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


Office of House Bill AnalysisC.S.H.B. 3437
By: Isett
Business & Industry
4/22/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

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

Some individuals hire themselves out to find unclaimed property in exchange
for a percentage of all recovered property. C.S.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 four 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. Effective date: September 1, 1999.  Provides that Section
74.103(b), Property Code, as amended by this Act, applies to any record
required to be filed under that section before, on, or after the effective
date of this Act.  Makes application of Section 74.507, Property Code,
prospective. 

SECTION 4. Emergency clause.






 
COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1 of the substitute differs from SECTION 1 of the original by
providing that unclaimed property records must be kept for four years,
rather than three. 

C.S.H.B. 3437 differs from the original bill in SECTION 3 by conforming to
the Legislative Council format. C.S.H.B. 3437 redesignates SECTION 4 of the
original as part of SECTION 3 of the substitute. 

SECTION 4 of the substitute is redesignated from SECTION 5 of the original
bill.