By Smith H.B. No. 2986
75R8513 PAM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the transfer of certain unclaimed property to the
1-3 municipal treasurer; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 74.001, Property Code, is amended to read
1-6 as follows:
1-7 Sec. 74.001. APPLICABILITY. (a) Except as provided by
1-8 Subsection (b), this [This] chapter applies to a holder of property
1-9 that is presumed abandoned under Chapter 72, Chapter 73, or Chapter
1-10 75.
1-11 (b) This chapter does not apply to a holder of property
1-12 subject to Chapter 76.
1-13 SECTION 2. Title 6, Property Code, is amended by adding
1-14 Chapter 76 to read as follows:
1-15 CHAPTER 76. REPORT, DELIVERY, AND CLAIMS PROCESS FOR
1-16 CERTAIN PROPERTY
1-17 SUBCHAPTER A. GENERAL PROVISIONS
1-18 Sec. 76.001. APPLICABILITY. This chapter applies only to
1-19 the holder of property that is presumed abandoned under Chapter 72,
1-20 73, or 75 if the holder resides within the corporate boundaries of
1-21 a municipality.
1-22 Sec. 76.002. MUNICIPAL OFFICERS AND REPRESENTATIVES. In
1-23 this chapter:
1-24 (1) a reference to the municipal treasurer includes a
2-1 person performing the duties of the municipal treasurer in a
2-2 municipality in which the office of municipal treasurer does not
2-3 exist; and
2-4 (2) a reference to the municipal attorney includes an
2-5 attorney designated by the governing body of the municipality to
2-6 represent the municipality.
2-7 (Sections 76.003-76.100 reserved for expansion
2-8 SUBCHAPTER B. PROPERTY REPORT
2-9 Sec. 76.101. PROPERTY REPORT. (a) Each holder who on June
2-10 30 holds property that is presumed abandoned under Chapter 72, 73,
2-11 or 75 shall file a report of that property on or before the
2-12 following November 1. Each report shall be filed with the
2-13 municipal treasurer as provided by this section and on forms
2-14 prescribed by the municipal treasurer.
2-15 (b) A holder required by Subsection (a) to file a report
2-16 shall file a report each successive year regardless of whether the
2-17 holder has any reportable property on June 30 of the year in which
2-18 the report is filed.
2-19 (c) The property report must include:
2-20 (1) the name, if known, and the last known address, if
2-21 any, of each person who, from the records of the holder of the
2-22 property, appears to be the owner of the property, or the name and
2-23 address, if known, of any person who is entitled to the property;
2-24 (2) a brief description of the property, the
2-25 identification number, if any, and, if appropriate, a balance of
2-26 each account, except as provided by Subsection (d);
2-27 (3) the date that the property became payable,
3-1 demandable, or returnable;
3-2 (4) the date of the last transaction with the owner
3-3 concerning the property;
3-4 (5) any deduction made by the holder of the property
3-5 for a service, maintenance, or other charge, unless fully restored
3-6 and included in the amount reported; and
3-7 (6) other information that the municipal treasurer
3-8 requires to be disclosed as necessary for the administration of
3-9 this chapter.
3-10 (d) Amounts due that individually are less than $50 may be
3-11 reported in the aggregate without furnishing any of the information
3-12 required by Subsection (c).
3-13 Sec. 76.102. VERIFICATION. (a) The person preparing a
3-14 property report shall place at the end of each copy of the report a
3-15 verification made under oath and executed by:
3-16 (1) the individual holding the reported property;
3-17 (2) a partner, if the holder is a partnership;
3-18 (3) an officer, if the holder is an unincorporated
3-19 association or a private corporation; or
3-20 (4) the chief fiscal officer, if the holder is a
3-21 public corporation.
3-22 (b) The verification must include the following sentence:
3-23 "This report contains a full and complete list of all property held
3-24 by the undersigned that, from the knowledge and records of the
3-25 undersigned, are abandoned under the laws of the State of Texas."
3-26 Sec. 76.103. RETENTION OF RECORDS. (a) The holder required
3-27 to file a property report shall keep a record of:
4-1 (1) the name and last known address of each person
4-2 who, from the records of the holder, appears to be the owner of the
4-3 property;
4-4 (2) a brief description of the property, including the
4-5 identification number of the account, if any; and
4-6 (3) the balance of each account, if appropriate.
4-7 (b) The record must be kept until the 10th anniversary of
4-8 the date on which the property is reportable regardless of whether
4-9 the property is reported in the aggregate under Section 76.101.
4-10 (c) The municipal treasurer may provide for a shorter period
4-11 for keeping a record required by this section.
4-12 Sec. 76.104. CONFIDENTIALITY OF PROPERTY REPORT.
4-13 (a) Except as provided by this chapter, a property report filed
4-14 with the municipal treasurer is confidential until the second
4-15 anniversary of the date the report is filed.
4-16 (b) Notwithstanding other law, the social security number of
4-17 an owner that is reported to the municipal treasurer is
4-18 confidential.
4-19 (Sections 76.105-76.200 reserved for expansion
4-20 SUBCHAPTER C. NOTICE
4-21 Sec. 76.201. PUBLISHED NOTICE. (a) Except as provided by
4-22 Subsection (b) and Section 76.202, the municipal treasurer shall
4-23 publish a notice in a newspaper of general circulation in the
4-24 calendar year immediately following the year in which the property
4-25 report is filed. The notice must be published:
4-26 (1) in the county in which the last known address of a
4-27 person required to be named in the notice is located; or
5-1 (2) if the address of a person listed is not set out
5-2 in the report or if it is outside the state, in the county in which
5-3 the holder of the abandoned property has its principal place of
5-4 business, registered office, or agent for service in this state.
5-5 (b) The municipal treasurer may use a method of publishing
5-6 notice that is different from that prescribed by Subsection (a) if
5-7 the municipal treasurer determines that the different method would
5-8 be as likely as the prescribed method to give actual notice to the
5-9 person required to be named in the notice.
5-10 (c) The published notice must state that the reported
5-11 property is presumed abandoned and subject to this chapter and must
5-12 contain:
5-13 (1) the name and municipality of the last known
5-14 address, if any, of each person listed in the property report,
5-15 listed alphabetically by name;
5-16 (2) a statement that, by addressing an inquiry to the
5-17 municipal treasurer, any person possessing a legal or beneficial
5-18 interest in the reported property may obtain information concerning
5-19 the amount of the property; and
5-20 (3) a statement that the owner may present proof of
5-21 the claim to the municipal treasurer and establish the owner's
5-22 right to receive the property.
5-23 (d) The municipal treasurer may offer for sale space for
5-24 suitable advertisements in a notice published under this section.
5-25 Proceeds from the sale of the advertising space shall be used to
5-26 defray the cost of publishing the notices, with the remaining
5-27 amount, if any, to be deposited to the credit of the unclaimed
6-1 money fund.
6-2 Sec. 76.202. NOTICE FOR ITEM WITH VALUE NOT EXCEEDING $50.
6-3 In the notice required by Section 76.201, the municipal treasurer
6-4 is not required to publish information regarding property having a
6-5 value that is less than $50 unless the municipal treasurer
6-6 determines that publication of that information is in the public
6-7 interest.
6-8 Sec. 76.203. NOTICE TO OWNER. (a) During the calendar year
6-9 immediately following the year in which the property report is
6-10 filed, the municipal treasurer may mail a notice to each person who
6-11 has an address in this state and appears to be entitled to the
6-12 reported property valued at $50 or more.
6-13 (b) The notice must contain:
6-14 (1) a statement that property is being held by the
6-15 municipal treasurer to which the addressee appears to be entitled;
6-16 and
6-17 (2) a statement that the owner may present proof of
6-18 the claim to the municipal treasurer and establish the owner's
6-19 right to receive the property.
6-20 Sec. 76.204. NOTICE THAT ACCOUNTS ARE SUBJECT TO THIS
6-21 CHAPTER. Publication of notice in accordance with Section 76.201
6-22 is notice to the owner by the municipality that the reported
6-23 property is subject to this chapter.
6-24 Sec. 76.205. CHARGE FOR NOTICE. The municipal treasurer may
6-25 charge the following against the property delivered under this
6-26 chapter:
6-27 (1) expenses incurred for the publication of notice
7-1 required by Section 76.201; and
7-2 (2) the amount paid in postage for the notice to the
7-3 owner required by Section 76.203.
7-4 (Sections 76.206-76.300 reserved for expansion
7-5 SUBCHAPTER D. DELIVERY
7-6 Sec. 76.301. DELIVERY OF PROPERTY TO MUNICIPAL TREASURER.
7-7 (a) Each holder who on June 30 holds property that is presumed
7-8 abandoned under Chapter 72, 73, or 75 shall deliver the property to
7-9 the municipal treasurer on or before the following November 1
7-10 accompanied by the property report.
7-11 (b) If the property subject to delivery under Subsection (a)
7-12 is stock or some other intangible ownership interest in a business
7-13 association for which there is no evidence of ownership, the holder
7-14 shall issue a duplicate certificate or other evidence of ownership
7-15 to the municipal treasurer at the time delivery is required under
7-16 this section.
7-17 Sec. 76.302. VERIFICATION OF DELIVERED PROPERTY. (a)
7-18 Property delivered under Section 76.301 must be accompanied by a
7-19 verification under oath that:
7-20 (1) the property delivered is a complete and correct
7-21 remittance of all accounts subject to this chapter in the holder's
7-22 possession;
7-23 (2) the existence and location of the listed owners
7-24 are unknown to the holder; and
7-25 (3) the listed owners have not asserted a claim or
7-26 exercised an act of ownership with respect to the owner's reported
7-27 property.
8-1 (b) The verification required by Subsection (a) shall be
8-2 signed by:
8-3 (1) the individual holding the reported property;
8-4 (2) a partner, if the holder is a partnership;
8-5 (3) an officer, if the holder is an unincorporated
8-6 association or a private corporation; or
8-7 (4) the chief fiscal officer, if the holder is a
8-8 public corporation.
8-9 Sec. 76.303. RESPONSIBILITY AFTER DELIVERY. (a) If
8-10 reported property is delivered to the municipal treasurer, the
8-11 municipality shall assume custody of the property and
8-12 responsibility for the safekeeping of the property.
8-13 (b) A holder who delivers property to the municipal
8-14 treasurer in good faith is relieved of all liability to the extent
8-15 of the value of the property delivered for any claim then existing
8-16 that may arise after delivery to the municipal treasurer or that
8-17 may be made with respect to the property.
8-18 (c) If the holder delivers property to the municipal
8-19 treasurer in good faith and, after delivery, a person claims the
8-20 property from the holder or another state claims the property under
8-21 its laws relating to escheat or unclaimed property, the municipal
8-22 attorney shall, on written notice of the claim, defend the holder
8-23 against the claim and the holder shall be indemnified from the
8-24 unclaimed money fund against any liability on the claim.
8-25 (d) The municipal treasurer is not, in the absence of
8-26 negligence or mishandling of the property, liable to the person who
8-27 claims the property for damages incurred while the property is in
9-1 the municipal treasurer's possession. But in any event, the
9-2 liability of the municipality is limited to the extent of the
9-3 property delivered under this chapter and remaining in the
9-4 possession of the municipal treasurer at the time a suit is filed.
9-5 (e) For the purposes of this section, payment or delivery is
9-6 made in good faith if:
9-7 (1) payment or delivery was made in a reasonable
9-8 attempt to comply with this chapter;
9-9 (2) the person delivering the property was not a
9-10 fiduciary then in breach of trust with respect to the property and
9-11 had a reasonable basis for believing based on the facts then known
9-12 to the person that the property was abandoned or inactive for
9-13 purposes of this chapter; and
9-14 (3) there is no showing that the records under which
9-15 the delivery was made did not meet reasonable commercial standards
9-16 of practice in the industry.
9-17 (f) On delivery of a duplicate certificate or other evidence
9-18 of ownership to the municipal treasurer under Section 76.301(b),
9-19 the holder and any transfer agent, registrar, or other person
9-20 acting for or on behalf of a holder in executing or delivering the
9-21 duplicate certificate are relieved of all liability of every kind
9-22 in accordance with this section to any person, including any person
9-23 acquiring the original certificate or the duplicate of the
9-24 certificate issued to the municipal treasurer, for any losses or
9-25 damages resulting to any person by the issuance and delivery to the
9-26 municipal treasurer of the duplicate certificate.
9-27 Sec. 76.304. SUIT TO COMPEL DELIVERY. (a) If a holder
10-1 fails to deliver property to the municipal treasurer in accordance
10-2 with this subchapter, the municipal attorney shall bring an action
10-3 in the name of the municipality on request of the municipal
10-4 treasurer to compel the delivery of the property.
10-5 (b) Venue for a suit brought under this section is in any
10-6 district court in the county in which the property is located.
10-7 (c) The fact that a suit seeks to compel delivery of
10-8 property from more than one holder is not grounds for an objection
10-9 concerning the misjoinder of parties or causes of action.
