Bill Text: TX SB789 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the administration of unclaimed property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-11 - Referred to State Affairs [SB789 Detail]
Download: Texas-2021-SB789-Introduced.html
87R6440 DRS-F | ||
By: Zaffirini | S.B. No. 789 |
|
||
|
||
relating to the administration of unclaimed property. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 551.005(b), Estates Code, is amended to | ||
read as follows: | ||
(b) The clerk of a court that orders an executor or | ||
administrator to pay funds to the comptroller under Section 551.001 | ||
shall provide to [ |
||
e-mail [ |
||
court order not later than the fifth day after the date the order is | ||
issued. | ||
SECTION 2. Section 1109.013(c), Insurance Code, is amended | ||
to read as follows: | ||
(c) An insurer shall report and deliver unclaimed proceeds | ||
to the comptroller as required by Chapter 74, Property Code | ||
[ |
||
SECTION 3. Section 72.001, Property Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) Tangible or intangible personal property is not | ||
subject to this chapter if it is: | ||
(1) a worthless or non-freely transferable security; | ||
or | ||
(2) a firearm. | ||
SECTION 4. Section 74.001(a), Property Code, is amended to | ||
read as follows: | ||
(a) Except as provided by this section [ |
||
this chapter applies to: | ||
(1) property that is presumed abandoned under Chapter | ||
72, Chapter 73, or Chapter 75; | ||
(2) property that is presumed abandoned under Chapter | ||
154, Finance Code; | ||
(3) unclaimed proceeds under Chapter 1109, Insurance | ||
Code; or | ||
(4) any other law requiring a person to report and | ||
deliver property to the comptroller under this chapter. | ||
SECTION 5. Section 74.101(a), Property Code, is amended to | ||
read as follows: | ||
(a) Each holder who on March 1 holds property to which this | ||
chapter applies [ |
||
report of that property on or before the following July 1. The | ||
comptroller may require the report to be in a particular format, | ||
including a format that can be read by a computer. | ||
SECTION 6. Sections 74.1011(a), (b), and (b-1), Property | ||
Code, are amended to read as follows: | ||
(a) Except as provided by Subsection (b), a holder who on | ||
March 1 holds property to which this chapter applies that is valued | ||
at more than $250 [ |
||
than the 60th day before the date the property is delivered to the | ||
comptroller, provide to the owner by [ |
||
written notice stating that: | ||
(1) the holder is holding the property; and | ||
(2) the holder may be required to deliver the property | ||
to the comptroller on or before July 1 if the property is not | ||
claimed. | ||
(b) The notice required under Subsection (a) does not apply | ||
to a holder who: | ||
(1) has already provided such notice to the owner of | ||
the property or a person entitled to the property under existing | ||
federal law, rules, and regulations or state law within the time | ||
specified under Subsection (a); or | ||
(2) does not have a record of a physical or e-mail [ |
||
address for the property owner or any other person entitled to the | ||
property. | ||
(b-1) If an owner has designated a representative for notice | ||
under Section 72.1021 or 73.103, the holder shall mail or e-mail the | ||
written notice required under Subsection (a) to the representative | ||
in addition to providing written [ |
||
SECTION 7. Section 74.301(a), Property Code, is amended to | ||
read as follows: | ||
(a) Except as provided by Subsection (c), each holder who on | ||
March 1 holds property to which this chapter applies [ |
||
property to the comptroller on or before the following July 1 | ||
accompanied by the report required to be filed under Section | ||
74.101. | ||
SECTION 8. Section 74.401(d), Property Code, is amended to | ||
read as follows: | ||
(d) If after investigation the comptroller determines that | ||
property delivered under this chapter is not marketable or [ |
||
value, the comptroller may destroy or otherwise dispose of the | ||
property at any time. | ||
SECTION 9. Subchapter E, Chapter 74, Property Code, is | ||
amended by adding Section 74.405 to read as follows: | ||
Sec. 74.405. DISPOSITION OF SECURITIES. (a) The | ||
comptroller may sell or otherwise liquidate a security delivered to | ||
the comptroller under this chapter. | ||
(b) The comptroller may not sell a security listed on an | ||
established stock exchange for less than the price prevailing on | ||
the exchange at the time of sale. The comptroller may sell a | ||
security not listed on an established exchange by any commercially | ||
reasonable method. | ||
SECTION 10. Sections 74.501(c), (d), and (f), Property | ||
Code, are amended to read as follows: | ||
(c) All claims to which this subchapter [ |
||
must: | ||
(1) identify the specific property in the possession | ||
of the comptroller that is being claimed; | ||
(2) include all necessary documentation the | ||
comptroller may require; and | ||
(3) except as provided by Section 74.503, be filed in | ||
accordance with procedures, contain the information, and be on | ||
forms prescribed by the comptroller. | ||
(d) On receipt of a claim form and all necessary | ||
documentation the comptroller may require, or [ |
||
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; [ |
||
(B) the executor of the owner's last will and | ||
testament who holds current letters testamentary; or | ||
(C) the appropriate legal beneficiaries of the | ||
owner as provided by a valid last will and testament of the owner | ||
that has not been accepted into probate or filed as a muniment of | ||
title, if: | ||
(i) the amount of the property being | ||
claimed is less than $10,000; and | ||
(ii) the beneficiaries named in the will | ||
are the same persons who would inherit the property if the owner had | ||
died intestate; | ||
(3) if the reported owner died intestate: | ||
(A) the legal heirs of the owner as provided by | ||
Sections 201.001,[ |
||
(B) the court-appointed independent | ||
administrator of the owner's estate, if the administrator was | ||
appointed before the fourth anniversary of the date of the death of | ||
the owner; or | ||
(C) the court-appointed dependent administrator | ||
of the owner's estate; | ||
(4) the legal heirs of the reported owner as | ||
established by a determination [ |
||
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, | ||
bankruptcy estate representative, or other person authorized | ||
pursuant to Title 11, United States Code, or an order of a | ||
bankruptcy court to act on behalf of or for the benefit of the | ||
corporation's bankruptcy estate, or any assignee of any such | ||
person; 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. | ||
(f) Notwithstanding Subsection (e), the [ |
||
may approve the [ |
||
(1) the attorney general or other Title IV-D agency, | ||
as defined by Section 101.033, Family Code, for child support | ||
arrearages owed by the reported owner of the property that are [ |
||
reflected in a child support lien notice that complies with Section | ||
157.313, Family Code; or | ||
(2) a person holding a durable power of attorney of a | ||
person who is medically incapacitated. [ |
||
SECTION 11. Section 74.501(e), Property Code, as amended by | ||
Chapters 267 (S.B. 1420) and 897 (H.B. 3598), Acts of the 86th | ||
Legislature, Regular Session, 2019, is reenacted and amended to | ||
read as follows: | ||
(e) Except as provided by Subsection (d)(7) or (f) or | ||
Section 551.051, Estates Code, 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; | ||
(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 12. Subchapter F, Chapter 74, Property Code, is | ||
amended by adding Section 74.503 to read as follows: | ||
Sec. 74.503. WAIVER OF CLAIM REQUIREMENT. The comptroller | ||
may waive the requirement of filing a claim and pay or deliver | ||
property directly to a person who does not file a claim if: | ||
(1) the person receiving the property is the reported | ||
owner of the property; | ||
(2) the comptroller reasonably believes the person is | ||
entitled to receive the property or payment; and | ||
(3) the property has a value of less than $5,000. | ||
SECTION 13. Sections 74.506(a) and (b), Property Code, are | ||
amended to read as follows: | ||
(a) A person who has filed a claim that complies with | ||
Section 74.501(c) may appeal [ |
||
comptroller on the [ |
||
was rendered. | ||
(b) If a claim that complies with Section 74.501(c) has not | ||
been decided before the 91st day after the day on which it was | ||
filed, the claimant may file an appeal if, after the claimant | ||
provides notice by certified mail to the comptroller of the intent | ||
to file an appeal, the comptroller does not reach a decision on the | ||
claim on or before the 60th day after the date the notice is | ||
delivered to the comptroller. An appeal under this section must be | ||
made within one year of the date the claim was filed [ |
||
SECTION 14. The heading to Section 74.507, Property Code, | ||
is amended to read as follows: | ||
Sec. 74.507. ASSISTANCE OF CLAIMANT; FEE FOR RECOVERY. | ||
SECTION 15. Section 74.507, Property Code, is amended by | ||
amending Subsection (a) and adding Subsection (c) to read as | ||
follows: | ||
(a) A person who informs a potential claimant that the | ||
claimant may be entitled to claim property that is reportable to the | ||
comptroller under this chapter, that has been reported to the | ||
comptroller, or that is in the possession of the comptroller may not | ||
contract for or receive from the claimant for services an amount | ||
that exceeds 10 percent of the value of the property recovered, plus | ||
reasonable attorney's fees necessary to pursue the claim. If the | ||
property involved is mineral proceeds, the amount for services may | ||
not include a portion of the underlying minerals or any production | ||
payment, overriding royalty, or similar payment. | ||
(c) An agreement to assist a claimant in the recovery of | ||
property that is reportable to the comptroller, that has been | ||
reported to the comptroller, or that is in the possession of the | ||
comptroller under this chapter is enforceable only if the | ||
agreement: | ||
(1) clearly states the nature of the property and the | ||
services to be provided; | ||
(2) is signed by or on behalf of the claimant; and | ||
(3) states the amount or value of the property | ||
reasonably expected to be recovered, computed before and after a | ||
fee or other compensation has been deducted. | ||
SECTION 16. Section 74.601(e), Property Code, is amended to | ||
read as follows: | ||
(e) The comptroller may [ |
||
proceeds from the sale of securities delivered under this chapter | ||
to buy, exchange, invest, or reinvest in marketable securities. | ||
When making or selling the investments, the comptroller shall | ||
exercise the judgment and care of a prudent person. | ||
SECTION 17. Section 74.707(a), Property Code, is amended to | ||
read as follows: | ||
(a) The comptroller may waive any penalty or interest, in | ||
whole or in part, imposed on delinquent property if the comptroller | ||
determines that the holder has made a good faith effort to comply | ||
with Chapters 72-75, or for other good cause. | ||
SECTION 18. The following provisions of the Insurance Code | ||
are repealed: | ||
(1) Section 1109.013(d); | ||
(2) Section 1109.101; and | ||
(3) Subchapters B and D, Chapter 1109. | ||
SECTION 19. Section 1109.013(c), Insurance Code, as amended | ||
by this Act, applies only to a report that is due under Chapter 74, | ||
Property Code, on or after September 1, 2021. | ||
SECTION 20. To the extent of any conflict, this Act prevails | ||
over another Act of the 87th Legislature, Regular Session, 2021, | ||
relating to nonsubstantive additions to and corrections in enacted | ||
codes. | ||
SECTION 21. 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, 2021. |