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.