| 1 | 1 | | By: Duncan, Carona, Deuell S.B. No. 635 |
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| 2 | 2 | | (In the Senate - Filed February 18, 2013; February 25, 2013, |
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| 3 | 3 | | read first time and referred to Committee on State Affairs; |
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| 4 | 4 | | March 20, 2013, reported adversely, with favorable Committee |
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| 5 | 5 | | Substitute by the following vote: Yeas 8, Nays 0; March 20, 2013, |
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| 6 | 6 | | sent to printer.) |
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| 7 | 7 | | COMMITTEE SUBSTITUTE FOR S.B. No. 635 By: Duncan |
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| 8 | 8 | | |
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| 9 | 9 | | |
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| 10 | 10 | | A BILL TO BE ENTITLED |
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| 11 | 11 | | AN ACT |
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| 12 | 12 | | relating to the distribution of certain civil penalties and civil |
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| 13 | 13 | | restitution received by the attorney general. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Section 402.007, Government Code, is amended to |
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| 16 | 16 | | read as follows: |
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| 17 | 17 | | Sec. 402.007. PAYMENT TO TREASURY; ALLOCATION OF CERTAIN |
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| 18 | 18 | | MONEY RECEIVED BY ATTORNEY GENERAL [PENALTIES]. (a) The attorney |
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| 19 | 19 | | general shall immediately pay into the state treasury money |
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| 20 | 20 | | received for a debt, a [or] penalty, or restitution. |
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| 21 | 21 | | (b) Subject to Subsection (d) [(c)], the comptroller shall |
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| 22 | 22 | | credit to the judicial fund for programs approved by the supreme |
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| 23 | 23 | | court that provide basic civil legal services to the indigent the |
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| 24 | 24 | | net amount of: |
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| 25 | 25 | | (1) a civil penalty that is recovered in an action by |
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| 26 | 26 | | the attorney general in any matter actionable under Subchapter E, |
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| 27 | 27 | | Chapter 17, Business & Commerce Code, after deducting amounts |
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| 28 | 28 | | allocated to or retained by the attorney general as authorized by |
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| 29 | 29 | | law, unless: |
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| 30 | 30 | | (A) [(1)] another law requires that the penalty |
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| 31 | 31 | | be credited to a different fund or account; or |
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| 32 | 32 | | (B) [(2)] the judgment awarding the penalty |
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| 33 | 33 | | requires that the penalty be paid to another named recipient; and |
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| 34 | 34 | | (2) civil restitution recovered by the attorney |
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| 35 | 35 | | general in an action brought by the attorney general arising from |
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| 36 | 36 | | conduct that violates a consumer protection, public health, or |
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| 37 | 37 | | general welfare law, if, on the hearing of an ex parte motion filed |
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| 38 | 38 | | by the attorney general after the entry of a judgment awarding civil |
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| 39 | 39 | | restitution, the court: |
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| 40 | 40 | | (A) determines that, based on the facts and |
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| 41 | 41 | | circumstances of the case: |
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| 42 | 42 | | (i) it is impossible or impracticable to |
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| 43 | 43 | | identify injured parties; |
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| 44 | 44 | | (ii) it is impossible or impracticable to |
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| 45 | 45 | | determine the degree to which each claimant was injured and |
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| 46 | 46 | | entitled to recover; |
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| 47 | 47 | | (iii) the cost of administering a claim |
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| 48 | 48 | | procedure will disproportionately reduce the amount of restitution |
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| 49 | 49 | | available for the payment of individual claims; or |
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| 50 | 50 | | (iv) the claims of all identifiable persons |
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| 51 | 51 | | eligible to receive restitution have been paid without exhausting |
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| 52 | 52 | | the funds available for restitution; and |
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| 53 | 53 | | (B) enters a judgment or order that the |
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| 54 | 54 | | restitution be credited to the judicial fund for programs approved |
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| 55 | 55 | | by the supreme court that provide basic civil legal services to the |
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| 56 | 56 | | indigent. |
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| 57 | 57 | | (c) If a court enters a judgment or order that restitution |
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| 58 | 58 | | be credited to the judicial fund, the attorney general shall notify |
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| 59 | 59 | | the Legislative Budget Board and shall distribute that restitution |
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| 60 | 60 | | in accordance with the court judgment or order. |
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| 61 | 61 | | (d) The total amount credited to the judicial fund for |
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| 62 | 62 | | programs approved by the supreme court that provide basic civil |
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| 63 | 63 | | legal services to the indigent under Subsection (b) may not exceed |
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| 64 | 64 | | $50 [$10] million per state fiscal biennium. |
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| 65 | 65 | | (e) The provisions of this section do not limit the common |
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| 66 | 66 | | law authority or other statutory authority of the attorney general |
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| 67 | 67 | | to seek and obtain cy pres distribution from a court. |
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| 68 | 68 | | SECTION 2. The change in law made by this Act applies only |
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| 69 | 69 | | to a civil penalty or civil restitution that is received by the |
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| 70 | 70 | | attorney general on or after the effective date of this Act. |
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| 71 | 71 | | SECTION 3. This Act takes effect immediately if it receives |
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| 72 | 72 | | a vote of two-thirds of all the members elected to each house, as |
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| 73 | 73 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 74 | 74 | | Act does not receive the vote necessary for immediate effect, this |
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| 75 | 75 | | Act takes effect September 1, 2013. |
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| 76 | 76 | | * * * * * |
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