CHAPTER 74. REPORT, DELIVERY, AND CLAIMS PROCESS
PROPERTY CODE
TITLE 6. UNCLAIMED PROPERTY
CHAPTER 74. REPORT, DELIVERY, AND CLAIMS PROCESS
SUBCHAPTER A. APPLICABILITY
Sec. 74.001. APPLICABILITY. (a) Except as provided by
Subsection (b), this chapter applies to a holder of property that
is presumed abandoned under Chapter 72, Chapter 73, or Chapter
75.
(b) This chapter does not apply to a holder of property subject
to Chapter 76.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 13, eff.
Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 16, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 465, Sec. 2, eff. Sept.
1, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.03, eff.
Jan. 11, 2004.
SUBCHAPTER B. PROPERTY REPORT
Sec. 74.101. PROPERTY REPORT. (a) Each holder who on June 30
holds property 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 November 1.
The comptroller may require the report to be in a particular
format, including a format that can be read by a computer.
(b) Repealed by Acts 1999, 76th Leg., ch. 1208, Sec. 5, eff.
Sept. 1, 1999.
(c) The property report must include, if known by the holder:
(1) the name, social security number, driver's license or state
identification number, e-mail address, and the last known address
of:
(A) each person who, from the records of the holder of the
property, appears to be the owner of the property; or
(B) any person who is entitled to the property;
(2) a description of the property, the identification number, if
any, and, if appropriate, a balance of each account, except as
provided by Subsection (d);
(3) the date that the property became payable, demandable, or
returnable;
(4) the date of the last transaction with the owner concerning
the property; and
(5) other information that the comptroller by rule requires to
be disclosed as necessary for the administration of this chapter.
(d) Amounts due that individually are less than $50 may be
reported in the aggregate without furnishing any of the
information required by Subsection (c).
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 4, eff.
Sept. 1, 1987; Acts 1991, 72nd Leg., ch. 153, Sec. 14, eff. Sept.
1, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 1, Sec. 2, eff.
Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 17, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.06, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 5, eff. Sept.
1, 1999; Acts 1999, 76th Leg., ch. 62, Sec. 7.86, eff. Sept. 1,
1999; Acts 2003, 78th Leg., ch. 465, Sec. 3, eff. Sept. 1, 2003;
Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.04, eff. Jan. 11,
2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
232, Sec. 1, eff. September 1, 2009.
Sec. 74.1011. NOTICE BY PROPERTY HOLDER REQUIRED. (a) Except
as provided by Subsection (b), a holder who on June 30 holds
property valued at more than $250 that is presumed abandoned
under Chapter 72, 73, or 75 of this code or Chapter 154, Finance
Code, shall, on or before the following August 1, mail to the
last known address of the known owner 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 November 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 an address for the property owner
or any other person entitled to the property.
(c) A holder that provides notice under this section may charge
the cost of the postage as a service charge against the property.
Added by Acts 2009, 81st Leg., R.S., Ch.
232, Sec. 2, eff. September 1, 2009.
Sec. 74.102. SIGNED STATEMENT. (a) The person preparing a
property report shall provide with each copy of the report a
statement signed by:
(1) the individual holding the reported property;
(2) a partner, if the holder is a partnership;
(3) an officer, if the holder is an unincorporated association
or a private corporation; or
(4) the chief fiscal officer, if the holder is a public
corporation.
(b) The statement must include the following sentence:
"This report contains a full and complete list of all property
held by the undersigned that, from the knowledge and records of
the undersigned, is abandoned under the laws of the State of
Texas."
(c) The comptroller may adopt rules or policies relating to the
signature requirement, as the comptroller determines appropriate,
to maximize the use of future developments in electronic filing
technology.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 18, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 1, eff. Sept.
1, 1999.
Sec. 74.103. RETENTION OF RECORDS. (a) A holder required to
file a property report under Section 74.101 shall keep a record
of:
(1) the name, the social security number, if known, and the last
known address of each person who, from the records of the holder
of the property, appears to be the owner of the property;
(2) a brief description of the property, including the
identification number, if any; and
(3) the balance of each account, if appropriate.
(b) The record must be kept for 10 years from the date on which
the property is reportable, regardless of whether the property is
reported in the aggregate under Section 74.101.
(c) The comptroller may by rule provide for a shorter period for
keeping a record required by this section.
(d) The comptroller may determine the liability of a holder
required to file a property report under Section 74.101 using the
best information available to the comptroller if the records of
the holder are unavailable or incomplete for any portion of the
required retention period.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 19, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.07, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1310, Sec. 84, eff.
Sept. 1, 2003.
Sec. 74.104. CONFIDENTIALITY OF PROPERTY REPORT. (a) Except as
provided by Section 74.201, 74.203, or 74.307, a property report
filed with the comptroller under Section 74.101 is confidential
until the second anniversary of the date the report is filed.
(b) The social security number of an owner that is provided to
the comptroller is confidential.
Added by Acts 1991, 72nd Leg., ch. 153, Sec. 15, eff. Sept. 1,
1991. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 20, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.08, eff.
Sept. 1, 1997.
SUBCHAPTER C. NOTICE BY COMPTROLLER
Sec. 74.201. REQUIRED NOTICE. (a) Except as provided by
Section 74.202, the comptroller may use one or more methods as
necessary to provide the most efficient and effective notice to
each reported owner in the calendar year immediately following
the year in which the report required by Section 74.101 is filed.
The notice must be provided:
(1) in the county of the property owner's last known address; or
(2) in the county in which the holder has its principal place of
business or its registered office for service in this state, if
the property owner's last address is unknown.
(b) The notice must state that the reported property is presumed
abandoned and subject to this chapter and must contain:
(1) the name and city of last known address of the reported
owner;
(2) a statement that, by inquiry, any person possessing a legal
or beneficial interest in the reported property may obtain
information concerning the amount and description of the
property; and
(3) a statement that the person may present proof of the claim
and establish the person's right to receive the property.
(c) Deleted by Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff.
Sept. 1, 1997.
(d) The comptroller may offer for sale space for suitable
advertisements in a notice published under this section.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff.
Sept. 1, 1987; Acts 1991, 72nd Leg., ch. 153, Sec. 16, eff. Sept.
1, 1991; Acts 1993, 73rd Leg., ch. 36, Sec. 3.03, eff. Sept. 1,
1993; Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.09, eff. Sept. 1,
1997.
Sec. 74.202. NOTICE FOR ITEM WITH VALUE OF LESS THAN $100. In
the notice required by Section 74.201, the comptroller is not
required to publish information regarding an item having a value
that is less than $100 unless the comptroller determines that
publication of that information is in the public interest.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 571, Sec. 1, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.10, eff.
Sept. 1, 1997.
Sec. 74.203. AUTHORIZED NOTICE. (a) During the calendar year
immediately following the year in which the report required by
Section 74.101 is filed, notice may be mailed to each person who
has been reported with a Texas address and appears to be entitled
to the reported property.
(b) The notice under Subsection (a) must conform to the
requirements for notice under Section 74.201(b).
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 17, eff.
Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.11, eff.
Sept. 1, 1997.
Sec. 74.205. CHARGE FOR NOTICE. The comptroller may charge the
following against the property delivered under this chapter:
(1) expenses incurred for the publication of notice required by
Section 74.201; and
(2) the amount paid in postage for the notice to the owner
required by Section 74.203.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 22, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.12, eff.
Sept. 1, 1997.
SUBCHAPTER D. DELIVERY
Sec. 74.301. DELIVERY OF PROPERTY TO COMPTROLLER. (a) Except
as provided by Subsection (c), each holder who on June 30 holds
property that is presumed abandoned under Chapter 72, 73, or 75
shall deliver the property to the comptroller on or before the
following November 1 accompanied by the report required to be
filed under Section 74.101.
(b) If the property subject to delivery under Subsection (a) is
stock or some other intangible ownership interest in a business
association for which there is no evidence of ownership, the
holder shall issue a duplicate certificate or other evidence of
ownership to the comptroller at the time delivery is required
under this section.
(c) If the property subject to delivery under Subsection (a) is
the contents of a safe deposit box, the comptroller may instruct
a holder to deliver the property on a specified date before
November 1 of the following year.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 19, 30(2),
eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 22, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.13, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 2, eff. Sept.
1, 1999; Acts 2003, 78th Leg., ch. 465, Sec. 4, eff. Sept. 1,
2003; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.05, eff. Jan.
11, 2004.
Sec. 74.3011. DELIVERY OF MONEY TO RURAL SCHOLARSHIP FUND. (a)
Notwithstanding and in addition to any other provision of this
chapter or other law, a local telephone exchange company may
deliver reported money to a scholarship fund for rural students
instead of delivering the money to the comptroller as prescribed
by Section 74.301.
(b) A local telephone exchange company may deliver the money
under this section only to a scholarship fund established by one
or more local telephone exchange companies in this state to
enable needy students from rural areas to attend college,
technical school, or another postsecondary educational
institution.
(c) A local telephone exchange company shall file with the
comptroller a verification of money delivered under this section
that complies with Section 74.302.
(d) A claim for money delivered to a scholarship fund under this
section must be filed with the local telephone exchange company
that delivered the money. The local telephone exchange company
shall forward the claim to the administrator of the scholarship
fund to which the money was delivered. The scholarship fund shall
pay the claim if the fund determines in good faith that the claim
is valid. A person aggrieved by a claim decision may file a suit
against the fund in a district court in the county in which the
administrator of the scholarship fund is located in accordance
with Section 74.506.
(e) The comptroller shall prescribe forms and procedures
governing this section, including forms and procedures relating
to:
(1) notice of presumed abandoned property;
(2) delivery of reported money to a scholarship fund; and
(3) filing of a claim.
(f) In this section, "local telephone exchange company" means a
telecommunications utility certificated to provide local exchange
service within the state and that is a telephone cooperative or
has fewer than 50,000 access lines in service in this state.
(g) During a state fiscal year, the total amount of money that
may be transferred by all local telephone exchange companies
under this section may not exceed $800,000. The comptroller
shall keep a record of the total amount of money transferred
annually. When the total amount of money transferred during a
state fiscal year equals the amount allowed by this subsection,
the comptroller shall notify each local telephone exchange
company that the company may not transfer any additional money to
the company's scholarship fund during the remainder of that state
fiscal year.
Added by Acts 1995, 74th Leg., ch. 231, Sec. 50(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 23, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.14, eff.
Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
163, Sec. 1, eff. September 1, 2007.
Sec. 74.3012. DELIVERY OF MONEY TO URBAN SCHOLARSHIP FUND. (a)
Notwithstanding and in addition to any other provision of this
chapter or other law, a local exchange company may deliver
reported money to a scholarship fund for urban students instead
of delivering the money to the comptroller as prescribed by
Section 74.301.
(b) A local exchange company may deliver the money under this
section only to a scholarship fund established by one or more
local exchange companies in this state to enable needy students
from urban areas to attend college, technical school, or another
postsecondary educational institution.
(c) A local exchange company shall file with the comptroller a
verification of money delivered under this section that complies
with Section 74.302.
(d) A claim for money delivered to a scholarship fund under this
section must be filed with the local exchange company that
delivered the money. The local exchange company shall forward the
claim to the administrator of the scholarship fund to which the
money was delivered. The scholarship fund shall pay the claim if
the fund determines in good faith that the claim is valid. A
person aggrieved by a claim decision may file a suit against the
fund in a district court in the county in which the administrator
of the scholarship fund is located in accordance with Section
74.506.
(e) The comptroller shall prescribe forms and procedures
governing this section, including forms and procedures relating
to:
(1) notice of presumed abandoned property;
(2) delivery of reported money to a scholarship fund; and
(3) filing of a claim.
(f) In this section, "local exchange company" means a
telecommunications utility certificated to provide local exchange
telephone service within the state and that has 50,000 or more
access lines in service in this state and is not a telephone
cooperative.
(g) During each state fiscal year, the total amount of money
that may be transferred by all local exchange companies under
this section may not exceed the total amount of money transferred
to rural scholarship funds under Section 74.3011 during the
previous state fiscal year. The comptroller shall keep a record
of the total amount of money transferred annually. If the total
amount of money transferred during a state fiscal year equals the
amount allowed by this subsection, the comptroller shall notify
each local exchange company that the company may not transfer any
additional money to the company's scholarship fund during the
remainder of that state fiscal year.
Added by Acts 1995, 74th Leg., ch. 231, Sec. 51(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 24, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.15, eff.
Sept. 1, 1997.
Sec. 74.3013. DELIVERY OF MONEY FOR RURAL SCHOLARSHIP, ECONOMIC
DEVELOPMENT, AND ENERGY EFFICIENCY ASSISTANCE. (a)
Notwithstanding and in addition to any other provision of this
chapter or other law, a nonprofit cooperative corporation may
deliver reported money to a scholarship fund for rural students,
to stimulate rural economic development, or to provide energy
efficiency assistance to members of electric cooperatives,
instead of delivering the money to the comptroller as prescribed
in Section 74.301.
(b) A nonprofit cooperative corporation may deliver the money
under this section only:
(1) to a scholarship fund established by one or more nonprofit
cooperative corporations in this state to enable students from
rural areas to attend college, technical school, or other
postsecondary educational institution;
(2) to an economic development fund for the stimulation and
improvement of business and commercial activity for economic
development in rural communities; and
(3) to an energy efficiency assistance fund to assist members of
an electric cooperative in reducing their energy consumption and
electricity bills.
(c) A nonprofit cooperative corporation shall file with the
comptroller a verification of money delivered under this section
that complies with Section 74.302.
(d) A claim for money delivered under this section must be filed
with the nonprofit cooperative corporation that delivered the
money. A nonprofit cooperative corporation shall forward the
claim to the administrator of the fund to which the money was
delivered. The fund shall pay the claim if the fund determines in
good faith that the claim is valid. A person aggrieved by a claim
decision may file a suit against the fund in a district court in
the county in which the administrator of the fund is located in
accordance with Section 74.506.
(e) The comptroller shall prescribe forms and procedures
governing this section, including forms and procedures relating
to:
(1) notice of presumed abandoned property;
(2) delivery of reported money to a scholarship, economic
development fund, or energy efficiency assistance fund;
(3) filing of a claim; and
(4) procedures to allow equitable opportunity for participation
by each nonprofit cooperative corporation in the state.
(f) During a state fiscal year the total amount of money that
may be transferred by all nonprofit cooperative corporations
under this section may not exceed $2 million. No more than 20
percent of each nonprofit cooperative's funds eligible for
delivery under this section shall be used for economic
development. The comptroller shall adopt procedures to record
the total amount of money transferred annually.
(g) Nonprofit cooperative corporations may combine funds from
other sources with any funds delivered under this section. In
addition, such cooperatives may engage in other business and
commercial activities, in their own behalf or through such
subsidiaries and affiliates as deemed necessary, in order to
provide and promote educational opportunities and to stimulate
rural economic development.
(h) In this section, a nonprofit cooperative corporation means a
cooperative corporation organized under Chapters 51 and 52,
Agriculture Code, the Texas Non-Profit Corporation Act (Article
1396-1.01 et seq., Vernon's Texas Civil Statutes), the
Cooperative Association Act (Article 1396-50.01, Vernon's Texas
Civil Statutes), and Chapter 161, Utilities Code.
Added by Acts 1997, 75th Leg., ch. 904, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.45, eff.
Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
939, Sec. 14, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
939, Sec. 15, eff. September 1, 2007.
Sec. 74.302. STATEMENT OF DELIVERED PROPERTY. (a) Property
delivered under Section 74.301 must be accompanied by a statement
that:
(1) the property delivered is a complete and correct remittance
of all accounts subject to this chapter in the holder's
possession;
(2) the existence and location of the listed owners are unknown
to the holder; and
(3) the listed owners have not asserted a claim or exercised an
act of ownership with respect to the owner's reported property.
(b) The statement required by Subsection (a) shall be signed by:
(1) the individual holding the reported property;
(2) a partner, if the holder is a partnership;
(3) an officer, if the holder is an unincorporated association
or a private corporation; or
(4) the chief fiscal officer, if the holder is a public
corporation.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 20, eff.
Sept. 1, 1991; Acts 1999, 76th Leg., ch. 1208, Sec. 3, eff. Sept.
1, 1999.
Sec. 74.304. RESPONSIBILITY AFTER DELIVERY. (a) If reported
property is delivered to the comptroller, the state shall assume
custody of the property and responsibility for its safekeeping.
(b) A holder who delivers property to the comptroller in good
faith is relieved of all liability to the extent of the value of
the property delivered for any claim then existing, that may
arise after delivery to the comptroller, or that may be made with
respect to the property.
(c) If the holder delivers property to the comptroller in good
faith and, after delivery, a person claims the property from the
holder or another state claims the property under its laws
relating to escheat or unclaimed property, the attorney general
shall, on written notice of the claim, defend the holder against
the claim, and the holder shall be indemnified from the unclaimed
money received under this chapter or any other statute requiring
delivery of unclaimed property to the comptroller against any
liability on the claim.
(d) The comptroller is not, in the absence of negligence or
mishandling of the property, liable to the person who claims the
property for damages incurred while the property or the proceeds
from the sale of the property are in the comptroller's
possession. But in any event the liability of the state is
limited to the extent of the property delivered under this
chapter and remaining in the possession of the comptroller at the
time a suit is filed.
(e) For the purposes of this section, payment or delivery is
made in good faith if:
(1) payment or delivery was made in a reasonable attempt to
comply with this chapter;
(2) the holder delivering the property was not a fiduciary then
in breach of trust with respect to the property and had a
reasonable basis for believing based on the facts then known to
the holder that the property was abandoned or inactive for
purposes of this chapter; and
(3) there is no showing that the records under which the
delivery was made did not meet reasonable commercial standards of
practice in the industry.
(f) On delivery of a duplicate certificate or other evidence of
ownership to the comptroller under Subsection (b) of Section
74.301, the holder and any transfer agent, registrar, or other
person acting for or on behalf of a holder in executing or
delivering the duplicate certificate are relieved of all
liability of every kind in accordance with this section to any
person, including any person acquiring the original certificate
or the duplicate of the certificate issued to the comptroller,
for any losses or damages resulting to any person by the issuance
and delivery to the comptroller of the duplicate certificate.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.16, eff.
Sept. 1, 1997.
Sec. 74.306. UNCLAIMED PROPERTY HELD BY FEDERAL GOVERNMENT. (a)
If the federal government enacts a law that provides for the
discovery of unclaimed property held by the federal government
and that provides or makes that information available to the
states, the comptroller may pay to the federal government from
the unclaimed money received under this chapter or any other
statute requiring the delivery of unclaimed property to the
comptroller the proportional share of the necessary cost of
examining records.
(b) If the federal government delivers unclaimed property to the
comptroller, this state shall hold the federal government
harmless from claims made by owners of the property after the
delivery.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.18, eff.
Sept. 1, 1997.
Sec. 74.3061. ESCHEAT OF FUNDS IN THE POSSESSION OF THE UNITED
STATES. (a) In the event any money is due to a resident of this
state in the nature of a refund, rebate, or other overpayment of
taxes or fees to the United States with respect to which the
resident is likely to have his rights to secure such refund or
rebate barred by a statute of limitations, or if for any reason
at least three years has elapsed after the date on which the
resident could have filed a timely claim for said refund or
rebate, the comptroller is appointed agent of such resident to
apply for said refund or rebate and is authorized to do any act
which a natural person could do to recover said money. When the
comptroller files an application or initiates any other
proceeding to secure said refund or rebate, the comptroller is
coupled with an interest in the money sought and money recovered.
All property within this provision, including all principal and
interest accruing thereon, is declared to have escheated and to
have become the property of the state.
(b) The funds escheated by the state pursuant to this provision
shall be given notice as provided by Section 74.201. Title to any
such property shall be transferred by the state to any persons
who in accordance with Subchapter F can show that the property
belonged to them immediately prior to the escheat or that they
were heirs to those funds immediately prior to the escheat.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff. Sept. 1,
1997.
Sec. 74.307. LIST OF OWNERS. (a) The comptroller shall compile
and revise each year, except as to amounts reported in the
aggregate, an alphabetical list of the names and last known
addresses of the owners listed in the reports and the amount
credited to each account.
(b) The comptroller shall make the list available for public
inspection during all reasonable business hours.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.19, eff.
Sept. 1, 1997.
Sec. 74.308. PERIOD OF LIMITATION NOT A BAR. The expiration, on
or after September 1, 1987, of any period specified by contract,
statute, or court order, during which an action or proceeding may
be initiated or enforced to obtain payment of a claim for money
or recovery of property, does not prevent the money or property
from being presumed abandoned property and does not affect any
duty to file a report required by this chapter or to pay or
deliver abandoned property to the comptroller.
Added by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1,
1987. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.20, eff.
Sept. 1, 1997.
Sec. 74.309. PRIVATE ESCHEAT AGREEMENTS PROHIBITED. An
individual, corporation, business association, or other
organization may not act through amendment of articles of
incorporation, amendment of bylaws, private agreement, or any
other means to take or divert funds or personal property into
income, divide funds or personal property among locatable patrons
or stockholders, or divert funds or personal property by any
other method for the purpose of circumventing the unclaimed
property process.
Added by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1,
1987.
SUBCHAPTER E. DISPOSITION OF DELIVERED PROPERTY
Sec. 74.401. SALE OF PROPERTY. (a) Except as provided by
Subsection (c) or Section 74.404, the comptroller shall sell at
public sale all personal property, other than money and
marketable securities, delivered to the comptroller in accordance
with Section 74.301. The comptroller shall conduct the sale in
the city in this state that the comptroller determines affords
the most favorable market for the particular property.
(b) The comptroller shall sell the property to the highest
bidder. If the comptroller determines that the highest bid is
insufficient, the comptroller may decline that bid and offer the
property for public or private sale.
(c) The comptroller is not required to offer property for sale
if the property belongs to a person with an address outside this
state or the comptroller determines that the probable cost of the
sale of the property exceeds its value.
(d) If after investigation the comptroller determines that
property delivered 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.
(e) A person may not maintain any action or proceeding against
the state, an officer of the state, or the holder of property
because of an action taken by the comptroller under this section.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.04, eff.
Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 26, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.21, eff.
Sept. 1, 1997; Acts 2001, 77th Leg., ch. 800, Sec. 1, eff. Sept.
1, 2001.
Sec. 74.402. NOTICE OF SALE. Before the 21st day preceding the
day on which a public sale is held under Section 74.401, the
comptroller shall publish notice of the sale in a newspaper of
general circulation in Travis County or in the county where the
sale is to be held. If the public sale is to be held on the
Internet or by an online auction, the comptroller may post the
notice on the comptroller's own website before the seventh day
preceding the date on which the sale or auction is held.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.05, eff.
Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 26, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.22, eff.
Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1263, Sec. 80, eff.
Sept. 1, 2001.
Sec. 74.403. PURCHASER'S TITLE. (a) At a sale, public or
private, of property that is held under this subchapter, the
purchaser receives title to the purchased property free from all
claims of the prior owner and prior holder of the property and
all persons claiming through or under the owner or holder.
(b) The comptroller shall execute all documents necessary to
complete the transfer of title.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 27, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.23, eff.
Sept. 1, 1997.
Sec. 74.404. SALE OF MILITARY AWARDS AND DECORATIONS PROHIBITED.
(a) In this section, "military award or decoration" means a
military decoration for an act of valor, heroism, or exceptional
service, a good conduct medal, a service medal, a service ribbon,
or a badge, tab, certificate, or letter awarded in connection
with military service.
(b) A military award or decoration delivered to the comptroller
under this chapter:
(1) may not be sold under Section 74.401 or destroyed; and
(2) shall be delivered by the comptroller to the adjutant
general's department.
(c) The adjutant general's department shall conduct a reasonable
search of public records to locate the person to whom the
military award or decoration was awarded. If the department
cannot locate the person, the department shall attempt to locate
the person's next of kin. If the department locates the person or
the person's next of kin, the department shall deliver the award
or decoration to the person or the person's next of kin, as
applicable.
(d) If the adjutant general's department cannot locate the
person to whom a military award or decoration was awarded or the
person's next of kin, the award or decoration shall be held in
trust for the comptroller at:
(1) a museum established by the department; or
(2) if no museum exists, any other public facility designated by
the department.
(e) Except as provided by this subsection, a military award or
decoration held in trust by a museum or facility designated under
Subsection (d) shall be used in a display or exhibit that honors
persons who have served the state or nation in military service.
If the museum or facility cannot practically incorporate the
award or decoration into an established display or exhibit of the
museum or facility, the award or decoration shall be kept in a
secure storage area or loaned to another museum for use in a
display or exhibit that honors persons who have served the state
or nation in military service.
(f) This section does not affect a person's right to claim a
military award or decoration under Subchapter F.
Added by Acts 2001, 77th Leg., ch. 800, Sec. 2, eff. Sept. 1,
2001.
SUBCHAPTER F. CLAIM FOR DELIVERED PROPERTY
Sec. 74.501. CLAIM FILED WITH COMPTROLLER. (a) The comptroller
shall review the validity of each claim filed under this section.
(b) If the comptroller determines that a claim is valid, the
comptroller or the comptroller's authorized agent shall approve
the claim. If the claim is for money and has been approved under
this section, the comptroller shall pay the claim. If a claim is
for personal property other than money and has been approved
under this section, the comptroller shall deliver the property to
the claimant unless the comptroller has sold the property. If the
property has been sold under Section 74.401, the comptroller
shall pay to the claimant the proceeds from the sale.
(c) All claims to which this section applies must 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
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;
(3) if the reported owner died intestate:
(A) the legal heirs of the owner as provided by Section 38,
Texas Probate Code; or
(B) the court-appointed administrator of the owner's estate;
(4) the legal heirs of the reported owner as established by 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; 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.
(e) Except as provided by Subsection (f), 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; or
(2) a person holding a power of attorney from the reported owner
or the owner's heirs.
(f) The comptroller may approve a claim for child support
arrearages owed by the reported owner of the property and
reflected in a child support lien notice that complies with
Section 157.313, Family Code. A claim under this subsection may
be submitted by the lienholder or the attorney general on behalf
of the lienholder.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 28, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.24, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1310, Sec. 85, eff.
Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
165, Sec. 1, eff. May 27, 2005.
Sec. 74.502. CLAIM FILED WITH HOLDER. (a) If a claim is filed
with a holder under this section and the holder determines in
good faith that the claim is valid, the holder may pay the amount
of the claim.
(b) The comptroller shall reimburse the holder for a valid claim
paid under this section.
(c) The request from a holder for reimbursement must be filed in
accordance with procedures and on forms prescribed by the
comptroller.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1993, 73rd Leg., ch. 851, Sec. 1, eff.
Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 28, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.25, eff.
Sept. 1, 1997.
Sec. 74.504. HEARING. (a) The comptroller may hold a hearing
and receive evidence concerning a claim filed under this
subchapter.
(b) If the comptroller considers that a hearing is necessary to
determine the validity of a claim, the comptroller shall sign the
statement of the findings and the decision on the claim. The
statement shall report the substance of the evidence heard and
the reasons for the decision. The statement is a public record.
(c) If the comptroller determines that a claim is valid, the
comptroller shall approve and sign the claim.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.07, eff.
Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 851, Sec. 3, eff. Sept.
1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 29, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.27, eff. Sept. 1,
1997.
Sec. 74.506. APPEAL. (a) A person aggrieved by the decision of
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 has not been decided before the 91st day after
the day on which it was filed, the claimant may appeal within the
60-day period beginning on the 91st day after the day of filing.
(c) An appeal under this section must be made by filing suit
against the state in a district court in Travis County, Texas.
The state's immunity from suit without consent is abolished with
respect to suits brought under this section.
(d) A court shall try an action filed under this section de novo
and shall apply the rules of practice of the court.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 30, eff.
Sept. 1, 1997.
Sec. 74.507. FEE FOR RECOVERY. (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. 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.
(b) The person who informs a potential claimant and by contract
or other written agreement is to receive a percentage of the
value of the property may not file or receive a form to claim on
behalf of a claimant.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff.
Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 36, Sec. 3.09, eff.
Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 31, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.29, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 4, eff. Sept.
1, 1999.
Sec. 74.508. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
PROCEDURE. (a) At any time after property has been paid or
delivered to the comptroller under this chapter, another state
may recover the property if:
(1) the property was subjected to custody by this state because
the records of the holder did not reflect the last known address
of the apparent owner when the property was presumed abandoned
under this chapter, and the other state establishes that the last
known address of the apparent owner or other person entitled to
the property was in that state and under the laws of that state
the property escheated to or was subject to a claim of
abandonment by that state;
(2) the last known address of the apparent owner or other person
entitled to the property, as reflected by the records of the
holder are in the other state and under the laws of that state
the property has escheated to or become subject to a claim of
abandonment by that state;
(3) the records of the holder were erroneous in that they did
not accurately reflect the actual owner of the property and the
last known address of the actual owner is in the other state and
under the laws of that state the property escheated to or was
subject to a claim of abandonment by that state;
(4) the property was subjected to custody by this state under
Subdivision (6) of Subsection (a) of Section 72.001 and under the
laws of the state of domicile of the holder the property has
escheated to or become subject to a claim of abandonment by that
state; or
(5) the property is the sum payable on a traveler's check, money
order, or other similar instrument that was subjected to custody
by this state under Subdivision (4) and the instrument was
purchased in the other state and under the laws of that state the
property escheated to or became subject to a claim of abandonment
by that state.
(b) The claim of another state to recover escheated or abandoned
property must be presented in a form prescribed by the
comptroller, who shall decide the claim within 90 days after it
is presented. The comptroller shall allow the claim if he
determines that the other state is entitled to the abandoned
property under Subsection (a).
Added by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1,
1987. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 31, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.30, eff.
Sept. 1, 1997.
Sec. 74.509. HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY. A
handling fee may be deducted from the amount of the claim payment
if the payment is at least $100.
Added by Acts 1993, 73rd Leg., ch. 36, Sec. 3.10, eff. Sept. 1,
1993. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 31, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.31, eff.
Sept. 1, 1997.
SUBCHAPTER G. UNCLAIMED MONEY
Sec. 74.601. UNCLAIMED MONEY. (a) The comptroller shall
maintain a record that documents unclaimed money received under
this chapter or any other statute requiring the delivery of
unclaimed property to the comptroller.
(b) The comptroller shall deposit to the credit of the general
revenue fund:
(1) all funds, including marketable securities, delivered to the
comptroller under this chapter or any other statute requiring the
delivery of unclaimed property to the comptroller;
(2) all proceeds from the sale of any property, including
marketable securities, under this chapter;
(3) all funds that have escheated to the state under Chapter 71,
except that funds relating to escheated real property shall be
deposited according to Section 71.202; and
(4) any income derived from investments of the unclaimed money.
(c) The comptroller shall keep a separate record and accounting
for delivered unclaimed property, other than money, before its
sale.
(d) Except as provided by Subsection (e), the comptroller shall
from time to time invest the amount of unclaimed money in
investments approved by law for the investment of state funds.
(e) The comptroller may from time to time 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 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.
(f) The comptroller shall keep a separate record and accounting
for securities delivered, sold, purchased, or exchanged and the
proceeds and earnings from the securities.
(g) If an owner does not assert a claim for unclaimed money and
the owner is reported to be the state or a state agency, the
comptroller may deposit the unclaimed money to the credit of the
general revenue fund. The comptroller may establish procedures
and adopt rules as necessary to implement this subsection.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.11, eff.
Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 32, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.32, eff.
Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
232, Sec. 4, eff. September 1, 2009.
Sec. 74.602. USE OF MONEY. Except as provided by Section
381.004, Local Government Code, the comptroller shall use the
unclaimed money received under this chapter or any other statute
requiring the delivery of unclaimed property to the comptroller
to pay the claims of persons or states establishing ownership of
property in the possession of the comptroller under this chapter
or under any other unclaimed property or escheat statute.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1991, 72nd Leg. ch. 304, Sec. 1.40, eff.
Jan. 1, 1992; Acts 1993, 73rd Leg., ch. 27, Sec. 3, eff. April
13, 1993; Acts 1993, 73rd Leg., ch. 36, Sec. 3.13, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 506, Sec. 1, eff. Sept. 1, 1995;
Acts 1997, 75th Leg., ch. 1037, Sec. 32, eff. Sept. 1, 1997; Acts
1997, 75th Leg., ch. 1423, Sec. 16.33, eff. Sept. 1, 1997.
Sec. 74.603. AUDIT; APPROPRIATION. The unclaimed money received
under this chapter or any other statute requiring the delivery of
unclaimed property to the comptroller is subject to audit by the
State Auditor and to appropriation by the legislature for
enforcing and administering this title.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 32, eff.
Sept. 1, 1997.
SUBCHAPTER H. ENFORCEMENT
Sec. 74.701. RULES. The comptroller may adopt rules necessary
to carry out this title.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 33, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.34, eff.
Sept. 1, 1997.
Sec. 74.702. EXAMINATION OF RECORDS. (a) To enforce this
chapter and to determine whether reports have been made as
required by this chapter, the comptroller, the attorney general,
or an authorized agent of either, at any reasonable time, may
examine the books and records of any holder.
(b) The comptroller, the attorney general, or an agent of either
may not make public any information obtained by an examination
made under this section and may not disclose that information
except in the course of a judicial proceeding, authorized by this
chapter, in which the state is a party or pursuant to an
agreement with another state allowing joint audits or the
exchange of information obtained under this section.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 21, eff.
Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 36, Sec. 3.12, eff.
Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 33, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.35, eff.
Sept. 1, 1997.
Sec. 74.703. ADDITIONAL PERSONNEL. (a) The comptroller and the
attorney general may employ, in the office of either official,
additional personnel necessary to enforce this title.
(b) The salary rate of additional personnel may not exceed the
rate paid to other state employees for similar services.
(c) The salaries of additional personnel shall be paid in
accordance with Section 74.602.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th leg., ch. 1037, Sec. 34, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.36, eff.
Sept. 1, 1997.
Sec. 74.704. ASSISTANCE IN ENFORCEMENT. If the comptroller or
the attorney general requests, the State Auditor, Banking
Commissioner of Texas, securities commissioner, commissioner of
insurance, savings and mortgage lending commissioner, Credit
Union Commission, Department of Public Safety of the State of
Texas, or any district or county attorney shall assist the
comptroller or attorney general in enforcing this title.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1997, 75th leg., ch. 1037, Sec. 35, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.37, eff.
Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 6.065, eff. September 1, 2007.
Sec. 74.705. INTEREST. A holder who fails to pay or deliver
property within the time prescribed by this chapter shall pay to
the comptroller interest, at an annual rate of 10 percent, on the
property from the date the property should have been paid or
delivered until the date the property is actually paid or
delivered.
(b) to (e) Deleted by Acts 1997, 75th Leg., ch. 1037, Sec. 33,
eff. Sept. 1, 1997.
(f) A person is exempt from payment of interest under Subsection
(a) if the person's action or omission is in connection with the
person's official duties as an officer or employee of a political
subdivision of this state.
(g) In this section, "person" does not include a local
governmental entity or an officer or employee of a local
governmental entity who is performing the officer's or employee's
official duties for the local governmental entity.
Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,
1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff.
Sept. 1, 1987; Acts 1997, 75th Leg., ch. 483, Sec. 1, eff. Sept.
1, 1997; Acts 1997, 75th Leg., ch. 888, Sec. 1, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1037, Sec. 35, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.38, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 62, Sec. 19.01(90), eff. Sept. 1,
1999.
Sec. 74.706. PENALTY. (a) A penalty equal to five percent of
the value of the property due shall be imposed on a holder who
fails to pay or deliver property within the time prescribed by
this chapter. If a holder fails to pay or deliver property before
the 31st day after the date the property is due, an additional
penalty equal to five percent of the value of the property due
shall be imposed.
(b) For purposes of Subsection (a), "holder" does not include a
local governmental entity or an officer or employee of a local
governmental entity who is performing the officer's or employee's
official duties for the local governmental entity.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 748, Sec. 1, eff.
Sept. 1, 1999.
Sec. 74.707. WAIVER OR ABATEMENT OF PENALTY OR INTEREST. (a)
The comptroller may waive penalty or interest imposed on
delinquent property if the comptroller determines that the holder
has made a good faith effort to comply with Chapters 72-75.
(b) The comptroller may provide for periods during which a
holder of delinquent property may report and remit the unclaimed
property without paying a penalty or interest.
(c) The comptroller may waive penalty and interest imposed on
delinquent property if the holder delivering the property was
required to deliver the property on or before November 1, 1997.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 137, Sec. 1, eff. May
16, 2001.
Sec. 74.708. PROPERTY HELD IN TRUST. A holder who on June 30
holds property presumed abandoned under Chapters 72-75 holds the
property in trust for the benefit of the state on behalf of the
missing owner and is liable to the state for the full value of
the property, plus any accrued interest and penalty. A holder is
not required by this section to segregate or establish trust
accounts for the property provided the property is timely
delivered to the comptroller in accordance with Section 74.301.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1,
1997.
Sec. 74.709. SUIT TO COMPEL DELIVERY OF PROPERTY AND CIVIL
PENALTIES. (a) On request of the comptroller, the attorney
general shall bring an action in district court, in the name of
the state, to compel a holder to deliver property or to file a
property report.
(b) Venue for a suit brought under this section is in Travis
County.
(c) The fact that a suit seeks enforcement of this section from
more than one holder is not grounds for an objection concerning
misjoinder of parties or causes of action.
(d) When introduced into evidence, the verified property report,
unless rebutted, is sufficient evidence that the property is
abandoned and subject to delivery under this chapter and for
entry of a judgment transferring custody of the property to the
comptroller.
(e) The attorney general, on behalf of the comptroller, may
recover reasonable attorney's fees from the holder in addition to
recovery of any unclaimed property accrued or a penalty or
interest due.
(f) In addition to a penalty or interest assessed on delinquent
property, a holder who fails to pay or deliver property or who
fails to file a property report within the time prescribed by
this chapter is subject to a civil penalty not to exceed $100 for
each day of violation.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1,
1997.
Sec. 74.710. CRIMINAL OFFENSE. (a) A holder commits an offense
if the holder wilfully violates this chapter, including:
(1) failing to file a report in accordance with this chapter;
(2) failing to pay or deliver property in accordance with this
chapter; or
(3) refusing to permit examination of records in accordance with
this chapter.
(b) An offense under this section is a Class B misdemeanor.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1,
1997.