75R9729 BEM-F                           

         By Naishtat                                           H.B. No. 1316

         Substitute the following for H.B. No. 1316:

         By Hartnett                                       C.S.H.B. No. 1316

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the investment of assets by the guardian of an estate.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 856(a), Texas Probate Code, is amended to

 1-5     read as follows:

 1-6           (a)  If a guardian of an estate deems it is in the best

 1-7     interests of the ward the guardian is appointed to represent to

 1-8     invest on behalf of the ward in the Texas Tomorrow Fund established

 1-9     by Subchapter F, Chapter 54, Education Code, or to invest in or

1-10     sell any property or security in which a trustee is authorized to

1-11     invest by either Section 113.056 or Subchapter F, Chapter 113, of

1-12     the Texas Trust Code (Subtitle B, Title 9, Property Code), and the

1-13     investment or sale is not expressly permitted by other sections of

1-14     this chapter, the guardian may file a written application in the

1-15     court in which the guardianship is pending that asks for an order

1-16     authorizing the guardian to make the desired investment or sale and

1-17     states the reason why the guardian is of the opinion that the

1-18     investment or sale would be beneficial to the ward.  A citation or

1-19     notice is not necessary under this subsection unless ordered by the

1-20     court.

1-21           SECTION 2.  A court may modify any guardianship in effect on

1-22     September 1, 1997, to conform to the requirements of the Texas

1-23     Probate Code, as amended by this Act, on the court's own motion or

1-24     on application by the guardian or any other interested person or

 2-1     entity.

 2-2           SECTION 3.  This Act takes effect September 1, 1997.  Except

 2-3     as provided by Section 2 of this Act, the change  in law made by

 2-4     this Act applies only to a person appointed by a court to serve as

 2-5     guardian on or after the effective date of this Act.  A person

 2-6     appointed by a court to serve as guardian before the effective date

 2-7     of this Act is governed by the law in effect on the date of the

 2-8     person's appointment, and that law continues in effect for that

 2-9     purpose.

2-10           SECTION 4.  The importance of this legislation and the

2-11     crowded condition of the calendars in both houses create an

2-12     emergency and an imperative public necessity that the

2-13     constitutional rule requiring bills to be read on three several

2-14     days in each house be suspended, and this rule is hereby suspended.