Amend SB 700 by adding the following appropriately numbered
sections to the bill and renumbering subsequent sections of the
bill appropriately:
SECTION ___. Section 74.001, Property Code, is amended to
read as follows:
Sec. 74.001. APPLICABILITY. (a) Except as provided by
Subsection (b), this <This> chapter applies to a holder of property
that is presumed abandoned under Chapter 72, Chapter 73, or Chapter
75.
(b) This chapter does not apply to a holder of property
subject to Chapter 76.
SECTION ___. Title 6, Property Code, is amended by adding
Chapter 76 to read as follows:
CHAPTER 76. REPORT, DELIVERY, AND CLAIMS PROCESS FOR
CERTAIN PROPERTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 76.001. APPLICABILITY. This chapter applies only to
the holder of property if:
(1) the holder is a municipality or county; and
(2) the property is:
(A) presumed abandoned under Chapter 72 or 75;
and
(B) valued at $100 or less.
Sec. 76.002. OFFICERS AND REPRESENTATIVES. In this chapter:
(1) a reference to the treasurer of a holder includes
a person performing the duties of the treasurer of a holder in a
municipality or county in which the office of treasurer does not
exist; and
(2) a reference to the attorney for a holder includes
an attorney designated by the governing body of the holder to
represent the holder.
Sections 76.003-76.100 reserved for expansion
SUBCHAPTER B. PROPERTY REPORT
Sec. 76.101. PROPERTY REPORT. (a) Each holder who on June
30 holds property subject to this chapter shall file a report of
that property on or before the following November 1. Each report
shall be filed with the treasurer of the holder as provided by this
section and on forms prescribed by the treasurer of the holder.
(b) A holder required by Subsection (a) to file a report
shall file a report each successive year regardless of whether the
holder has any reportable property on June 30 of the year in which
the report is filed.
Sec. 76.102. VERIFICATION. (a) The person preparing a
property report shall place at the end of each copy of the report a
verification made under oath and executed by the chief fiscal
officer of the holder, as designated by the holder.
(b) The verification must include the following sentence:
"This report contains a full and complete list of all property held
by the undersigned that, from the knowledge and records of the
undersigned, is abandoned under the laws of the State of Texas."
Sec. 76.103. RETENTION OF RECORDS. (a) The holder required
to file a property report shall keep a record of:
(1) the name and last known address of each person
who, from the records of the holder, appears to be the owner of the
property;
(2) a brief description of the property, including the
identification number of the account, if any; and
(3) the balance of each account, if appropriate.
(b) The record must be kept until the 10th anniversary of
the date on which the property is reportable.
(c) The treasurer of the holder may provide for a shorter
period for keeping a record required by this section.
Sec. 76.104. CONFIDENTIALITY OF PROPERTY REPORT.
(a) Except as provided by this chapter, a property report filed
with the treasurer of the holder is confidential until the second
anniversary of the date the report is filed.
(b) Notwithstanding other law, the social security number of
an owner that is reported to the treasurer of the holder is
confidential.
Sections 76.105-76.200 reserved for expansion
SUBCHAPTER C. NOTICE
Sec. 76.201. PUBLISHED NOTICE. (a) Except as provided by
Subsections (b) and (e), the treasurer of a holder shall publish a
notice in a newspaper in the calendar year immediately following
the year in which the property report is filed. The newspaper must
be a newspaper of general circulation in the jurisdiction of the
holder.
(b) The treasurer of the holder may use a method of
publishing notice that is different from that prescribed by
Subsection (a) if the treasurer determines that the different
method would be as likely as the prescribed method to give actual
notice to the person required to be named in the notice.
(c) The published notice must state that the reported
property is presumed abandoned and subject to this chapter and must
contain:
(1) a statement that, by addressing an inquiry to the
treasurer of the holder, any person possessing a legal or
beneficial interest in the reported property may obtain information
concerning the amount of the property; and
(2) a statement that the owner may present proof of
the claim to the treasurer of the holder and establish the owner's
right to receive the property.
(d) The treasurer of a holder may offer for sale space for
suitable advertisements in a notice published under this section.
Proceeds from the sale of the advertising space shall be used to
defray the cost of publishing the notices, with the remaining
amount, if any, to be deposited to the credit of the unclaimed
money fund.
(e) In the notice required by this section, the treasurer of
the holder may publish other information regarding property if the
treasurer determines that publication of that information is in the
public interest.
Sec. 76.202. NOTICE TO OWNER. (a) During the calendar year
immediately following the year in which the property report is
filed, the treasurer of the holder may mail a notice to each person
who has an address in this state and appears to be entitled to the
reported property.
(b) The notice must contain:
(1) a statement that property is being held by the
treasurer of the holder to which the addressee appears to be
entitled; and
(2) a statement that the owner may present proof of
the claim to the treasurer of the holder and establish the owner's
right to receive the property.
Sec. 76.203. NOTICE THAT ACCOUNTS ARE SUBJECT TO THIS
CHAPTER. Publication of notice in accordance with Section 76.201
is notice to the owner by the holder that the reported property is
subject to this chapter.
Sec. 76.204. CHARGE FOR NOTICE. The treasurer of the holder
may charge the following against the property delivered under this
chapter:
(1) expenses incurred for the publication of notice
required by Section 76.201; and
(2) the amount paid in postage for the notice to the
owner required by Section 76.202.
Sections 76.205-76.300 reserved for expansion
SUBCHAPTER D. DELIVERY
Sec. 76.301. DELIVERY OF PROPERTY TO TREASURER. (a) Each
holder who on June 30 holds property that is subject to this
chapter shall deliver the property to the treasurer of the holder
on or before the following November 1 accompanied by the property
report.
(b) If the property subject to delivery under Subsection (a)
is stock or some other intangible ownership interest in a business
association for which there is no evidence of ownership, the holder
shall issue a duplicate certificate or other evidence of ownership
to the treasurer of the holder at the time delivery is required
under this section.
Sec. 76.302. VERIFICATION OF DELIVERED PROPERTY. (a)
Property delivered under Section 76.301 must be accompanied by a
verification under oath that:
(1) the property delivered is a complete and correct
remittance of all accounts subject to this chapter in the holder's
possession;
(2) the existence and location of the listed owners
are unknown to the holder; and
(3) the listed owners have not asserted a claim or
exercised an act of ownership with respect to the owner's reported
property.
(b) The verification required by Subsection (a) shall be
signed by the chief fiscal officer of the holder, as designated by
the holder.
Sec. 76.303. LIST OF OWNERS. (a) The treasurer of the
holder shall compile and revise each year an alphabetical list of
names and last known addresses of the owners listed in the reports
and the amount credited to each account.
(b) The treasurer of the holder shall make the list
available for public inspection during all reasonable business
hours.
Sec. 76.304. PERIOD OF LIMITATION NOT A BAR. The expiration
of any period specified by statute or court order, during which an
action or proceeding may be initiated or entered to obtain payment
of a claim for money, does not prevent the money from being
presumed abandoned property and does not affect any duty to file a
report required by this chapter or to deliver abandoned property to
the treasurer of the holder.
Sections 76.305-76.400 reserved for expansion
SUBCHAPTER E. DISPOSITION OF DELIVERED PROPERTY
Sec. 76.401. SALE OF PROPERTY. (a) Except as provided by
Subsection (c), the treasurer of the holder shall sell at public
sale all personal property, other than money and marketable
securities, delivered to the treasurer of the holder in accordance
with Section 76.301. The treasurer of the holder shall conduct the
sale in the holder's jurisdiction.
(b) The treasurer of the holder shall sell the property to
the highest bidder. If the treasurer of the holder determines that
the highest bid is insufficient, the treasurer of the holder may
decline that bid and offer the property for public or private sale.
(c) The treasurer of the holder is not required to offer
property for sale if the property belongs to a person with an
address outside this state or the treasurer of the holder
determines that the probable cost of the sale of the property
exceeds its value.
(d) If after investigation the treasurer of the holder
determines that property delivered has insubstantial commercial
value, the treasurer of the holder may destroy or otherwise dispose
of the property at any time.
(e) A person may not maintain any action or proceeding
against the state, an officer of the state, or the holder of
property because of an action taken by the treasurer of the holder
under this section.
Sec. 76.402. NOTICE OF SALE. Before the 21st day before the
day on which a public sale is held under Section 76.401, the
treasurer of the holder shall publish notice of the sale in a
newspaper of general circulation in the county where the sale is to
be held.
Sec. 76.403. PURCHASER'S TITLE. (a) At a sale, public or
private, of property that is held under this subchapter, the
purchaser receives title to the purchased property free from all
claims of the prior owner and prior holder of the property and all
persons claiming through or under the owner or holder.
(b) The treasurer of the holder shall execute all documents
necessary to complete the transfer of title.
Sections 76.404-76.500 reserved for expansion
SUBCHAPTER F. CLAIM FOR DELIVERED PROPERTY
Sec. 76.501. FILING OF CLAIM. (a) A claim for property
delivered to the treasurer of the holder under this chapter must be
filed with the treasurer of the holder.
(b) All claims to which this section applies must be filed
in accordance with procedures and on forms prescribed by the
treasurer of the holder.
Sec. 76.502. CONSIDERATION OF CLAIM. The treasurer of the
holder shall consider the validity of each claim filed under this
subchapter.
Sec. 76.503. HEARING. (a) The treasurer of the holder may
hold a hearing and receive evidence concerning a claim filed under
this subchapter.
(b) If the treasurer of the holder considers that a hearing
is necessary to determine the validity of a claim, the treasurer of
the holder shall sign the statement of the findings and the
decision on the claim. The statement shall report the substance of
the evidence heard and the reasons for the decision. The statement
is a public record.
(c) If the treasurer of the holder determines that a claim
is valid, the treasurer of the holder shall approve and sign the
claim.
Sec. 76.504. PAYMENT OF CLAIM. (a) If a claim has been
approved under this subchapter, the treasurer of the holder shall
pay the claim.
(b) If a claim is for personal property other than money and
has been approved under this subchapter, the treasurer of the
holder promptly shall deliver the property to the claimant unless
the treasurer of the holder has sold the property. If the property
has been sold under Section 76.401, the treasurer of the holder
shall pay to the claimant the proceeds from the sale.
(c) Costs of publication and postage shall be deducted from
the amounts paid under this section, but deductions for any costs
of administration or service charges may not be made.
Sec. 76.505. APPEAL. (a) A person aggrieved by the
decision on a claim filed under this subchapter may appeal the
decision before the 61st day after the date the decision was
rendered.
(b) If a claim has not been decided before the 91st day
after the date the claim was filed, the claimant may appeal within
the 60-day period beginning on the 91st day after the date of
filing.
(c) An appeal under this section must be made by filing suit
against the holder in a district court in the county in which the
claimed property is located. The holder's immunity from suit
without consent is waived with respect to a suit under this
section.
(d) A court shall try an action filed under this section de
novo and shall apply the rules of practice of the court.
Sec. 76.506. FEE FOR RECOVERY. A person who informs a
potential claimant that the claimant may be entitled to claim
property that is reportable to the treasurer of the holder under
this chapter, that has been reported to the treasurer of the
holder, or that is in the possession of the treasurer of the holder
may not contract for or receive from the claimant for services an
amount that exceeds 10 percent of the value of the property
recovered. If the property involved is mineral proceeds, the
amount for services may not include a portion of the underlying
minerals or any production payment, overriding royalty, or similar
payment.
Sec. 76.507. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
PROCEDURE. (a) At any time after property has been paid or
delivered to the treasurer of the holder under this chapter,
another state may recover the property if:
(1) the property was subjected to custody by the
holder because the records of the holder did not reflect the last
known address of the apparent owner when the property was presumed
abandoned under this chapter, and the other state establishes that
the last known address of the apparent owner or other person
entitled to the property was in that state and under the laws of
that state the property escheated to or was subject to a claim of
abandonment by that state;
(2) the last known address of the apparent owner or
other person entitled to the property, as reflected by the records
of the holder, is in the other state and under the laws of that
state the property has escheated to or become subject to a claim of
abandonment by that state; or
(3) the records of the holder were erroneous in that
the records did not accurately reflect the actual owner of the
property and the last known address of the actual owner is in the
other state and under the laws of that state the property escheated
to or was subject to a claim of abandonment by that state.
(b) The claim of another state to recover escheated or
abandoned property must be presented in a form prescribed by the
treasurer of the holder, who shall decide the claim within 90 days
after the date it is presented. The treasurer of the holder shall
allow the claim if the treasurer of the holder determines that the
other state is entitled to the abandoned property under Subsection
(a).
Sections 76.508-76.600 reserved for expansion
SUBCHAPTER G. UNCLAIMED MONEY FUND
Sec. 76.601. FUND. (a) The treasurer of the holder shall
maintain a fund known as the unclaimed money fund.
