By Harris S.B. No. 887
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.