Texas 2009 - 81st Regular

Texas Senate Bill SB666 Compare Versions

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1	1	S.B. No. 666
2	2
3	3
4	4	AN ACT
5	5	relating to the administration of charitable trusts.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Subchapter A, Chapter 113, Property Code, is
8	8	amended by adding Section 113.029 to read as follows:
9	9	Sec. 113.029. RELOCATION OF ADMINISTRATION OF CHARITABLE
10	10	TRUST. (a) In this section:
11	11	(1) "Charitable entity" has the meaning assigned by
12	12	Section 123.001.
13	13	(2) "Charitable trust" means a trust:
14	14	(A) the stated purpose of which is to benefit
15	15	only one or more charitable entities; and
16	16	(B) that qualifies as a charitable entity.
17	17	(3) "Trust administration" means the grant-making
18	18	function of the trust.
19	19	(b) Except as provided by this section or specifically
20	20	authorized by the terms of a trust, the trustee of a charitable
21	21	trust may not change the location in which the trust administration
22	22	takes place from a location in this state to a location outside this
23	23	state.
24	24	(c) If the trustee decides to change the location in which
25	25	the trust is administered from a location in this state to a
26	26	location outside this state, the trustee shall:
27	27	(1) if the settlor is living and not incapacitated:
28	28	(A) consult the settlor concerning the selection
29	29	of a new location for the administration of the trust; and
30	30	(B) submit the selection to the attorney general;
31	31	or
32	32	(2) if the settlor is not living or is incapacitated:
33	33	(A) propose a new location; and
34	34	(B) submit the proposal to the attorney general.
35	35	(d) The trustee may file an action in the district court or
36	36	statutory probate court in which the trust was created seeking a
37	37	court order authorizing the trustee to change the location in which
38	38	the trust is administered to a location outside this state. The
39	39	court may exercise its equitable powers to effectuate the original
40	40	purpose of the trust.
41	41	(e) Except as provided by Subsection (b), the location in
42	42	which the administration of the trust takes place may not be changed
43	43	to a location outside this state unless:
44	44	(1) the charitable purposes of the trust would not be
45	45	impaired if the trust administration is moved; and
46	46	(2) a district court or statutory probate court
47	47	authorizes the relocation.
48	48	(f) The attorney general may bring an action to enforce the
49	49	provisions of this section. If a trustee of a charitable trust
50	50	fails to comply with the provisions of this section, the district
51	51	court or statutory probate court in the county in which the trust
52	52	administration was originally located may remove the trustee and
53	53	appoint a new trustee. Costs of a proceeding to remove a trustee,
54	54	including reasonable attorney's fees, may be assessed against the
55	55	removed trustee. This provision is in addition to and does not
56	56	supersede the provisions of Chapter 123.
57	57	(g) This section does not affect a trustee's authority to
58	58	sell real estate owned by a charitable trust.
59	59	SECTION 2. Except as otherwise provided by a will, the terms
60	60	of a trust, or this Act, the changes in law made by this Act apply
61	61	to:
62	62	(1) a trust existing or created on or after September
63	63	1, 2009;
64	64	(2) the estate of a decedent who dies before September
65	65	1, 2009, if the probate or administration of the estate is pending
66	66	on or after September 1, 2009; and
67	67	(3) the estate of a decedent who dies on or after
68	68	September 1, 2009.
69	69	SECTION 3. This Act takes effect September 1, 2009.
70	70	______________________________ ______________________________
71	71	President of the Senate Speaker of the House
72	72	I hereby certify that S.B. No. 666 passed the Senate on
73	73	May 15, 2009, by the following vote: Yeas 21, Nays 9; and that the
74	74	Senate concurred in House amendment on May 29, 2009, by the
75	75	following vote: Yeas 22, Nays 9.
76	76	______________________________
77	77	Secretary of the Senate
78	78	I hereby certify that S.B. No. 666 passed the House, with
79	79	amendment, on May 27, 2009, by the following vote: Yeas 143,
80	80	Nays 5, one present not voting.
81	81	______________________________
82	82	Chief Clerk of the House
83	83	Approved:
84	84	______________________________
85	85	Date
86	86	______________________________
87	87	Governor