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                                  * * * * *