87R3633 DRS-F     By: Landgraf H.B. No. 1514       A BILL TO BE ENTITLED   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:                 (1)  a worthless or non-freely transferable security;   or                 (2)  a firearm.          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.