Texas passes bill to update unclaimed property program

HB 3598 by Rep. Trey Martinez Fischer (D-San Antonio) and Sen. Judith Zaffirini (D-Laredo) was passed by the House on May 3 and the Senate on May 22 and now goes to the governor’s desk.

The bill expands the scope of unclaimed property reporting and expands enforcement powers to the state comptroller and attorney general with 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 the holders of property must retain ownership records of property turned over to the state changes to the later of 10 years past the time that property is reportable or when the report required by law is filed.
• Adds a requirement that related entities sharing the same majority owner, 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 a 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.