H.B. No. 1514
AN ACT
relating to the administration of unclaimed property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 551.005(b), Estates Code, is amended to
read as follows:
(b) The clerk of a court that orders an executor or
administrator to pay funds to the comptroller under Section 551.001
shall provide to [serve on] the comptroller, by certified mail or
e-mail [personal service of citation], a certified copy of the
court order not later than the fifth day after the date the order is
issued.
SECTION 2. Section 1109.013(c), Insurance Code, is amended
to read as follows:
(c) An insurer shall report and deliver unclaimed proceeds
to the comptroller as required by Chapter 74, Property Code
[Section 1109.051].
SECTION 3. Section 72.001, Property Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Tangible or intangible personal property is not
subject to this chapter if it is a worthless or non-freely
transferable security.
SECTION 4. Section 74.001(a), Property Code, is amended to
read as follows:
(a) Except as provided by this section [Subsection (b)],
this chapter applies to:
(1) property that is presumed abandoned under Chapter
72, Chapter 73, or Chapter 75;
(2) property that is presumed abandoned under Chapter
154, Finance Code;
(3) unclaimed proceeds under Chapter 1109, Insurance
Code; or
(4) any other law requiring a person to report and
deliver property to the comptroller under this chapter.
SECTION 5. Section 74.101(a), Property Code, is amended to
read as follows:
(a) Each holder who on March 1 holds property to which this
chapter applies [that is presumed abandoned under Chapter 72, 73,
or 75 of this code or under Chapter 154, Finance Code,] shall file a
report of that property on or before the following July 1. The
comptroller may require the report to be in a particular format,
including a format that can be read by a computer.
SECTION 6. Sections 74.1011(a), (b), and (b-1), Property
Code, are amended to read as follows:
(a) Except as provided by Subsection (b), a holder who on
March 1 holds property to which this chapter applies that is valued
at more than $250 [that is presumed abandoned under Chapter 72, 73,
or 75 of this code or Chapter 154, Finance Code,] shall, not later
than the 60th day before the date the property is delivered to the
comptroller, provide to the owner by [on or before the following May
1,] mail to the last known address of the [known] owner or by e-mail
written notice stating that:
(1) the holder is holding the property; and
(2) the holder may be required to deliver the property
to the comptroller on or before July 1 if the property is not
claimed.
(b) The notice required under Subsection (a) does not apply
to a holder who:
(1) has already provided such notice to the owner of
the property or a person entitled to the property under existing
federal law, rules, and regulations or state law within the time
specified under Subsection (a); or
(2) does not have a record of a physical or e-mail [an]
address for the property owner or any other person entitled to the
property.
(b-1) If an owner has designated a representative for notice
under Section 72.1021 or 73.103, the holder shall mail or e-mail the
written notice required under Subsection (a) to the representative
in addition to providing written [mailing the] notice to the owner.
SECTION 7. Section 74.301(a), Property Code, is amended to
read as follows:
(a) Except as provided by Subsection (c), each holder who on
March 1 holds property to which this chapter applies [that is
presumed abandoned under Chapter 72, 73, or 75] shall deliver the
property to the comptroller on or before the following July 1
accompanied by the report required to be filed under Section
74.101.
SECTION 8. Section 74.401(d), Property Code, is amended to
read as follows:
(d) If after investigation the comptroller determines that
property delivered under this chapter is not marketable or [from a
safe deposit box or other repository] has insubstantial commercial
value, the comptroller may destroy or otherwise dispose of the
property at any time.
SECTION 9. Subchapter E, Chapter 74, Property Code, is
amended by adding Section 74.405 to read as follows:
Sec. 74.405. DISPOSITION OF SECURITIES. (a) The
comptroller may sell or otherwise liquidate a security delivered to
the comptroller under this chapter.
(b) The comptroller may not sell a security listed on an
established stock exchange for less than the price prevailing on
the exchange at the time of sale. The comptroller may sell a
security not listed on an established exchange by any commercially
reasonable method.
SECTION 10. Sections 74.501(c), (d), and (f), Property
Code, are amended to read as follows:
(c) All claims to which this subchapter [section] applies
must:
(1) identify the specific property in the possession
of the comptroller that is being claimed;
(2) include all necessary documentation the
comptroller may require; and
(3) except as provided by Section 74.503, be filed in
accordance with procedures, contain the information, and be on
forms prescribed by the comptroller.
(d) On receipt of a claim form and all necessary
documentation the comptroller may require, or [and] as may be
appropriate under the circumstances, the comptroller may approve
the claim of:
(1) the reported owner of the property;
(2) if the reported owner died testate:
(A) the appropriate legal beneficiaries of the
owner as provided by the last will and testament of the owner that
has been accepted into probate or filed as a muniment of title; [or]
(B) the executor of the owner's last will and
testament who holds current letters testamentary; or
(C) the appropriate legal beneficiaries of the
owner as provided by a valid last will and testament of the owner
that has not been accepted into probate or filed as a muniment of
title, if:
(i) the amount of the property being
claimed is less than $10,000; and
(ii) the beneficiaries named in the will
are the same persons who would inherit the property if the owner had
died intestate;
(3) if the reported owner died intestate:
(A) the legal heirs of the owner as provided by
Sections 201.001,[and] 201.002, and 201.003, Estates Code; [or]
(B) the court-appointed independent
administrator of the owner's estate, if the administrator was
appointed before the fourth anniversary of the date of the death of
the owner; or
(C) the court-appointed dependent administrator
of the owner's estate;
(4) the legal heirs of the reported owner as
established by a determination [an affidavit] of heirship order
signed by a judge of the county probate court or by a county judge;
(5) if the reported owner is a minor child or an adult
who has been adjudged incompetent by a court of law, the parent or
legal guardian of the child or adult;
(6) if the reported owner is a corporation:
(A) the president or chair of the board of
directors of the corporation, on behalf of the corporation; or
(B) any person who has legal authority to act on
behalf of the corporation;
(7) if the reported owner is a corporation that has
been dissolved or liquidated:
(A) the sole surviving shareholder of the
corporation, if there is only one surviving shareholder;
(B) the surviving shareholders of the
corporation in proportion to their ownership of the corporation, if
there is more than one surviving shareholder;
(C) the corporation's bankruptcy trustee,
bankruptcy estate representative, or other person authorized
pursuant to Title 11, United States Code, or an order of a
bankruptcy court to act on behalf of or for the benefit of the
corporation's bankruptcy estate, or any assignee of any such
person; or
(D) the court-ordered receiver for the
corporation; or
(8) any other person that is entitled to receive the
unclaimed property under other law or comptroller policy.
