Texas House passes bill to update state’s unclaimed property program

The comptroller of public accounts administers Texas’ unclaimed property program, which reunites owners with abandoned property. HB 3598 by Rep. Trey Martinez Fischer (D-San Antonio) addresses reporting and enforcement requirements of the unclaimed property program to provide clarity to property holders and owners and ensure that the comptroller can fulfill its statutory responsibility to return unclaimed property to the rightful owner.

The existing program does not adequately take into consideration certain business entities, such as affiliated groups or administrative realities (e.g., the ability to advertise the program and sell unclaimed property). In addition, there are ambiguities in statute regarding the authority of the comptroller and office of the attorney general to compel holders of unclaimed property to submit to audits and with the comptroller's ability to successfully complete authorized examinations of books and records.

The bill expands the scope of unclaimed property reporting to include affiliate reporting, mandatory yearly reporting for all filers after initial filing, and expanded enforcement powers to the state comptroller and attorney general to investigate any persons with information relevant to improper reporting.

HB 3598 passed the House on a unanimous vote and moves to the Senate.

Contact Jeff Huffman, Texas Credit Union Association, at 469-385-6488 or jhuffman@txcua.coop for more information.