Interpleader; funds held in escrow. (HB577)

Introduced By

Del. Roxann Robinson (R-Chesterfield)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Interpleader; earnest money deposits. Allows the general district court, in an interpleader case involving an earnest money deposit held in escrow by a real estate broker, to escheat the funds to the Commonwealth to be credited to the Virginia Housing Trust Fund upon default of one or more of the stakeholders. Read the Bill »

Status

03/06/2016: Passed the General Assembly

History

DateAction
01/11/2016Committee
01/11/2016Prefiled and ordered printed; offered 01/13/16 16100947D
01/11/2016Referred to Committee for Courts of Justice
01/14/2016Assigned to sub: Subcommittee Civil Law
01/14/2016Assigned App. sub: Subcommittee Civil Law
01/14/2016Assigned Courts sub:
01/21/2016Impact statement from DPB (HB577)
01/25/2016Subcommittee recommends reporting with amendment(s) (10-Y 0-N)
01/27/2016Reported from Courts of Justice with amendment (22-Y 0-N) (see vote tally)
01/29/2016Read first time
02/01/2016Read second time
02/01/2016Committee amendment agreed to
02/01/2016Engrossed by House as amended HB577E
02/01/2016Printed as engrossed 16100947D-E
02/01/2016Impact statement from DPB (HB577E)
02/02/2016Read third time and passed House BLOCK VOTE (98-Y 0-N)
02/02/2016VOTE: BLOCK VOTE PASSAGE (98-Y 0-N) (see vote tally)
02/03/2016Constitutional reading dispensed
02/03/2016Referred to Committee for Courts of Justice
02/24/2016Reported from Courts of Justice with substitute (9-Y 0-N) (see vote tally)
02/24/2016Committee substitute printed 16105777D-S1
02/25/2016Impact statement from DPB (HB577S1)
02/26/2016Constitutional reading dispensed (39-Y 0-N) (see vote tally)
02/29/2016Read third time
02/29/2016Reading of substitute waived
02/29/2016Committee substitute agreed to 16105777D-S1
02/29/2016Engrossed by Senate - committee substitute HB577S1
02/29/2016Reconsideration of Senate passage agreed to by Senate (38-Y 0-N) (see vote tally)
02/29/2016Passed Senate with substitute (38-Y 0-N) (see vote tally)
03/01/2016Placed on Calendar
03/02/2016Senate substitute agreed to by House 16105777D-S1 (99-Y 0-N)
03/02/2016VOTE: ADOPTION (99-Y 0-N) (see vote tally)
03/03/2016Enrolled
03/03/2016Bill text as passed House and Senate (HB577ER)
03/03/2016Impact statement from DPB (HB577ER)
03/03/2016Signed by Speaker
03/06/2016Signed by President
03/07/2016Enrolled Bill communicated to Governor on 3/7/2016
03/07/2016G Governor's Action Deadline Midnight, Sunday, April 10, 2016
04/08/2016Governor's recommendation received by House
04/20/2016Placed on Calendar
04/20/2016House rejected Governor's recommendation (29-Y 70-N 1-A)
04/20/2016VOTE: REJECTED (29-Y 70-N 1-A)
04/20/2016Communicated to Governor

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 2 clips in all, totaling 3 minutes.

Transcript

This is a transcript of the video clips in which this bill is discussed.

TO ACCEPT THE SENATE SUBSTITUTE. WHICH JUST LEFT THIS BODY HERE THERE ARE NO TIME FRAMES INVOLVED AND FELT LIKE THERE NEEDED TO BE SO THEY ADDED THAT. BEFORE THE MONEY COULD BE TRANSFERRED IT WOULD BE A PERIOD OF A YEAR. SHALL THE SENATE SUBSTITUTE BE AGREED TO? CLERK WILL CLOSE THE ROLL. AYE, 99, NO, 0.
BILL 577 WAS REQUESTED BY THE VIRGINIA ASSOCIATION OF REALTORS. SESSION WE WORKED WITH THE DURING THE GENERAL ASSEMBLY GOVERNOR'S OFFICE AND THE ATTORNEY GENERAL'S OFFICE TO ADDRESS THE QUESTION OF WHETHER THESE FUNDS WOULD BE REQUIRED BY THE VIRGINIA CONSTITUTION TO GO TO THE LITERARY FUND OR WHETHER THE FUND IS TO BE PAID TO THE HOUSING TRUST FUND. WE BELIEVE THE PROCESS IS COMPLETELY DIFFERENT FROM THE EXISTING PROCESS FOR SHEATHING FUNDS TO THE LITERARY FUND, THEREFORE THERE WOULD BE NO CONSTITUTIONAL THANK YOU. HOUSE BILL 577 PASSED THE HOUSE AND SENATE UNANIMOUSLY AND WE THOUGHT THE CONSTITUTIONAL CONCERNS HAD BEEN ADDRESSED IN THE LANGUAGE SAYING IT'S ADOPTED IN THE SENATE SUBSTITUTE. SINCE THE END OF THE SESSION THE ATTORNEY GENERAL HAS CONCLUDED THAT THE FUNDS ARE REQUIRED TO GO TO LITERARY FUND AND THE LANGUAGE AUTHORIZING A COURT TO PAY THESE ABANDONED EARNEST MONEY DEPOSITS TO THE HOUSING TRUST FUND IS THEREFORE UNCONSTITUTIONAL. IF THE FUNDS ARE REQUIRED TO GO TO THE LITERARY FUND, THERE IS NO NEED FOR THE DETAILED PROCESS OF FILING A COURT ACTION FOR INTERPLEADER SINCE SHEATHMENT DOES NOT REQUIRE FILING OF ANY COURT ACTION. HOUSE BILL 577 WOULD BE IN CONFLICT WITH EXISTING NONJUDICIAL SHEETMENT PROCESS. I WILL ASK FOR A MEETING WITH THE GOVERNOR'S OFFICE AND ATTORNEY GENERAL'S OFFICE TO DISCUSS THIS LEGISLATION OVER THE NEXT 30 DAYS. IF THE ATTORNEY GENERAL'S OFFICE CONTINUES TO EXPRESS CONSTITUTIONAL CONCERNS, I WILL BE ASKING THE GOVERNOR TO VETO HOUSE BILL 577, BUT I WOULD AT LEAST LIKE THE CHANCE TO HAVE THAT DISCUSSION. WITH THIS EXPLANATION, I MAKE THE MOTION TO REJECT THE GOVERNOR'S AMENDMENT.

Del. Bill Howell (R-Fredericksburg): THE GENTLEMAN FROM FAIRFAX, MR. KEAM.

Del. Mark Keam (D-Vienna): THANK YOU MR. SPEAKER, I WOULD LIKE TO SPEAK TO THE GOVERNOR'S RECOMMENDATION.

Del. Bill Howell (R-Fredericksburg): THE GENTLEMAN HAS THE FLOOR.

Del. Mark Keam (D-Vienna): THANK YOU. WELL, I AGREE WITH THE DELEGATE WHO JUST SPOKE AND I CERTAINLY SUPPORTED THE BILL AND I THINK IT'S A GREAT IDEA FOR THE BILL BUT GENERAL FORTY GIVEN THAT WE'VE NOT BEEN ON NOTICE THAT THIS LANGUAGE DOES IN FACT VIOLATE THE PLANNED READING OF SECTION EIGHT, ARTICLE #, SECTION EIGHT OF THE CONSTITUTION I THINK IT WOULD BE WISER TO ACCEPT THE CHANNEL AND THEN HOPEFULLY GIVE A CHANCE FOR THE STAKEHOLDERS TO WORK WITH THE GOVERNOR AND THE ATTORNEY GENERAL. I ASK THE GOVERNOR'S RECOMMENDATIONS BE ACCEPTED.

[Unknown]: SHALL THE HOUSE AGREE TO THE GOVERNOR'S RECOMMENDATIONS?

Del. Bill Howell (R-Fredericksburg): THE CLERK WILL CLOSE THE ROLL.

[Unknown]: AYES 29, NOS 30. AYES 29, NOS -- SORRY, AYES 29, NOS 70, I APOLOGIZE. AYES 29, NOS 7O. THE RECOMMENDATIONS ARE NOT

Duplicate Bills

The following bills are identical to this one: SB509.