By Hartnett H.B. No. 2317
76R8226 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to venue in an action concerning a trust.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 115.002, Property Code, is amended to
1-5 read as follows:
1-6 Sec. 115.002. VENUE. (a) The venue of an action under
1-7 Section 115.001 of this Act is determined according to this
1-8 section.
1-9 (b) If there is a single, noncorporate trustee, an action
1-10 shall be brought [venue is] in the county in which:
1-11 (1) the trustee resides or has resided at any time
1-12 during the four-year period preceding the date the action is filed;
1-13 or
1-14 (2) the situs of administration of the trust is
1-15 maintained or has been maintained at any time during the four-year
1-16 period preceding the date the action is filed [the trustee's
1-17 residence is located].
1-18 (c) If there are multiple trustees or a corporate [any]
1-19 trustee, an action shall be brought [is a corporation, venue is] in
1-20 the county in which the situs of administration of the trust is
1-21 maintained or has been maintained at any time during the four-year
1-22 period preceding the date the action is filed, provided that an
1-23 action against a corporate trustee as defendant may be brought in
1-24 the county in which the corporate trustee maintains its principal
2-1 office in this state [corporation's principal office is located,
2-2 or, if two or more corporations are trustees of the trust, venue is
2-3 in the county in which the principal office of any of the
2-4 corporations is located].
2-5 (d) For just and reasonable cause, including the location of
2-6 the records and the convenience of the parties and witnesses, the
2-7 court may transfer an action from a county of proper venue under
2-8 this section to another county of proper venue:
2-9 (1) on motion of a defendant or joined party, filed
2-10 concurrently with or before the filing of the answer or other
2-11 initial responsive pleading, and served in accordance with law; or
2-12 (2) on motion of an intervening party, filed not later
2-13 than the 20th day after the court signs the order allowing the
2-14 intervention, and served in accordance with law.
2-15 (e) Notwithstanding any other provision of this section, on
2-16 agreement by all parties the court may transfer an action from a
2-17 county of proper venue under this section to any other county.
2-18 (f) For the purposes of this section:
2-19 (1) "Corporate trustee" means an entity organized as a
2-20 financial institution or a corporation with the authority to act in
2-21 a fiduciary capacity.
2-22 (2) "Principal office" means an office of a corporate
2-23 trustee in this state where the decision makers for the corporate
2-24 trustee within this state conduct the daily affairs of the
2-25 corporate trustee. The mere presence of an agent or representative
2-26 of the corporate trustee does not establish a principal office.
2-27 The principal office of the corporate trustee may also be but is
3-1 not necessarily the same as the situs of administration of the
3-2 trust.
3-3 (3) "Situs of administration" means the location in
3-4 this state where the trustee maintains the office that is primarily
3-5 responsible for dealing with the settlor and beneficiaries of the
3-6 trust. The situs of administration may also be but is not
3-7 necessarily the same as the principal office of a corporate
3-8 trustee. [If there are two or more trustees, none of which is a
3-9 corporation, venue is in the county in which the principal office
3-10 of the trust is maintained.]
3-11 SECTION 2. This Act takes effect September 1, 1999.
3-12 SECTION 3. The importance of this legislation and the
3-13 crowded condition of the calendars in both houses create an
3-14 emergency and an imperative public necessity that the
3-15 constitutional rule requiring bills to be read on three several
3-16 days in each house be suspended, and this rule is hereby suspended.