AN ACT 1-1 relating to the administration and operation of certain trusts. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Section 112.035, Property Code, is amended by 1-4 adding Subsection (e) to read as follows: 1-5 (e) A beneficiary of the trust may not be considered a 1-6 settlor merely because of a lapse, waiver, or release of the 1-7 beneficiary's right to withdraw a part of the trust property if the 1-8 value of the property that could have been withdrawn by exercising 1-9 the right of withdrawal in any calendar year does not exceed at the 1-10 time of the lapse, waiver, or release the greater of the amount 1-11 specified in: 1-12 (1) Section 2041(b)(2) or 2514(e), Internal Revenue 1-13 Code of 1986; or 1-14 (2) Section 2503(b), Internal Revenue Code of 1986. 1-15 SECTION 2. This Act takes effect September 1, 1997. 1-16 SECTION 3. The importance of this legislation and the 1-17 crowded condition of the calendars in both houses create an 1-18 emergency and an imperative public necessity that the 1-19 constitutional rule requiring bills to be read on three several 1-20 days in each house be suspended, and this rule is hereby suspended. S.B. No. 998 _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 998 passed the Senate on April 3, 1997, by a viva-voce vote; and that the Senate concurred in House amendment on April 30, 1997, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 998 passed the House, with amendment, on April 25, 1997, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor