Texas 2021 - 87th Regular

Texas House Bill HB654 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 654
	1	+	By: Lucio III, et al. (Senate Sponsor - Johnson) H.B. No. 654
	2	+	(In the Senate - Received from the House April 6, 2021;
	3	+	April 8, 2021, read first time and referred to Committee on
	4	+	Jurisprudence; April 23, 2021, reported favorably by the following
	5	+	vote: Yeas 3, Nays 2; April 23, 2021, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the rule against perpetuities.
6	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	13		SECTION 1. Section 112.036, Property Code, is amended to
8	14		read as follows:
9	15		Sec. 112.036. RULE AGAINST PERPETUITIES. (a) The rule
10	16		against perpetuities applies to an interest in a trust [trusts]
11	17		other than a charitable trust [trusts].
12	18		(b) For purposes of this section, the effective date of a
13	19		trust is the date the trust becomes irrevocable.
14	20		(c) An interest in a trust must vest, if at all:
15	21		(1) not later than 300 years after the effective date
16	22		of the trust, if the effective date of the trust is on or after
17	23		September 1, 2021; or
18	24		(2) except as provided by Subsection (d),
19	25		[Accordingly, an interest is not good unless it must vest, if at
20	26		all,] not later than 21 years after some life in being at the time of
21	27		the creation of the interest, plus a period of gestation, if the
22	28		effective date of the trust is before September 1, 2021.
23	29		(d) An interest in a trust that has an effective date before
24	30		September 1, 2021, may vest as described by Subsection (c)(1) if the
25	31		trust instrument provides that an interest in the trust vests under
26	32		the provisions of this section applicable to trusts on the date that
27	33		the interest vests.
28	34		(e) Any interest in a trust may[, however,] be reformed or
29	35		construed to the extent and as provided by Section 5.043.
30		-	(f) Under this section, a settlor of a trust may not direct
31		-	that a real property asset be retained or refuse that a real
32		-	property asset may be sold for a period longer than 100 years.
33	36		SECTION 2. This Act takes effect September 1, 2021.
34		-	______________________________ ______________________________
35		-	President of the Senate Speaker of the House
36		-	I certify that H.B. No. 654 was passed by the House on April
37		-	1, 2021, by the following vote: Yeas 144, Nays 3, 1 present, not
38		-	voting; and that the House concurred in Senate amendments to H.B.
39		-	No. 654 on May 18, 2021, by the following vote: Yeas 135, Nays 8, 1
40		-	present, not voting.
41		-	______________________________
42		-	Chief Clerk of the House
43		-	I certify that H.B. No. 654 was passed by the Senate, with
44		-	amendments, on May 10, 2021, by the following vote: Yeas 19, Nays
45		-	9, 2 present, not voting.
46		-	______________________________
47		-	Secretary of the Senate
48		-	APPROVED: __________________
49		-	Date
50		-	__________________
51		-	Governor
	37	+	* * * * *