Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By: Armbrister S.B. No. 700
A BILL TO BE ENTITLED
AN ACT
1-1 relating to unclaimed property.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 571.030, Government Code, is repealed to
1-4 conform to Section 11.04, Chapter 4 (S.B. 3), Acts of 71st
1-5 Legislature, 1st Called Session, 1991.
1-6 SECTION 2. Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15,
1-7 and 16, Article 4.08, Insurance Code, are amended to conform to
1-8 Section 11.04, Chapter 4 (S.B. 3), Acts of the 71st Legislature,
1-9 Regular Session, 1995, and to Chapter 992 (S.B. 20), Acts of the
1-10 74th Legislature, Regular Session to read as follows:
1-11 Sec. 4. Every such life insurance company shall on or before
1-12 the first day of November of each year make a report in writing to
1-13 the State Comptroller [Treasurer of Texas] of all unclaimed funds,
1-14 as hereinbefore defined, held and owing by it on the 30th day of
1-15 June next preceding, provided, however, such report shall not be
1-16 required to include amounts which have been paid to another state
1-17 or jurisdiction under any escheat or unclaimed funds law thereof.
1-18 Such report shall be signed and sworn to by an officer of such
1-19 company and shall set forth: (1) in alphabetical order the full
1-20 name of the insured or annuitant, the last known address according
1-21 to the company's records, and the policy or contract number; (2)
1-22 the amount appearing from the company's records to be due on such
1-23 policy or contract; (3) the date such unclaimed funds became
2-1 payable (4) the name and last known address of each beneficiary or
2-2 other person who, according to the company's records, may have an
2-3 interest in such unclaimed funds; and (5) such other identifying
2-4 information as the State Comptroller [Treasurer] may require;
2-5 provided, however, that individual amounts of less than $50 may be
2-6 reported in the aggregate without furnishing any of the information
2-7 required in Clauses (1), (2), (3), (4) and (5) of this Section.
2-8 Each life insurance company required to file a report under this
2-9 Section shall maintain a record of the name and last known address,
2-10 if any, of the insured, annuitant, or beneficiary, the policy or
2-11 contract number, and the amount appearing from the company's
2-12 records to be due on the policy or contract for 10 years after the
2-13 funds are reportable, whether or not the amount was reported in the
2-14 aggregate under this Section. The State Comptroller [Treasurer]
2-15 may provide by rule for a shorter holding period for these records.
2-16 Sec. 5. (a) In the calendar year following the submission
2-17 of the reports required under Section 4 of this Article and the
2-18 payment to the State Comptroller [Treasurer] under Section 65 of
2-19 this Article of all unclaimed funds described in the report, the
2-20 State Comptroller [Treasurer] may cause to be published notices
2-21 based on the information contained in such reports. Except as
2-22 provided by Subsection (d) of this Section, such a notice shall be
2-23 published once in a newspaper published or having a general
2-24 circulation in each county of this state in which is located the
2-25 last known address of a person appearing to be entitled to such
3-1 funds.
3-2 (b) Each such notice shall set forth in alphabetical order
3-3 the names of the insureds or annuitants under policies or contracts
3-4 and the city of last known address, if any. The notice shall also
3-5 state that such unclaimed funds have been delivered to the State
3-6 Comptroller [Treasurer] on the preceding November 1 and that those
3-7 funds may be claimed from the State Comptroller [Treasurer].
3-8 (c) The publication requirements of chapter 74, Property
3-9 Code apply to this Article [It shall not be obligatory upon the
3-10 State Treasurer to publish any item of less than Fifty Dollars
3-11 ($50) in such notice, unless the State Treasurer deems such
3-12 publication to be in the public interest. Expenses incurred for
3-13 the publication of notice may be charged against the funds
3-14 delivered to the State Treasurer under Section 6 of this Article].
3-15 (d) The State Comptroller [Treasurer] may use a method of
3-16 publishing notice that is different from that prescribed by
3-17 Subsection (a) of this Section if the State Comptroller [Treasurer]
3-18 determines that the different method would be as likely as the
3-19 prescribed method to give actual notice to the person required to
3-20 be named in the notice.
3-21 Sec. 6. All unclaimed funds contained in the report required
3-22 to be filed by Section 4 of this Article shall be delivered to the
3-23 State Comptroller [Treasurer] on or before November 1 with the
3-24 report.
3-25 Sec. 7. Upon the payment of such unclaimed funds to the
4-1 State Comptroller [Treasurer] the state shall assume, for the
4-2 benefit of those entitled to receive the same and for the safety of
4-3 the money so paid, the custody of such unclaimed funds, and the
4-4 life insurance company making such payment shall immediately and
4-5 thereafter be relieved of and held harmless by the state from any
4-6 and all liability for any claim or claims which exist at such time
4-7 with reference to such unclaimed funds or which thereafter may be
4-8 made or may come into existence on account of or in respect to any
4-9 such unclaimed funds.
4-10 Sec. 8. (a) Any life insurance company which in good faith
4-11 has paid monies to the State Comptroller [Treasurer] pursuant to
4-12 this Article is relieved of all liability for a claim that exists
4-13 at the time of delivery, that arises after delivery to the State
4-14 Comptroller [Treasurer], or that is made with respect to the
4-15 property, to the extent of the value of the property delivered.
4-16 (b) If a life insurance company in good faith delivers
4-17 property to the State Comptroller [Treasurer] and after delivery a
4-18 person claims the property from the life insurance company or
4-19 another state claims the property under its laws relating to
4-20 escheat or unclaimed property, the attorney general shall, on
4-21 written notice of the claim, defend the life insurance company
4-22 against the claim. The life insurance company shall be indemnified
4-23 from the unclaimed money received [fund established] under Chapter
4-24 74 [Section 74.601], Property Code, or any other statute requiring
4-25 the delivery of unclaimed property to the State Comptroller,
5-1 against any liability on the claim.
5-2 Sec. 9. Upon receipt of any unclaimed funds from such life
5-3 insurance companies by the State Comptroller [Treasurer], the State
5-4 Comptroller [Treasurer] shall deposit those funds in the general
5-5 revenue [unclaimed money] fund [established by Section 74.601,
5-6 Property Code]. Unclaimed money [Money] received under Chapter 74,
5-7 Property Code or any other statute requiring the delivery of
5-8 unclaimed money to the State Comptroller [in the unclaimed money
5-9 fund] may be appropriated by the legislature to enforce and
5-10 administer this Article.
5-11 Sec. 10. Any person claiming to be entitled to unclaimed
5-12 funds paid to the State Comptroller [Treasurer] may file a claim at
5-13 any time with such official. The State Comptroller [Treasurer]
5-14 shall possess full and complete authority to accept or reject any
5-15 such claim. If he rejects such claim or fails to act thereon with
5-16 ninety days after receipt of such claim, the claimant may institute
5-17 suit therefor in a court of competent jurisdiction naming the State
5-18 Comptroller [Treasurer] as defendant.
5-19 Sec. 11. Any claim which is accepted by the State
5-20 Comptroller [Treasurer] or ordered to be paid by him by a court of
5-21 competent jurisdiction shall be paid out of the unclaimed money
5-22 received under Chapter 74, Property Code, or any other statute
5-23 requiring the delivery of unclaimed property to the State
5-24 Comptroller [special trust fund in his custody, or in the event
5-25 such special trust fund shall be insufficient, out of the general
6-1 funds of the state].
6-2 Sec. 12. The State Comptroller [Treasurer] shall keep in his
6-3 office a public record of each payment of unclaimed funds received
6-4 by him from any life insurance company. Except as to amounts
6-5 reported in the aggregate, such record shall show in alphabetical
6-6 order the name and last known address of each insured or annuitant,
6-7 and of each beneficiary or other person who, according to the
6-8 company's reports, may have an interest in such unclaimed funds,
6-9 and with respect to each policy or contract, its number, the name
6-10 of the company, and the amount due.
6-11 Sec. 14. The enforcement provisions of Chapter 74, Property
6-12 Code, shall apply to this Article.
6-13 [(a) A person who fails to pay or deliver property within
6-14 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), or 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. The State Comptroller [Treasurer] may adopt rules
7-14 necessary to carry out this Article.
7-15 Sec. 16. The State Comptroller [Treasurer] may examine the
7-16 records of a life insurance company to determine if the life
7-17 insurance company is complying with this Article. The State
7-18 Comptroller [Treasurer] may not make public any information
7-19 obtained by an examination made under this Section.
7-20 SECTION 3. Section 117.002, Local Government Code, is
7-21 amended to read as follows:
7-22 Section 117.002. TRANSFER OF UNCLAIMED FUNDS TO STATE
7-23 COMPTROLLER [STATE TREASURER]. Any funds deposited under this
7-24 Chapter that are presumed abandoned under Chapter 72, 73, or 75,
7-25 Property Code, shall be reported and delivered by the county or
8-1 district clerk to the comptroller [State Treasurer] without further
8-2 action by any court. The dormancy period for funds deposited under
8-3 this chapter 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 the comptroller
8-9 [State Treasurer] to promote the public interest in disposing of
8-10 unclaimed funds.
8-11 SECTION 4. Section 381.004, Local Government Code, is
8-12 amended to conform to Section 11.04, Chapter 4 (S.B. 3), Acts of
8-13 the 71st Legislature, Regular Session, 1995, and to Chapter 992
8-14 (S.B. 20), Acts of the 74th Legislature, Regular Session adding
8-15 Subsection (e) to read as follows:
8-16 (e) Unclaimed property amounts received by the comptroller
8-17 under Chapter 74, Property Code may be appropriated by the
8-18 legislature for a county to carry out a program created pursuant to
8-19 this section. Funds appropriated shall be available upon request
8-20 each fiscal year and may not exceed an amount equal to the capital
8-21 credits received by the comptroller from an electric cooperative
8-22 corporation on behalf of the corporation's members in the county
8-23 requesting the funds less funds sufficient to pay anticipated
8-24 expenses and claims. The state comptroller shall transfer
8-25 requested funds after deducting funds sufficient to pay anticipated
9-1 expenses and claims.
9-2 SECTION 5. Section 71.101(a), Property Code, is amended to
9-3 read as follows:
9-4 (a) If any person, including the attorney general, the
9-5 comptroller [State Treasurer], or a district attorney, criminal
9-6 district attorney, county attorney, county clerk, district clerk,
9-7 or attorney ad litem is informed or has reason to believe that real
9-8 or personal property is subject to escheat under this chapter, the
9-9 person may file a sworn petition requesting the escheat of the
9-10 property and requesting a writ of possession for the property.
9-11 SECTION 6. Section 71.103(c), Property Code, is amended to
9-12 read as follows:
9-13 (c) The comptroller [State Treasurer] is an indispensable
9-14 party to any judicial or administrative proceeding concerning the
9-15 disposition and handling of property that is the subject of an
9-16 escheat proceeding and must be made a party to the proceeding by
9-17 personal service of citation.
9-18 SECTION 7. Section 71.301(c), Property Code, is amended to
9-19 read as follows:
9-20 (c) A copy of the petition shall be served on the
9-21 comptroller [State Treasurer], who shall represent the interests of
9-22 the state. As the comptroller [State Treasurer] elects and with
9-23 the approval of the attorney general, the county attorney or
9-24 criminal district attorney for the county, or the district attorney
9-25 for the district shall represent the comptroller [State Treasurer].
10-1 SECTION 8. Section 71.304(a), Property Code, is amended to
10-2 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 9. Section 72.102(b) and (c), Property Code, is
10-7 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 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 10. 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 law under this title, a [A] holder of abandoned
11-7 property shall preserve the property and may not at any time, by
11-8 any procedure, including a deduction for service, maintenance, or
11-9 other charge, transfer or convert to the profits or assets of the
11-10 holder, or otherwise reduce the original value of the property as
11-11 of the date of the last transaction or contact [transfer, convert,
11-12 or reduce the property to the profits or assets of the holder].
11-13 SECTION 11. The heading for Chapter 73, Property Code, is
11-14 amended to read as follows:
11-15 CHAPTER 73.
11-16 PROPERTY HELD BY FINANCIAL INSTITUTIONS
11-17 [INACTIVE ACCOUNTS HELD BY BANKING ORGANIZATIONS]
11-18 SECTION 12. Section 73.001(a), (c) and (d), Property Code,
11-19 is amended to read as follows:
11-20 (a) In this chapter:
11-21 (1) "Account" means funds deposited with a depository
11-22 in a checking, savings, or other interest-bearing account
11-23 [interest, or savings account].
11-24 (2) "Check" includes a draft, cashier's check,
11-25 certified check, registered check and any other similar
12-1 instruments.
12-2 (3) "Depositor" means a person who has an ownership
12-3 interest in an account.
12-4 ["Owner" means a person who has an ownership interest
12-5 in a safe deposit box.]
12-6 (4) "Holder" means a depository.
12-7 (5) "Owner" means a person who has an ownership
12-8 interest in a safe deposit box.
12-9 (c) Any property, other than an account, check or safe
12-10 deposit box, held by a depository is subject to the abandonment
12-11 provisions of Chapter 72.
12-12 (d) A holder of accounts, checks or safe deposit boxes
12-13 presumed abandoned under this chapter is subject to the procedures
12-14 of Chapter 74.
