| 1 | 1 | | 81R10323 TJS-F |
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| 2 | 2 | | By: Ogden S.B. No. 2350 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the payment of cy pres funds in an action by the |
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| 8 | 8 | | attorney general. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Title 3, Civil Practice and Remedies Code, is |
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| 11 | 11 | | amended by adding Chapter 67 to read as follows: |
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| 12 | 12 | | CHAPTER 67. CY PRES FUNDS IN ACTION BY ATTORNEY GENERAL |
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| 13 | 13 | | Sec. 67.001. CY PRES FUNDS. (a) In an action brought by the |
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| 14 | 14 | | attorney general arising from conduct that is harmful to consumers |
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| 15 | 15 | | or to the public generally, the court may enter a judgment or order |
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| 16 | 16 | | for payment of cy pres funds. |
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| 17 | 17 | | (b) The attorney general shall retain funds that are |
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| 18 | 18 | | designated as cy pres funds under a court judgment or order and |
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| 19 | 19 | | shall deposit the funds in the cy pres account. |
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| 20 | 20 | | Sec. 67.002. CREATION OF CY PRES ACCOUNT. The cy pres |
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| 21 | 21 | | account is created as a dedicated account in the general revenue |
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| 22 | 22 | | fund in the state treasury. The account consists of cy pres funds |
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| 23 | 23 | | paid under a court judgment or order as provided by this chapter. |
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| 24 | 24 | | The attorney general shall administer the fund. |
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| 25 | 25 | | Sec. 67.003. USE OF CY PRES FUNDS. The attorney general may |
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| 26 | 26 | | distribute cy pres funds to nonprofit, charitable, or educational |
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| 27 | 27 | | entities to fund programs that provide assistance to consumers. |
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| 28 | 28 | | Sec. 67.004. COMMON LAW CY PRES. The provisions of this |
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| 29 | 29 | | chapter do not diminish the common law authority or other statutory |
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| 30 | 30 | | authority of the attorney general to seek and obtain cy pres |
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| 31 | 31 | | distribution from a court. |
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| 32 | 32 | | SECTION 2. This Act takes effect immediately if it receives |
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| 33 | 33 | | a vote of two-thirds of all the members elected to each house, as |
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| 34 | 34 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 35 | 35 | | Act does not receive the vote necessary for immediate effect, this |
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| 36 | 36 | | Act takes effect September 1, 2009. |
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