By Goodman                                       H.B. No. 537

      75R3912 CAS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the Uniform Unclaimed Property Act; providing civil

 1-3     penalties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 72, Property Code, is amended to read as

 1-6     follows:

 1-7                 CHAPTER 72.  UNIFORM UNCLAIMED PROPERTY ACT

 1-8                     [ABANDONMENT OF PERSONAL PROPERTY]

 1-9                      SUBCHAPTER A.  GENERAL PROVISIONS

1-10           Sec. 72.001.  SHORT TITLE.  This chapter may be cited as the

1-11     Uniform Unclaimed Property Act (1995).

1-12           Sec. 72.002.  DEFINITIONS.  In this chapter:

1-13                 (1)  "Administrator" means the comptroller.

1-14                 (2)  "Apparent owner" means a person whose name appears

1-15     on the records of a holder as the person entitled to property held,

1-16     issued, or owing by the holder.

1-17                 (3)  "Business association" means a corporation, joint

1-18     stock company, investment company, partnership, unincorporated

1-19     association, joint venture, limited liability company, business

1-20     trust, trust company, safe deposit company, financial organization,

1-21     insurance company, mutual fund, utility, or other business entity

1-22     consisting of one or more persons, whether or not for profit.

1-23                 (4)  "Domicile" means the state of incorporation of a

1-24     corporation and the state of the principal place of business of a

 2-1     holder other than a corporation.

 2-2                 (5)  "Financial organization" means a savings and loan

 2-3     association, savings bank, bank, banking organization, or credit

 2-4     union.

 2-5                 (6)  "Holder" means a person obligated to hold for the

 2-6     account of, or deliver or pay to, the owner property that is

 2-7     subject to this chapter.

 2-8                 (7)  "Insurance company" means an association,

 2-9     corporation, or fraternal or mutual benefit organization, whether

2-10     or not for profit, engaged in the business of providing life

2-11     endowments, annuities, or insurance, including accident, burial,

2-12     casualty, credit life, contract performance, dental,  disability,

2-13     fidelity, fire, health, hospitalization, illness, life,

2-14     malpractice, marine, mortgage, surety, wage protection, and

2-15     workers' compensation insurance.

2-16                 (8)  "Mineral" means gas; oil; coal; other gaseous,

2-17     liquid, and solid hydrocarbons; oil shale; cement material; sand

2-18     and gravel; road material; building stone; chemical raw material;

2-19     gemstone; fissionable and nonfissionable ores; colloidal and other

2-20     clay; steam and other geothermal resource; or any other substance

2-21     defined as a mineral by the law of this state.

2-22                 (9)  "Mineral proceeds" means amounts payable for the

2-23     extraction, production, or sale of minerals, or, upon the

2-24     abandonment of those payments, all payments that become payable

2-25     after abandonment.  The term includes amounts payable:

2-26                       (A)  for the acquisition and retention of a

2-27     mineral lease, including bonuses, royalties, compensatory

 3-1     royalties, shut-in royalties, minimum royalties, and delay rentals;

 3-2                       (B)  for the extraction, production, or sale of

 3-3     minerals, including net revenue interests, royalties, overriding

 3-4     royalties, extraction payments, and production payments; and

 3-5                       (C)  under an agreement or option, including a

 3-6     joint operating agreement, unit agreement, pooling agreement, and

 3-7     farm-out agreement.

 3-8                 (10)  "Money order" includes an express money order and

 3-9     a personal money order, on which the remitter is the purchaser.

3-10     The term does not include a bank money order or any other

3-11     instrument sold by a financial  organization if the seller has

3-12     obtained the name and address of the payee.

3-13                 (11)  "Owner" means a person who has a legal or

3-14     equitable interest in property subject to this chapter or the

3-15     person's legal representative.  The term includes a depositor in

3-16     the case of a deposit, a beneficiary in the case of a trust other

3-17     than a deposit in trust, and a creditor, claimant, or payee in the

3-18     case of other property.

3-19                 (12)  "Property" means tangible property described in

3-20     Section 72.052 or a fixed and certain interest in intangible

3-21     property that is held, issued, or owed in the course of a holder's

3-22     business, or by a government, governmental subdivision, agency, or

3-23     instrumentality, and all income or increments from property.  The

3-24     term includes property that is referred to as or evidenced by:

3-25                       (A)  money, a check, draft, deposit, interest, or

3-26     dividend;

3-27                       (B)  credit balance, customer's overpayment, gift

 4-1     certificate, security deposit, refund, credit memorandum, unpaid

 4-2     wage, unused ticket, mineral proceeds, or unidentified remittance;

 4-3                       (C)  stock or other evidence of ownership of an

 4-4     interest in a business association or financial organization;

 4-5                       (D)  a bond, debenture, note, or other evidence

 4-6     of indebtedness;

 4-7                       (E)  money deposited to redeem stocks, bonds,

 4-8     coupons, or other securities or to make distributions;

 4-9                       (F)  an amount due and payable under the terms of

4-10     an annuity or insurance policy, including policies providing life

4-11     insurance, property and casualty insurance, workers' compensation

4-12     insurance, or health and disability insurance; and

4-13                       (G)  an amount distributable from a trust or

4-14     custodial fund established under a plan to provide health, welfare,

4-15     pension, vacation, severance, retirement, death, stock purchase,

4-16     profit sharing, employee savings, supplemental unemployment

4-17     insurance, or similar benefits.

4-18                 (13)  "Record" means information that is inscribed on a

4-19     tangible medium or that is stored in an electronic or other medium

4-20     and is retrievable in perceivable form.

4-21                 (14)  "State" means a state of the United States, the

4-22     District of Columbia, the Commonwealth of Puerto Rico, or any

4-23     territory or insular possession subject to the jurisdiction of the

4-24     United States.

4-25                 (15)  "Utility" means:

4-26                       (A)  a retail public utility as defined by

4-27     Section 2.251, Public Utility Regulatory Act of 1995 (Article

 5-1     1446c-0, Vernon's Texas Civil Statutes);

 5-2                       (B)  a retail public utility as defined by

 5-3     Section 13.002, Water Code; or

 5-4                       (C)  a gas utility regulated under the Gas

 5-5     Utility Regulatory Act (Article 1446e, Vernon's Texas Civil

 5-6     Statutes), or a municipally owned gas utility.

 5-7           Sec. 72.003.  RULES.  The administrator may adopt rules

 5-8     necessary to carry out this chapter.

 5-9           Sec. 72.004.  UNIFORMITY OF APPLICATION AND CONSTRUCTION.

5-10     This chapter shall be applied and construed to effectuate its

5-11     general purpose to make uniform the law with respect to the subject

5-12     of this chapter among states enacting it.

5-13           Sec. 72.005.  FOREIGN TRANSACTIONS.  This chapter does not

5-14     apply to property held, due, and owing in a foreign country and

5-15     arising out of a foreign transaction.

5-16               (Sections 72.006-72.050 reserved for expansion

5-17                         SUBCHAPTER B.  PRESUMPTIONS

5-18           Sec. 72.051.  PRESUMPTIONS OF ABANDONMENT.  (a)  Property is

5-19     presumed abandoned if it is unclaimed by the apparent owner during

5-20     the time set forth below for the particular property:

5-21                 (1)  traveler's check, 15 years after issuance;

5-22                 (2)  money order, seven years after issuance;

5-23                 (3)  stock or other equity interest in a business

5-24     association or financial organization, including a security

5-25     entitlement under Chapter 8, Business & Commerce Code, five years

5-26     after the earlier of:

5-27                       (A)  the date of the most recent dividend, stock

 6-1     split, or other distribution unclaimed by the apparent owner; or

 6-2                       (B)  the date of the second mailing of a

 6-3     statement of account or other notification or communication that

 6-4     was returned as undeliverable or after the holder discontinued

 6-5     mailings, notifications, or communications to the apparent owner;

 6-6                 (4)  debt of a business association or financial

 6-7     organization, other than a bearer bond or an original issue

 6-8     discount bond, five years after the date of the most recent

 6-9     interest payment unclaimed by the apparent owner;

6-10                 (5)  a demand, savings, or time deposit, including a

6-11     deposit that is automatically renewable, five years after the

6-12     earlier of maturity or the date of the last indication by the owner

6-13     of interest in the property, except that a deposit that is

6-14     automatically renewable is deemed matured for purposes of this

6-15     section on its initial date of maturity, unless the owner has

6-16     consented to a renewal at or about the time of the renewal and the

6-17     consent is in writing or is  evidenced by a memorandum or other

6-18     record on file with the holder;

6-19                 (6)  money or credits owed to a customer as a result of

6-20     a retail business transaction, three years after the obligation

6-21     accrued;

6-22                 (7)  gift certificate, three years after December 31 of

6-23     the year in which the certificate was sold, but if redeemable in

6-24     merchandise only, the amount abandoned is deemed to be 60 percent

6-25     of the certificate's face value;

6-26                 (8)  amount owed by an insurer on a life or endowment

6-27     insurance policy or an annuity that has matured or terminated,

 7-1     three years after the obligation to pay arose or, in the case of a

 7-2     policy or annuity payable upon proof of death, three years after

 7-3     the insured has attained, or would have attained if living, the

 7-4     limiting age under the mortality table on which the reserve is

 7-5     based;

 7-6                 (9)  property distributable by a business association

 7-7     or financial organization in a course of dissolution, one year

 7-8     after the property becomes distributable;

 7-9                 (10)  property received by a court as proceeds of a

7-10     class action, and not distributed pursuant to the judgment, one

7-11     year after the distribution date;

7-12                 (11)  property held by a court, government,

7-13     governmental subdivision, agency, or instrumentality, one year

7-14     after the property becomes distributable;

7-15                 (12)  wages or other compensation for personal

7-16     services, one year after the compensation becomes payable;

7-17                 (13)  deposit or refund owed to a subscriber by a

7-18     utility, one year after the deposit or refund becomes payable;

7-19                 (14)  property in an individual retirement account,

7-20     defined benefit plan, or other account or plan that is qualified

7-21     for tax deferral under the income tax laws of the United States,

7-22     three years after the earliest of the date of the distribution or

7-23     attempted distribution of the property, the date of the required

7-24     distribution as stated in the plan or trust agreement governing the

7-25     plan, or the date, if determinable by the holder, specified in the

7-26     income tax laws of the United States by which distribution of the

7-27     property must begin in order to avoid a tax penalty; and

 8-1                 (15)  all other property, five years after the owner's

 8-2     right to demand the property or after the obligation to pay or

 8-3     distribute the property arises, whichever first occurs.

 8-4           (b)  At the time that an interest is presumed abandoned under

 8-5     Subsection (a), any other property right accrued or accruing to the

 8-6     owner as a result of the interest, and not previously presumed

 8-7     abandoned, is also presumed abandoned.

 8-8           (c)  Property is unclaimed if, for the applicable period set

 8-9     forth in Subsection (a), the apparent owner has not communicated in

8-10     writing or by other means reflected in a contemporaneous record

8-11     prepared by or on behalf of the holder, with the holder concerning

8-12     the property or the account in which the property is held, and has

8-13     not otherwise indicated an interest in the property.  A

8-14     communication with an owner by a person other than the holder or

8-15     its representative who has not in writing identified the property

8-16     to the owner is not an indication of interest in the property by

8-17     the owner.

8-18           (d)  An indication of an owner's interest in property

8-19     includes:

8-20                 (1)  the presentment of a check or other instrument of

8-21     payment of a dividend or other distribution made with respect to an

8-22     account or underlying stock or other interest in a business

8-23     association or financial organization or, in the case of a

8-24     distribution made by electronic or similar means, evidence that the

8-25     distribution has been received;

8-26                 (2)  owner-directed activity in the account in which

8-27     the property is held, including a direction by the owner to

 9-1     increase, decrease, or change the amount or type of property held

 9-2     in the account;

 9-3                 (3)  the making of a deposit to or withdrawal from a

 9-4     bank account; and

 9-5                 (4)  the payment of a premium with respect to a

 9-6     property interest in an insurance policy, except that the

 9-7     application of an automatic premium loan provision or other

 9-8     nonforfeiture provision contained in an insurance policy does not

 9-9     prevent a policy from maturing or terminating if the insured has

9-10     died or the insured or the beneficiary of the policy has otherwise

9-11     become entitled to the proceeds before the depletion of the cash

9-12     surrender value of a policy by the application of those provisions.

9-13           (e)  Property is payable or distributable for purposes of

9-14     this chapter notwithstanding the owner's failure to make demand or

9-15     present an instrument or document otherwise required to obtain

9-16     payment.

9-17           Sec. 72.052.  CONTENTS OF SAFE DEPOSIT BOX OR OTHER

9-18     SAFEKEEPING DEPOSITORY.  Tangible property held in a safe deposit

9-19     box or other safekeeping depository in this state in the ordinary

9-20     course of the holder's business and proceeds resulting from the

9-21     sale of the property permitted by other law are presumed abandoned

9-22     if the property remains unclaimed by the owner for more than five

9-23     years after expiration of the lease or rental period on the box or

9-24     other depository.

9-25               (Sections 72.053-72.100 reserved for expansion

9-26                     SUBCHAPTER C.  HOLDERS OF PROPERTY

9-27           Sec. 72.101.  RULES FOR TAKING CUSTODY.  Except as otherwise

 10-1    provided in this chapter or by other statute of this state,

 10-2    property that is presumed abandoned, whether located in this or

 10-3    another state, is subject to the custody of this state if:

 10-4                (1)  the last known address of the apparent owner, as

 10-5    shown on the records of the holder, is in this state;

 10-6                (2)  the records of the holder do not reflect the

 10-7    identity of the person entitled to the property and it is

 10-8    established that the last known address of the person entitled to

 10-9    the property is in this state;

10-10                (3)  the records of the holder do not reflect the last

10-11    known address of the apparent owner and it is established that:

10-12                      (A)  the last known address of the person

10-13    entitled to the property is in this state; or

10-14                      (B)  the holder is domiciled in this state or is

10-15    a government or governmental subdivision, agency, or

10-16    instrumentality of this state and has not previously paid or

10-17    delivered the property to the state of the last known address of

10-18    the apparent owner or other person entitled to the property;

10-19                (4)  the last known address of the apparent owner, as

10-20    shown on the records of the holder, is in a state that does not

10-21    provide for the escheat or custodial taking of the property and the

10-22    holder is domiciled in this state or is a government or

10-23    governmental subdivision, agency, or instrumentality of this state;

10-24                (5)  the last known address of the apparent owner, as

10-25    shown on the records of the holder, is in a foreign country and the

10-26    holder is domiciled in this state or is a government or

10-27    governmental subdivision, agency, or instrumentality of this state;

 11-1                (6)  the transaction out of which the property arose

 11-2    occurred in this state, the holder is domiciled in a state that

 11-3    does not provide for the escheat or custodial taking of the

 11-4    property, and the last known address of the apparent owner or other

 11-5    person entitled to the property is unknown or is in a state that

 11-6    does not provide for the escheat or custodial taking of the

 11-7    property; or

 11-8                (7)  the property is a traveler's check or money order

 11-9    purchased in this state, or the issuer of the traveler's check or

11-10    money order has its principal place of business in this state and

11-11    the issuer's records show that the instrument was purchased in a

11-12    state that does not provide for the escheat or custodial taking of

11-13    the property, or do not show the state in which the instrument was

11-14    purchased.

11-15          Sec. 72.102.  DORMANCY CHARGE.  A holder may deduct from

11-16    property presumed abandoned a charge imposed by reason of the

11-17    owner's failure to claim the property within a specified time only

11-18    if there is a valid and enforceable written contract between the

11-19    holder and the owner under which the holder may impose the charge

11-20    and the holder regularly imposes the  charge, which is not

11-21    regularly reversed or otherwise canceled.  The amount of the

11-22    deduction is limited to an amount that is not unconscionable.

11-23          Sec. 72.103.  BURDEN OF PROOF AS TO PROPERTY EVIDENCED BY

11-24    RECORD OF CHECK OR DRAFT.  A record of the issuance of a check,

11-25    draft, or similar instrument is prima facie evidence of an

11-26    obligation.  In claiming property from a holder who is also the

11-27    issuer, the administrator's burden of proof as to the existence and

 12-1    amount of the property and its abandonment is satisfied by showing

 12-2    issuance of the instrument and passage of the requisite period of

 12-3    abandonment.  Defenses of payment, satisfaction, discharge, and

 12-4    want of consideration are affirmative defenses that must be

 12-5    established by the holder.

 12-6          Sec. 72.104.  REPORT OF ABANDONED PROPERTY.  (a)  A holder of

 12-7    property presumed abandoned shall make a report to the

 12-8    administrator concerning the property.

 12-9          (b)  The report must be verified and must contain:

12-10                (1)  a description of the property;

12-11                (2)  except with respect to a traveler's check or money

12-12    order, the name, if known, and last known address, if any, and the

12-13    social security number or taxpayer identification number, if

12-14    readily ascertainable, of the apparent owner of property of the

12-15    value of $50 or more;

12-16                (3)  an aggregated amount of items valued under $50

12-17    each;

12-18                (4)  in the case of an amount of $50 or more held or

12-19    owing under an annuity or a life or endowment insurance policy, the

12-20    full name and last known address of the annuitant or insured and of

12-21    the beneficiary;

12-22                (5)  in the case of property held in a safe deposit box

12-23    or other safekeeping depository, an indication of the place where

12-24    it is held and where it may be inspected by the administrator, and

12-25    any amounts owing to the holder;

12-26                (6)  the date, if any, on which the property became

12-27    payable, demandable, or returnable, and the date of the last

 13-1    transaction with the apparent owner with respect to the property;

 13-2    and

 13-3                (7)  other information that the administrator by rule

 13-4    prescribes as necessary for the administration of this chapter.

 13-5          (c)  If a holder of property presumed abandoned is a

 13-6    successor to another person who previously held the property for

 13-7    the apparent owner or the holder has changed its name while holding

 13-8    the property, the holder shall file with the report its former

 13-9    names, if any, and the known names and addresses of all previous

13-10    holders of the property.

13-11          (d)  The report must be filed before November 1 of each year

13-12    and cover the 12 months next preceding July 1 of that year, but a

13-13    report with respect to a life insurance company must be filed

13-14    before May 1 of each year for the calendar year next preceding.

13-15          (e)  The holder of property presumed abandoned shall send

13-16    written notice to the apparent owner, not more than 120 days or

13-17    less than 60 days before filing the report, stating that the holder

13-18    is in possession of property subject to this chapter, if:

13-19                (1)  the holder has in its records an address for the

13-20    apparent owner which the holder's records do not disclose to be

13-21    inaccurate;

13-22                (2)  the claim of the apparent owner is not barred by a

13-23    statute of limitations; and

13-24                (3)  the value of the property is $50 or more.

13-25          (f)  Before the date for filing the report, the holder of

13-26    property presumed abandoned may request the administrator to extend

13-27    the time for filing the report.  The administrator may grant the

 14-1    extension for good cause.  The holder, upon receipt of the

 14-2    extension, may make an interim payment on the amount the holder

 14-3    estimates will ultimately be due, which terminates the accrual of

 14-4    additional interest on the amount paid.

 14-5          (g)  The holder of property presumed abandoned shall file

 14-6    with the report an affidavit stating that the holder has complied

 14-7    with Subsection (e).

 14-8          Sec. 72.105.  PAYMENT OR DELIVERY OF ABANDONED PROPERTY.  (a)

 14-9    Except for property held in a safe deposit box or other safekeeping

14-10    depository, upon filing the report required by Section 72.104, the

14-11    holder of property presumed abandoned shall pay, deliver, or cause

14-12    to be paid or delivered to the administrator the property described

14-13    in the report as unclaimed, but if the property is an automatically

14-14    renewable deposit, and a penalty or forfeiture in the payment of

14-15    interest would result, the time for compliance is extended until a

14-16    penalty or forfeiture would no longer result.  Tangible property

14-17    held in a safe deposit box or other safekeeping depository may not

14-18    be delivered to the administrator until 120 days after filing the

14-19    report required by Section 72.104.

14-20          (b)  If the property reported to the administrator is a

14-21    security or security entitlement under Chapter 8, Business &

14-22    Commerce Code, the administrator is an appropriate person to make

14-23    an endorsement, instruction, or entitlement order on behalf of the

14-24    apparent owner to invoke the duty of the issuer or its transfer

14-25    agent or the securities intermediary to transfer or dispose of the

14-26    security or the security entitlement in accordance with Chapter 8,

14-27    Business & Commerce Code.

 15-1          (c)  If the holder of property reported to the administrator

 15-2    is the issuer of a certificated security, the administrator has the

 15-3    right to obtain a replacement certificate pursuant to Section

 15-4    8.405, Business & Commerce Code, but an indemnity bond is not

 15-5    required.

 15-6          (d)  An issuer, the holder, and any transfer agent or other

 15-7    person acting pursuant to the instructions of and on behalf of the

 15-8    issuer or holder in accordance with this section is not liable to

 15-9    the apparent owner and must be indemnified against claims of any

15-10    person in accordance with Section 72.152.

15-11              (Sections 72.106-72.150 reserved for expansion

15-12             SUBCHAPTER D.  POWERS AND DUTIES OF ADMINISTRATOR

15-13          Sec. 72.151.  NOTICE AND PUBLICATION OF LISTS OF ABANDONED

15-14    PROPERTY.  (a)  The administrator shall publish a notice not later

15-15    than November 30 of the year next following the year in which

15-16    abandoned property has been paid or delivered to the administrator.

15-17    The notice must be published in a newspaper of general circulation

15-18    in the county of this state in which is located the last known

15-19    address of any person named in the notice.  If a holder does not

15-20    report an address for the apparent owner, or the address is outside

15-21    this state, the notice must be published in the county in which the

15-22    holder has its principal place of business within this state or

15-23    another county that the administrator reasonably selects.  The

15-24    advertisement must be in a form that, in the judgment of the

15-25    administrator, is likely to attract the attention of the apparent

15-26    owner of the unclaimed property.  The form must contain:

15-27                (1)  the name of each person appearing to be the owner

 16-1    of the property, as set forth in the report filed by the holder;

 16-2                (2)  the last known address or location of each person

 16-3    appearing to be the owner of the property, if an address or

 16-4    location is set forth in the report filed by the holder;

 16-5                (3)  a statement explaining that property of the owner

 16-6    is presumed to be abandoned and has been taken into the protective

 16-7    custody of the administrator; and

 16-8                (4)  a statement that information about the property

 16-9    and its return to the owner is available to a person having a legal

16-10    or beneficial interest in the property, upon request to the

16-11    administrator.

16-12          (b)  The administrator is not required to advertise the name

16-13    and address or location of an owner of property having a total

16-14    value less than $50, or information concerning a traveler's check,

16-15    money order, or similar instrument.

16-16          Sec. 72.152.  CUSTODY BY STATE; RECOVERY BY HOLDER; DEFENSE

16-17    OF HOLDER.  (a)  In this section, payment or delivery is made in

16-18    "good faith" if:

16-19                (1)  payment or delivery was made in a reasonable

16-20    attempt to comply with this chapter;

16-21                (2)  the holder was not then in breach of a fiduciary

16-22    obligation with respect to the property and had a reasonable basis

16-23    for believing, based on the facts then known, that the property was

16-24    presumed abandoned; and

16-25                (3)  there is no showing that the records under which

16-26    the payment or delivery was made did not meet reasonable commercial

16-27    standards of practice.

 17-1          (b)  Upon payment or delivery of property to the

 17-2    administrator, the state assumes custody and responsibility for the

 17-3    safekeeping of the property.  A holder who pays or delivers

 17-4    property to the administrator in good faith is relieved of all

 17-5    liability arising after payment or delivery with respect to the

 17-6    property.

 17-7          (c)  A holder who has paid money to the administrator

 17-8    pursuant to this chapter may subsequently make payment to a person

 17-9    reasonably appearing to the holder to be entitled to payment.  Upon

17-10    a filing by the holder of proof of payment and proof that the payee

17-11    was entitled to the payment, the administrator shall promptly

17-12    reimburse the holder for the payment without imposing a fee or

17-13    other charge.  If reimbursement is sought for a payment made on a

17-14    negotiable instrument, including a traveler's check or money order,

17-15    the holder must be reimbursed upon filing proof that the instrument

17-16    was duly presented and that payment was made to a person who

17-17    reasonably appeared to be entitled to payment.  The holder must be

17-18    reimbursed for payment made even if the payment was made to a

17-19    person whose claim was barred under Section 72.301.

17-20          (d)  A holder who has delivered property other than money to

17-21    the administrator pursuant to this chapter may reclaim the property

17-22    if it is still in the possession of the administrator, without

17-23    paying any fee or other  charge, upon filing proof that the

17-24    apparent owner has claimed the property from the holder.

17-25          (e)  The administrator may accept a holder's affidavit as

17-26    sufficient proof of the holder's right to recover money and

17-27    property under this section.

 18-1          (f)  If a holder pays or delivers property to the

 18-2    administrator in good faith and after payment or delivery another

 18-3    person claims the property from the holder or another state claims

 18-4    the money or property under its laws relating to escheat or

 18-5    abandoned or unclaimed property, the administrator, upon written

 18-6    notice of the claim, shall defend the holder against the claim and

 18-7    indemnify the holder against any liability on the claim resulting

 18-8    from payment or delivery of the property to the administrator.

 18-9          (g)  Property removed from a safe deposit box or other

18-10    safekeeping depository is received by the administrator subject to

18-11    the holder's right to be reimbursed for the cost of the opening and

18-12    to any valid lien or contract providing for the holder to be

18-13    reimbursed for unpaid rent or storage charges.  The administrator

18-14    shall reimburse the holder out of the proceeds remaining after

18-15    deducting the expense incurred by the administrator in selling the

18-16    property.

18-17          Sec. 72.153.  CREDITING OF DIVIDENDS, INTEREST, AND

18-18    INCREMENTS TO OWNER'S ACCOUNT.  If property other than money is

18-19    delivered to the administrator under this chapter, the owner is

18-20    entitled to receive from the administrator any income or gain

18-21    realized or accruing on the property at or before liquidation or

18-22    conversion of the property into money.  If the property was an

18-23    interest bearing demand, savings, or time deposit, including a

18-24    deposit that is automatically renewable, the administrator shall

18-25    pay interest at the rate specified by Article 1.03, Title 79,

18-26    Revised Statutes (Article 5069-1.03, Vernon's Texas Civil

18-27    Statutes), or any lesser rate the property earned while in the

 19-1    possession of the holder.  Interest begins to accrue when the

 19-2    property is delivered to the administrator and ceases on the

 19-3    earlier of the expiration of 10 years after delivery or the date on

 19-4    which payment is made to the owner.  Interest on interest bearing

 19-5    property is not payable for any period before the effective date of

 19-6    this chapter, unless authorized by law superseded by this chapter.

 19-7          Sec. 72.154.  PUBLIC SALE OF ABANDONED PROPERTY.  (a)  Except

 19-8    as otherwise provided in this section, the administrator, within

 19-9    three years after the receipt of abandoned property, shall sell it

19-10    to the highest bidder at public sale at a location in the state

19-11    which in the judgment of the administrator affords the most

19-12    favorable market for the property.  The administrator may decline

19-13    the highest bid and reoffer the property for sale if the

19-14    administrator considers the bid to be insufficient.  The

19-15    administrator need not offer the property for sale if the

19-16    administrator considers that the probable cost of sale will exceed

19-17    the proceeds of the sale.  A sale held under this section must be

19-18    preceded by a single publication of notice, at least three weeks

19-19    before sale, in a newspaper of general circulation in the county in

19-20    which the property is to be sold.

19-21          (b)  Securities listed on an established stock exchange must

19-22    be sold at prices prevailing on the exchange at the time of sale.

19-23    Other securities may be sold over the counter at prices prevailing

19-24    at the time of sale or by any reasonable method selected by the

19-25    administrator.  If securities are sold by the administrator before

19-26    the expiration of three years after their delivery to the

19-27    administrator, a person making a claim under this chapter before

 20-1    the end of the three-year period is entitled to the proceeds of the

 20-2    sale of the securities or the market value of the securities at the

 20-3    time the claim is made, whichever is greater, plus dividends,

 20-4    interest, and other increments on those proceeds or securities up

 20-5    to the time the claim is made, less any deduction for expenses of

 20-6    sale.  A person making a claim under this chapter after the

 20-7    expiration of the three-year period is  entitled to receive the

 20-8    securities delivered to the administrator by the holder, if they

 20-9    still remain in the custody of the administrator, or the net

20-10    proceeds received from sale, and is not entitled to receive any

20-11    appreciation in the value of the property occurring after delivery

20-12    to the administrator, except in a case of intentional misconduct or

20-13    malfeasance by the administrator.

20-14          (c)  A purchaser of property at a sale conducted by the

20-15    administrator pursuant to this chapter takes the property free of

20-16    all claims of the owner or previous holder and of all persons

20-17    claiming through or under them.  The administrator shall execute

20-18    all documents necessary to complete the transfer of ownership.

20-19          Sec. 72.155.  DEPOSIT OF FUNDS.  (a)  Except as otherwise

20-20    provided by this section, the administrator shall promptly deposit

20-21    to the credit of the general revenue fund all funds received under

20-22    this chapter, including the proceeds from the sale of abandoned

20-23    property under Section 72.154.  The administrator shall retain in a

20-24    separate trust fund at least $100,000 from which the administrator

20-25    shall pay claims allowed.  The administrator shall record the name

20-26    and last known address of each person appearing from the holders'

20-27    reports to be entitled to the property and the name and last known

 21-1    address of each insured person or annuitant and beneficiary and

 21-2    with respect to each policy or annuity listed in the report of an

 21-3    insurance company, its number, the name of the company, and the

 21-4    amount due.

 21-5          (b)  Before making a deposit to the credit of the general

 21-6    revenue fund, the administrator may deduct:

 21-7                (1)  expenses of sale of abandoned property;

 21-8                (2)  costs of mailing and publication in connection

 21-9    with abandoned property;

21-10                (3)  reasonable service charges; and

21-11                (4)  expenses incurred in examining records of holders

21-12    of property and in collecting the property from those holders.

21-13              (Sections 72.156-72.200 reserved for expansion

21-14                           SUBCHAPTER E.  CLAIMS

21-15          Sec. 72.201.  CLAIM OF ANOTHER STATE TO RECOVER PROPERTY.

21-16    (a)  After property has been paid or delivered to the administrator

21-17    under this chapter, another state may recover the property if:

21-18                (1)  the property was paid or delivered to the custody

21-19    of this state because the records of the holder did not reflect a

21-20    last known location of the apparent owner within the borders of the

21-21    other state and the other state establishes that the apparent owner

21-22    or other person entitled to the property was last known to be

21-23    located within the borders of that state and under the laws of that

21-24    state the property has escheated or become subject to a claim of

21-25    abandonment by that state;

21-26                (2)  the property was paid or delivered to the custody

21-27    of this state because the laws of the other state did not provide

 22-1    for the escheat or custodial taking of the property, and under the

 22-2    laws of that state subsequently enacted the property has escheated

 22-3    or become subject to a claim of abandonment by that state;

 22-4                (3)  the records of the holder were erroneous in that

 22-5    they did not accurately identify the owner of the property and the

 22-6    last known location of the owner within the borders of another

 22-7    state and under the laws of that state the property has escheated

 22-8    or become subject to a claim of abandonment by that state;

 22-9                (4)  the property was subjected to custody by this

22-10    state under Section 72.101(6) and under the laws of the state of

22-11    domicile of the holder the property has escheated or become subject

22-12    to a claim of abandonment by that state; or

22-13                (5)  the property is a sum payable on a traveler's

22-14    check, money order, or similar instrument that was purchased in the

22-15    other state and delivered into the custody of this state under

22-16    Section 72.101(7), and under the laws of the other state the

22-17    property has escheated or become subject to a claim of abandonment

22-18    by that state.

22-19          (b)  A claim of another state to recover escheated or

22-20    abandoned property must be presented in a form prescribed by the

22-21    administrator, who shall decide the claim within 90 days after it

22-22    is presented.  The administrator shall allow the claim upon

22-23    determining that the other state is entitled to the abandoned

22-24    property under Subsection (a).

22-25          (c)  The administrator shall require another state, before

22-26    recovering property under this section, to agree to indemnify this

22-27    state and its officers and employees against any liability on a

 23-1    claim to the property.

 23-2          Sec. 72.202.  FILING CLAIM WITH ADMINISTRATOR; HANDLING OF

 23-3    CLAIMS BY ADMINISTRATOR.  (a)  A person, excluding another state,

 23-4    claiming property paid or delivered to the administrator may file a

 23-5    claim on a form prescribed by the administrator and verified by the

 23-6    claimant.

 23-7          (b)  Within 90 days after a claim is filed, the administrator

 23-8    shall allow or deny the claim and give written notice of the

 23-9    decision to the claimant.  If the claim is denied, the

23-10    administrator shall inform the claimant of the reasons for the

23-11    denial and specify what additional evidence is required before the

23-12    claim will be allowed.  The claimant may then file a new claim with

23-13    the administrator or maintain an action under Section 72.203.

23-14          (c)  Within 30 days after a claim is allowed, the property or

23-15    the net proceeds of a sale of the property must be delivered or

23-16    paid by the administrator to the claimant, together with any

23-17    dividend, interest, or other increment to which the claimant is

23-18    entitled under Sections 72.153 and 72.154.

23-19          (d)  A holder who pays the owner for property that has been

23-20    delivered to the state and which, if claimed from the administrator

23-21    by the owner, would be subject to an increment under Sections

23-22    72.153 and 72.154 may recover from the administrator the amount of

23-23    the increment.

23-24          Sec. 72.203.  ACTION TO ESTABLISH CLAIM.  A person aggrieved

23-25    by a decision of the administrator or whose claim has not been

23-26    acted upon within 90 days after its filing may maintain an original

23-27    action to establish the claim in a district court in Travis County,

 24-1    naming the administrator as a  defendant.  If the aggrieved person

 24-2    establishes the claim in an action against the administrator, the

 24-3    court may award the claimant reasonable attorney's fees.

 24-4              (Sections 72.204-72.250 reserved for expansion

 24-5              SUBCHAPTER F.  DISPOSITION OF CERTAIN PROPERTY

 24-6          Sec. 72.251.  ELECTION TO TAKE PAYMENT OR DELIVERY.  (a)  The

 24-7    administrator may decline to receive property reported under this

 24-8    chapter which the administrator considers to have a value less than

 24-9    the expenses of notice and sale.

24-10          (b)  A holder, with the written consent of the administrator

24-11    and upon conditions and terms prescribed by the administrator, may

24-12    report and deliver property before the property is presumed

24-13    abandoned.  Property so delivered must be held by the administrator

24-14    and is not presumed abandoned until it otherwise would be presumed

24-15    abandoned under this chapter.

24-16          Sec. 72.252.  DESTRUCTION OR DISPOSITION OF PROPERTY HAVING

24-17    NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM LIABILITY.  If the

24-18    administrator determines after investigation that property

24-19    delivered under this chapter has no substantial commercial value,

24-20    the administrator may destroy or otherwise dispose of the property

24-21    at any time.  An action or proceeding may not be maintained against

24-22    the state or any officer or against the holder for or on account of

24-23    an act of the administrator under this section, except for

24-24    intentional misconduct or malfeasance.

24-25              (Sections 72.253-72.300 reserved for expansion

24-26                   SUBCHAPTER G.  PERIODS OF LIMITATION

24-27          Sec. 72.301.  EXPIRATION OF PERIOD OF LIMITATION.  The

 25-1    expiration, before or after the effective date of this chapter, of

 25-2    a period of limitation on the owner's right to receive or recover

 25-3    property, whether specified by contract, statute, or court order,

 25-4    does not preclude the property from being presumed abandoned or

 25-5    affect a duty to file a report or to pay or deliver or transfer

 25-6    property to the administrator as required by this chapter.

 25-7          Sec. 72.302.  PERIOD OF LIMITATION.  (a)  An action or

 25-8    proceeding may not be maintained by the administrator to enforce

 25-9    this chapter in regard to the reporting, delivery, or payment of

25-10    property more than 10 years after the holder specifically

25-11    identified the property in a report filed with the administrator or

25-12    gave express notice to the administrator of a dispute regarding the

25-13    property.

25-14          (b)  In the absence of a report or other express notice as

25-15    specified under Subsection (a), the period of limitation is tolled.

25-16    The period of limitation is also tolled by the filing of a report

25-17    that is fraudulent.

25-18              (Sections 72.303-72.350 reserved for expansion

25-19                    SUBCHAPTER H.  REPORTS AND RECORDS

25-20          Sec. 72.351.  REQUESTS FOR REPORTS AND EXAMINATION OF

25-21    RECORDS.  (a)  The administrator may require a person who has not

25-22    filed a report, or a person who the administrator believes has

25-23    filed an inaccurate, incomplete, or false report, to file a

25-24    verified report in a form specified by the administrator.  The

25-25    report must state whether the person is holding property reportable

25-26    under this chapter, describe property not previously reported or as

25-27    to which the administrator has made inquiry, and specifically

 26-1    identify and state the amounts of property that may be in issue.

 26-2          (b)  The administrator, at reasonable times and upon

 26-3    reasonable notice, may examine the records of any person to

 26-4    determine whether the person has complied with this chapter.  The

 26-5    administrator may conduct the examination even if the person

 26-6    believes it is not in possession of any property that must be

 26-7    reported, paid, or delivered under this chapter.  The administrator

 26-8    may contract with any other person to conduct the examination on

 26-9    behalf of the administrator.

26-10          (c)  The administrator at reasonable times may examine the

26-11    records of an agent, including a dividend disbursing agent or

26-12    transfer agent, of a business association or financial association

26-13    that is the holder of property presumed abandoned if the

26-14    administrator has given the notice required by Subsection (b) to

26-15    both the association or organization and the agent at least 90 days

26-16    before the examination.

26-17          (d)  Documents and working papers obtained or compiled by the

26-18    administrator, or the administrator's agents, employees, or

26-19    designated representatives, in the course of conducting an

26-20    examination are confidential and are not public records, but the

26-21    documents and papers may be:

26-22                (1)  used by the administrator in the course of an

26-23    action to collect unclaimed property or otherwise enforce this

26-24    chapter;

26-25                (2)  used in joint examinations conducted with or

26-26    pursuant to an agreement with another state, the federal

26-27    government, or any other governmental subdivision, agency, or

 27-1    instrumentality;

 27-2                (3)  produced pursuant to subpoena or court order; or

 27-3                (4)  disclosed to the abandoned property office of

 27-4    another state for that state's use in circumstances equivalent to

 27-5    those described in this subsection, if the other state is bound to

 27-6    keep the documents and papers confidential.

 27-7          (e)  If an examination of the records of a person results in

 27-8    the disclosure of property reportable under this chapter, the

 27-9    administrator may assess the cost of the examination against the

27-10    holder at the rate of $200 a day for each examiner, or a greater

27-11    amount that is reasonable and was incurred, but the assessment may

27-12    not exceed the value of the property found to be reportable.  The

27-13    cost of an examination made pursuant to Subsection (c) may be

27-14    assessed only against the business association or financial

27-15    organization.

27-16          (f)  If, after the effective date of this chapter, a holder

27-17    does not maintain the records required by Section 72.352 and the

27-18    records of the holder available for the periods subject to this

27-19    chapter are insufficient to permit the preparation of a report, the

27-20    administrator may require the holder to report and pay to the

27-21    administrator the amount the administrator reasonably estimates, on

27-22    the basis of any available records of the holder or by any other

27-23    reasonable method of estimation, should have been but was not

27-24    reported.

27-25          Sec. 72.352.  RETENTION OF RECORDS.  (a)  Except as otherwise

27-26    provided in Subsection (b), a holder required to file a report

27-27    under Section 72.104 shall maintain the records containing the

 28-1    information required to be included in the report for 10 years

 28-2    after the holder files the report, unless a shorter period is

 28-3    provided by rule of the administrator.

 28-4          (b)  A business association or financial organization that

 28-5    sells, issues, or provides to others for sale or issue in this

 28-6    state, traveler's checks, money orders, or similar instruments

 28-7    other than third-party bank checks, on which the business

 28-8    association or financial organization is directly liable, shall

 28-9    maintain a record of the instruments while they remain outstanding,

28-10    indicating the state and date of issue, for three years after the

28-11    holder files the report.

28-12              (Sections 72.353-72.400 reserved for expansion

28-13                   SUBCHAPTER I.  ENFORCEMENT; PENALTIES

28-14          Sec. 72.401.  ENFORCEMENT.  The administrator may maintain an

28-15    action in this or another state to enforce this chapter.  The court

28-16    may award reasonable attorney's fees to the prevailing party.

28-17          Sec. 72.402.  INTERSTATE AGREEMENTS AND COOPERATION; JOINT

28-18    AND RECIPROCAL ACTIONS WITH OTHER STATES.  (a)  The administrator

28-19    may enter into an agreement with another state to exchange

28-20    information relating to abandoned property or its possible

28-21    existence.  The agreement may permit the other state, or another

28-22    person acting on behalf of a state, to examine records as

28-23    authorized in Section 72.351.  The administrator by rule may

28-24    require the reporting of information needed to enable  compliance

28-25    with an agreement made under this section and prescribe the form.

28-26          (b)  The administrator may join with another state to seek

28-27    enforcement of this chapter against any person who is or may be

 29-1    holding property reportable under this chapter.

 29-2          (c)  At the request of another state, the attorney general of

 29-3    this state may maintain an action on behalf of the other state to

 29-4    enforce, in this state, the unclaimed property laws of the other

 29-5    state against a holder of property subject to escheat or a claim of

 29-6    abandonment by the other state, if the other state has agreed to

 29-7    pay expenses incurred by the attorney general in maintaining the

 29-8    action.

 29-9          (d)  The administrator may request that the attorney general

29-10    of another state or another attorney commence an action in the

29-11    other state on behalf of the administrator.  With the approval of

29-12    the attorney general of this state, the administrator may retain

29-13    any other attorney to commence an action in this state on behalf of

29-14    the administrator.  This state shall pay all expenses, including

29-15    attorney's fees, in maintaining an action under this subsection.

29-16    With the administrator's approval, the expenses and attorney's fees

29-17    may be paid from money received under this chapter.  The

29-18    administrator may agree to pay expenses and attorney's fees based

29-19    in whole or in part on a percentage of the value of any property

29-20    recovered in the action.  Any expenses or attorney's fees paid

29-21    under this subsection may not be deducted from the amount that is

29-22    subject to  the claim by the owner under this chapter.

29-23          Sec. 72.403.  INTEREST AND PENALTIES.  (a)  A holder who

29-24    fails to report, pay, or deliver property within the time

29-25    prescribed by this chapter shall pay to the administrator interest

29-26    at the annual rate of two percentage points above the annual rate

29-27    of discount in effect on the date the property should have been

 30-1    paid or delivered for the most recent issue of 52-week United

 30-2    States Treasury bills on the property or value of the property from

 30-3    the date the property should have been reported, paid, or

 30-4    delivered.

 30-5          (b)  Except as otherwise provided in Subsection (c), a holder

 30-6    who fails to report, pay, or deliver property within the time

 30-7    prescribed by this chapter, or fails to perform other duties

 30-8    imposed by this chapter, shall pay to the administrator, in

 30-9    addition to interest as provided in Subsection (a), a civil penalty

30-10    of $200 for each day the report, payment, or delivery is withheld,

30-11    or the duty is not performed, up to a maximum of $5,000.

30-12          (c)  A holder who willfully fails to report, pay, or deliver

30-13    property within the time prescribed by this chapter, or willfully

30-14    fails to perform other duties imposed by this chapter, shall pay to

30-15    the administrator, in addition to interest as provided in

30-16    Subsection (a), a civil penalty of $1,000 for each day the report,

30-17    payment, or delivery is withheld, or the duty is not performed, up

30-18    to a maximum of $25,000, plus 25 percent of the value of any

30-19    property  that should have been but was not reported.

30-20          (d)  A holder who makes a fraudulent report shall pay to the

30-21    administrator, in addition to interest as provided in Subsection

30-22    (a), a civil penalty of $1,000 for each day from the date a report

30-23    under this chapter was due, up to a maximum of $25,000, plus 25

30-24    percent of the value of any property that should have been but was

30-25    not reported.

30-26          (e)  The administrator for good cause may waive, in whole or

30-27    in part, interest under Subsection (a) and penalties under

 31-1    Subsections (b) and (c), and shall waive penalties if the holder

 31-2    acted in good faith and without negligence.

 31-3              (Sections 72.404-72.450 reserved for expansion

 31-4               SUBCHAPTER J.  AGREEMENTS TO LOCATE PROPERTY

 31-5          Sec. 72.451.  AGREEMENT MADE DURING CERTAIN PERIOD VOID.  (a)

 31-6    An agreement by an owner, the primary purpose of which is to

 31-7    locate, deliver, recover, or assist in the recovery of property

 31-8    that is presumed abandoned is void and unenforceable if it was

 31-9    entered into during the period commencing on the date the property

31-10    was presumed abandoned and extending to a time that is 24 months

31-11    after the date the property is paid or delivered to the

31-12    administrator.

31-13          (b)  This section does not apply to an owner's agreement with

31-14    an attorney to file a claim as to identified property or contest

31-15    the administrator's denial of a claim.

31-16          Sec. 72.452.  REQUIREMENTS FOR ENFORCEABILITY.  An agreement

31-17    by an owner, the primary purpose of which is to locate, deliver,

31-18    recover, or assist in the recovery of property is enforceable only

31-19    if the agreement:

31-20                (1)  is in writing;

31-21                (2)  clearly sets forth the nature of the property and

31-22    the services to be rendered;

31-23                (3)  is signed by the apparent owner; and

31-24                (4)  states the value of the property before and after

31-25    the fee or other compensation has been deducted.

31-26          Sec. 72.453.  AGREEMENT CONCERNING MINERAL PROCEEDS.  If an

31-27    agreement covered by this subchapter applies to mineral proceeds

 32-1    and the agreement contains a provision to pay compensation that

 32-2    includes a portion of the underlying minerals or any mineral

 32-3    proceeds not then presumed abandoned, the provision is void and

 32-4    unenforceable.

 32-5          Sec. 72.454.  UNCONSCIONABLE COMPENSATION.  (a)  An agreement

 32-6    covered by this subchapter which provides for compensation that is

 32-7    unconscionable is unenforceable except by the owner.

 32-8          (b)  An owner who has agreed to pay compensation that is

 32-9    unconscionable, or the administrator on behalf of the owner, may

32-10    maintain an action to reduce the compensation to a conscionable

32-11    amount.

32-12          (c)  The court may award reasonable attorney's fees to an

32-13    owner who prevails in the action.

32-14          (d)  This section does not preclude an owner from asserting

32-15    that an agreement covered by this section is invalid on grounds

32-16    other than unconscionable compensation.  [APPLICATION OF CHAPTER.

32-17    (a)  Tangible or intangible personal property is subject to this

32-18    chapter if it is covered by Section 72.101 and:]

32-19                [(1)  the last known address of the apparent owner, as

32-20    shown on the records of the holder, is in this state;]

32-21                [(2)  the records of the holder do not disclose the

32-22    identity of the person entitled to the property, and it is

32-23    established that the last known address of the person entitled to

32-24    the property is in this state;]

32-25                [(3)  the records of the holder do not disclose the

32-26    last known address of the apparent owner, and it is established

32-27    that:]

 33-1                      [(A)  the last known address of the person

 33-2    entitled to the property is in this state; or]

 33-3                      [(B)  the holder is a domiciliary or a government

 33-4    or governmental subdivision or agency of this state and has not

 33-5    previously paid or delivered the property to the state of the last

 33-6    known address of the apparent owner or other person entitled to the

 33-7    property;]

 33-8                [(4)  the last known address of the apparent owner, as

 33-9    shown on the records of the holder, is in a state that does not

33-10    provide by law for the escheat or custodial taking of the property

33-11    or is in a state in which the state's escheat or unclaimed property

33-12    law is not applicable to the property, and the holder is a

33-13    domiciliary or a government or governmental subdivision or agency

33-14    of this state;]

33-15                [(5)  the last known address of the apparent owner, as

33-16    shown on the records of the holder, is in a foreign nation and the

33-17    holder is a domiciliary or a government or governmental subdivision

33-18    or agency of this state; or]

33-19                [(6)  the transaction out of which the property arose

33-20    occurred in this state and:]

33-21                      [(A)  the last known address of the apparent

33-22    owner or other person entitled to the property is:]

33-23                            [(i)  unknown; or]

33-24                            [(ii)  in a state that does not provide by

33-25    law for the escheat or custodial taking of the property or in a

33-26    state in which the state's escheat or unclaimed property law is not

33-27    applicable to the property; and]

 34-1                      [(B)  the holder is a domiciliary of a state that

 34-2    does not provide by law for the escheat or custodial taking of the

 34-3    property or a state in which the state's escheat or unclaimed

 34-4    property law is not applicable to the property.]

 34-5          [(b)  This chapter supplements other chapters in this title,

 34-6    and each chapter shall be followed to the extent applicable.]

 34-7          [(c)  This chapter applies to property held by life insurance

 34-8    companies with the exception of unclaimed funds, as defined by

 34-9    Section 3, Article 4.08, Insurance Code, held by those companies

34-10    that are subject to Article 4.08, Insurance Code.]

34-11          [(d)  A holder of property presumed abandoned under this

34-12    chapter is subject to the procedures of Chapter 74.]

34-13          [(e)  In this chapter, a holder is a person, wherever

34-14    organized or domiciled, who is:]

34-15                [(1)  in possession of property that belongs to

34-16    another;]

34-17                [(2)  a trustee; or]

34-18                [(3)  indebted to another on an obligation.]

34-19          [(f)  In this chapter, a corporation shall be deemed to be a

34-20    domiciliary of the state of its incorporation.]

34-21             [Sections 72.002-72.100 reserved for expansion]

34-22                [SUBCHAPTER B.  PRESUMPTION OF ABANDONMENT]

34-23          [Sec. 72.101.  PERSONAL PROPERTY PRESUMED ABANDONED.

34-24    (a)  Except as provided by this section and Section 72.102,

34-25    personal property is presumed abandoned if, for longer than three

34-26    years:]

34-27                [(1)  the existence and location of the owner of the

 35-1    property is unknown to the holder of the property; and]

 35-2                [(2)  according to the knowledge and records of the

 35-3    holder of the property, a claim to the property has not been

 35-4    asserted or an act of ownership of the property has not been

 35-5    exercised.]

 35-6          [(b)(1)  The three-year period leading to a presumption of

 35-7    abandonment of stock or another intangible ownership interest in a

 35-8    business association, the existence of which is evidenced by

 35-9    records available to the association, commences on the first date

35-10    that either a sum payable as a result of the ownership interest is

35-11    unclaimed by the owner or a communication to the owner is returned

35-12    undelivered by the United States Postal Service.]

35-13                [(2)  The running of the three-year period of

35-14    abandonment ceases immediately on the exercise of an act of

35-15    ownership interest or sum payable or a communication with the

35-16    association as evidenced by a memorandum or other record on file

35-17    with the association or its agents.]

35-18                [(3)  At the time an ownership is presumed abandoned

35-19    under this section, any sum then held for interest or owing to the

35-20    owner as a result of the interest and not previously presumed

35-21    abandoned is presumed abandoned.]

35-22                [(4)  Any stock or other intangible ownership interest

35-23    enrolled in a plan that provides for the automatic reinvestment of

35-24    dividends, distributions, or other sums payable as a result of the

35-25    ownership interest is subject to the presumption of abandonment as

35-26    provided by this section.]

35-27          [Sec. 72.102.  TRAVELER'S CHECK AND MONEY ORDER.  (a)  A

 36-1    traveler's check or money order is not presumed to be abandoned

 36-2    under this chapter unless:]

 36-3                [(1)  the records of the issuer of the check or money

 36-4    order indicate that it was purchased in this state;]

 36-5                [(2)  the issuer's principal place of business is in

 36-6    this state and the issuer's records do not indicate the state in

 36-7    which the check or money order was purchased; or]

 36-8                [(3)  the issuer's principal place of business is in

 36-9    this state, the issuer's records indicate that the check or money

36-10    order was purchased in another state, and the laws of that state do

36-11    not provide for the escheat or custodial taking of the check or

36-12    money order.]

36-13          [(b)  A traveler's check to which Subsection (a) applies is

36-14    presumed to be abandoned on the latest of:]

36-15                [(1)  the 15th anniversary of the date on which the

36-16    check was issued;]

36-17                [(2)  the 15th anniversary of the date on which the

36-18    issuer of the check last received from the owner of the check

36-19    written communication concerning the check; or]

36-20                [(3)  the 15th anniversary of the date of the last

36-21    writing, on file with the issuer, that indicates the owner's

36-22    interest in the check.]

36-23          [(c)  A money order to which Subsection (a) applies is

36-24    presumed to be abandoned on the latest of:]

36-25                [(1)  the fifth anniversary of the date on which the

36-26    money order was issued;]

36-27                [(2)  the fifth anniversary of the date on which the

 37-1    issuer of the money order last received from the owner of the money

 37-2    order written communication concerning the money order; or]

 37-3                [(3)  the fifth anniversary of the date of the last

 37-4    writing, on file with the issuer, that indicates the owner's

 37-5    interest in the money order.]

 37-6          [Sec. 72.103.  PRESERVATION OF PROPERTY.  A holder of

 37-7    abandoned property shall preserve the property and may not by any

 37-8    procedure, including a deduction for service, maintenance, or other

 37-9    charge, transfer, convert, or reduce the property to the profits or

37-10    assets of the holder.]

37-11          SECTION 2.  Chapters 73-75, Property Code, are repealed.

37-12          SECTION 3.  (a)  An initial report filed under Chapter 72,

37-13    Property Code, as amended by this Act, for property that was not

37-14    required to be reported before the effective date of this Act but

37-15    which is subject to Chapter 72, Property Code, as amended by this

37-16    Act, must include all items of property that would have been

37-17    presumed abandoned during the 10-year period preceding the

37-18    effective date of this Act as if this Act had been in effect during

37-19    that period.

37-20          (b)  This Act does not relieve a holder of a duty that arose

37-21    before the effective date of this Act to report, pay, or deliver

37-22    property.  Except as otherwise provided in Section 72.302, Property

37-23    Code, as added by this Act, a holder who did not comply with the

37-24    law in effect before the effective date of this Act is subject to

37-25    the applicable provisions for enforcement and penalties which then

37-26    existed, and those provisions are continued in effect for the

37-27    purpose of this section.

 38-1          SECTION 4.  This Act takes effect September 1, 1997.

 38-2          SECTION 5.  The importance of this legislation and the

 38-3    crowded condition of the calendars in both houses create an

 38-4    emergency and an imperative public necessity that the

 38-5    constitutional rule requiring bills to be read on three several

 38-6    days in each house be suspended, and this rule is hereby suspended.