BILL ANALYSIS

 

 

 

C.S.H.B. 724

By: Guillen

Land & Resource Management

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Oil and gas production companies send royalty payments to the comptroller of public accounts when they are unable to find the rightful owners to land grant mineral proceeds. Although there has been a procedure for rightful heirs to claim the proceeds, interested parties contend that the procedure has proven insufficient because the comptroller lacks the data needed to distribute the money. As a result, the comptroller continues to hold this money.  C.S.H.B. 724 seeks to remedy this situation by creating a commission to study unclaimed land grant mineral proceeds in order to determine, among other information, efficient and effective procedures under which the state may be required to determine the owners of the proceeds, notify the owners of the proceeds, and distribute such proceeds to the rightful owners.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

C.S.H.B. 724 creates the 17-member Unclaimed Mineral Proceeds Commission to study and provide recommendations to the legislature regarding the distribution of mineral proceeds that are derived from an original land grant, owned by a descendant of an original grantee, unclaimed and presumed abandoned, and delivered to the comptroller of public accounts. The bill defines "original land grant" as the initial conveyance of real property in Texas, as evidenced by a certificate, title, or patent from the Crown of Spain, Mexico, the Republic of Texas, or this state. The bill requires the commission to determine the amount of unclaimed original land grant mineral proceeds delivered to the comptroller that remain unclaimed on December 1, 2014, and to determine and recommend efficient and effective procedures under which the state may be required to determine the owners of the proceeds, notify the owners of the proceeds, and distribute the proceeds to the owners. The bill requires the commission to include that information in a final report provided to the governor, lieutenant governor, and speaker of the house of representatives not later than January 1, 2015, and requires the final report to include proposed legislation necessary to implement the recommendations made in the final report, any administrative recommendations proposed by the commission, and a complete explanation of each of the commission's recommendations.

 

C.S.H.B. 724 provides for the composition of the Unclaimed Mineral Proceeds Commission, including the state historian or the state historian's designee and members appointed by the governor, the lieutenant governor, the speaker of the house of representatives, the commissioner of the General Land Office, the comptroller of public accounts, and the executive director of the Texas Historical Commission.  The bill also provides for the administration and meetings of the Unclaimed Mineral Proceeds Commission, including the designation of a presiding officer and assistance from other state entities, and exempts the commission from statutory provisions governing state agency advisory committees.  The bill specifies that a commission member is not entitled to reimbursement of expenses or compensation.  The bill abolishes the commission on June 1, 2015, and provides for the expiration of the bill's provisions on that date.

 

EFFECTIVE DATE

 

September 1, 2013.

 

COMPARISON OF ORIGINAL AND SUBSTITUTE

 

While C.S.H.B. 724 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that includes the substantial differences between the introduced and committee substitute versions of the bill.

 

INTRODUCED

HOUSE COMMITTEE SUBSTITUTE

SECTION 1.  DEFINITION.

SECTION 1. Same as introduced version.

 

 

SECTION 2.  UNCLAIMED MINERAL PROCEEDS COMMISSION.  (a) The Unclaimed Mineral Proceeds Commission is created to study and provide recommendations to the legislature regarding the distribution of mineral proceeds that are:

(1)  derived from an original land grant;

(2)  owned by a descendant of an original grantee;

(3)  unclaimed and presumed abandoned under Chapter 72, 73, 74, or 75, Property Code; and

(4)  delivered to the comptroller under Chapter 74, Property Code.

(b)  The commission shall determine:

(1)  the amount of unclaimed original land grant mineral proceeds delivered to the comptroller that remain unclaimed on December 1, 2014; and

(2)  efficient and effective procedures under which the state may be required to:

(A)  determine the owners of the proceeds;

(B)  notify the owners of the proceeds; and

(C)  distribute the proceeds to the owners.

(c)  The commission consists of 15 members as follows:

(1)  three members appointed by the governor to represent the interests of land grant heirs

(2)  two members appointed by the governor with expertise in property law

(3) two members appointed by the lieutenant governor;

(4)   two members appointed by the speaker of the house of representatives

(5) two members appointed by the commissioner of the Texas General Land Office

(6) two members appointed by the comptroller

(7) two members appointed by the executive director of the Texas Historical Commission

 

 

(d)  When making initial appointments under Subsection (c)(1), the governor shall designate one of the governor's appointees as presiding officer of the commission.

(e)  The governor, lieutenant governor, and speaker of the house of representatives shall appoint members to the commission not later than December 31, 2013.

(f)  The commission shall meet not later than the 30th day after the date initial appointments are made under Subsection (c) and shall meet regularly as necessary at the call of the presiding officer.

(g)  A commission member is not entitled to reimbursement of expenses or to compensation.

(h)  On the commission's request, the comptroller or any other state agency, department, or office shall provide any assistance the commission needs to perform the commission's duties.

 

SECTION 2.  UNCLAIMED MINERAL PROCEEDS COMMISSION.  (a) The Unclaimed Mineral Proceeds Commission is created to study and provide recommendations to the legislature regarding the distribution of mineral proceeds that are:

(1)  derived from an original land grant;

(2)  owned by a descendant of an original grantee;

(3)  unclaimed and presumed abandoned under Chapter 72, 73, 74, or 75, Property Code; and

(4)  delivered to the comptroller under Chapter 74, Property Code.

(b)  The commission shall determine:

(1)  the amount of unclaimed original land grant mineral proceeds delivered to the comptroller that remain unclaimed on December 1, 2014; and

(2)  efficient and effective procedures under which the state may be required to:

(A)  determine the owners of the proceeds;

(B)  notify the owners of the proceeds; and

(C)  distribute the proceeds to the owners.

(c)  The commission consists of 17 members as follows:

(1)  three members who represent the interests of land grant heirs, appointed by the governor;

(2)  three members who have expertise in property law, appointed by the governor;

(3) two members appointed by the lieutenant governor;

(4)    two members appointed by the speaker of the house of representatives;

(5)  two members appointed by the commissioner of the General Land Office;

(6) two members appointed by the comptroller;

(7)  two members appointed by the executive director of the Texas Historical Commission; and

(8)  the state historian or the state historian's designee.

(d)  When making initial appointments under Subsection (c), the governor shall designate one of the governor's appointees as presiding officer of the commission.

(e)  The governor, lieutenant governor, and speaker of the house of representatives shall appoint members to the commission not later than December 31, 2013.

(f)  The commission shall meet not later than the 30th day after the date initial appointments are made under Subsection (c) and shall meet regularly as necessary at the call of the presiding officer.

(g)  A commission member is not entitled to reimbursement of expenses or to compensation.

(h)  On the commission's request, the comptroller or any other state agency, department, or office shall provide any assistance the commission needs to perform the commission's duties.

 

SECTION 3.  REPORT ON UNCLAIMED MINERAL PROCEEDS.

 

 

SECTION 3. Same as introduced version.

 

 

SECTION 4.  OTHER LAW.

 

SECTION 4. Same as introduced version.

 

 

SECTION 5.  EXPIRATION DATE. This Act expires and the Unclaimed Mineral Proceeds Commission is abolished on June 1, 2015.

 

SECTION 5. Same as introduced version.

 

 

SECTION 6.  EFFECTIVE DATE.  This Act takes effect September 1, 2013.

 

SECTION 6. Same as introduced version.