1-1     By:  Thompson (Senate Sponsor - Harris)               H.B. No. 1126

 1-2           (In the Senate - Received from the House April 21, 1997;

 1-3     April 22, 1997, read first time and referred to Committee on

 1-4     Jurisprudence; May 6, 1997, reported favorably by the following

 1-5     vote:  Yeas 6, Nays 0; May 6, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the sale or distribution of the property of minors and

 1-9     certain wards.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Sections 887(a) and (e), Texas Probate Code, are

1-12     amended to read as follows:

1-13           (a)  When a resident person who is a minor or other

1-14     incapacitated person, or the former ward of a guardianship

1-15     terminated under Subpart C, Part 4, of this code, who are referred

1-16     to in this section as "creditor," are without a legal guardian of

1-17     the person's estate, and the person is entitled to money in an

1-18     amount that is $50,000 [$25,000] or less, the right to which is

1-19     liquidated and is uncontested in any pending lawsuit, the debtor

1-20     may pay the money to the county clerk of the county in which the

1-21     creditor resides to the account of the creditor, giving the

1-22     creditor's name, the creditor's social security identification

1-23     number, the nature of the creditor's disability, and, if the

1-24     creditor is a minor, the minor's age, and the creditor's

1-25     post-office address.  The receipt for the money signed by the clerk

1-26     is binding on the creditor as of the date of receipt and to the

1-27     extent of the payment.  The clerk, by letter mailed to the address

1-28     given by the debtor, shall apprise the creditor of the fact that

1-29     the deposit was made.  On receipt of the payment by the clerk, the

1-30     clerk shall call the receipt of the payment to the court's

1-31     attention and shall invest the money as authorized under this

1-32     chapter pursuant to court order in the name and for the account of

1-33     the minor or other person entitled to the money.  Any increase,

1-34     dividend, or income from an investment made under this section

1-35     shall be credited to the account of the minor or other person

1-36     entitled to the investment.  Any money that is deposited under the

1-37     terms of this section that has not been paid out shall be subject

1-38     to the provisions of this chapter not later than October 1, 1993.

1-39           (e)  When a nonresident minor, a nonresident person who is

1-40     adjudged by a court of competent jurisdiction to be incapacitated,

1-41     or the former ward of a guardianship terminated under Subpart C,

1-42     Part 4, of this code who has no legal guardian qualified in this

1-43     state is entitled to money in an amount that is not more than

1-44     $50,000 [$25,000] owing as a result of transactions within this

1-45     state, the right to which is liquidated and is uncontested in any

1-46     pending lawsuit in this state, the debtor in this state may pay the

1-47     money to the guardian of the creditor who is duly qualified in the

1-48     domiciliary jurisdiction or to the county clerk of any county in

1-49     this state in which real property owned by the nonresident person

1-50     is located.  If the person is not known to own any real property in

1-51     any county in this state the debtor has the right to pay the money

1-52     to the county clerk of the county of this state in which the debtor

1-53     resides.  In either case, the debtor's payment to the clerk is for

1-54     the use and benefit and for the account of the nonresident

1-55     creditor.  The receipt for the payment signed by the clerk that

1-56     recites the name of the creditor and the post office address of the

1-57     creditor, if known, is binding on the creditor as of the date and

1-58     to the extent of the payment.  The clerk shall handle the money

1-59     paid to the clerk by the debtor in the same manner as provided for

1-60     cases of payments to the accounts of residents of this state under

1-61     Subsections (a)-(d) of this section.  All applicable provisions of

1-62     Subsections (a)-(d) of this section apply to the handling and

1-63     disposition of money or any increase, dividend, or income paid to

1-64     the clerk for the use, benefit, and account of the nonresident

 2-1     creditor.

 2-2           SECTION 2.  Section 889(a), Texas Probate Code, is amended to

 2-3     read as follows:

 2-4           (a)  When the net value of the minor's interest in real or

 2-5     personal property in an estate does not exceed $50,000 [$25,000], a

 2-6     natural or adoptive parent, or the managing conservator, of a minor

 2-7     who is not a ward may apply to the court for an order to sell the

 2-8     real or personal property of a minor in an estate without being

 2-9     appointed guardian.  A minor may not disaffirm a sale of property

2-10     pursuant to a court order under this section.

2-11           SECTION 3.  The heading of Subpart F, Part 5, Chapter XIII,

2-12     Texas Probate Code, is amended to read as follows:

2-13                    SUBPART F.  SALE OF PROPERTY OF MINORS AND

2-14                            CERTAIN WARDS [MINOR]

2-15           SECTION 4.  Subpart F, Part 5, Chapter XIII, Texas Probate

2-16     Code, is amended by adding Section 890 to read as follows:

2-17           Sec. 890.  SALE OF PROPERTY OF WARD WITHOUT GUARDIANSHIP OF

2-18     THE ESTATE.  (a)  This section applies only to a ward who has a

2-19     guardian of the person but does not have a guardian of the estate.

2-20           (b)  When a ward has an interest in real or personal property

2-21     in an estate and the net value of the interest does not exceed

2-22     $50,000, the guardian may apply under oath to the court for an

2-23     order to sell the ward's interest in the property without being

2-24     appointed guardian of the estate.  A ward may not disaffirm a sale

2-25     of property pursuant to a court order under this section.

2-26           (c)  Venue for an application under this section is the same

2-27     as venue for an application for the appointment of a guardian for

2-28     the ward.   The application must contain the same information

2-29     required by Section 889(b) of this code.

2-30           (d)  On receipt of the application, the court shall set the

2-31     application for hearing at a date not earlier than five days from

2-32     the date of the filing of the application.  If the court considers

2-33     it necessary, the court may cause citation to be issued.

2-34           (e)  The procedures and evidentiary requirements for a

2-35     hearing of an application filed under this section are the same as

2-36     the procedures and evidentiary requirements for a hearing of an

2-37     application filed under Section 889 of this code.

2-38           (f)  When the court enters the order of sale, the purchaser

2-39     of the property shall pay the proceeds of the sale belonging to the

2-40     ward into the court registry.

2-41           (g)  Nothing in this section prevents the proceeds deposited

2-42     in the court registry from being withdrawn as prescribed by Section

2-43     887 of this code.

2-44           SECTION 5.  This Act takes effect September 1, 1997.

2-45           SECTION 6.  The importance of this legislation and the

2-46     crowded condition of the calendars in both houses create an

2-47     emergency and an imperative public necessity that the

2-48     constitutional rule requiring bills to be read on three several

2-49     days in each house be suspended, and this rule is hereby suspended.

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