Texas Unclaimed Property - GFOAT Spring Institute · Texas Unclaimed Property Bryant Clayton...

Texas Comptroller of Public Accounts

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


Common problems

• Incomplete data

• “Messy” data

• Payment issues


Incomplete Data


“Messy” Data


Keep in mind…

• More than 53 jurisdictions

• Dormancy periods vary

• NAUPA Website

http://www.naupa.org/


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


– 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


– 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


Reporting Example

• Step 5: Archive Data

– 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:

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