By Smith                                        H.B. No. 2039

      75R4951 CAS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain rights of a settlor concerning a charitable

 1-3     trust.

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

 1-5           SECTION 1.  Chapter 123, Property Code, is amended by adding

 1-6     Section 123.0011 to read as follows:

 1-7           Sec. 123.0011.  SETTLOR'S CONTINUING PARTICIPATION.  (a)

 1-8     Notwithstanding any other provision of this chapter or of other

 1-9     law, if a charitable entity that is the beneficiary of a charitable

1-10     trust ceases to exist during the life of the settlor, the settlor

1-11     is entitled to replace that charitable entity with a different

1-12     charitable entity as the beneficiary.

1-13           (b)  The charitable entity selected as the replacement

1-14     beneficiary of the charitable trust may have a civic or public

1-15     purpose different from that of the charitable entity that was

1-16     originally the beneficiary of the charitable trust.

1-17           SECTION 2.  The importance of this legislation and the

1-18     crowded condition of the calendars in both houses create an

1-19     emergency and an imperative public necessity that the

1-20     constitutional rule requiring bills to be read on three several

1-21     days in each house be suspended, and this rule is hereby suspended,

1-22     and that this Act take effect and be in force from and after its

1-23     passage, and it is so enacted.