By: Armbrister S.B. No. 700
A BILL TO BE ENTITLED
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. Subsections (a) and (c), Section 74.101,
15-8 Property Code, are amended to read as follows:
15-9 (a) Each holder who on June 30 holds property that is
15-10 presumed abandoned under Chapter 72, [Chapter] 73, or [Chapter] 75,
15-11 or under [Section 5A,] Chapter 512, Acts of the 54th Legislature,
15-12 1955 (Article 548b, Vernon's Texas Civil Statutes), shall file a
15-13 report of that property on or before the following November 1. The
15-14 comptroller may require the report to be in a particular format,
15-15 including a format that can be read by a computer. [Each report
15-16 shall be filed with the State Treasurer as provided by this section
15-17 and on forms prescribed by the State Treasurer.]
15-18 (c) The property report must include:
15-19 (1) the name and social security number, if known, and
15-20 the last known address, if any, of each person who, from the
15-21 records of the holder of the property, appears to be the owner of
15-22 the property, or the name and address, if known, of any person who
15-23 is entitled to the property;
15-24 (2) a [brief] description of the property, the
15-25 identification number, if any, and, if appropriate, a balance of
16-1 each account, except as provided by Subsection (d) [(e)];
16-2 (3) the date that the property became payable,
16-3 demandable, or returnable;
16-4 (4) the date of the last transaction with the owner
16-5 concerning the property; and
16-6 (5) [any deduction made by the holder of the property
16-7 for a service, maintenance, or other charge, unless fully restored
16-8 and included in the amount reported; and]
16-9 [(6)] other information that the comptroller [State
16-10 Treasurer] by rule requires to be disclosed as necessary for the
16-11 administration of this chapter.
16-12 SECTION 17. Section 74.102, Property Code, is amended to
16-13 read as follows:
16-14 Sec. 74.102. VERIFICATION. (a) The person preparing a
16-15 property report shall provide with [place at the end of] each copy
16-16 of the report a verification made under oath and executed by:
16-17 (1) the individual holding the reported property;
16-18 (2) a partner, if the holder is a partnership;
16-19 (3) an officer, if the holder is an unincorporated
16-20 association or a private corporation; or
16-21 (4) the chief fiscal officer, if the holder is a
16-22 public corporation.
16-23 (b) The verification must include the following sentence:
16-24 "This [The foregoing] report contains a full and complete
16-25 list of all property held by the undersigned that, from the
17-1 knowledge and records of the undersigned, is abandoned under the
17-2 laws of the State of Texas."
17-3 SECTION 18. Subsections (a) and (c), Section 74.103,
17-4 Property Code, are amended to read as follows:
17-5 (a) A holder required to file a property report under
17-6 Section 74.101 shall keep a record of:
17-7 (1) the name, the social security number, if known,
17-8 and the last known address of each person who, from the records of
17-9 the holder of the property, appears to be the owner of the
17-10 property;
17-11 (2) a brief description of the property, including the
17-12 identification number, if any; and
17-13 (3) the balance of each account, if appropriate.
17-14 (c) The comptroller [State Treasurer] may by rule provide
17-15 for a shorter period for keeping a record required by this section.
17-16 SECTION 19. Section 74.104, Property Code, is amended to
17-17 read as follows:
17-18 Sec. 74.104. CONFIDENTIALITY OF PROPERTY REPORT.
17-19 (a) Except as provided by Section [Sections] 74.201, 74.203, or
17-20 [and] 74.307, a property report filed with the comptroller [State
17-21 Treasurer] under Section 74.101 is confidential until the second
17-22 anniversary of the date the report is filed.
17-23 (b) The [Notwithstanding any other provision of law, the]
17-24 social security number of an owner that is provided [reported] to
17-25 the comptroller [State Treasurer] is confidential.
18-1 SECTION 20. Sections 74.201, 74.202, and 74.203, Property
18-2 Code, are amended to read as follows:
18-3 Sec. 74.201. REQUIRED [PUBLISHED] NOTICE. (a) Except as
18-4 provided by [Subsection (b) and] Section 74.202, the comptroller
18-5 may use one or more methods as necessary to provide the most
18-6 efficient and effective notice to each reported owner [State
18-7 Treasurer shall publish a notice in a newspaper of general
18-8 circulation] in the calendar year immediately following the year in
18-9 which the report required by Section 74.101 is filed. The notice
18-10 must be provided [published]:
18-11 (1) in the county of the property owner's [in which
18-12 the] last known address [of a person required to be named in the
18-13 notice is located]; or
18-14 (2) [if the address of a person listed is not set out
18-15 in the report or if it is outside the state,] in the county in
18-16 which the holder [of the abandoned property] has its principal
18-17 place of business or its[,] registered office[, or agent] for
18-18 service in this state, if the property owner's last address is
18-19 unknown.
18-20 (b) [The State Treasurer may use a method of publishing
18-21 notice that is different from that prescribed by Subsection (a)(1)
18-22 or (2) if the State Treasurer determines that the different method
18-23 would be as likely as the prescribed method to give actual notice
18-24 to the person required to be named in the notice.]
18-25 [(c)] The [published] notice must state that the reported
19-1 property is presumed abandoned and subject to this chapter and must
19-2 contain:
19-3 (1) the name and city of last known address of the
19-4 reported owner[, if any, of each person listed in the property
19-5 report filed under Section 74.101, listed alphabetically by name];
19-6 (2) a statement that, by [addressing an] inquiry [to
19-7 the State Treasurer], any person possessing a legal or beneficial
19-8 interest in the reported property may obtain information concerning
19-9 the amount and description of the property; and
19-10 (3) a statement that the person [owner] may present
19-11 proof of the claim [to the State Treasurer] and establish the
19-12 person's [owner's] right to receive the property.
19-13 (d) The comptroller [State Treasurer] may offer for sale
19-14 space for suitable advertisements in a notice published under this
19-15 section. [Proceeds from the sale of the advertising space shall be
19-16 used to defray the cost of publishing the notices, with the
19-17 remaining amount, if any, to be deposited to the credit of the
19-18 unclaimed money fund.]
19-19 Sec. 74.202. NOTICE FOR ITEM WITH VALUE OF LESS THAN $100
19-20 [NOT EXCEEDING $50]. In the notice required by Section 74.201, the
19-21 comptroller [State Treasurer] is not required to publish
19-22 information regarding an item having a value that is less than $100
19-23 [$50] unless the comptroller [State Treasurer] determines that
19-24 publication of that information is in the public interest.
19-25 Sec. 74.203. AUTHORIZED NOTICE [TO OWNER]. (a) During the
20-1 calendar year immediately following the year in which the report
20-2 required by Section 74.101 is filed, [the State Treasurer may mail
20-3 a] notice may be mailed to each person who has been reported with a
20-4 Texas address and appears to be entitled to the reported property
20-5 [valued at $50 or more].
20-6 (b) The notice under Subsection (a) must conform to the
20-7 requirements for notice under Section 74.201(b) [must contain:]
20-8 [(1) a statement that property is being held by the
20-9 State Treasurer to which the addressee appears to be entitled; and]
20-10 [(2) a statement that the owner may present proof of
20-11 the claim to the State Treasurer and establish the owner's right to
20-12 receive the property].
20-13 SECTION 21. Sections 74.205 and 74.301, Property Code, are
20-14 amended to read as follows:
20-15 Sec. 74.205. CHARGE FOR NOTICE. The comptroller [State
20-16 Treasurer] may charge the following against the property delivered
20-17 under this chapter:
20-18 (1) expenses incurred for the publication of notice
20-19 required by Section 74.201; and
20-20 (2) the amount paid in postage for the notice to the
20-21 owner required by Section 74.203.
20-22 Sec. 74.301. DELIVERY OF PROPERTY TO COMPTROLLER [STATE
20-23 TREASURER]. (a) Each holder who on June 30 holds property that is
20-24 presumed abandoned under Chapter 72, [Chapter] 73, or [Chapter] 75
20-25 shall deliver the property to the comptroller [State Treasurer] on
21-1 or before the following November 1 accompanied by the report
21-2 required to be filed under Section 74.101.
21-3 (b) If the property subject to delivery under Subsection (a)
21-4 is stock or some other intangible ownership interest in a business
21-5 association for which there is no evidence of ownership, the holder
21-6 shall issue a duplicate certificate or other evidence of ownership
21-7 to the comptroller [State Treasurer] at the time delivery is
21-8 required under this section.
21-9 SECTION 22. Subsections (c), (e), and (g), Section 74.3011,
21-10 Property Code, are amended to read as follows:
21-11 (c) A local telephone exchange company shall file with the
21-12 comptroller [state treasurer] a verification of money delivered
21-13 under this section that complies with Section 74.302.
21-14 (e) The comptroller [state treasurer] shall prescribe forms
21-15 and procedures governing this section, including forms and
21-16 procedures relating to:
21-17 (1) notice of presumed abandoned property;
21-18 (2) delivery of reported money to a scholarship fund;
21-19 and
21-20 (3) filing of a claim.
21-21 (g) During a state fiscal year, the total amount of money
21-22 that may be transferred by all local telephone exchange companies
21-23 under this section may not exceed $400,000. The comptroller [state
21-24 treasury] shall keep a record of the total amount of money
21-25 transferred annually. When the total amount of money transferred
22-1 during a state fiscal year equals the amount allowed by this
22-2 subsection, the comptroller [treasury] shall notify each local
22-3 telephone exchange company that the company may not transfer any
22-4 additional money to the company's scholarship fund during the
22-5 remainder of that state fiscal year.
22-6 SECTION 23. Subsections (a), (e), and (g), Section 74.3012,
22-7 Property Code, are amended to read as follows:
22-8 (a) Notwithstanding and in addition to any other provision
22-9 of this chapter or other law, a local exchange company may deliver
22-10 reported money to a scholarship fund for urban students instead of
22-11 delivering the money to the comptroller [state treasurer] as
22-12 prescribed by Section 74.301.
22-13 (e) The comptroller [state treasurer] shall prescribe forms
22-14 and procedures governing this section, including forms and
22-15 procedures relating to:
22-16 (1) notice of presumed abandoned property;
22-17 (2) delivery of reported money to a scholarship fund;
22-18 and
22-19 (3) filing of a claim.
22-20 (g) [During the 1995-1996 fiscal year, the total amount of
22-21 money that may be transferred by all local exchange companies under
22-22 this section may not exceed $400,000.] During each [subsequent]
22-23 state fiscal year, the total amount of money that may be
22-24 transferred by all local exchange companies under this section may
22-25 not exceed the total amount of money transferred to rural
23-1 scholarship funds under Section 74.3011 during the previous state
23-2 fiscal year. The comptroller [state treasury] shall keep a record
23-3 of the total amount of money transferred annually. If the total
23-4 amount of money transferred during a state fiscal year equals the
23-5 amount allowed by this subsection, the comptroller [treasury] shall
23-6 notify each local exchange company that the company may not
23-7 transfer any additional money to the company's scholarship fund
23-8 during the remainder of that state fiscal year.
23-9 SECTION 24. Sections 74.304, 74.306, 74.307, and 74.308,
23-10 Property Code, are amended to read as follows:
23-11 Sec. 74.304. RESPONSIBILITY AFTER DELIVERY. (a) If
23-12 reported property is delivered to the comptroller, [State
23-13 Treasurer] the state shall assume custody of the property and
23-14 responsibility for its safekeeping.
23-15 (b) A holder who delivers property to the comptroller [State
23-16 Treasurer] in good faith is relieved of all liability to the extent
23-17 of the value of the property delivered for any claim then existing,
23-18 that may arise after delivery to the comptroller [State Treasurer],
23-19 or that may be made with respect to the property.
23-20 (c) If the holder delivers property to the comptroller
23-21 [State Treasurer] in good faith and, after delivery, a person
23-22 claims the property from the holder or another state claims the
23-23 property under its laws relating to escheat or unclaimed property,
23-24 the attorney general shall, on written notice of the claim, defend
23-25 the holder against the claim, and the holder shall be indemnified
24-1 from the unclaimed money received under this chapter or any other
24-2 statute requiring delivery of unclaimed property to the comptroller
24-3 [fund established in Section 74.601] against any liability on the
24-4 claim.
24-5 (d) The comptroller [State Treasurer] is not, in the absence
24-6 of negligence or mishandling of the property, liable to the person
24-7 who claims the property for damages incurred while the property or
24-8 the proceeds from the sale of the property are in the comptroller's
24-9 [treasurer's] possession. But in any event the liability of the
24-10 state is limited to the extent of the property delivered under this
24-11 chapter and remaining in the possession of the comptroller [State
24-12 Treasurer] at the time a suit is filed.
24-13 (e) For the purposes of this section, payment or delivery is
24-14 made in good faith if:
24-15 (1) payment or delivery was made in a reasonable
24-16 attempt to comply with this chapter;
24-17 (2) the holder [person] delivering the property was
24-18 not a fiduciary then in breach of trust with respect to the
24-19 property and had a reasonable basis for believing based on the
24-20 facts then known to the holder [person] that the property was
24-21 abandoned or inactive for purposes of this chapter; and
24-22 (3) there is no showing that the records under which
24-23 the delivery was made did not meet reasonable commercial standards
24-24 of practice in the industry.
24-25 (f) On delivery of a duplicate certificate or other evidence
25-1 of ownership to the comptroller [State Treasurer] under Subsection
25-2 (b) of Section 74.301, the holder and any transfer agent,
25-3 registrar, or other person acting for or on behalf of a holder in
25-4 executing or delivering the duplicate certificate are relieved of
25-5 all liability of every kind in accordance with this section to any
25-6 person, including any person acquiring the original certificate or
25-7 the duplicate of the certificate issued to the comptroller [State
25-8 Treasurer], for any losses or damages resulting to any person by
25-9 the issuance and delivery to the comptroller [State Treasurer] of
25-10 the duplicate certificate.
25-11 Sec. 74.306. UNCLAIMED PROPERTY HELD BY FEDERAL GOVERNMENT.
25-12 (a) If the federal government enacts a law that provides for the
25-13 discovery of unclaimed property held by the federal government and
25-14 that provides or makes that information available to the states,
25-15 the comptroller [State Treasurer] may pay to the federal government
25-16 from the unclaimed money received under this chapter or any other
25-17 statute requiring the delivery of unclaimed property to the
25-18 comptroller [fund] the proportional share of the necessary cost of
25-19 examining records.
25-20 (b) If the federal government delivers unclaimed property to
25-21 the comptroller [State Treasurer], this state shall hold the
25-22 federal government harmless from claims made by owners of the
25-23 property after the delivery.
25-24 Sec. 74.307. LIST OF OWNERS. (a) The comptroller [State
25-25 Treasurer] shall compile and revise each year, except as to amounts
26-1 reported in the aggregate, a [an alphabetical] list of the names
26-2 and last known addresses of the owners listed in the reports and
26-3 the amount credited to each account.
26-4 (b) The comptroller [State Treasurer] shall make the list
26-5 available for public inspection during all reasonable business
26-6 hours.
26-7 Sec. 74.308. PERIOD OF LIMITATION NOT A BAR. The
26-8 expiration, on or after September 1, 1987, of any period specified
26-9 by contract, statute, or court order, during which an action or
26-10 proceeding may be initiated or enforced to obtain payment of a
26-11 claim for money or recovery of property, does not prevent the money
26-12 or property from being presumed abandoned property and does not
26-13 affect any duty to file a report required by this chapter or to pay
26-14 or deliver abandoned property to the comptroller [State Treasurer].
26-15 SECTION 25. Sections 74.401 and 74.402, Property Code, are
26-16 amended to read as follows:
26-17 Sec. 74.401. SALE OF PROPERTY. (a) Except as provided by
26-18 Subsection (c), the comptroller [State Treasurer] shall sell at
26-19 public sale all personal property, other than money and marketable
26-20 securities, delivered to the comptroller [State Treasurer] in
26-21 accordance with Section 74.301. The comptroller [State Treasurer]
26-22 shall conduct the sale in the city in this state that the
26-23 comptroller [State Treasurer] determines affords the most favorable
26-24 market for the particular property.
26-25 (b) The comptroller [State Treasurer] shall sell the
27-1 property to the highest bidder. If the comptroller [State
27-2 Treasurer] determines that the highest bid is insufficient, the
27-3 comptroller [State Treasurer] may decline that bid and offer the
27-4 property for public or private sale.
27-5 (c) The comptroller [State Treasurer] is not required to
27-6 offer property for sale if the property belongs to a person with an
27-7 address outside this state or the comptroller [State Treasurer]
27-8 determines that the probable cost of the sale of the property
27-9 exceeds its value.
27-10 (d) If after investigation the comptroller [State Treasurer]
27-11 determines that property delivered from a safe deposit box or other
27-12 repository has insubstantial commercial value, the comptroller
27-13 [State Treasurer] may destroy or otherwise dispose of the property
27-14 at any time.
27-15 (e) A person may not maintain any action or proceeding
27-16 against the state, an officer of the state, or the holder of
27-17 property because of an action taken by the comptroller [State
27-18 Treasurer] under this section.
27-19 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
27-20 the day on which a public sale is held under Section 74.401, the
27-21 comptroller [State Treasurer] shall publish notice of the sale in a
27-22 newspaper of general circulation in the county where the sale is to
27-23 be held.
27-24 SECTION 26. Subsection (b), Section 74.403, Property Code,
27-25 is amended to read as follows:
28-1 (b) The comptroller [State Treasurer] shall execute all
28-2 documents necessary to complete the transfer of title.
28-3 SECTION 27. Sections 74.501 and 74.502, Property Code, are
28-4 amended to read as follows:
28-5 Sec. 74.501. [FILING OF] CLAIM FILED WITH COMPTROLLER.
28-6 (a) The comptroller shall review the validity of each claim filed
28-7 under this section. [Except as provided by Subsection (b), a claim
28-8 for property or proceeds from the sale of property delivered to the
28-9 State Treasurer under this chapter, including claims by other
28-10 states, must be filed with the State Treasurer.]
28-11 (b) If the comptroller determines that a claim is valid, the
28-12 comptroller or the comptroller's authorized agent shall approve [a
28-13 claim is for inactive property that was held by a depository before
28-14 being delivered to the State Treasurer,] the claim [may be filed
28-15 with the depository under Section 74.502]. If the claim is for
28-16 money and has been approved under this section, the comptroller
28-17 shall pay the claim. If a claim is for personal property other
28-18 than money and has been approved under this section, the
28-19 comptroller shall deliver the property to the claimant unless the
28-20 comptroller has sold the property. If the property has been sold
28-21 under Section 74.401, the comptroller shall pay to the claimant the
28-22 proceeds from the sale.
28-23 (c) All claims to which this section applies must be filed
28-24 in accordance with procedures, contain the information, and be on
28-25 forms prescribed by the comptroller [State Treasurer].
29-1 Sec. 74.502. CLAIM FILED WITH HOLDER [DEPOSITORY]. (a) [If
29-2 inactive property held by a depository under Chapter 73 is
29-3 delivered to the State Treasurer under Section 74.301, a claim may
29-4 be filed with the depository except that any claim by another state
29-5 must be filed with the State Treasurer. The State Treasurer shall
29-6 prescribe forms and procedures for filing claims with depositories.]
29-7 [(b)] If a claim is filed with a holder [depository] under
29-8 this section and the holder [depository] determines in good faith
29-9 that the claim is valid, the holder [depository] may pay the amount
29-10 of the claim.
29-11 (b) The comptroller shall reimburse the holder for a valid
29-12 claim paid under this section.
29-13 (c) The request from a holder for reimbursement must be
29-14 filed in accordance with procedures and on forms prescribed by the
29-15 comptroller. [If the amount paid under Subsection (b) is $100 or
29-16 less, the State Treasurer shall reimburse the depository on receipt
29-17 of a written statement subscribed and sworn to by an officer of the
29-18 depository that states:]
29-19 [(1) the name and address of the person to whom
29-20 payment was made; and]
29-21 [(2) that the depository believes in good faith that
29-22 the claim is valid.]
29-23 [(d) If the amount paid under Subsection (b) is more than
29-24 $100, the State Treasurer shall examine the claim and any
29-25 supporting affidavit or evidence of the claim. Before the State
30-1 Treasurer may reimburse a depository for a claim under this
30-2 subsection, the claim must be approved and signed by the State
30-3 Treasurer.]
30-4 SECTION 28. Section 74.504, Property Code, is amended to
30-5 read as follows:
30-6 Sec. 74.504. HEARING. (a) The comptroller [State
30-7 Treasurer] may hold a hearing and receive evidence concerning a
30-8 claim filed under this subchapter.
30-9 (b) If the comptroller [State Treasurer] considers that a
30-10 hearing is necessary to determine the validity of a claim, the
30-11 comptroller [State Treasurer] shall sign the statement of the
30-12 findings and the decision on the claim. The statement shall report
30-13 the substance of the evidence heard and the reasons for the
30-14 decision. The statement is a public record.
30-15 (c) If the comptroller [State Treasurer] determines that a
30-16 claim is valid, the comptroller [State Treasurer] shall approve and
30-17 sign the claim.
30-18 SECTION 29. Subsection (c), Section 74.506, Property Code,
30-19 is amended to read as follows:
30-20 (c) An appeal under this section must be made by filing suit
30-21 against the state in a district court in Travis County, Texas[, or
30-22 in the county in which the claimed funds were deposited]. The
30-23 state's immunity from suit without consent is abolished with
30-24 respect to suits brought under this section.
30-25 SECTION 30. Sections 74.507, 74.508, and 74.509, Property
31-1 Code, are amended to read as follows:
31-2 Sec. 74.507. FEE FOR RECOVERY. (a) A person who informs a
31-3 potential claimant that the claimant may be entitled to claim
31-4 property that is reportable to the comptroller [State Treasurer]
31-5 under this chapter, that has been reported to the comptroller
31-6 [State Treasurer], or that is in the possession of the comptroller
31-7 [State Treasurer,] may not contract for or receive from the
31-8 claimant for services an amount that exceeds 10 percent of the
31-9 value of the property recovered. If the property involved is
31-10 mineral proceeds, the amount for services may not include a portion
31-11 of the underlying minerals or any production payment, overriding
31-12 royalty, or similar payment.
31-13 (b) The person who informs a potential claimant and by
31-14 contract or other written agreement is to receive a percentage of
31-15 the value of the property may not file or receive a form to claim
31-16 or act on behalf of a claimant.
31-17 Sec. 74.508. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
31-18 PROCEDURE. (a) At any time after property has been paid or
31-19 delivered to the comptroller [State Treasurer] under this chapter
31-20 [Act], another state may recover the property if:
31-21 (1) the property was subjected to custody by this
31-22 state because the records of the holder did not reflect the last
31-23 known address of the apparent owner when the property was presumed
31-24 abandoned under this chapter [Act], and the other state establishes
31-25 that the last known address of the apparent owner or other person
32-1 entitled to the property was in that state and under the laws of
32-2 that state the property escheated to or was subject to a claim of
32-3 abandonment by that state;
32-4 (2) the last known address of the apparent owner or
32-5 other person entitled to the property, as reflected by the records
32-6 of the holder are in the other state and under the laws of that
32-7 state the property has escheated to or become subject to a claim of
32-8 abandonment by that state;
32-9 (3) the records of the holder were erroneous in that
32-10 they did not accurately reflect the actual owner of the property
32-11 and the last known address of the actual owner is in the other
32-12 state and under the laws of that state the property escheated to or
32-13 was subject to a claim of abandonment by that state;
32-14 (4) the property was subjected to custody by this
32-15 state under Subdivision (6) of Subsection (a) of Section 72.001 and
32-16 under the laws of the state of domicile of the holder the property
32-17 has escheated to or become subject to a claim of abandonment by
32-18 that state; or
32-19 (5) the property is the sum payable on a traveler's
32-20 check, money order, or other similar instrument that was subjected
32-21 to custody by this state under Subdivision (4) and the instrument
32-22 was purchased in the other state and under the laws of that state
32-23 the property escheated to or became subject to a claim of
32-24 abandonment by that state.
32-25 (b) The claim of another state to recover escheated or
33-1 abandoned property must be presented in a form prescribed by the
33-2 comptroller [State Treasurer], who shall decide the claim within 90
33-3 days after it is presented. The comptroller [State Treasurer]
33-4 shall allow the claim if he determines that the other state is
33-5 entitled to the abandoned property under Subsection (a).
33-6 Sec. 74.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY.
33-7 A [The State Treasurer shall charge a person claiming unclaimed
33-8 property a] handling fee may be deducted from the amount of the
33-9 claim payment if [ownership of the property is reinstated and] the
33-10 payment is at least $100 [value of the property is $50 or more].
33-11 SECTION 31. Subchapter G, Chapter 74, Property Code, is
33-12 amended to read as follows:
33-13 SUBCHAPTER G. UNCLAIMED MONEY [FUND]
33-14 Sec. 74.601. UNCLAIMED MONEY [FUND]. (a) The comptroller
33-15 [State Treasurer] shall maintain a record that documents [fund
33-16 known as the] unclaimed money received under this chapter or any
33-17 other statute requiring the delivery of unclaimed property to the
33-18 comptroller [fund].
33-19 (b) The comptroller [State Treasurer] shall deposit to the
33-20 credit of the general revenue fund:
33-21 (1) all funds, including marketable securities,
33-22 delivered to the comptroller [State Treasurer] under this chapter
33-23 or any other statute requiring the delivery of unclaimed property
33-24 to the comptroller [State Treasurer];
33-25 (2) all proceeds from the sale of any property,
34-1 including marketable securities, under this chapter;
34-2 (3) all funds that have escheated to the state under
34-3 Chapter 71, except that funds relating to escheated real property
34-4 shall be deposited according to Section 71.202; and
34-5 (4) any income derived from investments of the
34-6 unclaimed money [fund].
34-7 (c) The comptroller [State Treasurer] shall keep a separate
34-8 record and accounting for delivered unclaimed property, other than
34-9 money, before its sale.
34-10 (d) Except as provided by Subsection (e), the comptroller
34-11 [State Treasurer] shall from time to time invest the amount of [in
34-12 the] unclaimed money [fund] in investments approved by law for the
34-13 investment of state funds.
34-14 (e) The comptroller [State Treasurer] may from time to time
34-15 sell securities [in the fund], including stocks, bonds, and mutual
34-16 funds, received under this chapter or any other statute requiring
34-17 the delivery of unclaimed property to the comptroller and use the
34-18 proceeds to buy, exchange, invest, or reinvest in marketable
34-19 securities. When making or selling the investments, the
34-20 comptroller [State Treasurer] shall exercise the judgment and care
34-21 of a prudent person.
34-22 (f) The comptroller [State Treasurer] shall keep a separate
34-23 record and accounting for securities delivered, sold, purchased, or
34-24 exchanged and the proceeds and earnings from the securities.
34-25 Sec. 74.602. USE OF MONEY [FUND]. [(a)] Except as provided
35-1 by Section 381.004, Local Government Code [Subsection (b)], the
35-2 comptroller [State Treasurer] shall use the unclaimed money
35-3 received under this chapter or any other statute requiring the
35-4 delivery of unclaimed property to the comptroller [fund] to pay the
35-5 claims of persons or states establishing ownership of property in
35-6 the possession of the comptroller [State Treasurer] under this
35-7 chapter or under any other unclaimed property or escheat statute.
35-8 [(b) Each fiscal year after deducting funds sufficient to
35-9 pay anticipated expenses and claims of the unclaimed money fund,
35-10 the state treasurer shall transfer:]
35-11 [(1) half of the balance of the unclaimed money fund
35-12 to the foundation school fund;]
35-13 [(2) $1.2 million to the state ethics fund;]
35-14 [(3) to each county of the state that requests, an
35-15 amount equal to any capital credits in the fund, less anticipated
35-16 claims, that were delivered under this chapter to the state
35-17 treasurer by an electric cooperative corporation on behalf of the
35-18 corporation's members in that county, with the money to be used
35-19 only to carry out a program under Section 381.004, Local Government
35-20 Code; and]
35-21 [(4) the remainder to the General Revenue Fund.]
35-22 [(c) The State Treasurer and the attorney general may use
35-23 the unclaimed money fund generally for the enforcement and
35-24 administration of this title, including the expenses of sale,
35-25 forms, notices, examinations, travel, court costs, supplies,
36-1 equipment, employment of necessary personnel, and any other
36-2 necessary expenses.]
36-3 Sec. 74.603. AUDIT; APPROPRIATION. The unclaimed money
36-4 received under this chapter or any other statute requiring the
36-5 delivery of unclaimed property to the comptroller [fund] is subject
36-6 to audit by the State Auditor and to appropriation by the
36-7 legislature for enforcing and administering this title.
36-8 SECTION 32. Sections 74.701 and 74.702, Property Code, are
36-9 amended to read as follows:
36-10 Sec. 74.701. RULES. The comptroller [State Treasurer] may
36-11 adopt rules necessary to carry out this title.
36-12 Sec. 74.702. EXAMINATION OF RECORDS. (a) To enforce this
36-13 chapter and to determine whether reports have been made as required
36-14 by this chapter, the comptroller [State Treasurer], the attorney
36-15 general, or an authorized agent of either, at any reasonable time,
36-16 may examine the books and records of any holder.
36-17 (b) The comptroller [State Treasurer], the attorney general,
36-18 or an agent of either may not make public any information obtained
36-19 by an examination made under this section and may not disclose that
36-20 information except in the course of a judicial proceeding,
36-21 authorized by this chapter, in which the state is a party or
36-22 pursuant to an agreement with another state allowing joint audits
36-23 or the exchange of information obtained under this section.
36-24 SECTION 33. Subsection (a), Section 74.703, Property Code,
36-25 is amended to read as follows:
37-1 (a) The comptroller [State Treasurer] and the attorney
37-2 general may employ, in the office of either official, additional
37-3 personnel necessary to enforce this title.
37-4 SECTION 34. Sections 74.704 and 74.705, Property Code, are
37-5 amended to read as follows:
37-6 Sec. 74.704. ASSISTANCE IN ENFORCEMENT. If the comptroller
37-7 [State Treasurer] or the attorney general requests, the State
37-8 Auditor, Banking Commissioner of Texas [state comptroller, banking
37-9 commissioner], securities commissioner, [insurance] commissioner of
37-10 insurance, savings and loan commissioner, Credit Union Commission,
37-11 Department of Public Safety of the State of Texas, or any district
37-12 or county attorney shall assist the comptroller [State Treasurer]
37-13 or attorney general in enforcing this title.
37-14 Sec. 74.705. INTEREST[, ATTORNEY'S FEES, AND PENALTIES].
37-15 [(a)] A holder [person] who fails to pay or deliver property
37-16 within the time prescribed by this chapter shall pay to the
37-17 comptroller [State Treasurer] interest, at an annual rate of 10
37-18 percent [the judgment rate of interest as published by the consumer
37-19 credit commissioner in the Texas Register], on the property [or
37-20 value of the property] from the date the property should have been
37-21 paid or delivered until the date the property is actually paid or
37-22 delivered.
37-23 [(b) If the State Treasurer presents a claim for unclaimed
37-24 property to a person who fails timely to pay or deliver the
37-25 property and the just amount of unclaimed property owed has not
38-1 been tendered before the 31st day after the date the claim is
38-2 presented, the State Treasurer may, on approval of a court of
38-3 competent jurisdiction in Travis County, recover reasonable
38-4 attorney's fees from the person in addition to unclaimed property
38-5 and interest due.]
38-6 [(c) A person commits an offense if the person:]
38-7 [(1) wilfully fails to file a report required by this
38-8 chapter;]
38-9 [(2) refuses to permit examination of records in
38-10 accordance with this chapter;]
38-11 [(3) makes a deduction from or a service charge
38-12 against a dormant account or dormant deposit of funds; or]
38-13 [(4) violates any other provision of this title.]
38-14 [(d) An offense under this section is punishable by:]
38-15 [(1) a fine of not less than $500 nor more than
38-16 $1,000;]
38-17 [(2) confinement in jail for a term not to exceed six
38-18 months; or]
38-19 [(3) both the fine and confinement.]
38-20 [(e) In addition to a criminal penalty, a person who commits
38-21 an offense under Subsection (c) is subject to a civil penalty not
38-22 to exceed $100 for each day of the violation. The attorney general
38-23 shall collect the civil penalty by bringing suit on behalf of the
38-24 state in a district court in Travis County, Texas.]
38-25 SECTION 35. Subchapter H, Chapter 74, Property Code, is
39-1 amended by adding Sections 74.706 through 74.710 to read as
39-2 follows:
39-3 Sec. 74.706. PENALTY. A penalty equal to five percent of
39-4 the value of the property due shall be imposed on a holder who
39-5 fails to pay or deliver property within the time prescribed by this
39-6 chapter. If a holder fails to pay or deliver property before the
39-7 31st day after the date the property is due, an additional penalty
39-8 equal to five percent of the value of the property due shall be
39-9 imposed.
39-10 Sec. 74.707. WAIVER OR ABATEMENT OF PENALTY OR INTEREST.
39-11 (a) The comptroller may waive penalty or interest imposed on
39-12 delinquent property if the comptroller determines that the holder
39-13 has made a good faith effort to comply with Chapters 72-75.
39-14 (b) The comptroller may provide for periods during which a
39-15 holder of delinquent property may report and remit the unclaimed
39-16 property without paying a penalty or interest.
39-17 Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on
39-18 June 30 holds property presumed abandoned under Chapters 72-75
39-19 holds the property in trust for the benefit of the state on behalf
39-20 of the missing owner and is liable to the state for the full value
39-21 of the property, plus any accrued interest and penalty. A holder
39-22 is not required by this section to segregate or establish trust
39-23 accounts for the property provided the property is timely delivered
39-24 to the comptroller in accordance with Section 74.301.
39-25 Sec. 74.709. SUIT TO COMPEL DELIVERY OF PROPERTY AND CIVIL
40-1 PENALTIES. (a) On request of the comptroller, the attorney
40-2 general shall bring an action in district court, in the name of the
40-3 state, to compel a holder to deliver property or to file a property
40-4 report.
40-5 (b) Venue for a suit brought under this section is in Travis
40-6 County.
40-7 (c) The fact that a suit seeks enforcement of this section
40-8 from more than one holder is not grounds for an objection
40-9 concerning misjoinder of parties or causes of action.
40-10 (d) When introduced into evidence, the verified property
40-11 report, unless rebutted, is sufficient evidence that the property
40-12 is abandoned and subject to delivery under this chapter and for
40-13 entry of a judgment transferring custody of the property to the
40-14 comptroller.
40-15 (e) The attorney general, on behalf of the comptroller, may
40-16 recover reasonable attorney's fees from the holder in addition to
40-17 recovery of any unclaimed property accrued or a penalty or interest
40-18 due.
40-19 (f) In addition to a penalty or interest assessed on
40-20 delinquent property, a holder who fails to pay or deliver property
40-21 or who fails to file a property report within the time prescribed
40-22 by this chapter is subject to a civil penalty not to exceed $100
40-23 for each day of violation.
40-24 Sec. 74.710. CRIMINAL OFFENSE. (a) A holder commits an
40-25 offense if the holder wilfully violates this chapter, including:
41-1 (1) failing to file a report in accordance with this
41-2 chapter;
41-3 (2) failing to pay or deliver property in accordance
41-4 with this chapter; or
41-5 (3) refusing to permit examination of records in
41-6 accordance with this chapter.
41-7 (b) An offense under this section is a Class B misdemeanor.
41-8 SECTION 36. Subchapter A, Chapter 75, Property Code, is
41-9 amended by adding Section 75.002 to read as follows:
41-10 Sec. 75.002. TRANSFER AND PURCHASE OF MINERAL INTEREST ON
41-11 MINERAL PROCEEDS. A person purchasing mineral proceeds of an owner
41-12 whose name has been reported or is reportable to the comptroller
41-13 shall provide documentation required by the comptroller to
41-14 substantiate that the transfer is executed by the reported owner or
41-15 the reported owner's legal agent.
41-16 SECTION 37. Subsection (c), Section 91.403, Natural
41-17 Resources Code, is amended to read as follows:
41-18 (c) The payor's obligation to pay interest and the payee's
41-19 right to receive interest under Subsection (a) of this section
41-20 terminate on delivery of the proceeds and accumulated interest to
41-21 the comptroller [State Treasurer] as provided by Title 6, Property
41-22 Code.
41-23 SECTION 38. The following provisions are repealed:
41-24 (1) Section 571.030, Government Code;
41-25 (2) Sections 73.004, 74.204, 74.305, and 74.505,
42-1 Property Code; and
42-2 (3) Section 74.503, Property Code, as amended by
42-3 Chapters 36 and 851, Acts of the 73rd Legislature, 1993.
42-4 SECTION 39. (a) The change in law made by this Act applies
42-5 only to an offense committed on or after the effective date of this
42-6 Act. For purposes of this section, an offense is committed before
42-7 the effective date of this Act if any element of the offense occurs
42-8 before that date. An offense committed before the effective date
42-9 of this Act is covered by the law in effect when the offense was
42-10 committed, and the former law is continued in effect for that
42-11 purpose.
42-12 (b) The change in law under Section 74.705, Property Code,
42-13 as amended by this Act, applies only to the rate for interest that
42-14 accrues under that section on or after the effective date of this
42-15 Act. The rate for interest that accrued under that section before
42-16 the effective date of this Act is governed by the law as it existed
42-17 at the time the interest accrued, and that law is continued in
42-18 effect for that purpose.
42-19 (c) On the effective date of this Act, the comptroller shall
42-20 transfer to the general revenue fund money in the unclaimed money
42-21 fund.
42-22 SECTION 40. This Act takes effect September 1, 1997.
42-23 SECTION 41. The importance of this legislation and the
42-24 crowded condition of the calendars in both houses create an
42-25 emergency and an imperative public necessity that the
43-1 constitutional rule requiring bills to be read on three several
43-2 days in each house be suspended, and this rule is hereby suspended.
43-3 COMMITTEE AMENDMENT NO. 1
43-4 Amend S.B. 700 as follows:
43-5 (1) On page 20, line 23, strike "Each" and substitute:
43-6 "Except as provided by subsection (c), each"
43-7 (2) On page 21, line 9, insert the following subsection (c)
43-8 to SECTION 21: "(c) If the property subject to delivery under
43-9 subsection (a) is the contents of a safe deposit box, the
43-10 comptroller may instruct a holder to deliver the property on a
43-11 specified date after November 1st but before June 1st of the
43-12 following year."
43-13 (3) On page 26, line 1, strike "a [an alphabetical]" and
43-14 substitute: "an alphabetical"
43-15 (4) On page 42, line 22, insert the following subsection (d)
43-16 to SECTION 39: "(d) The change in law under Sections 74.201 and
43-17 74.202, Property Code, as amended by this Act applies to any notice
43-18 requirement provided under Section 74.201 on or after September 1,
43-19 1997, including notice requirements for property reported prior to
43-20 September 1, 1997."
43-21 (5) On page 25, line 24, insert the following Section
43-22 74.3061 to SECTION 24: "Sec. 74.3061. ESCHEAT OF FUNDS IN THE
43-23 POSSESSION OF THE UNITED STATES. (a) In the event any money is
43-24 due to a resident of this state in the nature of a refund, rebate
43-25 or other overpayment of taxes or fees to the United States, with
44-1 respect to which the resident is likely to have his rights to
44-2 secure such refund or rebate barred by a statute of limitations, or
44-3 if for any reason at least three years has elapsed after the date
44-4 of which the resident could have filed a timely claim for said
44-5 refund or rebate, the comptroller is appointed agent of such
44-6 resident to apply for said refund or rebate, and is authorized to
44-7 do any act which a natural person could do to recover said money.
44-8 When the comptroller files an application or initiates any other
44-9 proceeding to secure said refund or rebate, the comptroller is
44-10 coupled with an interest in the money sought and money recovered.
44-11 All property within this provision, including all principal and
44-12 interest accruing thereon, is declared to have escheated and to
44-13 have become the property of the state.
44-14 (b) The funds escheated by the state pursuant to this
44-15 provision shall be noticed as provided by Section 74.201. Title to
44-16 any such property shall be transferred by the state to any persons
44-17 who in accordance with subchapter F can show that the property
44-18 belonged to them immediately prior to the escheat or that they were
44-19 heirs to those funds immediately prior to the escheat."
44-20 Woolley