| 1 | 1 | | By: Muñoz, Jr. H.B. No. 4624 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | Relating to civil liability of fiduciary or affiliate for failure |
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| 7 | 7 | | to disclose benefits in relation to the affairs of the beneficiary |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 17.45, Texas Business & Commerce Code, |
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| 10 | 10 | | is amended by adding Section 17.45 (17) to read as follows: |
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| 11 | 11 | | (17) "Affiliate" shall have the same meaning as |
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| 12 | 12 | | "Affiliate" under Section 1.002(1) of the Texas Business |
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| 13 | 13 | | Organizations Code. |
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| 14 | 14 | | SECTION 2. Section 17.46(b), Texas Business & Commerce |
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| 15 | 15 | | Code, is amended by adding Section 17.46 (b)(34) to read as follows: |
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| 16 | 16 | | (34) failing by a fiduciary, or his affiliate, to |
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| 17 | 17 | | disclose to or obtain the consent of the beneficiary to the |
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| 18 | 18 | | fiduciary's or affiliate's solicitation, offer of acceptance, or |
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| 19 | 19 | | acceptance of any fee, benefit, or other item of value from another |
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| 20 | 20 | | person providing or proposing to provide goods or services to the |
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| 21 | 21 | | beneficiary on agreement or understanding that the fee, benefit, or |
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| 22 | 22 | | other item of value will influence the conduct of the fiduciary or |
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| 23 | 23 | | his affiliate in relation to the affairs of his or her beneficiary; |
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| 24 | 24 | | provided that this subdivision may not be construed to prohibit a |
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| 25 | 25 | | fiduciary or affiliate from recommending a particular good or |
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| 26 | 26 | | service to his or her beneficiary or from conferring or accepting |
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| 27 | 27 | | non-monetary benefits which are conferred or received by the |
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| 28 | 28 | | fiduciary or affiliate in connection with industry trade fairs or |
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| 29 | 29 | | educational programs. |
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| 30 | 30 | | SECTION 3. This Act takes effect on September 1, 2019. |
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