Texas Senate committee considers update to unclaimed property program

HB 3598 by Rep. Trey Martinez Fischer (D-San Antonio) expands the scope of unclaimed property reporting and expands enforcement powers to the state comptroller and attorney general.

The bill makes the following changes:

• If the property is to be considered abandoned, only the location of the owner must be unknown to the holder, not the existence of the owner.
• The period that holders of a property must retain ownership records for a property turned over to the state shall be kept for 10 years from the later of the date on which the property is reportable or the date the report required by law is filed.
• Adds a requirement that related entities sharing the same majority owner, defined as an "affiliated group," will file one unified report on behalf of the group.
• Requires ongoing property reports, even if there is no property to report.
• Amends claim procedures to prevent fraudulent claims on behalf of dissolved business.
• Sets standards for court-appointed administrators of intestate owners.
• Gives the comptroller and the attorney general the power to compel an entity to produce records for review.

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