By:  Ellis                                                        S.B. No. 1601


A BILL TO BE ENTITLED

AN ACT

relating to unclaimed funds in class actions.                                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 31, Civil Practice and Remedies Code, is 
amended by adding Section 31.009 to read as follows:
	Sec. 31.009.  UNCLAIMED CLASS ACTION SETTLEMENT OR JUDGMENT 
FUNDS.  (a)  This section applies only to an action certified as a 
class action under Rule 42, Texas Rules of Civil Procedure, in which 
the settlement or judgment includes a monetary award, including 
damages, equitable restitution, or other payment due from each 
defendant to the class.
	(b)  Before entering an order approving settlement or 
judgment, the court shall require all defendants to report to the 
court by a certain date the total amount of all funds paid to the 
class members.  After the report is received, the court may amend 
the settlement or judgment to direct each defendant to pay the sum 
of any unpaid funds to the clerk of the court.
	(c)  The trust fund for unclaimed class action settlement or 
judgment funds is created as a trust fund with the supreme court and 
shall be administered by the supreme court as trustee.  Interest 
earned on the trust fund shall be credited to the fund.
	(d)  On or before the 30th day after the date funds are 
received under Subsection (b), the clerk of the court shall pay the 
funds to the clerk of the supreme court for deposit in the trust 
fund for unclaimed class action settlement or judgment funds.  The 
supreme court may distribute funds in the trust fund only to 
programs approved by the supreme court that provide civil legal 
services to the indigent.
	(e)  Funds received under this section are not subject to 
Section 31.008.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to a suit in which an order approving settlement was 
entered or judgment was entered on or after that date.  A suit in 
which an order approving settlement was entered or judgment was 
entered before the effective date of this Act is governed by the law 
applicable to the suit immediately before the effective date of 
this Act, and that law is continued in effect for that purpose.