Texas Unclaimed Property Bryant Clayton -Holder Reporting Texas Comptroller of Public Accounts (CPA)
Agenda General overview of Unclaimed Property (UP) Texas UP Statistics and Goals Overview of Texas UP reporting requirements Reporting Example Claims overview FAQs Website Tour
Objectives Unclaimed Property Whats and Whys Property types and dormancy periods Holder responsibilities How to report Claims process basics Website
Unclaimed Property: What is it? Any obligation owed that goes unclaimed by owner Examples: Wages, uncashed checks, refunds/rebates, bank accounts, etc NOT real estate and usually not physical property
Unclaimed Property: Why? Consumer Protection Preserves ownership rights Properly account for obligations
Relevant Statutes Texas Property Code Title 6, Chapters 72-76 Chapter 72 Definition of Dormancy Chapter 73 Property held by Financial Institutions Chapter 74 Report, Delivery, Claims Chapter 75 Texas Minerals Chapter 76 Local Government Unclaimed Property
Unclaimed Property Process Flow Property dormant for specified time Property reported by holders to CPA CPA evaluates and matches to payment CPA makes property available to be claimed Claim process
Texas Overview Report Year 2014: $470 MM Received Fiscal Year 2014: $200+ MM Paid Goals and objectives Return more property to owners Expedited claim approval for certain property Outreach staff
Holder Responsibilities Preserve owner data Due diligence Remit report and property to CPA Hold UP data for 10 years + dormancy
Relevant Dates March 1 cutoff Due diligence by May 1 Reports due by July 1
Dormancy What constitutes dormancy Various dormancy periods
Property Types Trifold Quickstart Guide Dormancy definition may vary by property type New Property Types
Report specifications NAUPA 2 format Must be remitted via Texas portal OR online express
Reporting Data entry standards for name fields (Best practices for Texas reports) Suggested abbreviations
Payment Specifications Can pay via check or ACH credit or debit Payments should match report totals; one payment per report Please do not send payment per property
Mechanics of reporting NAUPA 2 Format Available software Online express
Incomplete data Messy data Payment issues Common problems
Incomplete Data
Messy Data
Keep in mind More than 53 jurisdictions Dormancy periods vary NAUPA Website
Reporting Example Company A has the following stale-dated checks: Wages payable ($500) with a last contact date of 2/20/2014 Accounts payable check ($200) with a last contact date of 1/10/2012 Miscellaneous check ($110) with a last contact date of 3/05/2014
Reporting Example Step 1: Determine Dormancy Wages payable ($500) with a last contact date of 2/20/2014 Dormancy period of one year, commencing on 2/20/2014 and ending 2/20/2015 Check should be included in 2015 report
Reporting Example Step 1: Determine Dormancy Accounts payable check (A/P) ($200) with a last contact date of 1/10/2012 Dormancy period of three years, commencing on 1/10/2012 and ending 1/10/2015 Check should be included in 2015 report
Reporting Example Step 1: Determine Dormancy Miscellaneous check ($110) with a last contact date of 3/05/2014 Dormancy period of three years, commencing on 3/05/2014 and ending 3/05/2017 Check should NOT be included in 2015 report
Reporting Example Step 2: Perform Due Diligence Due diligence must be performed for any properties valued at more than $250 74.1011(a) of the Property code requires the notice to state that: The holder is holding the property The holder may be required to deliver the property to the Comptroller on or before July 1 if the property is not claimed
Reporting Example Step 2: Perform Due Diligence Due diligence required for $500 payroll check Due diligence NOT required for $200 A/P check Cost of postage can be deducted as service charge against payroll check
Reporting Example Step 2: Perform Due Diligence After sending out due diligence notice to owner of A/P check, contact was established and a new check was sent and cashed. Single check remains to report
Reporting Example Step 3: Prepare Report Gather required data Use software to prepare report
Reporting Example Step 4: Submit Report and Payment Reports MUST be submitted electronically Payments can be made by check or ACH credit or debit
Step 5: Archive Data Reporting Example Reports and supporting documentation must be maintained for 10 years + dormancy
Reporting Example
Political Subdivisions Property Code Chapter 76 amounts <= $100 School District Municipality County Junior College
Political Subdivisions Property due by Nov. 1 to local Treasurer Cut-off date of June 30 Amounts over $100 follow standard deadlines County treasurer s checks
General Business MS01 requires SSN Please do not use AC property type Use CK property type code only if applicable
Requests for Information CPA may ask for more info for claim Necessary to confirm beneficiaries, additional owners, etc. The better the data, less likely RFI will be needed
Texas Administrative Code 13.21 Reports must be submitted electronically Information must comply with data entry standards Incomplete reports and submissions will be rejected Rejected reports must be resubmitted <= 30 days
Holder Reimbursements Holders may make owners whole and request refund from CPA Not to be used if customer later owes money to business
FAQs Customer contact what is accepted? Do I really need to include full SSNs? Texas is a current pay state for O&G; what does that mean? Why can t I send a CD/disk/paper report? Can I send all unclaimed property to Texas?
FAQs How do I know Texas got my report? Can I email my report? Can I aggregate property?
Objectives Unclaimed Property Whats and Whys Property types and dormancy periods Holder responsibilities How to report Claims process basics Website
Questions: