S.B. No. 1764
 
 
 
 
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  withdrawn on or before one year after demand in a bank that does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.
 
 
 
 
 
  ______________________________ ______________________________
     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