By: Harris S.B. No. 887
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the transfer of certain property to a custodian under
1-2 the Uniform Transfers to Minors Act.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 22, Chapter 141, Property Code (Section
1-5 141.022, Vernon's Texas Property Code), is amended to read as
1-6 follows:
1-7 Sec. 22. APPLICABILITY. Except as provided by Section 25,
1-8 this [This] chapter applies to a transfer within the scope of
1-9 Section 3 made after September 1, 1995, if:
1-10 (1) the transfer purports to have been made under the
1-11 Texas Uniform Gifts to Minors Act; or
1-12 (2) the instrument by which the transfer purports to
1-13 have been made uses in substance the designation "as custodian
1-14 under the Uniform Gifts to Minors Act" or "as custodian under the
1-15 Uniform Transfers to Minors Act" of any other state, and the
1-16 application of this chapter is necessary to validate the transfer.
1-17 SECTION 2. Chapter 141, Property Code (Section 141.001 et
1-18 seq., Vernon's Texas Property Code), is amended by adding Section
1-19 25 to read as follows:
1-20 Sec. 25. ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN
1-21 EXISTENCE BEFORE EFFECTIVE DATE OF ACT. (a) This section applies
1-22 only to a transfer within the scope of Section 3 made after
1-23 September 1, 1995, to a custodian of a custodianship established
2-1 before September 1, 1995, under the Texas Uniform Gifts to Minors
2-2 Act.
2-3 (b) This chapter does not prevent a person from making
2-4 additional transfers to a custodianship described by Subsection
2-5 (a). On the direction of the transferor or custodian, custodial
2-6 property that is transferred to the custodianship shall be
2-7 commingled with the custodial property of the custodianship
2-8 established under the Texas Uniform Gifts to Minors Act. The
2-9 additional transfers to the custodianship shall be administered and
2-10 distributed on termination of the custodianship, as prescribed by
2-11 this chapter, except that for purposes of Section 21, the custodian
2-12 shall transfer the custodial property to:
2-13 (1) the beneficiary on the date the beneficiary
2-14 attains 18 years of age or an earlier date as prescribed by Section
2-15 21; or
2-16 (2) the beneficiary's estate if the individual dies
2-17 before the date prescribed by Subdivision (1).
2-18 SECTION 3. This Act takes effect September 1, 1997, and
2-19 applies only to transfers made under Chapter 141, Property Code, as
2-20 amended by this Act, on or after September 1, 1995. A transfer
2-21 made before September 1, 1995, is governed by the law in effect on
2-22 the date on which the transfer was made, and the former law is
2-23 continued in effect for that purpose.
2-24 SECTION 4. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended.