Texas 2021 - 87th Regular

Texas Senate Bill SB789 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R6440 DRS-F
2	2	By: Zaffirini S.B. No. 789
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the administration of unclaimed property.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 551.005(b), Estates Code, is amended to
10	10	read as follows:
11	11	(b) The clerk of a court that orders an executor or
12	12	administrator to pay funds to the comptroller under Section 551.001
13	13	shall provide to [serve on] the comptroller, by certified mail or
14	14	e-mail [personal service of citation], a certified copy of the
15	15	court order not later than the fifth day after the date the order is
16	16	issued.
17	17	SECTION 2. Section 1109.013(c), Insurance Code, is amended
18	18	to read as follows:
19	19	(c) An insurer shall report and deliver unclaimed proceeds
20	20	to the comptroller as required by Chapter 74, Property Code
21	21	[Section 1109.051].
22	22	SECTION 3. Section 72.001, Property Code, is amended by
23	23	adding Subsection (a-1) to read as follows:
24	24	(a-1) Tangible or intangible personal property is not
25	25	subject to this chapter if it is:
26	26	(1) a worthless or non-freely transferable security;
27	27	or
28	28	(2) a firearm.
29	29	SECTION 4. Section 74.001(a), Property Code, is amended to
30	30	read as follows:
31	31	(a) Except as provided by this section [Subsection (b)],
32	32	this chapter applies to:
33	33	(1) property that is presumed abandoned under Chapter
34	34	72, Chapter 73, or Chapter 75;
35	35	(2) property that is presumed abandoned under Chapter
36	36	154, Finance Code;
37	37	(3) unclaimed proceeds under Chapter 1109, Insurance
38	38	Code; or
39	39	(4) any other law requiring a person to report and
40	40	deliver property to the comptroller under this chapter.
41	41	SECTION 5. Section 74.101(a), Property Code, is amended to
42	42	read as follows:
43	43	(a) Each holder who on March 1 holds property to which this
44	44	chapter applies [that is presumed abandoned under Chapter 72, 73,
45	45	or 75 of this code or under Chapter 154, Finance Code,] shall file a
46	46	report of that property on or before the following July 1. The
47	47	comptroller may require the report to be in a particular format,
48	48	including a format that can be read by a computer.
49	49	SECTION 6. Sections 74.1011(a), (b), and (b-1), Property
50	50	Code, are amended to read as follows:
51	51	(a) Except as provided by Subsection (b), a holder who on
52	52	March 1 holds property to which this chapter applies that is valued
53	53	at more than $250 [that is presumed abandoned under Chapter 72, 73,
54	54	or 75 of this code or Chapter 154, Finance Code,] shall, not later
55	55	than the 60th day before the date the property is delivered to the
56	56	comptroller, provide to the owner by [on or before the following May
57	57	1,] mail to the last known address of the [known] owner or by e-mail
58	58	written notice stating that:
59	59	(1) the holder is holding the property; and
60	60	(2) the holder may be required to deliver the property
61	61	to the comptroller on or before July 1 if the property is not
62	62	claimed.
63	63	(b) The notice required under Subsection (a) does not apply
64	64	to a holder who:
65	65	(1) has already provided such notice to the owner of
66	66	the property or a person entitled to the property under existing
67	67	federal law, rules, and regulations or state law within the time
68	68	specified under Subsection (a); or
69	69	(2) does not have a record of a physical or e-mail [an]
70	70	address for the property owner or any other person entitled to the
71	71	property.
72	72	(b-1) If an owner has designated a representative for notice
73	73	under Section 72.1021 or 73.103, the holder shall mail or e-mail the
74	74	written notice required under Subsection (a) to the representative
75	75	in addition to providing written [mailing the] notice to the owner.
76	76	SECTION 7. Section 74.301(a), Property Code, is amended to
77	77	read as follows:
78	78	(a) Except as provided by Subsection (c), each holder who on
79	79	March 1 holds property to which this chapter applies [that is
80	80	presumed abandoned under Chapter 72, 73, or 75] shall deliver the
81	81	property to the comptroller on or before the following July 1
82	82	accompanied by the report required to be filed under Section
83	83	74.101.
84	84	SECTION 8. Section 74.401(d), Property Code, is amended to
85	85	read as follows:
86	86	(d) If after investigation the comptroller determines that
87	87	property delivered under this chapter is not marketable or [from a
88	88	safe deposit box or other repository] has insubstantial commercial
89	89	value, the comptroller may destroy or otherwise dispose of the
90	90	property at any time.
91	91	SECTION 9. Subchapter E, Chapter 74, Property Code, is
92	92	amended by adding Section 74.405 to read as follows:
93	93	Sec. 74.405. DISPOSITION OF SECURITIES. (a) The
94	94	comptroller may sell or otherwise liquidate a security delivered to
95	95	the comptroller under this chapter.
96	96	(b) The comptroller may not sell a security listed on an
97	97	established stock exchange for less than the price prevailing on
98	98	the exchange at the time of sale. The comptroller may sell a
99	99	security not listed on an established exchange by any commercially
100	100	reasonable method.
101	101	SECTION 10. Sections 74.501(c), (d), and (f), Property
102	102	Code, are amended to read as follows:
103	103	(c) All claims to which this subchapter [section] applies
104	104	must:
105	105	(1) identify the specific property in the possession
106	106	of the comptroller that is being claimed;
107	107	(2) include all necessary documentation the
108	108	comptroller may require; and
109	109	(3) except as provided by Section 74.503, be filed in
110	110	accordance with procedures, contain the information, and be on
111	111	forms prescribed by the comptroller.
112	112	(d) On receipt of a claim form and all necessary
113	113	documentation the comptroller may require, or [and] as may be
114	114	appropriate under the circumstances, the comptroller may approve
115	115	the claim of:
116	116	(1) the reported owner of the property;
117	117	(2) if the reported owner died testate:
118	118	(A) the appropriate legal beneficiaries of the
119	119	owner as provided by the last will and testament of the owner that
120	120	has been accepted into probate or filed as a muniment of title; [or]
121	121	(B) the executor of the owner's last will and
122	122	testament who holds current letters testamentary; or
123	123	(C) the appropriate legal beneficiaries of the
124	124	owner as provided by a valid last will and testament of the owner
125	125	that has not been accepted into probate or filed as a muniment of
126	126	title, if:
127	127	(i) the amount of the property being
128	128	claimed is less than $10,000; and
129	129	(ii) the beneficiaries named in the will
130	130	are the same persons who would inherit the property if the owner had
131	131	died intestate;
132	132	(3) if the reported owner died intestate:
133	133	(A) the legal heirs of the owner as provided by
134	134	Sections 201.001,[and] 201.002, and 201.003, Estates Code; [or]
135	135	(B) the court-appointed independent
136	136	administrator of the owner's estate, if the administrator was
137	137	appointed before the fourth anniversary of the date of the death of
138	138	the owner; or
139	139	(C) the court-appointed dependent administrator
140	140	of the owner's estate;
141	141	(4) the legal heirs of the reported owner as
142	142	established by a determination [an affidavit] of heirship order
143	143	signed by a judge of the county probate court or by a county judge;
144	144	(5) if the reported owner is a minor child or an adult
145	145	who has been adjudged incompetent by a court of law, the parent or
146	146	legal guardian of the child or adult;
147	147	(6) if the reported owner is a corporation:
148	148	(A) the president or chair of the board of
149	149	directors of the corporation, on behalf of the corporation; or
150	150	(B) any person who has legal authority to act on
151	151	behalf of the corporation;
152	152	(7) if the reported owner is a corporation that has
153	153	been dissolved or liquidated:
154	154	(A) the sole surviving shareholder of the
155	155	corporation, if there is only one surviving shareholder;
156	156	(B) the surviving shareholders of the
157	157	corporation in proportion to their ownership of the corporation, if
158	158	there is more than one surviving shareholder;
159	159	(C) the corporation's bankruptcy trustee,
160	160	bankruptcy estate representative, or other person authorized
161	161	pursuant to Title 11, United States Code, or an order of a
162	162	bankruptcy court to act on behalf of or for the benefit of the
163	163	corporation's bankruptcy estate, or any assignee of any such
164	164	person; or
165	165	(D) the court-ordered receiver for the
166	166	corporation; or
167	167	(8) any other person that is entitled to receive the
168	168	unclaimed property under other law or comptroller policy.
169	169	(f) Notwithstanding Subsection (e), the [The] comptroller
170	170	may approve the [a] claim of [for]:
171	171	(1) the attorney general or other Title IV-D agency,
172	172	as defined by Section 101.033, Family Code, for child support
173	173	arrearages owed by the reported owner of the property that are [and]
174	174	reflected in a child support lien notice that complies with Section
175	175	157.313, Family Code; or
176	176	(2) a person holding a durable power of attorney of a
177	177	person who is medically incapacitated. [A claim under this
178	178	subsection may be submitted by the lienholder or the attorney
179	179	general on behalf of the lienholder.]
180	180	SECTION 11. Section 74.501(e), Property Code, as amended by
181	181	Chapters 267 (S.B. 1420) and 897 (H.B. 3598), Acts of the 86th
182	182	Legislature, Regular Session, 2019, is reenacted and amended to
183	183	read as follows:
184	184	(e) Except as provided by Subsection (d)(7) or (f) or
185	185	Section 551.051, Estates Code, the comptroller may not pay to the
186	186	following persons a claim to which this section applies:
187	187	(1) a creditor, a judgment creditor, a lienholder, or
188	188	an assignee of the reported owner or of the owner's heirs;
189	189	(2) a person holding a power of attorney from the
190	190	reported owner or the owner's heirs; or
191	191	(3) a person attempting to make a claim on behalf of a
192	192	corporation that was previously forfeited, dissolved, or
193	193	terminated, if the comptroller finds that:
194	194	(A) the corporation was revived for the purpose
195	195	of making a claim under this section; and
196	196	(B) the person submitting the claim was not an
197	197	authorized representative of the corporation at the time of the
198	198	corporation's forfeiture, dissolution, or termination.
199	199	SECTION 12. Subchapter F, Chapter 74, Property Code, is
200	200	amended by adding Section 74.503 to read as follows:
201	201	Sec. 74.503. WAIVER OF CLAIM REQUIREMENT. The comptroller
202	202	may waive the requirement of filing a claim and pay or deliver
203	203	property directly to a person who does not file a claim if:
204	204	(1) the person receiving the property is the reported
205	205	owner of the property;
206	206	(2) the comptroller reasonably believes the person is
207	207	entitled to receive the property or payment; and
208	208	(3) the property has a value of less than $5,000.
209	209	SECTION 13. Sections 74.506(a) and (b), Property Code, are
210	210	amended to read as follows:
211	211	(a) A person who has filed a claim that complies with
212	212	Section 74.501(c) may appeal [aggrieved by] the decision of the
213	213	comptroller on the [a] claim [filed under this subchapter may
214	214	appeal the decision] before the 61st day after the day on which it
215	215	was rendered.
216	216	(b) If a claim that complies with Section 74.501(c) has not
217	217	been decided before the 91st day after the day on which it was
218	218	filed, the claimant may file an appeal if, after the claimant
219	219	provides notice by certified mail to the comptroller of the intent
220	220	to file an appeal, the comptroller does not reach a decision on the
221	221	claim on or before the 60th day after the date the notice is
222	222	delivered to the comptroller. An appeal under this section must be
223	223	made within one year of the date the claim was filed [the 60-day
224	224	period beginning on the 91st day after the day of filing].
225	225	SECTION 14. The heading to Section 74.507, Property Code,
226	226	is amended to read as follows:
227	227	Sec. 74.507. ASSISTANCE OF CLAIMANT; FEE FOR RECOVERY.
228	228	SECTION 15. Section 74.507, Property Code, is amended by
229	229	amending Subsection (a) and adding Subsection (c) to read as
230	230	follows:
231	231	(a) A person who informs a potential claimant that the
232	232	claimant may be entitled to claim property that is reportable to the
233	233	comptroller under this chapter, that has been reported to the
234	234	comptroller, or that is in the possession of the comptroller may not
235	235	contract for or receive from the claimant for services an amount
236	236	that exceeds 10 percent of the value of the property recovered, plus
237	237	reasonable attorney's fees necessary to pursue the claim. If the
238	238	property involved is mineral proceeds, the amount for services may
239	239	not include a portion of the underlying minerals or any production
240	240	payment, overriding royalty, or similar payment.
241	241	(c) An agreement to assist a claimant in the recovery of
242	242	property that is reportable to the comptroller, that has been
243	243	reported to the comptroller, or that is in the possession of the
244	244	comptroller under this chapter is enforceable only if the
245	245	agreement:
246	246	(1) clearly states the nature of the property and the
247	247	services to be provided;
248	248	(2) is signed by or on behalf of the claimant; and
249	249	(3) states the amount or value of the property
250	250	reasonably expected to be recovered, computed before and after a
251	251	fee or other compensation has been deducted.
252	252	SECTION 16. Section 74.601(e), Property Code, is amended to
253	253	read as follows:
254	254	(e) The comptroller may [on receipt or from time to time may
255	255	sell securities, including stocks, bonds, and mutual funds,
256	256	received under this chapter or any other statute requiring the
257	257	delivery of unclaimed property to the comptroller and] use the
258	258	proceeds from the sale of securities delivered under this chapter
259	259	to buy, exchange, invest, or reinvest in marketable securities.
260	260	When making or selling the investments, the comptroller shall
261	261	exercise the judgment and care of a prudent person.
262	262	SECTION 17. Section 74.707(a), Property Code, is amended to
263	263	read as follows:
264	264	(a) The comptroller may waive any penalty or interest, in
265	265	whole or in part, imposed on delinquent property if the comptroller
266	266	determines that the holder has made a good faith effort to comply
267	267	with Chapters 72-75, or for other good cause.
268	268	SECTION 18. The following provisions of the Insurance Code
269	269	are repealed:
270	270	(1) Section 1109.013(d);
271	271	(2) Section 1109.101; and
272	272	(3) Subchapters B and D, Chapter 1109.
273	273	SECTION 19. Section 1109.013(c), Insurance Code, as amended
274	274	by this Act, applies only to a report that is due under Chapter 74,
275	275	Property Code, on or after September 1, 2021.
276	276	SECTION 20. To the extent of any conflict, this Act prevails
277	277	over another Act of the 87th Legislature, Regular Session, 2021,
278	278	relating to nonsubstantive additions to and corrections in enacted
279	279	codes.
280	280	SECTION 21. This Act takes effect immediately if it
281	281	receives a vote of two-thirds of all the members elected to each
282	282	house, as provided by Section 39, Article III, Texas Constitution.
283	283	If this Act does not receive the vote necessary for immediate
284	284	effect, this Act takes effect September 1, 2021.