1-1                                   AN ACT
 1-2     relating to the consideration of a trust as property liable for the
 1-3     support of clients at mental health community centers or patients
 1-4     at state hospitals.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 534.0175(a), Health and Safety Code, is
 1-7     amended to read as follows:
 1-8           (a)  If a client is the beneficiary of a trust that has an
 1-9     aggregate principal of $250,000 [$50,000] or less, the corpus or
1-10     income of the trust is not considered to be the property of the
1-11     client or the client's estate and is not liable for the client's
1-12     support.  If the aggregate principal of the trust exceeds $250,000
1-13     [$50,000], only the portion of the corpus of the trust that exceeds
1-14     that amount and the income attributable to that portion are
1-15     considered to be the property of the client or the client's estate
1-16     and are liable for the client's support.  
1-17           SECTION 2. Section 552.018(a), Health and Safety Code, is
1-18     amended to read as follows:
1-19           (a)  If a patient is the beneficiary of a trust that has an
1-20     aggregate principal of $250,000 [$50,000] or less, the corpus or
1-21     income of the trust is not considered to be the property of the
1-22     patient or the patient's estate and is not liable for the patient's
1-23     support.  If the aggregate principal of the trust exceeds $250,000
1-24     [$50,000], only the portion of the corpus of the trust that exceeds
 2-1     that amount and the income attributable to that portion are
 2-2     considered to be the property of the patient or the patient's
 2-3     estate and are liable for the patient's support.
 2-4           SECTION 3.  This Act takes effect immediately if it receives
 2-5     a vote of two-thirds of all the members elected to each house, as
 2-6     provided by Section 39, Article III, Texas Constitution.  If this
 2-7     Act does not receive the vote necessary for immediate effect, this
 2-8     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1316 was passed by the House on May
         5, 2001, by the following vote:  Yeas 137, Nays 3, 2 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1316 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 25, Nays 5, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor