H.B. No. 654
 
 
 
 
AN ACT
  relating to the rule against perpetuities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 112.036, Property Code, is amended to
  read as follows:
         Sec. 112.036.  RULE AGAINST PERPETUITIES. (a) The rule
  against perpetuities applies to an interest in a trust [trusts]
  other than a charitable trust [trusts].
         (b)  For purposes of this section, the effective date of a
  trust is the date the trust becomes irrevocable.
         (c)  An interest in a trust must vest, if at all:
               (1)  not later than 300 years after the effective date
  of the trust, if the effective date of the trust is on or after
  September 1, 2021; or
               (2)  except as provided by Subsection (d),
  [Accordingly, an interest is not good unless it must vest, if at
  all,] not later than 21 years after some life in being at the time of
  the creation of the interest, plus a period of gestation, if the
  effective date of the trust is before September 1, 2021.
         (d)  An interest in a trust that has an effective date before
  September 1, 2021, may vest as described by Subsection (c)(1) if the
  trust instrument provides that an interest in the trust vests under
  the provisions of this section applicable to trusts on the date that
  the interest vests.
         (e)  Any interest in a trust may[, however,] be reformed or
  construed to the extent and as provided by Section 5.043.
         (f)  Under this section, a settlor of a trust may not direct
  that a real property asset be retained or refuse that a real
  property asset may be sold for a period longer than 100 years.
         SECTION 2.  This Act takes effect September 1, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 654 was passed by the House on April
  1, 2021, by the following vote:  Yeas 144, Nays 3, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 654 on May 18, 2021, by the following vote:  Yeas 135, Nays 8, 1
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 654 was passed by the Senate, with
  amendments, on May 10, 2021, by the following vote:  Yeas 19, Nays
  9, 2 present, not voting.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor