By: Ogden S.B. No. 2350
(In the Senate - Filed March 13, 2009; March 31, 2009, read
first time and referred to Committee on Finance; May 6, 2009,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 8, Nays 0; May 6, 2009, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 2350 By: Ogden
A BILL TO BE ENTITLED
AN ACT
relating to the payment and distribution of consumer assistance
funds in an action by the attorney general.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 3, Civil Practice and Remedies Code, is
amended by adding Chapter 67 to read as follows:
CHAPTER 67. CONSUMER ASSISTANCE FUNDS IN ACTION BY ATTORNEY
GENERAL
Sec. 67.001. CONSUMER ASSISTANCE FUNDS. In an action
brought by the attorney general arising from conduct that violates
a consumer protection, public health, or general welfare law, the
court may enter a judgment or order for payment of funds to be
distributed by the attorney general as provided by Section 67.003
if:
(1) it is impracticable to identify injured parties;
or
(2) the cost of administering a claim procedure is
prohibitive due to a low probability of recovery for each claimant.
Sec. 67.002. CREATION OF CONSUMER ASSISTANCE ACCOUNT.
(a) The consumer assistance account is created as a restitution
account in the departmental suspense account in the state treasury.
The account consists of consumer assistance funds paid under a
court judgment or order as provided by Section 67.001. Funds in the
account are held in trust for the benefit of charitable entities as
provided by Section 67.003. The attorney general shall administer
the fund.
(b) The attorney general shall retain funds that are
designated as consumer assistance funds under a court judgment or
order and shall deposit the funds in the consumer assistance
account.
Sec. 67.003. USE OF CONSUMER ASSISTANCE FUNDS. (a) In
this section "charitable entity" has the meaning assigned by
Section 123.001, Property Code.
(b) The attorney general shall distribute funds paid under a
court judgment or order as provided by this chapter to one or more
charitable entities to fund programs that provide assistance to
consumers. The distribution must be in accordance with the court
judgment or order. The attorney general shall notify:
(1) the Legislative Budget Board before the
distribution; and
(2) the court when the distribution is complete.
Sec. 67.004. RULEMAKING AUTHORITY. The attorney general
may adopt rules as necessary to implement this chapter.
Sec. 67.005. COMMON LAW CY PRES. The provisions of this
chapter do not diminish the common law authority or other statutory
authority of the attorney general to seek and obtain cy pres
distribution from a court.
SECTION 2. This Act applies to funds paid under a court
judgment as provided by Section 67.001, Civil Practice and Remedies
Code, as added by this Act, that are held in the attorney general's
departmental suspense account on or after the effective date of
this Act, notwithstanding the fact that the funds were paid into
that account before the effective date of this Act.
SECTION 3. 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, 2009.
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