Texas 2021 - 87th Regular

Texas House Bill HB1514 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1514
	1	+	By: Landgraf (Senate Sponsor - Zaffirini) H.B. No. 1514
	2	+	(In the Senate - Received from the House April 8, 2021;
	3	+	April 12, 2021, read first time and referred to Committee on State
	4	+	Affairs; April 22, 2021, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 9, Nays 0;
	6	+	April 22, 2021, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 1514 By: Zaffirini
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the administration of unclaimed property.
6	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	15		SECTION 1. Section 551.005(b), Estates Code, is amended to
8	16		read as follows:
9	17		(b) The clerk of a court that orders an executor or
10	18		administrator to pay funds to the comptroller under Section 551.001
11	19		shall provide to [serve on] the comptroller, by certified mail or
12	20		e-mail [personal service of citation], a certified copy of the
13	21		court order not later than the fifth day after the date the order is
14	22		issued.
15	23		SECTION 2. Section 1109.013(c), Insurance Code, is amended
16	24		to read as follows:
17	25		(c) An insurer shall report and deliver unclaimed proceeds
18	26		to the comptroller as required by Chapter 74, Property Code
19	27		[Section 1109.051].
20	28		SECTION 3. Section 72.001, Property Code, is amended by
21	29		adding Subsection (a-1) to read as follows:
22	30		(a-1) Tangible or intangible personal property is not
23	31		subject to this chapter if it is a worthless or non-freely
24	32		transferable security.
25	33		SECTION 4. Section 74.001(a), Property Code, is amended to
26	34		read as follows:
27	35		(a) Except as provided by this section [Subsection (b)],
28	36		this chapter applies to:
29	37		(1) property that is presumed abandoned under Chapter
30	38		72, Chapter 73, or Chapter 75;
31	39		(2) property that is presumed abandoned under Chapter
32	40		154, Finance Code;
33	41		(3) unclaimed proceeds under Chapter 1109, Insurance
34	42		Code; or
35	43		(4) any other law requiring a person to report and
36	44		deliver property to the comptroller under this chapter.
37	45		SECTION 5. Section 74.101(a), Property Code, is amended to
38	46		read as follows:
39	47		(a) Each holder who on March 1 holds property to which this
40	48		chapter applies [that is presumed abandoned under Chapter 72, 73,
41	49		or 75 of this code or under Chapter 154, Finance Code,] shall file a
42	50		report of that property on or before the following July 1. The
43	51		comptroller may require the report to be in a particular format,
44	52		including a format that can be read by a computer.
45	53		SECTION 6. Sections 74.1011(a), (b), and (b-1), Property
46	54		Code, are amended to read as follows:
47	55		(a) Except as provided by Subsection (b), a holder who on
48	56		March 1 holds property to which this chapter applies that is valued
49	57		at more than $250 [that is presumed abandoned under Chapter 72, 73,
50	58		or 75 of this code or Chapter 154, Finance Code,] shall, not later
51	59		than the 60th day before the date the property is delivered to the
52	60		comptroller, provide to the owner by [on or before the following May
53	61		1,] mail to the last known address of the [known] owner or by e-mail
54	62		written notice stating that:
55	63		(1) the holder is holding the property; and
56	64		(2) the holder may be required to deliver the property
57	65		to the comptroller on or before July 1 if the property is not
58	66		claimed.
59	67		(b) The notice required under Subsection (a) does not apply
60	68		to a holder who:
61	69		(1) has already provided such notice to the owner of
62	70		the property or a person entitled to the property under existing
63	71		federal law, rules, and regulations or state law within the time
64	72		specified under Subsection (a); or
65	73		(2) does not have a record of a physical or e-mail [an]
66	74		address for the property owner or any other person entitled to the
67	75		property.
68	76		(b-1) If an owner has designated a representative for notice
69	77		under Section 72.1021 or 73.103, the holder shall mail or e-mail the
70	78		written notice required under Subsection (a) to the representative
71	79		in addition to providing written [mailing the] notice to the owner.
72	80		SECTION 7. Section 74.301(a), Property Code, is amended to
73	81		read as follows:
74	82		(a) Except as provided by Subsection (c), each holder who on
75	83		March 1 holds property to which this chapter applies [that is
76	84		presumed abandoned under Chapter 72, 73, or 75] shall deliver the
77	85		property to the comptroller on or before the following July 1
78	86		accompanied by the report required to be filed under Section
79	87		74.101.
80	88		SECTION 8. Section 74.401(d), Property Code, is amended to
81	89		read as follows:
82	90		(d) If after investigation the comptroller determines that
83	91		property delivered under this chapter is not marketable or [from a
84	92		safe deposit box or other repository] has insubstantial commercial
85	93		value, the comptroller may destroy or otherwise dispose of the
86	94		property at any time.
87	95		SECTION 9. Subchapter E, Chapter 74, Property Code, is
88	96		amended by adding Section 74.405 to read as follows:
89	97		Sec. 74.405. DISPOSITION OF SECURITIES. (a) The
90	98		comptroller may sell or otherwise liquidate a security delivered to
91	99		the comptroller under this chapter.
92	100		(b) The comptroller may not sell a security listed on an
93	101		established stock exchange for less than the price prevailing on
94	102		the exchange at the time of sale. The comptroller may sell a
95	103		security not listed on an established exchange by any commercially
96	104		reasonable method.
97	105		SECTION 10. Sections 74.501(c), (d), and (f), Property
98	106		Code, are amended to read as follows:
99	107		(c) All claims to which this subchapter [section] applies
100	108		must:
101	109		(1) identify the specific property in the possession
102	110		of the comptroller that is being claimed;
103	111		(2) include all necessary documentation the
104	112		comptroller may require; and
105	113		(3) except as provided by Section 74.503, be filed in
106	114		accordance with procedures, contain the information, and be on
107	115		forms prescribed by the comptroller.
108	116		(d) On receipt of a claim form and all necessary
109	117		documentation the comptroller may require, or [and] as may be
110	118		appropriate under the circumstances, the comptroller may approve
111	119		the claim of:
112	120		(1) the reported owner of the property;
113	121		(2) if the reported owner died testate:
114	122		(A) the appropriate legal beneficiaries of the
115	123		owner as provided by the last will and testament of the owner that
116	124		has been accepted into probate or filed as a muniment of title; [or]
117	125		(B) the executor of the owner's last will and
118	126		testament who holds current letters testamentary; or
119	127		(C) the appropriate legal beneficiaries of the
120	128		owner as provided by a valid last will and testament of the owner
121	129		that has not been accepted into probate or filed as a muniment of
122	130		title, if:
123	131		(i) the amount of the property being
124	132		claimed is less than $10,000; and
125	133		(ii) the beneficiaries named in the will
126	134		are the same persons who would inherit the property if the owner had
127	135		died intestate;
128	136		(3) if the reported owner died intestate:
129	137		(A) the legal heirs of the owner as provided by
130	138		Sections 201.001,[and] 201.002, and 201.003, Estates Code; [or]
131	139		(B) the court-appointed independent
132	140		administrator of the owner's estate, if the administrator was
133	141		appointed before the fourth anniversary of the date of the death of
134	142		the owner; or
135	143		(C) the court-appointed dependent administrator
136	144		of the owner's estate;
137	145		(4) the legal heirs of the reported owner as
138	146		established by a determination [an affidavit] of heirship order
139	147		signed by a judge of the county probate court or by a county judge;
140	148		(5) if the reported owner is a minor child or an adult
141	149		who has been adjudged incompetent by a court of law, the parent or
142	150		legal guardian of the child or adult;
143	151		(6) if the reported owner is a corporation:
144	152		(A) the president or chair of the board of
145	153		directors of the corporation, on behalf of the corporation; or
146	154		(B) any person who has legal authority to act on
147	155		behalf of the corporation;
148	156		(7) if the reported owner is a corporation that has
149	157		been dissolved or liquidated:
150	158		(A) the sole surviving shareholder of the
151	159		corporation, if there is only one surviving shareholder;
152	160		(B) the surviving shareholders of the
153	161		corporation in proportion to their ownership of the corporation, if
154	162		there is more than one surviving shareholder;
155	163		(C) the corporation's bankruptcy trustee,
156	164		bankruptcy estate representative, or other person authorized
157	165		pursuant to Title 11, United States Code, or an order of a
158	166		bankruptcy court to act on behalf of or for the benefit of the
159	167		corporation's bankruptcy estate, or any assignee of any such
160	168		person; or
161	169		(D) the court-ordered receiver for the
162	170		corporation; or
163	171		(8) any other person that is entitled to receive the
164	172		unclaimed property under other law or comptroller policy.
165	173		(f) Notwithstanding Subsection (e), the [The] comptroller
166	174		may approve the [a] claim of [for]:
167	175		(1) the attorney general or other Title IV-D agency,
168	176		as defined by Section 101.033, Family Code, for child support
169	177		arrearages owed by the reported owner of the property that are [and]
170	178		reflected in a child support lien notice that complies with Section
171	179		157.313, Family Code; or
172	180		(2) a person holding a durable power of attorney of a
173	181		person who is medically incapacitated. [A claim under this
174	182		subsection may be submitted by the lienholder or the attorney
175	183		general on behalf of the lienholder.]
176	184		SECTION 11. Section 74.501(e), Property Code, as amended by
177	185		Chapters 267 (S.B. 1420) and 897 (H.B. 3598), Acts of the 86th
178	186		Legislature, Regular Session, 2019, is reenacted and amended to
179	187		read as follows:
180	188		(e) Except as provided by Subsection (d)(7) or (f) or
181	189		Section 551.051, Estates Code, the comptroller may not pay to the
182	190		following persons a claim to which this section applies:
183	191		(1) a creditor, a judgment creditor, a lienholder, or
184	192		an assignee of the reported owner or of the owner's heirs;
185	193		(2) a person holding a power of attorney from the
186	194		reported owner or the owner's heirs; or
187	195		(3) a person attempting to make a claim on behalf of a
188	196		corporation that was previously forfeited, dissolved, or
189	197		terminated, if the comptroller finds that:
190	198		(A) the corporation was revived for the purpose
191	199		of making a claim under this section; and
192	200		(B) the person submitting the claim was not an
193	201		authorized representative of the corporation at the time of the
194	202		corporation's forfeiture, dissolution, or termination.
195	203		SECTION 12. Subchapter F, Chapter 74, Property Code, is
196	204		amended by adding Section 74.503 to read as follows:
197	205		Sec. 74.503. WAIVER OF CLAIM REQUIREMENT. The comptroller
198	206		may waive the requirement of filing a claim and pay or deliver
199	207		property directly to a person who does not file a claim if:
200	208		(1) the person receiving the property is the reported
201	209		owner of the property;
202	210		(2) the comptroller reasonably believes the person is
203	211		entitled to receive the property or payment; and
204	212		(3) the property has a value of less than $5,000.
205	213		SECTION 13. Sections 74.506(a) and (b), Property Code, are
206	214		amended to read as follows:
207	215		(a) A person who has filed a claim that complies with
208	216		Section 74.501(c) may appeal [aggrieved by] the decision of the
209	217		comptroller on the [a] claim [filed under this subchapter may
210	218		appeal the decision] before the 61st day after the day on which it
211	219		was rendered.
212	220		(b) If a claim that complies with Section 74.501(c) has not
213	221		been decided before the 91st day after the day on which it was
214	222		filed, the claimant may file an appeal if, after the claimant
215	223		provides notice by certified mail to the comptroller of the intent
216	224		to file an appeal, the comptroller does not reach a decision on the
217	225		claim on or before the 60th day after the date the notice is
218	226		delivered to the comptroller. An appeal under this section must be
219	227		made within one year of the date the claim was filed [the 60-day
220	228		period beginning on the 91st day after the day of filing].
221	229		SECTION 14. The heading to Section 74.507, Property Code,
222	230		is amended to read as follows:
223	231		Sec. 74.507. ASSISTANCE OF CLAIMANT; FEE FOR RECOVERY.
224	232		SECTION 15. Section 74.507, Property Code, is amended by
225	233		amending Subsection (a) and adding Subsection (c) to read as
226	234		follows:
227	235		(a) A person who informs a potential claimant that the
228	236		claimant may be entitled to claim property that is reportable to the
229	237		comptroller under this chapter, that has been reported to the
230	238		comptroller, or that is in the possession of the comptroller may not
231	239		contract for or receive from the claimant for services an amount
232	240		that exceeds 10 percent of the value of the property recovered, plus
233	241		reasonable attorney's fees necessary to pursue the claim. If the
234	242		property involved is mineral proceeds, the amount for services may
235	243		not include a portion of the underlying minerals or any production
236	244		payment, overriding royalty, or similar payment.
237	245		(c) An agreement to assist a claimant in the recovery of
238	246		property that is reportable to the comptroller, that has been
239	247		reported to the comptroller, or that is in the possession of the
240	248		comptroller under this chapter is enforceable only if the
241	249		agreement:
242	250		(1) clearly states the nature of the property and the
243	251		services to be provided;
244	252		(2) is signed by or on behalf of the claimant; and
245	253		(3) states the amount or value of the property
246	254		reasonably expected to be recovered, computed before and after a
247	255		fee or other compensation has been deducted.
248	256		SECTION 16. Section 74.601(e), Property Code, is amended to
249	257		read as follows:
250	258		(e) The comptroller may [on receipt or from time to time may
251	259		sell securities, including stocks, bonds, and mutual funds,
252	260		received under this chapter or any other statute requiring the
253	261		delivery of unclaimed property to the comptroller and] use the
254	262		proceeds from the sale of securities delivered under this chapter
255	263		to buy, exchange, invest, or reinvest in marketable securities.
256	264		When making or selling the investments, the comptroller shall
257	265		exercise the judgment and care of a prudent person.
258	266		SECTION 17. Section 74.707(a), Property Code, is amended to
259	267		read as follows:
260	268		(a) The comptroller may waive penalty or interest, in whole
261	269		or in part, imposed on delinquent property if the comptroller
262	270		determines that the holder has made a good faith effort to comply
263	271		with Chapters 72-75, or for other good cause.
264	272		SECTION 18. The following provisions of the Insurance Code
265	273		are repealed:
266	274		(1) Section 1109.013(d);
267	275		(2) Section 1109.101; and
268	276		(3) Subchapters B and D, Chapter 1109.
269	277		SECTION 19. Section 1109.013(c), Insurance Code, as amended
270	278		by this Act, applies only to a report that is due under Chapter 74,
271	279		Property Code, on or after September 1, 2021.
272	280		SECTION 20. To the extent of any conflict, this Act prevails
273	281		over another Act of the 87th Legislature, Regular Session, 2021,
274	282		relating to nonsubstantive additions to and corrections in enacted
275	283		codes.
276	284		SECTION 21. This Act takes effect immediately if it
277	285		receives a vote of two-thirds of all the members elected to each
278	286		house, as provided by Section 39, Article III, Texas Constitution.
279	287		If this Act does not receive the vote necessary for immediate
280	288		effect, this Act takes effect September 1, 2021.
281		-	______________________________ ______________________________
282		-	President of the Senate Speaker of the House
283		-	I certify that H.B. No. 1514 was passed by the House on April
284		-	8, 2021, by the following vote: Yeas 149, Nays 0, 1 present, not
285		-	voting; and that the House concurred in Senate amendments to H.B.
286		-	No. 1514 on May 3, 2021, by the following vote: Yeas 145, Nays 0, 1
287		-	present, not voting.
288		-	______________________________
289		-	Chief Clerk of the House
290		-	I certify that H.B. No. 1514 was passed by the Senate, with
291		-	amendments, on April 29, 2021, by the following vote: Yeas 31,
292		-	Nays 0.
293		-	______________________________
294		-	Secretary of the Senate
295		-	APPROVED: __________________
296		-	Date
297		-	__________________
298		-	Governor
	289	+	* * * * *