Texas House Bill HB1886

Texas 2011 - 82nd Regular

• Out of House Committee: 4/14/11
• Introduced: 2/28/11
• Voted on by House: 5/12/11
• Refer: 3/7/11
• Report Pass: 4/13/11
• Engrossed: 5/12/11
• Refer: 5/13/11

Caption

Relating to unclaimed property.

Impact

The implementation of HB 1886 will require adjustments in how class action proceeds are handled, particularly by courts and settlement administrators who act as holders of these proceeds. The bill aims to streamline the process of returning unclaimed property to rightful owners by ensuring timely reporting and management of class action proceeds. This could reduce the number of unclaimed funds that go unreported and ultimately benefit individuals who are part of such legal actions.

Summary

House Bill 1886 addresses the management of unclaimed property in Texas, specifically focusing on the treatment of proceeds from class action lawsuits. The bill establishes a new section in the Property Code that defines 'class action proceeds' and outlines the responsibilities of holders of such proceeds. The legislation clarifies that if class action proceeds are unclaimed by members of the class within 90 days of being made available, they are considered abandoned and must be reported to the comptroller within 60 days thereafter.

Contention

Although the bill presents practical solutions for managing unclaimed class action proceeds, some stakeholders may have concerns regarding the specifics of the reporting process and the timeline imposed by the bill. Critics might argue that the 90-day claim window and subsequent 60-day reporting requirement could place undue burdens on holders and complicate the recovery process for potential beneficiaries. Such concerns emphasize the need for balancing efficiency in handling unclaimed property against the rights and needs of individuals affected by class actions.