Bill Text: TX HB3598 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to certain unclaimed property that is presumed abandoned.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2019-06-10 - Effective immediately [HB3598 Detail]
Download: Texas-2019-HB3598-Enrolled.html
H.B. No. 3598 |
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relating to certain unclaimed property that is presumed abandoned. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 72.101(a), Property Code, is amended to | ||
read as follows: | ||
(a) Except as provided by this section and Sections 72.1015, | ||
72.1016, 72.1017, 72.102, and 72.104, personal property is presumed | ||
abandoned if, for longer than three years: | ||
(1) the [ |
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property is unknown to the holder of the property; and | ||
(2) according to the knowledge and records of the | ||
holder of the property, a claim to the property has not been | ||
asserted or an act of ownership of the property has not been | ||
exercised. | ||
SECTION 2. Section 74.001(a), Property Code, is amended to | ||
read as follows: | ||
(a) Except as provided by Subsection (b), this chapter | ||
applies to [ |
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Chapter 72, Chapter 73, or Chapter 75. | ||
SECTION 3. Section 74.103(b), Property Code, is amended to | ||
read as follows: | ||
(b) Without regard to whether the property is reported in | ||
the aggregate, the [ |
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later of: | ||
(1) the date on which the property is reportable; or | ||
(2) the date the report is filed[ |
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SECTION 4. Subchapter B, Chapter 74, Property Code, is | ||
amended by adding Sections 74.105 and 74.106 to read as follows: | ||
Sec. 74.105. COMBINED REPORTING. (a) In this section: | ||
(1) "Affiliated group" means a group of one or more | ||
entities in which a controlling interest is owned by a common owner, | ||
either corporate or noncorporate, or by one or more of the member | ||
entities. | ||
(2) "Controlling interest" means: | ||
(A) for a corporation, more than 50 percent, | ||
owned directly or indirectly, of the total voting power of all | ||
classes of stock of the corporation; | ||
(B) for a partnership, more than 50 percent, | ||
owned directly or indirectly, of the capital or profits in the | ||
partnership; | ||
(C) for a limited liability company, more than 50 | ||
percent, owned directly or indirectly, of the total membership | ||
interest of the limited liability company; and | ||
(D) for an association, trust, or other entity, | ||
more than 50 percent, owned directly or indirectly, of the | ||
beneficial interest in the association, trust, or other entity. | ||
(b) If a holder that is required to file a property report | ||
under this chapter is a member of an affiliated group, the holder | ||
shall file one report for the affiliated group. | ||
Sec. 74.106. CONTINUING REPORTING REQUIREMENT. (a) A | ||
person who is required to file a property report under Section | ||
74.101 in any year shall file a property report in each successive | ||
year. | ||
(b) If a person required to file a property report under | ||
this section is not holding any property that is reportable under | ||
this chapter, the person shall certify that fact. | ||
SECTION 5. Subchapter C, Chapter 74, Property Code, is | ||
amended by adding Section 74.206 to read as follows: | ||
Sec. 74.206. ADVERTISING AND PROMOTION. The comptroller | ||
may advertise or otherwise promote the unclaimed property program | ||
in any available media to further the purposes of this title and to | ||
provide effective and efficient notice to reported owners. | ||
SECTION 6. Section 74.401(a), Property Code, is amended to | ||
read as follows: | ||
(a) Except as provided by [ |
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74.404, the comptroller may [ |
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personal property, other than money and marketable securities, | ||
delivered to the comptroller in accordance with Section 74.301. | ||
The comptroller may [ |
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the manner [ |
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affords the most favorable market for the particular property. | ||
SECTION 7. Sections 74.501(d) and (e), Property Code, are | ||
amended to read as follows: | ||
(d) On receipt of a claim form and all necessary | ||
documentation and as may be appropriate under the circumstances, | ||
the comptroller may approve the claim of: | ||
(1) the reported owner of the property; | ||
(2) if the reported owner died testate: | ||
(A) the appropriate legal beneficiaries of the | ||
owner as provided by the last will and testament of the owner that | ||
has been accepted into probate or filed as a muniment of title; or | ||
(B) the executor of the owner's last will and | ||
testament who holds current letters testamentary; | ||
(3) if the reported owner died intestate: | ||
(A) the legal heirs of the owner as provided by | ||
Sections 201.001 and 201.002, Estates Code; or | ||
(B) the court-appointed administrator of the | ||
owner's estate, if the administrator was appointed before the | ||
fourth anniversary of the date of the death of the owner; | ||
(4) the legal heirs of the reported owner as | ||
established by an affidavit of heirship order signed by a judge of | ||
the county probate court or by a county judge; | ||
(5) if the reported owner is a minor child or an adult | ||
who has been adjudged incompetent by a court of law, the parent or | ||
legal guardian of the child or adult; | ||
(6) if the reported owner is a corporation: | ||
(A) the president or chair of the board of | ||
directors of the corporation, on behalf of the corporation; or | ||
(B) any person who has legal authority to act on | ||
behalf of the corporation; | ||
(7) if the reported owner is a corporation that has | ||
been dissolved or liquidated: | ||
(A) the sole surviving shareholder of the | ||
corporation, if there is only one surviving shareholder; | ||
(B) the surviving shareholders of the | ||
corporation in proportion to their ownership of the corporation, if | ||
there is more than one surviving shareholder; | ||
(C) the corporation's bankruptcy trustee; or | ||
(D) the court-ordered receiver for the | ||
corporation; or | ||
(8) any other person that is entitled to receive the | ||
unclaimed property under other law or comptroller policy. | ||
(e) Except as provided by Subsection (f), the comptroller | ||
may not pay to the following persons a claim to which this section | ||
applies: | ||
(1) a creditor, a judgment creditor, a lienholder, or | ||
