BILL ANALYSIS


                                                        S.B. 1461
                                                   By: Armbrister
                                                    State Affairs
                                                          4-28-95
                                     Committee Report (Unamended)
BACKGROUND

Section 74.705(a), Property Code, provides for the payment of
interest on escheat property to the state treasurer by any person
who fails to pay or deliver property within the chapter's time
limits.  The interest rate is as published by the consumer credit
commissioner in the Texas Register and is figured from the date the
property should have been paid or delivered until the date the
property is actually paid or delivered.

Additionally, this section of the Property Code provides for a
criminal penalty and fine for the willful failure to file a report
required by the chapter, for refusing to permit examination of
records or making a deduction from or a service charge against a
dormant account or dormant deposit of funds and for violation of
any other provision of the title.  

Government agencies generally do not collect interest on funds held
in trust nor do they have funds available for the payment of
interest.

PURPOSE

As proposed, S.B. 1461 provides that officers or employees engaged
in official duties of a county government, municipality,
independent school district, or any other political subdivision are
not liable for the payment of interest on abandoned property
because of a failure to deliver the property within the time
prescribed.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 74, Property Code, by adding Section
74.705(f), to provide that officers or employees engaged in
official duties of a certain county government, municipality,
independent school district, or any other political subdivision are
not liable for the payment of interest on abandoned property
because of a failure to deliver the property within the time
prescribed.

SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.