Subcommittee advances bill requiring Treasury and Taxation to coordinate on finding owners of unclaimed property

The subcommittee recommended reporting House Bill 1640 by an 8-0 recorded vote. The bill would require the Department of Treasury to work with the Department of Taxation to locate owners of unclaimed property and facilitate returns.

Sponsor Delegate Hayes said HB 1640 complements HB 1606 by broadening data-sharing so Treasury can find owners more effectively. "The other part of that conversation is making sure that our agencies are sharing the pertinent information," Hayes said.

Members raised questions about due diligence and staffing. One subcommittee member asked whether the administrator would be properly staffed to exercise due diligence in every case; the member cautioned against presuming that information from Taxation would be sufficient in all instances unless additional staff or resources are provided.

A fiscal statement that appeared during the hearing described the fiscal impact as indeterminate, and noted the measure "may reduce revenue if the literary fund results in location of additional owners," meaning funds returned to private owners would reduce state-held balances.

State Treasurer Dave Richardson said Treasury was not opposed and noted an existing code section already authorizes Tax to share information with Treasury; he said the Treasury often uses a vendor for fast-track location work but that coordinating with Tax would be an additional tool.

After questions from the subcommittee and no public opposition, the clerk recorded an 8-0 recommendation to report HB 1640.