Texas 2017 - 85th Regular

Texas Senate Bill SB1764 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1764
	1	+	By: Zaffirini, et al. S.B. No. 1764
	2	+	(Burkett)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the investment of funds in, and operation of
6	8		guardianships of the estate in relation to, accounts established
7	9		under the Texas Achieving a Better Life Experience (ABLE) Program.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Section 1161.003, Estates Code, is amended to
10	12		read as follows:
11	13		Sec. 1161.003. INVESTMENTS THAT MEET STANDARD FOR
12	14		INVESTMENT. A guardian of the estate is considered to have
13	15		exercised the standard required by Section 1161.002(a) with respect
14	16		to investing the ward's estate if the guardian invests in the
15	17		following:
16	18		(1) bonds or other obligations of the United States;
17	19		(2) tax-supported bonds of this state;
18	20		(3) except as limited by Sections 1161.004(b) and (c),
19	21		tax-supported bonds of a county, district, political subdivision,
20	22		or municipality in this state;
21	23		(4) if the payment of the shares or share accounts is
22	24		insured by the Federal Deposit Insurance Corporation, shares or
23	25		share accounts of:
24	26		(A) a state savings and loan association or
25	27		savings bank that has its main office or a branch office in this
26	28		state; or
27	29		(B) a federal savings and loan association or
28	30		savings bank that has its main office or a branch office in this
29	31		state;
30	32		(5) collateral bonds that:
31	33		(A) are issued by a company incorporated under
32	34		the laws of this state that has a paid-in capital of $1 million or
33	35		more;
34	36		(B) are a direct obligation of the company; and
35	37		(C) are specifically secured by first mortgage
36	38		real estate notes or other securities pledged with a trustee; [or]
37	39		(6) interest-bearing time deposits that may be
38	40		withdrawn on or before one year after demand in a bank that does
39	41		business in this state, if the payment of the time deposits is
40	42		insured by the Federal Deposit Insurance Corporation; or
41	43		(7) an ABLE account established in accordance with the
42	44		Texas Achieving a Better Life Experience (ABLE) Program under
43	45		Subchapter J, Chapter 54, Education Code.
44	46		SECTION 2. Subchapter A, Chapter 1202, Estates Code, is
45	47		amended by adding Section 1202.003 to read as follows:
46	48		Sec. 1202.003. TERMINATION OF GUARDIANSHIP OF ESTATE ON
47	49		ESTABLISHMENT OF ABLE ACCOUNT BY CERTAIN PERSONS. On application
48	50		by the guardian of the estate of a ward or another person interested
49	51		in the ward's welfare, the court may order that the guardianship of
50	52		the estate of the ward terminate and be settled and closed if the
51	53		court finds that the ward no longer needs a guardian of the estate
52	54		because all of the ward's assets have been placed in an ABLE account
53	55		established in accordance with the Texas Achieving a Better Life
54	56		Experience (ABLE) Program under Subchapter J, Chapter 54, Education
55	57		Code, and the ward is the designated beneficiary of the account.
56	58		SECTION 3. Section 142.004(a), Property Code, is amended to
57	59		read as follows:
58	60		(a) In a suit in which a minor or incapacitated person who
59	61		has no legal guardian is represented by a next friend or an
60	62		appointed guardian ad litem, any money recovered by the plaintiff,
61	63		if not otherwise managed under this chapter, may be invested:
62	64		(1) by the next friend or guardian ad litem in:
63	65		(A) a higher education savings plan established
64	66		under Subchapter G, Chapter 54, Education Code, [or] a prepaid
65	67		tuition program established under Subchapter H, Chapter 54,
66	68		Education Code, or an ABLE account established in accordance with
67	69		the Texas Achieving a Better Life Experience (ABLE) Program under
68	70		Subchapter J, Chapter 54, Education Code; or
69	71		(B) interest-bearing time deposits in a
70	72		financial institution doing business in this state and insured by
71	73		the Federal Deposit Insurance Corporation; or
72	74		(2) by the clerk of the court, on written order of the
73	75		court of proper jurisdiction, in:
74	76		(A) a higher education savings plan established
75	77		under Subchapter G, Chapter 54, Education Code, [or] a prepaid
76	78		tuition program established under Subchapter H, Chapter 54,
77	79		Education Code, or an ABLE account established in accordance with
78	80		the Texas Achieving a Better Life Experience (ABLE) Program under
79	81		Subchapter J, Chapter 54, Education Code;
80	82		(B) interest-bearing deposits in a financial
81	83		institution doing business in this state and insured by the Federal
82	84		Deposit Insurance Corporation;
83	85		(C) United States treasury bills;
84	86		(D) an eligible interlocal investment pool that
85	87		meets the requirements of Sections 2256.016, 2256.017, and
86	88		2256.019, Government Code; or
87	89		(E) a no-load money market mutual fund, if the
88	90		fund:
89	91		(i) is regulated by the Securities and
90	92		Exchange Commission;
91	93		(ii) has a dollar weighted average stated
92	94		maturity of 90 days or fewer; and
93	95		(iii) includes in its investment objectives
94	96		the maintenance of a stable net asset value of $1 for each share.
95	97		SECTION 4. This Act takes effect September 1, 2017.
96		-	______________________________ ______________________________
97		-	President of the Senate Speaker of the House
98		-	I hereby certify that S.B. No. 1764 passed the Senate on
99		-	April 26, 2017, by the following vote: Yeas 31, Nays 0.
100		-	______________________________
101		-	Secretary of the Senate
102		-	I hereby certify that S.B. No. 1764 passed the House on
103		-	May 24, 2017, by the following vote: Yeas 146, Nays 0, two
104		-	present not voting.
105		-	______________________________
106		-	Chief Clerk of the House
107		-	Approved:
108		-	______________________________
109		-	Date
110		-	______________________________
111		-	Governor