Texas Senate Bill SB789

Texas 2021 - 87th Regular

Caption

Relating to the administration of unclaimed property.

Impact

The changes proposed in SB789 have implications for both property holders and claimants. The bill enhances the requirements for holders to report unclaimed property by requiring clear communication to owners, facilitating the claims process. It also allows the comptroller to waive certain requirements for claims directly if the property is of low value and the owner is reported, thereby streamlining recovery for individuals with claims worth less than $5,000. This could significantly ease the burden on claimants and expedite the restitution process for unclaimed property.

Summary

Senate Bill 789 aims to amend the administration of unclaimed property in Texas, introducing several changes to existing laws under the Property and Insurance Codes. The bill's primary focus is on improving the processes related to the reporting, handling, and disposition of unclaimed property held by the state. Notable amendments include the stipulation that tangible or intangible personal property, such as worthless securities or firearms, are exempt from being considered abandoned under this chapter, thereby providing clarity on what is to be reported and handled by the comptroller.

Contention

While the bill is positioned as a means to simplify the unclaimed property system, there are potential points of contention concerning how these regulations might affect the responsibilities of institutions that hold unclaimed property, such as financial institutions and insurance companies. The requirement for comprehensive reporting and issuing notifications might be seen as an added regulatory burden. Moreover, provisions allowing the comptroller to waive claims without formal requests may raise concerns about potential abuse or mismanagement of unclaimed assets, underscoring the need for thorough oversight.