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Law for the Layman |
         
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Welcome to Law for the Layman
Just click on INDEX to take you to a complete listing of all articles appearing on this page "Law for the Layman" is another public service offered by Klee's Kaleidoscope. All articles published herein are written by licensed attorneys. "Law for the Layman" is intended to educate readers generally as to their legal rights and obligations under the law and to offer the public a better understanding as to how the law affects their everyday lives. An Index to all Law for the Layman articles posted to this website for the last year is published at the end of this page. CAVEAT: Legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although every effort is made to assure the information contained herein is accurate and useful, it is recommended one consult an attorney if they want professional assurance that the information, and one's interpretation of it, is appropriate to their particular situation. I have invited several attorneys to contribute articles for publication on this website. Any others interested in contributing articles for website publication consistent with the "Law for the Layman" objectives should e-mail them to Klee's Kaleidoscope
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By Greg Abbott Five Warning Signs of a Scam (November 3, 2008) Texans who know their neighbors and are active in their communities help protect our state and prevent crime. From neighborhood watch volunteers to residents reporting suspicious conduct to authorities, vigilant citizens help prevent crime every day. As we kick off National Crime Prevention Month, Texans can help support community crime prevention efforts by learning to recognize and thwart five familiar criminal schemes. Among the most common avenues used to defraud unsuspecting Texans involves unsolicited telephone calls or spam e-mails. As technology evolves and online communication expands, it is becoming more difficult to identify whether a solicitation is from a legitimate source. Con artists often make up very reasonable-sounding and persuasive stories, or they may pretend to be government officials or other helpful professionals. When callers or e-mailers claim to represent a trusted company or pitch an interesting offer, Texans should hang up and call the company directly using a number that appears in the local telephone directory. This simple precaution ensures that consumers are talking to an actual company representative. Efforts to collect Texans’ personal information should always signal a red flag. Every Texan should safeguard their personal information, including bank account numbers and Social Security numbers. Consumers should never disclose sensitive information over the telephone or through e-mail unless they have independently verified who is asking for it and how that person or organization will use the information. Texans also should remember to shred or otherwise properly discard financial statements and other sensitive documents to protect themselves from identity theft. The third warning sign of a scam is one which cannot be repeated often enough: As tempting as it sounds, Texans can rest assured they did NOT win the Spanish lottery, the Canadian lottery or any other foreign lottery. Sweepstakes and lottery scams continue to snare victims, particularly senior Texans. These offers are merely bait – dangled to hook unsuspecting victims. Texans who receive these solicitations should stop, delete the e-mails, throw away the letters and hang up the telephone. Texans also should be skeptical of demands for up front, cash payments in exchange for a loan or prize. Under Texas law, it is illegal to require payment before funding a loan or paying out a sweepstakes prize. Texans should immediately back off if told to pay “fees and taxes” up front or verify banking information to claim a prize. Once the money is paid or the bank account is compromised, the criminals will disappear with the victim’s hard-earned money. The promise of a large sum of money tomorrow should not trump good sense today. Finally, Texans who are considering wiring money overseas in order to claim a prize, a loan, an inheritance or any other large sum of money should immediately STOP – and protect their savings. Con artists often use phony cashier’s checks and wire transfers to avoid felony mail fraud charges. The counterfeit checks are very good – so good, in fact, that even banks have been fooled. Convinced that they’ve received their prize, victims often let down their guard and wire money to cover non-existent fees and taxes. The cashier’s check turns out to be worthless, and the victim’s money is gone. Whether they use e-mail, telephone calls, or even face-to-face visits, con artists dangle baited hooks in front of honest Texans every day of the week. By recognizing the warning signs of a scam and sharing these tips with family and neighbors, Texans can help strengthen their communities and stop thieves in their tracks. For more information about National Crime Prevention Month, visit the National Crime Prevention Council online at www.ncpc.org. Points To Remember Five warning signs of a scam: Telephone, e-mail or door-to-door solicitations from strangers Attempts to collect personal information, such as Social Security and bank account numbers Sweepstakes, lottery and other unexpected prize offers Demands for up-front cash payments Requests to wire money overseas or to deposit a cashier’s check Texans may report a scam by calling the Office of the Attorney General at (800) 252-8011 or filing a complaint online at www.texasattorneygeneral.gov.
United Efforts Help Crime Victims (October 27, 2008) For more than 25 years, the office of the attorney general (OAG) has partnered with local, community-based organizations to help crime victims during the recovery process. This united effort between the OAG’s Crime Victim Services Division and local advocacy groups ensures victims receive a response that is tailored to their unique circumstances and needs. One of the Crime Victim Services Division’s key partners is the Texas Council on Family Violence (TCFV), a statewide coalition that works to promote safe and healthy domestic relationships. TCFV works tirelessly to support service providers, facilitate strategic prevention efforts and create opportunities for victims to be free from family violence. This year, the OAG’s Crime Victim Services Division partnered with TCFV to implement two legislative initiatives that will aid Texas crime victims. First, the OAG coordinated with TCFV and other victim assistance organizations to implement the Texas Address Confidentiality Program (ACP). Created under legislation authored by Sen. Eddie Lucio, the ACP allows family violence, stalking and sexual assault victims to obtain a confidential address that helps protect their privacy and keep their location secure. Victims seeking a confidential address must meet with a local domestic violence shelter, sexual assault prevention center, law enforcement agency or local prosecutor’s office to discuss a safety plan, and learn more about the enrollment process. As part of an overall safety plan, the ACP provides a vital tool for domestic violence survivors who fear for their safety. Under the recently created law, Texans seeking protection through the ACP must meet with a victim advocate at a local shelter or sexual assault prevention center. Victims seeking a local shelter may access the TCFV Web site at www.tcfv.org or call the National Domestic Violence Hotline at (800) 799-SAFE. Victims may contact a sexual assault prevention center through the Texas Association Against Sexual Assault (TAASA) Web site, www.taasa.org, or by calling the National Sexual Assault Hotline at (800) 656-HOPE. Another recent initiative involving the OAG and TCFV was the launch of the “LOVE” campaign, which was created to heighten public awareness about teen dating violence. The “LOVE” campaign is helping Texas schools satisfy their obligations under House Bill 121, a 2007 law that requires Texas school districts to adopt and implement a dating violence policy. To help schools fulfill their HB 121 requirements, TCFV will distribute an informational toolkit to all high schools throughout Texas. The toolkits include campaign posters with information about the National Teen Domestic Violence hotline, which can be reached at (866) 331-9474, and Web site, www.loveisrespect.org. These 24-hour-a-day resources offer real-time, one-on-one support for teens involved in abusive relationships. The “LOVE” campaign also will distribute public service announcements, wallet cards and other educational materials to help protect students. United efforts among public agencies and nonprofit associations help make programs like the ACP and the “LOVE” campaign successful. TCFV, TAASA and other advocacy organizations provide critically important services to victims all across the state. Thanks to public-private initiatives with these organizations, the OAG is working tirelessly and cooperatively to protect Texas crime victims. Points To Remember Address Confidentiality Program For more information about the Address Confidentiality Program or to learn more about the eligibility criteria, contact: Texas Address Confidentiality Program Office of the Attorney General (512) 936-1750 or (888) 832-2322 E-mail: crimevictims@oag.state.tx.us www.oag.state.tx.us/victims/acp.shtml
“LOVE” campaign on teen dating violence The National Teen Dating Abuse Helpline (866) 331-9474 or (866) 331-8453 The Texas Council on Family Violence (512) 794-1133 • www.tcfv.org
Crime Victims’ Compensation Program For more information about the Office of the Attorney General’s Crime Victims’ Compensation Program, contact: CRIME VICTIM SERVICES DIVISION Office of the Attorney General Monday–Friday 8 a.m.–5 p.m. Toll Free: (800) 983-9933 E-mail: crimevictims@oag.state.tx.us Receive Child Support By Direct Deposit Or the Texas Debit Card (October 6, 2008) With last month’s hurricane fresh on our minds, now is a good time to remind parents who receive child support payments by mail about the convenience of direct deposit and the Texas Debit Card. Hurricane season is just one reason parents are encouraged to sign up for direct deposit or the Texas Debit card. Depending on the option selected, child support payments are deposited directly into a parent’s bank account or onto the card. There is no waiting for checks to arrive in the mail, no lost or stolen checks or wondering if a deposit has cleared, and funds can be accessed in thousands of locations. The Texas Debit Card can be used for purchases at grocery stores and other merchant locations worldwide that take VISA debit cards. The card is safer and more convenient than cash or checks, and fees to cash checks are eliminated. Another benefit of the card is access to money throughout the month, even while away from home. Also, there is a savings to taxpayers because the costs to process and mail paper checks are eliminated. Since its introduction in 2006, the card has saved taxpayers more than $5.7 million. Parents do not need a bank account to get the card. Any parent who receives child support through the Texas Child Support Disbursement Unit is eligible for the Texas Debit Card. With the card, parents can make two free cash withdrawals per month at any Wells Fargo automated teller machine. They can make two additional cash withdrawals without a fee from a teller at any bank displaying the VISA logo. Fees can be avoided by requesting cash back with a purchase. For more information, or to sign up for the card or direct deposit, call (800) 252-8014 and select the “direct deposit” or “Texas Debit Card” option, or visit the child support section of the Attorney General’s Web site at www.texasattorneygeneral.gov. The Attorney General’s Child Support Division is committed to efficiently and effectively delivering much needed child support to Texas parents. If you receive child support in the mail, please consider the security and convenience of direct deposit and the Texas Debit Card. Points To Remember TEXAS DEBIT CARD and DIRECT DEPOSIT Child support payments are deposited directly into a parent’s bank account or onto the card No waiting for checks to arrive in the mail No lost or stolen checks No fees to cash checks No cost to mail checks, saving tax payers money Call (800) 252-8014 to sign up for the Texas Debit Card or direct deposit, or Visit the child support section of the Attorney General’s Web site www.texasattorneygeneral.gov. For information on services provided by the Attorney General’s Child Support Division, call (800) 252-8014. Information on this and other topics is available on the Attorney General’s Web site at www.texasattorneygeneral.gov. Protecting Texas Schoolchildren’s Right To a “Moment of Silence” (September 29, 2008) Young Texans returning to school will begin each day by pledging their allegiance to our state and to our nation, before observing a minute of silence. During this quiet moment, they may engage in thoughtful contemplation, including prayer, before beginning another exciting school day. Unfortunately, a North Texas couple is suing the State of Texas in an attempt to stop young Texans from observing a brief moment of reflection. As the State’s lawyer, I am committed to vigorously defending Texas students’ constitutional rights and religious freedoms. So far, we have been successful: In January, a federal district judge rejected the couple’s attempt to prohibit students from observing the “moment of silence”. In 2003, the Texas Legislature revised the moment of silence law to instruct teachers to begin each day with the recitation of the state and national pledge, followed by a minute of silence. The law also now makes it clear that students may “pray” during this time. Legislators also amended the law to allow “any other silent activity that is not likely to interfere with or distract another student.” By providing a patriotic and contemplative context for the minute of silence, Senate Bill 83 is plainly constitutional. The purpose of these exercises is simple – to foster patriotism and provide an opportunity for students to engage in thoughtful contemplation before beginning another busy day. The federal court held that “the addition of the word ‘pray’ directly furthers the purpose of encouraging students to engage in individual contemplative activity.” Such “thoughtful contemplation,” the court held, serves a “valid secular purpose.” Importantly, the court found that “the primary effect of the statute is to institute a moment of silence, not to advance or inhibit religion.” The plaintiffs’ lawsuit turns the First Amendment on its head. They argue that a law protecting students’ right to pray somehow violates the Constitution. Their reasoning would condemn any law that prevents religious discrimination – and would invalidate numerous federal and state laws that protect students from religious hostility. But the Free Exercise Clause of the First Amendment protects students’ rights to observe any silent, non-disruptive activity of their choice, including prayer. Small Claims Court Can Help Resolve Disputes (September 22, 2008) Texans with a financial or other disagreement that does not justify the expenses associated with hiring an attorney may be able to resolve their problems in small claims court. These special courts offer an alternative to litigation, which can cost thousands of dollars and take several years to conclude. In small claims court, trials are informal and do not require parties to hire a lawyer. Judges in small claims courts handle disputes involving up to $10,000. A small claims court judge does not have authority to order any other remedy. For example, while a judge can order a mechanic to pay a customer for failing to repair a vehicle as promised, the judge cannot order the mechanic to make any specific repairs. Small claims are overseen by justices of the peace in the county where the person or entity being sued is located. Those who file lawsuits should be prepared to provide the court clerk with the correct name and address of the opposing party. A court cannot award damages if the complaint does not properly name the defendant. If the party is a business, plaintiffs must determine the registered agent by contacting the Secretary of State’s Office. If the business is a sole proprietorship, plaintiffs may file a claim directly against the owner. The county clerk’s office will have information about sole proprietorships. In most cases, wronged parties cannot file their dispute more than two years after the problem arose. After determining the appropriate court and the correct defendants, plaintiffs should carefully collect and prepare their evidence. Litigants should prepare a clear, concise statement describing the basis for the claim, including the actual event that gave rise to the claim, the date the claim arose and how much money they are requesting. Once advance preparations have been made, plaintiffs may visit the court clerk and request that the clerk fill out a small claims statement. Plaintiffs will have to swear under oath that their statements are true and pay all required filing fees. These fees and other court costs may be recoverable after the trial, if the judge rules in the filer’s favor. After the constable or sheriff serves the defendant, the court will set a trial date. Plaintiffs should always verify the trial date with the clerk and be in court on that date and time. If the defendant was properly served and fails to respond, the plaintiff can win by default after simply appearing in court on the trial date. In small claims court, the plaintiff bears the burden of proving the facts of the case. Plaintiffs should bring all records, contracts, receipts, photographs and other relevant evidence to help establish their damage estimate. Plaintiffs may also bring eye witnesses to provide testimony. After the plaintiff has presented their case, the defendant is given the opportunity to offer their version of the facts and make their own argument. Once both sides have been presented, the judge will usually issue an immediate decision and determine the amount of damages owed. Both parties have a right to appeal if the dispute amount exceeds $20. Small claims court judges will grant a favorable judgment to the winning party, but the court is not responsible for enforcing the decision. If the opposing party does not comply with the judgment, the winning party may consider further civil action, such as filing a property lien, obtaining a writ of execution or reporting the judgment to the major credit bureaus. Collecting on a judgment or filing an appeal may require an attorney, as both processes involve more complicated legal proceedings. While hiring a lawyer at this stage can be expensive, it is usually cheaper than formal litigation. In most cases, settling a dispute outside of court is the best alternative. Texans should make every effort to resolve financial disagreements between interested parties before filing a complaint in small claims court. POINTS TO REMEMBER Small Claims Court Under Texas law, parties may recover up to $10,000 in monetary damages, plus court costs. For business registration information: Secretary of State Post Office Box 13697 Austin, TX 78711-3697 (512) 463-5555 Texas State Bar Lawyer Referral Service (800) 252-9690 Information on this and other topics is available on the Attorney General’s Web site at www.texasattorneygeneral.gov. Tips for Correcting Credit Report Errors (September 15, 2008) Maintaining a good credit report can translate into quicker loan approvals, lower interest rates and a strong financial foundation. All Texans should periodically examine their credit reports and take quick action to address any disputes and respond to any inaccurate information. Under the federal Fair Credit Reporting Act, the credit bureau and any organizations responsible for reporting inaccurate information must correct errors or incomplete information on credit reports. Texans who discover errors on their credit reports should send a written dispute letter to the erroneous creditor and all three major credit bureaus: Equifax, Trans Union and Experian. Because credit bureaus do not cross-verify information, it is possible that one bureau’s report contains unique errors that are not reported by other bureaus. In some cases, two different bureaus may report two separate but equally inaccurate problems. To ensure errors are corrected in each report, credit report problems should be disputed in separate letters to individual credit bureaus. Dispute letters seeking corrections should very specifically describe the facts and circumstances surrounding the mistake. Consumers should always provide their full name, address and Social Security number, along with copies of any supporting documentation, such as receipts, statements that verify payment and a copy of the inaccurate credit report in the letter. Each error on the report should be circled or highlighted and accompanied by a detailed explanation clarifying why the information is inaccurate. To prove that requests for changes are received, dispute letters should be sent by certified mail, return receipt requested. Once a credit bureau is notified of a dispute, it must investigate the items in question (unless it considers the dispute frivolous). The bureau also must forward all the data provided by the consumer to the appropriate creditor. Upon receiving the information, the creditor must review the dispute and report the results back to the credit bureau. If the reporting creditor discovers the disputed information is inaccurate, it must notify all three credit bureaus so corrections can be made to the information in the complainant’s file. When the investigation is complete, the credit bureau must provide the results to the complainant in writing, along with a free copy of his or her credit report if the dispute led to a change. (Note: This corrected credit report does not count as the consumer’s annual free report.) If an item is changed or deleted, it cannot be put back in a consumer’s file unless the reporting creditor verifies that it is accurate and complete. The credit bureau also must send the consumer written notice that includes the creditor’s name, address and phone number. A creditor who is contacted about a reporting error must include a notice of the consumer’s dispute if it reports the item to a credit bureau. If the consumer proves the dispute was accurate, the creditor may not report it to a credit bureau again. If a credit bureau’s investigation does not resolve a consumer’s dispute, the complainant may request that the dispute be included in future credit reports. Texans also may ask the credit bureau to provide the dispute statement to anyone who previously received a copy of the report. Consumers may be required to pay a fee for this service. When negative information in a credit report is accurate, only time and patience can remove it. Credit bureaus can report accurate negative information for seven years and bankruptcy information for ten years. Information about lawsuits or unpaid judgments can be reported for seven years – or until the statute of limitations expires, whichever is longer. Generally, the time period runs from the time the event occurred. There is no time limit on reporting criminal convictions. If a credit reporting agency or creditor refuses to correct inaccurate, incomplete or outdated information, consumers should file a complaint with the Texas Attorney General’s Office or the Federal Trade Commission. POINTS TO REMEMBER HOW TO CORRECT A CREDIT REPORT Texans who detect inaccurate, incomplete or outdated information in their credit reports should contact the organization that provided the information and the three major credit bureaus: Equifax P.O. Box 740241 Atlanta, GA 30374-0241 (800) 685-1111 Experian P.O. Box 949 Allen, TX 75002 (888) 397-3742 Trans Union P.O. Box 390 Springfield, PA 19064 (800) 916-8800 To obtain a free annual credit report: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281 (877) 322-8228 For more information on the Fair Credit Reporting Act: Federal Trade Commission 600 Pennsylvania Ave, NW Washington, DC 20580 (877) 382-4357 Information on this and other topics is available on the Attorney General’s Web site at www.texasattorneygeneral.gov. Avoid Fraudulent Check-Cashing Schemes (Posted September 8, 2008) While most Texans are out working hard to earn their paychecks each month, a few unscrupulous con artists are at home dreaming up new ways to make a fraudulent buck. An increasingly common scheme involves counterfeit checks. Texans can protect themselves by learning how to recognize common counterfeit check schemes, which can manifest themselves in the mail, through e-mail or over the telephone. Frequently, counterfeit check schemes arrive in the form of an unsolicited offer for a prize or a job that seems too good to be true. Foreign lottery and sweepstakes scam. Texans can rest assured they did not win the Spanish lottery, the Canadian lottery, the Jamaican lottery or any other foreign lottery. Every day, families around the state receive official-looking announcements in the mail or telephone calls from con artists posing as government officials claiming the recipient has won a foreign lottery or sweepstakes. Each year, Texans lose millions of dollars to these types of lottery scams. Sadly, the criminals who perpetrate lottery and sweepstakes scams often prey on senior citizens. Texans who receive these solicitations should stop, delete the e-mails, throw away the letters and hang up the telephone. In most cases, the con artist promises victims that they have won a large sum of money, usually in the form of a grand prize, winnings from a foreign lottery or some kind of inheritance. But, to collect their prize, victims are told they must pay “fees and taxes” or “verify” their bank account information so that the money can be wired to them. Once the money is wired or the bank account is compromised, the criminals disappear with their victims’ hard-earned money. Scammers also attempt to trick some victims by sending a phony cashier’s check. The counterfeits are very good – so good, in fact, that even banks have been fooled. Convinced that they’ve received their prize, victims let down their guard and wire money to cover non-existent fees and taxes. The cashier’s check turns out to be worthless, and the victim’s money is gone. The Office of the Attorney General has seen several cases in which senior citizens lost their life savings to this scheme. Mystery shopper scam. The mystery or secret shopper scam works in much the same way as the foreign lottery. Victims receive letters bearing names and logos of major retail businesses that announce an exciting outside income opportunity as a secret shopper. Mock checks, which appear to be drawn from the administrator’s bank account, are included with the letters. Recipients are instructed to deposit the check and wire a portion of the deposited amount to a so-called training agent, whom the victim allegedly owes for training costs. Ultimately, the counterfeit checks are rejected by whatever bank was falsely printed on the document face. As a result, the recipient has the check value withdrawn from their bank accounts and the criminals make off with the wire transfer. Authorities have uncovered several other variations of the counterfeit check scheme. One variation features checks that claim to cover rental deposits. Because the fake check exceeds the deposit, landlords are asked to refund the difference. In other cases, con artists have used counterfeit checks to buy Internet auction items and then return the purchased goods and request cash back. Even worse, some schemes even send fraudulent checks to charities, requesting that part of the donation be wired back to the donor. Texans must keep in mind that if it sounds too good to be true, it’s usually just that. It’s highly unlikely that lucrative business deals, large cash prizes, inherited fortunes or any other windfall will arrive unsolicited in a mailbox or e-mail inbox. Far too often, the fancy paperwork is just another attempt to steal Texans’ hard-earned money. Con artists often operate abroad and spend as fast as they steal, so money lost in these scams is hard to recover. Prevention is the key to stopping thieves in their tracks POINTS TO REMEMBER AVOID FRAUDULENT CHECK-CASHING SCHEMES Common variations used in check-cashing schemes: • Promising victims they won millions in a sweepstakes or foreign lottery • Pleading with victims to serve as a conduit for a financial transaction • Offering victims an inheritance • Surprising victims with mystery or secret shopper opportunities • Surprising charities with generous, unexpected donations • Sending online sellers a larger amount than the agreed price • Asking potential employees to cover travel and training expenses up front To report a scam, contact the Texas Attorney General’s Office at (800) 252-8011 or visit our Web site at www.texasattorneygeneral.gov.
Avoid Prerecorded Telemarketing Calls (Posted September 1, 2008) The Federal Trade Commission (FTC) has announced a new rule governing telemarketing calls that feature prerecorded messages. Beginning Sept. 1, 2009, telemarketing companies must obtain call recipients’ written permission before contacting them with a prerecorded message. More immediately, effective Dec. 1, 2008, prerecorded telephone marketing calls must have an opt-out mechanism so that recipients can elect not to receive those unsolicited calls in the future. Telemarketers with pre-existing customer relationships will be allowed to continue using prerecorded messages to contact those customers only for one year after the rule is published in the Federal Register. At that time, telemarketing companies will need their customer’s written permission before calling anyone with a prerecorded message. Under the new regulations, charitable organizations can continue contacting their members or previous donors, but will need to offer an opt-out mechanism once the new rule goes into effect. The FTC’s new rule will not prohibit customers from receiving certain prerecorded informational calls, such as those which announce flight delay notifications, upcoming appointments, or similarly helpful information. These phone calls are unaffected by the new rule because they are not used to market products or services to the recipient. Healthcare-related phone calls also are exempt from the new regulations. Under the new rule, the prerecorded telemarketing calls must: • allow the telephone to ring for at least 15 seconds or four rings before an unanswered call is disconnected; • begin the prerecorded message within two seconds of a completed greeting by the recipient; • disclose at the outset of the call that the recipient may ask to be placed on the company's do-not-call list at any time during the message; • in cases where the call is answered by a person, make an automated interactive voice and/or keypress-activated opt-out mechanism available during the message that adds the recipient’s telephone number to the company's do-not-call list and then immediately ends the call; and • in cases where the call is answered by an answering machine or voicemail, provide a toll-free number that allows the recipient to be connected to an automated interactive voice and/or keypress-activated opt-out mechanism anytime after the message is received. The new rule can be viewed online at www.ftc.gov. Know the Cost of a 401(K) Loan (Posted August 25, 2008) Texans who are struggling with mortgage payments and rising credit card debt may be tempted to view their retirement savings as a short-term solution to their cash crunch. This temptation may be especially prevalent among 401(k) participants, who are allowed by federal law to borrow money from their retirement accounts within certain guidelines. Given the long-term financial costs of a 401(k) loan, Texans should carefully consider other financing options before opting to borrow from their retirement plans. According to the Employee Benefits Research Institute, 40% of the professional-aged population uses 401(k)s or IRAs to save for retirement. In 2006, about 18 percent of eligible 401(k) participants have outstanding loans, with an average outstanding balance of $7,200. For some employees, borrowing against their 401(k) plan may make sense in emergency situations. Indeed, borrowing from retirement plans has become even easier in recent years with the introduction of the 401(k) debit card, which allows employees to withdraw money directly from their 401(k) plans for purchases. But Texans who are considering any financial transaction involving their 401(k) plans should pay close attention to applicable federal income tax laws and IRS regulations in order to avoid financial penalties. Typical 401(k) debit card programs transfer a specified amount from an investor’s 401(k) fund into a money market account that is managed by the debit card issuer. Because most money market accounts typically earn lower returns on investment than retirement plans, investors who withdraw money from their 401(k) plans sacrifice long-term earnings and depletes the retirement account. The lost earnings and investment potential may be in addition to the debit card program’s higher money management fees, enrollment costs and annual membership charges. Other potential costs include advance fees, for which investors are charged as much as $2 per cash withdrawal. Each debit card transaction also means reduced investment assets, less return on investment and fewer retirement savings in the 401(k) account. Despite the negative long-term implications, however, Texans facing financial difficulties may turn to 401(k) loans since they do not require a credit check and typically appear to offer low interest rates on the debt. But even a small loan from a retirement account can have a big impact on long-term savings goals, and the pervasive myth that repaying the borrowed money with interest is like “paying yourself” simply is not true. Investors who borrow against their 401(k) plans lose interest income that would have accrued if the borrowed funds were still invested in the retirement plan. That reduction lowers the overall value of the fund because there is less compounding principal to generate investment income. Prematurely withdrawing 401(k) investments also costs investors more money in the long run, because assets that could be appreciating and earning income are put to less efficient uses. While a 401(k) loan may appear to offer a better interest rate, the fees and lost investment appreciation generally offset the interest rate savings. An additional problem arises when employees fail to promptly repay their 401(k) loans. Federal law penalizes investors who withdraw money from their 401(k) accounts before reaching the age of 59. Similarly, when employees fail to repay 401(k) loans within five years, their loans are treated as premature distributions and therefore subjected to a 10 percent early withdrawal penalty, plus taxes and fees on the outstanding loan balance. In addition, the employee is considered to have defaulted on the loan, which can negatively impact consumer credit scores and further increase the cost of borrowing money. In many cases, employees who use a 401(k) loan for extra cash find themselves struggling to fully fund their retirement plan and repay the loan. Saving for retirement may take a backseat to repaying the loan. Texans considering a 401(k) loan should always keep in mind that reducing monthly 401(k) contributions lowers overall retirement savings and therefore negatively impacts their retirement investment portfolio’s value. Before taking out a consumer loan, Texans should carefully review the proposed interest rate, payment schedule and any associated fees. Borrowers who have encountered misleading information about a consumer loan may file a complaint with the Office of the Attorney General by calling (800) 252-8011 or visiting our Web site at www.texasattorneygeneral.gov. Despite the ever-increasing ease and convenience of borrowing against a 401(k) plan, Texans must remember that using retirement funds to pay themselves now will cost them later. Don’t Get Cheated by Credit Report Schemes (Posted August 18, 2008) Although many Internet sites claim to offer free annual credit reports, only one Web site is actually authorized to do so: www.annualcreditreport.com. In 2003, Congress passed the Fair Credit Reporting Act (FCRA), which granted every American the right to look at their credit report once a year at no charge. As a result, all Texans may request a free annual copy of their credit report from each of the nationwide consumer credit reporting companies – Equifax, Experian, and TransUnion. AnnualCreditReport.com is the official site created by the three major credit bureaus to help consumers obtain their free credit report. Since the FCRA’s enactment, online marketers have launched Web sites that purport to offer “free” credit reports – but rarely follow through on their promises. Many alternative sites require users to purchase other products or services, and place unnecessary conditions on credit report requests. One Internet marketer, for example, requires users to enroll in costly credit monitoring services, which can only be canceled online after exactly 23 days. Another Web-based service automatically enrolls users in a discount travel service program. The Federal Trade Commission has issued warnings about “free credit report” sites that are actually designed to capture consumers’ personal information, which the scammers either sell or use to commit identity theft. Texans should also be wary of Internet offers promising “free credit scores” or “free credit monitoring.” Neither is part of the government-mandated free annual credit report program. The bottom line is that no one has to purchase their free credit report. Before ordering a credit report from an unauthorized online marketer, Texans should be sure to read the fine print carefully. Through AnnualCreditReport.com, Texans may order one, two or all three credit bureau reports at the same time, or they may consider staggering their requests. Because the three major credit bureaus get their information from different sources, the information in a report from one bureau may not reflect all, or the same, information in reports from the other two bureaus. Ordering a credit report from a different bureau every four months may be a good way to spot any errors or unauthorized account activity. By periodically reviewing their credit reports, consumers help guard against identity theft. Identity thieves may use a consumer’s personal information to open new credit card accounts or commit other financial crimes. When the thieves fail to pay the bills, the delinquent accounts show up on the victims’ credit report. Inaccurate credit history, if left uncorrected, may affect a consumer’s ability to get credit, insurance or even a job. Texans who discover problems with their credit report should notify both the credit bureau and the creditor in writing. Credit bureaus must investigate the items in question, unless they consider the dispute frivolous. They also must forward all the data about the inaccuracy to the creditor that reported the disputed information. Upon receiving the information, creditors must review the relevant information and report the results to the credit bureau. If the creditor discovers the disputed information is inaccurate, it must notify all three credit bureaus so they can correct the information in the consumer’s file. Texans should also contact the creditor directly to dispute inaccuracies. If the creditor reports the item to a credit bureau, it must notify the bureau about the requestor’s dispute. If the requestor’s dispute is verified, the creditor may not report it again. Texans who encounter a credit reporting agency or creditor that refuses to correct inaccurate information should file a complaint with the Texas Attorney General’s Office and the Federal Trade Commission. POINTS TO REMEMBER Free Annual Credit Report To obtain a free copy of your credit report: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281 (877) 322-8228 Contact the three major credit bureaus at: Equifax P.O. Box 740241 Atlanta, GA 30374-0241 (800) 685-1111 Experian P.O. Box 949 Allen, TX 75002 (888) 397-3742 Trans Union P.O. Box 390 Springfield, PA 19064 (800) 916-8800 For information on the Fair Credit Reporting Act: Federal Trade Commission 600 Pennsylvania Ave, NW Washington, DC 20580 (877) 382-4357) Information on this and other topics is available on the Attorney General's Web site at www.texasattorneygeneral.gov.
Five Steps To Guard Against Botnets (Posted August 4, 2008) Robot Networks, Zombie Armies these names may sound like science fiction. Unfortunately, they identify actual threats to information systems in Texas and across the globe. By secretly invading residential Internet connections, hackers and spammers can download harmful software, including spyware and computer viruses, onto home computers. These malicious programs turn ordinary computers into robots that can be remotely controlled by cyber criminals. Once a robot computer network, or botnet, is in place, cyber criminals can use it to spy on Internet users, harvest sensitive personal information and send millions of spam messages. Last year, the Office of the Attorney General shut down a Texas spammer who “leased” a substantial botnet to others who distributed illegal spam. We also took legal action against two suspects who used botnets to orchestrate spam e-mail campaigns touting near-worthless penny stocks. According to investigators, the defendants sent potential investors millions of unsolicited e-mails with baseless price projections about their stock offers. Cyber security experts estimate that up to one quarter of all personal computers connected to the Internet may be hijacked by botnets. Signs of an infected computer often include slow operation, frequent “crashing” and outgoing e-mail boxes filled with messages the user did not send. The botnet’s viruses and spyware usually do not disable hijacked computers, because computers must be functional and connected to the Internet in order for the botnet to work. Despite this growing threat, Texans can take five simple steps to prevent their home computers from becoming part of a zombie network. First, home computer users should install anti-virus and anti-spyware programs. Many Internet service providers and software companies offer programs that protect against malicious software. Most operating systems issue periodic security patches to fix flaws in their software. Second, home computer users should set up firewalls to block unauthorized access while connected to the Internet. Computers that are unprotected by anti-virus programs and firewalls are extremely vulnerable to harmful software invasions. Third, consumers should never open e-mail attachments or download files from unknown sources. The links or files could contain hidden programs that could snare the computer in a botnet. Additionally, e-mail users should be aware that spammers often solicit personal information through fraudulent spam e-mails that appear to be from a legitimate source, such as a bank or credit union. To prevent identity theft and unauthorized computer access, Texans should always be cautious when downloading files or opening e-mail attachments. Computer users also should frequently change their passwords to e-mail accounts, online banking accounts and other secure Web sites. Cyber security experts suggest using passwords that contain a random string of characters that mix uppercase and lowercase letters with numbers and symbols. Consumers should refrain from using birthdays or anniversaries as part of their passwords or using the same password repeatedly. Finally, home computer users should always disconnect from the Internet when they are away from the computer. Closing the Internet connection prevents hackers and spammers from accessing or abusing private information and resources. Texans who believe their computers have been hacked or infected by spyware or a virus should immediately disconnect from the Internet and use updated anti-virus and anti-spyware software to fully scan the computer. Users should report unauthorized computer access to their Internet service provider as well as the FBI’s Internet Crime Complaint Center at www.ic3.gov. POINTS TO REMEMBER Guard Against Botnets • Install fully updated anti-virus and anti-spyware programs. • Set up a firewall to guard against unauthorized online access. • Never open e-mail attachments or download files from unknown sources. • Change passwords frequently. • Disconnect from the Internet when the computer is not in use. Report unauthorized computer access to your Internet service provider and the FBI: FBI Internet Crime Complaint Center For more information on this and other consumer topics, visit the Office of the Attorney General’s Web site at www.texasattorneygeneral.gov
Make Lasting Memories with Your Children This Summer (Posted July 28, 2008) The mercury is rising and children are out of school. Summer is officially here! Traditionally, this is a time for families to get together and relax before the start of a new school year. Take time this summer to connect with your kids and create positive memories. When parents are involved in their lives, children have a better chance at growing up healthy, happy and well adjusted. Most parents instinctively understand this and do what is needed to provide the foundation for success. Simple activities such as sharing a meal or going to the park together provide ideal opportunities for family bonding. Take advantage of the long summer days and have a picnic or barbecue to form lasting memories. Employees of the Office of the Attorney General who are charged with ensuring Texas children receive the financial support they need from parents see the need for fathers and mothers to be involved in their kids’ lives. This starts with regular child support payments. Children depend on child support to provide basic needs like food, shelter, health care and clothing. Research shows that children who receive regular child support reap intangible benefits as well, such as making better grades in school, being more likely to finish high school and attend college, and even having fewer behavior problems at school. Without a doubt, paying child support is one critical way parents can demonstrate their love for their children. But, money is only part of the equation. Too often, children would benefit from more, not less, involvement from the parent who pays child support. That is why the Attorney General’s Office encourages strong family formation, responsible parenthood and parental involvement through initiatives including: The Access and Visitation program promotes non-custodial parents’ access to and visitation with their children, when appropriate, through a variety of shared parenting projects. Awarding grant funding to local organizations is one way the Office of the Attorney General can help children whose parents are engaged in custody or visitation disputes, since federal funding to run the child support program cannot be used to handle these issues. The services provided under this grant include co-parenting education, alternative dispute resolution, and development of parenting plans, supervised visitation and visitation enforcement. The Access and Visitation Hotline is the only service of its kind in the nation that provides parents with free phone access to attorneys who offer legal information and assistance related to child custody and visitation issues, as well as paternity and child support information. Hotline attorneys do not represent parents. Rather, they provide tools and guidance, and answer parents’ questions. The statewide toll-free number, (866) 292-4636, is answered in English and Spanish, Monday – Friday from 1 to 7 p.m. The hotline has a corresponding Web site, www.txaccess.org, where parents can download sample materials and tools for assistance with child access issues. p.a.p.a. (parenting and paternity awareness) is an innovative educational curriculum designed for secondary school students and young adults that deals with the “rights, responsibilities and realities of parenting.” Key themes in the curriculum focus on the importance of father involvement, the value of paternity establishment, the legal realties of child support, the financial and emotional challenges of single parenting, the benefits of both parents being involved in a child’s life, healthy relationship skills and relationship violence prevention. Thankfully, most parents faithfully carry out their responsibilities to their children, doing such things as paying court-ordered child support each month. All children deserve the security that comes from knowing their parents care enough to make regular child support payments. Please help make this summer memorable for your kids by paying your child support and being there for them. The Office of the Attorney General hopes you and your family have a fun and safe summer! Points to Remember Parental Involvement Parents who are involved in their kids’ lives: • Support them financially; • Help them avoid risky behaviors; • Show them they are loved. The Attorney General’s Office can help you: • Learn the responsibilities of parenthood; • Locate a noncustodial parent; • Establish your child’s paternity; • Establish and enforce child support orders; • Establish and enforce medical support orders; • Review and adjust child support payments; • Collect and distribute child support payments. Call (800) 252-8014 or visit the Attorney General’s Web site at www.texasattorneygeneral.gov to find out more. Cracking Down on International Driver’s License Scams Posted July 21, 2008) With law enforcement stepping
up the focus on border security, manufacturing false identifications has
become an increasingly profitable criminal enterprise. Though many fake ID
manufacturers are small-time operators who work in the shadows, the boldest
among them are advertising fake international driver’s licenses and claiming
that their products are entirely legal. Law enforcement officials around the
state should remain vigilant and look for similar schemes in their
communities. Know the Source of Online Health Information (Posted July 14, 2008) When it comes to something as important as health and wellness, Texans seeking more information should always consult their doctor or licensed health care professional. According to a recent Pew Internet and American Life Project study, every day an estimated eight million Americans search the Internet for health care information. But Texans should never solely rely on a Web site to diagnose or treat a serious illness. Equally important, Internet users should always pay close attention to their information source. Although many Web sites offer informative, helpful information about a variety of health and lifestyle issues, not every site can be trusted for accurate, factual material. Texans who consult the Internet for health care information should always pay close attention to the entity operating the site. In some cases, what appears to be medically-oriented Web site may actually be an advertising tool for a third party with a financial incentive to exaggerate or downplay a product’s benefits or dangers. For example, Web-based law firm advertising is particularly common among Web sites that are dedicated to certain specific illnesses or prescription medications. The Center for Medicine in the Public Interest recently noted that Internet searches for medical information produced results that were “dominated by Web sites paid for and sponsored by either class action law firms or legal marketing sites searching for plaintiff referrals.” Similarly, Web sites that promote alternative therapies and treatments also may have financial interests that seek to influence a patient’s decision. Texans also should be leery of information they discover in online forums, where patients, physicians and others discuss prescription medications and treatments. It is nearly impossible to verify the credibility of individuals who participate in interactive patient forums. A participant who claims to be a medical professional may actually be an attorney trying to solicit business or a vendor trying to sell products. Anecdotal stories about prescription drugs or treatments, whether positive or negative, may not be based on sound science. To distinguish unbiased online information sources, Texans should look for broader content and objective data sources. For example, Web sites created by reputable organizations like the American Cancer Society and the American Heart Association often feature peer-reviewed medical journals and other impartial research sources. In addition, many government agencies, including the Food and Drug Administration, impose similarly rigorous standards upon any research included on their Web sites. But even trusted, verifiable online information cannot be relied upon to treat serious ailments or answer critical medical questions. Texans should always contact a licensed medical professional whenever their health is at risk. An in-person visit to a doctor’s office or local clinic is the best way to ensure patients are getting accurate information that is tailored to their unique health needs. Texans who have encountered misleading or deceptive medically-oriented Web sites may file a complaint with the Office of the Attorney General by calling (800) 252-8011 or visiting our Web site at www.texasattorneygeneral.gov. POINTS TO REMEMBER Online Health Sources Texans who research illnesses and prescription medications online should carefully consider the financial self-interests of online sources Trusted sources may include: U.S. Food and Drug Administration American Heart Association American Cancer Society To report a deceptive medically-oriented Web site, contact the Office of the Attorney General at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov. Consumer Alert: Beware of Spam E-mails Claiming to Originate from the Office of the Attorney General (Posted July 7, 2008) A brazen, new spam e-mail featuring Texas Attorney General Greg Abbott’s photograph and the Office of the Attorney General’s Web page banner has recently hit inboxes statewide. The fraudulent e-mail message, which may include the subject line, “ATTORNEY GENERAL OF TEXAS,” is given the false appearance of legitimacy because it is adorned with the agency’s distinctive online logo and an image of Attorney General Abbott. In the e-mail text addressing the recipient by name, a vague security alert warns about a “transaction with the United Nations.” The entire e-mail reads: Attn: [Recipient Name], This is the office of the attorney general of Texas we are using this private email box to contact you for our security reasons because a lot is going on now and so many of our citizen wish to hear from this office daily but we have choose this medium to attend to our good citizen. [Recipient Name], we wish to inform you that your transaction with the United Nations concerning your package that is on hold now is a legitimate transaction and you must try and see you provide all that is been requested for the security of this great country. You are at a safe hand and we are giving you 100 % assurances to continue with them and make sure that your package is being released to you. Thanks. Savvy e-mail users have increasingly learned to identify and delete fraudulent e-mails that falsely appear to originate from legitimate banks, credit card companies and government agencies. Recipients should not respond to the sender or click on any Web links that may appear within the message. Activating Web links that appear in unexpected e-mails may direct users to fraudulent Web sites or allow identity thieves to capture users’ sensitive personal information. Texans can protect their e-mail addresses from spammers by working with their Internet service providers to install free filters, blocks and other junk mail management services. All computer users should also familiarize themselves with a Web site’s privacy policy before providing their e-mail addresses. Most legitimate vendors allow users to prevent the company from sharing their information with unauthorized third parties.
The Bond Review Process (Posted June 30, 2008) As the chief legal officer for the State of Texas, the Attorney General has a number of formal legal duties and responsibilities, including representing state agencies in court, issuing legal opinions, ensuring that government information is accessible to the public, and approving state and local government-issued bonds. Bonds, a type of debt security, are essentially a method by which governmental and corporate entities issue debt. When a governmental entity seeking financing for a public project opts to fund the initiative by borrowing money from private sources, it does so by selling bonds. The bondholders are essentially creditors, while the issuing governmental entity is a debtor that promises to repay both the principal debt and a specified amount of interest. While the bond process doesn’t usually generate headlines, it is a crucial function of government and a process that benefits every Texan. Governmental entities may use bonds to pay for a variety of purposes, ranging from water infrastructure projects to road construction and other public works. Bonds also may be issued to build or repair public school buildings – from public elementary schools to public universities. In recent years, voters have elected to use bond money to finance sports facilities, including Minute Maid Park in Houston, the American Airlines Center in Dallas and the AT&T Center in San Antonio. As the Texas population and economy grows, the number of bonds issued by governmental entities continues to rise. During recent record-breaking years, the Office of the Attorney General (OAG) received as many as 1,600 bond transcripts – and approved up to $53 billion worth of bonds – in a single year. Among the governmental entities authorized to issue bonds are cities, counties, school districts, municipal utility districts, hospital districts, institutions of higher education, certain state agencies, and nonprofit organizations created to act on a governmental entity’s behalf. In most circumstances, bonds payable from ad valorem taxes are issued only after a public entity’s governing board elects to hold a bond election; the voting public approves the proposed bond package; and the governing body elects to issue the bonds. This process gives local elected leaders an opportunity to designate how the bond proceeds will be used and permits taxpayers to accept or reject the proposed debt issuance. Once bonds have been approved, the entity planning to issue bonds must submit certain documentation to the OAG. The bonds cannot be issued until the OAG has completed a thorough legal review. This process ensures that the debt securities comply with the state’s laws and Constitution. The OAG’s Public Finance Division is responsible for bond review and approval. Bonds and similar obligations must be submitted together with evidence proving that valid proceedings authorized the bonds’ issuance (for example, certified election results). The completed package is called a bond transcript. Many bond transcripts require a simple, straightforward legal review. More complicated financing structures, however, such as sports facilities, economic development projects, health facilities and lease-purchase agreements, require a more complex and lengthier review process. The Public Finance Division’s review and approval role is based entirely on legal validity. Because the Office of the Attorney is not a legislative body or a financial institution, its review process is limited to strictly legal issues. The entity issuing bonds makes the policy decision to authorize the debt, the law limits OAG’s role in the process. The wisdom of a financing method or the advisability of a particular project generally lies outside the OAG’s statutory review authority. From time to time, legal problems are discovered after the governmental body delivers the bond transcript to the OAG. Some issues are resolved through remedial action by the issuer. However, consistent with its statutory obligation to review proposed bonds for compliance with the law, the Public Finance Division must refuse to approve bonds which are defective if the legal problem cannot be cured. If the OAG determines that the proposed bonds have been authorized in accordance with law, the agency approves the transcript and sends the bonds to the Comptroller of Public Accounts for registration. Bonds that receive OAG approval are deemed legally valid, enforceable and incontestable in any court for any reason (unless they are constitutionally defective). Once the bonds are registered by the Comptroller, the issuer can deliver bonds to the purchasers in exchange for the purchase price. The purchaser is usually a bond underwriter, such as an investment bank, that agrees to purchase all the debt securities issued by the governmental body. The purchaser usually sells the debt on the open market. There, public bonds are bought, sold and traded by private purchasers, who earn interest payments until the governmental entity pays off its debt. The Public Finance Division also serves as legal counsel to the Bond Review Board, the state agency responsible for ensuring that bond proceeds are used prudently. Under Texas law, the Board is also charged with securing the highest possible ratings for state-issued bonds. With high ratings, bonds receive more favorable interest rates and therefore save valuable taxpayer dollars. By carefully and thoroughly performing its statutory obligation to review and ap-prove state and local government bonds, the OAG protects taxpayers resources and assures bond purchasers they are buying a legally valid public security. For bond counsel letters and additional information on the bond review pro-cess, visit the OAG online at www.texasattorneygeneral.gov. “Justice for Victims, Justice for All” Posted June 23, 2008) In the aftermath of violent crime, survivors and their loved ones often discover a new sense of inner strength. Many crime victims find that life is not only about how we are challenged, but how we respond to those challenges. One shining example of survivor courage is Pam Lychner, a Houston woman who became an advocate for crime victims’ rights after a career sex offender attacked her in 1990. Pam Lychner was working as a real estate agent in Houston when she received a telephone call from a man who asked to see a vacant house. After arriving at the house, Pam was attacked by a workman from the company she had hired to clean the residence. Pam’s husband, who had accompanied her to the showing and was waiting for her in another room, rushed to help her. He restrained the assailant until law enforcement officers arrived. The attacker was arrested, convicted and sentenced to 20 years in prison. Pam’s attacker turned out to be a convicted rapist and child molester, who had been released from state prison under a then-mandatory early release policy designed to ease prison overcrowding. While in prison, the assailant filed a civil lawsuit against the Lychners, seeking damages for “psychological injuries” he suffered during the struggle. Back then, I was a trial court judge in Houston, and when the attacker’s frivolous lawsuit landed in my court, I promptly dismissed it. Just two years into the assailant’s prison term, the state parole board informed the Lychners that Pam’s attacker was a candidate for early release. Pam’s outrage spurred her to begin meeting and working with other survivors of violent crime. In 1993, Pam and two other women founded a nonprofit organization called Justice for All to fight for criminal justice reform and crime victims’ rights. In the years since, Justice for All has worked tirelessly to give a voice to Texas crime victims and the loved ones left behind. Among its achievements, the group successfully fought to repeal mandatory release laws. Justice for All also worked to curb inmates’ frivolous lawsuits against victims; won the right for relatives of murder victims to attend executions; and helped establish a national sex offender registry to help states track and manage released sex offenders. Perhaps most importantly, Justice for All helps crime victims and their families understand the rights afforded them by the Texas criminal justice system. One of the fundamental rights of crime victims in Texas is the right to compensation. Every law enforcement agency in Texas is required to provide crime victims with information about the Crime Victims’ Compensation Fund and an application for financial assistance. Applications also may be available at local hospitals and medical centers. Victims and survivors can also contact the Office of the Attorney General (OAG) directly for an application. The Texas Legislature established the Fund to help victims and their families who cannot afford to pay the financial cost of crime. The Fund receives its money from fees, court costs and restitution paid by those convicted of a felony or misdemeanor in a state court. When eligible victims and their families have exhausted all other means of financial support, the Fund helps them offset the expenses they incurred because of violent crime. Last year, the OAG, which administers the Fund, received more than 37,000 applications for assistance and awarded more than $65 million in benefits to victims and their families. We also distributed nearly $36 million in grants to nonprofit organizations and public entities that provide emergency shelter, crisis counseling, court accompaniment and other victim assistance. Violent crime is often accompanied by extraordinary physical, emotional and financial suffering. Yet, countless crime victims turn these senseless acts of violence into positive changes in their lives. It is a testimony to the human spirit’s resilience that so many crime victims discover a new outlook on life. Tragically, Pam Lychner perished in the 1996 crash of TWA Flight 800 in New York. But Pam’s strength and courage will never be forgotten, for her legacy lives on today through the continued advocacy work of Justice for All. This year’s National Crime Victims’ Rights Week is appropriately named “Justice for Victims, Justice for All.” I encourage all Texans to observe this important week by participating in community events that honor victims and survivors of crime, and take a moment to think about Pam Lychner, who taught us all how to win the fight for crime victims’ rights. Points to Remember Crime Victims’ Rights The Crime Victims’ Compensation Fund reimburses out-of-pocket expenses to victims of violent crime and their families. Expenses covered by the Fund may include: • funeral costs • medical and counseling costs • child care • relocation expenses for sexual assault victims attacked in their homes and for family violence victims For more information on the Office of the Attorney General’s Crime Victims’ Compensation Program, contact: CRIME VICTIM SERVICES DIVISION Office of the Attorney General Monday – Friday 8 a.m. – 5 p.m. Toll Free: (800) 983-9933 crimevictims@oag.state.tx.us JUSTICE FOR ALL (713) 935-9300 For more information about this and other topics, visit the Office of the Attorney General online at www.texasattorneygeneral.gov.
Understanding Eminent Domain: Texas Landholder’s Bill of Rights (Posted June 16, 2008) Since Stephen F. Austin first helped settlers establish new roots west of the Sabine River, Texas has always been a place that respects private property rights. With three times more privately owned land than any other state, Texas leads the nation in private property ownership. From the Panhandle to the Piney Woods, Texas is a place where citizens – not the government – own the land. The distinction matters because private landownership lies at the heart of our democratic, free-market system. Recognizing this important principle, President William Howard Taft once observed, “Next to the right of liberty, the right of property is the most important individual right guaranteed by the Constitution.” To ensure that Texas landowners are informed about their rights as private property owners, the state Legislature asked my office to draft a Texas Landowner’s Bill of Rights. As Attorney General, I can neither make new laws nor change existing law; the Texas Legislature has that exclusive authority. The ultimate goal of the Texas Landowner’s Bill of Rights is to make existing laws accessible by explaining complicated legal concepts in a manner that can be easily understood. The central focus of the Texas Landowner’s Bill of Rights is eminent domain. Although both the U.S. and Texas Constitutions both contain protections for property owners, some governmental and private entities have the ability to take private property for public use under certain circumstances. For example, when a local power company needs to build a new power line, it can acquire private land to house infrastructure that serves the public interest. But when even the most narrow sliver of land is taken for a public purpose, the landowner must be adequately compensated for their property. Under Texas law, eminent domain is the legal authority to take private property for public use. The takings process itself is called condemnation. Effective February 1, 2008, Texas property cannot be taken unless the condemning authority first provides the Landowner’s Bill of Rights to the affected property’s owners. All rights outlined in this document apply every time any entity uses eminent domain to take a Texas landowner’s private property. The Texas Landowner’s Bill of Rights consists of 10 basic principles: 1. You are entitled to receive adequate compensation if your property is taken for a public use. 2. Your property can only be taken for a public use. 3. Your property can only be taken by a governmental entity or private entity authorized by law to do so. 4. The entity that wants to take your property must notify you about its interest in taking your property. 5. The entity proposing to take your property must provide you with an assessment of the adequate compensation for your property. 6. The entity proposing to take your property must make a good faith offer to buy the property before it files a lawsuit to condemn the property. 7. You may hire an appraiser or other professional to determine the value of your property or to assist you in any condemnation proceeding. 8. You may hire an attorney to negotiate with the condemning entity and to represent you in any legal proceedings involving the condemnation. 9. Before your property is condemned, you are entitled to a hearing before a court-appointed panel that includes three special commissioners. 10. If you are unsatisfied with the compensation awarded by the special commissioners, or if you question whether the taking of your property was proper, you have the right to a trial by jury. The Texas Landowner’s Bill of Rights, along with an explanation of the condemnation process, is available at www.texasattorneygeneral.gov. Texans should always consult the Texas Landowner’s Bill of Rights when their property faces condemnation. In a state whose citizens have a storied relationship with the land, where 95% of the property is privately owned, it is critical that residents know and understand their legal rights as private property owners. POINTS TO REMEMBER: “No person shall be . . . deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.” Fifth Amendment of the U.S. Constitution Eminent domain describes certain entities to legal authority take private property for a public use. Under HB 1495, enacted by the 80th Texas Legislature, a condemning authority must provide property owners facing condemnation with a copy of the Texas Landowner’s Bill of Rights. The Texas Landowner’s Bill of Rights is available on the Office of the Attorney General’s Web site at www.texasattorneygeneral.gov. More information about the procedures, timelines and requirements outlined in the Landowner’s Bill of Rights can be found in Chapter 21 of the Texas Property Code. Access Texas statutes online at
Happy Father’s Day, Dad! (Posted June 9, 2008) On June 15, children across Texas will celebrate their fathers and thank them for a job well done. It is on this special day that dads will receive the praise they deserve year round. The employees of the Attorney General’s Child Support Division (CSD) extend well wishes and thanks to Texas fathers for giving their children the love and support they deserve. Last year, the CSD collected a record $2.3 billion in child support — and most of the money came from fathers. A father’s job is an important one and it often is not easy. Daily sacrifices and struggles, some larger than others, are a common part of fatherhood. We all face challenges in life, whether it be a disability, the loss of a job, or distance from our children, but these challenges don’t have to define our lives. Inevitably, we will face many more challenges and its how we respond to the challenges that matter. In the end, our children will remember the examples set for them and the love and support provided to them. Thank you for doing the right thing by taking care of your children. You are the unsung heroes in your children’s lives. Over the last several years, the CSD has demonstrated its commitment to fathers by recognizing the important and irreplaceable role they play in their children’s lives. Several notable resources that serve Texas fathers include: The Paternity Opportunity Program gives unmarried fathers the opportunity to acknowledge their children’s paternity at the time of birth. The Office of the Attorney General (OAG) trains and certifies hospital and birthing center staff to assist parents with the Acknowledgement of Paternity process so that the child will have a legal father right from the start. Last year, POP gave more than 114,000 Texas children a good start in life by helping their fathers establish legal paternity. Maps for New Dads: Handbook for Expectant and New Fathers is a publication designed to help expecting dads transition into fatherhood. Maps covers everything from what to expect on a prenatal visit to making homes “baby safe” — all in a manner designed to reinforce the special role fathers play. Additional resources developed by the OAG include “A Dad” posters, Parenting Two-gether Handbook for New Parents, and the For Our Children DVD. The NCP Choices Project aims to increase child support collections by increasing employment and training services for non-custodial parents (NCPs) and tightening sanctions for non-cooperation with these services. A judicial order requires un- or under-employed NCPs currently not paying child support to participate in employment services with strict sanctions for non-compliance, which could include jail time. Local workforce development boards provide intensive employment services designed to meet the needs of NCPs and facilitate their entry into stable employment. The project is a collaboration between the OAG, the Texas Workforce Commission and child support judges. Access and Visitation programs promote non-custodial parents’ access to and visitation with their children, when appropriate, through a variety of shared parenting projects. Awarding grant funding to local organizations is one way the Attorney General’s Office can help children whose parents are engaged in custody or visitation disputes, since federal funding to run the child support program cannot be used to handle these issues. The services provided under this grant include co-parenting education, alternative dispute resolution, development of parenting plans, supervised visitation and visitation enforcement. The OAG also funds a toll-free assistance hotline and provides a Web-based directory of services available in Texas communities. The Parenting and Paternity Awareness (p.a.p.a.) program is an innovative educational curriculum designed for secondary school students and young adults. The p.a.p.a. Program focuses on the “rights, responsibilities and realities of parenting.” Key themes in the curriculum focus on the importance of father involvement, the value of paternity establishment, the legal realties of child support, the financial and emotional challenges of single parenting, the benefits of both parents being involved in a child’s life, healthy relationship skills, and relationship violence prevention. The No Kidding: Straight Talk From Teen Parents project trains and equips young parents to deliver educational curriculum on the realities of being a young parent to students in middle and high school. No Kidding educators use their experiences as teen/young parents to deliver a memorable message about paternity establishment, father involvement, the challenges of parenting and the benefits of postponing parenthood until economically stable and in a marital relationship. POINTS TO REMEMBER THE OAG FATHERHOOD PROGRAM The Office of the Attorney General provides help to fathers seeking to become more financially and emotionally involved in their children’s lives. The OAG Child Support Division helps fathers with: • child support services • employer and job training referrals • establishing paternity for their child • education about their rights and responsibilities • information on how to build healthy relationships with their children and the mothers of their children &nb |
