SRC-CTC, MWN S.B. 1355 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1355
By: Armbrister
Business & Commerce
5/21/2001
Enrolled


DIGEST AND PURPOSE 

A money order is presumed abandoned if it has not been negotiated and there
has been no activity associated with it for a period of five years after
the original sale. In addition, no service charges can be offset against
the original value of the money order by the holder of the money order
before the holder remits it to the comptroller. S.B. 1355 extends the time
for presumption of abandonment to seven years.  S.B. 1355 also clarifies
that the money order holder may subtract service charges from the value of
the money order before remitting the remainder to the comptroller. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 72.102(c), Property Code, to provide that a money
order to which Subsection (a) applies is presumed to be abandoned on the
seventh, rather than fifth, anniversary of certain dates. 

SECTION 2. Amends Section 72.103, Property Code, to require a holder of
abandoned property, except a provision of this section relating to a money
order, to preserve the property and prohibits the holder from reducing the
value of the property by certain means. Provides that value is determined
as of the date of the last transaction or contact concerning the property,
except that in the case of a money order, value is determined as of the
date the property is presumed abandoned under Section 72.102(c). Prohibits
service, maintenance, or other charges on a money order, if a holder
imposes such charges prior to the time of presumed abandonment, from
exceeding the amount of 50 cents per month for each month the money order
remains uncashed prior to the month in which the money order is presumed
abandoned. 

SECTION 3. Makes application of SECTION 1 of this Act prospective.

SECTION 4. Effective date: June 1, 2004, except that SECTION 2 of this Act
takes effect June 1, 2002.