SRC-JLB S.B. 1588 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1588
By: Whitmire
Jurisprudence
3/28/2003
As Filed


DIGEST AND PURPOSE 

Currently, investments by Texans in Texas' two 529 college savings plans
enjoy creditor protection.  However, no similar protection exists for
Texans investing in the 529 plans of other states.  As proposed, S.B. 1588
provides protection of college savings plans from attachment, execution,
and seizure to satisfy debt. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 42, Title 5, Property Code, by adding Section
42.0022, as follows: 
 
Section 42.0022.  Additional Exemption for College Savings Plan.  (a)
Provides that in addition to the exemption prescribed by Section 42.001, a
person's right to the assets held in or to receive payments under any fund
or plan established under Chapter 54F, Education Code, any fund or plan
established under Chapter 54G, Education Code, or any qualified tuition
program of any state meeting the requirements of Section 529 of the
Internal Revenue Code of 1986, is exempt from attachment, execution, and
seizure for the satisfaction of debts.  Provides that if this subsection
is held invalid or preempted by federal law in whole or in part or in
certain circumstances, the subsection remains in effect in all other
respects to the maximum extent permitted by law. 
 
SECTION 2.  (a)  Effective date:  September 1, 2003.

 (b)  Makes application of this Act prospective.