(f) Notwithstanding Subsection (e), the [The] comptroller
may approve the [a] claim of [for]:
(1) the attorney general or other Title IV-D agency,
as defined by Section 101.033, Family Code, for child support
arrearages owed by the reported owner of the property that are [and]
reflected in a child support lien notice that complies with Section
157.313, Family Code; or
(2) a person holding a durable power of attorney of a
person who is medically incapacitated. [A claim under this
subsection may be submitted by the lienholder or the attorney
general on behalf of the lienholder.]
SECTION 11. Section 74.501(e), Property Code, as amended by
Chapters 267 (S.B. 1420) and 897 (H.B. 3598), Acts of the 86th
Legislature, Regular Session, 2019, is reenacted and amended to
read as follows:
(e) Except as provided by Subsection (d)(7) or (f) or
Section 551.051, Estates Code, the comptroller may not pay to the
following persons a claim to which this section applies:
(1) a creditor, a judgment creditor, a lienholder, or
an assignee of the reported owner or of the owner's heirs;
(2) a person holding a power of attorney from the
reported owner or the owner's heirs; or
(3) a person attempting to make a claim on behalf of a
corporation that was previously forfeited, dissolved, or
terminated, if the comptroller finds that:
(A) the corporation was revived for the purpose
of making a claim under this section; and
(B) the person submitting the claim was not an
authorized representative of the corporation at the time of the
corporation's forfeiture, dissolution, or termination.
SECTION 12. Subchapter F, Chapter 74, Property Code, is
amended by adding Section 74.503 to read as follows:
Sec. 74.503. WAIVER OF CLAIM REQUIREMENT. The comptroller
may waive the requirement of filing a claim and pay or deliver
property directly to a person who does not file a claim if:
(1) the person receiving the property is the reported
owner of the property;
(2) the comptroller reasonably believes the person is
entitled to receive the property or payment; and
(3) the property has a value of less than $5,000.
SECTION 13. Sections 74.506(a) and (b), Property Code, are
amended to read as follows:
(a) A person who has filed a claim that complies with
Section 74.501(c) may appeal [aggrieved by] the decision of the
comptroller on the [a] claim [filed under this subchapter may
appeal the decision] before the 61st day after the day on which it
was rendered.
(b) If a claim that complies with Section 74.501(c) has not
been decided before the 91st day after the day on which it was
filed, the claimant may file an appeal if, after the claimant
provides notice by certified mail to the comptroller of the intent
to file an appeal, the comptroller does not reach a decision on the
claim on or before the 60th day after the date the notice is
delivered to the comptroller. An appeal under this section must be
made within one year of the date the claim was filed [the 60-day
period beginning on the 91st day after the day of filing].
SECTION 14. The heading to Section 74.507, Property Code,
is amended to read as follows:
Sec. 74.507. ASSISTANCE OF CLAIMANT; FEE FOR RECOVERY.
SECTION 15. Section 74.507, Property Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(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, plus
reasonable attorney's fees necessary to pursue the claim. 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) An agreement to assist a claimant in the recovery of
property that is reportable to the comptroller, that has been
reported to the comptroller, or that is in the possession of the
comptroller under this chapter is enforceable only if the
agreement:
(1) clearly states the nature of the property and the
services to be provided;
(2) is signed by or on behalf of the claimant; and
(3) states the amount or value of the property
reasonably expected to be recovered, computed before and after a
fee or other compensation has been deducted.
SECTION 16. Section 74.601(e), Property Code, is amended to
read as follows:
(e) The comptroller may [on receipt or from time to time may
sell securities, including stocks, bonds, and mutual funds,
received under this chapter or any other statute requiring the
delivery of unclaimed property to the comptroller and] use the
proceeds from the sale of securities delivered under this chapter
to buy, exchange, invest, or reinvest in marketable securities.
When making or selling the investments, the comptroller shall
exercise the judgment and care of a prudent person.
SECTION 17. Section 74.707(a), Property Code, is amended to
read as follows:
(a) The comptroller may waive penalty or interest, in whole
or in part, imposed on delinquent property if the comptroller
determines that the holder has made a good faith effort to comply
with Chapters 72-75, or for other good cause.
SECTION 18. The following provisions of the Insurance Code
are repealed:
(1) Section 1109.013(d);
(2) Section 1109.101; and
(3) Subchapters B and D, Chapter 1109.
SECTION 19. Section 1109.013(c), Insurance Code, as amended
by this Act, applies only to a report that is due under Chapter 74,
Property Code, on or after September 1, 2021.
SECTION 20. To the extent of any conflict, this Act prevails
over another Act of the 87th Legislature, Regular Session, 2021,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 21. 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, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1514 was passed by the House on April
8, 2021, by the following vote: Yeas 149, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1514 on May 3, 2021, by the following vote: Yeas 145, Nays 0, 1
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1514 was passed by the Senate, with
amendments, on April 29, 2021, by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor