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A BILL TO BE ENTITLED
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AN ACT
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relating to the escheat of Unites States savings bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 71, Property Code, is amended by adding |
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SUBCHAPTER E to read as follows: |
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SUBCHAPTER E. ESCHEAT OF UNITED STATES SAVINGS BONDS |
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Sec. 71.401 (a) "United States savings bond" means |
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property, tangible or intangible, in the form of a savings bond |
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issued by the United States Treasury whether in paper form, |
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electric, or paperless form, along with all proceeds thereof. |
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(b) Notwithstanding other provisions of this chapter and |
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any other contrary provision of Title 6 or other law, United States |
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savings bonds which are subject to the provisions of this Title, |
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including bonds in the possession of the comptroller, and those |
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lost, stolen, or destroyed bonds registered to persons with last |
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known addresses in the state, shall be presumed abandoned when such |
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bonds have remained unclaimed for three years after their date of |
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maturity. |
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(c) United States savings bonds which are presumed |
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abandoned under Subsection (b), including bonds in the possession |
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of the comptroller, and those lost, stolen, or destroyed bonds |
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registered to persons with last known addresses in the state, shall |
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escheat to the State of Texas three years after such bonds are |
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presumed abandoned, and all property rights and legal title to and |
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ownership of such United States Savings Bonds or proceeds from such |
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bonds, including all rights, powers, and privileges of survivorship |
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of any owner, co-owner or beneficiary, shall vest solely in the |
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State of Texas according to the procedure set forth in Subsections |
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(d) through (h). |
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(d) Within 180 days after the applicable three years in |
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Subsection (c), if no claim has been filed in accordance with the |
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provisions of this Title for such United States savings bonds, the |
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comptroller shall commence a civil action in a district court in |
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Travis County, Texas, or in any other court of competent |
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jurisdiction, for a determination that such United States savings |
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bonds have escheated to the state of Texas. The comptroller may |
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postpone the bringing of such action until sufficient United States |
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savings bonds have accumulated in the comptroller's custody to |
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justify the expense of such proceedings. |
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(e) The sheriff or any constable of any county of the State |
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of Texas or the clerk of the court in which the case is pending shall |
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make service of the citation by publication in accordance with the |
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provisions of Texas Rules of Civil Procedure, Part II, Section 5, |
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Rules 109 through 118. |
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(f) If no person shall file a claim or appear at the hearing |
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to substantiate a claim or where the court shall determine that a |
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claimant is not entitled to the property claimed by such claimant, |
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then the court, if satisfied by evidence that the comptroller has |
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substantially complied with the laws of this state, shall enter a |
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judgment that the subject United States savings bonds have |
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escheated to the State of Texas, and all property rights and legal |
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title to and ownership of such United States savings bonds or |
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proceeds from such bonds, including all rights, powers, and |
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privileges of survivorship of any owner, co-owner, or beneficiary, |
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have vested solely in the state of Texas. |
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(g) Notwithstanding Sections 74.507 and 74.704, the |
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comptroller shall redeem such United States savings bonds escheated |
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to the State of Texas and when the proceeds which have escheated |
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have been recovered by the comptroller, it shall first pay all costs |
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incident to the collection and recovery of such proceeds from the |
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redemption of the United States savings bonds and shall thereafter |
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promptly deposit the remaining balance of such proceeds in the |
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general revenue fund [or any other fund you decide is correct] to be |
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distributed in accordance with law. |
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(h) Any person making a claim for the United States savings |
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bonds escheated to the State of Texas under this Chapter, or for the |
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proceeds from such bonds, may file a claim with the comptroller. |
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Upon providing sufficient proof of the validity of such person's |
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claim, the Treasurer may, in his or her sole discretion, pay such |
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claim less any expenses and costs which shall have been incurred by |
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the state in securing full title and ownership of such property by |
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escheat. If payment has been made to any claimant, no action |
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thereafter shall be maintained by any other claimant against the |
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state or any officer thereof, for or on account of such funds. |
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SECTION 2. Section 74.001(a), Property Code, is amended to |
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read as follows: |
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(a) Except as provided by Subsection (b), this chapter |
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applies to a holder of property that is presumed abandoned under |
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Chapter 71 Subchapter E, Chapter 72, Chapter 73, or Chapter 75. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |