By Montford S.B. No. 1250 74R6919 DWS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to authority of a charitable nonprofit corporation to 1-3 serve as a trustee. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. The Texas Non-Profit Corporation Act (Article 1-6 1396-1.01 et seq., Vernon's Texas Civil Statutes) is amended by 1-7 adding Article 2.31 to read as follows: 1-8 Art. 2.31. POWER TO SERVE AS TRUSTEE. A corporation that is 1-9 described by Section 170(c) or 501(c)(3), Internal Revenue Code of 1-10 1986, or a corresponding provision of a subsequent federal tax law, 1-11 may serve as a trustee of a trust that benefits: 1-12 (1) the corporation; or 1-13 (2) another organization that is described by one of 1-14 those sections of the Internal Revenue Code of 1986. 1-15 SECTION 2. Article 13, Chapter XI, The Texas Banking Code 1-16 (Article 342-1113, Vernon's Texas Civil Statutes), is amended to 1-17 read as follows: 1-18 Art. 13. EXEMPTIONS. The provisions of this chapter shall 1-19 not affect or apply to: 1-20 (1) any state or federal credit union doing business 1-21 in this state provided that such credit union is otherwise 1-22 authorized to exercise trust powers; 1-23 (2) a corporation serving as a trustee as permitted by 1-24 Article 2.31, Texas Non-Profit Corporation Act (Article 1396-2.31, 2-1 Vernon's Texas Civil Statutes); or 2-2 (3) an institution of higher education acting as 2-3 trustee if authorized by the Education Code. 2-4 SECTION 3. This Act takes effect September 1, 1995. 2-5 SECTION 4. The amendments made by this Act are clarification 2-6 of the law existing before the effective date of this Act. An act 2-7 of a nonprofit corporation serving as trustee before the effective 2-8 date of this Act is valid if consistent with law as amended by this 2-9 Act. 2-10 SECTION 5. The importance of this legislation and the 2-11 crowded condition of the calendars in both houses create an 2-12 emergency and an imperative public necessity that the 2-13 constitutional rule requiring bills to be read on three several 2-14 days in each house be suspended, and this rule is hereby suspended.