HBA-MPM H.B. 1840 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1840 By: Junell Business & Industry 3/4/2001 Introduced BACKGROUND AND PURPOSE Currently, the Texas comptroller of public accounts (comptroller) is responsible for administering the Texas Unclaimed Property Program, which requires financial institutions, businesses, and other entities (entities) to deliver to the comptroller property they hold that they consider abandoned. Property is considered abandoned if it has been inactive for three to five years and if the owner's whereabouts are unknown. The comptroller holds the property in trust while attempting to locate the rightful owners. Some entities do not disclose the existence of abandoned property because state law requires them to pay interest and penalties on the property. Legislation waiving interest and penalties may increase the number of entities that voluntarily disclose unreported, unclaimed property. House Bill 1840 waives interest and penalties on certain unclaimed property. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1840 amends the Property Code to authorize the comptroller of public accounts (comptroller) to waive penalty and interest imposed on a delinquent property if the holder delivering the property was required to deliver the property: _on or before November 1, 1997, if the property is personal property, property held by financial institutions, or mineral proceeds that are presumed abandoned; or _on a specified date after November 1, 1997 but before June 1, 1998, if the property is the contents of a safe deposit box. EFFECTIVE DATE September 1, 2001.