82R24819 PMO-D
By: Guillen H.B. No. 2611
Substitute the following for H.B. No. 2611:
By: Miller of Erath C.S.H.B. No. 2611
A BILL TO BE ENTITLED
AN ACT
relating to claims for and distribution of unclaimed land grant
mineral proceeds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 74, Property Code, is
amended by adding Section 74.405 to read as follows:
Sec. 74.405. UNCLAIMED LAND GRANT MINERAL PROCEEDS. (a) In
this section, "unclaimed land grant mineral proceeds" are mineral
proceeds governed by Subchapter C, Chapter 75.
(b) Unclaimed land grant mineral proceeds delivered to the
comptroller under this chapter may be distributed only under
Subchapter C, Chapter 75.
SECTION 2. Section 74.507, Property Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) Except as provided by Section 75.155, 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. 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) Notwithstanding Subsection (b), a person who informs a
potential claimant of a claim under Subchapter C, Chapter 75, may
file or receive a form to claim on behalf of the claimant as
provided by contract or other written agreement between the
potential claimant and the person.
SECTION 3. Section 74.601, Property Code, is amended by
amending Subsection (b) and adding Subsection (h) to read as
follows:
(b) Except as provided by Subsection (h), the [The]
comptroller shall deposit to the credit of the general revenue
fund:
(1) all funds, including marketable securities,
delivered to the comptroller under this chapter or any other
statute requiring the delivery of unclaimed property to the
comptroller;
(2) all proceeds from the sale of any property,
including marketable securities, under this chapter;
(3) all funds that have escheated to the state under
Chapter 71, except that funds relating to escheated real property
shall be deposited according to Section 71.202; and
(4) any income derived from investments of the
unclaimed money.
(h) Not later than the 90th day after the end of each fiscal
year, the comptroller shall deposit unclaimed land grant mineral
proceeds delivered under this chapter to the credit of the
unclaimed land grant mineral proceeds revenue account in the
general revenue fund. Money in the unclaimed land grant mineral
proceeds revenue account may be distributed only as provided by
Subchapter C, Chapter 75.
SECTION 4. Section 75.001(a), Property Code, is amended by
adding Subdivisions (4), (5), and (6) to read as follows:
(4) "Original land grant" means the initial conveyance
of real property in this state, as evidenced by a certificate,
title, or patent, from:
(A) the Crown of Spain;
(B) Mexico;
(C) the Republic of Texas; or
(D) this state.
(5) "Net mineral estate" means the percentage portion
of mineral proceeds derived from an original land grant owned by a
descendent of an original grantee.
(6) "Third-party data provider" means a data provider
approved under rules adopted by the comptroller.
SECTION 5. Section 75.001(c), Property Code, is amended to
read as follows:
(c) Except as provided by Subchapter C, a [A] holder of
property presumed abandoned under this chapter is subject to the
procedures of Chapter 74.
SECTION 6. Chapter 75, Property Code, is amended by adding
Subchapter C to read as follows:
SUBCHAPTER C. UNCLAIMED LAND GRANT MINERAL PROCEEDS
Sec. 75.151. APPLICABILITY. This subchapter applies to all
mineral proceeds that are:
(1) derived directly or indirectly from real property
located in this state regardless of the location of the holder's
formation, organization, incorporation, or domicile;
(2) unclaimed and presumed abandoned under this
chapter or Chapter 72, 73, or 74;
(3) held by a holder or the comptroller; and
(4) reportable to the comptroller under Subchapter B,
Chapter 74.
Sec. 75.152. NET MINERAL ESTATE CALCULATIONS. (a) In
accordance with rules adopted by the comptroller, a third-party
data provider may:
(1) determine the net mineral estate of each original
land grant based on evidence provided by one or more land surveyors
registered, licensed, or certified under Chapter 1071, Occupations
Code; and
(2) based on records of the Railroad Commission of
Texas, determine the total amount of mineral production for each
original land grant having a net mineral estate from January 1,
1985, until the date the determination is made.
(b) To determine the percentage that each original land
grant constitutes of the whole of the original land grants, the
result of Subsection (a)(1) must be multiplied by the result of
Subsection (a)(2) for each original land grant.
(c) The comptroller shall adopt rules for purposes of
Subsection (a).
Sec. 75.153. CLAIM AGAINST UNCLAIMED LAND GRANT MINERAL
PROCEEDS. (a) A person may submit a claim for the person's net
mineral estate against unclaimed land grant mineral proceeds held
by the comptroller in the unclaimed land grant mineral proceeds
revenue account by filing with the comptroller a form adopted by
comptroller rule. In addition to the form, a person must submit:
(1) an affidavit stating that, to the best of the
claimant's information, knowledge, and belief:
(A) the claimant does not receive and has never
received mineral proceeds from the original land grant; and
(B) the claimant's ancestors do not or did not
receive mineral proceeds from the original land grant; and
(2) a copy of a final, unappealable judgment
establishing:
(A) the claimant's heirship as a descendent of
the grantee of an original land grant; and
(B) the extent of the claimant's interest in the
mineral proceeds of the land grant.
(b) A claimant may submit a claim under any line of
descendency established in a final, unappealable judgment.
(c) The comptroller shall approve a claim that complies with
Subsection (a).
Sec. 75.154. MAXIMUM CLAIM CALCULATION. Beginning on
January 1, 2012, to determine the maximum amount for which a claim
may be made by a claimant for an original land grant, the percentage
figure under Section 75.152(b) for each original land grant having
a net mineral estate must be multiplied by the total amount of money
in the unclaimed land grant mineral proceeds revenue account under
Section 74.601(h).
Sec. 75.155. ATTORNEY'S FEES. (a) An attorney licensed in
this state may represent a claimant under this subchapter or in a
judicial or administrative proceeding related to this subchapter.
(b) An attorney who represents a claimant under this
subchapter or in a judicial or administrative proceeding related to
this subchapter may contract with the claimant for attorney's fees
on an hourly or contingency basis or otherwise, as prescribed by
Rule 1.04, Texas Disciplinary Rules of Professional Conduct.
Sec. 75.156. EXPENDITURES. (a) The expenses of the
comptroller in executing this subchapter may be paid only from the
unclaimed land grant mineral proceeds revenue account described by
Section 74.601(h).
(b) The comptroller shall adopt rules as necessary to
administer this section.
SECTION 7. (a) Not later than November 1, 2011, the
comptroller shall adopt rules as required by Sections 75.152 and
75.156, Property Code, as added by this Act.
(b) Not later than the 30th day after the effective date of
this Act, the comptroller shall transfer to the unclaimed land
grant mineral proceeds revenue account created under Section
74.601, Property Code, as amended by this Act, all unclaimed land
grant mineral proceeds delivered to and held by the comptroller
under Chapter 74, Property Code.
SECTION 8. (a) The change in law made by Section 75.155,
Property Code, as added by this Act, applies to a contract executed
before, on, or after the effective date of this Act.
(b) The changes in law made by Subchapter C, Chapter 75,
Property Code, as added by this Act, apply only to a claim filed on
or after the effective date of this Act. A claim filed before the
effective date of this Act is covered by the law in effect when the
claim was filed, and the former law is continued in effect for that
purpose.
SECTION 9. 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.