an assignee of the reported owner or of the owner's heirs; [ |
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(2) a person holding a power of attorney from the | ||
reported owner or the owner's heirs; or | ||
(3) a person attempting to make a claim on behalf of a | ||
corporation that was previously forfeited, dissolved, or | ||
terminated, if the comptroller finds that: | ||
(A) the corporation was revived for the purpose | ||
of making a claim under this section; and | ||
(B) the person submitting the claim was not an | ||
authorized representative of the corporation at the time of the | ||
corporation's forfeiture, dissolution, or termination. | ||
SECTION 8. Section 74.702, Property Code, is amended by | ||
amending Subsection (a) and adding Subsection (c) to read as | ||
follows: | ||
(a) For purposes of the application and enforcement of this | ||
title [ |
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attorney general, or an authorized agent of either, may at any | ||
reasonable time and place, [ |
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any person to determine whether the person has complied with this | ||
title [ |
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(c) Subsection (a) applies to any books, records, papers, | ||
information, or other objects determined by the comptroller or | ||
attorney general to be necessary to conduct a complete examination | ||
under this title. | ||
SECTION 9. Subchapter H, Chapter 74, Property Code, is | ||
amended by adding Section 74.7021 to read as follows: | ||
Sec. 74.7021. LIMITATION PERIOD FOR EXAMINATION. (a) The | ||
comptroller or attorney general may not begin an examination | ||
relating to the reporting, payment, or delivery of property under | ||
this chapter after the seventh anniversary of the date a person | ||
filed a property report under this title. | ||
(b) The limitation provided by this section does not apply | ||
if: | ||
(1) the person has filed a false or fraudulent | ||
property report with the intent to avoid delivery of property as | ||
required by this title; | ||
(2) a property report for a period has not been filed; | ||
or | ||
(3) a court grants a petition to compel the person to | ||
submit to an examination under this chapter, deliver property, or | ||
file a property report. | ||
(c) For purposes of Subsection (b)(1), a person is presumed | ||
to have acted with intent to avoid delivery of property as required | ||
by this title if, after correction of a report, the amount of | ||
property to be delivered under this title exceeds the amount | ||
initially reported by at least 25 percent. | ||
SECTION 10. Section 74.704, Property Code, is amended to | ||
read as follows: | ||
Sec. 74.704. ASSISTANCE IN ENFORCEMENT. (a) If the | ||
comptroller requests, the attorney general shall assist the | ||
comptroller in enforcing this title. | ||
(b) If the comptroller or the attorney general requests, the | ||
state auditor [ |
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insurance, savings and mortgage lending commissioner, Credit Union | ||
Commission, Department of Public Safety of the State of Texas, or | ||
Texas Workforce Commission, a [ |
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or any other state agency or political subdivision of this state | ||
shall assist the comptroller or attorney general in enforcing this | ||
title. | ||
(c) Notwithstanding any other law, a state agency or | ||
political subdivision may not impose a charge for providing a copy | ||
of public information requested by the comptroller under this | ||
section. | ||
SECTION 11. Section 74.709(a), Property Code, is amended to | ||
read as follows: | ||
(a) On request of the comptroller, the attorney general | ||
shall bring an action in district court, in the name of the state, | ||
to compel a person [ |
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(1) permit examination of records in accordance with | ||
this chapter; | ||
(2) deliver property; or | ||
(3) [ |
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SECTION 12. Subchapter H, Chapter 74, Property Code, is | ||
amended by adding Sections 74.711 and 74.712 to read as follows: | ||
Sec. 74.711. AUTHORITY TO TAKE TESTIMONY AND ISSUE | ||
ADMINISTRATIVE SUBPOENAS. (a) To enforce this title, the | ||
comptroller may: | ||
(1) take testimony; | ||
(2) administer oaths; and | ||
(3) issue subpoenas to compel any person to: | ||
(A) appear and give testimony under oath at a | ||
time and place reasonable under the circumstances; or | ||
(B) produce relevant books, records, documents, | ||
or other data, in whatever form, for audit, inspection, and | ||
copying. | ||
(b) The comptroller may delegate the authority granted | ||
under this section to take testimony, administer oaths, and issue | ||
subpoenas to an attorney employed by the comptroller. | ||
(c) A person authorized to serve process under the Texas | ||
Rules of Civil Procedure may serve a subpoena issued under this | ||
section. The person shall serve the subpoena in accordance with the | ||
Texas Rules of Civil Procedure. | ||
Sec. 74.712. ENFORCEMENT OF SUBPOENAS. (a) If the person | ||
to whom a subpoena is directed under Section 74.711 fails to comply | ||
with the subpoena, or fails to file a motion to quash or otherwise | ||
demand a pre-compliance review of the subpoena, within the return | ||
date specified in the subpoena, the attorney general shall, on the | ||
request of the comptroller, bring suit to enforce the subpoena. The | ||
suit may be brought in a district court of Travis County. | ||
(b) A court that determines that the subpoena was issued in | ||
good faith shall order compliance with the subpoena. The court may | ||
apply penalties for civil and criminal contempt otherwise available | ||
at law if a person refuses to comply with the court's order. | ||
SECTION 13. Section 74.401(c), Property Code, is repealed. | ||
SECTION 14. The limitation provided by Section 74.7021, | ||
Property Code, as added by this Act, applies only to an examination | ||
commenced on or after the effective date of this Act. An | ||
examination commenced before the effective date of this Act is | ||
governed by the law in effect on the date the examination commenced, | ||
and the former law is continued in effect for that purpose. | ||
SECTION 15. 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, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3598 was passed by the House on May 3, | ||
2019, by the following vote: Yeas 139, Nays 1, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3598 was passed by the Senate on May | ||
22, 2019, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |