1-1     By:  Ellis                                            S.B. No. 1554
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Jurisprudence;
 1-4     March 23, 1999, reported favorably by the following vote:  Yeas 4,
 1-5     Nays 0; March 23, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to fees and expenses incurred in the administration or
 1-9     settlement of a decedent's estate.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subsection (a), Section 378B, Texas Probate Code,
1-12     is amended to read as follows:
1-13           (a)  Except as provided by Subsection (b) of this section and
1-14     unless the will provides otherwise, all expenses incurred in
1-15     connection with the settlement of a decedent's estate, other than
1-16     interest due on estate taxes, shall be charged against the
1-17     principal of the estate, including debts, funeral expenses, estate
1-18     taxes, [interest and] penalties relating to estate taxes, and
1-19     family allowances[, shall be charged against the principal of the
1-20     estate].  Interest due on estate taxes and fees [Fees] and expenses
1-21     of an attorney, accountant, or other professional advisor,
1-22     commissions and expenses of a personal representative, court costs,
1-23     and all other similar fees or expenses relating to the
1-24     administration of the estate shall be allocated between the income
1-25     and principal of the estate as the executor determines in its
1-26     discretion to be just and equitable.
1-27           SECTION 2.  The changes in law made by this Act to Subsection
1-28     (a), Section 378B, Texas Probate Code, apply only to the accrual on
1-29     or after the effective date of this Act of interest due on estate
1-30     taxes.  The accrual before the effective date of this Act of
1-31     interest due on estate taxes is  governed by the law in effect when
1-32     the interest accrued, and the former law is continued in effect for
1-33     that purpose.
1-34           SECTION 3.  This Act takes effect September 1, 1999.
1-35           SECTION 4.  The importance of this legislation and the
1-36     crowded condition of the calendars in both houses create an
1-37     emergency and an imperative public necessity that the
1-38     constitutional rule requiring bills to be read on three several
1-39     days in each house be suspended, and this rule is hereby suspended.
1-40                                  * * * * *