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.