82R12290 DAK-F
	By: Pena	H.B. No. 2481

	A BILL TO BE ENTITLED
	AN ACT
	relating to the payment and distribution of consumer assistance
	funds in an action by the attorney general.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Title 3, Civil Practice and Remedies Code, is
	amended by adding Chapter 67 to read as follows:
	CHAPTER 67. CONSUMER ASSISTANCE FUNDS IN ACTION BY ATTORNEY
	GENERAL
	Sec. 67.001.  CONSUMER ASSISTANCE FUNDS. In an action
	brought by the attorney general arising from conduct that violates
	a consumer protection, public health, or general welfare law, the
	court may enter a judgment or order for payment of restitution to be
	distributed by the attorney general as provided by Section 67.003
	if the court determines that, based on the facts and circumstances
	of the case:
	(1)  it is impossible or impracticable to identify
	injured parties;
	(2)  it is impossible or impracticable to determine the
	degree to which each claimant was injured and entitled to recover;
	or
	(3)  the cost of administering a claim procedure is
	prohibitive due to a low probability of recovery for each claimant.
	Sec. 67.002.  CREATION OF CONSUMER ASSISTANCE ACCOUNT. (a)
	The consumer assistance account is created as a restitution account
	in the departmental suspense account in the state treasury. The
	account consists of consumer assistance funds paid under a court
	judgment or order as provided by Section 67.001. Civil penalties,
	costs, or attorney's fees may not be deposited in the account.
	Funds in the account are held in trust for the benefit of charitable
	entities as provided by Section 67.003. The attorney general shall
	administer the account.
	(b)  The attorney general shall retain funds that are
	designated as consumer assistance funds under a court judgment or
	order and shall deposit the funds in the consumer assistance
	account.
	Sec. 67.003.  USE OF CONSUMER ASSISTANCE FUNDS. (a)  In this
	section, "charitable entity" has the meaning assigned by Section
	123.001, Property Code.
	(b)  The attorney general shall distribute restitution paid
	under a court judgment or order as provided by this chapter to one
	or more charitable entities to fund programs that provide
	assistance to consumers. The distribution must be in accordance
	with the court judgment or order. The attorney general shall
	notify:
	(1)  the Legislative Budget Board before the
	distribution; and
	(2)  the court when the distribution is complete.
	Sec. 67.004.  RULEMAKING AUTHORITY. The attorney general
	shall adopt rules as necessary to implement this chapter.  To the
	extent practicable, the rules must give priority to programs that
	provide basic civil legal services in consumer law to persons of low
	and moderate income.
	Sec. 67.005.  MEMORANDUM OF UNDERSTANDING.  The attorney
	general shall enter into a memorandum of understanding with the
	supreme court for the administration and monitoring of consumer
	legal assistance activities.
	Sec. 67.006.  COMMON LAW CY PRES. The provisions of this
	chapter do not diminish the common law authority or other statutory
	authority of the attorney general to seek and obtain cy pres
	distribution from a court.
	SECTION 2.  The change in law made by this Act applies to
	funds paid under a court judgment as provided by Section 67.001,
	Civil Practice and Remedies Code, as added by this Act, that are
	held in the attorney general's departmental suspense account on or
	after the effective date of this Act, notwithstanding the fact that
	the funds were paid into that account before the effective date of
	this Act.
	SECTION 3.  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, 2011.