BILL ANALYSIS



S.B. 1212
By: Ellis (Coleman)
05-10-95
Committee Report (Unamended)


BACKGROUND

There are several ambiguous and conflicting provisions in the
statutes dealing with the authority of the attorney general in
charitable trust matters. In 1987, amendments to the property Code
changed the Attorney General's status from a "necessary" party in
proceedings involving charitable trusts, to a "proper" party, by
adding Chapter 123.  However, Chapter 115, which references prior
law (Article 4412a), was not changed to reflect the 1987
amendments.  Because of these ambiguities, the Attorney General has
been issued numerous citations which unnecessarily join the
Attorney General as a party in actions in which the Charitable
Trusts Section deems intervention unwarranted.

PURPOSE

S.B. 1212 sets forth requirements for the venue, notice, and
participation of the attorney general in proceedings involving
charitable trusts.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

     SECTION 1.  Amends Section 115.011(c), Property Code, so that
it conforms with changes made in Chapter 123 which indicated that
the attorney general must only receive notice of proceedings
involving charitable trust and need not be made a party to such
proceedings.

     SECTION 2.  Amends Section 123.001(4) of the Property Code by
adding a definition of "fiduciary or managerial agent" to encompass
the broad range of people and entities that act as trustees of
charitable trusts.  The statute clearly anticipates that the
attorney general may sue members of a board of directors as
"trustees of a charitable trust" since the definition of
"charitable trust" includes a corporation.  This new definition
clarifies the issue.

     SECTION 3.  Amends Section 123.003(a),(b), and (c), Property
Code, to clarify language relating to notice.  It sets out notice
requirements, establishes a time frame, and addresses the question
of notice to the attorney general when pleadings are amended to add
causes of action or to add new parties. Subsection (c) redesignates
existing Subsection (b).

     SECTION 4. Amends Section 123.005(a) and (b), Property Code,
to clarify the issue of whether the venue provision is permissive
or mandatory.  Allows the attorney general to recover costs from a
fiduciary of managerial agent of a charitable trust in a proceeding
against the fiduciary or managerial agent if the attorney general
is successful.

     SECTION 5.  This bill applies only to causes of action that
accrue on or after its effective date.

     SECTION 6.  Establishes the effective date of this bill as
September 1, 1995.

     SECTION 7.  Severability clause.

     SECTION 8.  Emergency clause.

SUMMARY OF COMMITTEE ACTION

S.B. 1212 was considered by the committee in a formal meeting on
May 10, 1995.  S.B. 1212 was reported favorably, without amendment
with the recommendation that it do pass and be printed and be sent
to the Committee on Local and Consent Calendars, by a record vote
of  7 (seven) ayes, 0 (zero) nays, 0 (zero) present-not-voting, and
2 (two) absent.