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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of heir finders by the Texas Private |
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Security Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1702.002, Occupations Code, is amended |
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by adding Subdivisions (6-b) and (8-a) to read as follows: |
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(6-b) "Estate," "heir," and "probate court" have the |
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meanings assigned by Section 3, Texas Probate Code. |
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(8-a) "Heir finder" means a person who for payment of a |
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fee, assignment of a portion of any interest in a decedent's estate, |
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or other consideration provides information, assistance, forensic |
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genealogy research, or other efforts related to another person's |
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right to or interest in a decedent's estate. |
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SECTION 2. Section 1702.004(a), Occupations Code, is |
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amended to read as follows: |
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(a) The board, in addition to performing duties required by |
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other law or exercising powers granted by other law: |
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(1) licenses investigations companies and security |
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services contractors; |
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(2) issues commissions to certain security officers; |
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(3) issues authorizations to certain security |
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officers engaged in the personal protection of individuals; |
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(4) registers: |
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(A) certain individuals connected with a license |
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holder; and |
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(B) certain individuals employed in a field |
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connected to private investigation or private security; [and] |
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(5) registers heir finders under Subchapter K-1; and |
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(6) regulates license holders, security officers, and |
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registrants under this chapter. |
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SECTION 3. Section 1702.042, Occupations Code, is amended |
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to read as follows: |
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Sec. 1702.042. PERSONNEL; CONFLICT OF INTEREST. An |
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employee of the commission may not: |
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(1) have a financial or business interest, contingent |
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or otherwise, in a security services contractor, [or] |
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investigations company, or company providing services as an heir |
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finder; or |
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(2) be licensed under this chapter. |
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SECTION 4. Chapter 1702, Occupations Code, is amended by |
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adding Subchapter K-1 to read as follows: |
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SUBCHAPTER K-1. REGULATION OF HEIR FINDERS |
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Sec. 1702.271. DEFINITION. In this subchapter, "family |
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member," with respect to a decedent, means a person who would be |
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considered an heir of the decedent at the time of the decedent's |
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death. |
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Sec. 1702.272. APPLICATION OF SUBCHAPTER. (a) This |
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subchapter does not apply to: |
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(1) a person acting in the capacity of a personal |
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representative, attorney ad litem, guardian ad litem, or other |
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person appointed by a probate court in which a proceeding in |
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connection with a decedent's estate is pending; or |
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(2) an attorney providing legal services to a |
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decedent's family member if the attorney has not agreed to pay to |
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any other person a portion of the fees received from the family |
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member or the family member's interest in the decedent's estate. |
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(b) In this section, "attorney ad litem," "guardian ad |
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litem," and "personal representative" have the meanings assigned by |
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the Texas Probate Code. |
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Sec. 1702.273. REGISTRATION REQUIRED. (a) A person may not |
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offer to provide or provide services as an heir finder unless the |
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person registers with the board. |
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(b) Notwithstanding any other provision of this chapter, an |
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heir finder is not required to be licensed or affiliated with a |
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license holder. |
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(c) A registration under this subchapter does not expire. |
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Sec. 1702.274. REGISTRATION APPLICATION. An application |
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for registration under this subchapter must be in the form |
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prescribed by the board and include: |
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(1) the full name and business address of the |
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applicant; |
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(2) the name under which the applicant intends to do |
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business; |
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(3) a statement as to the general nature of the |
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business in which the applicant intends to engage; |
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(4) if the applicant is an entity other than an |
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individual, the full name and residence address of each partner, |
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officer, and director of the applicant, and of the applicant's |
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manager; |
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(5) if the applicant is an individual, two |
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classifiable sets of fingerprints of the applicant or, if the |
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applicant is an entity other than an individual, of each officer and |
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of each partner or shareholder who owns at least a 25 percent |
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interest in the applicant; |
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(6) a verified statement of the applicant's experience |
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and qualifications; |
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(7) a report from the department stating the |
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applicant's record of any convictions for a Class B misdemeanor or |
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equivalent offense or a greater offense; |
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(8) the social security number of the individual |
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making the application; and |
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(9) other information, evidence, statements, or |
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documents required by the board. |
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Sec. 1702.275. FEES. The board may adopt fees as necessary |
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for the registration of heir finders under this subchapter. |
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Sec. 1702.276. PROHIBITED CONTRACTS. (a) This section |
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applies only to a contract or other agreement that: |
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(1) is entered into with a family member of a decedent |
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or with another person on behalf of the family member; and |
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(2) provides for payment of a fee, assignment of a |
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portion of any interest in the decedent's estate, or other |
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consideration by the family member out of the family member's right |
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to or interest in the decedent's estate or to a person registered |
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under this subchapter for providing information, assistance, |
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forensic genealogy research, or other efforts related to the family |
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member's right to or interest in the decedent's estate or property. |
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(b) A person registered under this subchapter may not enter |
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into a contract or other agreement described by Subsection (a): |
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(1) during the six-month period after the earlier of: |
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(A) the date of the filing of an application for |
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determination of heirship of the decedent; or |
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(B) the date of the filing of a pleading to |
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determine which family members of the decedent have a right to |
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property in the decedent's estate, if the right to the property is |
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based principally on the probate court's determination of the |
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decedent's family history; or |
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(2) if the amount or value of the fee, assignment, or |
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other consideration is greater than 10 percent of the value of the |
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family member's right to or interest in the decedent's estate. |
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(c) A contract entered into in violation of this section is |
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void. |
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Sec. 1702.277. COMPLAINTS AND DISCIPLINARY ACTIONS. A |
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person registered under this subchapter is subject to the same |
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complaint procedures and disciplinary actions as other persons |
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regulated under this chapter. |
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Sec. 1702.278. PENALTIES. A person registered under this |
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subchapter is subject to the same penalties and enforcement |
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procedures as other persons regulated under this chapter. |
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Sec. 1702.279. FIDUCIARY DUTY; LIABILITY. (a) A person |
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registered under this subchapter who provides services as an heir |
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finder to another person owes a fiduciary duty to the other person |
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to act in that person's best interest. |
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(b) A person who breaches a fiduciary duty under Subsection |
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(a) is liable for any damages resulting from the breach, including: |
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(1) any loss or depreciation in value of the estate as |
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a result of the breach; |
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(2) any profit made by the person as a result of the |
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breach; |
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(3) any profit that would have accrued to the estate if |
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there had been no breach; |
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(4) exemplary damages; and |
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(5) costs and attorney's fees incurred as a result of |
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the breach. |
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SECTION 5. As soon as possible after the effective date of |
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this Act, the Texas Private Security Board shall adopt the form, |
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procedures, and fees necessary to implement Subchapter K-1, Chapter |
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1702, Occupations Code, as added by this Act. |
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SECTION 6. Notwithstanding Subchapter K-1, Chapter 1702, |
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Occupations Code, as added by this Act, a person offering to provide |
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or providing services as an heir finder is not required to register |
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under that subchapter before January 1, 2010. |
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SECTION 7. Section 1702.276, Occupations Code, as added by |
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this Act, applies only to a contract entered into on or after |
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January 1, 2010. |
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SECTION 8. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect September 1, 2009. |
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(b) Sections 1702.273, 1702.276, 1702.277, 1702.278, and |
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1702.279, Occupations Code, as added by this Act, take effect |
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January 1, 2010. |