82R12290 DAK-F
By: Pena H.B. No. 2481
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 restitution to be
distributed by the attorney general as provided by Section 67.003
if the court determines that, based on the facts and circumstances
of the case:
(1) it is impossible or impracticable to identify
injured parties;
(2) it is impossible or impracticable to determine the
degree to which each claimant was injured and entitled to recover;
or
(3) 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. Civil penalties,
costs, or attorney's fees may not be deposited in the account.
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 account.
(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 restitution 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
shall adopt rules as necessary to implement this chapter. To the
extent practicable, the rules must give priority to programs that
provide basic civil legal services in consumer law to persons of low
and moderate income.
Sec. 67.005. MEMORANDUM OF UNDERSTANDING. The attorney
general shall enter into a memorandum of understanding with the
supreme court for the administration and monitoring of consumer
legal assistance activities.
Sec. 67.006. 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. The change in law made by 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, 2011.