HBA-DMH C.S.H.B. 3199 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3199
By: Brimer
Business & Industry
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Unclaimed property is property belonging to a missing owner.  As a matter
of law, such property is presumed abandoned and subject to report to the
comptroller of public accounts if the location of the owner is unknown to
the holder of the property and, according to the knowledge and records of
the holder, a claim to the property had not been asserted or an act of
ownership of the property has not been exercised after a certain period of
time has elapsed.  Examples of unclaimed property include traveler's
checks, money orders, and savings account funds.  For a savings account or
a travelers check the comptroller of public accounts attempts to locate the
owner using social security and past address information; however, that
type of information is usually not available for an abandoned money order.
Currently, abandonment of a money order may be presumed after five years of
inactivity.  C.S.H.B. 3199 increases this time period to seven years and
places a limit on a charge that a holder of an abandoned money order may
impose. 

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

C.S.H.B. 3199 amends the Property Code to provide that a money order is
presumed to be abandoned on the seventh, rather than the fifth, anniversary
of certain events.  The bill provides that the value of a money order is
determined as of the date the property is presumed abandoned.  The bill
provides an exception for the holder of an abandoned money order to the
prohibition against deducting a charge for the maintenance of a money
order.  If a holder imposes a service, maintenance, or other charge on a
money order before the date of presumed abandonment, the bill prohibits
that charge from exceeding an amount equal to 50 cents a month for each
month that the money order remains uncashed before the month in which the
money order is presumed abandoned. 

EFFECTIVE DATE

The provisions modifying the date of presumptive abandonment for a money
order take effect June 1, 2004, and the remaining provisions take effect
June 1, 2002. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3199 differs from the original by including provisions limiting
the charge a holder of an abandoned money order may impose on the money
order.  The substitute also changes the effective date from September 1,
2001, to June 1, 2004, for provisions modifying the date of presumptive
abandonment for a money order and from September 1, 2001, to June 1, 2002,
for the remaining provisions.