By: Zaffirini, Perry S.B. No. 1764
A BILL TO BE ENTITLED
AN ACT
relating to the investment of funds in, and operation of
guardianships of the estate in relation to, accounts established
under the Texas Achieving a Better Life Experience (ABLE) Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1161.003, Estates Code, is amended to
read as follows:
Sec. 1161.003. INVESTMENTS THAT MEET STANDARD FOR
INVESTMENT. A guardian of the estate is considered to have
exercised the standard required by Section 1161.002(a) with respect
to investing the ward's estate if the guardian invests in the
following:
(1) bonds or other obligations of the United States;
(2) tax-supported bonds of this state;
(3) except as limited by Sections 1161.004(b) and (c),
tax-supported bonds of a county, district, political subdivision,
or municipality in this state;
(4) if the payment of the shares or share accounts is
insured by the Federal Deposit Insurance Corporation, shares or
share accounts of:
(A) a state savings and loan association or
savings bank that has its main office or a branch office in this
state; or
(B) a federal savings and loan association or
savings bank that has its main office or a branch office in this
state;
(5) collateral bonds that:
(A) are issued by a company incorporated under
the laws of this state that has a paid-in capital of $1 million or
more;
(B) are a direct obligation of the company; and
(C) are specifically secured by first mortgage
real estate notes or other securities pledged with a trustee; [or]
(6) interest-bearing time deposits that may be
withdrawn on or before one year after demand in a bank that does
business in this state, if the payment of the time deposits is
insured by the Federal Deposit Insurance Corporation; or
(7) an ABLE account established in accordance with the
Texas Achieving a Better Life Experience (ABLE) Program under
Subchapter J, Chapter 54, Education Code.
SECTION 2. Subchapter A, Chapter 1202, Estates Code, is
amended by adding Section 1202.003 to read as follows:
Sec. 1202.003. TERMINATION OF GUARDIANSHIP OF ESTATE ON
ESTABLISHMENT OF ABLE ACCOUNT BY CERTAIN PERSONS. On application
by the guardian of the estate of a ward or another person interested
in the ward's welfare, the court may order that the guardianship of
the estate of the ward terminate and be settled and closed if the
court finds that the ward no longer needs a guardian of the estate
because all of the ward's assets have been placed in an ABLE account
established in accordance with the Texas Achieving a Better Life
Experience (ABLE) Program under Subchapter J, Chapter 54, Education
Code, and the ward is the designated beneficiary of the account.
SECTION 3. 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 established under Subchapter H, Chapter 54,
Education Code, or an ABLE account established in accordance with
the Texas Achieving a Better Life Experience (ABLE) Program under
Subchapter J, 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 established under Subchapter H, Chapter 54,
Education Code, or an ABLE account established in accordance with
the Texas Achieving a Better Life Experience (ABLE) Program under
Subchapter J, 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 4. This Act takes effect September 1, 2017.