S.B. No. 918
AN ACT
relating to attorney general participation in proceedings
involving charitable trusts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 123.005, Property Code, is amended to
read as follows:
Sec. 123.005. BREACH OF FIDUCIARY DUTY: VENUE.
[(a)] Venue in a proceeding brought by the attorney general
alleging breach of a fiduciary duty by a charitable entity or a
fiduciary or managerial agent of a charitable trust shall be a court
of competent jurisdiction in Travis County or in the county where
the defendant resides or has its principal office.
[(b) The attorney general, if successful in the proceeding,
is entitled to recover from a fiduciary or managerial agent of a
charitable trust actual costs incurred in bringing the suit and may
recover reasonable attorney's fees.]
SECTION 2. Chapter 123, Property Code, is amended by adding
Section 123.006 to read as follows:
Sec. 123.006. ATTORNEY'S FEES. (a) In a proceeding
subject to Section 123.005, the attorney general, if successful in
the proceeding, is entitled to recover from the charitable entity
or fiduciary or managerial agent of the charitable trust actual
costs incurred in bringing the suit and may recover reasonable
attorney's fees.
(b) In a proceeding in which the attorney general intervenes
under this chapter, other than a proceeding subject to Section
123.005, a court may award the attorney general court costs and
reasonable and necessary attorney's fees as may seem equitable and
just.
SECTION 3. The change in law made by this Act applies only
to a proceeding commenced on or after the effective date of this
Act. A proceeding commenced before the effective date of this Act
is governed by the law in effect immediately before that date, and
that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 918 passed the Senate on
April 16, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 918 passed the House on
May 12, 2009, by the following vote: Yeas 149, Nays 0, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor