Bill Text: TX SB1764 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: 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.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2017-06-15 - Effective on 9/1/17 [SB1764 Detail]
Download: Texas-2017-SB1764-Enrolled.html
S.B. No. 1764 |
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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; [ |
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(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withdrawn on or before one year after demand in a bank that does | ||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, [ |
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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, [ |
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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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1764 passed the Senate on | ||
April 26, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1764 passed the House on | ||
May 24, 2017, by the following vote: Yeas 146, Nays 0, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |