HBA-JLV H.J.R. 9 77(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 9 By: Averitt Financial Institutions 3/2/2001 Introduced BACKGROUND AND PURPOSE Currently, perpetual trusts are prohibited by the Texas Constitution and the Property Code. The Rule Against Perpetuities (RAP) provides that a trust must end twenty-one years after the death of the last "measuring life," or family members who are alive at the time the trust is created. Since a Texas resident cannot create a perpetual trust in Texas, that resident can create a perpetual trust by moving their capital to a trust fund created in another state that allows perpetual trusts. By revising the RAP provision, Texas may be encouraged to leave trust assets in the state, which may prevent an erosion of the intangible personal property tax base. As proposed, House Joint Resolution 9 requires the submission to the voters of a constitutional amendment removing the prohibition against perpetual trusts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Joint Resolution 9 amends the Texas Constitution to remove the prohibition against perpetual trusts. FOR ELECTION This proposed constitutional amendment shall be submitted to the voters at an election to be held November 6, 2001.