H.B. No. 1316

GUARDIANSHIP INVESTMENTS IN TOMORROW FUND

Bill Description

Governor Bush signed HB 1316 on May 29, 1997. HB 1316 becomes effective September 1, 1997.

HB 1316 permits the guardian of an estate to invest in the Texas Tomorrow Fund, the state-run prepaid tuition program, upon application to and approval of the court.

HB 1316 is one of three bills (HB 2189 and SB 997 are the others) which contains an optional modification provision to make the 1997 amendments apply to pre-existing guardianships. Section 2 of HB 1316 provides:

SECTION 2.  A court may modify any guardianship in effect on September 1, 1997, to conform to the requirements of the Texas Probate Code, as amended by this Act, on the court's own motion or on application by the guardian or any other interested person or entity.


As is discussed with respect to HB 2189 (click here for discussion of HB 2189), this modification provision could present problems. Many guardians asked for and received court permission to invest in the Texas Tomorrow Fund prior to September 1, 1997. Did such guardians (and the courts) lack the authority to make those investments? If so, does modification of the guardianship cleanse the pre-1997 investment?

As a practical matter, this shouldn't be much of a problem with respect to HB 1316. Nevertheless, the guardian probably should get the guardianship modified so that HB 1316, HB 2189 and SB 997 apply.


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Copyright © 1997 by Glenn M. Karisch. This page was last revised on June 23, 1997.