency under 
3.9 	this subdivision.
3.10 	(c) If a holder cannot liquidate virtual currency and cannot otherwise cause virtual 
3.11 	currency to be liquidated, the holder must promptly notify the commissioner in writing and 
3.12 	explain the reasons why the virtual currency cannot be liquidated. The commissioner has 
3.13 	absolute and sole discretion to direct the holder to:
3.14 	(1) transfer the virtual currency that cannot be liquidated to a custodian selected by the 
3.15 	commissioner; or
3.16 	(2) continue to hold the virtual currency until the commissioner or the holder determines 
3.17 	that the virtual currency can be liquidated pursuant to this chapter.