78R6337 AJA-F

By:  Swinford                                                     H.B. No. 2310



A BILL TO BE ENTITLED

AN ACT

relating to abandonment of proceeds from the demutualization of an 
insurance company.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 72.101, Property Code, is amended by 
adding Subsection (c) to read as follows:
	(c)  The three-year period leading to a presumption of 
abandonment of proceeds from the demutualization of an insurance 
company begins on the earlier of the date of the last contact with 
the policyholder entitled to the proceeds or the date of the 
demutualization.
	SECTION 2.  Section 74.301, Property Code, is amended by 
amending Subsection (a) and adding Subsection (d) to read as 
follows:
	(a)  Except as provided by Subsection (c) or (d), each holder 
who on June 30 holds property that is presumed abandoned under 
Chapter 72, 73, or 75 shall deliver the property to the comptroller 
on or before the following November 1 accompanied by the report 
required to be filed under Section 74.101.
	(d)  If the property subject to delivery under Subsection (a) 
is proceeds from the demutualization of an insurance company, the 
holder shall deliver the property and required report to the 
comptroller on or before the following August 1.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.