76R9782 MCK-D                          
         By Brown                                               S.B. No. 112
         Substitute the following for S.B. No. 112:
         By Nixon                                           C.S.S.B. No. 112
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to investing in the Texas tomorrow fund.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 142.004, Property Code, is amended by
 1-5     amending Subsection (a) and adding Subsection (e) to read as
 1-6     follows:
 1-7           (a)  In a suit in which a minor or incapacitated person who
 1-8     has no legal guardian is represented by a next friend, any money
 1-9     recovered by the plaintiff, if not otherwise managed under this
1-10     chapter, may be invested:
1-11                 (1)  by the next friend in:
1-12                       (A)  the Texas tomorrow fund established by
1-13     Subchapter F, Chapter 54, Education Code; or
1-14                       (B)  interest-bearing time deposits in a
1-15     financial institution doing business in this state and insured by
1-16     the F.D.I.C.; or
1-17                 (2)  by the clerk of the court, on written order of the
1-18     court of proper jurisdiction, in:
1-19                       (A)  interest-bearing deposits in a financial
1-20     institution doing business in this state that is insured by the
1-21     Federal Deposit Insurance Corporation;
1-22                       (B)  United States treasury bills;
1-23                       (C)  an eligible interlocal investment pool that
1-24     meets the requirements of Sections 2256.016, 2256.017, and
 2-1     2256.019, Government Code; [or]
 2-2                       (D)  a no-load money market mutual fund, if the
 2-3     fund:
 2-4                             (i)  is regulated by the Securities and
 2-5     Exchange Commission;
 2-6                             (ii)  has a dollar weighted average stated
 2-7     maturity of 90 days or fewer; and
 2-8                             (iii)  includes in its investment
 2-9     objectives the maintenance of a stable net asset value of $1 for
2-10     each share; or
2-11                       (E)  the Texas tomorrow fund established by
2-12     Subchapter F, Chapter 54, Education Code.
2-13           (e)  If money is invested under Subsection (a)(2)(E), the
2-14     court may waive any bonding requirement.
2-15           SECTION 2.  Section 868, Texas Probate Code, is amended by
2-16     adding Subsection (f) to read as follows:
2-17           (f)  If the trustee determines that it is in the best
2-18     interest of the ward, the trustee may invest funds of the trust in
2-19     the Texas tomorrow fund established by Subchapter F, Chapter 54,
2-20     Education Code.
2-21           SECTION 3.  The importance of this legislation and the
2-22     crowded condition of the calendars in both houses create an
2-23     emergency and an imperative public necessity that the
2-24     constitutional rule requiring bills to be read on three several
2-25     days in each house be suspended, and this rule is hereby suspended,
2-26     and that this Act take effect and be in force from and after its
2-27     passage, and it is so enacted.