HBA-NLM H.B. 1137 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1137
By: Thompson
Business & Industry
3/23/1999
Introduced



BACKGROUND AND PURPOSE 

The 75th Legislature passed an amendment to Section 74.705 (Interest),
Property Code, to exempt all local governmental officials from paying
interest to the comptroller on escheated funds.  Section 74.706 (Penalty),
Property Code, was added during that same session to include language which
provides a penalty with respect to such funds; however, the language was
included before the passage of the amendment and does not provide for the
exemption as added by the amendment.  H.B. 1137 specifies that a holder of
unclaimed money 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. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 74.706, Property Code, to specify that for the
purposes of Subsection (a), 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.  Subsection (a) provides a provision
relating to the imposition of a penalty  for the failure of a holder to pay
or deliver property as described by Chapter 74 (Report, Delivery, and
Claims Process), Property Code. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.