Texas House Bill HB2416

Texas 2009 - 81st Regular

• Out of House Committee: 4/3/09

Caption

Relating to attorney general participation in proceedings involving charitable trusts.

Impact

If enacted, HB2416 will amend Section 123 of the Texas Property Code, which concerns fiduciary duties related to charitable trusts. One of the significant changes includes establishing the venue for legal proceedings in Travis County or in the county where the defendant resides. In terms of financial implications, the bill allows the attorney general to recover reasonable fees and costs from charitable entities if they are successful in their claims. This reinforces the law's intent to protect charitable assets and assure they are managed in the public's best interest.

Summary

House Bill 2416 addresses the involvement of the Texas attorney general in legal proceedings related to charitable trusts. It primarily aims to amend current laws to clarify the role of the attorney general when alleging breaches of fiduciary duties by charitable organizations or individuals associated with them. The bill includes provisions for the recovery of costs and attorney's fees when the attorney general proceeds with a successful claim against a charitable entity or its agents. The proposed changes indicate a push towards enhancing oversight over charitable trusts and ensuring they operate with fiduciary integrity.

Contention

While specific points of contention are not directly documented in the materials reviewed, amendments and changes to laws involving charitable organizations often attract scrutiny. Critics may raise concerns about the potential for increased litigation against charitable entities, especially regarding how effectively the attorney general can handle these proceedings without burdening smaller organizations. Additionally, questions surrounding who will ultimately bear the costs related to these legal actions could prompt debate among lawmakers and advocacy groups interested in charity regulation.

Notable_points

The bill facilitates a clearer structure for legal recourse against alleged breaches of fiduciary duties in charitable trusts, potentially leading to a more consistent application of the law across similar cases. The effective date of the changes proposed in this act is set for September 1, 2009, which suggests an aim for prompt implementation. Overall, HB2416 emphasizes the necessity for accountability within charitable organizations, which can be critical in boosting public confidence in how such entities manage funds and contribute to social causes.