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.