| 1 | 1 | | 81R772 KKA-D |
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| 2 | 2 | | By: Frost H.B. No. 2568 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the marital property interest in certain employee |
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| 8 | 8 | | benefits. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 3.007(d), Family Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (d) A spouse who is a participant in an employer-provided |
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| 13 | 13 | | stock option plan or an employer-provided restricted stock plan has |
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| 14 | 14 | | a separate property interest in the options or restricted stock |
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| 15 | 15 | | granted to the spouse under the plan as follows: |
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| 16 | 16 | | (1) if the option or stock was granted to the spouse |
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| 17 | 17 | | before marriage but required continued employment during marriage |
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| 18 | 18 | | before the grant could be exercised or the restriction removed, the |
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| 19 | 19 | | spouse's separate property interest is equal to the fraction of the |
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| 20 | 20 | | option or restricted stock in which: |
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| 21 | 21 | | (A) the numerator is the period from the date the |
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| 22 | 22 | | option or stock was granted until the date of marriage and, if the |
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| 23 | 23 | | option or stock also required continued employment following the |
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| 24 | 24 | | date of dissolution of the marriage before the grant could be |
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| 25 | 25 | | exercised or the restriction removed, the period from the date of |
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| 26 | 26 | | dissolution of the marriage until the date the grant could be |
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| 27 | 27 | | exercised or the restriction removed; and |
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| 28 | 28 | | (B) the denominator is the period from the date |
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| 29 | 29 | | the option or stock was granted until the date the grant could be |
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| 30 | 30 | | exercised or the restriction removed; and |
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| 31 | 31 | | (2) if the option or stock was granted to the spouse |
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| 32 | 32 | | during the marriage but required continued employment following the |
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| 33 | 33 | | date of dissolution of the [after] marriage before the grant could |
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| 34 | 34 | | be exercised or the restriction removed, the spouse's separate |
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| 35 | 35 | | property interest is equal to the fraction of the option or |
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| 36 | 36 | | restricted stock in which: |
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| 37 | 37 | | (A) the numerator is the period from the date of |
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| 38 | 38 | | dissolution [or termination] of the marriage until the date the |
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| 39 | 39 | | grant could be exercised or the restriction removed; and |
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| 40 | 40 | | (B) the denominator is the period from the date |
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| 41 | 41 | | the option or stock was granted until the date the grant could be |
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| 42 | 42 | | exercised or the restriction removed. |
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| 43 | 43 | | SECTION 2. Sections 3.007(a), (b), and (f), Family Code, |
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| 44 | 44 | | are repealed. |
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| 45 | 45 | | SECTION 3. The change in law made by this Act applies to a |
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| 46 | 46 | | suit for dissolution of a marriage pending before a trial court on |
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| 47 | 47 | | or filed on or after the effective date of this Act. |
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| 48 | 48 | | SECTION 4. This Act takes effect immediately if it receives |
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| 49 | 49 | | a vote of two-thirds of all the members elected to each house, as |
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| 50 | 50 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 51 | 51 | | Act does not receive the vote necessary for immediate effect, this |
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| 52 | 52 | | Act takes effect September 1, 2009. |
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