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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