89R2925 ATP-F

By: Schwertner S.B. No. 1244

A BILL TO BE ENTITLED

AN ACT

relating to unclaimed securities and virtual currency that are presumed abandoned.

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

SECTION 1. Subchapter A, Chapter 72, Property Code, is amended by adding Section 72.002 to read as follows:

Sec. 72.002. DEFINITIONS. In this chapter:

(1) "Security" means:

(A) a security as defined by Section 8.102, Business & Commerce Code;

(B) a security entitlement as defined by Section 8.102, Business & Commerce Code, including a customer security account held by a registered broker-dealer, to the extent the financial assets held in the security account are not:

(i) registered on the books of the issuer in the name of the person for whom the broker-dealer holds the assets;

(ii) payable to the order of the person for whom the broker-dealer holds the assets; or

(iii) specifically indorsed to the person for whom the broker-dealer holds the assets; or

(C) an equity interest in a business association not included in Paragraph (A) or (B).

(2) "Virtual currency":

(A) means a digital representation of value that:

(i) is used as a medium of exchange, unit of account, or store of value; and

(ii) is not legal tender, whether or not denominated in legal tender; and

(B) does not include:

(i) a transaction in which a merchant grants, as part of an affinity or rewards program, value that cannot be taken from or exchanged with the merchant for legal tender, bank credit, or virtual currency; or

(ii) a digital representation of value issued by or on behalf of a publisher and used solely within an online game, game platform, or family of games sold by the same publisher or offered on the same game platform.

SECTION 2. Section 72.101(b), Property Code, is amended to read as follows:

(b)(1) The three-year period leading to a presumption of abandonment of a security or virtual currency [stock or another intangible ownership interest in a business association, the existence of which is evidenced by records available to the association,] commences on the first date that [either a sum payable as a result of the ownership interest is unclaimed by the owner or] a written or electronic communication to the owner is returned undelivered by the United States Postal Service or by electronic mail or other electronic messaging method, as applicable.

(2) The running of the three-year period of abandonment ceases immediately on the exercise of an act of ownership interest in the security or virtual currency [or sum payable] or a written, oral, or electronic communication with the holder [association] as evidenced by a memorandum or other record on file with the holder [association] or the holder's [its] agents.

(3) At the time a security or virtual currency [an ownership] is presumed abandoned under this section, any sum then held for interest or owing to the owner as a result of the security or virtual currency [interest] and not previously presumed abandoned is presumed abandoned.

(4) For purposes of this section, an exercise of an act of ownership interest with respect to a security or virtual currency includes an owner:

(A) conducting a transaction regarding the security or virtual currency or the account in which the security or virtual currency is held, including depositing funds into or withdrawing funds from the account by a one-time transaction or a recurring transaction previously authorized by the owner other than an [Any stock or other intangible ownership interest enrolled in a plan that provides for the] automatic reinvestment of dividends[, distributions,] or [other sums payable as a result of the ownership] interest;

(B) electronically accessing the account in which the security or virtual currency is held;

(C) conducting any activity with respect to another account owned by the owner with the same holder; and

(D) taking any other action that reasonably demonstrates to the holder that the owner knows that the property exists [is subject to the presumption of abandonment as provided by this section].

SECTION 3. Section 74.301, Property Code, is amended by amending Subsection (a) and adding Subsections (d) and (e) to read as follows:

(a) Except as provided by Subsections [Subsection] (c) and (d), each holder who on March 1 holds property to which this chapter applies shall deliver the property to the comptroller on or before the following July 1 accompanied by the report required to be filed under Section 74.101.

(d) If the property subject to delivery under Subsection (a) are digital assets, cryptocurrency, or other tradeable virtual currency redeemable for fiat currency and the holder has full control of the necessary private keys required to transfer the virtual currency, the holder shall report and, before the 30th day after the reporting date, deliver the virtual currency in its native form at the direction of the comptroller to either the comptroller's designated custodian or an in-house account at the holder established by and for the comptroller. The holder shall provide the comptroller with proof of delivery with the report required to be filed under Section 74.101. If the holder possesses only a partial private key to the virtual currency subject to delivery under Subsection (a) and is unable to move the virtual currency, the holder shall maintain the virtual currency until the additional keys required to transfer the asset become available and file the report as required by Section 74.101. For property that is not considered transferable or reportable to the state under this subsection, the holder shall send paper or electronic mail notices using the last known address of the owner, if available, at least once each year in an attempt to reunite the owner with the owner's assets.

(e) For purposes of Subsection (d), "virtual currency" has the meaning assigned by Section 72.002.

SECTION 4. Section 74.405, Property Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows:

(b) The comptroller may not sell a security listed on an established stock exchange or virtual currency listed on a virtual currency exchange for less than the price prevailing on the applicable exchange at the time of sale. The comptroller may sell a security or virtual currency not listed on an established exchange by any commercially reasonable method.

(c) For purposes of Subsection (b), "security" and "virtual currency" have the meanings assigned by Section 72.002.

SECTION 5. This Act takes effect September 1, 2025.