AN ACT
1-1 relating to unclaimed property; providing penalties.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Sections 4 through 12 and 14 through 16, Article
1-4 4.08, Insurance Code, are amended to read as follows:
1-5 Sec. 4. REPORTS. Every such life insurance company shall on
1-6 or before the first day of November of each year make a report in
1-7 writing to the comptroller [State Treasurer of Texas] of all
1-8 unclaimed funds, as hereinbefore defined, held and owing by it on
1-9 the 30th day of June next preceding, provided, however, such report
1-10 shall not be required to include amounts which have been paid to
1-11 another state or jurisdiction under any escheat or unclaimed funds
1-12 law thereof. Such report shall be signed and sworn to by an
1-13 officer of such company and shall set forth: (1) in alphabetical
1-14 order the full name of the insured or annuitant, the last known
1-15 address according to the company's records, and the policy or
1-16 contract number; (2) the amount appearing from the company's
1-17 records to be due on such policy or contract; (3) the date such
1-18 unclaimed funds became payable; (4) the name and last known address
1-19 of each beneficiary or other person who, according to the company's
1-20 records, may have an interest in such unclaimed funds; and (5) such
1-21 other identifying information as the comptroller [State Treasurer]
1-22 may require; provided, however, that individual amounts of less
1-23 than $50 may be reported in the aggregate without furnishing any of
2-1 the information required in Clauses (1), (2), (3), (4), and (5) of
2-2 this Section. Each life insurance company required to file a
2-3 report under this Section shall maintain a record of the name and
2-4 last known address, if any, of the insured, annuitant, or
2-5 beneficiary, the policy or contract number, and the amount
2-6 appearing from the company's records to be due on the policy or
2-7 contract for 10 years after the funds are reportable, whether or
2-8 not the amount was reported in the aggregate under this Section.
2-9 The comptroller [State Treasurer] may provide by rule for a shorter
2-10 holding period for these records.
2-11 Sec. 5. NOTICE; PUBLICATION. (a) In the calendar year
2-12 following the submission of the reports required under Section 4 of
2-13 this Article and the payment to the comptroller [State Treasurer]
2-14 under Section 6 of this Article of all unclaimed funds described in
2-15 the report, the comptroller [State Treasurer] may cause to be
2-16 published notices based on the information contained in such
2-17 reports. Except as provided by Subsection (d) of this Section,
2-18 such a notice shall be published once in a newspaper published or
2-19 having a general circulation in each county of this state in which
2-20 is located the last known address of a person appearing to be
2-21 entitled to such funds.
2-22 (b) Each such notice shall set forth in alphabetical order
2-23 the names of the insureds or annuitants under policies or contracts
2-24 and the city of last known address, if any. The notice shall also
2-25 state that such unclaimed funds have been delivered to the
3-1 comptroller [State Treasurer] on the preceding November 1 and that
3-2 those funds may be claimed from the comptroller [State Treasurer].
3-3 (c) The publication requirements under Subchapter C, Chapter
3-4 74, Property Code, apply to publication of notice under this
3-5 section. [It shall not be obligatory upon the State Treasurer to
3-6 publish any item of less than Fifty Dollars ($50) in such notice,
3-7 unless the State Treasurer deems such publication to be in the
3-8 public interest. Expenses incurred for the publication of notice
3-9 may be charged against the funds delivered to the State Treasurer
3-10 under Section 6 of this Article.]
3-11 (d) The comptroller [State Treasurer] may use a method of
3-12 publishing notice that is different from that prescribed by
3-13 Subsection (a) of this Section if the comptroller [State Treasurer]
3-14 determines that the different method would be as likely as the
3-15 prescribed method to give actual notice to the person required to
3-16 be named in the notice.
3-17 Sec. 6. PAYMENT TO COMPTROLLER [STATE TREASURER]. All
3-18 unclaimed funds contained in the report required to be filed by
3-19 Section 4 of this Article shall be delivered to the comptroller
3-20 [State Treasurer] on or before November 1 with the report.
3-21 Sec. 7. CUSTODY OF UNCLAIMED FUNDS IN STATE; INSURERS
3-22 INDEMNIFIED. Upon the payment of such unclaimed funds to the
3-23 comptroller [State Treasurer] the state shall assume, for the
3-24 benefit of those entitled to receive the same and for the safety of
3-25 the money so paid, the custody of such unclaimed funds, and the
4-1 life insurance company making such payment shall immediately and
4-2 thereafter be relieved of and held harmless by the state from any
4-3 and all liability for any claim or claims which exist at such time
4-4 with reference to such unclaimed funds or which thereafter may be
4-5 made or may come into existence on account of or in respect to any
4-6 such unclaimed funds.
4-7 Sec. 8. INDEMNIFICATION FOR CLAIMS. (a) Any life insurance
4-8 company which in good faith has paid monies to the comptroller
4-9 [State Treasurer] pursuant to this Article is relieved of all
4-10 liability for a claim that exists at the time of delivery, that
4-11 arises after delivery to the comptroller [State Treasurer], or that
4-12 is made with respect to the property, to the extent of the value of
4-13 the property delivered.
4-14 (b) If a life insurance company in good faith delivers
4-15 property to the comptroller [State Treasurer] and after delivery a
4-16 person claims the property from the life insurance company or
4-17 another state claims the property under its laws relating to
4-18 escheat or unclaimed property, the attorney general shall, on
4-19 written notice of the claim, defend the life insurance company
4-20 against the claim. The life insurance company shall be indemnified
4-21 from the unclaimed money received [fund established] under Chapter
4-22 74 [Section 74.601], Property Code, or any other statute requiring
4-23 the delivery of unclaimed property to the comptroller, against any
4-24 liability on the claim.
4-25 Sec. 9. FUND ADMINISTRATION. Upon receipt of any unclaimed
5-1 funds from such life insurance companies [by the State Treasurer],
5-2 the comptroller [State Treasurer] shall deposit those funds in the
5-3 general revenue [unclaimed money fund established by Section
5-4 74.601, Property Code. Money in the unclaimed money] fund.
5-5 Unclaimed money received under Chapter 74, Property Code, or any
5-6 other statute requiring the delivery of unclaimed property to the
5-7 comptroller may be appropriated by the legislature to enforce and
5-8 administer this Article.
5-9 Sec. 10. DETERMINATION AND REVIEW OF CLAIMS. Any person
5-10 claiming to be entitled to unclaimed funds paid to the comptroller
5-11 [State Treasurer] may file a claim at any time with such official.
5-12 The comptroller [State Treasurer] shall possess full and complete
5-13 authority to accept or reject any such claim. If he rejects such
5-14 claim or fails to act thereon within ninety days after receipt of
5-15 such claim, the claimant may institute suit therefor in a court of
5-16 competent jurisdiction naming the comptroller [State Treasurer] as
5-17 defendant.
5-18 Sec. 11. PAYMENT OF ALLOWED CLAIMS. Any claim which is
5-19 accepted by the comptroller [State Treasurer] or ordered to be paid
5-20 by him by a court of competent jurisdiction shall be paid out of
5-21 the unclaimed money received under Chapter 74, Property Code, or
5-22 any other statute requiring the delivery of unclaimed property to
5-23 the comptroller [special trust fund in his custody, or in the event
5-24 such special trust fund shall be insufficient, out of the general
5-25 funds of the state].
6-1 Sec. 12. RECORDS REQUIRED. The comptroller [State
6-2 Treasurer] shall keep in his office a public record of each payment
6-3 of unclaimed funds received by him from any life insurance company.
6-4 Except as to amounts reported in the aggregate, such record shall
6-5 show in alphabetical order the name and last known address of each
6-6 insured or annuitant, and of each beneficiary or other person who,
6-7 according to the company's reports, may have an interest in such
6-8 unclaimed funds, and with respect to each policy or contract, its
6-9 number, the name of the company, and the amount due.
6-10 Sec. 14. ENFORCEMENT. This Article shall be enforced in the
6-11 manner provided for enforcement of Chapter 74, Property Code, under
6-12 Subchapter H of that chapter. [INTEREST, ATTORNEY'S FEES, AND
6-13 PENALTIES. (a) A person who fails to pay or deliver property
6-14 within the time prescribed by this Article shall pay to the State
6-15 Treasurer interest, at the judgment rate of interest as published
6-16 by the consumer credit commissioner in the Texas Register, on the
6-17 property or value of the property from the date the property should
6-18 have been paid or delivered until the date the property is actually
6-19 paid or delivered.]
6-20 [(b) If the State Treasurer presents a claim for unclaimed
6-21 property to a person who fails timely to pay or deliver the
6-22 property and the just amount of the unclaimed property owed has not
6-23 been tendered before the 31st day after the date the claim is
6-24 presented, the State Treasurer may, on approval of a court of
6-25 competent jurisdiction in Travis County, recover reasonable
7-1 attorney's fees from the person in addition to unclaimed property
7-2 and interest due.]
7-3 [(c) Any person who wilfully fails to file a report required
7-4 by this Article, or who violates any of the other terms and
7-5 provisions of this Article shall be punished by a fine not less
7-6 than Five Hundred Dollars ($500.00), nor more than One Thousand
7-7 Dollars ($1000.00), or by confinement for not more than six months
7-8 in the county jail, or both, and in addition, shall be subject to
7-9 civil penalties of not exceeding One Hundred Dollars ($100.00) for
7-10 each day of such wilful failure or refusal, said civil penalties to
7-11 be collected by suit in a District Court of Travis County, Texas,
7-12 by the Attorney General in the name of the State of Texas.]
7-13 Sec. 15. RULES. The comptroller [State Treasurer] may adopt
7-14 rules necessary to carry out this Article.
7-15 Sec. 16. EXAMINATION OF RECORDS. The comptroller [State
7-16 Treasurer] may examine the records of a life insurance company to
7-17 determine if the life insurance company is complying with this
7-18 Article. The comptroller [State Treasurer] may not make public any
7-19 information obtained by an examination made under this Section.
7-20 SECTION 2. Section 117.002, Local Government Code, is
7-21 amended to read as follows:
7-22 Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER
7-23 [STATE TREASURER]. Any funds deposited under this chapter that are
7-24 presumed abandoned under Chapter 72, 73, or 75, Property Code,
7-25 shall be reported and delivered by the county or district clerk to
8-1 the comptroller [state treasurer] without further action by any
8-2 court. The dormancy period for funds deposited under this chapter
8-3 begins on the later of:
8-4 (1) the date of entry of final judgment or order of
8-5 dismissal in the action in which the funds were deposited;
8-6 (2) the 18th birthday of the minor for whom the funds
8-7 were deposited; or
8-8 (3) a reasonable date established by rule by the
8-9 comptroller [state treasurer] to promote the public interest in
8-10 disposing of unclaimed funds.
8-11 SECTION 3. Section 381.004, Local Government Code, is
8-12 amended by adding Subsection (e) to read as follows:
8-13 (e) The legislature may appropriate unclaimed money the
8-14 comptroller receives under Chapter 74, Property Code, for a county
8-15 to use in carrying out a program established under this section.
8-16 To receive money for that purpose for any fiscal year, the county
8-17 must request the money for that fiscal year. The amount a county
8-18 may receive under this subsection for a fiscal year may not exceed
8-19 an amount equal to the value of the capital credits the comptroller
8-20 receives from an electric cooperative corporation on behalf of the
8-21 corporation's members in the county requesting the money less an
8-22 amount sufficient to pay anticipated expenses and claims. The
8-23 comptroller shall transfer money in response to a request after
8-24 deducting the amount the comptroller determines to be sufficient to
8-25 pay anticipated expenses and claims.
9-1 SECTION 4. Subsection (a), Section 71.101, Property Code, is
9-2 amended to read as follows:
9-3 (a) If any person, including the attorney general, the
9-4 comptroller [State Treasurer], or a district attorney, criminal
9-5 district attorney, county attorney, county clerk, district clerk,
9-6 or attorney ad litem is informed or has reason to believe that real
9-7 or personal property is subject to escheat under this chapter, the
9-8 person may file a sworn petition requesting the escheat of the
9-9 property and requesting a writ of possession for the property.
9-10 SECTION 5. Subsection (c), Section 71.103, Property Code, is
9-11 amended to read as follows:
9-12 (c) The comptroller [State Treasurer] is an indispensable
9-13 party to any judicial or administrative proceeding concerning the
9-14 disposition and handling of property that is the subject of an
9-15 escheat proceeding and must be made a party to the proceeding by
9-16 personal service of citation.
9-17 SECTION 6. Subsection (c), Section 71.301, Property Code, is
9-18 amended to read as follows:
9-19 (c) A copy of the petition shall be served on the
9-20 comptroller [State Treasurer], who shall represent the interests of
9-21 the state. As the comptroller [State Treasurer] elects and with
9-22 the approval of the attorney general, the attorney general, the
9-23 county attorney or criminal district attorney for the county, or
9-24 the district attorney for the district shall represent the
9-25 comptroller [State Treasurer].
10-1 SECTION 7. Subsection (a), Section 71.304, Property Code, is
10-2 amended to read as follows:
10-3 (a) A suit brought for the collection of personal property
10-4 delivered to the comptroller [State Treasurer] under this chapter
10-5 must be brought in the name of this state.
10-6 SECTION 8. Subsections (b) and (c), Section 72.102, Property
10-7 Code, are amended to read as follows:
10-8 (b) A traveler's check to which Subsection (a) applies is
10-9 presumed to be abandoned on the latest of:
10-10 (1) the 15th anniversary of the date on which the
10-11 check was issued;
10-12 (2) the 15th anniversary of the date on which the
10-13 issuer of the check last received from the owner of the check
10-14 [written] communication concerning the check; or
10-15 (3) the 15th anniversary of the date of the last
10-16 writing, on file with the issuer, that indicates the owner's
10-17 interest in the check.
10-18 (c) A money order to which Subsection (a) applies is
10-19 presumed to be abandoned on the latest of:
10-20 (1) the fifth anniversary of the date on which the
10-21 money order was issued;
10-22 (2) the fifth anniversary of the date on which the
10-23 issuer of the money order last received from the owner of the money
10-24 order [written] communication concerning the money order; or
10-25 (3) the fifth anniversary of the date of the last
11-1 writing, on file with the issuer, that indicates the owner's
11-2 interest in the money order.
11-3 SECTION 9. Section 72.103, Property Code, is amended to read
11-4 as follows:
11-5 Sec. 72.103. PRESERVATION OF PROPERTY. Notwithstanding any
11-6 other provision of this title, a [A] holder of abandoned property
11-7 shall preserve the property and may not at any time, by any
11-8 procedure, including a deduction for service, maintenance, or other
11-9 charge, transfer or[,] convert to the profits or assets of the
11-10 holder[,] or otherwise reduce the value of the property. For
11-11 purposes of this section, value is determined as of the date of the
11-12 last transaction or contact concerning the property [to the profits
11-13 or assets of the holder].
11-14 SECTION 10. The heading to Chapter 73, Property Code, is
11-15 amended to read as follows:
11-16 CHAPTER 73. PROPERTY [INACTIVE ACCOUNTS] HELD BY
11-17 FINANCIAL INSTITUTIONS [BANKING ORGANIZATIONS]
11-18 SECTION 11. Subsection (a), Section 73.001, Property Code,
11-19 is amended by amending Subdivision (1) and adding Subdivision (5)
11-20 to read as follows:
11-21 (1) "Account" means funds deposited with a depository
11-22 in an interest-bearing account, a checking[, interest,] or savings
11-23 account.
11-24 (5) "Check" includes a draft, cashier's check,
11-25 certified check, registered check, or similar instrument.
12-1 SECTION 12. Subsections (c) and (d), Section 73.001,
12-2 Property Code, are amended to read as follows:
12-3 (c) Any property, other than an account, check, or safe
12-4 deposit box, held by a depository is subject to the abandonment
12-5 provisions of Chapter 72.
12-6 (d) A holder of accounts, checks, or safe deposit boxes
12-7 presumed abandoned under this chapter is subject to the procedures
12-8 of Chapter 74.
12-9 SECTION 13. Sections 73.002 and 73.003, Property Code, are
12-10 amended to read as follows:
12-11 Sec. 73.002. DEPOSITORY. For the purposes of this chapter,
12-12 a depository is a bank, savings and loan association, credit union,
12-13 or other banking organization that:
12-14 (1) receives and holds a deposit of money or the
12-15 equivalent of money in banking practice or other personal property
12-16 in this state; or
12-17 (2) receives and holds such a deposit or other
12-18 personal property in another state for a person whose last known
12-19 residence is in this state.
12-20 Sec. 73.003. PRESERVATION OF INACTIVE ACCOUNT OR SAFE
12-21 DEPOSIT BOX. (a) A depository shall preserve an account that is
12-22 inactive and the contents of a safe deposit box that is inactive.
12-23 The depository may not, at any time, by any procedure, including
12-24 the imposition of a service charge, transfer or[,] convert to the
12-25 profits or assets of the depository[,] or otherwise reduce the
13-1 value of the [such an] account or the contents of such a box. For
13-2 purposes of this subsection, value is determined as of the date the
13-3 account or safe deposit box becomes inactive [to the profits or
13-4 assets of the depository].
13-5 (b) An account is inactive if for more than one year there
13-6 has not been a debit or credit to the account because of an act by
13-7 the depositor or an agent of the depositor, other than the
13-8 depository, and the depositor has not communicated with the
13-9 depository. A safe deposit box is inactive if the rental on the
13-10 box is delinquent [for more than one year].
13-11 (c) This section does not affect the provisions of
13-12 Subchapter B, Chapter 8, Texas Banking Act (Article 342-8.101 et
13-13 seq., Vernon's Texas Civil Statutes).
13-14 [(d) For purposes of presumption of abandonment under
13-15 Section 73.101, the five-year period of inactivity for accounts
13-16 begins on the date of the last transaction or correspondence by the
13-17 depositor. The five-year period of inactivity of safe deposit
13-18 boxes begins on the date the rental was due but not paid.]
13-19 SECTION 14. Section 73.101, Property Code, is amended to
13-20 read as follows:
13-21 Sec. 73.101. INACTIVE ACCOUNT OR SAFE DEPOSIT BOX PRESUMED
13-22 ABANDONED. (a) An account or safe deposit box is presumed
13-23 abandoned if:
13-24 (1) the account or safe deposit box has been inactive
13-25 [under Section 73.003(b)] for at least five years as determined
14-1 under Subsection (b);
14-2 (2) the location of the depositor of the account or
14-3 owner of the safe deposit box is unknown to the depository; and
14-4 (3) the amount of the account or the contents of the
14-5 box have not been delivered to the comptroller [State Treasurer] in
14-6 accordance with Chapter 74.
14-7 (b) For purposes of Subsection (a)(1):
14-8 (1) an account becomes inactive beginning on the date
14-9 of the depositor's last transaction or correspondence concerning
14-10 the account; and
14-11 (2) a safe deposit box becomes inactive beginning on
14-12 the date a rental was due but not paid. [To satisfy the five-year
14-13 period of inactivity required by Subdivision (1) of Subsection (a),
14-14 the account or safe deposit box must have been inactive for a
14-15 continuous period beginning not later than June 30 of the fifth
14-16 year preceding the year in which the report is filed under Chapter
14-17 74.]
14-18 SECTION 15. Subchapter B, Chapter 73, Property Code, is
14-19 amended by adding Section 73.102 to read as follows:
14-20 Sec. 73.102. CHECKS. A check is presumed to be abandoned on
14-21 the latest of:
14-22 (1) the third anniversary of the date the check was
14-23 payable;
14-24 (2) the third anniversary of the date the issuer or
14-25 payor of the check last received documented communication from the
15-1 payee of the check; or
15-2 (3) the third anniversary of the date the check was
15-3 issued if, according to the knowledge and records of the issuer or
15-4 payor of the check, during that period, a claim to the check has
15-5 not been asserted or an act of ownership by the payee has not been
15-6 exercised.
15-7 SECTION 16. Section 74.001, Property Code, is amended to
15-8 read as follows:
15-9 Sec. 74.001. APPLICABILITY. (a) Except as provided by
15-10 Subsection (b), this [This] chapter applies to a holder of property
15-11 that is presumed abandoned under Chapter 72, Chapter 73, or Chapter
15-12 75.
15-13 (b) This chapter does not apply to a holder of property
15-14 subject to Chapter 76.
