GEC H.B. 2271 75(R) BILL ANALYSIS BUSINESS & INDUSTRY H.B. 2271 By: Thompson 4-2-97 Committee Report (Unamended) BACKGROUND Under Texas' law on unclaimed property, a person who fails to pay or deliver property within a prescribed time must pay interest to the State Treasurer and may pay attorney's fees and civil penalties as well. Counties that discover dormant accounts and determine the funds to be eligible for escheatment are caught in a Catch-22. If they send the money to the state and the state is of the opinion that the money was not sent in timely enough, the state can charge interest and penalties to the county. This discourages counties from sending the money to the state. PURPOSE To encourage counties to escheat dormant accounts to the state, the bill clarifies that Local Governments are exempt from interest, attorney fees, and other penalties under the unclaimed property law. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 74.705, Property Code, by adding subsection (f), to make interest, attorney fees, and other penalties in relation to escheatment of property inapplicable to local governments and their officers and employees if they are performing official functions and duties for such entities. SECTION 2. Application of the Act. SECTION 3. Effective Date. SECTION 4. Emergency Clause.