| 1 | 1 | | 83R27217 AJA-F |
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| 2 | 2 | | By: Duncan, et al. S.B. No. 1240 |
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| 3 | 3 | | (Keffer) |
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| 4 | 4 | | Substitute the following for S.B. No. 1240: No. |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the partition of mineral interests of a charitable |
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| 10 | 10 | | trust. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subtitle C, Title 9, Property Code, is amended by |
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| 13 | 13 | | adding Chapter 124 to read as follows: |
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| 14 | 14 | | CHAPTER 124. PARTITION OF MINERAL INTERESTS OF CHARITABLE TRUST |
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| 15 | 15 | | Sec. 124.001. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Charitable entity" means a corporation, trust, |
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| 17 | 17 | | community chest, fund, foundation, or other entity organized for |
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| 18 | 18 | | scientific, educational, philanthropic, or environmental purposes, |
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| 19 | 19 | | social welfare, the arts and humanities, or another civic or public |
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| 20 | 20 | | purpose described by Section 501(c)(3), Internal Revenue Code of |
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| 21 | 21 | | 1986. |
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| 22 | 22 | | (2) "Charitable trust" means a charitable entity, a |
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| 23 | 23 | | trust the stated purpose of which is to benefit a charitable entity, |
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| 24 | 24 | | or an inter vivos or testamentary gift to a charitable entity. |
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| 25 | 25 | | (3) "Mineral interest" means an interest in oil, gas, |
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| 26 | 26 | | or other mineral substance in place or that otherwise constitutes |
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| 27 | 27 | | real property without regard to the depth at which such mineral |
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| 28 | 28 | | substance is found. |
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| 29 | 29 | | Sec. 124.002. COMPULSORY DIVESTMENT PROHIBITED. In a suit |
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| 30 | 30 | | or other judicial proceeding the object or effect of which is to |
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| 31 | 31 | | compel the partition of a mineral interest owned or claimed by a |
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| 32 | 32 | | charitable trust, a sale or other action that would divest the |
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| 33 | 33 | | charitable trust of the trust's ownership of a mineral interest may |
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| 34 | 34 | | not be ordered unless the trust has refused to execute a mineral |
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| 35 | 35 | | lease, the terms of which are fair and reasonable, to the plaintiff |
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| 36 | 36 | | or petitioner in the proceeding. |
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| 37 | 37 | | SECTION 2. The change in law made by this Act applies only |
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| 38 | 38 | | to a proceeding commenced on or after the effective date of this |
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| 39 | 39 | | Act. |
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| 40 | 40 | | SECTION 3. This Act takes effect immediately if it receives |
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| 41 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 42 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 43 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 44 | 44 | | Act takes effect September 1, 2013. |
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