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.