By Hilbert                                            H.B. No. 2360

         75R6511 CLG-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the transfer of certain property to a custodian under

 1-3     the Uniform Transfers to Minors Act.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 22, Chapter 141, Property Code (Section

 1-6     141.022, Vernon's Texas Property Code), is amended to read as

 1-7     follows:

 1-8           Sec. 22.  APPLICABILITY.  Except as provided by Section 25,

 1-9     this [This] chapter applies to a transfer within the scope of

1-10     Section 3 made after September 1, 1995, if:

1-11                 (1)  the transfer purports to have been made under the

1-12     Texas Uniform Gifts to Minors Act; or

1-13                 (2)  the instrument by which the transfer purports to

1-14     have been made uses in substance the designation "as custodian

1-15     under the Uniform Gifts to Minors Act" or "as custodian under the

1-16     Uniform Transfers to Minors Act" of any other state, and the

1-17     application of this chapter is necessary to validate the transfer.

1-18           SECTION 2.  Chapter 141, Property Code (Section 141.001 et

1-19     seq., Vernon's Texas Property Code), is amended by adding Section

1-20     25 to read as follows:

1-21           Sec. 25.  ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN EXISTENCE

1-22     BEFORE EFFECTIVE DATE OF ACT.  (a)  This section applies only to a

1-23     transfer within the scope of Section 3 made after September 1,

1-24     1997, to a custodian of a custodianship established before

 2-1     September 1, 1995, under the Texas Uniform Gifts to Minors Act.

 2-2           (b)  This chapter does not prevent a person from making

 2-3     additional transfers to a custodianship described by Subsection (a)

 2-4     of this section.  On the direction of the transferor or custodian,

 2-5     custodial property that is transferred to the custodianship shall

 2-6     be commingled with the custodial property of the custodianship

 2-7     established under the Texas Uniform Gifts to Minors Act.  The

 2-8     additional transfers to the custodianship shall be administered and

 2-9     distributed on termination of the custodianship, as prescribed by

2-10     this chapter, except that for purposes of Section 21, the custodian

2-11     shall transfer the custodial property to:

2-12                 (1)  the beneficiary on the date the beneficiary

2-13     attains 18 years of age, or an earlier date as prescribed by

2-14     Section 21; or

2-15                 (2)  the beneficiary's estate if the individual dies

2-16     before the date prescribed by Subdivision (1) of this subsection.

2-17           SECTION 3.  This Act takes effect September 1, 1997, and

2-18     applies only to transfers made under Chapter 141, Property Code, as

2-19     amended by this Act, on or after the effective date of this Act.  A

2-20     transfer made before the effective date of this Act is governed by

2-21     the law in effect on the date on which the transfer was made, and

2-22     the former law is continued in effect for that purpose.

2-23           SECTION 4.  The importance of this legislation and the

2-24     crowded condition of the calendars in both houses create an

2-25     emergency and an imperative public necessity that the

2-26     constitutional rule requiring bills to be read on three several

2-27     days in each house be suspended, and this rule is hereby suspended.