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.