By:  Gallego                                                      H.B. No. 3435



A BILL TO BE ENTITLED

AN ACT

relating to the distribution of unclaimed funds in class action 
litigation. 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 31, Government Code, is amended by 
adding Section 31.009 as follows:
	Section 31.009.  Distribution of Unclaimed Class Settlement 
or Judgment Funds.  (a)  In any action certified pursuant to Rule 
42, Texas Rules of Civil Procedure, in which the settlement or 
judgment includes a monetary award (by way of damages, equitable 
restitution, or other payment due from each defendant to the class, 
prior to the entry of the settlement or judgment the court shall set 
a date when the parties shall report to the court the total amount 
of all funds paid to the class members.  After the report is 
received, the court shall amend the settlement or judgment to 
direct each defendant to pay the sum of any unpaid funds to the 
clerk of the court.
	(b)  Within 30 days of receiving funds under this section, 
the clerk of the court shall pay the funds to the clerk of the 
supreme court.  Funds received under this section shall be 
distributed to programs approved by the supreme court that provide 
civil legal services to the indigent.
	(c)  Funds received under this section are not subject to the 
provisions of section 31.008.
	(d)  This act shall not apply to lawsuits where an order 
approving a settlement, or the entry of judgment occurred before 
September 1, 2003.
	SECTION 2.  This act takes effect September 1, 2003.