1-1 By: Grusendorf (Senate Sponsor - Harris of Tarrant) H.B. No. 1441
1-2 (In the Senate - Received from the House May 13, 1993;
1-3 May 14, 1993, read first time and referred to Committee on Economic
1-4 Development; May 21, 1993, reported favorably by the following
1-5 vote: Yeas 6, Nays 0; May 21, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Parker x
1-9 Lucio x
1-10 Ellis x
1-11 Haley x
1-12 Harris of Dallas x
1-13 Harris of Tarrant x
1-14 Leedom x
1-15 Madla x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the investment of funds by certain trustees in the
1-22 securities of an open-end or closed-end management investment
1-23 company or investment trust.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 113.053, Property Code, is amended by
1-26 amending Subsection (a) and adding Subsection (g) to read as
1-27 follows:
1-28 (a) Except as provided by Subsections (b), (c), (d), (e),
1-29 <and> (f), and (g), a trustee shall not directly or indirectly buy
1-30 or sell trust property from or to:
1-31 (1) the trustee or an affiliate;
1-32 (2) a director, officer, or employee of the trustee or
1-33 an affiliate;
1-34 (3) a relative of the trustee; or
1-35 (4) the trustee's employer, partner, or other business
1-36 associate.
1-37 (g) In addition to other investments authorized by law for
1-38 the investment of funds held by a fiduciary or by the instrument
1-39 governing the fiduciary relationship, and notwithstanding any other
1-40 provision of law and subject to the standard contained in Section
1-41 113.056, a bank or trust company acting as a fiduciary, agent, or
1-42 otherwise, in the exercise of its investment discretion or at the
1-43 direction of another person authorized to direct the investment of
1-44 funds held by the bank or trust company as fiduciary, may invest
1-45 and reinvest in the securities of an open-end or closed-end
1-46 management investment company or investment trust registered under
1-47 the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.)
1-48 if the portfolio of the investment company or investment trust
1-49 consists substantially of investments that are not prohibited by
1-50 the governing instrument. The fact that the bank or trust company
1-51 or an affiliate of the bank or trust company provides services to
1-52 the investment company or investment trust, such as those of an
1-53 investment advisor, custodian, transfer agent, registrar, sponsor,
1-54 distributor, manager, or otherwise, and receives compensation for
1-55 those services does not preclude the bank or trust company from
1-56 investing or reinvesting in the securities if the compensation is
1-57 disclosed by prospectus, account statement, or otherwise. An
1-58 executor or administrator of an estate under a dependent
1-59 administration or a guardian of an estate shall not so invest or
1-60 reinvest unless specifically authorized by the court in which such
1-61 estate or guardianship is pending.
1-62 SECTION 2. The importance of this legislation and the
1-63 crowded condition of the calendars in both houses create an
1-64 emergency and an imperative public necessity that the
1-65 constitutional rule requiring bills to be read on three several
1-66 days in each house be suspended, and this rule is hereby suspended,
1-67 and that this Act take effect and be in force from and after its
1-68 passage, and it is so enacted.
2-1 * * * * *
2-2 Austin,
2-3 Texas
2-4 May 21, 1993
2-5 Hon. Bob Bullock
2-6 President of the Senate
2-7 Sir:
2-8 We, your Committee on Economic Development to which was referred
2-9 H.B. No. 1441, have had the same under consideration, and I am
2-10 instructed to report it back to the Senate with the recommendation
2-11 that it do pass and be printed.
2-12 Parker,
2-13 Chairman
2-14 * * * * *
2-15 WITNESSES
2-16 FOR AGAINST ON
2-17 ___________________________________________________________________
2-18 Name: Greg Hooser x
2-19 Representing: Texas Bankers Assn/Trust
2-20 City: Austin
2-21 -------------------------------------------------------------------
2-22 Name: Dianne Hughes x
2-23 Representing: Texas Bankers Assn/Trust
2-24 City: Austin
2-25 -------------------------------------------------------------------
2-26 Name: Laura Smreker x
2-27 Representing: Texas Bankers Association
2-28 City: Austin
2-29 -------------------------------------------------------------------