H.B. No. 257
 
 
 
 
AN ACT
  relating to certain unclaimed property that is presumed abandoned.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 72.101(a), Property Code, is amended to
  read as follows:
         (a)  Except as provided by this section and Sections 72.1015,
  72.1016, 72.1017, and 72.102, personal property is presumed
  abandoned if, for longer than three years:
               (1)  the existence and location of the owner of the
  property is unknown to the holder of the property; and
               (2)  according to the knowledge and records of the
  holder of the property, a claim to the property has not been
  asserted or an act of ownership of the property has not been
  exercised.
         SECTION 2.  Subchapter B, Chapter 72, Property Code, is
  amended by adding Section 72.1017 to read as follows:
         Sec. 72.1017.  UTILITY DEPOSITS. (a)  In this section:
               (1)  "Utility" has the meaning assigned by Section
  183.001, Utilities Code.
               (2)  "Utility deposit" is a refundable money deposit a
  utility requires a user of the utility service to pay as a condition
  of initiating the service.
         (b)  Notwithstanding Section 73.102, a utility deposit is
  presumed abandoned on the latest of:
               (1)  18 months after the date a refund check for the
  utility deposit was payable to the owner of the deposit;
               (2)  18 months after the date the utility last received
  documented communication from the owner of the utility deposit; or
               (3)  18 months after the date the utility issued a
  refund check for the deposit payable to the owner of the deposit if,
  according to the knowledge and records of the utility or payor of
  the check, during that period, a claim to the check has not been
  asserted or an act of ownership by the payee has not been exercised.
         (c)  A utility deposit is not presumed abandoned for two
  years from the time the depositor provides documentation to the
  utility of being called to active military service in any branch of
  the United States armed forces during any part of the period
  described by Subsection (b).
         SECTION 3.  Section 72.102(c), Property Code, is amended to
  read as follows:
         (c)  A money order to which Subsection (a) applies is
  presumed to be abandoned on the latest of:
               (1)  the third [seventh] anniversary of the date on
  which the money order was issued;
               (2)  the third [seventh] anniversary of the date on
  which the issuer of the money order last received from the owner of
  the money order communication concerning the money order; or
               (3)  the third [seventh] anniversary of the date of the
  last writing, on file with the issuer, that indicates the owner's
  interest in the money order.
         SECTION 4.  Section 72.103, Property Code, is amended to
  read as follows:
         Sec. 72.103.  PRESERVATION OF PROPERTY. Notwithstanding any
  other provision of this title except a provision of this section or
  Section 72.1016 relating to a money order or a stored value card, a
  holder of abandoned property shall preserve the property and may
  not at any time, by any procedure, including a deduction for
  service, maintenance, or other charge, transfer or convert to the
  profits or assets of the holder or otherwise reduce the value of the
  property.  For purposes of this section, value is determined as of
  the date of the last transaction or contact concerning the
  property, except that in the case of a money order, value is
  determined as of the date the property is presumed abandoned under
  Section 72.102(c).  If a holder imposes service, maintenance, or
  other charges on a money order prior to the time of presumed
  abandonment, such charges may not exceed the amount of $1 [50 cents]
  per month for each month the money order remains uncashed prior to
  the month in which the money order is presumed abandoned.
         SECTION 5.  Section 73.101, Property Code, is amended by
  amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  An account or safe deposit box is presumed abandoned if:
               (1)  except as provided by Subsection (c), the account
  or safe deposit box has been inactive for at least five years as
  determined under Subsection (b);
               (2)  the location of the depositor of the account or
  owner of the safe deposit box is unknown to the depository; and
               (3)  the amount of the account or the contents of the
  box have not been delivered to the comptroller in accordance with
  Chapter 74.
         (c)  If the account is a checking or savings account or is a
  matured certificate of deposit, the account is presumed abandoned
  if the account has been inactive for at least three years as
  determined under Subsection (b)(1).
         SECTION 6.  Section 74.101(a), Property Code, is amended to
  read as follows:
         (a)  Each holder who on March 1 [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 July [November] 1. The
  comptroller may require the report to be in a particular format,
  including a format that can be read by a computer.
         SECTION 7.  Section 74.1011(a), Property Code, is amended to
  read as follows:
         (a)  Except as provided by Subsection (b), a holder who on
  March 1 [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 May
  [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 July [November] 1 if the property is
  not claimed.
         SECTION 8.  Sections 74.301(a) and (c), Property Code, are
  amended to read as follows:
         (a)  Except as provided by Subsection (c), each holder who on
  March 1 [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 July [November] 1 accompanied by the
  report required to be filed under Section 74.101.
         (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 July
  [November] 1 of the following year.
         SECTION 9.  Section 74.601(e), Property Code, is amended to
  read as follows:
         (e)  The comptroller on receipt or from time to time 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.
         SECTION 10.  Section 74.708, Property Code, is amended to
  read as follows:
         Sec. 74.708.  PROPERTY HELD IN TRUST. A holder who on March
  1 [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.
         SECTION 11.  A charge imposed on a money order under Section
  72.103, Property Code, by a holder before the effective date of this
  Act is governed by the law applicable to the charge immediately
  before the effective date of this Act, and the holder may retain the
  charge.
         SECTION 12.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2011.
         (b)  Sections 74.101(a), 74.1011(a), 74.301(a) and (c), and
  74.708, Property Code, as amended by this Act, take effect January
  1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 257 was passed by the House on May 4,
  2011, by the following vote:  Yeas 139, Nays 3, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 257 on May 23, 2011, by the following vote:  Yeas 143, Nays 0, 2
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 257 was passed by the Senate, with
  amendments, on May 20, 2011, by the following vote:  Yeas 31, Nays
  0.
 
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor