84R7215 LEH-D
By: Hernandez H.B. No. 1560
A BILL TO BE ENTITLED
AN ACT
relating to investment options for property recovered in a suit by a
next friend or guardian ad litem on behalf of a minor or
incapacitated person.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 142.004(a), Property Code, is amended to
read as follows:
(a) In a suit in which a minor or incapacitated person who
has no legal guardian is represented by a next friend or an
appointed guardian ad litem, any money recovered by the plaintiff,
if not otherwise managed under this chapter, may be invested:
(1) by the next friend or guardian ad litem in:
(A) a higher education savings plan established
under Subchapter G, Chapter 54, Education Code, or a prepaid
tuition program [the Texas tomorrow fund] established under [by]
Subchapter H [F], Chapter 54, Education Code; or
(B) interest-bearing time deposits in a
financial institution doing business in this state and insured by
the Federal Deposit Insurance Corporation; or
(2) by the clerk of the court, on written order of the
court of proper jurisdiction, in:
(A) a higher education savings plan established
under Subchapter G, Chapter 54, Education Code, or a prepaid
tuition program [the Texas tomorrow fund] established under [by]
Subchapter H [F], Chapter 54, Education Code;
(B) interest-bearing deposits in a financial
institution doing business in this state and insured by the Federal
Deposit Insurance Corporation;
(C) United States treasury bills;
(D) an eligible interlocal investment pool that
meets the requirements of Sections 2256.016, 2256.017, and
2256.019, Government Code; or
(E) a no-load money market mutual fund, if the
fund:
(i) is regulated by the Securities and
Exchange Commission;
(ii) has a dollar weighted average stated
maturity of 90 days or fewer; and
(iii) includes in its investment objectives
the maintenance of a stable net asset value of $1 for each share.
SECTION 2. This Act takes effect September 1, 2015.