12-15 SECTION 13. Section 73.002, Property Code, is amended to
12-16 read as follows:
12-17 Sec. 73.002. DEPOSITORY. For the purposes of this chapter,
12-18 a depository is a bank, savings and loan association, credit union,
12-19 or other banking organization that:
12-20 (1) receives and holds a deposit of money or the
12-21 equivalent of money in banking practice or other personal property
12-22 in this state; or
12-23 (2) receives and holds such a deposit or other
12-24 personal property in another state for a person whose last known
12-25 residence is in this state.
13-1 SECTION 14. Section 73.003, Property Code is amended to read
13-2 as follows:
13-3 Sec. 73.003. PRESERVATION OF INACTIVE ACCOUNT OR DEPOSIT
13-4 BOX. (a) A depository shall preserve an account that is inactive
13-5 and the contents of a deposit box that is inactive. The depository
13-6 may not at any time by any procedure, including the imposition of a
13-7 service charge, transfer, convert, or reduce such an account or the
13-8 contents of such a box to the profits or assets of the depository
13-9 as of the date the account or safe deposit box becomes inactive.
13-10 (b) An account is inactive if for more than one year there
13-11 has not been a debit or credit to the account because of an act by
13-12 the depositor or an agent of the depositor, other than the
13-13 depository, and the depositor has not communicated with the
13-14 depository. [A safe deposit box is inactive if the rental on the
13-15 box is delinquent for more than one year].
13-16 (c) This section does not affect the provisions of Texas
13-17 Revised Civil Statutes art. 342-8.101 et seq. (Vernon Supp. 1996)
13-18 (Texas Banking Act of 1995) [Article 6, Chapter IX, The Texas
13-19 Banking Code of 1943 (Article 342-906, Vernon's Texas Civil
13-20 Statutes)].
13-21 [(d) For purposes of presumption of abandonment under
13-22 Section 73.101, the five-year period of inactivity for accounts
13-23 begins on the date of the last transaction or correspondence by the
13-24 depositor. The five-year period of inactivity on a of safe deposit
13-25 box begins on the date the rental was due but not paid.]
14-1 SECTION 15. Section 73.004, Property Code is repealed.
14-2 SECTION 16. Section 73.101, Property Code is amended to read
14-3 as follows:
14-4 (a) An account or safe deposit box is presumed abandoned if:
14-5 (1) the account or safe deposit box has been inactive
14-6 [under Section 73.003(b)] for at least five years. The five-year
14-7 period of inactivity on an account begins on the date of the last
14-8 transaction or correspondence by the depositor. The five-year
14-9 period of inactivity of a safe deposit box begins on the date the
14-10 rental was due but not paid;
14-11 (2) the location of the depositor of the account or
14-12 owner of the safe deposit box is unknown to the depository; and
14-13 (3) the amount of the account or the contents of the
14-14 box have not been delivered to the comptroller [State Treasurer] in
14-15 accordance with Chapter 74.
14-16 [(b) To satisfy the five-year period of inactivity required
14-17 by Subdivision (1) of Subsection 9(a), the account or safe deposit
14-18 box must have been inactive for a continuous period beginning not
14-19 later than June 30 of the fifth year preceding the year in which
14-20 the report is filed under Chapter 74.]
14-21 SECTION 17. Chapter 73, Property Code, is amended by adding
14-22 Section 73.102 to read as follows:
14-23 Sec. 73.102. CHECKS. (a) A check is presumed to be
14-24 abandoned on the latest of:
14-25 (1) the third anniversary of the date on which the
15-1 check was payable; or
15-2 (2) the third anniversary of the date on which the
15-3 issuer or payor of the check last received from the payee of the
15-4 check documented communication; and
15-5 (3) according to the knowledge and records of the
15-6 issuer or payor of the check, a claim to the check has not been
15-7 asserted or an act of ownership by the payee has not been exercised
15-8 for three years from the later of the above.
15-9 SECTION 18. Section 74.101(a) and (c), Property Code are
15-10 amended to read as follows:
15-11 (a) Each holder who on June 30 holds property that is
15-12 presumed abandoned under Chapter 72, Chapter 73, or Chapter 75 or
15-13 [under Section 5A, Chapter 512, Acts of the 54th Legislature, 1955
15-14 (]Article 548b, Vernon's Civil Texas Statutes[)] shall file a
15-15 report of that property on or before the following November 1. The
15-16 comptroller may require a holder to report unclaimed property in
15-17 computer-readable or other format that is prescribed and approved
15-18 by the comptroller. [Each report shall be filed with the State
15-19 treasurer as provided by this section and on forms prescribed the
15-20 State Treasurer.]
15-21 (c) The property report must include:
15-22 (1) the name, if known, and the last known address, if
15-23 any, of each person who, from the records of the holder of the
15-24 property, appears to be the owner of the property, or the name and
15-25 address, if known, of any person who is entitled to the property;
16-1 (2) the social security number, if known, of the
16-2 person who appears to be the owner of the property;
16-3 (3) a [brief] description of the property, the
16-4 identification number, if any, and, if appropriate, a balance of
16-5 each account, except as provided by Subsection (d) [(e)];
16-6 (4) [(3)] the date that the property became payable,
16-7 demandable, or returnable;
16-8 (5) [(4)] the date of the last transaction with the
16-9 owner concerning the property; and
16-10 [(5) any deduction made by the holder of the property
16-11 for a service, maintenance, or other charge, unless fully restored
16-12 and included in the amount reported; and]
16-13 (6) other information that the comptroller [State
16-14 Treasurer] by rule requires to be disclosed as necessary for the
16-15 administration of this chapter.
16-16 SECTION 19. Section 74.102, Property Code, is amended to
16-17 read as follows:
16-18 Sec. 74.102. Verification. (a) The person preparing a
16-19 property report shall provide [place] with [at the end of] each
16-20 copy of the report a verification made under oath and executed by:
16-21 (1) the individual holding the reported property;
16-22 (2) a partner, if the holder is a partnership;
16-23 (3) an officer, if the holder is an unincorporated
16-24 association or a private corporation; or
16-25 (4) the chief fiscal officer, if the holder is a
17-1 public corporation.
17-2 (b) The verification must include the following sentence:
17-3 "This [The foregoing] report contains a full and complete list of
17-4 all property held by the undersigned that, from the knowledge and
17-5 records of the undersigned, is abandoned under the laws of the
17-6 State of Texas."
17-7 SECTION 20. Section 74.103(a) and (c), Property Code, are
17-8 amended to read as follows:
17-9 (a) A holder required to file a property report under
17-10 Section 74.101 shall keep a record of:
17-11 (1) the name and last known address of each person
17-12 who, from the records of the holder of the property, appears to be
17-13 the owner of the property;
17-14 (2) the social security number, if known, of the
17-15 person who appears to be the owner of the property;
17-16 (3) a brief description of the property, including the
17-17 identification number, if any; and
17-18 (4) [(3)] the balance of each account, if appropriate.
17-19 (c) The comptroller [State Treasurer] may by rule provide
17-20 for a shorter period for keeping a record required by this section.
17-21 SECTION 21. Section 74.104, Property Code, is amended to
17-22 read as follows:
17-23 (a) Except as provided by Sections 74.201, 74.203, and
17-24 74.307, a property report filed with the comptroller [State
17-25 Treasurer] under Section 74.101 is confidential until the second
18-1 anniversary of the date the report is filed.
18-2 (b) [Notwithstanding any other provision of law, the] The
18-3 social security number of an owner that is provided [reported] to
18-4 the comptroller [State Treasurer] is confidential.
18-5 SECTION 22. Section 74.201, Property Code is amended to read
18-6 as follows: (a) Except as provided by [Subsection (b)] Section
18-7 74.202, the comptroller [State Treasurer] may use a method or
18-8 variety of methods, determined to give the most efficient and
18-9 effective notification to the reported owners, in [shall publish a
18-10 notice in the newspaper of general circulation within] the calendar
18-11 year immediately following the year in which the report required by
18-12 Section 74.101 is filed. The notice must be [published]:
18-13 (1) in the county of the property owner's [in which
18-14 the] last known address [of a person required to be named in the
18-15 notice is located]; or
18-16 (2) [if the address of a person listed is not set out
18-17 in the report or if it is outside the state,] in the county of the
18-18 holder's [in which the holder of the abandoned property has its]
18-19 principal place of business, registered office for service [, or
18-20 agent for service] in this state, if the property owner's last
18-21 known address is unknown.
18-22 (b) [The State Treasurer may use a method of publishing
18-23 notice that is different from that prescribed by Subsection (a)(1)
18-24 or (2) if the State Treasurer determines that the different method
18-25 would be as likely as the prescribed method to give actual notice
19-1 to the person required to be named in the notice.]
19-2 [(c)] The [published] notice must state that the reported
19-3 property is presumed abandoned and subject to this chapter and must
19-4 contain:
19-5 (1) the name and city of last known address[, if any,
19-6 of each person listed in the property report filed under Section
19-7 74.101, listed alphabetically by name;] of the reported owner;
19-8 (2) a statement that, by [addressing an] inquiry [to
19-9 the State Treasurer], any person possessing a legal or beneficial
19-10 interest in the reported property may obtain information concerning
19-11 the amount and the description of the property; and
19-12 (3) a statement that the owner must present proof of
19-13 the claim [to the State Treasurer] and establish their [the
19-14 owner's] right to receive the property.
19-15 (d) The comptroller [State Treasurer] may offer for sale
19-16 space for suitable advertisements in a notice published under this
19-17 section. [Proceeds from the sale of the advertising space shall be
19-18 used to defray the cost of publishing the notices, with the
19-19 remaining amount, if any, to be deposited to the credit of the
19-20 unclaimed money fund.]
19-21 SECTION 23. Section 74.202, Property Code, is amended to
19-22 read as follows:
19-23 Sec. 74.202. NOTICE FOR ITEM WITH VALUE LESS THAN [NOT
19-24 EXCEEDING] $100 [$50]. In the notice required by Section 74.201,
19-25 the comptroller [State Treasurer] is not required to publish
20-1 information regarding an item having a value that is less than $100
20-2 [$50] unless the comptroller [State Treasurer] determines that
20-3 publication of that information is in the public interest.
20-4 SECTION 24. Section 74.203, Property Code is amended to read
20-5 as follows:
20-6 Sec. 74.203. Notice to Owner. [(a)] During the calendar
20-7 year immediately following the year in which the report required by
20-8 Section 74.101 is filed, notice [the State Treasurer] may be mailed
20-9 [mail a notice] to each person who has been reported with a Texas
20-10 address and appears to be entitled to the reported property [valued
20-11 at $50 or more]. The notice requirement will be in accordance with
20-12 Section 74.201(b).
20-13 [(b) The notice must contain:]
20-14 [(1) a statement that property is being held by the
20-15 State Treasurer to which the addressee appears to be entitled; and]
20-16 [(2) a statement that the owner may present proof of
20-17 the claim to the State Treasurer and establish the owner's right to
20-18 receive the property].
20-19 SECTION 25. Section 74.204, Property Code is repealed.
20-20 SECTION 26. Section 74.205, Property Code, is amended to
20-21 read as follows:
20-22 Sec. 74.205. Charge for Notice. The comptroller [State
20-23 Treasurer] may charge the following against the property delivered
20-24 under this chapter:
20-25 (1) expenses incurred for the publication of notice
21-1 required by Section 74.201; and
21-2 (2) the amount paid in postage for the notice to owner
21-3 required by Section 74.203.
21-4 SECTION 27. Section 74.301, Property Code, is amended to
21-5 read as follows:
21-6 Section. 74.301. DELIVERY OF PROPERTY TO THE COMPTROLLER
21-7 [STATE TREASURER] (a) Each holder who on June 30 holds property
21-8 that is presumed abandoned under Chapter 72, Chapter 73, or Chapter
21-9 75 shall deliver the property to the comptroller [State Treasurer]
21-10 on or before the following November 1 accompanied by the report
21-11 required to be filed 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 SECTION 28. Section 74.3011(c), (e), and (g), Property Code,
21-19 are amended to read as follows:
21-20 (c) A local telephone exchange company shall file with the
21-21 comptroller [state treasurer] a verification of money delivered
21-22 under this section that complies with Section 74.302.
21-23 (e) The comptroller [state treasurer] shall prescribe forms
21-24 and procedures governing this section, including forms and
21-25 procedures relating to:
22-1 (1) notice of presumed abandoned property;
22-2 (2) delivery of reported money to a scholarship fund;
22-3 and
22-4 (3) filing of a claim.
22-5 (g) During a state fiscal year, the total amount of money
22-6 that may be transferred by all local telephone exchange companies
22-7 under this section may not exceed $400,000. The comptroller [state
22-8 treasurer] shall keep a record of the total amount of money
22-9 transferred annually. When the total amount of money transferred
22-10 during a state fiscal year equals the amount allowed by this
22-11 subsection, the comptroller [treasury] shall notify each local
22-12 telephone exchange company that the company may not transfer any
22-13 additional money to the company's scholarship fund during the
22-14 remainder of that state fiscal year.
22-15 SECTION 29. Section 74.3012(a), (e) and (g), Property Code,
22-16 are amended to read as follows:
22-17 (a) Notwithstanding and in addition to any other provision
22-18 of this chapter or other law, a local exchange company may deliver
22-19 reported money to a scholarship fund for urban students instead of
22-20 delivering the money to the comptroller [state treasurer] as
22-21 prescribed by Section 74.301.
22-22 (e) The comptroller [state treasurer] shall prescribe forms
22-23 and procedures governing this section, including forms and
22-24 procedures relating to:
22-25 (1) notice of presumed abandoned property;
23-1 (2) delivery of reported money to a scholarship fund;
23-2 and
23-3 (3) filing of a claim.
23-4 (g) During the 1995-1996 fiscal year, the total amount of
23-5 money that may be transferred by all local exchange companies under
23-6 this section may not exceed $400,000. During each subsequent state
23-7 fiscal year, the total amount of money that may be transferred by
23-8 all local exchange companies under this section may not exceed the
23-9 total amount of money transferred to rural scholarship funds under
23-10 Section 74.3011 during the previous state fiscal year. The
23-11 comptroller [state treasury] shall keep a record of the total
23-12 amount of money transferred annually. If the total amount of money
23-13 transferred during a state fiscal year equals the amount allowed by
23-14 this subsection, the comptroller [treasury] shall notify each local
23-15 exchange company that the company may not transfer any additional
23-16 money to the company's scholarship fund during the remainder of
23-17 that state fiscal year.
23-18 SECTION 30. Section 74.304, Property Code, is amended to
23-19 read as follows:
23-20 Sec. 74.304. Responsibility After Delivery. (a) If
23-21 reported property is delivered to the comptroller [State
23-22 Treasurer], the state shall assume custody of the property and
23-23 responsibility for its safekeeping.
23-24 (b) A holder who delivers property to the comptroller [State
23-25 Treasurer] in good faith is relieved of all liability to the extent
24-1 of the value of the property delivered for any claim then existing,
24-2 that may arise after delivery to the comptroller [State Treasurer],
24-3 or that may be made with respect to the property.
24-4 (c) If the holder delivers property to the comptroller
24-5 [State Treasurer] in good faith and, after delivery, a person
24-6 claims the property from the holder or another state claims the
24-7 property under its laws relating to escheat or unclaimed property,
24-8 the attorney general shall, on written notice of the claim, defend
24-9 the holder against the claim, and the holder shall be indemnified
24-10 from the unclaimed money received under Chapter 74, Property Code
24-11 or any other statute requiring delivery of unclaimed property to
24-12 the comptroller [fund established in Section 74.601] against any
24-13 liability on the claim.
24-14 (d) The comptroller [State Treasurer] is not, in the absence
24-15 of negligence or mishandling of the property, liable to the person
24-16 who claims the property for damages incurred while the property or
24-17 the proceeds from the sale of the property are in the comptroller's
24-18 [treasurer's] possession. But in any event the liability of the
24-19 state is limited to the extent of the property delivered under this
24-20 chapter and remaining in the possession of the comptroller [State
24-21 Treasurer] at the time a suit is filed.
24-22 (e) For the purposes of this section, payment or delivery is
24-23 made in good faith if:
24-24 (1) payment or delivery was made in a reasonable
24-25 attempt to comply with this chapter;
25-1 (2) the holder [person] delivering the property was
25-2 not a fiduciary then in breach of trust with respect to the
25-3 property and had a reasonable basis for believing based on the
25-4 facts then known to the holder [person] that the property was
25-5 abandoned or inactive for purposes of this chapter; and
25-6 (3) there is no showing that the records under which
25-7 the delivery was made did not meet reasonable commercial standards
25-8 of practice in the industry.
25-9 (f) On delivery of a duplicate certificate or other evidence
25-10 of ownership to the comptroller [State Treasurer] under Subsection
25-11 (b) of Section 74.301, the holder and any transfer agent,
25-12 registrar, or other person acting for or on behalf of a holder in
25-13 executing or delivering the duplicate certificate are relieved of
25-14 all liability of every kind in accordance with this section to any
25-15 person, including any person acquiring the original certificate or
25-16 the duplicate of the certificate issued to the comptroller [State
25-17 Treasurer], for any losses or damages resulting to any person by
25-18 the issuance and delivery to the comptroller [State Treasurer] of
25-19 the duplicate certificate.
25-20 SECTION 31. Section 74.305, Property Code is repealed.
25-21 SECTION 32. Section 74.306, Property Code, is amended to
25-22 read as follows:
25-23 Sec. 74.306. Unclaimed Property Held by Federal Government.
25-24 (a) If the federal government enacts a law that provides for the
25-25 discovery of unclaimed property held by the federal government and
26-1 that provides or makes that information available to the states,
26-2 the comptroller [State Treasurer] may pay to the federal government
26-3 from the unclaimed money received under chapter 74, Property Code
26-4 or any other statute requiring the delivery of unclaimed property
26-5 to the comptroller [fund] the proportional share of the necessary
26-6 cost of examining records.
26-7 (b) If the federal government delivers unclaimed property to
26-8 the comptroller [State Treasurer], this state shall hold the
26-9 federal government harmless from claims made by owners of the
26-10 property after the delivery.
26-11 SECTION 33. Section 74.307, Property Code, is amended to
26-12 read as follows:
26-13 Sec. 74.307. List of Owners. (a) The comptroller [State
26-14 Treasurer] shall compile and revise each year, except as to amounts
26-15 reported in the aggregate, a [an alphabetical] list of the names
26-16 and last known addresses of the owners listed in the reports and
26-17 the amount credited to each account.
26-18 (b) The comptroller [State Treasurer] shall make the list
26-19 available for public inspection during all reasonable business
26-20 hours.
26-21 SECTION 34. Section 74.308, Property Code, is amended to
26-22 read as follows:
26-23 Sec. 74.308. Period of Limitation Not a Bar. The
26-24 expiration, on or after September 1, 1987, of any period specified
26-25 by contract, statute, or court order, during which an action or
27-1 proceeding may be initiated or enforced to obtain payment of a
27-2 claim for money or recovery of property, does not prevent the money
27-3 or property from being presumed abandoned property and does not
27-4 affect any duty to file a report required by this chapter or to pay
27-5 or deliver abandoned property to the comptroller [State Treasurer].
27-6 SECTION 27. Section 74.401, Property Code, is amended to
27-7 read as follows:
27-8 Sec. 74.401. Sale of Property. (a) Except as provided by
27-9 Subsection (c), the comptroller [State Treasurer] shall sell at
27-10 public sale all personal property, other than money and marketable
27-11 securities, delivered to the comptroller [State Treasurer] in
27-12 accordance with Section 74.301. The comptroller [State Treasurer]
27-13 shall conduct the sale in the city in this state that the
27-14 comptroller [State Treasurer] determines affords the most favorable
27-15 market for the particular property.
27-16 (b) The comptroller [State Treasurer] shall sell the
27-17 property to the highest bidder. If the comptroller [State
27-18 Treasurer] determines that the highest bid is insufficient, the
27-19 comptroller [State Treasurer] may decline that bid and offer the
27-20 property for public or private sale.
27-21 (c) The comptroller [State Treasurer] is not required to
27-22 offer property for sale if the property belongs to a person with an
27-23 address outside this state or the comptroller [State Treasurer]
27-24 determines that the probable cost of the sale of the property
27-25 exceeds its value.
28-1 (d) If after investigation the comptroller [State Treasurer]
28-2 determines that property delivered from a safe deposit box or other
28-3 repository has insubstantial commercial value, the comptroller
28-4 [State Treasurer] may destroy or otherwise dispose of the property
28-5 at any time.
28-6 (e) A person may not maintain any action or proceeding
28-7 against the state, an officer of the state, or the holder of
28-8 property because of an action taken by the comptroller [State
28-9 Treasurer] under this section.
28-10 SECTION 35. Section 74.402, Property Code, is amended to
28-11 read as follows:
28-12 Sec. 74.402. Notice of Sale. Before the 21st day preceding
28-13 the day on which a public sale is held under Section 74.401, the
28-14 comptroller [State Treasurer] shall publish notice of the sale in a
28-15 newspaper of general circulation in the county where the sale is to
28-16 be held.
28-17 SECTION 36. Section 74.403(b), Property Code, is amended to
28-18 read as follows:
28-19 (b) The comptroller [State Treasurer] shall execute all
28-20 documents necessary to complete the transfer of title.
28-21 SECTION 37. Section 74.501, Property Code, is amended to
28-22 read as follows:
28-23 Sec. 74.501. [FILING OF] CLAIM FILED WITH THE COMPTROLLER.
28-24 (a) A claim shall be on a form prescribed by the comptroller
28-25 [Except as provided by Subsection (b), a claim for property or
29-1 proceeds from the sale of property delivered to the State Treasurer
29-2 under this chapter, including claims by other states, must be filed
29-3 with the State Treasurer].
29-4 (b) A claim shall be submitted according to procedures and
29-5 containing all information required by the comptroller [If a claim
29-6 is for inactive property that was held by a depository before being
29-7 delivered to the State Treasurer, the claim may be filed with the
29-8 depository under Section 74.502].
29-9 (c) The comptroller shall consider the validity of each
29-10 claim filed under this section [All claims to which this section
29-11 applies must be filed in accordance with procedures and on forms
29-12 prescribed by the State Treasurer].
29-13 (d) If the comptroller determines that a claim is valid, the
29-14 comptroller or the comptroller's authorized agent shall approve the
29-15 claim.
29-16 (e) If a claim is for money and has been approved under this
29-17 section, the comptroller shall pay the claim.
29-18 (f) If a claim is for personal property, other than money
29-19 and has been approved under this section, the comptroller shall
29-20 deliver the property to the claimant unless the comptroller has
29-21 sold the property. If the property has been sold under Section
29-22 74.401, the comptroller shall pay to the claimant the proceeds from
29-23 the sale.
29-24 SECTION 38. Section 74.502, Property Code is amended to read
29-25 as follows:
30-1 Sec. 74.502. CLAIM FILED WITH HOLDER [DEPOSITORY]. (a) [If
30-2 inactive property held by a depository under Chapter 73 is
30-3 delivered to the State Treasurer under Section 74.301, a claim may
30-4 be filed with the depository except that any claim by another state
30-5 must be filed with the State Treasurer. The State Treasurer shall
30-6 prescribe forms and procedures for filing claims with depositories.]
30-7 [(b)] If a claim is filed with a holder [depository] under
30-8 this section and the holder [depository] determines in good faith
30-9 that the claim is valid, the holder [depository] may pay the amount
30-10 of the claim.
30-11 (b) The comptroller shall reimburse the holder for valid
30-12 claims paid under this section [If the amount paid under Subsection
30-13 (b) is $100 or less, the State Treasurer shall reimburse the
30-14 depository on receipt of a written statement subscribed and sworn
30-15 to by an officer of the depository that states:]
30-16 [(1) the name and address of the person to whom
30-17 payment was made; and]
30-18 [(2) that the depository believes in good faith that
30-19 the claim is valid].
30-20 (c) [(d)] Requests from the holder for reimbursement to
30-21 which this section applies must be filed in accordance with
30-22 procedures and on forms prescribed by the comptroller. [If the
30-23 amount paid under Subsection (b) is more than $100, the State
30-24 Treasurer shall examine the claim and any supporting affidavit or
30-25 evidence of the claim. Before the State Treasurer may reimburse a
31-1 depository for a claim under this subsection, the claim must be
31-2 approved and signed by the State Treasurer.]
31-3 SECTION 39. Section 74.503, Property Code, is repealed.
31-4 SECTION 40. Section 74.504, Property Code, is amended to
31-5 read as follows:
31-6 Sec. 74.504. HEARING. (a) The comptroller [State
31-7 Treasurer] may hold a hearing and receive evidence concerning a
31-8 claim filed under this subchapter.
31-9 (b) If the comptroller [State Treasurer] considers that a
31-10 hearing is necessary to determine the validity of a claim, the
31-11 comptroller [State Treasurer] shall sign the statement of the
31-12 findings and the decision on the claim. The statement shall report
31-13 the substance of the evidence heard and the reasons for the
31-14 decision. The statement is a public record.
31-15 (c) If the comptroller [State Treasurer] determines that a
31-16 claim is valid, the comptroller [State Treasurer] shall approve and
31-17 sign the claim.
31-18 SECTION 41. Section 74.505, Property Code is repealed.
31-19 SECTION 42. Section 74.506(c), Property Code, is amended to
31-20 read as follows:
31-21 (c) An appeal under this section must be made by filing suit
31-22 against the state in a district court in Travis County, Texas[, or
31-23 in the county in which the claimed funds were deposited]. The
31-24 state's immunity from suit without consent is abolished with
31-25 respect to suits brought under this section.
32-1 SECTION 43. Section 74.507, Property Code is amended to read
32-2 as follows:
32-3 Sec. 74.507. Fee for Recovery. (a) A person who informs a
32-4 potential claimant that the claimant may be entitled to claim
32-5 property that is reportable to the comptroller [State Treasurer]
32-6 under this chapter, that has been reported to the comptroller
32-7 [State Treasurer], or that is in the possession of the comptroller
32-8 [State Treasurer], may not contract for or receive from the
32-9 claimant for services an amount that exceeds ten percent of the
32-10 value of the property recovered. If the property involved is
32-11 mineral proceeds, the amount for services may not include a portion
32-12 of the underlying minerals or any production payment, overriding
32-13 royalty, or similar payment.
32-14 (b) A person or entity who informs a potential claimant and
32-15 by contract or other written agreement is to receive a percentage
32-16 of the value of the property, shall not file or receive any forms
32-17 to claim or act on behalf of a claimant.
32-18 SECTION 44. Section 74.508, Property Code, is amended to
32-19 read as follows:
32-20 Sec. 74.508. Claim of Another State to Recover Property;
32-21 Procedure. (a) At any time after property has been paid or
32-22 delivered to the comptroller [State Treasurer] under this Act,
32-23 another state may recover the property if:
32-24 (1) the property was subjected to custody by this
32-25 state because the records of the holder did not reflect the last
33-1 known address of the apparent owner when the property was presumed
33-2 abandoned under this Act, and the other state establishes that the
33-3 last known address of the apparent owner or other person entitled
33-4 to the property was in that state and under the laws of that state
33-5 the property escheated to or was subject to a claim of abandonment
33-6 by that state;
33-7 (2) the last known address of the apparent owner or
33-8 other person entitled to the property, as reflected by the records
33-9 of the holder are in the other state and under the laws of that
33-10 state the property has escheated to or become subject to a claim of
33-11 abandonment by that state;
33-12 (3) the records of the holder were erroneous in that
33-13 they did not accurately reflect the actual owner of the property
33-14 and the last known address of the actual owner is in the other
33-15 state and under the laws of that state the property escheated to or
33-16 was subject to a claim of abandonment by that state;
33-17 (4) the property was subjected to custody by this
33-18 state under Subdivision (6) of Subsection (a) of Section 72.001 and
33-19 under the laws of the state of domicile of the holder the property
33-20 has escheated to or become subject to a claim of abandonment by
33-21 that state; or
33-22 (5) the property is the sum payable on a traveler's
33-23 check, money order, or other similar instrument that was subjected
33-24 to custody by this state under Subdivision (4) and the instrument
33-25 was purchased in the other state and under the laws of that state
34-1 the property escheated to or became subject to a claim of
34-2 abandonment by that state.
34-3 (b) The claim of another state to recover escheated or
34-4 abandoned property must be presented in a form prescribed by the
34-5 comptroller [State Treasurer], who shall decide the claim within 90
34-6 days after it is presented. The comptroller [State Treasurer]
34-7 shall allow the claim if he determines that the other state is
34-8 entitled to the abandoned property under Subsection (a).
34-9 SECTION 45. Section 74.509, Property Code is amended to read
34-10 as follows:
34-11 Sec. 74.509. Handling Fee for Processing Unclaimed Property.
34-12 A [The State Treasurer shall charge a person claiming unclaimed
34-13 property a] handling fee may be deducted from the claim payment
34-14 amount if [ownership to the property is reinstated and] the payment
34-15 is equal to or greater than $100 [value of the property is $50 or
34-16 more].
34-17 SECTION 46. Chapter 74, Subchapter G, Section 74.601,
34-18 Property Code, is amended to read as follows:
34-19 SUBCHAPTER G. UNCLAIMED MONEY [FUND]
34-20 Sec. 74.601. UNCLAIMED MONEY [FUND]. (a) The comptroller
34-21 [State Treasurer] shall maintain records documenting [a fund known
34-22 as the] unclaimed money received under this chapter or any other
34-23 statute requiring the delivery of unclaimed property to the
34-24 comptroller [fund].
34-25 (b) The comptroller [State Treasurer] shall deposit to the
35-1 credit of the general revenue fund:
35-2 (1) all funds, including marketable securities,
35-3 delivered to the comptroller [State Treasurer] under this chapter
35-4 or any other statute requiring the delivery of unclaimed property
35-5 to the comptroller [State Treasurer];
35-6 (2) all proceeds from the sale of any property,
35-7 including marketable securities, under this chapter;
35-8 (3) all funds that have escheated to the state under
35-9 Chapter 71, except that funds relating to escheated real property
35-10 shall be deposited according to Section 71.202; and
35-11 (4) any income derived from investments of unclaimed
35-12 money [the fund].
35-13 (c) The comptroller [State Treasurer] shall keep a separate
35-14 record and accounting for delivered unclaimed property, other than
35-15 money, before its sale.
35-16 (d) Except as provided by Subsection (e), the comptroller
35-17 [State Treasurer], shall from time to time invest the amount of [in
35-18 the] unclaimed money [fund] in investments approved by law for the
35-19 investment of state funds.
35-20 (e) The comptroller [State Treasurer] may from time to time
35-21 sell securities [in the fund,] including stocks, bonds, and mutual
35-22 funds received under this chapter or any other statute requiring
35-23 the delivery of unclaimed property to the comptroller, and use the
35-24 proceeds to buy, exchange, invest, or reinvest in marketable
35-25 securities. When making and selling the investments, the
36-1 comptroller [State Treasurer] shall exercise the judgment and care
36-2 of a prudent person.
36-3 (f) The comptroller [State Treasurer] shall keep a separate
36-4 record and accounting for securities delivered, sold, purchased, or
36-5 exchanged and the proceeds and earnings from the securities.
36-6 SECTION 47. Section 74.602, Property Code, is amended to
36-7 read as follows:
36-8 Sec. 74.602. USE OF FUND [FUNDS. (a)]. Except as provided
36-9 by Section 381.004, Local Government Code [Subsection (b)], the
36-10 comptroller [State Treasurer] shall use the unclaimed money
36-11 received under this chapter or any other statute requiring the
36-12 delivery of unclaimed property to the comptroller [fund] to pay the
36-13 claims of persons or states establishing ownership of property in
36-14 the possession of the comptroller [State Treasurer] under this
36-15 chapter or under any other unclaimed property or escheat statute.
36-16 [(b) Each fiscal year after deducting funds sufficient to
36-17 pay anticipated expenses and claims of the unclaimed money fund,
36-18 the state treasurer shall transfer:]
36-19 [(1) half of the balance of the unclaimed money fund
36-20 to the foundation school fund;]
36-21 [(2) $1.2 million to the state ethics fund;]
36-22 [(3) to each county of the state that requests, an
36-23 amount equal to any capital credits in the fund, less anticipated
36-24 claims, that were delivered under this chapter to the state
36-25 treasurer by an electric cooperative corporation on behalf of the
37-1 corporation's members in that county, with the money to be used
37-2 only to carry out a program under Section 381.004, Local Government
37-3 Code; and]
37-4 [(4) the remainder to the General Revenue Fund.]
37-5 [(c) The State Treasurer and the attorney general may use
37-6 the unclaimed money fund generally for the enforcement and
37-7 administration of this title, including the expenses of sale,
37-8 forms, notices, examinations, travel, court costs, supplies,
37-9 equipment, employment of necessary personnel, and any other
37-10 necessary expenses.]
37-11 SECTION 48. Section 74.603, Property Code, is amended to
37-12 read as follows:
37-13 Sec. 74.603. Audit; Appropriation. The unclaimed money
37-14 received under this chapter or any other statute requiring the
37-15 delivery of unclaimed property to the comptroller [fund] is subject
37-16 to audit by the state auditor [State Auditor] and to appropriations
37-17 by the legislature for enforcing and administering this title.
37-18 SECTION 49. Section 74.701, Property Code, is amended to
37-19 read as follows:
37-20 Sec. 74.701. RULES. The comptroller [State Treasurer] may
37-21 adopt rules necessary to carry out this title.
37-22 SECTION 50. Section 74.702, Property Code, is amended to
37-23 read as follows:
37-24 Sec. 74.702. Examination of Records. (a) To enforce this
37-25 chapter and to determine whether reports have been made as required
38-1 by this chapter, the comptroller [State Treasurer], the attorney
38-2 general, or an authorized agent of either, at any reasonable time,
38-3 may examine the books and records of the holder.
38-4 (b) The comptroller [State Treasurer], the attorney general,
38-5 or an agent of either may not make public any information obtained
38-6 by an examination made under this section and may not disclose that
38-7 information except in the course of a judicial proceeding,
38-8 authorized by this chapter, in which the state is a party or
38-9 pursuant to an agreement with another state allowing joint audits
38-10 or the exchange of information obtained under this section.
38-11 SECTION 51. Section 74.703(a), Property Code, is amended to
38-12 read as follows:
38-13 (a) The comptroller [State Treasurer] and the attorney
38-14 general may employ, in the office of either official, additional
38-15 personnel necessary to enforce this title.
38-16 SECTION 52. Section 74.704, Property Code, is amended to
38-17 read as follows:
38-18 Sec. 74.704. Assistance in Enforcement. If the comptroller
38-19 [State Treasurer] or the attorney general requests, the State
38-20 Auditor, comptroller, banking commissioner, securities
38-21 commissioner, insurance commissioner, savings and loan
38-22 commissioner, Credit Union Commission, Department of Public Safety,
38-23 or any district or county attorney shall assist the comptroller
38-24 [State Treasurer] or attorney general in enforcing this title.
38-25 SECTION 53. Section 74.705, Property Code, are amended to
39-1 read as follows:
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 ten
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 54. Chapter 74, Property Code is amended by adding
40-14 Section 74.706 to read as follows:
40-15 Sec. 74.706. PENALTY ON DELINQUENT PROPERTY. A penalty of
40-16 five percent of the property due shall be imposed on a holder who
40-17 fails to pay or deliver property within the time prescribed by this
40-18 chapter, and, if a holder fails to pay or deliver property within
40-19 30 days after the day on which the property is due, an additional
40-20 five percent penalty shall be imposed.
40-21 SECTION 55. Chapter 74, Property Code is amended by adding
40-22 Section 74.707 to read as follows:
40-23 Sec. 74.707. SETTLEMENT OF PENALTY AND INTEREST. The
40-24 comptroller may settle a claim for a penalty and interest imposed
40-25 on delinquent property if the comptroller determines that holder
41-1 has made a good faith effort to comply with Chapter 72 through 75
41-2 of this title.
41-3 SECTION 56. Chapter 74, Property Code is amended by adding
41-4 Section 74.708 to read as follows:
41-5 Sec. 74.708. HOLDER HOLDS PROPERTY IN TRUST. Any holder who
41-6 holds property presumed abandoned under Chapter 72 through 75 of
41-7 this title, holds the amount in trust for the benefit of the state
41-8 on behalf of the missing owners and is liable to the state for the
41-9 full amount, plus any accrued interest and penalties on the amount
41-10 held.
41-11 SECTION 57. Chapter 74, Property Code is amended by adding
41-12 Section 74.709 to read as follows:
41-13 Sec. 74.709. SUIT TO COMPEL DELIVERY OF PROPERTY AND CIVIL
41-14 PENALTIES. (a) If a holder fails to pay or deliver property
41-15 and/or fails to file a property report in accordance with this
41-16 chapter, the attorney general shall bring an action in the name of
41-17 the state on request of the comptroller to compel the delivery of
41-18 the property and/or to compel the filing of a property report.
41-19 (b) Venue for a suit brought under this section is in
41-20 district court in Travis County, Texas.
41-21 (c) The fact that a suit seeks enforcement of this section
41-22 from more than one holder is not grounds for an objection
41-23 concerning misjoinder of parties or causes of action.
41-24 (d) When introduced into evidence the verified property
41-25 report, unless rebutted, is sufficient evidence that the property
42-1 is abandoned and subject to delivery under this chapter for entry
42-2 of a judgment transferring custody of the property to the
42-3 comptroller.
42-4 (e) The attorney general on behalf of the comptroller may
42-5 recover reasonable attorney's fees from the holder in addition to
42-6 any unclaimed property accrued and penalties interest that may be
42-7 due.
42-8 (f) In addition to penalties and interest assessed on
42-9 delinquent property, a holder who fails to pay or deliver property
42-10 or who fails to file a property report within the time prescribed
42-11 by this chapter is subject to a civil penalty not to exceed $100
42-12 for each day of violation.
42-13 SECTION 58. Chapter 74, Property Code is amended by adding
42-14 Section 74.710 to read as follows:
42-15 Sec. 74.710. CRIMINAL VIOLATION. (a) A holder commits an
42-16 offense if the holder knowingly:
42-17 (1) fails to file a report as required by this
42-18 chapter;
42-19 (2) fails to pay or deliver property as required by
42-20 this chapter;
42-21 (3) refuses to permit examination of records in
42-22 accordance with this chapter;
42-23 (4) violates any other provision of this chapter.
42-24 (b) An offense under this section is punishable as a Class B
42-25 misdemeanor.
43-1 SECTION 59. Chapter 74, Property Code is amended by adding
43-2 Section 74.711 to read as follows:
43-3 Sec. 74.711. ABATEMENT OF PENALTIES AND INTEREST. The
43-4 comptroller may provide for periods of time during which holders of
43-5 delinquent unclaimed property may report and remit unclaimed
43-6 property without paying penalties or interest.
43-7 SECTION 60. Chapter 75, Subchapter A, Property Code is
43-8 amended by adding Section 75.002 to read as follows:
43-9 Sec. 75.002. TRANSFER AND PURCHASE OF MINERAL INTEREST ON
43-10 MINERAL PROCEEDS. Any person, business or entity purchasing
43-11 mineral proceeds of an owner whose name has been reported or is
43-12 reportable to the comptroller, must provide documentation required
43-13 by the comptroller to substantiate the transfer is executed by the
43-14 reported owner or their legal agent.
43-15 SECTION 61. Section 91.403(c), Natural Resources Code, is
43-16 amended to read as follows:
43-17 (c) The payor's obligation to pay interest and the payee's
43-18 right to receive interest under Subsection (a) of this section
43-19 terminate on delivery of the proceeds and accumulated interest to
43-20 the comptroller [State Treasurer] as provided by Title 6, Property
43-21 Code.
43-22 SECTION 62. This Act takes effect September 1, 1997.
43-23 SECTION 63. The importance of this legislation and the
43-24 crowded condition of the calendars in both houses create an
43-25 emergency and an imperative public necessity that the
44-1 constitutional rule requiring bills to be read on three several
44-2 days in each house be suspended, and this rule is hereby suspended.