CHAPTER 74. REPORT, DELIVERY, AND CLAIMS PROCESS

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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(b) Repealed by Acts 1999, 76th Leg., ch. 1208, Sec. 5, eff.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.

(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.

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."

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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;

(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.

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.

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.

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.

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.

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.

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.

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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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