HBA-SEP S.B. 1640 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1640
By: Bernsen
Judicial Affairs
4/27/2001
Engrossed



BACKGROUND AND PURPOSE 

Under current law, an individual is not allowed to establish a beneficiary
to a mutual fund account in the event of the mutual fund holder's death.
Senate Bill 1640 provides that a mutual fund account may be transferred to
a designated beneficiary on account of the holder's death.   

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. 

ANALYSIS

Senate Bill 1640 amends the Texas Probate Code to provide that a mutual
fund account is deemed to be nontestamentary.  The change in law made by
this bill applies to a provision for the payment or transfer of a person's
interest in a mutual fund account on the person's death, regardless of when
the provision was executed or the account was established.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.