SRC-JBJ C.S.S.B. 1388 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1388
76R12870 PAM-DBy: Shapleigh
Jurisprudence
4/20/1999
Committee Report (Substituted)


DIGEST 

Currently, a state court does not have the discretion to provide for a
structured settlement in a personal injury recovery suit for a minor or an
incapacitated person.  In addition, the Texas Property Code only provides
limited fund management options for the persons who are represented by an
appointed guardian ad litem and receive proceeds under a personal injury
suit.  Changing the Property Code would allow a court to provide for a
structured settlement and an investment of funds from the proceeds in the
personal injury suit of the persons.  C.S.S.B. 1388 would authorize a court
to direct the management of property received in a suit for the benefit of
a minor or an incapacitated person. 

PURPOSE

As proposed, C.S.S.B. 1388 authorizes a court to direct the management of
property received in a suit for the benefit of a minor or an incapacitated
person. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends the heading to Chapter 142, Property Code, as follows:

CHAPTER 142.  New heading:  MANAGEMENT OF PROPERTY RECOVERED IN SUIT BY A
NEXT FRIEND OR GUARDIAN AD LITEM 

SECTION 2.  Amends Section 142.001(a), Property Code, to include a guardian
ad litem in certain court considerations and procedures involving a minor
or incapacitated person.  

SECTION 3.  Amends Section 142.002, Property Code, to make conforming and
nonsubstantive changes. 

SECTION 4.  Amends Sections 142.004(a) and (b), Property Code, to authorize
a court, when certain monies are withdrawn, to order the funds to be turned
over to a person who is a minor, rather than person, is entitled to receive
the money and has reached the age of 21, or on a finding that the
incapacitated person entitled to receive the money is no longer under the
disability.  Makes conforming and nonsubstantive changes. 

SECTION 5.  Amends Chapter 142, Property Code, by adding Sections 142.008
and 142.009, as follows: 

Sec. 142.008.  STRUCTURED SETTLEMENT.  Authorizes the court, in certain
suits with a minor or incapacitated person, to provide for a structured
settlement that provides payments and certain funding.  Sets forth
requirements for a person who is obligated to provide funding for the
structured settlement.   

Sec. 142.009.  ANNUITY CONTRACT REQUIREMENTS FOR STRUCTURED SETTLEMENT.
Requires an annuity contract that funds a structured settlement provided by
Section 142.008 to be provided by only certain insurance companies.  Sets
forth requirements for the insurance company.  Authorizes the court to
consider certain investment ratings of an insurance company in approving
the insurance company. 
 
SECTION 6. Effective date: September 1, 1999.

SECTION 7.  Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 4.  

Deletes proposed changes to Section 142.004(c), Property Code, regarding
the withdrawal of money invested under this section.   

SECTION 5.

Deletes proposed changes to Sections 142.005(a), (d), and (f), Property
Code, regarding funds in a suit or trust for a minor.  Redesignates
SECTIONS 6-8 as SECTIONS 5-7.