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By:  Hartnett                                                     H.B. No. 3503

Substitute the following for H.B. No. 3503:                                   

By:  Smith of Tarrant                                         C.S.H.B. No. 3503



A BILL TO BE ENTITLED

AN ACT

relating to exculpatory clauses in trusts.                                    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 142.005, Property Code, is amended by 
adding Subsections (h), (i), and (j) to read as follows:
	(h)  A trust created under this section is subject to 
Subtitle B, Title 9.
	(i)  Notwithstanding Subsection (h), this section prevails 
over a provision in Subtitle B, Title 9, that is in conflict or 
inconsistent with this section.
	(j)  A provision in a trust created under this section that 
relieves a trustee from a duty, responsibility, or liability 
imposed by this section or Subtitle B, Title 9, is enforceable only 
if:
		(1)  the provision is limited to specific facts and 
circumstances unique to the property of that trust and is not 
applicable generally to the trust; and
		(2)  the court creating or modifying the trust makes a 
specific finding that there is clear and convincing evidence that 
the inclusion of the provision is in the best interests of the 
beneficiary of the trust.
	SECTION 2.  Section 868, Probate Code, is amended by adding 
Subsection (c) to read as follows:
	(c)  A provision in a trust created under Section 867 that 
relieves a trustee from a duty, responsibility, or liability 
imposed by this subpart or Subtitle B, Title 9, Property Code, is 
enforceable only if:
		(1)  the provision is limited to specific facts and 
circumstances unique to the property of that trust and is not 
applicable generally to the trust; and
		(2)  the court creating or modifying the trust makes a 
specific finding that there is clear and convincing evidence that 
the inclusion of the provision is in the best interests of the 
beneficiary of the trust.
	SECTION 3.  This Act takes effect September 1, 2003, and 
applies only to a trust existing on or created after that date.