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A BILL TO BE ENTITLED
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AN ACT
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Relating to civil liability of fiduciary or affiliate for failure |
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to disclose benefits in relation to the affairs of the beneficiary |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 17.45, Texas Business & Commerce Code, |
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is amended by adding Section 17.45 (17) to read as follows: |
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(17) "Affiliate" shall have the same meaning as |
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"Affiliate" under Section 1.002(1) of the Texas Business |
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Organizations Code. |
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SECTION 2. Section 17.46(b), Texas Business & Commerce |
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Code, is amended by adding Section 17.46 (b)(34) to read as follows: |
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(34) failing by a fiduciary, or his affiliate, to |
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disclose to or obtain the consent of the beneficiary to the |
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fiduciary's or affiliate's solicitation, offer of acceptance, or |
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acceptance of any fee, benefit, or other item of value from another |
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person providing or proposing to provide goods or services to the |
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beneficiary on agreement or understanding that the fee, benefit, or |
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other item of value will influence the conduct of the fiduciary or |
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his affiliate in relation to the affairs of his or her beneficiary; |
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provided that this subdivision may not be construed to prohibit a |
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fiduciary or affiliate from recommending a particular good or |
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service to his or her beneficiary or from conferring or accepting |
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non-monetary benefits which are conferred or received by the |
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fiduciary or affiliate in connection with industry trade fairs or |
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educational programs. |
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SECTION 3. This Act takes effect on September 1, 2019. |