10-10 (d) In a suit filed under this section, the municipal
10-11 attorney must show that the notice required by Sections 76.201 and
10-12 76.203 has been given. When introduced into evidence, the verified
10-13 property report, unless rebutted, is sufficient evidence that the
10-14 property is abandoned and subject to delivery under this chapter
10-15 and for entry of a judgment transferring custody of the property to
10-16 the municipal treasurer.
10-17 Sec. 76.305. LIST OF OWNERS. (a) The municipal treasurer
10-18 shall compile and revise each year, except as to amounts reported
10-19 in the aggregate, an alphabetical list of names and last known
10-20 addresses of the owners listed in the reports and the amount
10-21 credited to each account.
10-22 (b) The municipal treasurer shall make the list available
10-23 for public inspection during all reasonable business hours.
10-24 Sec. 76.306. PERIOD OF LIMITATION NOT A BAR. The expiration
10-25 of any period specified by statute or court order, during which an
10-26 action or proceeding may be initiated or entered to obtain payment
10-27 of a claim for money, does not prevent the money from being
11-1 presumed abandoned property and does not affect any duty to file a
11-2 report required by this chapter or to deliver abandoned property to
11-3 the municipal treasurer.
11-4 Sec. 76.307. PRIVATE ESCHEAT AGREEMENTS PROHIBITED. An
11-5 individual, corporation, business association, or other
11-6 organization may not act through amendment of articles of
11-7 incorporation, amendment of bylaws, private agreement, or any other
11-8 means to take or divert funds or personal property into income,
11-9 divide funds or personal property among locatable patrons or
11-10 stockholders, or divert funds or personal property by any other
11-11 method for the purpose of circumventing the unclaimed property
11-12 process.
11-13 (Sections 76.308-76.400 reserved for expansion
11-14 SUBCHAPTER E. DISPOSITION OF DELIVERED PROPERTY
11-15 Sec. 76.401. SALE OF PROPERTY. (a) Except as provided by
11-16 Subsection (c), the municipal treasurer shall sell at public sale
11-17 all personal property, other than money and marketable securities,
11-18 delivered to the municipal treasurer in accordance with Section
11-19 76.301. The municipal treasurer shall conduct the sale in the
11-20 municipality.
11-21 (b) The municipal treasurer shall sell the property to the
11-22 highest bidder. If the municipal treasurer determines that the
11-23 highest bid is insufficient, the municipal treasurer may decline
11-24 that bid and offer the property for public or private sale.
11-25 (c) The municipal treasurer is not required to offer
11-26 property for sale if the property belongs to a person with an
11-27 address outside this state or the municipal treasurer determines
12-1 that the probable cost of the sale of the property exceeds its
12-2 value.
12-3 (d) If after investigation the municipal treasurer
12-4 determines that property delivered from a safe deposit box or other
12-5 repository has insubstantial commercial value, the municipal
12-6 treasurer may destroy or otherwise dispose of the property at any
12-7 time.
12-8 (e) A person may not maintain any action or proceeding
12-9 against the state, an officer of the state, or the holder of
12-10 property because of an action taken by the municipal treasurer
12-11 under this section.
12-12 Sec. 76.402. NOTICE OF SALE. Before the 21st day before the
12-13 day on which a public sale is held under Section 76.401, the
12-14 municipal treasurer shall publish notice of the sale in a newspaper
12-15 of general circulation in the county where the sale is to be held.
12-16 Sec. 76.403. PURCHASER'S TITLE. (a) At a sale, public or
12-17 private, of property that is held under this subchapter, the
12-18 purchaser receives title to the purchased property free from all
12-19 claims of the prior owner and prior holder of the property and all
12-20 persons claiming through or under the owner or holder.
12-21 (b) The municipal treasurer shall execute all documents
12-22 necessary to complete the transfer of title.
12-23 (Sections 76.404-76.500 reserved for expansion
12-24 SUBCHAPTER F. CLAIM FOR DELIVERED PROPERTY
12-25 Sec. 76.501. FILING OF CLAIM. (a) Except as provided by
12-26 Subsection (b), a claim for property delivered to the municipal
12-27 treasurer under this chapter must be filed with the municipal
13-1 treasurer.
13-2 (b) If a claim is for inactive property that was held by a
13-3 depository before being delivered to the municipal treasurer, the
13-4 claim may be filed with the depository under Section 76.502.
13-5 (c) All claims to which this section applies must be filed
13-6 in accordance with procedures and on forms prescribed by the
13-7 municipal treasurer.
13-8 Sec. 76.502. CLAIM FILED WITH DEPOSITORY. (a) If inactive
13-9 property held by a depository under Chapter 73 is delivered to the
13-10 municipal treasurer under Section 76.301, a claim may be filed with
13-11 the depository except that any claim by another state must be filed
13-12 with the municipal treasurer. The municipal treasurer shall
13-13 prescribe forms and procedures for filing claims with depositories.
13-14 (b) If a claim is filed with a depository under this section
13-15 and the depository determines in good faith that the claim is
13-16 valid, the depository may pay the amount of the claim.
13-17 (c) If the amount paid under Subsection (b) is $100 or less,
13-18 the municipal treasurer shall reimburse the depository on receipt
13-19 of a written statement subscribed and sworn to by an officer of the
13-20 depository that states:
13-21 (1) the name and address of the person to whom payment
13-22 was made; and
13-23 (2) that the depository believes in good faith that
13-24 the claim is valid.
13-25 (d) If the amount paid under Subsection (b) is more than
13-26 $100, the municipal treasurer shall examine the claim and any
13-27 supporting affidavit or evidence of the claim. Before the
14-1 municipal treasurer may reimburse a depository for a claim under
14-2 this subsection, the claim must be approved and signed by the
14-3 municipal treasurer.
14-4 Sec. 76.503. CONSIDERATION OF CLAIM. The municipal
14-5 treasurer shall consider the validity of each claim filed under
14-6 this subchapter.
14-7 Sec. 76.504. HEARING. (a) The municipal treasurer may hold
14-8 a hearing and receive evidence concerning a claim filed under this
14-9 subchapter.
14-10 (b) If the municipal treasurer considers that a hearing is
14-11 necessary to determine the validity of a claim, the municipal
14-12 treasurer shall sign the statement of the findings and the decision
14-13 on the claim. The statement shall report the substance of the
14-14 evidence heard and the reasons for the decision. The statement is
14-15 a public record.
14-16 (c) If the municipal treasurer determines that a claim is
14-17 valid, the municipal treasurer shall approve and sign the claim.
14-18 Sec. 76.505. PAYMENT OF CLAIM. (a) If a claim has been
14-19 approved under this subchapter, the municipal treasurer shall pay
14-20 the claim.
14-21 (b) If a claim is for personal property other than money and
14-22 has been approved under this subchapter, the municipal treasurer
14-23 promptly shall deliver the property to the claimant unless the
14-24 municipal treasurer has sold the property. If the property has
14-25 been sold under Section 76.401, the municipal treasurer shall pay
14-26 to the claimant the proceeds from the sale.
14-27 (c) Costs of publication and postage shall be deducted from
15-1 the amounts paid under this section, but deductions for any costs
15-2 of administration or service charges may not be made, except as
15-3 provided by Section 76.509.
15-4 Sec. 76.506. APPEAL. (a) A person aggrieved by the
15-5 decision on a claim filed under this subchapter may appeal the
15-6 decision before the 61st day after the date the decision was
15-7 rendered.
15-8 (b) If a claim has not been decided before the 91st day
15-9 after the date the claim was filed, the claimant may appeal within
15-10 the 60-day period beginning on the 91st day after the date of
15-11 filing.
15-12 (c) An appeal under this section must be made by filing suit
15-13 against the municipality in a district court in the county in which
15-14 the claimed property is located. The municipality's immunity from
15-15 suit without consent is waived with respect to a suit under this
15-16 section.
15-17 (d) A court shall try an action filed under this section de
15-18 novo and shall apply the rules of practice of the court.
15-19 Sec. 76.507. FEE FOR RECOVERY. A person who informs a
15-20 potential claimant that the claimant may be entitled to claim
15-21 property that is reportable to the municipal treasurer under this
15-22 chapter, that has been reported to the municipal treasurer, or that
15-23 is in the possession of the municipal treasurer may not contract
15-24 for or receive from the claimant for services an amount that
15-25 exceeds 10 percent of the value of the property recovered. If the
15-26 property involved is mineral proceeds, the amount for services may
15-27 not include a portion of the underlying minerals or any production
16-1 payment, overriding royalty, or similar payment.
16-2 Sec. 76.508. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
16-3 PROCEDURE. (a) At any time after property has been paid or
16-4 delivered to the municipal treasurer under this chapter, another
16-5 state may recover the property if:
16-6 (1) the property was subjected to custody by the
16-7 municipality because the records of the holder did not reflect the
16-8 last known address of the apparent owner when the property was
16-9 presumed abandoned under this chapter, and the other state
16-10 establishes that the last known address of the apparent owner or
16-11 other person entitled to the property was in that state and under
16-12 the laws of that state the property escheated to or was subject to
16-13 a claim of abandonment by that state;
16-14 (2) the last known address of the apparent owner or
16-15 other person entitled to the property, as reflected by the records
16-16 of the holder are in the other state and under the laws of that
16-17 state the property has escheated to or become subject to a claim of
16-18 abandonment by that state;
16-19 (3) the records of the holder were erroneous in that
16-20 the records did not accurately reflect the actual owner of the
16-21 property and the last known address of the actual owner is in the
16-22 other state and under the laws of that state the property escheated
16-23 to or was subject to a claim of abandonment by that state;
16-24 (4) the property was subjected to custody by this
16-25 state under Section 72.001(a)(6) and under the laws of the state of
16-26 domicile of the holder the property has escheated to or become
16-27 subject to a claim of abandonment by that state; or
17-1 (5) the property is the sum payable on a traveler's
17-2 check, money order, or other similar instrument that was subjected
17-3 to custody by this state under Subdivision (4) and the instrument
17-4 was purchased in the other state and under the laws of that state
17-5 the property escheated to or became subject to a claim of
17-6 abandonment by that state.
17-7 (b) The claim of another state to recover escheated or
17-8 abandoned property must be presented in a form prescribed by the
17-9 municipal treasurer, who shall decide the claim within 90 days
17-10 after it is presented. The municipal treasurer shall allow the
17-11 claim if he determines that the other state is entitled to the
17-12 abandoned property under Subsection (a).
17-13 Sec. 76.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY.
17-14 The municipal treasurer shall charge a person claiming unclaimed
17-15 property a handling fee if ownership of the property is reinstated
17-16 and the value of the property is $50 or more.
17-17 (Sections 76.510-76.600 reserved for expansion
17-18 SUBCHAPTER G. UNCLAIMED MONEY FUND
17-19 Sec. 76.601. FUND. (a) The municipal treasurer shall
17-20 maintain a fund known as the unclaimed money fund.
17-21 (b) The municipal treasurer shall deposit to the credit of
17-22 the fund:
17-23 (1) all funds, including marketable securities,
17-24 delivered to the municipal treasurer under this chapter or any
17-25 other statute requiring the delivery of unclaimed property to the
17-26 municipal treasurer;
17-27 (2) all proceeds from the sale of any property,
18-1 including marketable securities, under this chapter; and
18-2 (3) any income derived from investments of the fund.
18-3 (c) The municipal treasurer shall keep a separate record and
18-4 accounting for delivered unclaimed property, other than money,
18-5 before its sale.
18-6 (d) The municipal treasurer shall from time to time invest
18-7 the amount in the unclaimed money fund in investments approved by
18-8 law for the investment of municipal funds.
18-9 (e) The municipal treasurer may from time to time sell
18-10 securities in the fund, including stocks, bonds, and mutual funds,
18-11 and use the proceeds to buy, exchange, invest, or reinvest in
18-12 marketable securities. When making the investments, the municipal
18-13 treasurer shall exercise the judgment and care of a prudent person.
18-14 (f) The municipal treasurer shall keep a separate record and
18-15 accounting for securities delivered, sold, purchased, or exchanged
18-16 and the proceeds and earnings from the securities.
18-17 Sec. 76.602. USE OF FUND. (a) The municipal treasurer
18-18 shall use the unclaimed money fund to pay the claims of persons
18-19 establishing ownership of property in the possession of the
18-20 municipal treasurer under this chapter or under any other unclaimed
18-21 property or escheat statute.
18-22 (b) Each fiscal year after deducting funds sufficient to pay
18-23 anticipated expenses and claims of the unclaimed money fund, the
18-24 municipal treasurer shall transfer the remainder to the general
18-25 fund of the municipality.
18-26 (c) The municipal treasurer and the municipal attorney may
18-27 use the unclaimed money fund generally for the enforcement and
19-1 administration of this chapter, including the expenses of forms,
19-2 notices, examinations, travel, court costs, supplies, equipment,
19-3 employment of necessary personnel, and other necessary expenses.
19-4 Sec. 76.603. AUDIT; BUDGET. The unclaimed money fund is
19-5 subject to:
19-6 (1) audit by the municipal auditor or an independent
19-7 auditor in a municipality that does not have a municipal auditor;
19-8 and
19-9 (2) budgetary procedures adopted by the governing body
19-10 of the municipality.
19-11 (Sections 76.604-76.700 reserved for expansion
19-12 SUBCHAPTER H. ENFORCEMENT
19-13 Sec. 76.701. RULES. The municipal treasurer may adopt rules
19-14 necessary to carry out this chapter.
19-15 Sec. 76.702. EXAMINATION OF RECORDS. (a) To enforce this
19-16 chapter and to determine whether reports have been made as required
19-17 by this chapter, the municipal treasurer, at any reasonable time,
19-18 may examine the books and records of the holder.
19-19 (b) The municipal treasurer, municipal attorney, or an agent
19-20 of either person may not make public any information obtained by an
19-21 examination made under this section and may not disclose that
19-22 information except:
19-23 (1) in the course of a judicial proceeding authorized
19-24 by this chapter in which the municipality is a party; or
19-25 (2) pursuant to an agreement with another state
19-26 allowing joint audits or the exchange of information obtained under
19-27 this section.
20-1 Sec. 76.703. ADDITIONAL PERSONNEL. (a) The municipal
20-2 treasurer and the municipal attorney may employ, in the office of
20-3 either person, additional personnel necessary to enforce this
20-4 chapter.
20-5 (b) The salary rate of additional personnel may not exceed
20-6 the rate paid to other municipal employees for similar services.
20-7 (c) The salaries of additional personnel shall be paid in
20-8 accordance with Section 76.602.
20-9 Sec. 76.704. INTEREST, ATTORNEY'S FEES, AND PENALTIES.
20-10 (a) A person who fails to pay or deliver property within the time
20-11 prescribed by this chapter shall pay to the municipal treasurer
20-12 interest, at the judgment rate of interest as published by the
20-13 consumer credit commissioner in the Texas Register, on the property
20-14 or value of the property from the date the property should have
20-15 been paid or delivered until the date the property is actually paid
20-16 or delivered.
20-17 (b) If the municipal treasurer presents a claim for
20-18 unclaimed property to a person who fails timely to pay or deliver
20-19 the property and the just amount of unclaimed property owed has not
20-20 been tendered before the 31st day after the date the claim is
20-21 presented, the municipal treasurer may, on approval of a court of
20-22 competent jurisdiction, recover reasonable attorney's fees from the
20-23 person in addition to unclaimed property and interest due.
20-24 (c) A person commits an offense if the person:
20-25 (1) wilfully fails to file a report required by this
20-26 chapter;
20-27 (2) refuses to permit examination of records in
21-1 accordance with this chapter;
21-2 (3) makes a deduction from or a service charge against
21-3 a dormant account or dormant deposit of funds; or
21-4 (4) violates any other provision of this chapter.
21-5 (d) An offense under this section is punishable by:
21-6 (1) a fine of not less than $500 or more than $1,000;
21-7 (2) confinement in jail for a term not to exceed six
21-8 months; or
21-9 (3) both the fine and confinement.
21-10 (e) In addition to a criminal penalty, a person who commits
21-11 an offense under Subsection (c) is subject to a civil penalty not
21-12 to exceed $100 for each day of the violation. The municipal
21-13 attorney shall collect the civil penalty by bringing suit on behalf
21-14 of the municipality in a district court of the county in which the
21-15 municipality is located.
21-16 SECTION 3. (a) This Act takes effect September 1, 1998.
21-17 (b) The changes in law made by this Act apply only to
21-18 unclaimed property held by a holder, as that term is used in
21-19 Chapter 76, Property Code, as added by this Act, on or after June
21-20 30, 1998.
21-21 (c) Property held by a holder, as that term is used in
21-22 Chapter 76, Property Code, as added by this Act, on June 30, 1997,
21-23 is governed by the law as it existed immediately before the
21-24 effective date of this Act, and the former law is continued in
21-25 effect for that purpose.
21-26 SECTION 4. The importance of this legislation and the
21-27 crowded condition of the calendars in both houses create an
22-1 emergency and an imperative public necessity that the
22-2 constitutional rule requiring bills to be read on three several
22-3 days in each house be suspended, and this rule is hereby suspended.