89R2925 ATP-F
By: Schwertner S.B. No. 1244
A BILL TO BE ENTITLED
AN ACT
relating to unclaimed securities and virtual currency that are
presumed abandoned.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 72, Property Code, is
amended by adding Section 72.002 to read as follows:
Sec. 72.002. DEFINITIONS. In this chapter:
(1) "Security" means:
(A) a security as defined by Section 8.102,
Business & Commerce Code;
(B) a security entitlement as defined by Section
8.102, Business & Commerce Code, including a customer security
account held by a registered broker-dealer, to the extent the
financial assets held in the security account are not:
(i) registered on the books of the issuer in
the name of the person for whom the broker-dealer holds the assets;
(ii) payable to the order of the person for
whom the broker-dealer holds the assets; or
(iii) specifically indorsed to the person
for whom the broker-dealer holds the assets; or
(C) an equity interest in a business association
not included in Paragraph (A) or (B).
(2) "Virtual currency":
(A) means a digital representation of value that:
(i) is used as a medium of exchange, unit of
account, or store of value; and
(ii) is not legal tender, whether or not
denominated in legal tender; and
(B) does not include:
(i) a transaction in which a merchant
grants, as part of an affinity or rewards program, value that cannot
be taken from or exchanged with the merchant for legal tender, bank
credit, or virtual currency; or
(ii) a digital representation of value
issued by or on behalf of a publisher and used solely within an
online game, game platform, or family of games sold by the same
publisher or offered on the same game platform.
SECTION 2. Section 72.101(b), Property Code, is amended to
read as follows:
(b)(1) The three-year period leading to a presumption of
abandonment of a security or virtual currency [stock or another
intangible ownership interest in a business association, the
existence of which is evidenced by records available to the
association,] commences on the first date that [either a sum
payable as a result of the ownership interest is unclaimed by the
owner or] a written or electronic communication to the owner is
returned undelivered by the United States Postal Service or by
electronic mail or other electronic messaging method, as
applicable.
(2) The running of the three-year period of
abandonment ceases immediately on the exercise of an act of
ownership interest in the security or virtual currency [or sum
payable] or a written, oral, or electronic communication with the
holder [association] as evidenced by a memorandum or other record
on file with the holder [association] or the holder's [its] agents.
(3) At the time a security or virtual currency [an
ownership] is presumed abandoned under this section, any sum then
held for interest or owing to the owner as a result of the security
or virtual currency [interest] and not previously presumed
abandoned is presumed abandoned.
(4) For purposes of this section, an exercise of an act
of ownership interest with respect to a security or virtual
currency includes an owner:
(A) conducting a transaction regarding the
security or virtual currency or the account in which the security or
virtual currency is held, including depositing funds into or
withdrawing funds from the account by a one-time transaction or a
recurring transaction previously authorized by the owner other than
an [Any stock or other intangible ownership interest enrolled in a
plan that provides for the] automatic reinvestment of dividends[,
distributions,] or [other sums payable as a result of the
ownership] interest;
(B) electronically accessing the account in
which the security or virtual currency is held;
(C) conducting any activity with respect to
another account owned by the owner with the same holder; and
(D) taking any other action that reasonably
demonstrates to the holder that the owner knows that the property
exists [is subject to the presumption of abandonment as provided by
this section].
SECTION 3. Section 74.301, Property Code, is amended by
amending Subsection (a) and adding Subsections (d) and (e) to read
as follows:
(a) Except as provided by Subsections [Subsection] (c) and
(d), each holder who on March 1 holds property to which this chapter
applies 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.
(d) If the property subject to delivery under Subsection (a)
are digital assets, cryptocurrency, or other tradeable virtual
currency redeemable for fiat currency and the holder has full
control of the necessary private keys required to transfer the
virtual currency, the holder shall report and, before the 30th day
after the reporting date, deliver the virtual currency in its
native form at the direction of the comptroller to either the
comptroller's designated custodian or an in-house account at the
holder established by and for the comptroller. The holder shall
provide the comptroller with proof of delivery with the report
required to be filed under Section 74.101. If the holder possesses
only a partial private key to the virtual currency subject to
delivery under Subsection (a) and is unable to move the virtual
currency, the holder shall maintain the virtual currency until the
additional keys required to transfer the asset become available and
file the report as required by Section 74.101. For property that
is not considered transferable or reportable to the state under
this subsection, the holder shall send paper or electronic mail
notices using the last known address of the owner, if available, at
least once each year in an attempt to reunite the owner with the
owner's assets.
(e) For purposes of Subsection (d), "virtual currency" has
the meaning assigned by Section 72.002.
SECTION 4. Section 74.405, Property Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) The comptroller may not sell a security listed on an
established stock exchange or virtual currency listed on a virtual
currency exchange for less than the price prevailing on the
applicable exchange at the time of sale. The comptroller may sell a
security or virtual currency not listed on an established exchange
by any commercially reasonable method.
(c) For purposes of Subsection (b), "security" and "virtual
currency" have the meanings assigned by Section 72.002.
SECTION 5. This Act takes effect September 1, 2025.