Texas Senate Bill SB918

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/6/09
• Voted on by Senate: 4/16/09
• Out of House Committee: 5/7/09
• Voted on by House: 5/12/09
• Governor Action: 5/23/09
• Enrolled: 5/13/09
• Passed: 5/23/09

Caption

Relating to attorney general participation in proceedings involving charitable trusts.

Impact

The bill's implications emphasize the role of the attorney general in oversight and regulation of charitable trusts. By enabling the attorney general to recover actual costs and reasonable attorney's fees should they prevail in proceeding, the legislation seeks to bolster the enforcement of fiduciary duties among charitable entities. This provision is designed to deter potential breaches of duty and enhance accountability within charitable organizations—effectively protecting the interests of beneficiaries and the public at large.

Summary

Senate Bill 918 (SB918), introduced by Senator Harris, focuses on the participation of the attorney general in legal proceedings involving charitable trusts. The bill amends the Property Code, specifically Section 123.005, to establish the venue for cases brought by the attorney general alleging breaches of fiduciary duty by charitable entities or their agents. Under the proposed changes, the venue shall be either in Travis County or in the county where the defendant resides or has its principal office, aiming for more consistent and accessible legal proceedings in cases involving charities operating within the state.

Contention

While the bill may appear to streamline legal processes regarding charitable trusts, it could also provoke discussions around the autonomy of charitable entities and their governance. Some advocates for charitable organizations may express concerns about increased litigation and the potential burden placed on these entities to navigate legal frameworks more rigorously. The balance between regulatory oversight and operational independence for charities may be a point of contention as the bill progresses through legislative discussions.