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.