1-1 By: Hartnett (Senate Sponsor - Wentworth) H.B. No. 2317
1-2 (In the Senate - Received from the House May 11, 1999;
1-3 May 12, 1999, read first time and referred to Committee on
1-4 Jurisprudence; May 14, 1999, reported favorably by the following
1-5 vote: Yeas 4, Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to venue in an action concerning a trust.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 115.002, Property Code, is amended to
1-11 read as follows:
1-12 Sec. 115.002. VENUE. (a) The venue of an action under
1-13 Section 115.001 of this Act is determined according to this
1-14 section.
1-15 (b) If there is a single, noncorporate trustee, an action
1-16 shall be brought [venue is] in the county in which:
1-17 (1) the trustee resides or has resided at any time
1-18 during the four-year period preceding the date the action is filed;
1-19 or
1-20 (2) 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 [the trustee's
1-23 residence is located].
1-24 (c) If there are multiple trustees or a corporate [any]
1-25 trustee, an action shall be brought [is a corporation, venue is] in
1-26 the county in which the situs of administration of the trust is
1-27 maintained or has been maintained at any time during the four-year
1-28 period preceding the date the action is filed, provided that an
1-29 action against a corporate trustee as defendant may be brought in
1-30 the county in which the corporate trustee maintains its principal
1-31 office in this state [corporation's principal office is located,
1-32 or, if two or more corporations are trustees of the trust, venue is
1-33 in the county in which the principal office of any of the
1-34 corporations is located].
1-35 (d) For just and reasonable cause, including the location of
1-36 the records and the convenience of the parties and witnesses, the
1-37 court may transfer an action from a county of proper venue under
1-38 this section to another county of proper venue:
1-39 (1) on motion of a defendant or joined party, filed
1-40 concurrently with or before the filing of the answer or other
1-41 initial responsive pleading, and served in accordance with law; or
1-42 (2) on motion of an intervening party, filed not later
1-43 than the 20th day after the court signs the order allowing the
1-44 intervention, and served in accordance with law.
1-45 (e) Notwithstanding any other provision of this section, on
1-46 agreement by all parties the court may transfer an action from a
1-47 county of proper venue under this section to any other county.
1-48 (f) For the purposes of this section:
1-49 (1) "Corporate trustee" means an entity organized as a
1-50 financial institution or a corporation with the authority to act in
1-51 a fiduciary capacity.
1-52 (2) "Principal office" means an office of a corporate
1-53 trustee in this state where the decision makers for the corporate
1-54 trustee within this state conduct the daily affairs of the
1-55 corporate trustee. The mere presence of an agent or representative
1-56 of the corporate trustee does not establish a principal office.
1-57 The principal office of the corporate trustee may also be but is
1-58 not necessarily the same as the situs of administration of the
1-59 trust.
1-60 (3) "Situs of administration" means the location in
1-61 this state where the trustee maintains the office that is primarily
1-62 responsible for dealing with the settlor and beneficiaries of the
1-63 trust. The situs of administration may also be but is not
1-64 necessarily the same as the principal office of a corporate
2-1 trustee. [If there are two or more trustees, none of which is a
2-2 corporation, venue is in the county in which the principal office
2-3 of the trust is maintained.]
2-4 SECTION 2. This Act takes effect September 1, 1999.
2-5 SECTION 3. The importance of this legislation and the
2-6 crowded condition of the calendars in both houses create an
2-7 emergency and an imperative public necessity that the
2-8 constitutional rule requiring bills to be read on three several
2-9 days in each house be suspended, and this rule is hereby suspended.
2-10 * * * * *