By Goodman                                       H.B. No. 849

      75R2830 CAS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the protection or release of a trustee from liability

 1-3     under certain circumstances.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 114.001, Property Code, is amended by

 1-6     adding Subsection (e) to read as follows:

 1-7           (e)  The trustee has the same protection from liability

 1-8     provided for a fiduciary under 42 U.S.C. Section 9607(n).

 1-9           SECTION 2.  Section 114.005, Property Code, is amended to

1-10     read as follows:

1-11           Sec. 114.005.  RELEASE OF LIABILITY BY BENEFICIARY.  (a)  A

1-12     beneficiary who has full legal capacity and is acting on full

1-13     information may relieve a trustee from any duty, responsibility,

1-14     restriction, or liability as to the beneficiary that would

1-15     otherwise be imposed on the trustee by this subtitle, including

1-16     liability for past violations, except as to the duties,

1-17     restrictions, and liabilities imposed on corporate trustees by

1-18     Section 113.052 or 113.053 of this subtitle.

1-19           (b)  A beneficiary who has full legal capacity may release a

1-20     trustee from responsibility for an investment made or recommended

1-21     by an agent retained by the trustee for that purpose.  The release

1-22     may provide that the beneficiary is acting for that beneficiary and

1-23     as a representative for an unborn or unascertained beneficiary.

1-24     The release is binding on the unborn or unascertained beneficiary

 2-1     to the extent that the unborn or unascertained beneficiary's

 2-2     interest in the trust is substantially identical to the interest of

 2-3     the beneficiary signing the release.  The release  is effective

 2-4     only as to the releasing beneficiary's pro rata share of the trust

 2-5     estate.

 2-6           (c)  A [The] release under this section must be in writing

 2-7     and delivered to the trustee.

 2-8           SECTION 3.  This Act takes effect September 1, 1997.

 2-9           SECTION 4.  The importance of this legislation and the

2-10     crowded condition of the calendars in both houses create an

2-11     emergency and an imperative public necessity that the

2-12     constitutional rule requiring bills to be read on three several

2-13     days in each house be suspended, and this rule is hereby suspended.