15-15 SECTION 17. Subsections (a) and (c), Section 74.101,
15-16 Property Code, are amended to read as follows:
15-17 (a) Each holder who on June 30 holds property that is
15-18 presumed abandoned under Chapter 72, [Chapter] 73, or [Chapter] 75,
15-19 or under [Section 5A,] Chapter 512, Acts of the 54th Legislature,
15-20 1955 (Article 548b, Vernon's Texas Civil Statutes), shall file a
15-21 report of that property on or before the following November 1. The
15-22 comptroller may require the report to be in a particular format,
15-23 including a format that can be read by a computer. [Each report
15-24 shall be filed with the State Treasurer as provided by this section
15-25 and on forms prescribed by the State Treasurer.]
16-1 (c) The property report must include:
16-2 (1) the name and social security number, if known, and
16-3 the last known address, if any, of each person who, from the
16-4 records of the holder of the property, appears to be the owner of
16-5 the property, or the name and address, if known, of any person who
16-6 is entitled to the property;
16-7 (2) a [brief] description of the property, the
16-8 identification number, if any, and, if appropriate, a balance of
16-9 each account, except as provided by Subsection (d) [(e)];
16-10 (3) the date that the property became payable,
16-11 demandable, or returnable;
16-12 (4) the date of the last transaction with the owner
16-13 concerning the property; and
16-14 (5) [any deduction made by the holder of the property
16-15 for a service, maintenance, or other charge, unless fully restored
16-16 and included in the amount reported; and]
16-17 [(6)] other information that the comptroller [State
16-18 Treasurer] by rule requires to be disclosed as necessary for the
16-19 administration of this chapter.
16-20 SECTION 18. Section 74.102, Property Code, is amended to
16-21 read as follows:
16-22 Sec. 74.102. VERIFICATION. (a) The person preparing a
16-23 property report shall provide with [place at the end of] each copy
16-24 of the report a verification made under oath and executed by:
16-25 (1) the individual holding the reported property;
17-1 (2) a partner, if the holder is a partnership;
17-2 (3) an officer, if the holder is an unincorporated
17-3 association or a private corporation; or
17-4 (4) the chief fiscal officer, if the holder is a
17-5 public corporation.
17-6 (b) The verification must include the following sentence:
17-7 "This [The foregoing] report contains a full and complete
17-8 list of all property held by the undersigned that, from the
17-9 knowledge and records of the undersigned, is abandoned under the
17-10 laws of the State of Texas."
17-11 SECTION 19. Subsections (a) and (c), Section 74.103,
17-12 Property Code, are amended to read as follows:
17-13 (a) A holder required to file a property report under
17-14 Section 74.101 shall keep a record of:
17-15 (1) the name, the social security number, if known,
17-16 and the last known address of each person who, from the records of
17-17 the holder of the property, appears to be the owner of the
17-18 property;
17-19 (2) a brief description of the property, including the
17-20 identification number, if any; and
17-21 (3) the balance of each account, if appropriate.
17-22 (c) The comptroller [State Treasurer] may by rule provide
17-23 for a shorter period for keeping a record required by this section.
17-24 SECTION 20. Section 74.104, Property Code, is amended to
17-25 read as follows:
18-1 Sec. 74.104. CONFIDENTIALITY OF PROPERTY REPORT.
18-2 (a) Except as provided by Section [Sections] 74.201, 74.203, or
18-3 [and] 74.307, a property report filed with the comptroller [State
18-4 Treasurer] under Section 74.101 is confidential until the second
18-5 anniversary of the date the report is filed.
18-6 (b) The [Notwithstanding any other provision of law, the]
18-7 social security number of an owner that is provided [reported] to
18-8 the comptroller [State Treasurer] is confidential.
18-9 SECTION 21. Sections 74.201, 74.202, and 74.203, Property
18-10 Code, are amended to read as follows:
18-11 Sec. 74.201. REQUIRED [PUBLISHED] NOTICE. (a) Except as
18-12 provided by [Subsection (b) and] Section 74.202, the comptroller
18-13 may use one or more methods as necessary to provide the most
18-14 efficient and effective notice to each reported owner [State
18-15 Treasurer shall publish a notice in a newspaper of general
18-16 circulation] in the calendar year immediately following the year in
18-17 which the report required by Section 74.101 is filed. The notice
18-18 must be provided [published]:
18-19 (1) in the county of the property owner's [in which
18-20 the] last known address [of a person required to be named in the
18-21 notice is located]; or
18-22 (2) [if the address of a person listed is not set out
18-23 in the report or if it is outside the state,] in the county in
18-24 which the holder [of the abandoned property] has its principal
18-25 place of business or its[,] registered office[, or agent] for
19-1 service in this state, if the property owner's last address is
19-2 unknown.
19-3 (b) [The State Treasurer may use a method of publishing
19-4 notice that is different from that prescribed by Subsection (a)(1)
19-5 or (2) if the State Treasurer determines that the different method
19-6 would be as likely as the prescribed method to give actual notice
19-7 to the person required to be named in the notice.]
19-8 [(c)] The [published] notice must state that the reported
19-9 property is presumed abandoned and subject to this chapter and must
19-10 contain:
19-11 (1) the name and city of last known address of the
19-12 reported owner[, if any, of each person listed in the property
19-13 report filed under Section 74.101, listed alphabetically by name];
19-14 (2) a statement that, by [addressing an] inquiry [to
19-15 the State Treasurer], any person possessing a legal or beneficial
19-16 interest in the reported property may obtain information concerning
19-17 the amount and description of the property; and
19-18 (3) a statement that the person [owner] may present
19-19 proof of the claim [to the State Treasurer] and establish the
19-20 person's [owner's] right to receive the property.
19-21 (d) The comptroller [State Treasurer] may offer for sale
19-22 space for suitable advertisements in a notice published under this
19-23 section. [Proceeds from the sale of the advertising space shall be
19-24 used to defray the cost of publishing the notices, with the
19-25 remaining amount, if any, to be deposited to the credit of the
20-1 unclaimed money fund.]
20-2 Sec. 74.202. NOTICE FOR ITEM WITH VALUE OF LESS THAN $100
20-3 [NOT EXCEEDING $50]. In the notice required by Section 74.201, the
20-4 comptroller [State Treasurer] is not required to publish
20-5 information regarding an item having a value that is less than $100
20-6 [$50] unless the comptroller [State Treasurer] determines that
20-7 publication of that information is in the public interest.
20-8 Sec. 74.203. AUTHORIZED NOTICE [TO OWNER]. (a) During the
20-9 calendar year immediately following the year in which the report
20-10 required by Section 74.101 is filed, [the State Treasurer may mail
20-11 a] notice may be mailed to each person who has been reported with a
20-12 Texas address and appears to be entitled to the reported property
20-13 [valued at $50 or more].
20-14 (b) The notice under Subsection (a) must conform to the
20-15 requirements for notice under Section 74.201(b) [must contain:]
20-16 [(1) a statement that property is being held by the
20-17 State Treasurer to which the addressee appears to be entitled; and]
20-18 [(2) a statement that the owner may present proof of
20-19 the claim to the State Treasurer and establish the owner's right to
20-20 receive the property].
20-21 SECTION 22. Sections 74.205 and 74.301, Property Code, are
20-22 amended to read as follows:
20-23 Sec. 74.205. CHARGE FOR NOTICE. The comptroller [State
20-24 Treasurer] may charge the following against the property delivered
20-25 under this chapter:
21-1 (1) expenses incurred for the publication of notice
21-2 required by Section 74.201; and
21-3 (2) the amount paid in postage for the notice to the
21-4 owner required by Section 74.203.
21-5 Sec. 74.301. DELIVERY OF PROPERTY TO COMPTROLLER [STATE
21-6 TREASURER]. (a) Except as provided by Subsection (c), each [Each]
21-7 holder who on June 30 holds property that is presumed abandoned
21-8 under Chapter 72, [Chapter] 73, or [Chapter] 75 shall deliver the
21-9 property to the comptroller [State Treasurer] on or before the
21-10 following November 1 accompanied by the report required to be filed
21-11 under Section 74.101.
21-12 (b) If the property subject to delivery under Subsection (a)
21-13 is stock or some other intangible ownership interest in a business
21-14 association for which there is no evidence of ownership, the holder
21-15 shall issue a duplicate certificate or other evidence of ownership
21-16 to the comptroller [State Treasurer] at the time delivery is
21-17 required under this section.
21-18 (c) If the property subject to delivery under Subsection (a)
21-19 is the contents of a safe deposit box, the comptroller may instruct
21-20 a holder to deliver the property on a specified date after November
21-21 1 but before June 1 of the following year.
21-22 SECTION 23. Subsections (c), (e), and (g), Section 74.3011,
21-23 Property Code, are amended to read as follows:
21-24 (c) A local telephone exchange company shall file with the
21-25 comptroller [state treasurer] a verification of money delivered
22-1 under this section that complies with Section 74.302.
22-2 (e) The comptroller [state treasurer] shall prescribe forms
22-3 and procedures governing this section, including forms and
22-4 procedures relating to:
22-5 (1) notice of presumed abandoned property;
22-6 (2) delivery of reported money to a scholarship fund;
22-7 and
22-8 (3) filing of a claim.
22-9 (g) During a state fiscal year, the total amount of money
22-10 that may be transferred by all local telephone exchange companies
22-11 under this section may not exceed $400,000. The comptroller [state
22-12 treasury] shall keep a record of the total amount of money
22-13 transferred annually. When the total amount of money transferred
22-14 during a state fiscal year equals the amount allowed by this
22-15 subsection, the comptroller [treasury] shall notify each local
22-16 telephone exchange company that the company may not transfer any
22-17 additional money to the company's scholarship fund during the
22-18 remainder of that state fiscal year.
22-19 SECTION 24. Subsections (a), (e), and (g), Section 74.3012,
22-20 Property Code, are amended to read as follows:
22-21 (a) Notwithstanding and in addition to any other provision
22-22 of this chapter or other law, a local exchange company may deliver
22-23 reported money to a scholarship fund for urban students instead of
22-24 delivering the money to the comptroller [state treasurer] as
22-25 prescribed by Section 74.301.
23-1 (e) The comptroller [state treasurer] shall prescribe forms
23-2 and procedures governing this section, including forms and
23-3 procedures relating to:
23-4 (1) notice of presumed abandoned property;
23-5 (2) delivery of reported money to a scholarship fund;
23-6 and
23-7 (3) filing of a claim.
23-8 (g) [During the 1995-1996 fiscal year, the total amount of
23-9 money that may be transferred by all local exchange companies under
23-10 this section may not exceed $400,000.] During each [subsequent]
23-11 state fiscal year, the total amount of money that may be
23-12 transferred by all local exchange companies under this section may
23-13 not exceed the total amount of money transferred to rural
23-14 scholarship funds under Section 74.3011 during the previous state
23-15 fiscal year. The comptroller [state treasury] shall keep a record
23-16 of the total amount of money transferred annually. If the total
23-17 amount of money transferred during a state fiscal year equals the
23-18 amount allowed by this subsection, the comptroller [treasury] shall
23-19 notify each local exchange company that the company may not
23-20 transfer any additional money to the company's scholarship fund
23-21 during the remainder of that state fiscal year.
23-22 SECTION 25. Subchapter D, Property Code, is amended by
23-23 amending Sections 74.304, 74.306, 74.307, and 74.308 and adding
23-24 Section 74.3061 to read as follows:
23-25 Sec. 74.304. RESPONSIBILITY AFTER DELIVERY. (a) If
24-1 reported property is delivered to the comptroller, [State
24-2 Treasurer] the state shall assume custody of the property and
24-3 responsibility for its safekeeping.
24-4 (b) A holder who delivers property to the comptroller [State
24-5 Treasurer] in good faith is relieved of all liability to the extent
24-6 of the value of the property delivered for any claim then existing,
24-7 that may arise after delivery to the comptroller [State Treasurer],
24-8 or that may be made with respect to the property.
24-9 (c) If the holder delivers property to the comptroller
24-10 [State Treasurer] in good faith and, after delivery, a person
24-11 claims the property from the holder or another state claims the
24-12 property under its laws relating to escheat or unclaimed property,
24-13 the attorney general shall, on written notice of the claim, defend
24-14 the holder against the claim, and the holder shall be indemnified
24-15 from the unclaimed money received under this chapter or any other
24-16 statute requiring delivery of unclaimed property to the comptroller
24-17 [fund established in Section 74.601] against any liability on the
24-18 claim.
24-19 (d) The comptroller [State Treasurer] is not, in the absence
24-20 of negligence or mishandling of the property, liable to the person
24-21 who claims the property for damages incurred while the property or
24-22 the proceeds from the sale of the property are in the comptroller's
24-23 [treasurer's] possession. But in any event the liability of the
24-24 state is limited to the extent of the property delivered under this
24-25 chapter and remaining in the possession of the comptroller [State
25-1 Treasurer] at the time a suit is filed.
25-2 (e) For the purposes of this section, payment or delivery is
25-3 made in good faith if:
25-4 (1) payment or delivery was made in a reasonable
25-5 attempt to comply with this chapter;
25-6 (2) the holder [person] delivering the property was
25-7 not a fiduciary then in breach of trust with respect to the
25-8 property and had a reasonable basis for believing based on the
25-9 facts then known to the holder [person] that the property was
25-10 abandoned or inactive for purposes of this chapter; and
25-11 (3) there is no showing that the records under which
25-12 the delivery was made did not meet reasonable commercial standards
25-13 of practice in the industry.
25-14 (f) On delivery of a duplicate certificate or other evidence
25-15 of ownership to the comptroller [State Treasurer] under Subsection
25-16 (b) of Section 74.301, the holder and any transfer agent,
25-17 registrar, or other person acting for or on behalf of a holder in
25-18 executing or delivering the duplicate certificate are relieved of
25-19 all liability of every kind in accordance with this section to any
25-20 person, including any person acquiring the original certificate or
25-21 the duplicate of the certificate issued to the comptroller [State
25-22 Treasurer], for any losses or damages resulting to any person by
25-23 the issuance and delivery to the comptroller [State Treasurer] of
25-24 the duplicate certificate.
25-25 Sec. 74.306. UNCLAIMED PROPERTY HELD BY FEDERAL GOVERNMENT.
26-1 (a) If the federal government enacts a law that provides for the
26-2 discovery of unclaimed property held by the federal government and
26-3 that provides or makes that information available to the states,
26-4 the comptroller [State Treasurer] may pay to the federal government
26-5 from the unclaimed money received under this chapter or any other
26-6 statute requiring the delivery of unclaimed property to the
26-7 comptroller [fund] the proportional share of the necessary cost of
26-8 examining records.
26-9 (b) If the federal government delivers unclaimed property to
26-10 the comptroller [State Treasurer], this state shall hold the
26-11 federal government harmless from claims made by owners of the
26-12 property after the delivery.
26-13 Sec. 74.3061. ESCHEAT OF FUNDS IN THE POSSESSION OF THE
26-14 UNITED STATES. (a) In the event any money is due to a resident of
26-15 this state in the nature of a refund, rebate, or other overpayment
26-16 of taxes or fees to the United States with respect to which the
26-17 resident is likely to have his rights to secure such refund or
26-18 rebate barred by a statute of limitations, or if for any reason at
26-19 least three years has elapsed after the date on which the resident
26-20 could have filed a timely claim for said refund or rebate, the
26-21 comptroller is appointed agent of such resident to apply for said
26-22 refund or rebate and is authorized to do any act which a natural
26-23 person could do to recover said money. When the comptroller files
26-24 an application or initiates any other proceeding to secure said
26-25 refund or rebate, the comptroller is coupled with an interest in
27-1 the money sought and money recovered. All property within this
27-2 provision, including all principal and interest accruing thereon,
27-3 is declared to have escheated and to have become the property of
27-4 the state.
27-5 (b) The funds escheated by the state pursuant to this
27-6 provision shall be given notice as provided by Section 74.201.
27-7 Title to any such property shall be transferred by the state to any
27-8 persons who in accordance with Subchapter F can show that the
27-9 property belonged to them immediately prior to the escheat or that
27-10 they were heirs to those funds immediately prior to the escheat.
27-11 Sec. 74.307. LIST OF OWNERS. (a) The comptroller [State
27-12 Treasurer] shall compile and revise each year, except as to amounts
27-13 reported in the aggregate, an alphabetical list of the names and
27-14 last known addresses of the owners listed in the reports and the
27-15 amount credited to each account.
27-16 (b) The comptroller [State Treasurer] shall make the list
27-17 available for public inspection during all reasonable business
27-18 hours.
27-19 Sec. 74.308. PERIOD OF LIMITATION NOT A BAR. The
27-20 expiration, on or after September 1, 1987, of any period specified
27-21 by contract, statute, or court order, during which an action or
27-22 proceeding may be initiated or enforced to obtain payment of a
27-23 claim for money or recovery of property, does not prevent the money
27-24 or property from being presumed abandoned property and does not
27-25 affect any duty to file a report required by this chapter or to pay
28-1 or deliver abandoned property to the comptroller [State Treasurer].
28-2 SECTION 26. Sections 74.401 and 74.402, Property Code, are
28-3 amended to read as follows:
28-4 Sec. 74.401. SALE OF PROPERTY. (a) Except as provided by
28-5 Subsection (c), the comptroller [State Treasurer] shall sell at
28-6 public sale all personal property, other than money and marketable
28-7 securities, delivered to the comptroller [State Treasurer] in
28-8 accordance with Section 74.301. The comptroller [State Treasurer]
28-9 shall conduct the sale in the city in this state that the
28-10 comptroller [State Treasurer] determines affords the most favorable
28-11 market for the particular property.
28-12 (b) The comptroller [State Treasurer] shall sell the
28-13 property to the highest bidder. If the comptroller [State
28-14 Treasurer] determines that the highest bid is insufficient, the
28-15 comptroller [State Treasurer] may decline that bid and offer the
28-16 property for public or private sale.
28-17 (c) The comptroller [State Treasurer] is not required to
28-18 offer property for sale if the property belongs to a person with an
28-19 address outside this state or the comptroller [State Treasurer]
28-20 determines that the probable cost of the sale of the property
28-21 exceeds its value.
28-22 (d) If after investigation the comptroller [State Treasurer]
28-23 determines that property delivered from a safe deposit box or other
28-24 repository has insubstantial commercial value, the comptroller
28-25 [State Treasurer] may destroy or otherwise dispose of the property
29-1 at any time.
29-2 (e) A person may not maintain any action or proceeding
29-3 against the state, an officer of the state, or the holder of
29-4 property because of an action taken by the comptroller [State
29-5 Treasurer] under this section.
29-6 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
29-7 the day on which a public sale is held under Section 74.401, the
29-8 comptroller [State Treasurer] shall publish notice of the sale in a
29-9 newspaper of general circulation in the county where the sale is to
29-10 be held.
29-11 SECTION 27. Subsection (b), Section 74.403, Property Code,
29-12 is amended to read as follows:
29-13 (b) The comptroller [State Treasurer] shall execute all
29-14 documents necessary to complete the transfer of title.
29-15 SECTION 28. Sections 74.501 and 74.502, Property Code, are
29-16 amended to read as follows:
29-17 Sec. 74.501. [FILING OF] CLAIM FILED WITH COMPTROLLER.
29-18 (a) The comptroller shall review the validity of each claim filed
29-19 under this section. [Except as provided by Subsection (b), a claim
29-20 for property or proceeds from the sale of property delivered to the
29-21 State Treasurer under this chapter, including claims by other
29-22 states, must be filed with the State Treasurer.]
29-23 (b) If the comptroller determines that a claim is valid, the
29-24 comptroller or the comptroller's authorized agent shall approve [a
29-25 claim is for inactive property that was held by a depository before
30-1 being delivered to the State Treasurer,] the claim [may be filed
30-2 with the depository under Section 74.502]. If the claim is for
30-3 money and has been approved under this section, the comptroller
30-4 shall pay the claim. If a claim is for personal property other
30-5 than money and has been approved under this section, the
30-6 comptroller shall deliver the property to the claimant unless the
30-7 comptroller has sold the property. If the property has been sold
30-8 under Section 74.401, the comptroller shall pay to the claimant the
30-9 proceeds from the sale.
30-10 (c) All claims to which this section applies must be filed
30-11 in accordance with procedures, contain the information, and be on
30-12 forms prescribed by the comptroller [State Treasurer].
30-13 Sec. 74.502. CLAIM FILED WITH HOLDER [DEPOSITORY]. (a) [If
30-14 inactive property held by a depository under Chapter 73 is
30-15 delivered to the State Treasurer under Section 74.301, a claim may
30-16 be filed with the depository except that any claim by another state
30-17 must be filed with the State Treasurer. The State Treasurer shall
30-18 prescribe forms and procedures for filing claims with depositories.]
30-19 [(b)] If a claim is filed with a holder [depository] under
30-20 this section and the holder [depository] determines in good faith
30-21 that the claim is valid, the holder [depository] may pay the amount
30-22 of the claim.
30-23 (b) The comptroller shall reimburse the holder for a valid
30-24 claim paid under this section.
30-25 (c) The request from a holder for reimbursement must be
31-1 filed in accordance with procedures and on forms prescribed by the
31-2 comptroller. [If the amount paid under Subsection (b) is $100 or
31-3 less, the State Treasurer shall reimburse the depository on receipt
31-4 of a written statement subscribed and sworn to by an officer of the
31-5 depository that states:]
31-6 [(1) the name and address of the person to whom
31-7 payment was made; and]
31-8 [(2) that the depository believes in good faith that
31-9 the claim is valid.]
31-10 [(d) If the amount paid under Subsection (b) is more than
31-11 $100, the State Treasurer shall examine the claim and any
31-12 supporting affidavit or evidence of the claim. Before the State
31-13 Treasurer may reimburse a depository for a claim under this
31-14 subsection, the claim must be approved and signed by the State
31-15 Treasurer.]
31-16 SECTION 29. Section 74.504, Property Code, is amended to
31-17 read as follows:
31-18 Sec. 74.504. HEARING. (a) The comptroller [State
31-19 Treasurer] may hold a hearing and receive evidence concerning a
31-20 claim filed under this subchapter.
31-21 (b) If the comptroller [State Treasurer] considers that a
31-22 hearing is necessary to determine the validity of a claim, the
31-23 comptroller [State Treasurer] shall sign the statement of the
31-24 findings and the decision on the claim. The statement shall report
31-25 the substance of the evidence heard and the reasons for the
32-1 decision. The statement is a public record.
32-2 (c) If the comptroller [State Treasurer] determines that a
32-3 claim is valid, the comptroller [State Treasurer] shall approve and
32-4 sign the claim.
32-5 SECTION 30. Subsection (c), Section 74.506, Property Code,
32-6 is amended to read as follows:
32-7 (c) An appeal under this section must be made by filing suit
32-8 against the state in a district court in Travis County, Texas[, or
32-9 in the county in which the claimed funds were deposited]. The
32-10 state's immunity from suit without consent is abolished with
32-11 respect to suits brought under this section.
32-12 SECTION 31. Sections 74.507, 74.508, and 74.509, Property
32-13 Code, are amended to read as follows:
32-14 Sec. 74.507. FEE FOR RECOVERY. (a) A person who informs a
32-15 potential claimant that the claimant may be entitled to claim
32-16 property that is reportable to the comptroller [State Treasurer]
32-17 under this chapter, that has been reported to the comptroller
32-18 [State Treasurer], or that is in the possession of the comptroller
32-19 [State Treasurer,] may not contract for or receive from the
32-20 claimant for services an amount that exceeds 10 percent of the
32-21 value of the property recovered. If the property involved is
32-22 mineral proceeds, the amount for services may not include a portion
32-23 of the underlying minerals or any production payment, overriding
32-24 royalty, or similar payment.
32-25 (b) The person who informs a potential claimant and by
33-1 contract or other written agreement is to receive a percentage of
33-2 the value of the property may not file or receive a form to claim
33-3 or act on behalf of a claimant.
33-4 Sec. 74.508. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
33-5 PROCEDURE. (a) At any time after property has been paid or
33-6 delivered to the comptroller [State Treasurer] under this chapter
33-7 [Act], another state may recover the property if:
33-8 (1) the property was subjected to custody by this
33-9 state because the records of the holder did not reflect the last
33-10 known address of the apparent owner when the property was presumed
33-11 abandoned under this chapter [Act], and the other state establishes
33-12 that the last known address of the apparent owner or other person
33-13 entitled to the property was in that state and under the laws of
33-14 that state the property escheated to or was subject to a claim of
33-15 abandonment by that state;
33-16 (2) the last known address of the apparent owner or
33-17 other person entitled to the property, as reflected by the records
33-18 of the holder are in the other state and under the laws of that
33-19 state the property has escheated to or become subject to a claim of
33-20 abandonment by that state;
33-21 (3) the records of the holder were erroneous in that
33-22 they did not accurately reflect the actual owner of the property
33-23 and the last known address of the actual owner is in the other
33-24 state and under the laws of that state the property escheated to or
33-25 was subject to a claim of abandonment by that state;
34-1 (4) the property was subjected to custody by this
34-2 state under Subdivision (6) of Subsection (a) of Section 72.001 and
34-3 under the laws of the state of domicile of the holder the property
34-4 has escheated to or become subject to a claim of abandonment by
34-5 that state; or
34-6 (5) the property is the sum payable on a traveler's
34-7 check, money order, or other similar instrument that was subjected
34-8 to custody by this state under Subdivision (4) and the instrument
34-9 was purchased in the other state and under the laws of that state
34-10 the property escheated to or became subject to a claim of
34-11 abandonment by that state.
34-12 (b) The claim of another state to recover escheated or
34-13 abandoned property must be presented in a form prescribed by the
34-14 comptroller [State Treasurer], who shall decide the claim within 90
34-15 days after it is presented. The comptroller [State Treasurer]
34-16 shall allow the claim if he determines that the other state is
34-17 entitled to the abandoned property under Subsection (a).
34-18 Sec. 74.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY.
34-19 A [The State Treasurer shall charge a person claiming unclaimed
34-20 property a] handling fee may be deducted from the amount of the
34-21 claim payment if [ownership of the property is reinstated and] the
34-22 payment is at least $100 [value of the property is $50 or more].
34-23 SECTION 32. Subchapter G, Chapter 74, Property Code, is
34-24 amended to read as follows:
35-1 SUBCHAPTER G. UNCLAIMED MONEY [FUND]
35-2 Sec. 74.601. UNCLAIMED MONEY [FUND]. (a) The comptroller
35-3 [State Treasurer] shall maintain a record that documents [fund
35-4 known as the] unclaimed money received under this chapter or any
35-5 other statute requiring the delivery of unclaimed property to the
35-6 comptroller [fund].
35-7 (b) The comptroller [State Treasurer] shall deposit to the
35-8 credit of the general revenue fund:
35-9 (1) all funds, including marketable securities,
35-10 delivered to the comptroller [State Treasurer] under this chapter
35-11 or any other statute requiring the delivery of unclaimed property
35-12 to the comptroller [State Treasurer];
35-13 (2) all proceeds from the sale of any property,
35-14 including marketable securities, under this chapter;
35-15 (3) all funds that have escheated to the state under
35-16 Chapter 71, except that funds relating to escheated real property
35-17 shall be deposited according to Section 71.202; and
35-18 (4) any income derived from investments of the
35-19 unclaimed money [fund].
35-20 (c) The comptroller [State Treasurer] shall keep a separate
35-21 record and accounting for delivered unclaimed property, other than
35-22 money, before its sale.
35-23 (d) Except as provided by Subsection (e), the comptroller
35-24 [State Treasurer] shall from time to time invest the amount of [in
35-25 the] unclaimed money [fund] in investments approved by law for the
36-1 investment of state funds.
36-2 (e) The comptroller [State Treasurer] may from time to time
36-3 sell securities [in the fund], including stocks, bonds, and mutual
36-4 funds, received under this chapter or any other statute requiring
36-5 the delivery of unclaimed property to the comptroller and use the
36-6 proceeds to buy, exchange, invest, or reinvest in marketable
36-7 securities. When making or selling the investments, the
36-8 comptroller [State Treasurer] shall exercise the judgment and care
36-9 of a prudent person.
36-10 (f) The comptroller [State Treasurer] shall keep a separate
36-11 record and accounting for securities delivered, sold, purchased, or
36-12 exchanged and the proceeds and earnings from the securities.
36-13 Sec. 74.602. USE OF MONEY [FUND]. [(a)] Except as provided
36-14 by Section 381.004, Local Government Code [Subsection (b)], the
36-15 comptroller [State Treasurer] shall use the unclaimed money
36-16 received under this chapter or any other statute requiring the
36-17 delivery of unclaimed property to the comptroller [fund] to pay the
36-18 claims of persons or states establishing ownership of property in
36-19 the possession of the comptroller [State Treasurer] under this
36-20 chapter or under any other unclaimed property or escheat statute.
36-21 [(b) Each fiscal year after deducting funds sufficient to
36-22 pay anticipated expenses and claims of the unclaimed money fund,
36-23 the state treasurer shall transfer:]
36-24 [(1) half of the balance of the unclaimed money fund
36-25 to the foundation school fund;]
37-1 [(2) $1.2 million to the state ethics fund;]
37-2 [(3) to each county of the state that requests, an
37-3 amount equal to any capital credits in the fund, less anticipated
37-4 claims, that were delivered under this chapter to the state
37-5 treasurer by an electric cooperative corporation on behalf of the
37-6 corporation's members in that county, with the money to be used
37-7 only to carry out a program under Section 381.004, Local Government
37-8 Code; and]
37-9 [(4) the remainder to the General Revenue Fund.]
37-10 [(c) The State Treasurer and the attorney general may use
37-11 the unclaimed money fund generally for the enforcement and
37-12 administration of this title, including the expenses of sale,
37-13 forms, notices, examinations, travel, court costs, supplies,
37-14 equipment, employment of necessary personnel, and any other
37-15 necessary expenses.]
37-16 Sec. 74.603. AUDIT; APPROPRIATION. The unclaimed money
37-17 received under this chapter or any other statute requiring the
37-18 delivery of unclaimed property to the comptroller [fund] is subject
37-19 to audit by the State Auditor and to appropriation by the
37-20 legislature for enforcing and administering this title.
37-21 SECTION 33. Sections 74.701 and 74.702, Property Code, are
37-22 amended to read as follows:
37-23 Sec. 74.701. RULES. The comptroller [State Treasurer] may
37-24 adopt rules necessary to carry out this title.
37-25 Sec. 74.702. EXAMINATION OF RECORDS. (a) To enforce this
38-1 chapter and to determine whether reports have been made as required
38-2 by this chapter, the comptroller [State Treasurer], the attorney
38-3 general, or an authorized agent of either, at any reasonable time,
38-4 may examine the books and records of any holder.
38-5 (b) The comptroller [State Treasurer], the attorney general,
38-6 or an agent of either may not make public any information obtained
38-7 by an examination made under this section and may not disclose that
38-8 information except in the course of a judicial proceeding,
38-9 authorized by this chapter, in which the state is a party or
38-10 pursuant to an agreement with another state allowing joint audits
38-11 or the exchange of information obtained under this section.
38-12 SECTION 34. Subsection (a), Section 74.703, Property Code,
38-13 is amended to read as follows:
38-14 (a) The comptroller [State Treasurer] and the attorney
38-15 general may employ, in the office of either official, additional
38-16 personnel necessary to enforce this title.
38-17 SECTION 35. Sections 74.704 and 74.705, Property Code, are
38-18 amended to read as follows:
38-19 Sec. 74.704. ASSISTANCE IN ENFORCEMENT. If the comptroller
38-20 [State Treasurer] or the attorney general requests, the State
38-21 Auditor, Banking Commissioner of Texas [state comptroller, banking
38-22 commissioner], securities commissioner, [insurance] commissioner of
38-23 insurance, savings and loan commissioner, Credit Union Commission,
38-24 Department of Public Safety of the State of Texas, or any district
38-25 or county attorney shall assist the comptroller [State Treasurer]
39-1 or attorney general in enforcing this title.
39-2 Sec. 74.705. INTEREST[, ATTORNEY'S FEES, AND PENALTIES].
39-3 [(a)] A holder [person] who fails to pay or deliver property
39-4 within the time prescribed by this chapter shall pay to the
39-5 comptroller [State Treasurer] interest, at an annual rate of 10
39-6 percent [the judgment rate of interest as published by the consumer
39-7 credit commissioner in the Texas Register], on the property [or
39-8 value of the property] from the date the property should have been
39-9 paid or delivered until the date the property is actually paid or
39-10 delivered.
39-11 [(b) If the State Treasurer presents a claim for unclaimed
39-12 property to a person who fails timely to pay or deliver the
39-13 property and the just amount of unclaimed property owed has not
39-14 been tendered before the 31st day after the date the claim is
39-15 presented, the State Treasurer may, on approval of a court of
39-16 competent jurisdiction in Travis County, recover reasonable
39-17 attorney's fees from the person in addition to unclaimed property
39-18 and interest due.]
39-19 [(c) A person commits an offense if the person:]
39-20 [(1) wilfully fails to file a report required by this
39-21 chapter;]
39-22 [(2) refuses to permit examination of records in
39-23 accordance with this chapter;]
39-24 [(3) makes a deduction from or a service charge
39-25 against a dormant account or dormant deposit of funds; or]
40-1 [(4) violates any other provision of this title.]
40-2 [(d) An offense under this section is punishable by:]
40-3 [(1) a fine of not less than $500 nor more than
40-4 $1,000;]
40-5 [(2) confinement in jail for a term not to exceed six
40-6 months; or]
40-7 [(3) both the fine and confinement.]
40-8 [(e) In addition to a criminal penalty, a person who commits
40-9 an offense under Subsection (c) is subject to a civil penalty not
40-10 to exceed $100 for each day of the violation. The attorney general
40-11 shall collect the civil penalty by bringing suit on behalf of the
40-12 state in a district court in Travis County, Texas.]
40-13 SECTION 36. Subchapter H, Chapter 74, Property Code, is
40-14 amended by adding Sections 74.706 through 74.710 to read as
40-15 follows:
40-16 Sec. 74.706. PENALTY. A penalty equal to five percent of
40-17 the value of the property due shall be imposed on a holder who
40-18 fails to pay or deliver property within the time prescribed by this
40-19 chapter. If a holder fails to pay or deliver property before the
40-20 31st day after the date the property is due, an additional penalty
40-21 equal to five percent of the value of the property due shall be
40-22 imposed.
40-23 Sec. 74.707. WAIVER OR ABATEMENT OF PENALTY OR INTEREST.
40-24 (a) The comptroller may waive penalty or interest imposed on
40-25 delinquent property if the comptroller determines that the holder
41-1 has made a good faith effort to comply with Chapters 72-75.
41-2 (b) The comptroller may provide for periods during which a
41-3 holder of delinquent property may report and remit the unclaimed
41-4 property without paying a penalty or interest.
41-5 Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on
41-6 June 30 holds property presumed abandoned under Chapters 72-75
41-7 holds the property in trust for the benefit of the state on behalf
41-8 of the missing owner and is liable to the state for the full value
41-9 of the property, plus any accrued interest and penalty. A holder
41-10 is not required by this section to segregate or establish trust
41-11 accounts for the property provided the property is timely delivered
41-12 to the comptroller in accordance with Section 74.301.
41-13 Sec. 74.709. SUIT TO COMPEL DELIVERY OF PROPERTY AND CIVIL
41-14 PENALTIES. (a) On request of the comptroller, the attorney
41-15 general shall bring an action in district court, in the name of the
41-16 state, to compel a holder to deliver property or to file a property
41-17 report.
41-18 (b) Venue for a suit brought under this section is in Travis
41-19 County.
41-20 (c) The fact that a suit seeks enforcement of this section
41-21 from more than one holder is not grounds for an objection
41-22 concerning misjoinder of parties or causes of action.
41-23 (d) When introduced into evidence, the verified property
41-24 report, unless rebutted, is sufficient evidence that the property
41-25 is abandoned and subject to delivery under this chapter and for
42-1 entry of a judgment transferring custody of the property to the
42-2 comptroller.
42-3 (e) The attorney general, on behalf of the comptroller, may
42-4 recover reasonable attorney's fees from the holder in addition to
42-5 recovery of any unclaimed property accrued or a penalty or interest
42-6 due.
42-7 (f) In addition to a penalty or interest assessed on
42-8 delinquent property, a holder who fails to pay or deliver property
42-9 or who fails to file a property report within the time prescribed
42-10 by this chapter is subject to a civil penalty not to exceed $100
42-11 for each day of violation.
42-12 Sec. 74.710. CRIMINAL OFFENSE. (a) A holder commits an
42-13 offense if the holder wilfully violates this chapter, including:
42-14 (1) failing to file a report in accordance with this
42-15 chapter;
42-16 (2) failing to pay or deliver property in accordance
42-17 with this chapter; or
42-18 (3) refusing to permit examination of records in
42-19 accordance with this chapter.
42-20 (b) An offense under this section is a Class B misdemeanor.
42-21 SECTION 37. Subchapter A, Chapter 75, Property Code, is
42-22 amended by adding Section 75.002 to read as follows:
42-23 Sec. 75.002. TRANSFER AND PURCHASE OF MINERAL INTEREST ON
42-24 MINERAL PROCEEDS. A person purchasing mineral proceeds of an owner
42-25 whose name has been reported or is reportable to the comptroller
43-1 shall provide documentation required by the comptroller to
43-2 substantiate that the transfer is executed by the reported owner or
43-3 the reported owner's legal agent.
43-4 SECTION 38. Title 6, Property Code, is amended by adding
43-5 Chapter 76 to read as follows:
43-6 CHAPTER 76. REPORT, DELIVERY, AND CLAIMS PROCESS FOR
43-7 CERTAIN PROPERTY
43-8 SUBCHAPTER A. GENERAL PROVISIONS
43-9 Sec. 76.001. APPLICABILITY. This chapter applies only to
43-10 the holder of property if:
43-11 (1) the holder is a municipality or county; and
43-12 (2) the property is:
43-13 (A) presumed abandoned under Chapter 72 or 75;
43-14 and
43-15 (B) valued at $100 or less.
43-16 Sec. 76.002. OFFICERS AND REPRESENTATIVES. In this chapter:
43-17 (1) a reference to the treasurer of a holder includes
43-18 a person performing the duties of the treasurer of a holder in a
43-19 municipality or county in which the office of treasurer does not
43-20 exist; and
43-21 (2) a reference to the attorney for a holder includes
43-22 an attorney designated by the governing body of the holder to
43-23 represent the holder.
43-24 (Sections 76.003-76.100 reserved for expansion
44-1 SUBCHAPTER B. PROPERTY REPORT
44-2 Sec. 76.101. PROPERTY REPORT. (a) Each holder who on June
44-3 30 holds property subject to this chapter shall file a report of
44-4 that property on or before the following November 1. Each report
44-5 shall be filed with the treasurer of the holder as provided by this
44-6 section and on forms prescribed by the treasurer of the holder.
44-7 (b) A holder required by Subsection (a) to file a report
44-8 shall file a report each successive year regardless of whether the
44-9 holder has any reportable property on June 30 of the year in which
44-10 the report is filed.
44-11 Sec. 76.102. VERIFICATION. (a) The person preparing a
44-12 property report shall place at the end of each copy of the report a
44-13 verification made under oath and executed by the chief fiscal
44-14 officer of the holder, as designated by the holder.
44-15 (b) The verification must include the following sentence:
44-16 "This report contains a full and complete list of all property held
44-17 by the undersigned that, from the knowledge and records of the
44-18 undersigned, is abandoned under the laws of the State of Texas."
44-19 Sec. 76.103. RETENTION OF RECORDS. (a) The holder required
44-20 to file a property report shall keep a record of:
44-21 (1) the name and last known address of each person
44-22 who, from the records of the holder, appears to be the owner of the
44-23 property;
44-24 (2) a brief description of the property, including the
44-25 identification number of the account, if any; and
45-1 (3) the balance of each account, if appropriate.
45-2 (b) The record must be kept until the 10th anniversary of
45-3 the date on which the property is reportable.
45-4 (c) The treasurer of the holder may provide for a shorter
45-5 period for keeping a record required by this section.
45-6 Sec. 76.104. CONFIDENTIALITY OF PROPERTY REPORT.
45-7 (a) Except as provided by this chapter, a property report filed
45-8 with the treasurer of the holder is confidential until the second
45-9 anniversary of the date the report is filed.
45-10 (b) Notwithstanding other law, the social security number of
45-11 an owner that is reported to the treasurer of the holder is
45-12 confidential.
45-13 (Sections 76.105-76.200 reserved for expansion
45-14 SUBCHAPTER C. NOTICE
45-15 Sec. 76.201. PUBLISHED NOTICE. (a) Except as provided by
45-16 Subsections (b) and (e), the treasurer of a holder shall publish a
45-17 notice in a newspaper in the calendar year immediately following
45-18 the year in which the property report is filed. The newspaper must
45-19 be a newspaper of general circulation in the jurisdiction of the
45-20 holder.
45-21 (b) The treasurer of the holder may use a method of
45-22 publishing notice that is different from that prescribed by
45-23 Subsection (a) if the treasurer determines that the different
45-24 method would be as likely as the prescribed method to give actual
45-25 notice to the person required to be named in the notice.
46-1 (c) The published notice must state that the reported
46-2 property is presumed abandoned and subject to this chapter and must
46-3 contain:
46-4 (1) a statement that, by addressing an inquiry to the
46-5 treasurer of the holder, any person possessing a legal or
46-6 beneficial interest in the reported property may obtain information
46-7 concerning the amount of the property; and
46-8 (2) a statement that the owner may present proof of
46-9 the claim to the treasurer of the holder and establish the owner's
46-10 right to receive the property.
46-11 (d) The treasurer of a holder may offer for sale space for
46-12 suitable advertisements in a notice published under this section.
46-13 Proceeds from the sale of the advertising space shall be used to
46-14 defray the cost of publishing the notices, with the remaining
46-15 amount, if any, to be deposited to the credit of the unclaimed
46-16 money fund.
46-17 (e) In the notice required by this section, the treasurer of
46-18 the holder may publish other information regarding property if the
46-19 treasurer determines that publication of that information is in the
46-20 public interest.
46-21 Sec. 76.202. NOTICE TO OWNER. (a) During the calendar year
46-22 immediately following the year in which the property report is
46-23 filed, the treasurer of the holder may mail a notice to each person
46-24 who has an address in this state and appears to be entitled to the
46-25 reported property.
47-1 (b) The notice must contain:
47-2 (1) a statement that property is being held by the
47-3 treasurer of the holder to which the addressee appears to be
47-4 entitled; and
47-5 (2) a statement that the owner may present proof of
47-6 the claim to the treasurer of the holder and establish the owner's
47-7 right to receive the property.
47-8 Sec. 76.203. NOTICE THAT ACCOUNTS ARE SUBJECT TO THIS
47-9 CHAPTER. Publication of notice in accordance with Section 76.201
47-10 is notice to the owner by the holder that the reported property is
47-11 subject to this chapter.
47-12 Sec. 76.204. CHARGE FOR NOTICE. The treasurer of the holder
47-13 may charge the following against the property delivered under this
47-14 chapter:
47-15 (1) expenses incurred for the publication of notice
47-16 required by Section 76.201; and
47-17 (2) the amount paid in postage for the notice to the
47-18 owner required by Section 76.202.
47-19 (Sections 76.205-76.300 reserved for expansion
47-20 SUBCHAPTER D. DELIVERY
47-21 Sec. 76.301. DELIVERY OF PROPERTY TO TREASURER. (a) Each
47-22 holder who on June 30 holds property that is subject to this
47-23 chapter shall deliver the property to the treasurer of the holder
47-24 on or before the following November 1 accompanied by the property
47-25 report.
48-1 (b) If the property subject to delivery under Subsection (a)
48-2 is stock or some other intangible ownership interest in a business
48-3 association for which there is no evidence of ownership, the holder
48-4 shall issue a duplicate certificate or other evidence of ownership
48-5 to the treasurer of the holder at the time delivery is required
48-6 under this section.
48-7 Sec. 76.302. VERIFICATION OF DELIVERED PROPERTY.
48-8 (a) Property delivered under Section 76.301 must be accompanied by
48-9 a verification under oath that:
48-10 (1) the property delivered is a complete and correct
48-11 remittance of all accounts subject to this chapter in the holder's
48-12 possession;
48-13 (2) the existence and location of the listed owners
48-14 are unknown to the holder; and
48-15 (3) the listed owners have not asserted a claim or
48-16 exercised an act of ownership with respect to the owner's reported
48-17 property.
48-18 (b) The verification required by Subsection (a) shall be
48-19 signed by the chief fiscal officer of the holder, as designated by
48-20 the holder.
48-21 Sec. 76.303. LIST OF OWNERS. (a) The treasurer of the
48-22 holder shall compile and revise each year an alphabetical list of
48-23 names and last known addresses of the owners listed in the reports
48-24 and the amount credited to each account.
48-25 (b) The treasurer of the holder shall make the list
49-1 available for public inspection during all reasonable business
49-2 hours.
49-3 Sec. 76.304. PERIOD OF LIMITATION NOT A BAR. The expiration
49-4 of any period specified by statute or court order, during which an
49-5 action or proceeding may be initiated or entered to obtain payment
49-6 of a claim for money, does not prevent the money from being
49-7 presumed abandoned property and does not affect any duty to file a
49-8 report required by this chapter or to deliver abandoned property to
49-9 the treasurer of the holder.
49-10 (Sections 76.305-76.400 reserved for expansion
49-11 SUBCHAPTER E. DISPOSITION OF DELIVERED PROPERTY
49-12 Sec. 76.401. SALE OF PROPERTY. (a) Except as provided by
49-13 Subsection (c), the treasurer of the holder shall sell at public
49-14 sale all personal property, other than money and marketable
49-15 securities, delivered to the treasurer of the holder in accordance
49-16 with Section 76.301. The treasurer of the holder shall conduct the
49-17 sale in the holder's jurisdiction.
49-18 (b) The treasurer of the holder shall sell the property to
49-19 the highest bidder. If the treasurer of the holder determines that
49-20 the highest bid is insufficient, the treasurer of the holder may
49-21 decline that bid and offer the property for public or private sale.
49-22 (c) The treasurer of the holder is not required to offer
49-23 property for sale if the property belongs to a person with an
49-24 address outside this state or the treasurer of the holder
49-25 determines that the probable cost of the sale of the property
50-1 exceeds its value.
50-2 (d) If after investigation the treasurer of the holder
50-3 determines that property delivered has insubstantial commercial
50-4 value, the treasurer of the holder may destroy or otherwise dispose
50-5 of the property at any time.
50-6 (e) A person may not maintain any action or proceeding
50-7 against the state, an officer of the state, or the holder of
50-8 property because of an action taken by the treasurer of the holder
50-9 under this section.
50-10 Sec. 76.402. NOTICE OF SALE. Before the 21st day before the
50-11 day on which a public sale is held under Section 76.401, the
50-12 treasurer of the holder shall publish notice of the sale in a
50-13 newspaper of general circulation in the county where the sale is to
50-14 be held.
50-15 Sec. 76.403. PURCHASER'S TITLE. (a) At a sale, public or
50-16 private, of property that is held under this subchapter, the
50-17 purchaser receives title to the purchased property free from all
50-18 claims of the prior owner and prior holder of the property and all
50-19 persons claiming through or under the owner or holder.
50-20 (b) The treasurer of the holder shall execute all documents
50-21 necessary to complete the transfer of title.
50-22 (Sections 76.404-76.500 reserved for expansion
50-23 SUBCHAPTER F. CLAIM FOR DELIVERED PROPERTY
50-24 Sec. 76.501. FILING OF CLAIM. (a) A claim for property
50-25 delivered to the treasurer of the holder under this chapter must be
51-1 filed with the treasurer of the holder.
51-2 (b) All claims to which this section applies must be filed
51-3 in accordance with procedures and on forms prescribed by the
51-4 treasurer of the holder.
51-5 Sec. 76.502. CONSIDERATION OF CLAIM. The treasurer of the
51-6 holder shall consider the validity of each claim filed under this
51-7 subchapter.
51-8 Sec. 76.503. HEARING. (a) The treasurer of the holder may
51-9 hold a hearing and receive evidence concerning a claim filed under
51-10 this subchapter.
51-11 (b) If the treasurer of the holder considers that a hearing
51-12 is necessary to determine the validity of a claim, the treasurer of
51-13 the holder shall sign the statement of the findings and the
51-14 decision on the claim. The statement shall report the substance of
51-15 the evidence heard and the reasons for the decision. The statement
51-16 is a public record.
51-17 (c) If the treasurer of the holder determines that a claim
51-18 is valid, the treasurer of the holder shall approve and sign the
51-19 claim.
51-20 Sec. 76.504. PAYMENT OF CLAIM. (a) If a claim has been
51-21 approved under this subchapter, the treasurer of the holder shall
51-22 pay the claim.
51-23 (b) If a claim is for personal property other than money and
51-24 has been approved under this subchapter, the treasurer of the
51-25 holder promptly shall deliver the property to the claimant unless
52-1 the treasurer of the holder has sold the property. If the property
52-2 has been sold under Section 76.401, the treasurer of the holder
52-3 shall pay to the claimant the proceeds from the sale.
52-4 (c) Costs of publication and postage shall be deducted from
52-5 the amounts paid under this section, but deductions for any costs
52-6 of administration or service charges may not be made.
52-7 Sec. 76.505. APPEAL. (a) A person aggrieved by the
52-8 decision on a claim filed under this subchapter may appeal the
52-9 decision before the 61st day after the date the decision was
52-10 rendered.
52-11 (b) If a claim has not been decided before the 91st day
52-12 after the date the claim was filed, the claimant may appeal within
52-13 the 60-day period beginning on the 91st day after the date of
52-14 filing.
52-15 (c) An appeal under this section must be made by filing suit
52-16 against the holder in a district court in the county in which the
52-17 claimed property is located. The holder's immunity from suit
52-18 without consent is waived with respect to a suit under this
52-19 section.
52-20 (d) A court shall try an action filed under this section de
52-21 novo and shall apply the rules of practice of the court.
52-22 Sec. 76.506. FEE FOR RECOVERY. A person who informs a
52-23 potential claimant that the claimant may be entitled to claim
52-24 property that is reportable to the treasurer of the holder under
52-25 this chapter, that has been reported to the treasurer of the
53-1 holder, or that is in the possession of the treasurer of the holder
53-2 may not contract for or receive from the claimant for services an
53-3 amount that exceeds 10 percent of the value of the property
53-4 recovered. If the property involved is mineral proceeds, the
53-5 amount for services may not include a portion of the underlying
53-6 minerals or any production payment, overriding royalty, or similar
53-7 payment.
53-8 Sec. 76.507. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
53-9 PROCEDURE. (a) At any time after property has been paid or
53-10 delivered to the treasurer of the holder under this chapter,
53-11 another state may recover the property if:
53-12 (1) the property was subjected to custody by the
53-13 holder because the records of the holder did not reflect the last
53-14 known address of the apparent owner when the property was presumed
53-15 abandoned under this chapter, and the other state establishes that
53-16 the last known address of the apparent owner or other person
53-17 entitled to the property was in that state and under the laws of
53-18 that state the property escheated to or was subject to a claim of
53-19 abandonment by that state;
53-20 (2) the last known address of the apparent owner or
53-21 other person entitled to the property, as reflected by the records
53-22 of the holder, is in the other state and under the laws of that
53-23 state the property has escheated to or become subject to a claim of
53-24 abandonment by that state; or
53-25 (3) the records of the holder were erroneous in that
54-1 the records did not accurately reflect the actual owner of the
54-2 property and the last known address of the actual owner is in the
54-3 other state and under the laws of that state the property escheated
54-4 to or was subject to a claim of abandonment by that state.
54-5 (b) The claim of another state to recover escheated or
54-6 abandoned property must be presented in a form prescribed by the
54-7 treasurer of the holder, who shall decide the claim within 90 days
54-8 after the date it is presented. The treasurer of the holder shall
54-9 allow the claim if the treasurer of the holder determines that the
54-10 other state is entitled to the abandoned property under Subsection
54-11 (a).
54-12 (Sections 76.508-76.600 reserved for expansion
54-13 SUBCHAPTER G. UNCLAIMED MONEY FUND
54-14 Sec. 76.601. FUND. (a) The treasurer of the holder shall
54-15 maintain a fund known as the unclaimed money fund.
54-16 (b) The treasurer of the holder shall deposit to the credit
54-17 of the fund:
54-18 (1) all funds, including marketable securities,
54-19 delivered to the treasurer of the holder under this chapter or any
54-20 other statute requiring the delivery of unclaimed property to the
54-21 treasurer of the holder;
54-22 (2) all proceeds from the sale of any property,
54-23 including marketable securities, under this chapter; and
54-24 (3) any income derived from investments of the fund.
54-25 (c) The treasurer of the holder shall keep a separate record
55-1 and accounting for delivered unclaimed property, other than money,
55-2 before its sale.
55-3 (d) The treasurer of the holder shall from time to time
55-4 invest the amount in the unclaimed money fund in investments
55-5 approved by law for the investment of funds by the holder.
55-6 (e) The treasurer of the holder may from time to time sell
55-7 securities in the fund, including stocks, bonds, and mutual funds,
55-8 and use the proceeds to buy, exchange, invest, or reinvest in
55-9 marketable securities. When making the investments, the treasurer
55-10 of the holder shall exercise the judgment and care of a prudent
55-11 person.
55-12 (f) The treasurer of the holder shall keep a separate record
55-13 and accounting for securities delivered, sold, purchased, or
55-14 exchanged and the proceeds and earnings from the securities.
55-15 Sec. 76.602. USE OF FUND. (a) The treasurer of the holder
55-16 shall use the unclaimed money fund to pay the claims of persons
55-17 establishing ownership of property in the possession of the
55-18 treasurer of the holder under this chapter or under any other
55-19 unclaimed property or escheat statute.
55-20 (b) Each fiscal year after deducting funds sufficient to pay
55-21 anticipated expenses and claims of the unclaimed money fund, the
55-22 treasurer of the holder shall transfer the remainder to the general
55-23 fund of the holder.
55-24 (c) The treasurer of the holder and the attorney for the
55-25 holder may use the unclaimed money fund generally for the
56-1 enforcement and administration of this chapter, including the
56-2 expenses of forms, notices, examinations, travel, court costs,
56-3 supplies, equipment, and employment of necessary personnel and
56-4 other necessary expenses.
56-5 Sec. 76.603. AUDIT; BUDGET. The unclaimed money fund is
56-6 subject to:
56-7 (1) audit by the auditor of the holder or an
56-8 independent auditor if the holder does not have an auditor; and
56-9 (2) budgetary procedures adopted by the governing body
56-10 of the holder.
56-11 (Sections 76.604-76.700 reserved for expansion
56-12 SUBCHAPTER H. ENFORCEMENT
56-13 Sec. 76.701. RULES. The treasurer of the holder may adopt
56-14 rules necessary to carry out this chapter.
56-15 Sec. 76.702. EXAMINATION OF RECORDS. (a) To enforce this
56-16 chapter and to determine whether reports have been made as required
56-17 by this chapter, the treasurer of the holder, at any reasonable
56-18 time, may examine the books and records of the holder.
56-19 (b) The treasurer of the holder, attorney for the holder, or
56-20 an agent of either person may not make public any information
56-21 obtained by an examination made under this section and may not
56-22 disclose that information except:
56-23 (1) in the course of a judicial proceeding authorized
56-24 by this chapter in which the holder is a party; or
56-25 (2) under an agreement with another state allowing
57-1 joint audits or the exchange of information obtained under this
57-2 section.
57-3 Sec. 76.703. ADDITIONAL PERSONNEL. (a) The treasurer of
57-4 the holder and the attorney for the holder may employ, in the
57-5 office of either person, additional personnel necessary to enforce
57-6 this chapter.
57-7 (b) The salary rate of additional personnel may not exceed
57-8 the rate paid to other employees of the holder for similar
57-9 services.
57-10 (c) The salaries of additional personnel shall be paid in
57-11 accordance with Section 76.602.
57-12 (d) The provisions of this section are subject to the
57-13 budgetary procedures adopted by the governing body of the holder.
57-14 Sec. 76.704. OFFENSE. (a) A person commits an offense if
57-15 the person:
57-16 (1) wilfully fails to file a report required by this
57-17 chapter;
57-18 (2) refuses to permit examination of records in
57-19 accordance with this chapter;
57-20 (3) makes a deduction from or a service charge against
57-21 a dormant account or dormant deposit of funds; or
57-22 (4) violates any other provision of this chapter.
57-23 (b) An offense under this section is punishable by:
57-24 (1) a fine of not less than $500 or more than $1,000;
57-25 (2) confinement in jail for a term not to exceed six
58-1 months; or
58-2 (3) both the fine and confinement.
58-3 (c) In addition to a criminal penalty, a person who commits
58-4 an offense under Subsection (a) is subject to a civil penalty not
58-5 to exceed $100 for each day of the violation. The attorney for the
58-6 holder shall collect the civil penalty by bringing suit in a
58-7 district court of the county in which the holder is located.
58-8 SECTION 39. Subsection (c), Section 91.403, Natural
58-9 Resources Code, is amended to read as follows:
58-10 (c) The payor's obligation to pay interest and the payee's
58-11 right to receive interest under Subsection (a) of this section
58-12 terminate on delivery of the proceeds and accumulated interest to
58-13 the comptroller [State Treasurer] as provided by Title 6, Property
58-14 Code.
58-15 SECTION 40. The following provisions are repealed:
58-16 (1) Section 571.030, Government Code;
58-17 (2) Sections 73.004, 74.204, 74.305, and 74.505,
58-18 Property Code; and
58-19 (3) Section 74.503, Property Code, as amended by
58-20 Chapters 36 and 851, Acts of the 73rd Legislature, 1993.
58-21 SECTION 41. (a) The changes in law made by Section 74.001,
58-22 Property Code, as amended by this Act, and Chapter 76, Property
58-23 Code, as added by this Act, apply only to unclaimed property held
58-24 by a holder, as that term is used in Chapter 76, Property Code, as
58-25 added by this Act, on or after June 30, 1998.
S.B. No. 700
59-1 (b) Property held by a holder, as that term is used in
59-2 Chapter 76, Property Code, as added by this Act, on June 30, 1997,
59-3 is governed by the law as it existed immediately before the
59-4 effective date of this Act, and the former law is continued in
59-5 effect for that purpose.
59-6 SECTION 42. (a) The change in law made by this Act applies
59-7 only to an offense committed on or after the effective date of this
59-8 Act. For purposes of this section, an offense is committed before
59-9 the effective date of this Act if any element of the offense occurs
59-10 before that date. An offense committed before the effective date
59-11 of this Act is covered by the law in effect when the offense was
59-12 committed, and the former law is continued in effect for that
59-13 purpose.
59-14 (b) The change in law under Section 74.705, Property Code,
59-15 as amended by this Act, applies only to the rate for interest that
59-16 accrues under that section on or after the effective date of this
59-17 Act. The rate for interest that accrued under that section before
59-18 the effective date of this Act is governed by the law as it existed
59-19 at the time the interest accrued, and that law is continued in
59-20 effect for that purpose.
59-21 (c) On the effective date of this Act, the comptroller shall
59-22 transfer to the general revenue fund money in the unclaimed money
59-23 fund.
59-24 (d) The change in law under Sections 74.201 and 74.202,
59
S.B. No. 700
60-1 Property Code, as amended by this Act, applies to any notice
60-2 requirement provided under Section 74.201, Property Code, on or
60-3 after September 1, 1997, including notice requirements for property
60-4 reported prior to September 1, 1997.
60-5 SECTION 43. (a) Interest, attorney's fees, and penalties
60-6 owed by a county or municipality under Section 74.705, Property
60-7 Code, before June 30, 1998, are not required to be paid if the
60-8 county or municipality delivers to the comptroller of public
60-9 accounts not later than March 1, 1999, the property for which the
60-10 interest, attorney's fees, or penalties have accrued. The waiver
60-11 of interest, attorney's fees, and penalties provided by this
60-12 subsection is for the purpose of permitting the county or
60-13 municipality to defray the costs of administering Chapter 76,
60-14 Property Code, as added by this Act.
60-15 (b) Any property valued at $100 or less that is required to
60-16 be delivered to the comptroller of public accounts by a county or
60-17 municipality under Chapter 74, Property Code, before June 30, 1998,
60-18 and that has not been delivered to the comptroller by that date:
60-19 (1) is not required to be delivered to the
60-20 comptroller; and
60-21 (2) will not accrue interest, attorney's fees, or
60-22 penalties after June 30, 1998.
60-23 SECTION 44. This Act takes effect September 1, 1997.
60-24 SECTION 45. The importance of this legislation and the
60
S.B. No. 700
61-1 crowded condition of the calendars in both houses create an
61-2 emergency and an imperative public necessity that the
61-3 constitutional rule requiring bills to be read on three several
61-4 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 700 passed the Senate on
April 7, 1997, by a viva-voce vote; and that the Senate concurred
in House amendments on June 1, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 700 passed the House, with
amendments, on May 25, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor
61