TITLE: Relating to the delivery of unclaimed property to certain urban scholarship funds; authorizing administrative penalties.

SUMMARY: Relating to the delivery of unclaimed property to certain urban scholarship funds; authorizing administrative penalties.

FULL TEXT:
AN ACT relating to the delivery of unclaimed property to certain urban scholarship funds; authorizing administrative penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 74.3012, Property Code, is amended by amending Subsections (a) and (b) and adding Subsection (h) to read as follows: (a) Notwithstanding and in addition to any other provision of this chapter or other law, a local exchange company shall [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 shall [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. (h) A local exchange company is subject to a penalty under Section 74.706(a-1) for a violation of this section. SECTION 2. Section 74.706, Property Code, is amended by adding Subsection (a-1) and amending Subsection (b) to read as follows: (a-1) If a holder fails to deliver property to a scholarship fund for urban students as required by Section 74.3012 on or before the latest date for delivery of property under Section 74.301(a), a penalty equal to 10 percent of the value of the property due shall be imposed on the holder for each day on and after that date on which the holder fails to deliver the property. (b) For purposes of Subsections [Subsection] (a) and (a-1),"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. SECTION 3. 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.