SRC-AXB H.B. 3437 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3437
76R9905  WP-FBy: Isett (Nixon)
Jurisprudence
5/13/1999
Engrossed


DIGEST 

Currently, Texas businesses must keep unclaimed property records for 10
years from the date on which the property is reportable. H.B. 3437 amends
Section 74.103(b) (Retention of Records), Property Code, to reduce the
record-keeping period to four years. Some individuals hire themselves out
to find unclaimed property in exchange for a percentage of all recovered
property. H.B. 3437 amends Section 74.507 (Fee for Recovery), Property
Code, to prohibit such individuals from receiving a percentage of the value
of any property, but does authorize such individuals to contract to receive
an amount specifically stated in the contract for the recovery of property.

PURPOSE

As proposed, H.B. 3437 amends Section 74.103(b) (Retention of Records),
Property Code, to reduce the record-keeping period to four years. Some
individuals hire themselves out to find unclaimed property in exchange for
a percentage of all recovered property, and amends Section 74.507 (Fee for
Recovery), Property Code, to prohibit such individuals from receiving a
percentage of the value of any property, but does authorize such
individuals to contract to receive an amount specifically stated in the
contract for the recovery of property.  


RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 74.103(b), Property Code, to decrease from 10
years to four years, the number of years that the record must be kept from
the date on which the property is reportable, regardless of whether the
property is reported in the aggregate under Section 74.101(Property
Report), Property Code.  

SECTION 2. Amends Section 74.507, Property Code, as follows:

Sec. 74.507. FEE FOR RECOVERY. Prohibits a person who informs a potential
claimant that the claimant may be entitled to claim property that is
reportable to the comptroller under this chapter, that has been reported to
the comptroller, or that is in the possession of the comptroller, from
contracting to receive from the claimant for services a percentage of the
value of any property recovered. Existing law prohibits such a person from
contracting for or receiving from the claimant an amount exceeding 10
percent of the value of the property recovered. Authorizes a person to
contract to receive an amount specifically stated in the contract for
recovery of property. Prohibits the person who informs a potential claimant
and by contract or other written agreement is to receive a specified fee,
rather than a percentage of the value of the property, from filing or
receiving a form to claim or act on behalf of a claimant.  

SECTION 3. Effective date: September 1, 1999. Provides that
Section74.103(b), Property Code, as amended by this Act, applies to any
record required to be filed under that section before, on, or after the
effective date of this Act. Makes application of Section 74.507, Property
Code, prospective.  

 SECTION 4. Emergency clause.