(b) The treasurer of the holder shall deposit to the credit
of the fund:
(1) all funds, including marketable securities,
delivered to the treasurer of the holder under this chapter or any
other statute requiring the delivery of unclaimed property to the
treasurer of the holder;
(2) all proceeds from the sale of any property,
including marketable securities, under this chapter; and
(3) any income derived from investments of the fund.
(c) The treasurer of the holder shall keep a separate record
and accounting for delivered unclaimed property, other than money,
before its sale.
(d) The treasurer of the holder shall from time to time
invest the amount in the unclaimed money fund in investments
approved by law for the investment of funds by the holder.
(e) The treasurer of the holder may from time to time sell
securities in the fund, including stocks, bonds, and mutual funds,
and use the proceeds to buy, exchange, invest, or reinvest in
marketable securities. When making the investments, the treasurer
of the holder shall exercise the judgment and care of a prudent
person.
(f) The treasurer of the holder shall keep a separate record
and accounting for securities delivered, sold, purchased, or
exchanged and the proceeds and earnings from the securities.
Sec. 76.602. USE OF FUND. (a) The treasurer of the holder
shall use the unclaimed money fund to pay the claims of persons
establishing ownership of property in the possession of the
treasurer of the holder under this chapter or under any other
unclaimed property or escheat statute.
(b) Each fiscal year after deducting funds sufficient to pay
anticipated expenses and claims of the unclaimed money fund, the
treasurer of the holder shall transfer the remainder to the general
fund of the holder.
(c) The treasurer of the holder and the attorney for the
holder may use the unclaimed money fund generally for the
enforcement and administration of this chapter, including the
expenses of forms, notices, examinations, travel, court costs,
supplies, equipment, and employment of necessary personnel and
other necessary expenses.
Sec. 76.603. AUDIT; BUDGET. The unclaimed money fund is
subject to:
(1) audit by the auditor of the holder or an
independent auditor if the holder does not have an auditor; and
(2) budgetary procedures adopted by the governing body
of the holder.
Sections 76.604-76.700 reserved for expansion
SUBCHAPTER H. ENFORCEMENT
Sec. 76.701. RULES. The treasurer of the holder may adopt
rules necessary to carry out this chapter.
Sec. 76.702. EXAMINATION OF RECORDS. (a) To enforce this
chapter and to determine whether reports have been made as required
by this chapter, the treasurer of the holder, at any reasonable
time, may examine the books and records of the holder.
(b) The treasurer of the holder, attorney for the holder, or
an agent of either person may not make public any information
obtained by an examination made under this section and may not
disclose that information except:
(1) in the course of a judicial proceeding authorized
by this chapter in which the holder is a party; or
(2) under an agreement with another state allowing
joint audits or the exchange of information obtained under this
section.
Sec. 76.703. ADDITIONAL PERSONNEL. (a) The treasurer of
the holder and the attorney for the holder may employ, in the
office of either person, additional personnel necessary to enforce
this chapter.
(b) The salary rate of additional personnel may not exceed
the rate paid to other employees of the holder for similar
services.
(c) The salaries of additional personnel shall be paid in
accordance with Section 76.602.
Sec. 76.704. OFFENSE. (a) A person commits an offense if
the person:
(1) wilfully fails to file a report required by this
chapter;
(2) refuses to permit examination of records in
accordance with this chapter;
(3) makes a deduction from or a service charge against
a dormant account or dormant deposit of funds; or
(4) violates any other provision of this chapter.
(b) An offense under this section is punishable by:
(1) a fine of not less than $500 or more than $1,000;
(2) confinement in jail for a term not to exceed six
months; or
(3) both the fine and confinement.
(c) In addition to a criminal penalty, a person who commits
an offense under Subsection (a) is subject to a civil penalty not
to exceed $100 for each day of the violation. The attorney for the
holder shall collect the civil penalty by bringing suit in a
district court of the county in which the holder is located.
SECTION ___. (a) The changes in law made by Section 74.001,
Property Code, as amended by this Act, and Chapter 76, Property
Code, as added by this Act, apply only to unclaimed property held
by a holder, as that term is used in Chapter 76, Property Code, as
added by this Act, on or after June 30, 1998.
(b) Property held by a holder, as that term is used in
Chapter 76, Property Code, as added by this Act, on June 30, 1997,
is governed by the law as it existed immediately before the
effective date of this Act, and the former law is continued in
effect for that purpose.