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AN ACT
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relating to the investment of funds in, and operation of |
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guardianships of the estate in relation to, accounts established |
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under the Texas Achieving a Better Life Experience (ABLE) Program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1161.003, Estates Code, is amended to |
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read as follows: |
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Sec. 1161.003. INVESTMENTS THAT MEET STANDARD FOR |
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INVESTMENT. A guardian of the estate is considered to have |
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exercised the standard required by Section 1161.002(a) with respect |
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to investing the ward's estate if the guardian invests in the |
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following: |
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(1) bonds or other obligations of the United States; |
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(2) tax-supported bonds of this state; |
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(3) except as limited by Sections 1161.004(b) and (c), |
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tax-supported bonds of a county, district, political subdivision, |
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or municipality in this state; |
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(4) if the payment of the shares or share accounts is |
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insured by the Federal Deposit Insurance Corporation, shares or |
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share accounts of: |
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(A) a state savings and loan association or |
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savings bank that has its main office or a branch office in this |
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state; or |
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(B) a federal savings and loan association or |
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savings bank that has its main office or a branch office in this |
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state; |
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(5) collateral bonds that: |
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(A) are issued by a company incorporated under |
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the laws of this state that has a paid-in capital of $1 million or |
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more; |
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(B) are a direct obligation of the company; and |
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(C) are specifically secured by first mortgage |
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real estate notes or other securities pledged with a trustee; [or] |
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(6) interest-bearing time deposits that may be |
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withdrawn on or before one year after demand in a bank that does |
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business in this state, if the payment of the time deposits is |
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insured by the Federal Deposit Insurance Corporation; or |
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(7) an ABLE account established in accordance with the |
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Texas Achieving a Better Life Experience (ABLE) Program under |
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Subchapter J, Chapter 54, Education Code. |
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SECTION 2. Subchapter A, Chapter 1202, Estates Code, is |
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amended by adding Section 1202.003 to read as follows: |
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Sec. 1202.003. TERMINATION OF GUARDIANSHIP OF ESTATE ON |
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ESTABLISHMENT OF ABLE ACCOUNT BY CERTAIN PERSONS. On application |
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by the guardian of the estate of a ward or another person interested |
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in the ward's welfare, the court may order that the guardianship of |
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the estate of the ward terminate and be settled and closed if the |
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court finds that the ward no longer needs a guardian of the estate |
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because all of the ward's assets have been placed in an ABLE account |
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established in accordance with the Texas Achieving a Better Life |
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Experience (ABLE) Program under Subchapter J, Chapter 54, Education |
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Code, and the ward is the designated beneficiary of the account. |
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SECTION 3. Section 142.004(a), Property Code, is amended to |
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read as follows: |
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(a) In a suit in which a minor or incapacitated person who |
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has no legal guardian is represented by a next friend or an |
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appointed guardian ad litem, any money recovered by the plaintiff, |
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if not otherwise managed under this chapter, may be invested: |
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(1) by the next friend or guardian ad litem in: |
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(A) a higher education savings plan established |
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under Subchapter G, Chapter 54, Education Code, [or] a prepaid |
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tuition program established under Subchapter H, Chapter 54, |
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Education Code, or an ABLE account established in accordance with |
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the Texas Achieving a Better Life Experience (ABLE) Program under |
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Subchapter J, Chapter 54, Education Code; or |
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(B) interest-bearing time deposits in a |
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financial institution doing business in this state and insured by |
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the Federal Deposit Insurance Corporation; or |
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(2) by the clerk of the court, on written order of the |
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court of proper jurisdiction, in: |
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(A) a higher education savings plan established |
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under Subchapter G, Chapter 54, Education Code, [or] a prepaid |
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tuition program established under Subchapter H, Chapter 54, |
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Education Code, or an ABLE account established in accordance with |
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the Texas Achieving a Better Life Experience (ABLE) Program under |
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Subchapter J, Chapter 54, Education Code; |
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(B) interest-bearing deposits in a financial |
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institution doing business in this state and insured by the Federal |
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Deposit Insurance Corporation; |
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(C) United States treasury bills; |
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(D) an eligible interlocal investment pool that |
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meets the requirements of Sections 2256.016, 2256.017, and |
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2256.019, Government Code; or |
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(E) a no-load money market mutual fund, if the |
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fund: |
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(i) is regulated by the Securities and |
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Exchange Commission; |
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(ii) has a dollar weighted average stated |
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maturity of 90 days or fewer; and |
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(iii) includes in its investment objectives |
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the maintenance of a stable net asset value of $1 for each share. |
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SECTION 4. This Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1764 passed the Senate on |
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April 26, 2017, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1764 passed the House on |
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May 24, 2017, by the following vote: Yeas 146, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |