Texas 2019 - 86th Regular

Texas House Bill HB3598 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3598
	1	+	By: Martinez Fischer (Senate Sponsor - Zaffirini) H.B. No. 3598
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 8, 2019, read first time and referred to Committee on Business &
	4	+	Commerce; May 20, 2019, reported favorably by the following vote:
	5	+	Yeas 9, Nays 0; May 20, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to certain unclaimed property that is presumed abandoned.
6	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	13		SECTION 1. Section 72.101(a), Property Code, is amended to
8	14		read as follows:
9	15		(a) Except as provided by this section and Sections 72.1015,
10	16		72.1016, 72.1017, 72.102, and 72.104, personal property is presumed
11	17		abandoned if, for longer than three years:
12	18		(1) the [existence and] location of the owner of the
13	19		property is unknown to the holder of the property; and
14	20		(2) according to the knowledge and records of the
15	21		holder of the property, a claim to the property has not been
16	22		asserted or an act of ownership of the property has not been
17	23		exercised.
18	24		SECTION 2. Section 74.001(a), Property Code, is amended to
19	25		read as follows:
20	26		(a) Except as provided by Subsection (b), this chapter
21	27		applies to [a holder of] property that is presumed abandoned under
22	28		Chapter 72, Chapter 73, or Chapter 75.
23	29		SECTION 3. Section 74.103(b), Property Code, is amended to
24	30		read as follows:
25	31		(b) Without regard to whether the property is reported in
26	32		the aggregate, the [The] record must be kept for 10 years from the
27	33		later of:
28	34		(1) the date on which the property is reportable; or
29	35		(2) the date the report is filed[, regardless of
30	36		whether the property is reported in the aggregate under Section
31	37		74.101].
32	38		SECTION 4. Subchapter B, Chapter 74, Property Code, is
33	39		amended by adding Sections 74.105 and 74.106 to read as follows:
34	40		Sec. 74.105. COMBINED REPORTING. (a) In this section:
35	41		(1) "Affiliated group" means a group of one or more
36	42		entities in which a controlling interest is owned by a common owner,
37	43		either corporate or noncorporate, or by one or more of the member
38	44		entities.
39	45		(2) "Controlling interest" means:
40	46		(A) for a corporation, more than 50 percent,
41	47		owned directly or indirectly, of the total voting power of all
42	48		classes of stock of the corporation;
43	49		(B) for a partnership, more than 50 percent,
44	50		owned directly or indirectly, of the capital or profits in the
45	51		partnership;
46	52		(C) for a limited liability company, more than 50
47	53		percent, owned directly or indirectly, of the total membership
48	54		interest of the limited liability company; and
49	55		(D) for an association, trust, or other entity,
50	56		more than 50 percent, owned directly or indirectly, of the
51	57		beneficial interest in the association, trust, or other entity.
52	58		(b) If a holder that is required to file a property report
53	59		under this chapter is a member of an affiliated group, the holder
54	60		shall file one report for the affiliated group.
55	61		Sec. 74.106. CONTINUING REPORTING REQUIREMENT. (a) A
56	62		person who is required to file a property report under Section
57	63		74.101 in any year shall file a property report in each successive
58	64		year.
59	65		(b) If a person required to file a property report under
60	66		this section is not holding any property that is reportable under
61	67		this chapter, the person shall certify that fact.
62	68		SECTION 5. Subchapter C, Chapter 74, Property Code, is
63	69		amended by adding Section 74.206 to read as follows:
64	70		Sec. 74.206. ADVERTISING AND PROMOTION. The comptroller
65	71		may advertise or otherwise promote the unclaimed property program
66	72		in any available media to further the purposes of this title and to
67	73		provide effective and efficient notice to reported owners.
68	74		SECTION 6. Section 74.401(a), Property Code, is amended to
69	75		read as follows:
70	76		(a) Except as provided by [Subsection (c) or] Section
71	77		74.404, the comptroller may [shall] sell at public sale any [all]
72	78		personal property, other than money and marketable securities,
73	79		delivered to the comptroller in accordance with Section 74.301.
74	80		The comptroller may [shall] conduct the sale at the location and in
75	81		the manner [city in this state] that the comptroller determines
76	82		affords the most favorable market for the particular property.
77	83		SECTION 7. Sections 74.501(d) and (e), Property Code, are
78	84		amended to read as follows:
79	85		(d) On receipt of a claim form and all necessary
80	86		documentation and as may be appropriate under the circumstances,
81	87		the comptroller may approve the claim of:
82	88		(1) the reported owner of the property;
83	89		(2) if the reported owner died testate:
84	90		(A) the appropriate legal beneficiaries of the
85	91		owner as provided by the last will and testament of the owner that
86	92		has been accepted into probate or filed as a muniment of title; or
87	93		(B) the executor of the owner's last will and
88	94		testament who holds current letters testamentary;
89	95		(3) if the reported owner died intestate:
90	96		(A) the legal heirs of the owner as provided by
91	97		Sections 201.001 and 201.002, Estates Code; or
92	98		(B) the court-appointed administrator of the
93	99		owner's estate, if the administrator was appointed before the
94	100		fourth anniversary of the date of the death of the owner;
95	101		(4) the legal heirs of the reported owner as
96	102		established by an affidavit of heirship order signed by a judge of
97	103		the county probate court or by a county judge;
98	104		(5) if the reported owner is a minor child or an adult
99	105		who has been adjudged incompetent by a court of law, the parent or
100	106		legal guardian of the child or adult;
101	107		(6) if the reported owner is a corporation:
102	108		(A) the president or chair of the board of
103	109		directors of the corporation, on behalf of the corporation; or
104	110		(B) any person who has legal authority to act on
105	111		behalf of the corporation;
106	112		(7) if the reported owner is a corporation that has
107	113		been dissolved or liquidated:
108	114		(A) the sole surviving shareholder of the
109	115		corporation, if there is only one surviving shareholder;
110	116		(B) the surviving shareholders of the
111	117		corporation in proportion to their ownership of the corporation, if
112	118		there is more than one surviving shareholder;
113	119		(C) the corporation's bankruptcy trustee; or
114	120		(D) the court-ordered receiver for the
115	121		corporation; or
116	122		(8) any other person that is entitled to receive the
117	123		unclaimed property under other law or comptroller policy.
118	124		(e) Except as provided by Subsection (f), the comptroller
119	125		may not pay to the following persons a claim to which this section
120	126		applies:
121	127		(1) a creditor, a judgment creditor, a lienholder, or
122	128		an assignee of the reported owner or of the owner's heirs; [or]
123	129		(2) a person holding a power of attorney from the
124	130		reported owner or the owner's heirs; or
125	131		(3) a person attempting to make a claim on behalf of a
126	132		corporation that was previously forfeited, dissolved, or
127	133		terminated, if the comptroller finds that:
128	134		(A) the corporation was revived for the purpose
129	135		of making a claim under this section; and
130	136		(B) the person submitting the claim was not an
131	137		authorized representative of the corporation at the time of the
132	138		corporation's forfeiture, dissolution, or termination.
133	139		SECTION 8. Section 74.702, Property Code, is amended by
134	140		amending Subsection (a) and adding Subsection (c) to read as
135	141		follows:
136	142		(a) For purposes of the application and enforcement of this
137	143		title [To enforce this chapter and to determine whether reports
138	144		have been made as required by this chapter], the comptroller, the
139	145		attorney general, or an authorized agent of either, may at any
140	146		reasonable time and place, [may] examine the books and records of
141	147		any person to determine whether the person has complied with this
142	148		title [holder].
143	149		(c) Subsection (a) applies to any books, records, papers,
144	150		information, or other objects determined by the comptroller or
145	151		attorney general to be necessary to conduct a complete examination
146	152		under this title.
147	153		SECTION 9. Subchapter H, Chapter 74, Property Code, is
148	154		amended by adding Section 74.7021 to read as follows:
149	155		Sec. 74.7021. LIMITATION PERIOD FOR EXAMINATION. (a) The
150	156		comptroller or attorney general may not begin an examination
151	157		relating to the reporting, payment, or delivery of property under
152	158		this chapter after the seventh anniversary of the date a person
153	159		filed a property report under this title.
154	160		(b) The limitation provided by this section does not apply
155	161		if:
156	162		(1) the person has filed a false or fraudulent
157	163		property report with the intent to avoid delivery of property as
158	164		required by this title;
159	165		(2) a property report for a period has not been filed;
160	166		or
161	167		(3) a court grants a petition to compel the person to
162	168		submit to an examination under this chapter, deliver property, or
163	169		file a property report.
164	170		(c) For purposes of Subsection (b)(1), a person is presumed
165	171		to have acted with intent to avoid delivery of property as required
166	172		by this title if, after correction of a report, the amount of
167	173		property to be delivered under this title exceeds the amount
168	174		initially reported by at least 25 percent.
169	175		SECTION 10. Section 74.704, Property Code, is amended to
170	176		read as follows:
171	177		Sec. 74.704. ASSISTANCE IN ENFORCEMENT. (a) If the
172	178		comptroller requests, the attorney general shall assist the
173	179		comptroller in enforcing this title.
174	180		(b) If the comptroller or the attorney general requests, the
175	181		state auditor [State Auditor], banking commissioner [Banking
176	182		Commissioner of Texas], securities commissioner, commissioner of
177	183		insurance, savings and mortgage lending commissioner, Credit Union
178	184		Commission, Department of Public Safety of the State of Texas, or
179	185		Texas Workforce Commission, a [or any] district or county attorney,
180	186		or any other state agency or political subdivision of this state
181	187		shall assist the comptroller or attorney general in enforcing this
182	188		title.
183	189		(c) Notwithstanding any other law, a state agency or
184	190		political subdivision may not impose a charge for providing a copy
185	191		of public information requested by the comptroller under this
186	192		section.
187	193		SECTION 11. Section 74.709(a), Property Code, is amended to
188	194		read as follows:
189	195		(a) On request of the comptroller, the attorney general
190	196		shall bring an action in district court, in the name of the state,
191	197		to compel a person [holder] to:
192	198		(1) permit examination of records in accordance with
193	199		this chapter;
194	200		(2) deliver property; or
195	201		(3) [to] file a property report.
196	202		SECTION 12. Subchapter H, Chapter 74, Property Code, is
197	203		amended by adding Sections 74.711 and 74.712 to read as follows:
198	204		Sec. 74.711. AUTHORITY TO TAKE TESTIMONY AND ISSUE
199	205		ADMINISTRATIVE SUBPOENAS. (a) To enforce this title, the
200	206		comptroller may:
201	207		(1) take testimony;
202	208		(2) administer oaths; and
203	209		(3) issue subpoenas to compel any person to:
204	210		(A) appear and give testimony under oath at a
205	211		time and place reasonable under the circumstances; or
206	212		(B) produce relevant books, records, documents,
207	213		or other data, in whatever form, for audit, inspection, and
208	214		copying.
209	215		(b) The comptroller may delegate the authority granted
210	216		under this section to take testimony, administer oaths, and issue
211	217		subpoenas to an attorney employed by the comptroller.
212	218		(c) A person authorized to serve process under the Texas
213	219		Rules of Civil Procedure may serve a subpoena issued under this
214	220		section. The person shall serve the subpoena in accordance with the
215	221		Texas Rules of Civil Procedure.
216	222		Sec. 74.712. ENFORCEMENT OF SUBPOENAS. (a) If the person
217	223		to whom a subpoena is directed under Section 74.711 fails to comply
218	224		with the subpoena, or fails to file a motion to quash or otherwise
219	225		demand a pre-compliance review of the subpoena, within the return
220	226		date specified in the subpoena, the attorney general shall, on the
221	227		request of the comptroller, bring suit to enforce the subpoena. The
222	228		suit may be brought in a district court of Travis County.
223	229		(b) A court that determines that the subpoena was issued in
224	230		good faith shall order compliance with the subpoena. The court may
225	231		apply penalties for civil and criminal contempt otherwise available
226	232		at law if a person refuses to comply with the court's order.
227	233		SECTION 13. Section 74.401(c), Property Code, is repealed.
228	234		SECTION 14. The limitation provided by Section 74.7021,
229	235		Property Code, as added by this Act, applies only to an examination
230	236		commenced on or after the effective date of this Act. An
231	237		examination commenced before the effective date of this Act is
232	238		governed by the law in effect on the date the examination commenced,
233	239		and the former law is continued in effect for that purpose.
234	240		SECTION 15. This Act takes effect immediately if it
235	241		receives a vote of two-thirds of all the members elected to each
236	242		house, as provided by Section 39, Article III, Texas Constitution.
237	243		If this Act does not receive the vote necessary for immediate
238	244		effect, this Act takes effect September 1, 2019.
239		-	______________________________ ______________________________
240		-	President of the Senate Speaker of the House
241		-	I certify that H.B. No. 3598 was passed by the House on May 3,
242		-	2019, by the following vote: Yeas 139, Nays 1, 2 present, not
243		-	voting.
244		-	______________________________
245		-	Chief Clerk of the House
246		-	I certify that H.B. No. 3598 was passed by the Senate on May
247		-	22, 2019, by the following vote: Yeas 31, Nays 0.
248		-	______________________________
249		-	Secretary of the Senate
250		-	APPROVED: _____________________
251		-	Date
252		-	_____________________
253		-	Governor
	245	+	* * * * *