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.