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.