Texas 2025 - 89th Regular

Texas Senate Bill SB1244 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	89R2925 ATP-F
1	2		By: Schwertner S.B. No. 1244
2		-	(In the Senate - Filed February 12, 2025; February 28, 2025,
3		-	read first time and referred to Committee on Business & Commerce;
4		-	April 14, 2025, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 10, Nays 0; April 14, 2025,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 1244 By: Schwertner
9	3
10	4
11	5
12	6
13	7		A BILL TO BE ENTITLED
14	8		AN ACT
15		-	relating to unclaimed ~~personal property, including~~ virtual
16		-	~~currency~~.
	9	+	relating to unclaimed securities and virtual currency that are
	10	+	presumed abandoned.
17	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
18		-	SECTION 1. Section 72.101(b), Property Code, is amended to
	12	+	SECTION 1. Subchapter A, Chapter 72, Property Code, is
	13	+	amended by adding Section 72.002 to read as follows:
	14	+	Sec. 72.002. DEFINITIONS. In this chapter:
	15	+	(1) "Security" means:
	16	+	(A) a security as defined by Section 8.102,
	17	+	Business & Commerce Code;
	18	+	(B) a security entitlement as defined by Section
	19	+	8.102, Business & Commerce Code, including a customer security
	20	+	account held by a registered broker-dealer, to the extent the
	21	+	financial assets held in the security account are not:
	22	+	(i) registered on the books of the issuer in
	23	+	the name of the person for whom the broker-dealer holds the assets;
	24	+	(ii) payable to the order of the person for
	25	+	whom the broker-dealer holds the assets; or
	26	+	(iii) specifically indorsed to the person
	27	+	for whom the broker-dealer holds the assets; or
	28	+	(C) an equity interest in a business association
	29	+	not included in Paragraph (A) or (B).
	30	+	(2) "Virtual currency":
	31	+	(A) means a digital representation of value that:
	32	+	(i) is used as a medium of exchange, unit of
	33	+	account, or store of value; and
	34	+	(ii) is not legal tender, whether or not
	35	+	denominated in legal tender; and
	36	+	(B) does not include:
	37	+	(i) a transaction in which a merchant
	38	+	grants, as part of an affinity or rewards program, value that cannot
	39	+	be taken from or exchanged with the merchant for legal tender, bank
	40	+	credit, or virtual currency; or
	41	+	(ii) a digital representation of value
	42	+	issued by or on behalf of a publisher and used solely within an
	43	+	online game, game platform, or family of games sold by the same
	44	+	publisher or offered on the same game platform.
	45	+	SECTION 2. Section 72.101(b), Property Code, is amended to
19	46		read as follows:
20		-	(b)(1) The [three-year] period leading to a presumption of
21		-	abandonment [of stock or another intangible ownership interest in a
22		-	business association, the existence of which is evidenced by
23		-	records available to the association,] commences on the earlier of:
24		-	(A) the [first] date that [either a sum payable
25		-	as a result of the ownership interest is unclaimed by the owner or]
26		-	a written or electronic communication to the owner is returned
27		-	undelivered by the United States Postal Service or by electronic
28		-	mail or other electronic messaging method, as applicable; or
29		-	(B) the last date on which the owner exercised an
30		-	act of ownership of the property.
31		-	(2) The running of the [three-year] period of
	47	+	(b)(1) The three-year period leading to a presumption of
	48	+	abandonment of a security or virtual currency [stock or another
	49	+	intangible ownership interest in a business association, the
	50	+	existence of which is evidenced by records available to the
	51	+	association,] commences on the first date that [either a sum
	52	+	payable as a result of the ownership interest is unclaimed by the
	53	+	owner or] a written or electronic communication to the owner is
	54	+	returned undelivered by the United States Postal Service or by
	55	+	electronic mail or other electronic messaging method, as
	56	+	applicable.
	57	+	(2) The running of the three-year period of
32	58		abandonment ceases immediately on the exercise of an act of
33		-	ownership interest [or sum payable] or a written, oral, or
34		-	electronic communication with the holder [association] as
35		-	evidenced by a memorandum or other record on file with the holder
36		-	[association] or the holder's [its] agents.
37		-	(3) At the time property [an ownership] is presumed
38		-	abandoned under this section, any sum then held for interest or
39		-	owing to the owner as a result of the ownership interest in the
40		-	property [interest] and not previously presumed abandoned is
41		-	presumed abandoned.
42		-	(4) Any stock or other intangible ownership interest
43		-	enrolled in a plan that provides for the automatic reinvestment of
44		-	dividends, distributions, or other sums payable as a result of the
45		-	ownership interest is subject to the presumption of abandonment as
46		-	provided by this section.
47		-	SECTION 2. The heading to Subchapter A, Chapter 74,
48		-	Property Code, is amended to read as follows:
49		-	SUBCHAPTER A. GENERAL PROVISIONS [APPLICABILITY]
50		-	SECTION 3. Subchapter A, Chapter 74, Property Code, is
51		-	amended by adding Section 74.002 to read as follows:
52		-	Sec. 74.002. DEFINITION. In this chapter, "virtual
53		-	currency" has the meaning assigned by Section 12.001, Business &
54		-	Commerce Code.
55		-	SECTION 4. Subchapter D, Chapter 74, Property Code, is
56		-	amended by adding Section 74.3014 to read as follows:
57		-	Sec. 74.3014. REPORT AND DELIVERY OF VIRTUAL CURRENCY;
58		-	DISPOSITION. (a) If the property that is presumed abandoned under
59		-	Section 72.101 is virtual currency and the holder has full control
60		-	of the necessary private keys required to transfer the virtual
61		-	currency, the holder shall report the property as required under
62		-	Section 74.101 and, at the direction of the comptroller, deliver
63		-	the property in its native form to either the comptroller or the
64		-	comptroller's designated custodian.
65		-	(b) If the property that is presumed abandoned under Section
66		-	72.101 is virtual currency and the holder does not have full control
67		-	of the necessary private keys required to transfer the property or
68		-	possesses only a partial private key to the virtual currency, the
69		-	holder is not required to report and deliver the property to the
70		-	comptroller.
71		-	(c) The comptroller may contract with one or more qualified
72		-	custodians as necessary for the management and safekeeping of
73		-	virtual currency delivered to the comptroller under this section.
74		-	(d) The comptroller may hold property delivered to the
75		-	comptroller under this section outside the state treasury.
76		-	(e) After liquidating virtual currency held outside the
77		-	treasury under Subsection (d), the comptroller:
78		-	(1) may pay the reasonable and necessary expenses for
79		-	the holding and liquidation of the virtual currency from the
80		-	proceeds of the sale; and
81		-	(2) shall deposit the net proceeds of the sale in the
82		-	state treasury in accordance with Section 74.601.
83		-	SECTION 5. Section 74.405(b), Property Code, is amended to
84		-	read as follows:
85		-	(b) The comptroller may not sell a security or virtual
86		-	currency listed on an established [stock] exchange for less than
87		-	the price prevailing on the exchange at the time of sale. The
88		-	comptroller may sell a security or virtual currency not listed on an
89		-	established exchange by any commercially reasonable method.
90		-	SECTION 6. This Act takes effect September 1, 2025.
91		-	* * * * *
	59	+	ownership interest in the security or virtual currency [or sum
	60	+	payable] or a written, oral, or electronic communication with the
	61	+	holder [association] as evidenced by a memorandum or other record
	62	+	on file with the holder [association] or the holder's [its] agents.
	63	+	(3) At the time a security or virtual currency [an
	64	+	ownership] is presumed abandoned under this section, any sum then
	65	+	held for interest or owing to the owner as a result of the security
	66	+	or virtual currency [interest] and not previously presumed
	67	+	abandoned is presumed abandoned.
	68	+	(4) For purposes of this section, an exercise of an act
	69	+	of ownership interest with respect to a security or virtual
	70	+	currency includes an owner:
	71	+	(A) conducting a transaction regarding the
	72	+	security or virtual currency or the account in which the security or
	73	+	virtual currency is held, including depositing funds into or
	74	+	withdrawing funds from the account by a one-time transaction or a
	75	+	recurring transaction previously authorized by the owner other than
	76	+	an [Any stock or other intangible ownership interest enrolled in a
	77	+	plan that provides for the] automatic reinvestment of dividends[,
	78	+	distributions,] or [other sums payable as a result of the
	79	+	ownership] interest;
	80	+	(B) electronically accessing the account in
	81	+	which the security or virtual currency is held;
	82	+	(C) conducting any activity with respect to
	83	+	another account owned by the owner with the same holder; and
	84	+	(D) taking any other action that reasonably
	85	+	demonstrates to the holder that the owner knows that the property
	86	+	exists [is subject to the presumption of abandonment as provided by
	87	+	this section].
	88	+	SECTION 3. Section 74.301, Property Code, is amended by
	89	+	amending Subsection (a) and adding Subsections (d) and (e) to read
	90	+	as follows:
	91	+	(a) Except as provided by Subsections [Subsection] (c) and
	92	+	(d), each holder who on March 1 holds property to which this chapter
	93	+	applies shall deliver the property to the comptroller on or before
	94	+	the following July 1 accompanied by the report required to be filed
	95	+	under Section 74.101.
	96	+	(d) If the property subject to delivery under Subsection (a)
	97	+	are digital assets, cryptocurrency, or other tradeable virtual
	98	+	currency redeemable for fiat currency and the holder has full
	99	+	control of the necessary private keys required to transfer the
	100	+	virtual currency, the holder shall report and, before the 30th day
	101	+	after the reporting date, deliver the virtual currency in its
	102	+	native form at the direction of the comptroller to either the
	103	+	comptroller's designated custodian or an in-house account at the
	104	+	holder established by and for the comptroller. The holder shall
	105	+	provide the comptroller with proof of delivery with the report
	106	+	required to be filed under Section 74.101. If the holder possesses
	107	+	only a partial private key to the virtual currency subject to
	108	+	delivery under Subsection (a) and is unable to move the virtual
	109	+	currency, the holder shall maintain the virtual currency until the
	110	+	additional keys required to transfer the asset become available and
	111	+	file the report as required by Section 74.101. For property that
	112	+	is not considered transferable or reportable to the state under
	113	+	this subsection, the holder shall send paper or electronic mail
	114	+	notices using the last known address of the owner, if available, at
	115	+	least once each year in an attempt to reunite the owner with the
	116	+	owner's assets.
	117	+	(e) For purposes of Subsection (d), "virtual currency" has
	118	+	the meaning assigned by Section 72.002.
	119	+	SECTION 4. Section 74.405, Property Code, is amended by
	120	+	amending Subsection (b) and adding Subsection (c) to read as
	121	+	follows:
	122	+	(b) The comptroller may not sell a security listed on an
	123	+	established stock exchange or virtual currency listed on a virtual
	124	+	currency exchange for less than the price prevailing on the
	125	+	applicable exchange at the time of sale. The comptroller may sell a
	126	+	security or virtual currency not listed on an established exchange
	127	+	by any commercially reasonable method.
	128	+	(c) For purposes of Subsection (b), "security" and "virtual
	129	+	currency" have the meanings assigned by Section 72.002.
	130	+	SECTION 5. This Act takes effect September 1, 2025.