1-1 By: Harris S.B. No. 887
1-2 (In the Senate - Filed March 3, 1997; March 5, 1997, read
1-3 first time and referred to Committee on Jurisprudence;
1-4 March 26, 1997, reported favorably, as amended, by the following
1-5 vote: Yeas 7, Nays 0; March 26, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Harris
1-7 Amend S.B. No. 887 as follows:
1-8 (1) In SECTION 2 of the bill, page 1, line 36, strike "1997"
1-9 and substitute "1995".
1-10 (2) In SECTION 3 of the bill, page 1, line 54, strike "1997"
1-11 and substitute "1995".
1-12 A BILL TO BE ENTITLED
1-13 AN ACT
1-14 relating to the transfer of certain property to a custodian under
1-15 the Uniform Transfers to Minors Act.
1-16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-17 SECTION 1. Section 22, Chapter 141, Property Code (Section
1-18 141.022, Vernon's Texas Property Code), is amended to read as
1-19 follows:
1-20 Sec. 22. APPLICABILITY. Except as provided by Section 25,
1-21 this [This] chapter applies to a transfer within the scope of
1-22 Section 3 made after September 1, 1995, if:
1-23 (1) the transfer purports to have been made under the
1-24 Texas Uniform Gifts to Minors Act; or
1-25 (2) the instrument by which the transfer purports to
1-26 have been made uses in substance the designation "as custodian
1-27 under the Uniform Gifts to Minors Act" or "as custodian under the
1-28 Uniform Transfers to Minors Act" of any other state, and the
1-29 application of this chapter is necessary to validate the transfer.
1-30 SECTION 2. Chapter 141, Property Code (Section 141.001 et
1-31 seq., Vernon's Texas Property Code), is amended by adding Section
1-32 25 to read as follows:
1-33 Sec. 25. ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN
1-34 EXISTENCE BEFORE EFFECTIVE DATE OF ACT. (a) This section applies
1-35 only to a transfer within the scope of Section 3 made after
1-36 September 1, 1997, to a custodian of a custodianship established
1-37 before September 1, 1995, under the Texas Uniform Gifts to Minors
1-38 Act.
1-39 (b) This chapter does not prevent a person from making
1-40 additional transfers to a custodianship described by Subsection
1-41 (a). On the direction of the transferor or custodian, custodial
1-42 property that is transferred to the custodianship shall be
1-43 commingled with the custodial property of the custodianship
1-44 established under the Texas Uniform Gifts to Minors Act. The
1-45 additional transfers to the custodianship shall be administered and
1-46 distributed on termination of the custodianship, as prescribed by
1-47 this chapter, except that for purposes of Section 21, the custodian
1-48 shall transfer the custodial property to:
1-49 (1) the beneficiary on the date the beneficiary
1-50 attains 18 years of age or an earlier date as prescribed by Section
1-51 21; or
1-52 (2) the beneficiary's estate if the individual dies
1-53 before the date prescribed by Subdivision (1).
1-54 SECTION 3. This Act takes effect September 1, 1997, and
1-55 applies only to transfers made under Chapter 141, Property Code, as
1-56 amended by this Act, on or after the effective date of this Act. A
1-57 transfer made before the effective date of this Act is governed by
1-58 the law in effect on the date on which the transfer was made, and
1-59 the former law is continued in effect for that purpose.
1-60 SECTION 4. The importance of this legislation and the
1-61 crowded condition of the calendars in both houses create an
1-62 emergency and an imperative public necessity that the
1-63 constitutional rule requiring bills to be read on three several
1-64 days in each house be suspended, and this rule is hereby suspended.
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