HBA-ATS S.B. 112 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 112
By: Brown (Hunter)
Civil Practices
3/5/1999
Engrossed



BACKGROUND AND PURPOSE 

Texas law limits the types of investments in which a next friend who
represents a minor or incapacitated plaintiff may invest any money
recovered by the plaintiff.  Presently, only investments in
interest-bearing time deposits in F.D.I.C.-insured financial institutions
doing business in Texas are authorized.  S.B. 112 authorizes a next friend
who represents such a plaintiff to invest any money recovered by the
plaintiff in the Texas tomorrow fund (a fully guaranteed prepaid program
that provides coverage for the full tuition and required fees at any public
college or university in Texas, no matter how much they increase).  In
addition, this bill authorizes a trustee of a management trust created by a
court for the benefit of a ward of the state to invest funds of the trust
in the Texas tomorrow fund. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subsection (a), Section 142.004, Property Code, to
include the Texas tomorrow fund established by Subchapter F (Prepaid Higher
Education Tuition Program), Chapter 54 (Tuition And Fees), Education Code,
among the types of investments in which a next friend who represents a
minor or incapacitated plaintiff is authorized to invest any money
recovered by the plaintiff, if that money is not otherwise managed under
Chapter 142 (Management of Property Recovered in Suit by a Next Friend).
Makes conforming changes. 

SECTION 2.  Amends Section 868, Texas Probate Code, by adding Subsection
(f), to authorize a trustee of a management trust created by a court for
the benefit of a ward of the state to invest funds of the trust in the
Texas tomorrow fund established by Subchapter F, Chapter 54, Education
Code, if the trustee determines that it is in the best interest of the
ward. 

SECTION 3.Emergency clause.
  Effective date: upon passage.