HBA-EVB H.B. 3437 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3437
By: Isett
Business & Industry
4/7/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, Texas businesses must keep unclaimed property records for 10
years from the date on which the property is reportable. H.B. 3437 amends
Section 74.103(b) (Retention of Records), Property Code, to reduce the
record-keeping period to 3 years. 

Some individuals hire themselves out to find unclaimed property in exchange
for a percentage of all recovered property. H.B. 3437 amends Section 74.507
(Fee for Recovery), Property Code, to prohibit such individuals from
receiving a percentage of the value of any property, but does authorize
such individuals to contract to receive an amount specifically stated in
the contract for the recovery of property. 

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 74.103(b), Property Code, as follows:

(b) Decreases from 10 years to 3 years, the number of years that the record
must be kept from the date on which the property is reportable, regardless
of whether the property is reported in the aggregate under Section
74.101(Property Report), Property Code. 

SECTION 2. Amends Section 74.507, Property Code, as follows:

Sec. 74.507. FEE FOR RECOVERY. (a) Prohibits 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, from
contracting to receive from the claimant for services a percentage of the
value of any property recovered. Existing law prohibits such a person from
contracting for or receiving from the claimant an amount exceeding 10
percent of the value of the property recovered. Authorizes a person to
contract to receive an amount specifically stated in the contract for
recovery of property. 

(b) Prohibits the person who informs a potential claimant and by contract
or other written agreement is to receive a specified fee, rather than a
percentage of the value of the property, from filing or receiving a form to
claim or act on behalf of a claimant. 

SECTION 3. (a) Provides that Section 74.103(b), Property Code, as amended
by this Act, applies to a record required to be kept under that section
regardless of the date on which the property was reportable. 

(b) Makes Section 74.507, Property Code, as amended by this Act,
prospective to a contract concerning fees for the recovery of abandoned
personal property entered into on or after the effective date of this Act. 

SECTION 4. Effective date: September 1, 1999.

SECTION 5. Emergency clause.