Bill Text: TX HB903 | 2021-2022 | 87th Legislature | Engrossed

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Bill Title: Relating to the settlement of certain claims on behalf of a minor.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2021-05-10 - Referred to State Affairs [HB903 Detail]

Download: Texas-2021-HB903-Engrossed.html

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87R14052 AJA-F
By: Oliverson H.B. No. 903

A BILL TO BE ENTITLED
AN ACT
relating to the settlement of certain claims on behalf of a minor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 6, Civil Practice and Remedies Code, is
amended by adding Chapter 150D to read as follows:
CHAPTER 150D. SETTLEMENT OF CLAIMS INVOLVING MINORS
Sec. 150D.001. AUTHORITY TO SETTLE CLAIM; SETTLEMENT
REQUIREMENTS. (a) A person having legal custody of a minor may
enter into a settlement agreement with a person against whom the
minor has a claim if:
(1) a guardian or guardian ad litem has not been
appointed for the minor;
(2) the total amount of the settlement is $25,000 or
less;
(3) the money to be paid under the settlement
agreement is to be paid as provided by this chapter; and
(4) the person entering into the settlement agreement
on behalf of the minor completes an affidavit or verified statement
that attests that the person has made a reasonable inquiry and that:
(A) to the best of the person's knowledge, the
minor will be fully compensated by the settlement; or
(B) there is no practical way to obtain
additional amounts from the party entering into the settlement
agreement with the minor.
(b) The attorney representing the person entering into the
settlement agreement on behalf of the minor, if any, shall maintain
the affidavit or verified statement completed under Subsection
(a)(4) in the attorney's file until the second anniversary of the
date the minor attains the age of 21 years.
Sec. 150D.002. DEPOSIT INTO COURT REGISTRY. (a) Money
payable to a minor under a settlement agreement entered into under
this chapter shall be deposited into the registry of:
(1) the court in which a civil action asserting the
settled claim was filed; or
(2) if no civil action asserting the claim was filed, a
court in which the claim could have been filed.
(b) A court order is not required to make a deposit under
this section.
Sec. 150D.003. PAYMENT BY ANNUITY PURCHASE. If the money
payable under the settlement agreement is to be paid by the payment
of premium to purchase an annuity, the payment must be made by
direct payment to the provider of the annuity with the minor
designated as the sole beneficiary of the annuity.
Sec. 150D.004. WITHDRAWAL OF MONEY. Money deposited into a
court registry under this chapter may not be withdrawn, removed,
paid out, or transferred to any person, including the minor,
except:
(1) pursuant to a court order;
(2) on the minor's attainment of 18 years of age; or
(3) on the minor's death.
Sec. 150D.005. BINDING EFFECT OF SETTLEMENT. If a
settlement agreement is entered into in compliance with Section
150D.001, the signature of the person entering into the settlement
agreement on behalf of the minor is binding on the minor without the
need for further court approval or review and has the same force and
effect as if the minor were a competent adult entering into the
settlement agreement.
Sec. 150D.006. LIABILITY FOR SETTLEMENT. (a) A person
acting in good faith on behalf of a minor under this chapter is not
liable to the minor for the money paid in settlement or for any
other claim arising out of the settlement.
(b) A person against whom a minor has a claim that settles
the claim with the minor in good faith under this chapter is not
liable to the minor for any claim arising from the settlement of the
claim.
SECTION 2. Section 141.008, Property Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) Subject to Subsections (b), [and] (c), and (d), a person
who is not subject to Section 141.006 or 141.007 and who holds
property, including a benefit plan of a minor who does not have a
guardian, or who owes a liquidated debt to a minor who does not have
a guardian may make an irrevocable transfer to a custodian for the
benefit of the minor under Section 141.010.
(d) This section does not apply to a debt incurred under a
settlement agreement governed by Chapter 150D, Civil Practice and
Remedies Code.
SECTION 3. The change in law made by this Act applies only
to a settlement agreement entered into on or after the effective
date of this Act.
SECTION 4. This Act takes effect September 1, 2021.