Public trusts; providing for division of assets upon withdrawal. Effective date.

SB 1603 allows local governments (like cities or counties) that are beneficiaries of multi-jurisdictional public trusts to withdraw from those trusts. Upon withdrawal, they are entitled to a fair share of the trust’s assets based on their proportional contribution, participation, and interest in the trust. If the beneficiaries or trustees cannot agree on the division, a district court will determine the distribution using equitable principles. The bill applies to all such trusts created before, on, or after its effective date (November 1, 2026), without affecting third-party creditor rights.