1-1 By: Armbrister S.B. No. 700
1-2 (In the Senate - Filed February 21, 1997; February 25, 1997,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 2, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 12, Nays 0; April 2, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 700 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to unclaimed property; providing penalties.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Sections 4 through 12 and 14 through 16, Article
1-13 4.08, Insurance Code, are amended to read as follows:
1-14 Sec. 4. REPORTS. Every such life insurance company shall on
1-15 or before the first day of November of each year make a report in
1-16 writing to the comptroller [State Treasurer of Texas] of all
1-17 unclaimed funds, as hereinbefore defined, held and owing by it on
1-18 the 30th day of June next preceding, provided, however, such report
1-19 shall not be required to include amounts which have been paid to
1-20 another state or jurisdiction under any escheat or unclaimed funds
1-21 law thereof. Such report shall be signed and sworn to by an
1-22 officer of such company and shall set forth: (1) in alphabetical
1-23 order the full name of the insured or annuitant, the last known
1-24 address according to the company's records, and the policy or
1-25 contract number; (2) the amount appearing from the company's
1-26 records to be due on such policy or contract; (3) the date such
1-27 unclaimed funds became payable; (4) the name and last known address
1-28 of each beneficiary or other person who, according to the company's
1-29 records, may have an interest in such unclaimed funds; and (5) such
1-30 other identifying information as the comptroller [State Treasurer]
1-31 may require; provided, however, that individual amounts of less
1-32 than $50 may be reported in the aggregate without furnishing any of
1-33 the information required in Clauses (1), (2), (3), (4), and (5) of
1-34 this Section. Each life insurance company required to file a
1-35 report under this Section shall maintain a record of the name and
1-36 last known address, if any, of the insured, annuitant, or
1-37 beneficiary, the policy or contract number, and the amount
1-38 appearing from the company's records to be due on the policy or
1-39 contract for 10 years after the funds are reportable, whether or
1-40 not the amount was reported in the aggregate under this Section.
1-41 The comptroller [State Treasurer] may provide by rule for a shorter
1-42 holding period for these records.
1-43 Sec. 5. NOTICE; PUBLICATION. (a) In the calendar year
1-44 following the submission of the reports required under Section 4 of
1-45 this Article and the payment to the comptroller [State Treasurer]
1-46 under Section 6 of this Article of all unclaimed funds described in
1-47 the report, the comptroller [State Treasurer] may cause to be
1-48 published notices based on the information contained in such
1-49 reports. Except as provided by Subsection (d) of this Section,
1-50 such a notice shall be published once in a newspaper published or
1-51 having a general circulation in each county of this state in which
1-52 is located the last known address of a person appearing to be
1-53 entitled to such funds.
1-54 (b) Each such notice shall set forth in alphabetical order
1-55 the names of the insureds or annuitants under policies or contracts
1-56 and the city of last known address, if any. The notice shall also
1-57 state that such unclaimed funds have been delivered to the
1-58 comptroller [State Treasurer] on the preceding November 1 and that
1-59 those funds may be claimed from the comptroller [State Treasurer].
1-60 (c) The publication requirements under Subchapter C, Chapter
1-61 74, Property Code, apply to publication of notice under this
1-62 section. [It shall not be obligatory upon the State Treasurer to
1-63 publish any item of less than Fifty Dollars ($50) in such notice,
1-64 unless the State Treasurer deems such publication to be in the
2-1 public interest. Expenses incurred for the publication of notice
2-2 may be charged against the funds delivered to the State Treasurer
2-3 under Section 6 of this Article.]
2-4 (d) The comptroller [State Treasurer] may use a method of
2-5 publishing notice that is different from that prescribed by
2-6 Subsection (a) of this Section if the comptroller [State Treasurer]
2-7 determines that the different method would be as likely as the
2-8 prescribed method to give actual notice to the person required to
2-9 be named in the notice.
2-10 Sec. 6. PAYMENT TO COMPTROLLER [STATE TREASURER]. All
2-11 unclaimed funds contained in the report required to be filed by
2-12 Section 4 of this Article shall be delivered to the comptroller
2-13 [State Treasurer] on or before November 1 with the report.
2-14 Sec. 7. CUSTODY OF UNCLAIMED FUNDS IN STATE; INSURERS
2-15 INDEMNIFIED. Upon the payment of such unclaimed funds to the
2-16 comptroller [State Treasurer] the state shall assume, for the
2-17 benefit of those entitled to receive the same and for the safety of
2-18 the money so paid, the custody of such unclaimed funds, and the
2-19 life insurance company making such payment shall immediately and
2-20 thereafter be relieved of and held harmless by the state from any
2-21 and all liability for any claim or claims which exist at such time
2-22 with reference to such unclaimed funds or which thereafter may be
2-23 made or may come into existence on account of or in respect to any
2-24 such unclaimed funds.
2-25 Sec. 8. INDEMNIFICATION FOR CLAIMS. (a) Any life insurance
2-26 company which in good faith has paid monies to the comptroller
2-27 [State Treasurer] pursuant to this Article is relieved of all
2-28 liability for a claim that exists at the time of delivery, that
2-29 arises after delivery to the comptroller [State Treasurer], or that
2-30 is made with respect to the property, to the extent of the value of
2-31 the property delivered.
2-32 (b) If a life insurance company in good faith delivers
2-33 property to the comptroller [State Treasurer] and after delivery a
2-34 person claims the property from the life insurance company or
2-35 another state claims the property under its laws relating to
2-36 escheat or unclaimed property, the attorney general shall, on
2-37 written notice of the claim, defend the life insurance company
2-38 against the claim. The life insurance company shall be indemnified
2-39 from the unclaimed money received [fund established] under Chapter
2-40 74 [Section 74.601], Property Code, or any other statute requiring
2-41 the delivery of unclaimed property to the comptroller, against any
2-42 liability on the claim.
2-43 Sec. 9. FUND ADMINISTRATION. Upon receipt of any unclaimed
2-44 funds from such life insurance companies [by the State Treasurer],
2-45 the comptroller [State Treasurer] shall deposit those funds in the
2-46 general revenue [unclaimed money fund established by Section
2-47 74.601, Property Code. Money in the unclaimed money] fund.
2-48 Unclaimed money received under Chapter 74, Property Code, or any
2-49 other statute requiring the delivery of unclaimed property to the
2-50 comptroller may be appropriated by the legislature to enforce and
2-51 administer this Article.
2-52 Sec. 10. DETERMINATION AND REVIEW OF CLAIMS. Any person
2-53 claiming to be entitled to unclaimed funds paid to the comptroller
2-54 [State Treasurer] may file a claim at any time with such official.
2-55 The comptroller [State Treasurer] shall possess full and complete
2-56 authority to accept or reject any such claim. If he rejects such
2-57 claim or fails to act thereon within ninety days after receipt of
2-58 such claim, the claimant may institute suit therefor in a court of
2-59 competent jurisdiction naming the comptroller [State Treasurer] as
2-60 defendant.
2-61 Sec. 11. PAYMENT OF ALLOWED CLAIMS. Any claim which is
2-62 accepted by the comptroller [State Treasurer] or ordered to be paid
2-63 by him by a court of competent jurisdiction shall be paid out of
2-64 the unclaimed money received under Chapter 74, Property Code, or
2-65 any other statute requiring the delivery of unclaimed property to
2-66 the comptroller [special trust fund in his custody, or in the event
2-67 such special trust fund shall be insufficient, out of the general
2-68 funds of the state].
2-69 Sec. 12. RECORDS REQUIRED. The comptroller [State
3-1 Treasurer] shall keep in his office a public record of each payment
3-2 of unclaimed funds received by him from any life insurance company.
3-3 Except as to amounts reported in the aggregate, such record shall
3-4 show in alphabetical order the name and last known address of each
3-5 insured or annuitant, and of each beneficiary or other person who,
3-6 according to the company's reports, may have an interest in such
3-7 unclaimed funds, and with respect to each policy or contract, its
3-8 number, the name of the company, and the amount due.
3-9 Sec. 14. ENFORCEMENT. This Article shall be enforced in the
3-10 manner provided for enforcement of Chapter 74, Property Code, under
3-11 Subchapter H of that chapter. [INTEREST, ATTORNEY'S FEES, AND
3-12 PENALTIES. (a) A person who fails to pay or deliver property
3-13 within the time prescribed by this Article shall pay to the State
3-14 Treasurer interest, at the judgment rate of interest as published
3-15 by the consumer credit commissioner in the Texas Register, on the
3-16 property or value of the property from the date the property should
3-17 have been paid or delivered until the date the property is actually
3-18 paid or delivered.]
3-19 [(b) If the State Treasurer presents a claim for unclaimed
3-20 property to a person who fails timely to pay or deliver the
3-21 property and the just amount of the unclaimed property owed has not
3-22 been tendered before the 31st day after the date the claim is
3-23 presented, the State Treasurer may, on approval of a court of
3-24 competent jurisdiction in Travis County, recover reasonable
3-25 attorney's fees from the person in addition to unclaimed property
3-26 and interest due.]
3-27 [(c) Any person who wilfully fails to file a report required
3-28 by this Article, or who violates any of the other terms and
3-29 provisions of this Article shall be punished by a fine not less
3-30 than Five Hundred Dollars ($500.00), nor more than One Thousand
3-31 Dollars ($1000.00), or by confinement for not more than six months
3-32 in the county jail, or both, and in addition, shall be subject to
3-33 civil penalties of not exceeding One Hundred Dollars ($100.00) for
3-34 each day of such wilful failure or refusal, said civil penalties to
3-35 be collected by suit in a District Court of Travis County, Texas,
3-36 by the Attorney General in the name of the State of Texas.]
3-37 Sec. 15. RULES. The comptroller [State Treasurer] may adopt
3-38 rules necessary to carry out this Article.
3-39 Sec. 16. EXAMINATION OF RECORDS. The comptroller [State
3-40 Treasurer] may examine the records of a life insurance company to
3-41 determine if the life insurance company is complying with this
3-42 Article. The comptroller [State Treasurer] may not make public any
3-43 information obtained by an examination made under this Section.
3-44 SECTION 2. Section 117.002, Local Government Code, is
3-45 amended to read as follows:
3-46 Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER
3-47 [STATE TREASURER]. Any funds deposited under this chapter that are
3-48 presumed abandoned under Chapter 72, 73, or 75, Property Code,
3-49 shall be reported and delivered by the county or district clerk to
3-50 the comptroller [state treasurer] without further action by any
3-51 court. The dormancy period for funds deposited under this chapter
3-52 begins on the later of:
3-53 (1) the date of entry of final judgment or order of
3-54 dismissal in the action in which the funds were deposited;
3-55 (2) the 18th birthday of the minor for whom the funds
3-56 were deposited; or
3-57 (3) a reasonable date established by rule by the
3-58 comptroller [state treasurer] to promote the public interest in
3-59 disposing of unclaimed funds.
3-60 SECTION 3. Section 381.004, Local Government Code, is
3-61 amended by adding Subsection (e) to read as follows:
3-62 (e) The legislature may appropriate unclaimed money the
3-63 comptroller receives under Chapter 74, Property Code, for a county
3-64 to use in carrying out a program established under this section.
3-65 To receive money for that purpose for any fiscal year, the county
3-66 must request the money for that fiscal year. The amount a county
3-67 may receive under this subsection for a fiscal year may not exceed
3-68 an amount equal to the value of the capital credits the comptroller
3-69 receives from an electric cooperative corporation on behalf of the
4-1 corporation's members in the county requesting the money less an
4-2 amount sufficient to pay anticipated expenses and claims. The
4-3 comptroller shall transfer money in response to a request after
4-4 deducting the amount the comptroller determines to be sufficient to
4-5 pay anticipated expenses and claims.
4-6 SECTION 4. Subsection (a), Section 71.101, Property Code, is
4-7 amended to read as follows:
4-8 (a) If any person, including the attorney general, the
4-9 comptroller [State Treasurer], or a district attorney, criminal
4-10 district attorney, county attorney, county clerk, district clerk,
4-11 or attorney ad litem is informed or has reason to believe that real
4-12 or personal property is subject to escheat under this chapter, the
4-13 person may file a sworn petition requesting the escheat of the
4-14 property and requesting a writ of possession for the property.
4-15 SECTION 5. Subsection (c), Section 71.103, Property Code, is
4-16 amended to read as follows:
4-17 (c) The comptroller [State Treasurer] is an indispensable
4-18 party to any judicial or administrative proceeding concerning the
4-19 disposition and handling of property that is the subject of an
4-20 escheat proceeding and must be made a party to the proceeding by
4-21 personal service of citation.
4-22 SECTION 6. Subsection (c), Section 71.301, Property Code, is
4-23 amended to read as follows:
4-24 (c) A copy of the petition shall be served on the
4-25 comptroller [State Treasurer], who shall represent the interests of
4-26 the state. As the comptroller [State Treasurer] elects and with
4-27 the approval of the attorney general, the attorney general, the
4-28 county attorney or criminal district attorney for the county, or
4-29 the district attorney for the district shall represent the
4-30 comptroller [State Treasurer].
4-31 SECTION 7. Subsection (a), Section 71.304, Property Code, is
4-32 amended to read as follows:
4-33 (a) A suit brought for the collection of personal property
4-34 delivered to the comptroller [State Treasurer] under this chapter
4-35 must be brought in the name of this state.
4-36 SECTION 8. Subsections (b) and (c), Section 72.102, Property
4-37 Code, are amended to read as follows:
4-38 (b) A traveler's check to which Subsection (a) applies is
4-39 presumed to be abandoned on the latest of:
4-40 (1) the 15th anniversary of the date on which the
4-41 check was issued;
4-42 (2) the 15th anniversary of the date on which the
4-43 issuer of the check last received from the owner of the check
4-44 [written] communication concerning the check; or
4-45 (3) the 15th anniversary of the date of the last
4-46 writing, on file with the issuer, that indicates the owner's
4-47 interest in the check.
4-48 (c) A money order to which Subsection (a) applies is
4-49 presumed to be abandoned on the latest of:
4-50 (1) the fifth anniversary of the date on which the
4-51 money order was issued;
4-52 (2) the fifth anniversary of the date on which the
4-53 issuer of the money order last received from the owner of the money
4-54 order [written] communication concerning the money order; or
4-55 (3) the fifth anniversary of the date of the last
4-56 writing, on file with the issuer, that indicates the owner's
4-57 interest in the money order.
4-58 SECTION 9. Section 72.103, Property Code, is amended to read
4-59 as follows:
4-60 Sec. 72.103. PRESERVATION OF PROPERTY. Notwithstanding any
4-61 other provision of this title, a [A] holder of abandoned property
4-62 shall preserve the property and may not at any time, by any
4-63 procedure, including a deduction for service, maintenance, or other
4-64 charge, transfer or[,] convert to the profits or assets of the
4-65 holder[,] or otherwise reduce the value of the property. For
4-66 purposes of this section, value is determined as of the date of the
4-67 last transaction or contact concerning the property [to the profits
4-68 or assets of the holder].
4-69 SECTION 10. The heading to Chapter 73, Property Code, is
5-1 amended to read as follows:
5-2 CHAPTER 73. PROPERTY [INACTIVE ACCOUNTS] HELD BY
5-3 FINANCIAL INSTITUTIONS [BANKING ORGANIZATIONS]
5-4 SECTION 11. Subsection (a), Section 73.001, Property Code,
5-5 is amended by amending Subdivision (1) and adding Subdivision (5)
5-6 to read as follows:
5-7 (1) "Account" means funds deposited with a depository
5-8 in an interest-bearing account, including a checking[, interest,]
5-9 or savings account.
5-10 (5) "Check" includes a draft, cashier's check,
5-11 certified check, registered check, or similar instrument.
5-12 SECTION 12. Subsections (c) and (d), Section 73.001,
5-13 Property Code, are amended to read as follows:
5-14 (c) Any property, other than an account, check, or safe
5-15 deposit box, held by a depository is subject to the abandonment
5-16 provisions of Chapter 72.
5-17 (d) A holder of accounts, checks, or safe deposit boxes
5-18 presumed abandoned under this chapter is subject to the procedures
5-19 of Chapter 74.
5-20 SECTION 13. Sections 73.002 and 73.003, Property Code, are
5-21 amended to read as follows:
5-22 Sec. 73.002. DEPOSITORY. For the purposes of this chapter,
5-23 a depository is a bank, savings and loan association, credit union,
5-24 or other banking organization that:
5-25 (1) receives and holds a deposit of money or the
5-26 equivalent of money in banking practice or other personal property
5-27 in this state; or
5-28 (2) receives and holds such a deposit or other
5-29 personal property in another state for a person whose last known
5-30 residence is in this state.
5-31 Sec. 73.003. PRESERVATION OF INACTIVE ACCOUNT OR SAFE
5-32 DEPOSIT BOX. (a) A depository shall preserve an account that is
5-33 inactive and the contents of a safe deposit box that is inactive.
5-34 The depository may not, at any time, by any procedure, including
5-35 the imposition of a service charge, transfer or[,] convert to the
5-36 profits or assets of the depository[,] or otherwise reduce the
5-37 value of the [such an] account or the contents of such a box. For
5-38 purposes of this subsection, value is determined as of the date the
5-39 account or safe deposit box becomes inactive [to the profits or
5-40 assets of the depository].
5-41 (b) An account is inactive if for more than one year there
5-42 has not been a debit or credit to the account because of an act by
5-43 the depositor or an agent of the depositor, other than the
5-44 depository, and the depositor has not communicated with the
5-45 depository. A safe deposit box is inactive if the rental on the
5-46 box is delinquent [for more than one year].
5-47 (c) This section does not affect the provisions of
5-48 Subchapter B, Chapter 8, Texas Banking Act (Article 342-8.101 et
5-49 seq., Vernon's Texas Civil Statutes).
5-50 [(d) For purposes of presumption of abandonment under
5-51 Section 73.101, the five-year period of inactivity for accounts
5-52 begins on the date of the last transaction or correspondence by the
5-53 depositor. The five-year period of inactivity of safe deposit
5-54 boxes begins on the date the rental was due but not paid.]
5-55 SECTION 14. Section 73.101, Property Code, is amended to
5-56 read as follows:
5-57 Sec. 73.101. INACTIVE ACCOUNT OR SAFE DEPOSIT BOX PRESUMED
5-58 ABANDONED. (a) An account or safe deposit box is presumed
5-59 abandoned if:
5-60 (1) the account or safe deposit box has been inactive
5-61 [under Section 73.003(b)] for at least five years as determined
5-62 under Subsection (b);
5-63 (2) the location of the depositor of the account or
5-64 owner of the safe deposit box is unknown to the depository; and
5-65 (3) the amount of the account or the contents of the
5-66 box have not been delivered to the comptroller [State Treasurer] in
5-67 accordance with Chapter 74.
5-68 (b) For purposes of Subsection (a)(1):
5-69 (1) an account becomes inactive beginning on the date
6-1 of the depositor's last transaction or correspondence concerning
6-2 the account; and
6-3 (2) a safe deposit box becomes inactive beginning on
6-4 the date a rental was due but not paid. [To satisfy the five-year
6-5 period of inactivity required by Subdivision (1) of Subsection (a),
6-6 the account or safe deposit box must have been inactive for a
6-7 continuous period beginning not later than June 30 of the fifth
6-8 year preceding the year in which the report is filed under Chapter
6-9 74.]
6-10 SECTION 15. Subchapter B, Chapter 73, Property Code, is
6-11 amended by adding Section 73.102 to read as follows:
6-12 Sec. 73.102. CHECKS. A check is presumed to be abandoned on
6-13 the latest of:
6-14 (1) the third anniversary of the date the check was
6-15 payable;
6-16 (2) the third anniversary of the date the issuer or
6-17 payor of the check last received documented communication from the
6-18 payee of the check; or
6-19 (3) the third anniversary of the date the check was
6-20 issued if, according to the knowledge and records of the issuer or
6-21 payor of the check, during that period, a claim to the check has
6-22 not been asserted or an act of ownership by the payee has not been
6-23 exercised.
6-24 SECTION 16. Subsections (a) and (c), Section 74.101,
6-25 Property Code, are amended to read as follows:
6-26 (a) Each holder who on June 30 holds property that is
6-27 presumed abandoned under Chapter 72, [Chapter] 73, or [Chapter] 75,
6-28 or under [Section 5A,] Chapter 512, Acts of the 54th Legislature,
6-29 1955 (Article 548b, Vernon's Texas Civil Statutes), shall file a
6-30 report of that property on or before the following November 1. The
6-31 comptroller may require the report to be in a particular format,
6-32 including a format that can be read by a computer. [Each report
6-33 shall be filed with the State Treasurer as provided by this section
6-34 and on forms prescribed by the State Treasurer.]
6-35 (c) The property report must include:
6-36 (1) the name and social security number, if known, and
6-37 the last known address, if any, of each person who, from the
6-38 records of the holder of the property, appears to be the owner of
6-39 the property, or the name and address, if known, of any person who
6-40 is entitled to the property;
6-41 (2) a [brief] description of the property, the
6-42 identification number, if any, and, if appropriate, a balance of
6-43 each account, except as provided by Subsection (d) [(e)];
6-44 (3) the date that the property became payable,
6-45 demandable, or returnable;
6-46 (4) the date of the last transaction with the owner
6-47 concerning the property; and
6-48 (5) [any deduction made by the holder of the property
6-49 for a service, maintenance, or other charge, unless fully restored
6-50 and included in the amount reported; and]
6-51 [(6)] other information that the comptroller [State
6-52 Treasurer] by rule requires to be disclosed as necessary for the
6-53 administration of this chapter.
6-54 SECTION 17. Section 74.102, Property Code, is amended to
6-55 read as follows:
6-56 Sec. 74.102. VERIFICATION. (a) The person preparing a
6-57 property report shall provide with [place at the end of] each copy
6-58 of the report a verification made under oath and executed by:
6-59 (1) the individual holding the reported property;
6-60 (2) a partner, if the holder is a partnership;
6-61 (3) an officer, if the holder is an unincorporated
6-62 association or a private corporation; or
6-63 (4) the chief fiscal officer, if the holder is a
6-64 public corporation.
6-65 (b) The verification must include the following sentence:
6-66 "This [The foregoing] report contains a full and complete
6-67 list of all property held by the undersigned that, from the
6-68 knowledge and records of the undersigned, is abandoned under the
6-69 laws of the State of Texas."
7-1 SECTION 18. Subsections (a) and (c), Section 74.103,
7-2 Property Code, are amended to read as follows:
7-3 (a) A holder required to file a property report under
7-4 Section 74.101 shall keep a record of:
7-5 (1) the name, the social security number, if known,
7-6 and the last known address of each person who, from the records of
7-7 the holder of the property, appears to be the owner of the
7-8 property;
7-9 (2) a brief description of the property, including the
7-10 identification number, if any; and
7-11 (3) the balance of each account, if appropriate.
7-12 (c) The comptroller [State Treasurer] may by rule provide
7-13 for a shorter period for keeping a record required by this section.
7-14 SECTION 19. Section 74.104, Property Code, is amended to
7-15 read as follows:
7-16 Sec. 74.104. CONFIDENTIALITY OF PROPERTY REPORT.
7-17 (a) Except as provided by Section [Sections] 74.201, 74.203, or
7-18 [and] 74.307, a property report filed with the comptroller [State
7-19 Treasurer] under Section 74.101 is confidential until the second
7-20 anniversary of the date the report is filed.
7-21 (b) The [Notwithstanding any other provision of law, the]
7-22 social security number of an owner that is provided [reported] to
7-23 the comptroller [State Treasurer] is confidential.
7-24 SECTION 20. Sections 74.201, 74.202, and 74.203, Property
7-25 Code, are amended to read as follows:
7-26 Sec. 74.201. REQUIRED [PUBLISHED] NOTICE. (a) Except as
7-27 provided by [Subsection (b) and] Section 74.202, the comptroller
7-28 may use one or more methods as necessary to provide the most
7-29 efficient and effective notice to each reported owner [State
7-30 Treasurer shall publish a notice in a newspaper of general
7-31 circulation] in the calendar year immediately following the year in
7-32 which the report required by Section 74.101 is filed. The notice
7-33 must be provided [published]:
7-34 (1) in the county of the property owner's [in which
7-35 the] last known address [of a person required to be named in the
7-36 notice is located]; or
7-37 (2) [if the address of a person listed is not set out
7-38 in the report or if it is outside the state,] in the county in
7-39 which the holder [of the abandoned property] has its principal
7-40 place of business or its[,] registered office[, or agent] for
7-41 service in this state, if the property owner's last address is
7-42 unknown.
7-43 (b) [The State Treasurer may use a method of publishing
7-44 notice that is different from that prescribed by Subsection (a)(1)
7-45 or (2) if the State Treasurer determines that the different method
7-46 would be as likely as the prescribed method to give actual notice
7-47 to the person required to be named in the notice.]
7-48 [(c)] The [published] notice must state that the reported
7-49 property is presumed abandoned and subject to this chapter and must
7-50 contain:
7-51 (1) the name and city of last known address of the
7-52 reported owner[, if any, of each person listed in the property
7-53 report filed under Section 74.101, listed alphabetically by name];
7-54 (2) a statement that, by [addressing an] inquiry [to
7-55 the State Treasurer], any person possessing a legal or beneficial
7-56 interest in the reported property may obtain information concerning
7-57 the amount and description of the property; and
7-58 (3) a statement that the person [owner] may present
7-59 proof of the claim [to the State Treasurer] and establish the
7-60 person's [owner's] right to receive the property.
7-61 (d) The comptroller [State Treasurer] may offer for sale
7-62 space for suitable advertisements in a notice published under this
7-63 section. [Proceeds from the sale of the advertising space shall be
7-64 used to defray the cost of publishing the notices, with the
7-65 remaining amount, if any, to be deposited to the credit of the
7-66 unclaimed money fund.]
7-67 Sec. 74.202. NOTICE FOR ITEM WITH VALUE OF LESS THAN $100
7-68 [NOT EXCEEDING $50]. In the notice required by Section 74.201, the
7-69 comptroller [State Treasurer] is not required to publish
8-1 information regarding an item having a value that is less than $100
8-2 [$50] unless the comptroller [State Treasurer] determines that
8-3 publication of that information is in the public interest.
8-4 Sec. 74.203. AUTHORIZED NOTICE [TO OWNER]. (a) During the
8-5 calendar year immediately following the year in which the report
8-6 required by Section 74.101 is filed, [the State Treasurer may mail
8-7 a] notice may be mailed to each person who has been reported with a
8-8 Texas address and appears to be entitled to the reported property
8-9 [valued at $50 or more].
8-10 (b) The notice under Subsection (a) must conform to the
8-11 requirements for notice under Section 74.201(b) [must contain:]
8-12 [(1) a statement that property is being held by the
8-13 State Treasurer to which the addressee appears to be entitled; and]
8-14 [(2) a statement that the owner may present proof of
8-15 the claim to the State Treasurer and establish the owner's right to
8-16 receive the property].
8-17 SECTION 21. Sections 74.205 and 74.301, Property Code, are
8-18 amended to read as follows:
8-19 Sec. 74.205. CHARGE FOR NOTICE. The comptroller [State
8-20 Treasurer] may charge the following against the property delivered
8-21 under this chapter:
8-22 (1) expenses incurred for the publication of notice
8-23 required by Section 74.201; and
8-24 (2) the amount paid in postage for the notice to the
8-25 owner required by Section 74.203.
8-26 Sec. 74.301. DELIVERY OF PROPERTY TO COMPTROLLER [STATE
8-27 TREASURER]. (a) Each holder who on June 30 holds property that is
8-28 presumed abandoned under Chapter 72, [Chapter] 73, or [Chapter] 75
8-29 shall deliver the property to the comptroller [State Treasurer] on
8-30 or before the following November 1 accompanied by the report
8-31 required to be filed under Section 74.101.
8-32 (b) If the property subject to delivery under Subsection (a)
8-33 is stock or some other intangible ownership interest in a business
8-34 association for which there is no evidence of ownership, the holder
8-35 shall issue a duplicate certificate or other evidence of ownership
8-36 to the comptroller [State Treasurer] at the time delivery is
8-37 required under this section.
8-38 SECTION 22. Subsections (c), (e), and (g), Section 74.3011,
8-39 Property Code, are amended to read as follows:
8-40 (c) A local telephone exchange company shall file with the
8-41 comptroller [state treasurer] a verification of money delivered
8-42 under this section that complies with Section 74.302.
8-43 (e) The comptroller [state treasurer] shall prescribe forms
8-44 and procedures governing this section, including forms and
8-45 procedures relating to:
8-46 (1) notice of presumed abandoned property;
8-47 (2) delivery of reported money to a scholarship fund;
8-48 and
8-49 (3) filing of a claim.
8-50 (g) During a state fiscal year, the total amount of money
8-51 that may be transferred by all local telephone exchange companies
8-52 under this section may not exceed $400,000. The comptroller [state
8-53 treasury] shall keep a record of the total amount of money
8-54 transferred annually. When the total amount of money transferred
8-55 during a state fiscal year equals the amount allowed by this
8-56 subsection, the comptroller [treasury] shall notify each local
8-57 telephone exchange company that the company may not transfer any
8-58 additional money to the company's scholarship fund during the
8-59 remainder of that state fiscal year.
8-60 SECTION 23. Subsections (a), (e), and (g), Section 74.3012,
8-61 Property Code, are amended to read as follows:
8-62 (a) Notwithstanding and in addition to any other provision
8-63 of this chapter or other law, a local exchange company may deliver
8-64 reported money to a scholarship fund for urban students instead of
8-65 delivering the money to the comptroller [state treasurer] as
8-66 prescribed by Section 74.301.
8-67 (e) The comptroller [state treasurer] shall prescribe forms
8-68 and procedures governing this section, including forms and
8-69 procedures relating to:
9-1 (1) notice of presumed abandoned property;
9-2 (2) delivery of reported money to a scholarship fund;
9-3 and
9-4 (3) filing of a claim.
9-5 (g) [During the 1995-1996 fiscal year, the total amount of
9-6 money that may be transferred by all local exchange companies under
9-7 this section may not exceed $400,000.] During each [subsequent]
9-8 state fiscal year, the total amount of money that may be
9-9 transferred by all local exchange companies under this section may
9-10 not exceed the total amount of money transferred to rural
9-11 scholarship funds under Section 74.3011 during the previous state
9-12 fiscal year. The comptroller [state treasury] shall keep a record
9-13 of the total amount of money transferred annually. If the total
9-14 amount of money transferred during a state fiscal year equals the
9-15 amount allowed by this subsection, the comptroller [treasury] shall
9-16 notify each local exchange company that the company may not
9-17 transfer any additional money to the company's scholarship fund
9-18 during the remainder of that state fiscal year.
9-19 SECTION 24. Sections 74.304, 74.306, 74.307, and 74.308,
9-20 Property Code, are amended to read as follows:
9-21 Sec. 74.304. RESPONSIBILITY AFTER DELIVERY. (a) If
9-22 reported property is delivered to the comptroller, [State
9-23 Treasurer] the state shall assume custody of the property and
9-24 responsibility for its safekeeping.
9-25 (b) A holder who delivers property to the comptroller [State
9-26 Treasurer] in good faith is relieved of all liability to the extent
9-27 of the value of the property delivered for any claim then existing,
9-28 that may arise after delivery to the comptroller [State Treasurer],
9-29 or that may be made with respect to the property.
9-30 (c) If the holder delivers property to the comptroller
9-31 [State Treasurer] in good faith and, after delivery, a person
9-32 claims the property from the holder or another state claims the
9-33 property under its laws relating to escheat or unclaimed property,
9-34 the attorney general shall, on written notice of the claim, defend
9-35 the holder against the claim, and the holder shall be indemnified
9-36 from the unclaimed money received under this chapter or any other
9-37 statute requiring delivery of unclaimed property to the comptroller
9-38 [fund established in Section 74.601] against any liability on the
9-39 claim.
9-40 (d) The comptroller [State Treasurer] is not, in the absence
9-41 of negligence or mishandling of the property, liable to the person
9-42 who claims the property for damages incurred while the property or
9-43 the proceeds from the sale of the property are in the comptroller's
9-44 [treasurer's] possession. But in any event the liability of the
9-45 state is limited to the extent of the property delivered under this
9-46 chapter and remaining in the possession of the comptroller [State
9-47 Treasurer] at the time a suit is filed.
9-48 (e) For the purposes of this section, payment or delivery is
9-49 made in good faith if:
9-50 (1) payment or delivery was made in a reasonable
9-51 attempt to comply with this chapter;
9-52 (2) the holder [person] delivering the property was
9-53 not a fiduciary then in breach of trust with respect to the
9-54 property and had a reasonable basis for believing based on the
9-55 facts then known to the holder [person] that the property was
9-56 abandoned or inactive for purposes of this chapter; and
9-57 (3) there is no showing that the records under which
9-58 the delivery was made did not meet reasonable commercial standards
9-59 of practice in the industry.
9-60 (f) On delivery of a duplicate certificate or other evidence
9-61 of ownership to the comptroller [State Treasurer] under Subsection
9-62 (b) of Section 74.301, the holder and any transfer agent,
9-63 registrar, or other person acting for or on behalf of a holder in
9-64 executing or delivering the duplicate certificate are relieved of
9-65 all liability of every kind in accordance with this section to any
9-66 person, including any person acquiring the original certificate or
9-67 the duplicate of the certificate issued to the comptroller [State
9-68 Treasurer], for any losses or damages resulting to any person by
9-69 the issuance and delivery to the comptroller [State Treasurer] of
10-1 the duplicate certificate.
10-2 Sec. 74.306. UNCLAIMED PROPERTY HELD BY FEDERAL GOVERNMENT.
10-3 (a) If the federal government enacts a law that provides for the
10-4 discovery of unclaimed property held by the federal government and
10-5 that provides or makes that information available to the states,
10-6 the comptroller [State Treasurer] may pay to the federal government
10-7 from the unclaimed money received under this chapter or any other
10-8 statute requiring the delivery of unclaimed property to the
10-9 comptroller [fund] the proportional share of the necessary cost of
10-10 examining records.
10-11 (b) If the federal government delivers unclaimed property to
10-12 the comptroller [State Treasurer], this state shall hold the
10-13 federal government harmless from claims made by owners of the
10-14 property after the delivery.
10-15 Sec. 74.307. LIST OF OWNERS. (a) The comptroller [State
10-16 Treasurer] shall compile and revise each year, except as to amounts
10-17 reported in the aggregate, a [an alphabetical] list of the names
10-18 and last known addresses of the owners listed in the reports and
10-19 the amount credited to each account.
10-20 (b) The comptroller [State Treasurer] shall make the list
10-21 available for public inspection during all reasonable business
10-22 hours.
10-23 Sec. 74.308. PERIOD OF LIMITATION NOT A BAR. The
10-24 expiration, on or after September 1, 1987, of any period specified
10-25 by contract, statute, or court order, during which an action or
10-26 proceeding may be initiated or enforced to obtain payment of a
10-27 claim for money or recovery of property, does not prevent the money
10-28 or property from being presumed abandoned property and does not
10-29 affect any duty to file a report required by this chapter or to pay
10-30 or deliver abandoned property to the comptroller [State Treasurer].
10-31 SECTION 25. Sections 74.401 and 74.402, Property Code, are
10-32 amended to read as follows:
10-33 Sec. 74.401. SALE OF PROPERTY. (a) Except as provided by
10-34 Subsection (c), the comptroller [State Treasurer] shall sell at
10-35 public sale all personal property, other than money and marketable
10-36 securities, delivered to the comptroller [State Treasurer] in
10-37 accordance with Section 74.301. The comptroller [State Treasurer]
10-38 shall conduct the sale in the city in this state that the
10-39 comptroller [State Treasurer] determines affords the most favorable
10-40 market for the particular property.
10-41 (b) The comptroller [State Treasurer] shall sell the
10-42 property to the highest bidder. If the comptroller [State
10-43 Treasurer] determines that the highest bid is insufficient, the
10-44 comptroller [State Treasurer] may decline that bid and offer the
10-45 property for public or private sale.
10-46 (c) The comptroller [State Treasurer] is not required to
10-47 offer property for sale if the property belongs to a person with an
10-48 address outside this state or the comptroller [State Treasurer]
10-49 determines that the probable cost of the sale of the property
10-50 exceeds its value.
10-51 (d) If after investigation the comptroller [State Treasurer]
10-52 determines that property delivered from a safe deposit box or other
10-53 repository has insubstantial commercial value, the comptroller
10-54 [State Treasurer] may destroy or otherwise dispose of the property
10-55 at any time.
10-56 (e) A person may not maintain any action or proceeding
10-57 against the state, an officer of the state, or the holder of
10-58 property because of an action taken by the comptroller [State
10-59 Treasurer] under this section.
10-60 Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding
10-61 the day on which a public sale is held under Section 74.401, the
10-62 comptroller [State Treasurer] shall publish notice of the sale in a
10-63 newspaper of general circulation in the county where the sale is to
10-64 be held.
10-65 SECTION 26. Subsection (b), Section 74.403, Property Code,
10-66 is amended to read as follows:
10-67 (b) The comptroller [State Treasurer] shall execute all
10-68 documents necessary to complete the transfer of title.
10-69 SECTION 27. Sections 74.501 and 74.502, Property Code, are
11-1 amended to read as follows:
11-2 Sec. 74.501. [FILING OF] CLAIM FILED WITH COMPTROLLER.
11-3 (a) The comptroller shall review the validity of each claim filed
11-4 under this section. [Except as provided by Subsection (b), a claim
11-5 for property or proceeds from the sale of property delivered to the
11-6 State Treasurer under this chapter, including claims by other
11-7 states, must be filed with the State Treasurer.]
11-8 (b) If the comptroller determines that a claim is valid, the
11-9 comptroller or the comptroller's authorized agent shall approve [a
11-10 claim is for inactive property that was held by a depository before
11-11 being delivered to the State Treasurer,] the claim [may be filed
11-12 with the depository under Section 74.502]. If the claim is for
11-13 money and has been approved under this section, the comptroller
11-14 shall pay the claim. If a claim is for personal property other
11-15 than money and has been approved under this section, the
11-16 comptroller shall deliver the property to the claimant unless the
11-17 comptroller has sold the property. If the property has been sold
11-18 under Section 74.401, the comptroller shall pay to the claimant the
11-19 proceeds from the sale.
11-20 (c) All claims to which this section applies must be filed
11-21 in accordance with procedures, contain the information, and be on
11-22 forms prescribed by the comptroller [State Treasurer].
11-23 Sec. 74.502. CLAIM FILED WITH HOLDER [DEPOSITORY]. (a) [If
11-24 inactive property held by a depository under Chapter 73 is
11-25 delivered to the State Treasurer under Section 74.301, a claim may
11-26 be filed with the depository except that any claim by another state
11-27 must be filed with the State Treasurer. The State Treasurer shall
11-28 prescribe forms and procedures for filing claims with depositories.]
11-29 [(b)] If a claim is filed with a holder [depository] under
11-30 this section and the holder [depository] determines in good faith
11-31 that the claim is valid, the holder [depository] may pay the amount
11-32 of the claim.
11-33 (b) The comptroller shall reimburse the holder for a valid
11-34 claim paid under this section.
11-35 (c) The request from a holder for reimbursement must be
11-36 filed in accordance with procedures and on forms prescribed by the
11-37 comptroller. [If the amount paid under Subsection (b) is $100 or
11-38 less, the State Treasurer shall reimburse the depository on receipt
11-39 of a written statement subscribed and sworn to by an officer of the
11-40 depository that states:]
11-41 [(1) the name and address of the person to whom
11-42 payment was made; and]
11-43 [(2) that the depository believes in good faith that
11-44 the claim is valid.]
11-45 [(d) If the amount paid under Subsection (b) is more than
11-46 $100, the State Treasurer shall examine the claim and any
11-47 supporting affidavit or evidence of the claim. Before the State
11-48 Treasurer may reimburse a depository for a claim under this
11-49 subsection, the claim must be approved and signed by the State
11-50 Treasurer.]
11-51 SECTION 28. Section 74.504, Property Code, is amended to
11-52 read as follows:
11-53 Sec. 74.504. HEARING. (a) The comptroller [State
11-54 Treasurer] may hold a hearing and receive evidence concerning a
11-55 claim filed under this subchapter.
11-56 (b) If the comptroller [State Treasurer] considers that a
11-57 hearing is necessary to determine the validity of a claim, the
11-58 comptroller [State Treasurer] shall sign the statement of the
11-59 findings and the decision on the claim. The statement shall report
11-60 the substance of the evidence heard and the reasons for the
11-61 decision. The statement is a public record.
11-62 (c) If the comptroller [State Treasurer] determines that a
11-63 claim is valid, the comptroller [State Treasurer] shall approve and
11-64 sign the claim.
11-65 SECTION 29. Subsection (c), Section 74.506, Property Code,
11-66 is amended to read as follows:
11-67 (c) An appeal under this section must be made by filing suit
11-68 against the state in a district court in Travis County, Texas[, or
11-69 in the county in which the claimed funds were deposited]. The
12-1 state's immunity from suit without consent is abolished with
12-2 respect to suits brought under this section.
12-3 SECTION 30. Sections 74.507, 74.508, and 74.509, Property
12-4 Code, are amended to read as follows:
12-5 Sec. 74.507. FEE FOR RECOVERY. (a) A person who informs a
12-6 potential claimant that the claimant may be entitled to claim
12-7 property that is reportable to the comptroller [State Treasurer]
12-8 under this chapter, that has been reported to the comptroller
12-9 [State Treasurer], or that is in the possession of the comptroller
12-10 [State Treasurer,] may not contract for or receive from the
12-11 claimant for services an amount that exceeds 10 percent of the
12-12 value of the property recovered. If the property involved is
12-13 mineral proceeds, the amount for services may not include a portion
12-14 of the underlying minerals or any production payment, overriding
12-15 royalty, or similar payment.
12-16 (b) The person who informs a potential claimant and by
12-17 contract or other written agreement is to receive a percentage of
12-18 the value of the property may not file or receive a form to claim
12-19 or act on behalf of a claimant.
12-20 Sec. 74.508. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
12-21 PROCEDURE. (a) At any time after property has been paid or
12-22 delivered to the comptroller [State Treasurer] under this chapter
12-23 [Act], another state may recover the property if:
12-24 (1) the property was subjected to custody by this
12-25 state because the records of the holder did not reflect the last
12-26 known address of the apparent owner when the property was presumed
12-27 abandoned under this chapter [Act], and the other state establishes
12-28 that the last known address of the apparent owner or other person
12-29 entitled to the property was in that state and under the laws of
12-30 that state the property escheated to or was subject to a claim of
12-31 abandonment by that state;
12-32 (2) the last known address of the apparent owner or
12-33 other person entitled to the property, as reflected by the records
12-34 of the holder are in the other state and under the laws of that
12-35 state the property has escheated to or become subject to a claim of
12-36 abandonment by that state;
12-37 (3) the records of the holder were erroneous in that
12-38 they did not accurately reflect the actual owner of the property
12-39 and the last known address of the actual owner is in the other
12-40 state and under the laws of that state the property escheated to or
12-41 was subject to a claim of abandonment by that state;
12-42 (4) the property was subjected to custody by this
12-43 state under Subdivision (6) of Subsection (a) of Section 72.001 and
12-44 under the laws of the state of domicile of the holder the property
12-45 has escheated to or become subject to a claim of abandonment by
12-46 that state; or
12-47 (5) the property is the sum payable on a traveler's
12-48 check, money order, or other similar instrument that was subjected
12-49 to custody by this state under Subdivision (4) and the instrument
12-50 was purchased in the other state and under the laws of that state
12-51 the property escheated to or became subject to a claim of
12-52 abandonment by that state.
12-53 (b) The claim of another state to recover escheated or
12-54 abandoned property must be presented in a form prescribed by the
12-55 comptroller [State Treasurer], who shall decide the claim within 90
12-56 days after it is presented. The comptroller [State Treasurer]
12-57 shall allow the claim if he determines that the other state is
12-58 entitled to the abandoned property under Subsection (a).
12-59 Sec. 74.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY.
12-60 A [The State Treasurer shall charge a person claiming unclaimed
12-61 property a] handling fee may be deducted from the amount of the
12-62 claim payment if [ownership of the property is reinstated and] the
12-63 payment is at least $100 [value of the property is $50 or more].
12-64 SECTION 31. Subchapter G, Chapter 74, Property Code, is
12-65 amended to read as follows:
12-66 SUBCHAPTER G. UNCLAIMED MONEY [FUND]
12-67 Sec. 74.601. UNCLAIMED MONEY [FUND]. (a) The comptroller
12-68 [State Treasurer] shall maintain a record that documents [fund
12-69 known as the] unclaimed money received under this chapter or any
13-1 other statute requiring the delivery of unclaimed property to the
13-2 comptroller [fund].
13-3 (b) The comptroller [State Treasurer] shall deposit to the
13-4 credit of the general revenue fund:
13-5 (1) all funds, including marketable securities,
13-6 delivered to the comptroller [State Treasurer] under this chapter
13-7 or any other statute requiring the delivery of unclaimed property
13-8 to the comptroller [State Treasurer];
13-9 (2) all proceeds from the sale of any property,
13-10 including marketable securities, under this chapter;
13-11 (3) all funds that have escheated to the state under
13-12 Chapter 71, except that funds relating to escheated real property
13-13 shall be deposited according to Section 71.202; and
13-14 (4) any income derived from investments of the
13-15 unclaimed money [fund].
13-16 (c) The comptroller [State Treasurer] shall keep a separate
13-17 record and accounting for delivered unclaimed property, other than
13-18 money, before its sale.
13-19 (d) Except as provided by Subsection (e), the comptroller
13-20 [State Treasurer] shall from time to time invest the amount of [in
13-21 the] unclaimed money [fund] in investments approved by law for the
13-22 investment of state funds.
13-23 (e) The comptroller [State Treasurer] may from time to time
13-24 sell securities [in the fund], including stocks, bonds, and mutual
13-25 funds, received under this chapter or any other statute requiring
13-26 the delivery of unclaimed property to the comptroller and use the
13-27 proceeds to buy, exchange, invest, or reinvest in marketable
13-28 securities. When making or selling the investments, the
13-29 comptroller [State Treasurer] shall exercise the judgment and care
13-30 of a prudent person.
13-31 (f) The comptroller [State Treasurer] shall keep a separate
13-32 record and accounting for securities delivered, sold, purchased, or
13-33 exchanged and the proceeds and earnings from the securities.
13-34 Sec. 74.602. USE OF MONEY [FUND]. [(a)] Except as provided
13-35 by Section 381.004, Local Government Code [Subsection (b)], the
13-36 comptroller [State Treasurer] shall use the unclaimed money
13-37 received under this chapter or any other statute requiring the
13-38 delivery of unclaimed property to the comptroller [fund] to pay the
13-39 claims of persons or states establishing ownership of property in
13-40 the possession of the comptroller [State Treasurer] under this
13-41 chapter or under any other unclaimed property or escheat statute.
13-42 [(b) Each fiscal year after deducting funds sufficient to
13-43 pay anticipated expenses and claims of the unclaimed money fund,
13-44 the state treasurer shall transfer:]
13-45 [(1) half of the balance of the unclaimed money fund
13-46 to the foundation school fund;]
13-47 [(2) $1.2 million to the state ethics fund;]
13-48 [(3) to each county of the state that requests, an
13-49 amount equal to any capital credits in the fund, less anticipated
13-50 claims, that were delivered under this chapter to the state
13-51 treasurer by an electric cooperative corporation on behalf of the
13-52 corporation's members in that county, with the money to be used
13-53 only to carry out a program under Section 381.004, Local Government
13-54 Code; and]
13-55 [(4) the remainder to the General Revenue Fund.]
13-56 [(c) The State Treasurer and the attorney general may use
13-57 the unclaimed money fund generally for the enforcement and
13-58 administration of this title, including the expenses of sale,
13-59 forms, notices, examinations, travel, court costs, supplies,
13-60 equipment, employment of necessary personnel, and any other
13-61 necessary expenses.]
13-62 Sec. 74.603. AUDIT; APPROPRIATION. The unclaimed money
13-63 received under this chapter or any other statute requiring the
13-64 delivery of unclaimed property to the comptroller [fund] is subject
13-65 to audit by the State Auditor and to appropriation by the
13-66 legislature for enforcing and administering this title.
13-67 SECTION 32. Sections 74.701 and 74.702, Property Code, are
13-68 amended to read as follows:
13-69 Sec. 74.701. RULES. The comptroller [State Treasurer] may
14-1 adopt rules necessary to carry out this title.
14-2 Sec. 74.702. EXAMINATION OF RECORDS. (a) To enforce this
14-3 chapter and to determine whether reports have been made as required
14-4 by this chapter, the comptroller [State Treasurer], the attorney
14-5 general, or an authorized agent of either, at any reasonable time,
14-6 may examine the books and records of any holder.
14-7 (b) The comptroller [State Treasurer], the attorney general,
14-8 or an agent of either may not make public any information obtained
14-9 by an examination made under this section and may not disclose that
14-10 information except in the course of a judicial proceeding,
14-11 authorized by this chapter, in which the state is a party or
14-12 pursuant to an agreement with another state allowing joint audits
14-13 or the exchange of information obtained under this section.
14-14 SECTION 33. Subsection (a), Section 74.703, Property Code,
14-15 is amended to read as follows:
14-16 (a) The comptroller [State Treasurer] and the attorney
14-17 general may employ, in the office of either official, additional
14-18 personnel necessary to enforce this title.
14-19 SECTION 34. Sections 74.704 and 74.705, Property Code, are
14-20 amended to read as follows:
14-21 Sec. 74.704. ASSISTANCE IN ENFORCEMENT. If the comptroller
14-22 [State Treasurer] or the attorney general requests, the State
14-23 Auditor, Banking Commissioner of Texas [state comptroller, banking
14-24 commissioner], securities commissioner, [insurance] commissioner of
14-25 insurance, savings and loan commissioner, Credit Union Commission,
14-26 Department of Public Safety of the State of Texas, or any district
14-27 or county attorney shall assist the comptroller [State Treasurer]
14-28 or attorney general in enforcing this title.
14-29 Sec. 74.705. INTEREST[, ATTORNEY'S FEES, AND PENALTIES].
14-30 [(a)] A holder [person] who fails to pay or deliver property
14-31 within the time prescribed by this chapter shall pay to the
14-32 comptroller [State Treasurer] interest, at an annual rate of 10
14-33 percent [the judgment rate of interest as published by the consumer
14-34 credit commissioner in the Texas Register], on the property [or
14-35 value of the property] from the date the property should have been
14-36 paid or delivered until the date the property is actually paid or
14-37 delivered.
14-38 [(b) If the State Treasurer presents a claim for unclaimed
14-39 property to a person who fails timely to pay or deliver the
14-40 property and the just amount of unclaimed property owed has not
14-41 been tendered before the 31st day after the date the claim is
14-42 presented, the State Treasurer may, on approval of a court of
14-43 competent jurisdiction in Travis County, recover reasonable
14-44 attorney's fees from the person in addition to unclaimed property
14-45 and interest due.]
14-46 [(c) A person commits an offense if the person:]
14-47 [(1) wilfully fails to file a report required by this
14-48 chapter;]
14-49 [(2) refuses to permit examination of records in
14-50 accordance with this chapter;]
14-51 [(3) makes a deduction from or a service charge
14-52 against a dormant account or dormant deposit of funds; or]
14-53 [(4) violates any other provision of this title.]
14-54 [(d) An offense under this section is punishable by:]
14-55 [(1) a fine of not less than $500 nor more than
14-56 $1,000;]
14-57 [(2) confinement in jail for a term not to exceed six
14-58 months; or]
14-59 [(3) both the fine and confinement.]
14-60 [(e) In addition to a criminal penalty, a person who commits
14-61 an offense under Subsection (c) is subject to a civil penalty not
14-62 to exceed $100 for each day of the violation. The attorney general
14-63 shall collect the civil penalty by bringing suit on behalf of the
14-64 state in a district court in Travis County, Texas.]
14-65 SECTION 35. Subchapter H, Chapter 74, Property Code, is
14-66 amended by adding Sections 74.706 through 74.710 to read as
14-67 follows:
14-68 Sec. 74.706. PENALTY. A penalty equal to five percent of
14-69 the value of the property due shall be imposed on a holder who
15-1 fails to pay or deliver property within the time prescribed by this
15-2 chapter. If a holder fails to pay or deliver property before the
15-3 31st day after the date the property is due, an additional penalty
15-4 equal to five percent of the value of the property due shall be
15-5 imposed.
15-6 Sec. 74.707. SETTLEMENT OR ABATEMENT OF PENALTY OR INTEREST.
15-7 (a) The comptroller may settle a claim for a penalty or interest
15-8 imposed on delinquent property if the comptroller determines that
15-9 the holder has made a good faith effort to comply with Chapters
15-10 72-75.
15-11 (b) The comptroller may provide for periods during which a
15-12 holder of delinquent property may report and remit the unclaimed
15-13 property without paying a penalty or interest.
15-14 Sec. 74.708. PROPERTY HELD IN TRUST. A holder who holds
15-15 property presumed abandoned under Chapters 72-75 holds the property
15-16 in trust for the benefit of the state on behalf of the missing
15-17 owner and is liable to the state for the full value of the
15-18 property, plus any accrued interest and penalty.
15-19 Sec. 74.709. SUIT TO COMPEL DELIVERY OF PROPERTY AND CIVIL
15-20 PENALTIES. (a) On request of the comptroller, the attorney
15-21 general shall bring an action in district court, in the name of the
15-22 state, to compel a holder to deliver property or to file a property
15-23 report.
15-24 (b) Venue for a suit brought under this section is in Travis
15-25 County.
15-26 (c) The fact that a suit seeks enforcement of this section
15-27 from more than one holder is not grounds for an objection
15-28 concerning misjoinder of parties or causes of action.
15-29 (d) When introduced into evidence, the verified property
15-30 report, unless rebutted, is sufficient evidence that the property
15-31 is abandoned and subject to delivery under this chapter and for
15-32 entry of a judgment transferring custody of the property to the
15-33 comptroller.
15-34 (e) The attorney general, on behalf of the comptroller, may
15-35 recover reasonable attorney's fees from the holder in addition to
15-36 recovery of any unclaimed property accrued or a penalty or interest
15-37 due.
15-38 (f) In addition to a penalty or interest assessed on
15-39 delinquent property, a holder who fails to pay or deliver property
15-40 or who fails to file a property report within the time prescribed
15-41 by this chapter is subject to a civil penalty not to exceed $100
15-42 for each day of violation.
15-43 Sec. 74.710. CRIMINAL OFFENSE. (a) A holder commits an
15-44 offense if the holder knowingly violates this chapter, including:
15-45 (1) failing to file a report in accordance with this
15-46 chapter;
15-47 (2) failing to pay or deliver property in accordance
15-48 with this chapter; or
15-49 (3) refusing to permit examination of records in
15-50 accordance with this chapter.
15-51 (b) An offense under this section is a Class B misdemeanor.
15-52 SECTION 36. Subchapter A, Chapter 75, Property Code, is
15-53 amended by adding Section 75.002 to read as follows:
15-54 Sec. 75.002. TRANSFER AND PURCHASE OF MINERAL INTEREST ON
15-55 MINERAL PROCEEDS. A person purchasing mineral proceeds of an owner
15-56 whose name has been reported or is reportable to the comptroller
15-57 shall provide documentation required by the comptroller to
15-58 substantiate that the transfer is executed by the reported owner or
15-59 the reported owner's legal agent.
15-60 SECTION 37. Subsection (c), Section 91.403, Natural
15-61 Resources Code, is amended to read as follows:
15-62 (c) The payor's obligation to pay interest and the payee's
15-63 right to receive interest under Subsection (a) of this section
15-64 terminate on delivery of the proceeds and accumulated interest to
15-65 the comptroller [State Treasurer] as provided by Title 6, Property
15-66 Code.
15-67 SECTION 38. The following provisions are repealed:
15-68 (1) Section 571.030, Government Code;
15-69 (2) Sections 73.004, 74.204, 74.305, and 74.505,
16-1 Property Code; and
16-2 (3) Section 74.503, Property Code, as amended by
16-3 Chapters 36 and 851, Acts of the 73rd Legislature, 1993.
16-4 SECTION 39. (a) The change in law made by this Act applies
16-5 only to an offense committed on or after the effective date of this
16-6 Act. For purposes of this section, an offense is committed before
16-7 the effective date of this Act if any element of the offense occurs
16-8 before that date. An offense committed before the effective date
16-9 of this Act is covered by the law in effect when the offense was
16-10 committed, and the former law is continued in effect for that
16-11 purpose.
16-12 (b) The change in law under Section 74.705, Property Code,
16-13 as amended by this Act, applies only to the rate for interest that
16-14 accrues under that section on or after the effective date of this
16-15 Act. The rate for interest that accrued under that section before
16-16 the effective date of this Act is governed by the law as it existed
16-17 at the time the interest accrued, and that law is continued in
16-18 effect for that purpose.
16-19 (c) On the effective date of this Act, the comptroller shall
16-20 transfer to the general revenue fund money in the unclaimed money
16-21 fund.
16-22 SECTION 40. This Act takes effect September 1, 1997.
16-23 SECTION 41. The importance of this legislation and the
16-24 crowded condition of the calendars in both houses create an
16-25 emergency and an imperative public necessity that the
16-26 constitutional rule requiring bills to be read on three several
16-27 days in each house be suspended, and this rule is hereby suspended.
16-28 * * * * *