Bill Text: TX HB77 | 2011 | 82nd Legislature 1st Special | Introduced

Texas House Bill 77 (Prior Session Legislation)

Introduced

Bill Title: Relating to claims for and distribution of unclaimed land grant mineral proceeds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-06-09 - Referred to Business & Industry [HB77 Detail]

Download: Texas-2011-HB77-Introduced.html

	82S10639 PMO-F

	By: Guillen	H.B. No. 77



	A BILL TO BE ENTITLED
	AN ACT
	relating to claims for and distribution of unclaimed land grant
	mineral proceeds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter E, Chapter 74, Property Code, is
	amended by adding Section 74.405 to read as follows:
	Sec. 74.405. UNCLAIMED LAND GRANT MINERAL PROCEEDS. (a) In
	this section, "unclaimed land grant mineral proceeds" are mineral
	proceeds governed by Subchapter C, Chapter 75.
	(b) Unclaimed land grant mineral proceeds delivered to the
	comptroller under this chapter may be distributed only under
	Subchapter C, Chapter 75.
	SECTION 2. Section 74.507, Property Code, is amended by
	amending Subsection (a) and adding Subsection (c) to read as
	follows:
	(a) Except as provided by Section 75.155, 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.
	(c) Notwithstanding Subsection (b), a person who informs a
	potential claimant of a claim under Subchapter C, Chapter 75, may
	file or receive a form to claim on behalf of the claimant as
	provided by contract or other written agreement between the
	potential claimant and the person.
	SECTION 3. Section 74.601, Property Code, is amended by
	amending Subsection (b) and adding Subsection (h) to read as
	follows:
	(b) Except as provided by Subsection (h), the [~~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.
	(h) Not later than the 90th day after the end of each fiscal
	year, the comptroller shall deposit unclaimed land grant mineral
	proceeds delivered under this chapter to the credit of the
	unclaimed land grant mineral proceeds revenue account in the
	general revenue fund. Money in the unclaimed land grant mineral
	proceeds revenue account may be distributed only as provided by
	Subchapter C, Chapter 75.
	SECTION 4. Section 75.001(a), Property Code, is amended by
	adding Subdivisions (4), (5), and (6) to read as follows:
	(4) "Original land grant" means the initial conveyance
	of real property in this state, as evidenced by a certificate,
	title, or patent, from:
	(A) the Crown of Spain;
	(B) Mexico;
	(C) the Republic of Texas; or
	(D) this state.
	(5) "Net mineral estate" means the percentage portion
	of mineral proceeds derived from an original land grant owned by a
	descendent of an original grantee.
	(6) "Third-party data provider" means a data provider
	approved under rules adopted by the comptroller.
	SECTION 5. Section 75.001(c), Property Code, is amended to
	read as follows:
	(c) Except as provided by Subchapter C, a [A] holder of
	property presumed abandoned under this chapter is subject to the
	procedures of Chapter 74.
	SECTION 6. Chapter 75, Property Code, is amended by adding
	Subchapter C to read as follows:
	SUBCHAPTER C. UNCLAIMED LAND GRANT MINERAL PROCEEDS
	Sec. 75.151. APPLICABILITY. This subchapter applies to all
	mineral proceeds that are:
	(1) derived directly or indirectly from real property
	located in this state regardless of the location of the holder's
	formation, organization, incorporation, or domicile;
	(2) unclaimed and presumed abandoned under this
	chapter or Chapter 72, 73, or 74;
	(3) held by a holder or the comptroller; and
	(4) reportable to the comptroller under Subchapter B,
	Chapter 74.
	Sec. 75.152. NET MINERAL ESTATE CALCULATIONS. (a) In
	accordance with rules adopted by the comptroller, a third-party
	data provider may:
	(1) determine the net mineral estate of each original
	land grant based on evidence provided by one or more land surveyors
	registered, licensed, or certified under Chapter 1071, Occupations
	Code; and
	(2) based on records of the Railroad Commission of
	Texas, determine the total amount of mineral production for each
	original land grant having a net mineral estate from January 1,
	1985, until the date the determination is made.
	(b) To determine the percentage that each original land
	grant constitutes of the whole of the original land grants, the
	result of Subsection (a)(1) must be multiplied by the result of
	Subsection (a)(2) for each original land grant.
	(c) The comptroller shall adopt rules for purposes of
	Subsection (a).
	Sec. 75.153. CLAIM AGAINST UNCLAIMED LAND GRANT MINERAL
	PROCEEDS. (a) A person may submit a claim for the person's net
	mineral estate against unclaimed land grant mineral proceeds held
	by the comptroller in the unclaimed land grant mineral proceeds
	revenue account by filing with the comptroller a form adopted by
	comptroller rule. In addition to the form, a person must submit:
	(1) an affidavit stating that, to the best of the
	claimant's information, knowledge, and belief:
	(A) the claimant does not receive and has never
	received mineral proceeds from the original land grant; and
	(B) the claimant's ancestors do not or did not
	receive mineral proceeds from the original land grant; and
	(2) a copy of a final, unappealable judgment
	establishing:
	(A) the claimant's heirship as a descendent of
	the grantee of an original land grant; and
	(B) the extent of the claimant's interest in the
	mineral proceeds of the land grant.
	(b) A claimant may submit a claim under any line of
	descendency established in a final, unappealable judgment.
	(c) The comptroller shall approve a claim that complies with
	Subsection (a).
	Sec. 75.154. MAXIMUM CLAIM CALCULATION. Beginning on
	January 1, 2012, to determine the maximum amount for which a claim
	may be made by a claimant for an original land grant, the percentage
	figure under Section 75.152(b) for each original land grant having
	a net mineral estate must be multiplied by the total amount of money
	in the unclaimed land grant mineral proceeds revenue account under
	Section 74.601(h).
	Sec. 75.155. ATTORNEY'S FEES. (a) An attorney licensed in
	this state may represent a claimant under this subchapter or in a
	judicial or administrative proceeding related to this subchapter.
	(b) An attorney who represents a claimant under this
	subchapter or in a judicial or administrative proceeding related to
	this subchapter may contract with the claimant for attorney's fees
	on an hourly or contingency basis or otherwise, as prescribed by
	Rule 1.04, Texas Disciplinary Rules of Professional Conduct.
	Sec. 75.156. EXPENDITURES. (a) The expenses of the
	comptroller in executing this subchapter may be paid only from the
	unclaimed land grant mineral proceeds revenue account described by
	Section 74.601(h).
	(b) The comptroller shall adopt rules as necessary to
	administer this section.
	SECTION 7. (a) Not later than November 1, 2011, the
	comptroller shall adopt rules as required by Sections 75.152 and
	75.156, Property Code, as added by this Act.
	(b) Not later than the 30th day after the effective date of
	this Act, the comptroller shall transfer to the unclaimed land
	grant mineral proceeds revenue account created under Section
	74.601, Property Code, as amended by this Act, all unclaimed land
	grant mineral proceeds delivered to and held by the comptroller
	under Chapter 74, Property Code.
	SECTION 8. (a) The change in law made by Section 75.155,
	Property Code, as added by this Act, applies to a contract executed
	before, on, or after the effective date of this Act.
	(b) The changes in law made by Subchapter C, Chapter 75,
	Property Code, as added by this Act, apply only to a claim filed on
	or after the effective date of this Act. A claim filed before the
	effective date of this Act is covered by the law in effect when the
	claim was filed, and the former law is continued in effect for that
	purpose.
	SECTION 9. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect on the 91st day after the last day of the
	legislative session.