District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0224 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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	1	+	ENGROSSED ORIGINAL
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8		-	~~AN ACT~~
	8	+	A BILL
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10		-	~~_____________~~
	10	+	25-224
11	11
12	12		IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13	13
14	14		_________________________
15	15
16	16
17	17		To amend Title 19 of the District of Columbia Official Code 19 to enact the Uniform Trust
18		-	Decanting Code to provide clear rules pursuant to which a trustee, acting in accordance
19		-	with fiduciary duties, may modify the terms of a trust to address unanticipated changes in
20		-	beneficiary circumstances and other changes to effectuate the settlor’s general intent, to
21		-	provide appropriate limits on a trustee’s ability to decant, to protect beneficiaries by
22		-	requiring notice and providing that their interests may not be reduced, to protect
23		-	charitable interests by providing that they may not be reduced and requiring notice of a
24		-	protect decanting to the Attorney General, to protect trustees from liability from a
25		-	previous trustee’s decanting, and for other purposes.
26		-
27		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
28		-	act may be cited as the “Uniform Trust Decanting Act of 2024”.
29		-
30		-	Sec. 2. Title 19 of the District of Columbia Official Code is amended as follows:
31		-	(a) The table of contents is amended by inserting the phrase at the end:
32		-	“19. Uniform Trust Decanting Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-1901”.
33		-	(b) A new Chapter 19 is added to read as follows:
34		-	“CHAPTER 19
35		-	“UNIFORM TRUST DECANTING ACT .
36		-	“Sec.
37		-	“19-1901. Short title.
38		-	“19-1902. Definitions.
39		-	“19-1903. Scope.
40		-	“19-1904. Fiduciary duty.
41		-	“19-1905. Application; governing law.
42		-	“19-1906. Reasonable reliance.
43		-	“19-1907. Notice; exercise of decanting power.
44		-	“19-1908. Representation.
45		-	“19-1909. Court involvement.
46		-	“19-1910. Formalities.
47		-	“19-1911. Decanting power under expanded distributive discretion. ENROLLED ORIGINAL
	18	+	1
	19	+	Decanting Code to provide clear rules pursuant to which a trustee, acting in accordance 2
	20	+	with fiduciary duties, may modify the terms of a trust to address unanticipated changes in 3
	21	+	beneficiary circumstances and other changes to effectuate the settlor’s general intent, to 4
	22	+	provide appropriate limits on a trustee’s ability to decant, to protect beneficiaries by 5
	23	+	requiring notice and providing that their interests may not be reduced, to protect 6
	24	+	charitable interests by providing that they may not be reduced and requiring notice of a 7
	25	+	protect decanting to the Attorney General, to protect trustees from liability from a 8
	26	+	previous trustee’s decanting, and for other purposes. 9
	27	+	10
	28	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 11
	29	+	act may be cited as the “Uniform Trust Decanting Amendment Act of 2024.” 12
	30	+	Sec. 2. Title 19 of the District of Columbia Official Code is amended as follows: 13
	31	+	(a) The table of contents is amended by adding at the end the phrase: “19. Uniform Trust 14
	32	+	Decanting Code . . . 19-1901”. 15
	33	+	(b) A new chapter 19 is added to read as follows: 16
	34	+	“CHAPTER 19. 17
	35	+	“UNIFORM TRUST DECANTING ACT 18
	36	+	“Section 19
	37	+	“§ 19-1901. Short title. 20
	38	+	“§ 19-1902. Definitions. 21 ENGROSSED ORIGINAL
48	39
49	40
50	41
51	42
52	43		2
53	44
54		-	“19-1912. Decanting power under limited distributive discretion.
55		-	“19-1913. Trust for beneficiary with disability.
56		-	“19-1914. Protection of charitable interest.
57		-	“19-1915. Trust limitation on decanting.
58		-	“19-1916. Change in compensation.
59		-	“19-1917. Relief from liability and indemnification.
60		-	“19-1918. Removal or replacement of authorized fiduciary.
61		-	“19-1919. Tax-related limitations.
62		-	“19-1920. Duration of second trust.
63		-	“19-1921. Need to distribute not required.
64		-	“19-1922. Saving provision.
65		-	“19-1923. Trust for care of animal.
66		-	“19-1924. Terms of second trust.
67		-	“19-1925. Settlor.
68		-	“19-1926. Later-discovered property.
69		-	“19-1927. Obligations.
70		-	“19-1928. Uniformity of application and construction.
71		-	“19-1929. Relation to Electronic Signatures in Global and National Commerce Act.
72		-	“§ 19- 1901. Short title.
73		-	“This chapter may be cited as the “Uniform Trust Decanting Code”.
74		-	“§ 19- 1902. Definitions.
75		-	“(a) For the purposes of this chapter, the term:
76		-	“(1) “Appointive property” means the property or property interest subject to a
77		-	power of appointment.
78		-	“(2) “Ascertainable standard” means a standard relating to an individual’s health,
79		-	education, support, or maintenance within the meaning of 26 U.S.C. § 2041(b)(1)(A) or 26
80		-	U.S.C. § 2514(c)(1) and any applicable regulations.
81		-
82		-	“(3) “Authorized fiduciary” means:
83		-	“(A) A trustee or other fiduciary, other than a settlor, that has discretion to
84		-	distribute or direct a trustee to distribute part or all of the principal of the first trust to one or
85		-	more current beneficiaries;
86		-	“(B) A special fiduciary appointed under § 19- 1909; or
87		-	“(C) A special-needs fiduciary under § 19- 1913.
88		-	“(4) “Beneficiary” means a person that:
89		-	“(A) Has a present or future, vested or contingent, beneficial interest in a
90		-	trust;
91		-	“(B) Holds a power of appointment over trust property; or
92		-	“(C) Is an identified charitable organization that will or may receive
93		-	distributions under the terms of the trust. ENROLLED ORIGINAL
	45	+	“§ 19- 1903. Scope. 22
	46	+	“§ 19- 1904. Fiduciary duty. 23
	47	+	“§ 19- 1905. Application; governing law. 24
	48	+	“§ 19- 1906. Reasonable reliance. 25
	49	+	“§ 19- 1907. Notice; exercise of decanting power. 26
	50	+	“§ 19- 1908. Representation. 27
	51	+	“§ 19- 1909. Court involvement. 28
	52	+	“§ 19- 1910. Formalities. 29
	53	+	“§ 19- 1911. Decanting power under expanded distributive discretion. 30
	54	+	“§ 19- 1912. Decanting power under limited distributive discretion. 31
	55	+	“§ 19- 1913. Trust for beneficiary with disability. 32
	56	+	“§ 19- 1914. Protection of charitable interest. 33
	57	+	“§ 19- 1915. Trust limitation on decanting. 34
	58	+	“§ 19- 1916. Change in compensation. 35
	59	+	“§ 19- 1917. Relief from liability and indemnification. 36
	60	+	“§ 19- 1918. Removal or replacement of authorized fiduciary. 37
	61	+	“§ 19- 1919. Tax-related limitations. 38
	62	+	“§ 19- 1920. Duration of second trust. 39
	63	+	“§ 19- 1921. Need to distribute not required. 40
	64	+	“§ 19- 1922. Saving provision. 41 ENGROSSED ORIGINAL
94	65
95	66
96	67
97	68
98	69		3
99	70
100		-	“(5) “Charitable interest” means an interest in a trust which:
101		-	“(A) Is held by an identified charitable organization and makes the
102		-	organization a qualified beneficiary;
103		-	“(B) Benefits only charitable organizations and, if the interest were held
104		-	by an identified charitable organization, would make the organization a qualified beneficiary; or
105		-	“(C) Is held solely for charitable purposes and, if the interest were held by
106		-	an identified charitable organization, would make the organization a qualified beneficiary.
107		-	“(6) “Charitable organization” means:
108		-	“(A) A person, other than an individual, organized and operated
109		-	exclusively for charitable purposes; or
110		-	“(B) A government or governmental subdivision, agency, or
111		-	instrumentality, to the extent it holds funds exclusively for a charitable purpose.
112		-	“(7) “Charitable purpose” means the relief of poverty, the advancement of
113		-	education or religion, the promotion of health, a municipal or other governmental purpose, or
114		-	another purpose the achievement of which is beneficial to the community.
115		-	“(8) “Court” means the Superior Court of the District of Columbia.
116		-	“(9) “Current beneficiary” means a beneficiary that on the date the beneficiary’s
117		-	qualification is determined is a distributee or permissible distributee of trust income or principal.
118		-	The term includes the holder of a presently exercisable general power of appointment but does
119		-	not include a person that is a beneficiary only because the person holds any other power of
120		-	appointment.
121		-	“(10) “Decanting power” means the power of an authorized fiduciary under this
122		-	chapter to distribute property of a first trust to one or more second trusts or to modify the terms
123		-	of the first trust.
124		-
125		-	“(11) “Expanded distributive discretion” means a discretionary power of
126		-	distribution that is not limited to an ascertainable standard or a reasonably definite standard.
127		-	“(12) “First trust” means a trust over which an authorized fiduciary may exercise
128		-	the decanting power.
129		-	“(13) “First-trust instrument” means the trust instrument for a first trust.
130		-	“(14) “General power of appointment” means a power of appointment exercisable
131		-	in favor of a powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor
132		-	of the powerholder’s estate.
133		-	“(15) “Jurisdiction,” with respect to a geographic area, includes a state or country.
134		-	“(16) “Person” means an individual, estate, business or nonprofit entity, public
135		-	corporation, government or governmental subdivision, agency, or instrumentality, or other legal
136		-	entity.
137		-	“(17) “Power of appointment” means a power that enables a powerholder acting
138		-	in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of ENROLLED ORIGINAL
	71	+	“§ 19- 1923. Trust for care of animal. 42
	72	+	“§ 19- 1924. Terms of second trust. 43
	73	+	“§ 19- 1925. Settlor. 44
	74	+	“§ 19- 1926. Later-discovered property. 45
	75	+	“§ 19- 1927. Obligations. 46
	76	+	“§ 19- 1928. Uniformity of application and construction. 47
	77	+	“§ 19- 1929. Relation to Electronic Signatures in Global and National Commerce Act. 48
	78	+	“§ 19- 1901. Short title. 49
	79	+	“This chapter may be cited as the “Uniform Trust Decanting Code”. 50
	80	+	“§ 19- 1902. Definitions. 51
	81	+	“(a) For the purposes of this chapter, the term: 52
	82	+	“(1) “Appointive property” means the property or property interest subject to a 53
	83	+	power of appointment. 54
	84	+	“(2) “Ascertainable standard” means a standard relating to an individual’s health, 55
	85	+	education, support, or maintenance within the meaning of 26 U.S.C. § 2041(b)(1)(A) or 26 56
	86	+	U.S.C. § 2514(c)(1) and any applicable regulations. 57
	87	+	“(3) “Attorney General” means the Attorney General for the District of Columbia. 58
	88	+	“(4) “Authorized fiduciary” means: 59 ENGROSSED ORIGINAL
139	89
140	90
141	91
142	92
143	93		4
144	94
145		-	appointment over the appointive property. The term “power of appointment” does not include a
146		-	power of attorney.
147		-	“(18) “Powerholder” means a person in which a donor creates a power of
148		-	appointment.
149		-	“(19)(A) “Presently exercisable power of appointment” means a power of
150		-	appointment exercisable by the powerholder at the relevant time and includes a power of
151		-	appointment exercisable only after the occurrence of a specified event, the satisfaction of an
152		-	ascertainable standard, or the passage of a specified time only after:
153		-	“(i) The occurrence of the specified event;
154		-	“(ii) The satisfaction of the ascertainable standard; or
155		-	“(iii) The passage of the specified time.
156		-	“(B) The term “presently exercisable power of appointment” does not
157		-	include a power exercisable only at the powerholder’s death.
158		-	“(20) “Qualified beneficiary” means a beneficiary that on the date the
159		-	beneficiary’s qualification is determined:
160		-	“(A) Is a distributee or permissible distributee of trust income or principal;
161		-	“(B) Would be a distributee or permissible distributee of trust income or
162		-	principal if the interests of the distributees described in subparagraph (A) of this paragraph
163		-	terminated on that date without causing the trust to terminate; or
164		-	“(C) Would be a distributee or permissible distributee of trust income or
165		-	principal if the trust terminated on that date.
166		-	“(21) “Reasonably definite standard” means a clearly measurable standard under
167		-	which a holder of a power of distribution is legally accountable within the meaning of 26 U.S.C.
168		-	§ 674(b)(5)(A) and any applicable regulations.
169		-	“(22) “Record” means information that is inscribed on a tangible medium or that
170		-	is stored in an electronic or other medium and is retrievable in perceivable form.
171		-	“(23) “Second trust” means:
172		-	“(A) A first trust after modification under this chapter; or
173		-	“(B) A trust to which a distribution of property from a first trust is or may
174		-	be made under this chapter.
175		-	“(24) “Second-trust instrument” means the trust instrument for a second trust.
176		-	“(25) “Settlor,” except as otherwise provided in § 19- 1925, means a person,
177		-	including a testator, that creates or contributes property to a trust. If more than one person creates
178		-	or contributes property to a trust, each person is a settlor of the portion of the trust property
179		-	attributable to the person’s contribution except to the extent another person has power to revoke
180		-	or withdraw that portion.
181		-	“(26) “Sign” means, with present intent to authenticate or adopt a record:
182		-	“(A) To execute or adopt a tangible symbol; or
183		-	“(B) To attach to or logically associate with the record an electronic
184		-	symbol, sound, or process. ENROLLED ORIGINAL
	95	+	“(A) A trustee or other fiduciary, other than a settlor, that has discretion to 60
	96	+	distribute or direct a trustee to distribute part or all of the principal of the first trust to one or 61
	97	+	more current beneficiaries; 62
	98	+	“(B) A special fiduciary appointed under § 19- 1909; or 63
	99	+	“(C) A special-needs fiduciary under § 19- 1913. 64
	100	+	“(5) “Beneficiary” means a person that: 65
	101	+	“(A) Has a present or future, vested or contingent, beneficial interest in a 66
	102	+	trust; 67
	103	+	“(B) Holds a power of appointment over trust property; or 68
	104	+	“(C) Is an identified charitable organization that will or may receive 69
	105	+	distributions under the terms of the trust. 70
	106	+	“(6) “Charitable interest” means an interest in a trust which: 71
	107	+	“(A) Is held by an identified charitable organization and makes the 72
	108	+	organization a qualified beneficiary; 73
	109	+	“(B) Benefits only charitable organizations and, if the interest were held 74
	110	+	by an identified charitable organization, would make the organization a qualified beneficiary; or 75
	111	+	“(C) Is held solely for charitable purposes and, if the interest were held by 76
	112	+	an identified charitable organization, would make the organization a qualified beneficiary. 77
	113	+	“(7) “Charitable organization” means: 78 ENGROSSED ORIGINAL
185	114
186	115
187	116
188	117
189	118		5
190	119
191		-	“(27) “State” means a state of the United States, the District, Puerto Rico, the
192		-	United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of
193		-	the United States.
194		-	“(28) “Terms of a trust” means:
195		-	“(A) Except as otherwise provided in subparagraph (B) of this paragraph,
196		-	the manifestation of the settlor’s intent regarding a trust’s provisions as:
197		-	“(i) Expressed in the trust instrument; or
198		-	“(ii) Established by other evidence that would be admissible in a
199		-	judicial proceeding; or
200		-	“(B) The trust’s provisions as established, determined, or amended by:
201		-	“(i) A trustee or trust director in accordance with applicable law;
202		-	“(ii) Court order; or
203		-	“(iii) A nonjudicial settlement agreement under § 19-1301.11.
204		-	“(29) “Trust instrument” means a record executed by the settlor to create a trust or
205		-	by any person to create a second trust which contains some or all of the terms of the trust,
206		-	including any amendments.
207		-	“§ 19- 1903. Scope.
208		-	“(a) Except as otherwise provided in subsections (b) and (c) of this section, this chapter
209		-	applies to an express trust that is irrevocable or revocable by the settlor only with the consent of
210		-	the trustee or a person holding an adverse interest.
211		-	“(b) This chapter does not apply to a trust held solely for charitable purposes.
212		-	“(c) Subject to § 19- 1915, a trust instrument may restrict or prohibit exercise of the
213		-	decanting power.
214		-	“(d) This chapter does not limit the power of a trustee, powerholder, or other person to
215		-	distribute or appoint property in further trust or to modify a trust under the trust instrument, law
216		-	of the District other than this chapter, common law, a court order, or a nonjudicial settlement
217		-	agreement.
218		-	“(e) This chapter does not affect the ability of a settlor to provide in a trust instrument for
219		-	the distribution of the trust property or appointment in further trust of the trust property or for
220		-	modification of the trust instrument.
221		-	“§ 19- 1904. Fiduciary duty.
222		-	“(a) In exercising the decanting power, an authorized fiduciary shall act in accordance
223		-	with its fiduciary duties, including the duty to act in accordance with the purposes of the first
224		-	trust.
225		-	“(b) This chapter does not create or imply a duty to exercise the decanting power or to
226		-	inform beneficiaries about the applicability of this chapter.
227		-	“(c) Except as otherwise provided in a first-trust instrument, for the purposes of this
228		-	chapter and §§ 19- 1308.01 and 19- 1308.02(a), the terms of the first trust are deemed to include
229		-	the decanting power.
230		-	“§ 19- 1905. Application; governing law. ENROLLED ORIGINAL
	120	+	“(A) A person, other than an individual, organized and operated 79
	121	+	exclusively for charitable purposes; or 80
	122	+	“(B) A government or governmental subdivision, agency, or 81
	123	+	instrumentality, to the extent it holds funds exclusively for a charitable purpose. 82
	124	+	“(8) “Charitable purpose” means the relief of poverty, the advancement of 83
	125	+	education or religion, the promotion of health, a municipal or other governmental purpose, or 84
	126	+	another purpose the achievement of which is beneficial to the community. 85
	127	+	“(9) “Court” means the Superior Court of the District of Columbia. 86
	128	+	“(10) “Current beneficiary” means a beneficiary that on the date the beneficiary’s 87
	129	+	qualification is determined is a distributee or permissible distributee of trust income or principal. 88
	130	+	The term includes the holder of a presently exercisable general power of appointment but does 89
	131	+	not include a person that is a beneficiary only because the person holds any other power of 90
	132	+	appointment. 91
	133	+	“(11) “Decanting power” means the power of an authorized fiduciary under this 92
	134	+	chapter to distribute property of a first trust to one or more second trusts or to modify the terms 93
	135	+	of the first trust. 94
	136	+	“(12) “District” means the District of Columbia. 95
	137	+	“(13) “Expanded distributive discretion” means a discretionary power of 96
	138	+	distribution that is not limited to an ascertainable standard or a reasonably definite standard. 97 ENGROSSED ORIGINAL
231	139
232	140
233	141
234	142
235	143		6
236	144
237		-	“This chapter applies to a trust created before, on, or after the effective date of this
238		-	chapter, which:
239		-	“(1) Has its principal place of administration in the District, including a trust
240		-	whose principal place of administration has been changed to the District; or
241		-	“(2) Provides by its trust instrument that it is governed by the law of the District
242		-	or is governed by the law of the District for the purpose of:
243		-	“(A) Administration, including administration of a trust whose governing
244		-	law for purposes of administration has been changed to the law of the District;
245		-	“(B) Construction of terms of the trust; or
246		-	“(C) Determining the meaning or effect of terms of the trust.
247		-	“§ 19- 1906. Reasonable reliance.
248		-	“A trustee or other person that reasonably relies on the validity of a distribution of part or
249		-	all of the property of a trust to another trust, or a modification of a trust, under this chapter, law
250		-	of the District other than this chapter, or the law of another jurisdiction is not liable to any person
251		-	for any action or failure to act as a result of the reliance.
252		-	“§ 19- 1907. Notice; exercise of decanting power.
253		-	“(a) For the purposes of this section, a notice period begins on the day notice is given
254		-	under subsection (c) of this section and ends 59 days after the day notice is given.
255		-	“(b) Except as otherwise provided in this chapter, an authorized fiduciary may exercise
256		-	the decanting power without the consent of any person and without court approval.
257		-	“(c) Except as otherwise provided in subsection (f) of this section, an authorized fiduciary
258		-	shall give notice in a record of the intended exercise of the decanting power not later than 60
259		-	days before the exercise to:
260		-	“(1) Each settlor of the first trust, if living or then in existence;
261		-	“(2) Each qualified beneficiary of the first trust;
262		-	“(3) Each holder of a presently exercisable power of appointment over any part or
263		-	all of the first trust;
264		-	“(4) Each person that currently has the right to remove or replace the authorized
265		-	fiduciary;
266		-	“(5) Each other fiduciary of the first trust;
267		-	“(6) Each fiduciary of the second trust; and
268		-	“(7) The Attorney General, if § 19- 1914(b) applies.
269		-	“(d) An authorized fiduciary is not required to give notice under subsection (c) of this
270		-	section to a qualified beneficiary who is a minor and has no representative or to a person that is
271		-	not known to the fiduciary or is known to the fiduciary but cannot be located by the fiduciary
272		-	after reasonable diligence.
273		-	“(e) A notice under subsection (c) of this section must:
274		-	“(1) Specify the manner in which the authorized fiduciary intends to exercise the
275		-	decanting power;
276		-	“(2) Specify the proposed effective date for exercise of the power; ENROLLED ORIGINAL
	145	+	“(14) “First trust” means a trust over which an authorized fiduciary may exercise 98
	146	+	the decanting power. 99
	147	+	“(15) “First-trust instrument” means the trust instrument for a first trust. 100
	148	+	“(16) “General power of appointment” means a power of appointment exercisable 101
	149	+	in favor of a powerholder, the powerholder’s estate, a creditor of the powerholder, or a creditor 102
	150	+	of the powerholder’s estate. 103
	151	+	“(17) “Jurisdiction”, with respect to a geographic area, includes a state or country. 104
	152	+	“(18) “Person” means an individual, estate, business or nonprofit entity, public 105
	153	+	corporation, government or governmental subdivision, agency, or instrumentality, or other legal 106
	154	+	entity. 107
	155	+	“(19) “Power of appointment” means a power that enables a powerholder acting 108
	156	+	in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of 109
	157	+	appointment over the appointive property. The term “power of appointment” does not include a 110
	158	+	power of attorney. 111
	159	+	“(20) “Powerholder” means a person in which a donor creates a power of 112
	160	+	appointment. 113
	161	+	“(21)(A) “Presently exercisable power of appointment” means a power of 114
	162	+	appointment exercisable by the powerholder at the relevant time. 115 ENGROSSED ORIGINAL
277	163
278	164
279	165
280	166
281	167		7
282	168
283		-	“(3) Include a copy of the first-trust instrument; and
284		-	“(4) Include a copy of all second- trust instruments.
285		-	“(f) The decanting power may be exercised before expiration of the notice period under
286		-	subsection (a) of this section if all persons entitled to receive notice waive the period in a signed
287		-	record.
288		-	“(g) The receipt of notice, waiver of the notice period, or expiration of the notice period
289		-	does not affect the right of a person to file an application under § 19- 1909 asserting that:
290		-	“(1) An attempted exercise of the decanting power is ineffective because it did not
291		-	comply with this chapter or was an abuse of discretion or breach of fiduciary duty; or
292		-	“(2) § 19- 1922 applies to the exercise of the decanting power.
293		-	“(h) An exercise of the decanting power is not ineffective because of the failure to give
294		-	notice to one or more persons under subsection (c) of this section if the authorized fiduciary
295		-	acted with reasonable care to comply with subsection (c) of this section.
296		-	“§ 19- 1908. Representation.
297		-	“(a) Notice to a person with authority to represent and bind another person under a first-
298		-	trust instrument or Chapter 13 of this Title has the same effect as notice given directly to the
299		-	person represented.
300		-	“(b) Consent of or waiver by a person with authority to represent and bind another person
301		-	under a first-trust instrument or Chapter 13 of this Title is binding on the person represented
302		-	unless the person represented objects to the representation before the consent or waiver
303		-	otherwise would become effective.
304		-	“(c) A person with authority to represent and bind another person under a first-trust
305		-	instrument or Chapter 13 of this Title may file an application under § 19- 1909 on behalf of the
306		-	person represented.
307		-	“(d) A settlor may not represent or bind a beneficiary under this chapter.
308		-	“§ 19- 1909. Court involvement.
309		-	“(a) On application of an authorized fiduciary a person entitled to notice under § 19-
310		-	1907(c), a beneficiary, or with respect to a charitable interest the Attorney General or other
311		-	person that has standing to enforce the charitable interest, the court may:
312		-	“(1) Provide instructions to the authorized fiduciary regarding whether a proposed
313		-	exercise of the decanting power is permitted under this chapter and consistent with the fiduciary
314		-	duties of the authorized fiduciary;
315		-	“(2) Appoint a special fiduciary and authorize the special fiduciary to determine
316		-	whether the decanting power should be exercised under this chapter and to exercise the decanting
317		-	power;
318		-	“(3) Approve an exercise of the decanting power;
319		-	“(4) Determine that a proposed or attempted exercise of the decanting power is
320		-	ineffective because:
321		-	“(A) After applying § 19- 1922, the proposed or attempted exercise does
322		-	not or did not comply with this chapter; or ENROLLED ORIGINAL
	169	+	“(B) The term “presently exercisable power of appointment” includes a 116
	170	+	power of appointment exercisable only after the occurrence of a specified event, the satisfaction 117
	171	+	of an ascertainable standard, or the passage of a specified time only after: 118
	172	+	“(i) The occurrence of the specified event; 119
	173	+	“(ii) The satisfaction of the ascertainable standard; or 120
	174	+	“(iii) The passage of the specified time. 121
	175	+	“(C) The term “presently exercisable power of appointment” does not 122
	176	+	include a power exercisable only at the powerholder’s death. 123
	177	+	“(22) “Qualified beneficiary” means a beneficiary that on the date the 124
	178	+	beneficiary’s qualification is determined: 125
	179	+	“(A) Is a distributee or permissible distributee of trust income or principal; 126
	180	+	“(B) Would be a distributee or permissible distributee of trust income or 127
	181	+	principal if the interests of the distributees described in subparagraph (A) of this paragraph 128
	182	+	terminated on that date without causing the trust to terminate; or 129
	183	+	“(C) Would be a distributee or permissible distributee of trust income or 130
	184	+	principal if the trust terminated on that date. 131
	185	+	“(23) “Reasonably definite standard” means a clearly measurable standard under 132
	186	+	which a holder of a power of distribution is legally accountable within the meaning of 26 U.S.C. 133
	187	+	§ 674(b)(5)(A) and any applicable regulations. 134 ENGROSSED ORIGINAL
323	188
324	189
325	190
326	191
327	192		8
328	193
329		-	“(B) The proposed or attempted exercise would be or was an abuse of the
330		-	fiduciary’s discretion or a breach of fiduciary duty;
331		-	“(5) Determine the extent to which § 19- 1922 applies to a prior exercise of the
332		-	decanting power;
333		-	“(6) Provide instructions to the trustee regarding the application of § 19- 1922 to a
334		-	prior exercise of the decanting power; or
335		-	“(7) Order other relief to carry out the purposes of this chapter.
336		-	“(b) On application of an authorized fiduciary, the court may approve:
337		-	“(1) An increase in the fiduciary’s compensation under § 19- 1916; or
338		-	“(2) A modification under § 19- 1918 of a provision granting a person the right to
339		-	remove or replace the fiduciary.
340		-	“§ 19- 1910. Formalities.
341		-	“An exercise of the decanting power must be made in a record signed by an authorized
342		-	fiduciary. The signed record must, directly or by reference to the notice required by § 19- 1907,
343		-	identify the first trust and the second trust or trusts and state the property of the first trust being
344		-	distributed to each second trust and the property, if any, that remains in the first trust.
345		-	“§ 19- 1911. Decanting power under expanded distributive discretion.
346		-	“(a) For the purposes of this section, the term:
347		-	“(1) “Noncontingent right” means a right that is not subject to the exercise of
348		-	discretion or the occurrence of a specified event that is not certain to occur. The term
349		-	“noncontingent right” does not include a right held by a beneficiary if any person has discretion
350		-	to distribute property subject to the right to any person other than the beneficiary or the
351		-	beneficiary’s estate.
352		-	“(2) “Presumptive remainder beneficiary” means a qualified beneficiary other
353		-	than a current beneficiary.
354		-	“(3) “Successor beneficiary” means a beneficiary that is not a qualified
355		-	beneficiary on the date the beneficiary’s qualification is determined. The term “successor
356		-	beneficiary” does not include a person that is a beneficiary only because the person holds a
357		-	nongeneral power of appointment.
358		-	“(4) “Vested interest” means:
359		-	“(A) A right to a mandatory distribution that is a noncontingent right as of
360		-	the date of the exercise of the decanting power;
361		-	“(B) A current and noncontingent right, annually or more frequently, to a
362		-	mandatory distribution of income, a specified dollar amount, or a percentage of value of some or
363		-	all of the trust property;
364		-	“(C) A current and noncontingent right, annually or more frequently, to
365		-	withdraw income, a specified dollar amount, or a percentage of value of some or all of the trust
366		-	property;
367		-	“(D) A presently exercisable general power of appointment; or ENROLLED ORIGINAL
	194	+	“(24) “Record” means information that is inscribed on a tangible medium or that 135
	195	+	is stored in an electronic or other medium and is retrievable in perceivable form. 136
	196	+	“(25) “Second trust” means: 137
	197	+	“(A) A first trust after modification under this chapter; or 138
	198	+	“(B) A trust to which a distribution of property from a first trust is or may 139
	199	+	be made under this chapter. 140
	200	+	“(26) “Second- trust instrument” means the trust instrument for a second trust. 141
	201	+	“(27) “Settlor”, except as otherwise provided in § 19- 1925, means a person, 142
	202	+	including a testator, that creates or contributes property to a trust. If more than one person creates 143
	203	+	or contributes property to a trust, each person is a settlor of the portion of the trust property 144
	204	+	attributable to the person’s contribution except to the extent another person has power to revoke 145
	205	+	or withdraw that portion. 146
	206	+	“(28) “Sign” means, with present intent to authenticate or adopt a record: 147
	207	+	“(A) To execute or adopt a tangible symbol; or 148
	208	+	“(B) To attach to or logically associate with the record an electronic 149
	209	+	symbol, sound, or process. 150
	210	+	“(29) “State” means a state of the United States, the District, Puerto Rico, the 151
	211	+	United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of 152
	212	+	the United States. 153
	213	+	“(30) “Terms of a trust” means: 154 ENGROSSED ORIGINAL
368	214
369	215
370	216
371	217
372	218		9
373	219
374		-	“(E) A right to receive an ascertainable part of the trust property on the
375		-	trust’s termination which is not subject to the exercise of discretion or to the occurrence of a
376		-	specified event that is not certain to occur.
377		-	“(b) Subject to subsection (c) of this section and § 19- 1914, an authorized fiduciary that
378		-	has expanded distributive discretion over the principal of a first trust for the benefit of one or
379		-	more current beneficiaries may exercise the decanting power over the principal of the first trust.
380		-	“(c) Subject to § 19- 1913, in an exercise of the decanting power under this section, a
381		-	second trust may not:
382		-	“(1) Include as a current beneficiary a person that is not a current beneficiary of
383		-	the first trust, except as otherwise provided in subsection (d) of this section;
384		-	“(2) Include as a presumptive remainder beneficiary or successor beneficiary a
385		-	person that is not a current beneficiary, presumptive remainder beneficiary, or successor
386		-	beneficiary of the first trust, except as otherwise provided in subsection (d) of this section; or
387		-	“(3) Reduce or eliminate a vested interest.
388		-	“(d) Subject to subsection (c)(3) of this section and § 19- 1914, in an exercise of the
389		-	decanting power under this section, a second trust may be a trust created or administered under
390		-	the law of any jurisdiction and may:
391		-	“(1) Retain a power of appointment granted in the first trust;
392		-	“(2) Omit a power of appointment granted in the first trust, other than a presently
393		-	exercisable general power of appointment;
394		-	“(3) Create or modify a power of appointment if the powerholder is a current
395		-	beneficiary of the first trust and the authorized fiduciary has expanded distributive discretion to
396		-	distribute principal to the beneficiary; and
397		-	“(4) Create or modify a power of appointment if the powerholder is a presumptive
398		-	remainder beneficiary or successor beneficiary of the first trust, but the exercise of the power
399		-	may take effect only after the powerholder becomes, or would have become if then living, a
400		-	current beneficiary.
401		-	“(e) A power of appointment described in subsection (d)(1) through (4) of this section
402		-	may be general or nongeneral. The class of permissible appointees in favor of which the power
403		-	may be exercised may be broader than or different from the beneficiaries of the first trust.
404		-	“(f) If an authorized fiduciary has expanded distributive discretion over part but not all of
405		-	the principal of a first trust, the fiduciary may exercise the decanting power under this section
406		-	over that part of the principal over which the authorized fiduciary has expanded distributive
407		-	discretion.
408		-	“§ 19- 1912. Decanting power under limited distributive discretion.
409		-	“(a) For the purposes of this section, the term “limited distributive discretion” means a
410		-	discretionary power of distribution that is limited to an ascertainable standard or a reasonably
411		-	definite standard. ENROLLED ORIGINAL
	220	+	“(A) Except as otherwise provided in subparagraph (B) of this paragraph, 155
	221	+	the manifestation of the settlor’s intent regarding a trust’s provisions as: 156
	222	+	“(i) Expressed in the trust instrument; or 157
	223	+	“(ii) Established by other evidence that would be admissible in a 158
	224	+	judicial proceeding; or 159
	225	+	“(B) The trust’s provisions as established, determined, or amended by: 160
	226	+	“(i) A trustee or trust director in accordance with applicable law; 161
	227	+	“(ii) Court order; or 162
	228	+	“(iii) A nonjudicial settlement agreement under § 19-1301.11. 163
	229	+	“(31) “Trust instrument” means a record executed by the settlor to create a trust or 164
	230	+	by any person to create a second trust which contains some or all of the terms of the trust, 165
	231	+	including any amendments. 166
	232	+	“§ 19- 1903. Scope. 167
	233	+	“(a) Except as otherwise provided in subsections (b) and (c) of this section, this chapter 168
	234	+	applies to an express trust that is irrevocable or revocable by the settlor only with the consent of 169
	235	+	the trustee or a person holding an adverse interest. 170
	236	+	“(b) This chapter does not apply to a trust held solely for charitable purposes. 171
	237	+	“(c) Subject to § 19- 1915, a trust instrument may restrict or prohibit exercise of the 172
	238	+	decanting power. 173 ENGROSSED ORIGINAL
412	239
413	240
414	241
415	242
416	243		10
417	244
418		-	“(b) An authorized fiduciary that has limited distributive discretion over the principal of
419		-	the first trust for benefit of one or more current beneficiaries may exercise the decanting power
420		-	over the principal of the first trust.
421		-	“(c) Under this section and subject to § 19- 1914, a second trust may be created or
422		-	administered under the law of any jurisdiction. Under this section, the second trusts, in the
423		-	aggregate, must grant each beneficiary of the first trust beneficial interests which are
424		-	substantially similar to the beneficial interests of the beneficiary in the first trust.
425		-	“(d) A power to make a distribution under a second trust for the benefit of a beneficiary
426		-	who is an individual is substantially similar to a power under the first trust to make a distribution
427		-	directly to the beneficiary. A distribution is for the benefit of a beneficiary if:
428		-	“(1) The distribution is applied for the benefit of the beneficiary;
429		-	“(2) The beneficiary is under a legal disability or the trustee reasonably believes
430		-	the beneficiary is incapacitated, and the distribution is made as permitted under Chapter 13 of
431		-	this Title; or
432		-	“(3) The distribution is made as permitted under the terms of the first- trust
433		-	instrument and the second- trust instrument for the benefit of the beneficiary.
434		-	“(e) If an authorized fiduciary has limited distributive discretion over part but not all of
435		-	the principal of a first trust, the fiduciary may exercise the decanting power under this section
436		-	over that part of the principal over which the authorized fiduciary has limited distributive
437		-	discretion.
438		-	“§ 19- 1913. Trust for beneficiary with disability.
439		-	“(a) For the purposes of this section, the term:
440		-	“(1) “Beneficiary with a disability” means a beneficiary of a first trust who the
441		-	special-needs fiduciary believes may qualify for governmental benefits based on disability,
442		-	whether or not the beneficiary currently receives those benefits or is an individual who has been
443		-	adjudicated incompetent.
444		-	“(2) “Governmental benefits” means financial aid or services from a state, federal,
445		-	or other public agency.
446		-	“(3) “Special-needs fiduciary” means, with respect to a trust that has a beneficiary
447		-	with a disability:
448		-	“(A) A trustee or other fiduciary, other than a settlor, that has discretion to
449		-	distribute part or all of the principal of a first trust to one or more current beneficiaries;
450		-	“(B) If no trustee or fiduciary has discretion under subparagraph (A) of
451		-	this paragraph, a trustee or other fiduciary, other than a settlor, that has discretion to distribute
452		-	part or all of the income of the first trust to one or more current beneficiaries; or
453		-	“(C) If no trustee or fiduciary has discretion under subparagraphs (A) and
454		-	(B) of this paragraph, a trustee or other fiduciary, other than a settlor, that is required to distribute
455		-	part or all of the income or principal of the first trust to one or more current beneficiaries. ENROLLED ORIGINAL
	245	+	“(d) This chapter does not limit the power of a trustee, powerholder, or other person to 174
	246	+	distribute or appoint property in further trust or to modify a trust under the trust instrument, law 175
	247	+	of the District other than this chapter, common law, a court order, or a nonjudicial settlement 176
	248	+	agreement. 177
	249	+	“(e) This chapter does not affect the ability of a settlor to provide in a trust instrument for 178
	250	+	the distribution of the trust property or appointment in further trust of the trust property or for 179
	251	+	modification of the trust instrument. 180
	252	+	“§ 19- 1904. Fiduciary duty. 181
	253	+	“(a) In exercising the decanting power, an authorized fiduciary shall act in accordance 182
	254	+	with its fiduciary duties, including the duty to act in accordance with the purposes of the first 183
	255	+	trust. 184
	256	+	“(b) This chapter does not create or imply a duty to exercise the decanting power or to 185
	257	+	inform beneficiaries about the applicability of this chapter. 186
	258	+	“(c) Except as otherwise provided in a first-trust instrument, for the purposes of this 187
	259	+	chapter and §§ 19- 1308.01 and 19- 1308.02(a), the terms of the first trust are deemed to include 188
	260	+	the decanting power. 189
	261	+	“§ 19- 1905. Application; governing law. 190
	262	+	“This chapter applies to a trust created before, on, or after the effective date of this 191
	263	+	chapter, which: 192 ENGROSSED ORIGINAL
456	264
457	265
458	266
459	267
460	268		11
461	269
462		-	“(4) “Special-needs trust” means a trust the trustee believes would not be
463		-	considered a resource for purposes of determining whether a beneficiary with a disability is
464		-	eligible for governmental benefits.
465		-	“(b) A special-needs fiduciary may exercise the decanting power under § 19-1911 over
466		-	the principal of a first trust as if the fiduciary had authority to distribute principal to a beneficiary
467		-	with a disability subject to expanded distributive discretion if:
468		-	“(1) A second trust is a special-needs trust that benefits the beneficiary with a
469		-	disability; and
470		-	“(2) The special-needs fiduciary determines that exercise of the decanting power
471		-	will further the purposes of the first trust.
472		-	“(c) In an exercise of the decanting power under this section, the following rules apply:
473		-	“(1) Notwithstanding § 19- 1911(c)(2), the interest in the second trust of a
474		-	beneficiary with a disability may:
475		-	“(A) Be a pooled trust as defined by Medicaid law for the benefit of the
476		-	beneficiary with a disability under section 1917(d)(4)(C) of the Social Security Act, approved
477		-	September 3, 1982 (96 Stat. 370; 42 U.S.C. § 1396p(d)(4)(C) ); or
478		-	“(B) Contain payback provisions complying with reimbursement
479		-	requirements of Medicaid law under section 1917(d)(4)(A) of the act ( 42 U.S.C. §
480		-	1396p(d)(4)(A)).
481		-	“(2) § 19- 1911(c)(3) does not apply to the interests of the beneficiary with a
482		-	disability.
483		-	“(3) Except as affected by any change to the interests of the beneficiary with a
484		-	disability, the second trust, or if there are 2 or more second trusts, the second trusts in the
485		-	aggregate, must grant each other beneficiary of the first trust beneficial interests in the second
486		-	trusts which are substantially similar to the beneficiary’s beneficial interests in the first trust.
487		-	“§ 19- 1914. Protection of charitable interest.
488		-	“(a) For the purposes of this section, the term:
489		-	“(1) “Determinable charitable interest” means a charitable interest that is a right to
490		-	a mandatory distribution currently, periodically, on the occurrence of a specified event, or after
491		-	the passage of a specified time and which is unconditional or will be held solely for charitable
492		-	purposes.
493		-	“(2) “Unconditional” means not subject to the occurrence of a specified event that
494		-	is not certain to occur, other than a requirement in a trust instrument that a charitable
495		-	organization be in existence or qualify under a particular provision of the United States Internal
496		-	Revenue Code of 1986 on the date of the distribution, if the charitable organization meets the
497		-	requirement on the date of determination.
498		-	“(b) If a first trust contains a determinable charitable interest, the Attorney General has
499		-	the rights of a qualified beneficiary and may represent and bind the charitable interest.
500		-	“(c) If a first trust contains a charitable interest, the second trust or trusts may not:
501		-	“(1) Diminish the charitable interest; ENROLLED ORIGINAL
	270	+	“(1) Has its principal place of administration in the District, including a trust 193
	271	+	whose principal place of administration has been changed to the District; or 194
	272	+	“(2) Provides by its trust instrument that it is governed by the law of the District 195
	273	+	or is governed by the law of the District for the purpose of: 196
	274	+	“(A) Administration, including administration of a trust whose governing 197
	275	+	law for purposes of administration has been changed to the law of the District; 198
	276	+	“(B) Construction of terms of the trust; or 199
	277	+	“(C) Determining the meaning or effect of terms of the trust. 200
	278	+	“§ 19- 1906. Reasonable reliance. 201
	279	+	“A trustee or other person that reasonably relies on the validity of a distribution of part or 202
	280	+	all of the property of a trust to another trust, or a modification of a trust, under this chapter, law 203
	281	+	of the District other than this chapter, or the law of another jurisdiction is not liable to any person 204
	282	+	for any action or failure to act as a result of the reliance. 205
	283	+	“§ 19- 1907. Notice; exercise of decanting power. 206
	284	+	“(a) For the purposes of this section, a notice period begins on the day notice is given 207
	285	+	under subsection (c) of this section and ends 59 days after the day notice is given. 208
	286	+	“(b) Except as otherwise provided in this chapter, an authorized fiduciary may exercise 209
	287	+	the decanting power without the consent of any person and without court approval. 210 ENGROSSED ORIGINAL
502	288
503	289
504	290
505	291
506	292		12
507	293
508		-	“(2) Diminish the interest of an identified charitable organization that holds the
509		-	charitable interest;
510		-	“(3) Alter any charitable purpose stated in the first-trust instrument; or
511		-	“(4) Alter any condition or restriction related to the charitable interest.
512		-	“(d) If there are 2 or more second trusts, the second trusts shall be treated as one trust for
513		-	purposes of determining whether the exercise of the decanting power diminishes the charitable
514		-	interest or diminishes the interest of an identified charitable organization for purposes of
515		-	subsection (c) of this section.
516		-	“(e) If a first trust contains a determinable charitable interest, the second trust or trusts
517		-	that include a charitable interest pursuant to subsection (c) of this section must be administered
518		-	under the law of the District unless:
519		-	“(1) The Attorney General, after receiving notice under § 19- 1907, fails to object
520		-	in a signed record delivered to the authorized fiduciary within the notice period;
521		-	“(2) The Attorney General consents in a signed record to the second trust or trusts
522		-	being administered under the law of another jurisdiction; or
523		-	“(3) The court approves the exercise of the decanting power.
524		-	“(f) This chapter does not limit the powers and duties of the Attorney General under law
525		-	of the District other than this chapter.
526		-	“§ 19- 1915. Trust limitation on decanting.
527		-	“(a) An authorized fiduciary may not exercise the decanting power to the extent the first-
528		-	trust instrument expressly prohibits exercise of:
529		-	“(1) The decanting power; or
530		-	“(2) A power granted by state law to the fiduciary to distribute part or all of the
531		-	principal of the trust to another trust or to modify the trust.
532		-	“(b) Exercise of the decanting power is subject to any restriction in the first-trust
533		-	instrument that expressly applies to exercise of:
534		-	“(1) The decanting power; or
535		-	“(2) A power granted by state law to a fiduciary to distribute part or all of the
536		-	principal of the trust to another trust or to modify the trust.
537		-	“(c) A general prohibition of the amendment or revocation of a first trust, a spendthrift
538		-	clause, or a clause restraining the voluntary or involuntary transfer of a beneficiary’s interest
539		-	does not preclude exercise of the decanting power.
540		-	“(d) Subject to subsections (a) and (b) of this section, an authorized fiduciary may
541		-	exercise the decanting power under this chapter even if the first -trust instrument permits the
542		-	authorized fiduciary or another person to modify the first-trust instrument or to distribute part or
543		-	all of the principal of the first trust to another trust.
544		-	“(e) If a first-trust instrument contains an express prohibition described in subsection (a)
545		-	of this section or an express restriction described in subsection (b) of this section, the provision
546		-	must be included in the second- trust instrument.
547		-	“§ 19- 1916. Change in compensation. ENROLLED ORIGINAL
	294	+	“(c) Except as otherwise provided in subsection (f) of this section, an authorized fiduciary 211
	295	+	shall give notice in a record of the intended exercise of the decanting power not later than 60 212
	296	+	days before the exercise to: 213
	297	+	“(1) Each settlor of the first trust, if living or then in existence; 214
	298	+	“(2) Each qualified beneficiary of the first trust; 215
	299	+	“(3) Each holder of a presently exercisable power of appointment over any part or 216
	300	+	all of the first trust; 217
	301	+	“(4) Each person that currently has the right to remove or replace the authorized 218
	302	+	fiduciary; 219
	303	+	“(5) Each other fiduciary of the first trust; 220
	304	+	“(6) Each fiduciary of the second trust; and 221
	305	+	“(7) The Attorney General, if § 19- 1914(b) applies. 222
	306	+	“(d) An authorized fiduciary is not required to give notice under subsection (c) of this 223
	307	+	section to a qualified beneficiary who is a minor and has no representative or to a person that is 224
	308	+	not known to the fiduciary or is known to the fiduciary but cannot be located by the fiduciary 225
	309	+	after reasonable diligence. 226
	310	+	“(e) A notice under subsection (c) of this section must: 227
	311	+	“(1) Specify the manner in which the authorized fiduciary intends to exercise the 228
	312	+	decanting power; 229
	313	+	“(2) Specify the proposed effective date for exercise of the power; 230 ENGROSSED ORIGINAL
548	314
549	315
550	316
551	317
552	318		13
553	319
554		-	“(a) If a first-trust instrument specifies an authorized fiduciary’s compensation, the
555		-	fiduciary may not exercise the decanting power to increase the fiduciary’s compensation above
556		-	the specified compensation unless:
557		-	“(1) All qualified beneficiaries of the second trust consent to the increase in a
558		-	signed record; or
559		-	“(2) The increase is approved by the court.
560		-	“(b) If a first-trust instrument does not specify an authorized fiduciary’s compensation,
561		-	the fiduciary may not exercise the decanting power to increase the fiduciary’s compensation
562		-	above the compensation permitted by Chapter 13 unless:
563		-	“(1) All qualified beneficiaries of the second trust consent to the increase in a
564		-	signed record; or
565		-	“(2) The increase is approved by the court.
566		-	“(c) A change in an authorized fiduciary’s compensation which is incidental to other
567		-	changes made by the exercise of the decanting power is not an increase in the fiduciary’s
568		-	compensation for the purposes of subsections (a) and (b) of this section.
569		-	“§ 19- 1917. Relief from liability and indemnification.
570		-	“(a) Except as otherwise provided in this section, a second- trust instrument may not
571		-	relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-
572		-	trust instrument.
573		-	“(b) A second-trust instrument may provide for indemnification of an authorized
574		-	fiduciary of the first trust or another person acting in a fiduciary capacity under the first trust for
575		-	any liability or claim that would have been payable from the first trust if the decanting power had
576		-	not been exercised.
577		-	“(c) A second-trust instrument may not reduce fiduciary liability in the aggregate.
578		-	“(d) Subject to subsection (c) of this section, a second- trust instrument may divide and
579		-	reallocate fiduciary powers among fiduciaries, including one or more trustees, distribution
580		-	advisors, investment advisors, trust protectors, or other persons, and relieve a fiduciary from
581		-	liability for an act or failure to act of another fiduciary as permitted by law of the District other
582		-	than this chapter.
583		-	“§ 19- 1918. Removal or replacement of authorized fiduciary.
584		-	“An authorized fiduciary may not exercise the decanting power to modify a provision in a
585		-	first-trust instrument granting another person power to remove or replace the fiduciary unless:
586		-	“(1) The person holding the power consents to the modification in a signed record
587		-	and the modification applies only to the person;
588		-	“(2) The person holding the power and the qualified beneficiaries of the second
589		-	trust consent to the modification in a signed record and the modification grants a substantially
590		-	similar power to another person; or
591		-	“(3) The court approves the modification and the modification grants a
592		-	substantially similar power to another person.
593		-	“§ 19- 1919. Tax-related limitations. ENROLLED ORIGINAL
	320	+	“(3) Include a copy of the first-trust instrument; and 231
	321	+	“(4) Include a copy of all second- trust instruments. 232
	322	+	“(f) The decanting power may be exercised before expiration of the notice period under 233
	323	+	subsection (a) of this section if all persons entitled to receive notice waive the period in a signed 234
	324	+	record. 235
	325	+	“(g) The receipt of notice, waiver of the notice period, or expiration of the notice period 236
	326	+	does not affect the right of a person to file an application under § 19- 1909 asserting that: 237
	327	+	“(1) An attempted exercise of the decanting power is ineffective because it did not 238
	328	+	comply with this chapter or was an abuse of discretion or breach of fiduciary duty; or 239
	329	+	“(2) § 19- 1922 applies to the exercise of the decanting power. 240
	330	+	“(h) An exercise of the decanting power is not ineffective because of the failure to give 241
	331	+	notice to one or more persons under subsection (c) of this section if the authorized fiduciary 242
	332	+	acted with reasonable care to comply with subsection (c) of this section. 243
	333	+	“§ 19- 1908. Representation. 244
	334	+	“(a) Notice to a person with authority to represent and bind another person under a first-245
	335	+	trust instrument or Chapter 13 has the same effect as notice given directly to the person 246
	336	+	represented. 247
	337	+	“(b) Consent of or waiver by a person with authority to represent and bind another person 248
	338	+	under a first-trust instrument or Chapter 13 is binding on the person represented unless the 249 ENGROSSED ORIGINAL
594	339
595	340
596	341
597	342
598	343		14
599	344
600		-	“(a) For the purposes of this section, the term:
601		-	“(1) “Grantor trust” means a trust as to which a settlor of a first trust is considered
602		-	the owner under 26 U.S.C. §§ 671 through 677 or 26 U.S.C. § 679.
603		-	“(2) “Internal Revenue Code” means the United States Internal Revenue Code of
604		-	1986.
605		-	“(3) “Nongrantor trust” means a trust that is not a grantor trust.
606		-	“(4) “Qualified benefits property” means property subject to the minimum
607		-	distribution requirements of 26 U.S.C. § 401(a)(9), and any applicable regulations, or to any
608		-	similar requirements that refer to 26 U.S.C. § 401(a)(9) or the regulations.
609		-	“(b) An exercise of the decanting power is subject to the following limitations:
610		-	“(1) If a first trust contains property that qualified, or would have qualified but for
611		-	provisions of this chapter other than this section, for a marital deduction for purposes of the gift
612		-	or estate tax under the Internal Revenue Code or a state gift, estate, or inheritance tax, the
613		-	second-trust instrument must not include or omit any term that, if included in or omitted from the
614		-	trust instrument for the trust to which the property was transferred, would have prevented the
615		-	transfer from qualifying for the deduction, or would have reduced the amount of the deduction,
616		-	under the same provisions of the Internal Revenue Code or state law under which the transfer
617		-	qualified.
618		-	“(2) If the first trust contains property that qualified, or would have qualified but
619		-	for provisions of this chapter other than this section, for a charitable deduction for purposes of
620		-	the income, gift, or estate tax under the Internal Revenue Code or a state income, gift, estate, or
621		-	inheritance tax, the second-trust instrument must not include or omit any term that, if included in
622		-	or omitted from the trust instrument for the trust to which the property was transferred, would
623		-	have prevented the transfer from qualifying for the deduction, or would have reduced the amount
624		-	of the deduction, under the same provisions of the Internal Revenue Code or state law under
625		-	which the transfer qualified.
626		-	“(3) If the first trust contains property that qualified, or would have qualified but
627		-	for provisions of this chapter other than this section, for the exclusion from the gift tax described
628		-	in 26 U.S.C. § 2503(b), the second- trust instrument must not include or omit a term that, if
629		-	included in or omitted from the trust instrument for the trust to which the property was
630		-	transferred, would have prevented the transfer from qualifying under 26 U.S.C. § 2503(b). If the
631		-	first trust contains property that qualified, or would have qualified but for provisions of this
632		-	chapter other than this section, for the exclusion from the gift tax described in 26 U.S.C. §
633		-	2503(b) by application of 26 U.S.C. § 2503(c), the second- trust instrument must not include or
634		-	omit a term that, if included or omitted from the trust instrument for the trust to which the
635		-	property was transferred, would have prevented the transfer from qualifying under 26 U.S.C. §
636		-	2503(c).
637		-	“(4) If the property of the first trust includes shares of stock in an S corporation,
638		-	as defined in 26 U.S.C. § 1361 and the first trust is, or but for provisions of this chapter other
639		-	than this section would be, a permitted shareholder under any provision of 26 U.S.C. § 1361, an ENROLLED ORIGINAL
	345	+	person represented objects to the representation before the consent or waiver otherwise would 250
	346	+	become effective. 251
	347	+	“(c) A person with authority to represent and bind another person under a first-trust 252
	348	+	instrument or Chapter 13 may file an application under § 19- 1909 on behalf of the person 253
	349	+	represented. 254
	350	+	“(d) A settlor may not represent or bind a beneficiary under this chapter. 255
	351	+	“§ 19- 1909. Court involvement. 256
	352	+	“(a) On application of an authorized fiduciary a person entitled to notice under § 19-257
	353	+	1907(c), a beneficiary, or with respect to a charitable interest the Attorney General or other 258
	354	+	person that has standing to enforce the charitable interest, the court may: 259
	355	+	“(1) Provide instructions to the authorized fiduciary regarding whether a proposed 260
	356	+	exercise of the decanting power is permitted under this chapter and consistent with the fiduciary 261
	357	+	duties of the authorized fiduciary; 262
	358	+	“(2) Appoint a special fiduciary and authorize the special fiduciary to determine 263
	359	+	whether the decanting power should be exercised under this chapter and to exercise the decanting 264
	360	+	power; 265
	361	+	“(3) Approve an exercise of the decanting power; 266
	362	+	“(4) Determine that a proposed or attempted exercise of the decanting power is 267
	363	+	ineffective because: 268 ENGROSSED ORIGINAL
640	364
641	365
642	366
643	367
644	368		15
645	369
646		-	authorized fiduciary may exercise the power with respect to part or all of the S-corporation stock
647		-	only if any second trust receiving the stock is a permitted shareholder under 26 U.S.C. §
648		-	1361(c)(2). If the property of the first trust includes shares of stock in an S corporation and the
649		-	first trust is, or but for provisions of this chapter other than this section would be, a qualified
650		-	subchapter-S trust within the meaning of 26 U.S.C. § 1361(d), the second- trust instrument must
651		-	not include or omit a term that prevents the second trust from qualifying as a qualified
652		-	subchapter-S trust.
653		-	“(5) If the first trust contains property that qualified, or would have qualified but
654		-	for provisions of this chapter other than this section, for a zero inclusion ratio for purposes of the
655		-	generation-skipping transfer tax under 26 U.S.C. § 2642(c), the second-trust instrument must not
656		-	include or omit a term that, if included in or omitted from the first- trust instrument, would have
657		-	prevented the transfer to the first trust from qualifying for a zero inclusion ratio under 26 U.S.C.
658		-	§ 2642(c).
659		-	“(6) If the first trust is directly or indirectly the beneficiary of qualified benefits
660		-	property, the second- trust instrument may not include or omit any term that, if included in or
661		-	omitted from the first- trust instrument, would have increased the minimum distributions required
662		-	with respect to the qualified benefits property under 26 U.S.C. § 401(a)(9) and any applicable
663		-	regulations, or any similar requirements that refer to 26 U.S.C. § 401(a)(9) or the regulations. If
664		-	an attempted exercise of the decanting power violates the preceding sentence, the trustee is
665		-	deemed to have held the qualified benefits property and any reinvested distributions of the
666		-	property as a separate share from the date of the exercise of the power and § 19-1922 applies to
667		-	the separate share.
668		-	“(7) If the first trust qualifies as a grantor trust because of the application of 26
669		-	U.S.C. § 672(f)(2)(A), the second trust may not include or omit a term that, if included in or
670		-	omitted from the first- trust instrument, would have prevented the first trust from qualifying under
671		-	26 U.S.C. § 672(f)(2)(A).
672		-	“(8) For the purposes of this paragraph, the term “tax benefit” means a federal or
673		-	state tax deduction, exemption, exclusion, or other benefit not otherwise listed in this section,
674		-	except for a benefit arising from being a grantor trust. Subject to paragraph (9) of this subsection,
675		-	a second-trust instrument may not include or omit a term that, if included in or omitted from the
676		-	first-trust instrument, would have prevented qualification for a tax benefit if:
677		-	“(A) The first-trust instrument expressly indicates an intent to qualify for
678		-	the benefit or the first-trust instrument clearly is designed to enable the first trust to qualify for
679		-	the benefit; and
680		-	“(B) The transfer of property held by the first trust or the first trust
681		-	qualified, or but for provisions of this chapter other than this section, would have qualified for
682		-	the tax benefit.
683		-	“(9) Subject to paragraph (4) of this subsection:
684		-	“(A) Except as otherwise provided in paragraph (7) of this subsection, the
685		-	second trust may be a nongrantor trust, even if the first trust is a grantor trust; and ENROLLED ORIGINAL
	370	+	“(A) After applying § 19- 1922, the proposed or attempted exercise does 269
	371	+	not or did not comply with this chapter; or 270
	372	+	“(B) The proposed or attempted exercise would be or was an abuse of the 271
	373	+	fiduciary’s discretion or a breach of fiduciary duty; 272
	374	+	“(5) Determine the extent to which § 19- 1922 applies to a prior exercise of the 273
	375	+	decanting power; 274
	376	+	“(6) Provide instructions to the trustee regarding the application of § 19- 1922 to a 275
	377	+	prior exercise of the decanting power; or 276
	378	+	“(7) Order other relief to carry out the purposes of this chapter. 277
	379	+	“(b) On application of an authorized fiduciary, the court may approve: 278
	380	+	“(1) An increase in the fiduciary’s compensation under § 19- 1916; or 279
	381	+	“(2) A modification under § 19- 1918 of a provision granting a person the right to 280
	382	+	remove or replace the fiduciary. 281
	383	+	“§ 19- 1910. Formalities. 282
	384	+	“An exercise of the decanting power must be made in a record signed by an authorized 283
	385	+	fiduciary. The signed record must, directly or by reference to the notice required by § 19- 1907, 284
	386	+	identify the first trust and the second trust or trusts and state the property of the first trust being 285
	387	+	distributed to each second trust and the property, if any, that remains in the first trust. 286
	388	+	“§ 19- 1911. Decanting power under expanded distributive discretion. 287
	389	+	“(a) For the purposes of this section, the term: 288 ENGROSSED ORIGINAL
686	390
687	391
688	392
689	393
690	394		16
691	395
692		-	“(B) Except as otherwise provided in paragraph (10) of this subsection, the
693		-	second trust may be a grantor trust, even if the first trust is a nongrantor trust.
694		-	“(10) An authorized fiduciary may not exercise the decanting power if a settlor
695		-	objects in a signed record delivered to the fiduciary within the notice period and:
696		-	“(A) The first trust and a second trust are both grantor trusts, in whole or
697		-	in part, the first trust grants the settlor or another person the power to cause the second trust to
698		-	cease to be a grantor trust, and the second trust does not grant an equivalent power to the settlor
699		-	or other person; or
700		-	“(B) The first trust is a nongrantor trust and a second trust is a grantor
701		-	trust, in whole or in part, with respect to the settlor, unless:
702		-	“(i) The settlor has the power at all times to cause the second trust
703		-	to cease to be a grantor trust; or
704		-	“(ii) The first-trust instrument contains a provision granting the
705		-	settlor or another person a power that would cause the first trust to cease to be a grantor trust and
706		-	the second-trust instrument contains the same provision.
707		-	“§ 19- 1920. Duration of second trust.
708		-	“(a) Subject to subsection (b) of this section, a second trust may have a duration that is
709		-	the same as or different from the duration of the first trust.
710		-	“(b) To the extent that property of a second trust is attributable to property of the first
711		-	trust, the property of the second trust is subject to any rules governing maximum perpetuity,
712		-	accumulation, or suspension of the power of alienation which apply to property of the first trust.
713		-	“§ 19- 1921. Need to distribute not required.
714		-	“An authorized fiduciary may exercise the decanting power whether or not under the first
715		-	trust’s discretionary distribution standard the fiduciary would have made or could have been
716		-	compelled to make a discretionary distribution of principal at the time of the exercise.
717		-	“§ 19- 1922. Saving provision.
718		-	“(a) If exercise of the decanting power would be effective under this chapter except that
719		-	the second-trust instrument in part does not comply with this chapter, the exercise of the power is
720		-	effective and the following rules apply with respect to the principal of the second trust
721		-	attributable to the exercise of the power:
722		-	“(1) A provision in the second- trust instrument which is not permitted under this
723		-	chapter is void to the extent necessary to comply with this chapter; and
724		-	“(2) A provision required by this chapter to be in the second- trust instrument
725		-	which is not contained in the instrument is deemed to be included in the instrument to the extent
726		-	necessary to comply with this chapter.
727		-	“(b) If a trustee or other fiduciary of a second trust determines that subsection (a) of this
728		-	section applies to a prior exercise of the decanting power, the fiduciary shall take corrective
729		-	action consistent with the fiduciary’s duties.
730		-	“§ 19- 1923. Trust for care of animal.
731		-	“(a) For the purposes of this section, the term: ENROLLED ORIGINAL
	396	+	“(1) “Noncontingent right” means a right that is not subject to the exercise of 289
	397	+	discretion or the occurrence of a specified event that is not certain to occur. The term 290
	398	+	“noncontingent right” does not include a right held by a beneficiary if any person has discretion 291
	399	+	to distribute property subject to the right to any person other than the beneficiary or the 292
	400	+	beneficiary’s estate. 293
	401	+	“(2) “Presumptive remainder beneficiary” means a qualified beneficiary other 294
	402	+	than a current beneficiary. 295
	403	+	“(3) “Successor beneficiary” means a beneficiary that is not a qualified 296
	404	+	beneficiary on the date the beneficiary’s qualification is determined. The term “successor 297
	405	+	beneficiary” does not include a person that is a beneficiary only because the person holds a 298
	406	+	nongeneral power of appointment. 299
	407	+	“(4) “Vested interest” means: 300
	408	+	“(A) A right to a mandatory distribution that is a noncontingent right as of 301
	409	+	the date of the exercise of the decanting power; 302
	410	+	“(B) A current and noncontingent right, annually or more frequently, to a 303
	411	+	mandatory distribution of income, a specified dollar amount, or a percentage of value of some or 304
	412	+	all of the trust property; 305
	413	+	“(C) A current and noncontingent right, annually or more frequently, to 306
	414	+	withdraw income, a specified dollar amount, or a percentage of value of some or all of the trust 307
	415	+	property; 308 ENGROSSED ORIGINAL
732	416
733	417
734	418
735	419
736	420		17
737	421
738		-	“(1) “Animal trust” means a trust or an interest in a trust created to provide for the
739		-	care of one or more animals.
740		-	“(2) “Protector” means a person appointed in an animal trust to enforce the trust
741		-	on behalf of the animal or, if no such person is appointed in the trust, a person appointed by the
742		-	court for that purpose.
743		-	“(b) The decanting power may be exercised over an animal trust that has a protector to
744		-	the extent the trust could be decanted under this chapter if each animal that benefits from the
745		-	trust were an individual, if the protector consents in a signed record to the exercise of the power.
746		-	“(c) A protector for an animal has the rights under this chapter of a qualified beneficiary.
747		-	“(d) Notwithstanding any other provision of this chapter, if a first trust is an animal trust,
748		-	in an exercise of the decanting power, the second trust must provide that trust property may be
749		-	applied only to its intended purpose for the period the first trust benefitted the animal.
750		-	“§ 19- 1924. Terms of second trust.
751		-	“A reference in Chapter 13 of this Title to a trust instrument or terms of the trust includes
752		-	a second-trust instrument and the terms of the second trust.
753		-	“§ 19- 1925. Settlor.
754		-	“(a) For the purposes of law of the District other than this chapter and subject to
755		-	subsection (b) of this section, a settlor of a first trust is deemed to be the settlor of the second
756		-	trust with respect to the portion of the principal of the first trust subject to the exercise of the
757		-	decanting power.
758		-	“(b) In determining settlor intent with respect to a second trust, the intent of a settlor of
759		-	the first trust, a settlor of the second trust, and the authorized fiduciary may be considered.
760		-	“§ 19- 1926. Later-discovered property.
761		-	“(a) Except as otherwise provided in subsection (c) of this section, if exercise of the
762		-	decanting power was intended to distribute all the principal of the first trust to one or more
763		-	second trusts, later-discovered property belonging to the first trust and property paid to or
764		-	acquired by the first trust after the exercise of the power is part of the trust estate of the second
765		-	trust or trusts.
766		-	“(b) Except as otherwise provided in subsection (c) of this section, if exercise of the
767		-	decanting power was intended to distribute less than all the principal of the first trust to one or
768		-	more second trusts, later-discovered property belonging to the first trust or property paid to or
769		-	acquired by the first trust after exercise of the power remains part of the trust estate of the first
770		-	trust.
771		-	“(c) An authorized fiduciary may provide in an exercise of the decanting power or by the
772		-	terms of a second trust for disposition of later-discovered property belonging to the first trust or
773		-	property paid to or acquired by the first trust after exercise of the power.
774		-	“§19-1927. Obligations.
775		-	“A debt, liability, or other obligation enforceable against property of a first trust is
776		-	enforceable to the same extent against the property when held by the second trust after exercise
777		-	of the decanting power. ENROLLED ORIGINAL
	422	+	“(D) A presently exercisable general power of appointment; or 309
	423	+	“(E) A right to receive an ascertainable part of the trust property on the 310
	424	+	trust’s termination which is not subject to the exercise of discretion or to the occurrence of a 311
	425	+	specified event that is not certain to occur. 312
	426	+	“(b) Subject to subsection (c) of this section and § 19- 1914, an authorized fiduciary that 313
	427	+	has expanded distributive discretion over the principal of a first trust for the benefit of one or 314
	428	+	more current beneficiaries may exercise the decanting power over the principal of the first trust. 315
	429	+	“(c) Subject to § 19- 1913, in an exercise of the decanting power under this section, a 316
	430	+	second trust may not: 317
	431	+	“(1) Include as a current beneficiary a person that is not a current beneficiary of 318
	432	+	the first trust, except as otherwise provided in subsection (d) of this section; 319
	433	+	“(2) Include as a presumptive remainder beneficiary or successor beneficiary a 320
	434	+	person that is not a current beneficiary, presumptive remainder beneficiary, or successor 321
	435	+	beneficiary of the first trust, except as otherwise provided in subsection (d) of this section; or 322
	436	+	“(3) Reduce or eliminate a vested interest. 323
	437	+	“(d) Subject to subsection (c)(3) of this section and § 19- 1914, in an exercise of the 324
	438	+	decanting power under this section, a second trust may be a trust created or administered under 325
	439	+	the law of any jurisdiction and may: 326
	440	+	“(1) Retain a power of appointment granted in the first trust; 327 ENGROSSED ORIGINAL
778	441
779	442
780	443
781	444
782	445		18
783	446
784		-	“§ 19- 1928. Uniformity of application and construction.
785		-	“In applying and construing this chapter, consideration must be given to the need to
786		-	promote uniformity of the law with respect to its subject matter among states that enact it.
787		-	“§ 19- 1929. Relation to electronic signatures in global and national commerce act.
788		-	“This chapter modifies, limits, or supersedes the Electronic Signatures in Global and
789		-	National Commerce Act, approved June 30, 2000 (114 Stat. 464; 15 U.S.C. § 7001 et seq. ), but
790		-	does not modify, limit, or supersede section 101(c) of that act (15 U.S.C. § 7001(c)), or authorize
791		-	electronic delivery of any of the notices described in section 103(b) of that act (15 U.S.C. §
792		-	7003(b)).”.
793		-
794		-	Sec. 3. Fiscal impact statement.
795		-	The Council adopts the fiscal impact statement in the committee report as the fiscal
796		-	impact statement required by section 4a of the General Legislative Procedures Act of 1975,
797		-	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a).
798		-
799		-	Sec. 4. Effective date.
800		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
801		-	Mayor, action by the Council to override the veto), and a 30 -day period of congressional review
802		-	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
803		-	24, 1973 (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(1)).
804		-
805		-
806		-	______________________________
807		-	Chairman
808		-	Council of the District of Columbia
	447	+	“(2) Omit a power of appointment granted in the first trust, other than a presently 328
	448	+	exercisable general power of appointment; 329
	449	+	“(3) Create or modify a power of appointment if the powerholder is a current 330
	450	+	beneficiary of the first trust and the authorized fiduciary has expanded distributive discretion to 331
	451	+	distribute principal to the beneficiary; and 332
	452	+	“(4) Create or modify a power of appointment if the powerholder is a presumptive 333
	453	+	remainder beneficiary or successor beneficiary of the first trust, but the exercise of the power 334
	454	+	may take effect only after the powerholder becomes, or would have become if then living, a 335
	455	+	current beneficiary. 336
	456	+	“(e) A power of appointment described in subsection (d)(1) through (4) of this section 337
	457	+	may be general or nongeneral. The class of permissible appointees in favor of which the power 338
	458	+	may be exercised may be broader than or different from the beneficiaries of the first trust. 339
	459	+	“(f) If an authorized fiduciary has expanded distributive discretion over part but not all of 340
	460	+	the principal of a first trust, the fiduciary may exercise the decanting power under this section 341
	461	+	over that part of the principal over which the authorized fiduciary has expanded distributive 342
	462	+	discretion. 343
	463	+	“§ 19- 1912. Decanting power under limited distributive discretion. 344
	464	+	“(a) For the purposes of this section, the term “limited distributive discretion” means a 345
	465	+	discretionary power of distribution that is limited to an ascertainable standard or a reasonably 346
	466	+	definite standard. 347 ENGROSSED ORIGINAL
809	467
810	468
811	469
812	470
	471	+	19
813	472
814		-	_________________________________
815		-	Mayor
816		-	District of Columbia
	473	+	“(b) An authorized fiduciary that has limited distributive discretion over the principal of 348
	474	+	the first trust for benefit of one or more current beneficiaries may exercise the decanting power 349
	475	+	over the principal of the first trust. 350
	476	+	“(c) Under this section and subject to § 19- 1914, a second trust may be created or 351
	477	+	administered under the law of any jurisdiction. Under this section, the second trusts, in the 352
	478	+	aggregate, must grant each beneficiary of the first trust beneficial interests which are 353
	479	+	substantially similar to the beneficial interests of the beneficiary in the first trust. 354
	480	+	“(d) A power to make a distribution under a second trust for the benefit of a beneficiary 355
	481	+	who is an individual is substantially similar to a power under the first trust to make a distribution 356
	482	+	directly to the beneficiary. A distribution is for the benefit of a beneficiary if: 357
	483	+	“(1) The distribution is applied for the benefit of the beneficiary; 358
	484	+	“(2) The beneficiary is under a legal disability or the trustee reasonably believes 359
	485	+	the beneficiary is incapacitated, and the distribution is made as permitted under Chapter 13; or 360
	486	+	“(3) The distribution is made as permitted under the terms of the first- trust 361
	487	+	instrument and the second- trust instrument for the benefit of the beneficiary. 362
	488	+	“(e) If an authorized fiduciary has limited distributive discretion over part but not all of 363
	489	+	the principal of a first trust, the fiduciary may exercise the decanting power under this section 364
	490	+	over that part of the principal over which the authorized fiduciary has limited distributive 365
	491	+	discretion. 366
	492	+	“§ 19- 1913. Trust for beneficiary with disability. 367 ENGROSSED ORIGINAL
817	493
	494	+
	495	+
	496	+
	497	+	20
	498	+
	499	+	“(a) For the purposes of this section, the term: 368
	500	+	“(1) “Beneficiary with a disability” means a beneficiary of a first trust who the 369
	501	+	special-needs fiduciary believes may qualify for governmental benefits based on disability, 370
	502	+	whether or not the beneficiary currently receives those benefits or is an individual who has been 371
	503	+	adjudicated incompetent. 372
	504	+	“(2) “Governmental benefits” means financial aid or services from a state, federal, 373
	505	+	or other public agency. 374
	506	+	“(3) “Special-needs fiduciary” means, with respect to a trust that has a beneficiary 375
	507	+	with a disability: 376
	508	+	“(A) A trustee or other fiduciary, other than a settlor, that has discretion to 377
	509	+	distribute part or all of the principal of a first trust to one or more current beneficiaries; 378
	510	+	“(B) If no trustee or fiduciary has discretion under subparagraph (A) of 379
	511	+	this paragraph, a trustee or other fiduciary, other than a settlor, that has discretion to distribute 380
	512	+	part or all of the income of the first trust to one or more current beneficiaries; or 381
	513	+	“(C) If no trustee or fiduciary has discretion under subparagraphs (A) and 382
	514	+	(B) of this paragraph, a trustee or other fiduciary, other than a settlor, that is required to distribute 383
	515	+	part or all of the income or principal of the first trust to one or more current beneficiaries. 384
	516	+	“(4) “Special-needs trust” means a trust the trustee believes would not be 385
	517	+	considered a resource for purposes of determining whether a beneficiary with a disability is 386
	518	+	eligible for governmental benefits. 387 ENGROSSED ORIGINAL
	519	+
	520	+
	521	+
	522	+
	523	+	21
	524	+
	525	+	“(b) A special-needs fiduciary may exercise the decanting power under § 19 -1911 over 388
	526	+	the principal of a first trust as if the fiduciary had authority to distribute principal to a beneficiary 389
	527	+	with a disability subject to expanded distributive discretion if: 390
	528	+	“(1) A second trust is a special-needs trust that benefits the beneficiary with a 391
	529	+	disability; and 392
	530	+	“(2) The special-needs fiduciary determines that exercise of the decanting power 393
	531	+	will further the purposes of the first trust. 394
	532	+	“(c) In an exercise of the decanting power under this section, the following rules apply: 395
	533	+	“(1) Notwithstanding § 19- 1911(c)(2), the interest in the second trust of a 396
	534	+	beneficiary with a disability may: 397
	535	+	“(A) Be a pooled trust as defined by Medicaid law for the benefit of the 398
	536	+	beneficiary with a disability under 42 U.S.C. § 1396p(d)(4)(C); or 399
	537	+	“(B) Contain payback provisions complying with reimbursement 400
	538	+	requirements of Medicaid law under 42 U.S.C. § 1396p(d)(4)(A). 401
	539	+	“(2) § 19- 1911(c)(3) does not apply to the interests of the beneficiary with a 402
	540	+	disability. 403
	541	+	“(3) Except as affected by any change to the interests of the beneficiary with a 404
	542	+	disability, the second trust, or if there are two or more second trusts, the second trusts in the 405
	543	+	aggregate, must grant each other beneficiary of the first trust beneficial interests in the second 406
	544	+	trusts which are substantially similar to the beneficiary’s beneficial interests in the first trust. 407 ENGROSSED ORIGINAL
	545	+
	546	+
	547	+
	548	+
	549	+	22
	550	+
	551	+	“§ 19- 1914. Protection of charitable interest. 408
	552	+	“(a) For the purposes of this section, the term: 409
	553	+	“(1) “Determinable charitable interest” means a charitable interest that is a right to 410
	554	+	a mandatory distribution currently, periodically, on the occurrence of a specified event, or after 411
	555	+	the passage of a specified time and which is unconditional or will be held solely for charitable 412
	556	+	purposes. 413
	557	+	“(2) “Unconditional” means not subject to the occurrence of a specified event that 414
	558	+	is not certain to occur, other than a requirement in a trust instrument that a charitable 415
	559	+	organization be in existence or qualify under a particular provision of the United States Internal 416
	560	+	Revenue Code of 1986 on the date of the distribution, if the charitable organization meets the 417
	561	+	requirement on the date of determination. 418
	562	+	“(b) If a first trust contains a determinable charitable interest, the Attorney General has 419
	563	+	the rights of a qualified beneficiary and may represent and bind the charitable interest. 420
	564	+	“(c) If a first trust contains a charitable interest, the second trust or trusts may not: 421
	565	+	“(1) Diminish the charitable interest; 422
	566	+	“(2) Diminish the interest of an identified charitable organization that holds the 423
	567	+	charitable interest; 424
	568	+	“(3) Alter any charitable purpose stated in the first-trust instrument; or 425
	569	+	“(4) Alter any condition or restriction related to the charitable interest. 426 ENGROSSED ORIGINAL
	570	+
	571	+
	572	+
	573	+
	574	+	23
	575	+
	576	+	“(d) If there are 2 or more second trusts, the second trusts shall be treated as one trust for 427
	577	+	purposes of determining whether the exercise of the decanting power diminishes the charitable 428
	578	+	interest or diminishes the interest of an identified charitable organization for purposes of 429
	579	+	subsection (c) of this section. 430
	580	+	“(e) If a first trust contains a determinable charitable interest, the second trust or trusts 431
	581	+	that include a charitable interest pursuant to subsection (c) of this section must be administered 432
	582	+	under the law of the District unless: 433
	583	+	“(1) The Attorney General, after receiving notice under § 19- 1907, fails to object 434
	584	+	in a signed record delivered to the authorized fiduciary within the notice period; 435
	585	+	“(2) The Attorney General consents in a signed record to the second trust or trusts 436
	586	+	being administered under the law of another jurisdiction; or 437
	587	+	“(3) The court approves the exercise of the decanting power. 438
	588	+	“(f) This chapter does not limit the powers and duties of the Attorney General under law 439
	589	+	of the District other than this chapter. 440
	590	+	“§ 19- 1915. Trust limitation on decanting. 441
	591	+	“(a) An authorized fiduciary may not exercise the decanting power to the extent the first-442
	592	+	trust instrument expressly prohibits exercise of: 443
	593	+	“(1) The decanting power; or 444
	594	+	“(2) A power granted by state law to the fiduciary to distribute part or all of the 445
	595	+	principal of the trust to another trust or to modify the trust. 446 ENGROSSED ORIGINAL
	596	+
	597	+
	598	+
	599	+
	600	+	24
	601	+
	602	+	“(b) Exercise of the decanting power is subject to any restriction in the first-trust 447
	603	+	instrument that expressly applies to exercise of: 448
	604	+	“(1) The decanting power; or 449
	605	+	“(2) A power granted by state law to a fiduciary to distribute part or all of the 450
	606	+	principal of the trust to another trust or to modify the trust. 451
	607	+	“(c) A general prohibition of the amendment or revocation of a first trust, a spendthrift 452
	608	+	clause, or a clause restraining the voluntary or involuntary transfer of a beneficiary’s interest 453
	609	+	does not preclude exercise of the de 454
	610	+	“(d) Subject to subsections (a) and (b) of this section, an authorized fiduciary may 455
	611	+	exercise the decanting power under this chapter even if the first-trust instrument permits the 456
	612	+	authorized fiduciary or another person to modify the first-trust instrument or to distribute part or 457
	613	+	all of the principal of the first trust to another trust. 458
	614	+	“(e) If a first-trust instrument contains an express prohibition described in subsection (a) 459
	615	+	of this section or an express restriction described in subsection (b) of this section, the provision 460
	616	+	must be included in the second- trust instrument. 461
	617	+	“§ 19- 1916. Change in compensation. 462
	618	+	“(a) If a first-trust instrument specifies an authorized fiduciary’s compensation, the 463
	619	+	fiduciary may not exercise the decanting power to increase the fiduciary’s compensation above 464
	620	+	the specified compensation unless: 465 ENGROSSED ORIGINAL
	621	+
	622	+
	623	+
	624	+
	625	+	25
	626	+
	627	+	“(1) All qualified beneficiaries of the second trust consent to the increase in a 466
	628	+	signed record; or 467
	629	+	“(2) The increase is approved by the court. 468
	630	+	“(b) If a first-trust instrument does not specify an authorized fiduciary’s compensation, 469
	631	+	the fiduciary may not exercise the decanting power to increase the fiduciary’s compensation 470
	632	+	above the compensation permitted by Chapter 13 unless: 471
	633	+	“(1) All qualified beneficiaries of the second trust consent to the increase in a 472
	634	+	signed record; or 473
	635	+	“(2) The increase is approved by the court. 474
	636	+	“(c) A change in an authorized fiduciary’s compensation which is incidental to other 475
	637	+	changes made by the exercise of the decanting power is not an increase in the fiduciary’s 476
	638	+	compensation for the purposes of subsections (a) and (b) of this section. 477
	639	+	“§ 19- 1917. Relief from liability and indemnification. 478
	640	+	“(a) Except as otherwise provided in this section, a second- trust instrument may not 479
	641	+	relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-480
	642	+	trust instrument. 481
	643	+	“(b) A second-trust instrument may provide for indemnification of an authorized 482
	644	+	fiduciary of the first trust or another person acting in a fiduciary capacity under the first trust for 483
	645	+	any liability or claim that would have been payable from the first trust if the decanting power had 484
	646	+	not been exercised. 485 ENGROSSED ORIGINAL
	647	+
	648	+
	649	+
	650	+
	651	+	26
	652	+
	653	+	“(c) A second-trust instrument may not reduce fiduciary liability in the aggregate. 486
	654	+	“(d) Subject to subsection (c) of this section, a second- trust instrument may divide and 487
	655	+	reallocate fiduciary powers among fiduciaries, including one or more trustees, distribution 488
	656	+	advisors, investment advisors, trust protectors, or other persons, and relieve a fiduciary from 489
	657	+	liability for an act or failure to act of another fiduciary as permitted by law of the District other 490
	658	+	than this chapter. 491
	659	+	“§ 19- 1918. Removal or replacement of authorized fiduciary. 492
	660	+	“An authorized fiduciary may not exercise the decanting power to modify a provision in a 493
	661	+	first-trust instrument granting another person power to remove or replace the fiduciary unless: 494
	662	+	“(1) The person holding the power consents to the modification in a signed record 495
	663	+	and the modification applies only to the person; 496
	664	+	“(2) The person holding the power and the qualified beneficiaries of the second 497
	665	+	trust consent to the modification in a signed record and the modification grants a substantially 498
	666	+	similar power to another person; or 499
	667	+	“(3) The court approves the modification and the modification grants a 500
	668	+	substantially similar power to another person. 501
	669	+	“§ 19- 1919. Tax-related limitations. 502
	670	+	“(a) For the purposes of this section, the term: 503
	671	+	“(1) “Grantor trust” means a trust as to which a settlor of a first trust is considered 504
	672	+	the owner under 26 U.S.C. §§ 671 through 677 or 26 U.S.C. § 679. 505 ENGROSSED ORIGINAL
	673	+
	674	+
	675	+
	676	+
	677	+	27
	678	+
	679	+	“(2) “Internal Revenue Code” means the United States Internal Revenue Code of 506
	680	+	1986. 507
	681	+	“(3) “Nongrantor trust” means a trust that is not a grantor trust. 508
	682	+	“(4) “Qualified benefits property” means property subject to the minimum 509
	683	+	distribution requirements of 26 U.S.C. § 401(a)(9), and any applicable regulations, or to any 510
	684	+	similar requirements that refer to 26 U.S.C. § 401(a)(9) or the regulations. 511
	685	+	“(b) An exercise of the decanting power is subject to the following limitations: 512
	686	+	“(1) If a first trust contains property that qualified, or would have qualified but for 513
	687	+	provisions of this chapter other than this section, for a marital deduction for purposes of the gift 514
	688	+	or estate tax under the Internal Revenue Code or a state gift, estate, or inheritance tax, the 515
	689	+	second-trust instrument must not include or omit any term that, if included in or omitted from the 516
	690	+	trust instrument for the trust to which the property was transferred, would have prevented the 517
	691	+	transfer from qualifying for the deduction, or would have reduced the amount of the deduction, 518
	692	+	under the same provisions of the Internal Revenue Code or state law under which the transfer 519
	693	+	qualified. 520
	694	+	“(2) If the first trust contains property that qualified, or would have qualified but 521
	695	+	for provisions of this chapter other than this section, for a charitable deduction for purposes of 522
	696	+	the income, gift, or estate tax under the Internal Revenue Code or a state income, gift, estate, or 523
	697	+	inheritance tax, the second-trust instrument must not include or omit any term that, if included in 524
	698	+	or omitted from the trust instrument for the trust to which the property was transferred, would 525 ENGROSSED ORIGINAL
	699	+
	700	+
	701	+
	702	+
	703	+	28
	704	+
	705	+	have prevented the transfer from qualifying for the deduction, or would have reduced the amount 526
	706	+	of the deduction, under the same provisions of the Internal Revenue Code or state law under 527
	707	+	which the transfer qualified. 528
	708	+	“(3) If the first trust contains property that qualified, or would have qualified but 529
	709	+	for provisions of this chapter other than this section, for the exclusion from the gift tax described 530
	710	+	in 26 U.S.C. § 2503(b), the second- trust instrument must not include or omit a term that, if 531
	711	+	included in or omitted from the trust instrument for the trust to which the property was 532
	712	+	transferred, would have prevented the transfer from qualifying under 26 U.S.C. § 2503(b). If the 533
	713	+	first trust contains property that qualified, or would have qualified but for provisions of this 534
	714	+	chapter other than this section, for the exclusion from the gift tax described in 26 U.S.C. § 535
	715	+	2503(b) by application of 26 U.S.C. § 2503(c), the second- trust instrument must not include or 536
	716	+	omit a term that, if included or omitted from the trust instrument for the trust to which the 537
	717	+	property was transferred, would have prevented the transfer from qualifying under 26 U.S.C. § 538
	718	+	2503(c). 539
	719	+	“(4) If the property of the first trust includes shares of stock in an S corporation, 540
	720	+	as defined in 26 U.S.C. § 1361 and the first trust is, or but for provisions of this chapter other 541
	721	+	than this section would be, a permitted shareholder under any provision of 26 U.S.C. § 1361, an 542
	722	+	authorized fiduciary may exercise the power with respect to part or all of the S-corporation stock 543
	723	+	only if any second trust receiving the stock is a permitted shareholder under 26 U.S.C. § 544
	724	+	1361(c)(2). If the property of the first trust includes shares of stock in an S corporation and the 545 ENGROSSED ORIGINAL
	725	+
	726	+
	727	+
	728	+
	729	+	29
	730	+
	731	+	first trust is, or but for provisions of this chapter other than this section would be, a qualified 546
	732	+	subchapter-S trust within the meaning of 26 U.S.C. § 1361(d), the second- trust instrument must 547
	733	+	not include or omit a term that prevents the second trust from qualifying as a qualified 548
	734	+	subchapter-S trust. 549
	735	+	“(5) If the first trust contains property that qualified, or would have qualified but 550
	736	+	for provisions of this chapter other than this section, for a zero inclusion ratio for purposes of the 551
	737	+	generation-skipping transfer tax under 26 U.S.C. § 2642(c), the second- trust instrument must not 552
	738	+	include or omit a term that, if included in or omitted from the first- trust instrument, would have 553
	739	+	prevented the transfer to the first trust from qualifying for a zero inclusion ratio under 26 U.S.C. 554
	740	+	§ 2642(c). 555
	741	+	“(6) If the first trust is directly or indirectly the beneficiary of qualified benefits 556
	742	+	property, the second- trust instrument may not include or omit any term that, if included in or 557
	743	+	omitted from the first- trust instrument, would have increased the minimum distributions required 558
	744	+	with respect to the qualified benefits property under 26 U.S.C. § 401(a)(9) and any applicable 559
	745	+	regulations, or any similar requirements that refer to 26 U.S.C. § 401(a)(9) or the regulations. If 560
	746	+	an attempted exercise of the decanting power violates the preceding sentence, the trustee is 561
	747	+	deemed to have held the qualified benefits property and any reinvested distributions of the 562
	748	+	property as a separate share from the date of the exercise of the power and § 19-1922 applies to 563
	749	+	the separate share. 564 ENGROSSED ORIGINAL
	750	+
	751	+
	752	+
	753	+
	754	+	30
	755	+
	756	+	“(7) If the first trust qualifies as a grantor trust because of the application of 26 565
	757	+	U.S.C. § 672(f)(2)(A), the second trust may not include or omit a term that, if included in or 566
	758	+	omitted from the first- trust instrument, would have prevented the first trust from qualifying under 567
	759	+	26 U.S.C. § 672(f)(2)(A). 568
	760	+	“(8) For the purposes of this paragraph, the term “tax benefit” means a federal or 569
	761	+	state tax deduction, exemption, exclusion, or other benefit not otherwise listed in this section, 570
	762	+	except for a benefit arising from being a grantor trust. Subject to paragraph (9) of this 571
	763	+	subsection, a second-trust instrument may not include or omit a term that, if included in or 572
	764	+	omitted from the first- trust instrument, would have prevented qualification for a tax benefit if: 573
	765	+	“(A) The first-trust instrument expressly indicates an intent to qualify for 574
	766	+	the benefit or the first-trust instrument clearly is designed to enable the first trust to qualify for 575
	767	+	the benefit; and 576
	768	+	“(B) The transfer of property held by the first trust or the first trust 577
	769	+	qualified, or but for provisions of this chapter other than this section, would have qualified for 578
	770	+	the tax benefit. 579
	771	+	“(9) Subject to paragraph (4) of this subsection: 580
	772	+	“(A) Except as otherwise provided in paragraph (7) of this subsection, the 581
	773	+	second trust may be a nongrantor trust, even if the first trust is a grantor trust; and 582
	774	+	“(B) Except as otherwise provided in paragraph (10) of this subsection, the 583
	775	+	second trust may be a grantor trust, even if the first trust is a nongrantor trust. 584 ENGROSSED ORIGINAL
	776	+
	777	+
	778	+
	779	+
	780	+	31
	781	+
	782	+	“(10) An authorized fiduciary may not exercise the decanting power if a settlor 585
	783	+	objects in a signed record delivered to the fiduciary within the notice period and: 586
	784	+	“(A) The first trust and a second trust are both grantor trusts, in whole or 587
	785	+	in part, the first trust grants the settlor or another person the power to cause the second trust to 588
	786	+	cease to be a grantor trust, and the second trust does not grant an equivalent power to the settlor 589
	787	+	or other person; or 590
	788	+	“(B) The first trust is a nongrantor trust and a second trust is a grantor 591
	789	+	trust, in whole or in part, with respect to the settlor, unless: 592
	790	+	“(i) The settlor has the power at all times to cause the second trust 593
	791	+	to cease to be a grantor trust; or 594
	792	+	“(ii) The first-trust instrument contains a provision granting the 595
	793	+	settlor or another person a power that would cause the first trust to cease to be a grantor trust and 596
	794	+	the second-trust instrument contains the same provision. 597
	795	+	“§ 19- 1920. Duration of second trust. 598
	796	+	“(a) Subject to subsection (b) of this section, a second trust may have a duration that is 599
	797	+	the same as or different from the duration of the first trust. 600
	798	+	“(b) To the extent that property of a second trust is attributable to property of the first 601
	799	+	trust, the property of the second trust is subject to any rules governing maximum perpetuity, 602
	800	+	accumulation, or suspension of the power of alienation which apply to property of the first trust. 603
	801	+	“§ 19- 1921. Need to distribute not required. 604 ENGROSSED ORIGINAL
	802	+
	803	+
	804	+
	805	+
	806	+	32
	807	+
	808	+	“An authorized fiduciary may exercise the decanting power whether or not under the first 605
	809	+	trust’s discretionary distribution standard the fiduciary would have made or could have been 606
	810	+	compelled to make a discretionary distribution of principal at the time of the exercise. 607
	811	+	“§ 19- 1922. Saving provision. 608
	812	+	“(a) If exercise of the decanting power would be effective under this chapter except that 609
	813	+	the second-trust instrument in part does not comply with this chapter, the exercise of the power is 610
	814	+	effective and the following rules apply with respect to the principal of the second trust 611
	815	+	attributable to the exercise of the power: 612
	816	+	“(1) A provision in the second- trust instrument which is not permitted under this 613
	817	+	chapter is void to the extent necessary to comply with this chapter; and 614
	818	+	“(2) A provision required by this chapter to be in the second- trust instrument 615
	819	+	which is not contained in the instrument is deemed to be included in the instrument to the extent 616
	820	+	necessary to comply with this chapter. 617
	821	+	“(b) If a trustee or other fiduciary of a second trust determines that subsection (a) of this 618
	822	+	section applies to a prior exercise of the decanting power, the fiduciary shall take corrective 619
	823	+	action consistent with the fiduciary’s duties. 620
	824	+	“§ 19- 1923. Trust for care of animal. 621
	825	+	“(a) For the purposes of this section, the term: 622
	826	+	“(1) “Animal trust” means a trust or an interest in a trust created to provide for the 623
	827	+	care of one or more animals. 624 ENGROSSED ORIGINAL
	828	+
	829	+
	830	+
	831	+
	832	+	33
	833	+
	834	+	“(2) “Protector” means a person appointed in an animal trust to enforce the trust 625
	835	+	on behalf of the animal or, if no such person is appointed in the trust, a person appointed by the 626
	836	+	court for that purpose. 627
	837	+	“(b) The decanting power may be exercised over an animal trust that has a protector to 628
	838	+	the extent the trust could be decanted under this chapter if each animal that benefits from the 629
	839	+	trust were an individual, if the protector consents in a signed record to the exercise of the power. 630
	840	+	“(c) A protector for an animal has the rights under this chapter of a qualified beneficiary. 631
	841	+	“(d) Notwithstanding any other provision of this chapter, if a first trust is an animal trust, 632
	842	+	in an exercise of the decanting power, the second trust must provide that trust property may be 633
	843	+	applied only to its intended purpose for the period the first trust benefitted the animal. 634
	844	+	“§ 19- 1924. Terms of second trust. 635
	845	+	“A reference in Chapter 13 to a trust instrument or terms of the trust includes a second-636
	846	+	trust instrument and the terms of the second trust. 637
	847	+	“§ 19- 1925. Settlor. 638
	848	+	“(a) For the purposes of law of the District other than this chapter and subject to 639
	849	+	subsection (b) of this section, a settlor of a first trust is deemed to be the settlor of the second 640
	850	+	trust with respect to the portion of the principal of the first trust subject to the exercise of the 641
	851	+	decanting power. 642
	852	+	“(b) In determining settlor intent with respect to a second trust, the intent of a settlor of 643
	853	+	the first trust, a settlor of the second trust, and the authorized fiduciary may be considered. 644 ENGROSSED ORIGINAL
	854	+
	855	+
	856	+
	857	+
	858	+	34
	859	+
	860	+	“§ 19- 1926. Later-discovered property. 645
	861	+	“(a) Except as otherwise provided in subsection (c) of this section, if exercise of the 646
	862	+	decanting power was intended to distribute all the principal of the first trust to one or more 647
	863	+	second trusts, later-discovered property belonging to the first trust and property paid to or 648
	864	+	acquired by the first trust after the exercise of the power is part of the trust estate of the second 649
	865	+	trust or trusts. 650
	866	+	“(b) Except as otherwise provided in subsection (c) of this section, if exercise of the 651
	867	+	decanting power was intended to distribute less than all the principal of the first trust to one or 652
	868	+	more second trusts, later-discovered property belonging to the first trust or property paid to or 653
	869	+	acquired by the first trust after exercise of the power remains part of the trust estate of the first 654
	870	+	trust. 655
	871	+	“(c) An authorized fiduciary may provide in an exercise of the decanting power or by the 656
	872	+	terms of a second trust for disposition of later-discovered property belonging to the first trust or 657
	873	+	property paid to or acquired by the first trust after exercise of the power. 658
	874	+	“§19-1927. Obligations. 659
	875	+	“A debt, liability, or other obligation enforceable against property of a first trust is 660
	876	+	enforceable to the same extent against the property when held by the second trust after exercise 661
	877	+	of the decanting power. 662
	878	+	“§ 19- 1928. Uniformity of application and construction. 663 ENGROSSED ORIGINAL
	879	+
	880	+
	881	+
	882	+
	883	+	35
	884	+
	885	+	“In applying and construing this chapter, consideration must be given to the need to 664
	886	+	promote uniformity of the law with respect to its subject matter among states that enact it. 665
	887	+	“§ 19- 1929. Relation to electronic signatures in global and national commerce act. 666
	888	+	“This chapter modifies, limits, or supersedes the Electronic Signatures in Global and 667
	889	+	National Commerce Act, approved June 30, 2000 (114 Stat. 464; 15 U.S.C. § 7001 et seq. ), but 668
	890	+	does not modify, limit, or supersede section 101(c) of that act (15 U.S.C. § 7001(c)), or authorize 669
	891	+	electronic delivery of any of the notices described in section 103(b) of that act (15 U.S.C. § 670
	892	+	7003(b)).”. 671
	893	+	Sec. 3. Fiscal impact statement. 672
	894	+	The Council adopts the fiscal impact statement in the committee report as the fiscal 673
	895	+	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 674
	896	+	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 675
	897	+	Sec. 4. Effective date. 676
	898	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 677
	899	+	Mayor, action by the Council to override the veto), a 30- day period of congressional review as 678
	900	+	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 679
	901	+	24, 1973 (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(1)). 680