82R7447 PMO-F

By: Hinojosa S.B. No. 1657

A BILL TO BE ENTITLED

AN ACT

relating to claims for and distribution of unclaimed land grant mineral proceeds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter E, Chapter 74, Property Code, is amended by adding Section 74.405 to read as follows:

Sec. 74.405. UNCLAIMED LAND GRANT MINERAL PROCEEDS. (a) In this section, "unclaimed land grant mineral proceeds" are mineral proceeds governed by Subchapter C, Chapter 75.

(b) Unclaimed land grant mineral proceeds delivered to the comptroller under this chapter may be distributed only under Subchapter C, Chapter 75.

SECTION 2. Section 74.601, Property Code, is amended by amending Subsection (b) and adding Subsection (h) to read as follows:

(b) Except as provided by Subsection (h), the [The] comptroller shall deposit to the credit of the general revenue fund:

(1) all funds, including marketable securities, delivered to the comptroller under this chapter or any other statute requiring the delivery of unclaimed property to the comptroller;

(2) all proceeds from the sale of any property, including marketable securities, under this chapter;

(3) all funds that have escheated to the state under Chapter 71, except that funds relating to escheated real property shall be deposited according to Section 71.202; and

(4) any income derived from investments of the unclaimed money.

(h) Not later than the 90th day after the end of each fiscal year, the comptroller shall deposit unclaimed land grant mineral proceeds delivered under this chapter to the credit of the unclaimed land grant mineral proceeds account in the general revenue fund. Money in the unclaimed land grant mineral proceeds account may be distributed only as provided by Subchapter C, Chapter 75.

SECTION 3. Section 75.001(a), Property Code, is amended by adding Subdivisions (4), (5), and (6) to read as follows:

(4) "Original land grant" means the initial conveyance of real property in this state, as evidenced by a certificate, title, or patent, from:

(A) the Crown of Spain;

(B) Mexico;

(C) the Republic of Texas; or

(D) this state.

(5) "Net mineral estate" means the percentage portion of mineral proceeds derived from an original land grant owned by a descendent of an original grantee.

(6) "Commission" means the Railroad Commission of Texas.

SECTION 4. Section 75.001(c), Property Code, is amended to read as follows:

(c) Except as provided by Subchapter C, a [A] holder of property presumed abandoned under this chapter is subject to the procedures of Chapter 74.

SECTION 5. Chapter 75, Property Code, is amended by adding Subchapter C to read as follows:

SUBCHAPTER C. UNCLAIMED LAND GRANT MINERAL PROCEEDS

Sec. 75.151. APPLICABILITY. This subchapter applies to all mineral proceeds that are:

(1) derived directly or indirectly from real property located in this state regardless of the location of the holder's formation, organization, incorporation, or domicile;

(2) unclaimed and presumed abandoned under this chapter or Chapter 72, 73, or 74;

(3) held by a holder or the comptroller; and

(4) reportable to the comptroller under Subchapter B, Chapter 74.

Sec. 75.152. CALCULATION OF MINERAL ESTATE. The Railroad Commission of Texas shall determine and report to the comptroller the extent of the mineral estate of each original land grant based on:

(1) information from commission records submitted by a land surveyor registered, licensed, or certified as provided by Chapter 1071, Occupations Code;

(2) commission archives and records;

(3) General Land Office records; and

(4) any other information that the commission by rule requires or approves.

Sec. 75.153. COMMISSION RULES. (a) The commission shall adopt rules and procedures reasonably required for the performance of its powers, duties, and functions under this subchapter, including rules for providing any notice and procedures for any public hearings. The rules for providing notice must include procedures for providing notice to affected persons. The commission by rule shall define who qualifies as an affected person for purposes of claiming unclaimed land grant mineral proceeds.

(b) The commission shall send copies of proposed rules to the comptroller and any other persons the commission determines appropriate. The commission shall allow any agency or person to whom the commission sends copies a reasonable period to submit comments and recommendations.

Sec. 75.154. CLAIM AGAINST UNCLAIMED LAND GRANT MINERAL PROCEEDS. (a) A person may submit a claim for the person's net mineral estate against unclaimed land grant mineral proceeds held by the comptroller by filing with the comptroller a form prescribed by rule adopted by the comptroller. In addition to the form, a person must submit:

(1) an affidavit stating that, to the best of the claimant's information, knowledge, and belief:

(A) the claimant does not receive and has never received mineral proceeds from the original land grant; and

(B) the claimant's ancestors do not or did not receive mineral proceeds from the original land grant; and

(2) a copy of a final, unappealable judgment establishing:

(A) the claimant's heirship as a descendent of the grantee of an original land grant; and

(B) the extent of the claimant's interest in the mineral proceeds of the land grant.

(b) A claimant may submit a claim under any line of descendency established in a final, unappealable judgment.

(c) The comptroller shall approve a claim that complies with Subsection (a).

Sec. 75.155. CALCULATION OF NET MINERAL ESTATE. (a) An approved claim under Section 75.154 must be paid in an amount calculated under Subsection (b).

(b) The comptroller shall calculate the amount of an approved claim in accordance with rules and procedures adopted by the comptroller and based on:

(1) the application form and other information submitted under Section 75.154(a);

(2) the mineral estate calculation report required under Section 75.152; and

(3) other relevant factors as determined by the comptroller.

Sec. 75.156. COMPTROLLER RULES. (a) The comptroller shall adopt rules and procedures reasonably required for the performance of the comptroller's powers, duties, and functions under this subchapter, including rules for providing notice and procedures for any public hearings. The rules for notice must include procedures for providing notice to affected persons, as defined by commission rule.

(b) The comptroller shall send copies of proposed rules to the commission and any other persons the comptroller determines appropriate. The comptroller shall allow any agency or person to whom the comptroller sends copies a reasonable period to submit comments and recommendations.

Sec. 75.157. ATTORNEY'S FEES. (a) An attorney licensed in this state may represent a claimant under this subchapter or in a judicial or administrative proceeding related to this subchapter.

(b) An attorney who represents a claimant under this subchapter or in a judicial or administrative proceeding related to this subchapter may contract with the claimant for attorney's fees on an hourly or contingency basis or otherwise, as prescribed by Rule 1.04, Texas Disciplinary Rules of Professional Conduct.

SECTION 6. (a) Not later than January 1, 2012, the Railroad Commission of Texas shall file the report described by Section 75.152, Property Code, as added by this Act.

(b) Not later than March 1, 2012, the Railroad Commission of Texas shall adopt rules and procedures as required by Section 75.153, Property Code, as added by this Act.

(c) Not later than April 1, 2012, the comptroller shall adopt rules and procedures as required by Section 75.156, Property Code, as added by this Act.

(d) Not later than the 30th day after the effective date of this Act, the comptroller shall transfer to the unclaimed land grant mineral proceeds account created under Section 74.601, Property Code, as amended by this Act, all unclaimed land grant mineral proceeds delivered to and held by the comptroller under Chapter 74, Property Code.

SECTION 7. (a) The change in law made by Section 75.157, Property Code, as added by this Act, applies to a contract executed before, on, or after the effective date of this Act.

(b) The changes in law made by Subchapter C, Chapter 75, as added by this Act, apply only to a claim filed on or after the effective date of this Act. A claim filed before the effective date of this Act is covered by the law in effect when the claim was filed, and the former law is continued in effect for that purpose.

SECTION 8. 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, 2011.