ZEM H.B. 3581 75(R)BILL ANALYSIS CIVIL PRACTICES H.B. 3581 By: Hightower 4-24-97 Committee Report (Unamended) BACKGROUND The Waco, Beaumont, Trinity, and Sabine Railroad (WBTS) was founded in the early 1900's with the operational headquarters located in Trinity County. Almost from the beginning, the railroad company had financial problems which eventually led to the WBTS being put into receivership around 1929. Since that time, all assets except some right-of-way easements have been sold and the funds deposited in a Trinity County bank. There are no known heirs of any owners of the railroad, nor are there any creditors. There have been two receivers of the WBTS assets: the first receiver has been deceased for many years and the other is now is 72 years old. The time has come for something to be done about this outdated account. PURPOSE As this account is still viewed as active, this legislation would allow closure of this company in a proper manner. Proper notification must be given and the assets distributed by the District Court. 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 Subchapter E, Chapter 64, Civil Practice and Remedies Code by adding Sec. 64.0721 as follows: Sec. 64.0721 TERMINATION OF RAILROAD RECEIVERSHIP (a) Provides that a receiver of a railroad that has been in receivership for more than 50 years may apply to a court to: (1) terminate the receivership, and (2)disburse any assets remaining of the railroad company and specifies to whom such assets can be distributed (b) Mandates proper notification procedures under which the receiver shall notify the public should there be anyone who has a claim with the railroad. (c) Provides for the disbursement of any remaining assets after the time for filing claims under subsection (b) has expired. SECTION 2. Emergency clause. Effective date: upon passage.