Bill: SB 1021, 84(R) - 2015

Committee

Senate Business & Commerce

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
Yes Neutral Positive Neutral Neutral Neutral

Author(s)

Brandon Creighton

Bill Caption

Relating to reporting requirements for certain unclaimed property.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Under current law, holders of abandoned property are required to provide owner information for items valued at $50 or more. The purpose of this provision is to allow owners to identify and claim their belongings. Without the owner information submitted with the item of property, it is nearly impossible for a person to locate the item and claim ownership.

SB 1021 would require a life insurance company to report unclaimed proceeds of less than $25 in the aggregate without providing certain information on those proceeds. This would be a decrease from the current reporting threshold of $50.

Also, holders of abandoned property would not not have to furnish certain information on property valued less than $25. This would also be a decrease from the current reporting threshold of $50.

Vote Recommendation Notes

A person’s property is a significant part of his or her liberty. Currently, the laws in the Property Code and Insurance Code require a holder of abandoned property to report it if it exceeds $50 in value. However, a significant amount of lost or abandoned property is less than $50 dollars, which means certain property will not be returned to its rightful owner.  

SB 1021 would lower this threshold so that more property may be identified and claimed by the rightful owners.

The author's statement of intent offers additional insight into the purpose of the bill:

"During Fiscal Year 2014, the comptroller of public accounts of the State of Texas received $9.5 million reported as aggregate properties that could not be published, claimed, or returned to rightful owners because the property was received without owner information, limiting the consumer's ability to assert their ownership of the property. Additionally, there is growing public concern that some states are more focused on using abandoned property as a source of revenue than on returning that property to its rightful owners."

We support SB 1021 because it protects the property rights of individuals by requiring holders of abandoned property to report property that is valued at $25 or greater.

Source URL (retrieved on 04/25/2024 12:04 PM): http://reports.texasaction.com/bill/84r/sb1021?print_view=true