HBA-MPM H.B. 1840 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1840
By: Junell
Business & Industry
77/17/2001
Enrolled



BACKGROUND AND PURPOSE 

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.
Prior to the 77th Legislature, some entities did not disclose the existence
of abandoned property because state law required them to pay interest and
penalties on the property.  Legislation waiving interest and penalties
could 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. 

EFFECTIVE DATE

May 16, 2001.