SRC-CTC, MWN S.B. 1355 77(R) BILL ANALYSIS Senate Research Center S.B. 1355 77R8527 CAS-FBy: Armbrister Business & Commerce 4/2/2001 As Filed DIGEST AND PURPOSE Currently, money orders are presumed abandoned if they have not been negotiated and there has been no activity associated with them 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. As proposed, 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). SECTION 3. Makes application of this Act prospective. SECTION 4. Effective date: September 1, 2001.