| 1 | 1 | | S.B. No. 918 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to attorney general participation in proceedings |
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| 6 | 6 | | involving charitable trusts. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 123.005, Property Code, is amended to |
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| 9 | 9 | | read as follows: |
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| 10 | 10 | | Sec. 123.005. BREACH OF FIDUCIARY DUTY: VENUE. |
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| 11 | 11 | | [(a)] Venue in a proceeding brought by the attorney general |
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| 12 | 12 | | alleging breach of a fiduciary duty by a charitable entity or a |
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| 13 | 13 | | fiduciary or managerial agent of a charitable trust shall be a court |
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| 14 | 14 | | of competent jurisdiction in Travis County or in the county where |
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| 15 | 15 | | the defendant resides or has its principal office. |
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| 16 | 16 | | [(b) The attorney general, if successful in the proceeding, |
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| 17 | 17 | | is entitled to recover from a fiduciary or managerial agent of a |
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| 18 | 18 | | charitable trust actual costs incurred in bringing the suit and may |
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| 19 | 19 | | recover reasonable attorney's fees.] |
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| 20 | 20 | | SECTION 2. Chapter 123, Property Code, is amended by adding |
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| 21 | 21 | | Section 123.006 to read as follows: |
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| 22 | 22 | | Sec. 123.006. ATTORNEY'S FEES. (a) In a proceeding |
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| 23 | 23 | | subject to Section 123.005, the attorney general, if successful in |
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| 24 | 24 | | the proceeding, is entitled to recover from the charitable entity |
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| 25 | 25 | | or fiduciary or managerial agent of the charitable trust actual |
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| 26 | 26 | | costs incurred in bringing the suit and may recover reasonable |
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| 27 | 27 | | attorney's fees. |
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| 28 | 28 | | (b) In a proceeding in which the attorney general intervenes |
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| 29 | 29 | | under this chapter, other than a proceeding subject to Section |
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| 30 | 30 | | 123.005, a court may award the attorney general court costs and |
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| 31 | 31 | | reasonable and necessary attorney's fees as may seem equitable and |
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| 32 | 32 | | just. |
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| 33 | 33 | | SECTION 3. The change in law made by this Act applies only |
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| 34 | 34 | | to a proceeding commenced on or after the effective date of this |
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| 35 | 35 | | Act. A proceeding commenced before the effective date of this Act |
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| 36 | 36 | | is governed by the law in effect immediately before that date, and |
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| 37 | 37 | | that law is continued in effect for that purpose. |
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| 38 | 38 | | SECTION 4. This Act takes effect September 1, 2009. |
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| 39 | 39 | | ______________________________ ______________________________ |
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| 40 | 40 | | President of the Senate Speaker of the House |
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| 41 | 41 | | I hereby certify that S.B. No. 918 passed the Senate on |
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| 42 | 42 | | April 16, 2009, by the following vote: Yeas 31, Nays 0. |
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| 43 | 43 | | ______________________________ |
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| 44 | 44 | | Secretary of the Senate |
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| 45 | 45 | | I hereby certify that S.B. No. 918 passed the House on |
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| 46 | 46 | | May 12, 2009, by the following vote: Yeas 149, Nays 0, one |
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| 47 | 47 | | present not voting. |
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| 48 | 48 | | ______________________________ |
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| 49 | 49 | | Chief Clerk of the House |
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| 50 | 50 | | Approved: |
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| 51 | 51 | | ______________________________ |
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| 52 | 52 | | Date |
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| 53 | 53 | | ______________________________ |
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| 54 | 54 | | Governor |
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