Texas Comptroller of Public Accounts
Texas Unclaimed Property
Bryant Clayton -Holder Reporting
Texas Comptroller of Public Accounts (CPA)
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
Objectives
• Unclaimed Property – Whats and Whys
• Property types and dormancy periods
• Holder responsibilities
• How to report
• Claims process basics
• Website
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
Unclaimed Property: Why?
• Consumer Protection
• Preserves ownership rights
• Properly account for obligations
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
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 Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
Holder Responsibilities
• Preserve owner data
• Due diligence
• Remit report and property to CPA
• Hold UP data for 10 years + dormancy
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Relevant Dates
• March 1 cutoff
• Due diligence by May 1
• Reports due by July 1
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Dormancy
• What constitutes dormancy
• Various dormancy periods
Texas Comptroller of Public Accounts
Property Types
• Trifold Quickstart Guide
• Dormancy definition may vary by property type
• New Property Types
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Report specifications
• NAUPA 2 format
• Must be remitted via Texas portal
• OR online express
Texas Comptroller of Public Accounts
Reporting
• Data entry standards for name fields (Best practices for Texas reports)
• Suggested abbreviations
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
Mechanics of reporting
• NAUPA 2 Format
• Available software
• Online express
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Common problems
• Incomplete data
• “Messy” data
• Payment issues
Texas Comptroller of Public Accounts
Keep in mind…
• More than 53 jurisdictions
• Dormancy periods vary
• NAUPA Website
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
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
Texas Comptroller of Public Accounts
Reporting Example
• Step 3: Prepare Report
– Gather required data
– Use software to prepare report
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Reporting Example
• Step 4: Submit Report and Payment
– Reports MUST be submitted electronically
– Payments can be made by check or ACH credit or debit
Texas Comptroller of Public Accounts
Reporting Example
• Step 5: Archive Data
– Reports and supporting documentation must be maintained for 10 years + dormancy
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Political Subdivisions
• Property Code Chapter 76 – amounts <= $100
– School District
– Municipality
– County
– Junior College
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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
Texas Comptroller of Public Accounts
General Business
• MS01 requires SSN
• Please do not use AC property type
• Use CK property type code only if applicable
Texas Comptroller of Public Accounts
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 Comptroller of Public Accounts
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
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Holder Reimbursements
• Holders may make owners whole and request refund from CPA
• Not to be used if customer later owes money to business
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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?
Texas Comptroller of Public Accounts
FAQs
• How do I know Texas got my report?
• Can I email my report?
• Can I aggregate property?
Texas Comptroller of Public Accounts
Objectives
• Unclaimed Property – Whats and Whys
• Property types and dormancy periods
• Holder responsibilities
• How to report
• Claims process basics
• Website