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