1-1 By: Harris of Tarrant S.B. No. 629
1-2 (In the Senate - Filed March 4, 1993; March 8, 1993, read
1-3 first time and referred to Committee on Economic Development;
1-4 May 11, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; May 11, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 629 By: Harris of Tarrant
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the investment of funds by certain trustees in the
1-24 securities of an open-end or closed-end management investment
1-25 company or investment trust.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Section 113.053, Property Code, is amended by
1-28 amending Subsection (a) and adding Subsection (g) to read as
1-29 follows:
1-30 (a) Except as provided by Subsections (b), (c), (d), (e),
1-31 <and> (f), and (g), a trustee shall not directly or indirectly buy
1-32 or sell trust property from or to:
1-33 (1) the trustee or an affiliate;
1-34 (2) a director, officer, or employee of the trustee or
1-35 an affiliate;
1-36 (3) a relative of the trustee; or
1-37 (4) the trustee's employer, partner, or other business
1-38 associate.
1-39 (g) In addition to other investments authorized by law for
1-40 the investment of funds held by a fiduciary or by the instrument
1-41 governing the fiduciary relationship, and notwithstanding any other
1-42 provision of law and subject to the standard contained in Section
1-43 113.056, a bank or trust company acting as a fiduciary, agent, or
1-44 otherwise, in the exercise of its investment discretion or at the
1-45 direction of another person authorized to direct the investment of
1-46 funds held by the bank or trust company as fiduciary, may invest
1-47 and reinvest in the securities of an open-end or closed-end
1-48 management investment company or investment trust registered under
1-49 the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et
1-50 seq.) if the portfolio of the investment company or investment
1-51 trust consists substantially of investments that are not prohibited
1-52 by the governing instrument. The fact that the bank or trust
1-53 company or an affiliate of the bank or trust company provides
1-54 services to the investment company or investment trust, such as
1-55 those of an investment advisor, custodian, transfer agent,
1-56 registrar, sponsor, distributor, manager, or otherwise, and
1-57 receives compensation for those services does not preclude the bank
1-58 or trust company from investing or reinvesting in the securities if
1-59 the compensation is disclosed by prospectus, account statement, or
1-60 otherwise. An executor or administrator of an estate under a
1-61 dependent administration or a guardian of an estate shall not so
1-62 invest or reinvest unless specifically authorized by the court in
1-63 which such estate or guardianship is pending.
1-64 SECTION 2. The importance of this legislation and the
1-65 crowded condition of the calendars in both houses create an
1-66 emergency and an imperative public necessity that the
1-67 constitutional rule requiring bills to be read on three several
1-68 days in each house be suspended, and this rule is hereby suspended,
2-1 and that this Act take effect and be in force from and after its
2-2 passage, and it is so enacted.
2-3 * * * * *
2-4 Austin,
2-5 Texas
2-6 May 11, 1993
2-7 Hon. Bob Bullock
2-8 President of the Senate
2-9 Sir:
2-10 We, your Committee on Economic Development to which was referred
2-11 S.B. No. 629, have had the same under consideration, and I am
2-12 instructed to report it back to the Senate with the recommendation
2-13 that it do not pass, but that the Committee Substitute adopted in
2-14 lieu thereof do pass and be printed.
2-15 Parker,
2-16 Chairman
2-17 * * * * *
2-18 WITNESSES
2-19 FOR AGAINST ON
2-20 ___________________________________________________________________
2-21 Name: Sherry A. McGillicuddy x
2-22 Representing: Frost National Bank
2-23 City: Austin
2-24 -------------------------------------------------------------------
2-25 Name: Fred C. Weekley x
2-26 Representing: TBA/Trust Financial/Bank One
2-27 City: Dallas
2-28 -------------------------------------------------------------------
2-29 Name: Greg Hooser x
2-30 Representing: Tx Bankers Assn.-Trust Div.
2-31 City: Austin
2-32 -------------------------------------------------------------------
2-33 Name: Dianne Hughes x
2-34 Representing: Trust Financial Ser/TBA
2-35 City: Austin
2-36 -------------------------------------------------------------------
2-37 Name: Rob Norcross x
2-38 Representing: Texas Bankers Association
2-39 City: Austin
2-40 -------------------------------------------------------------------