By Averitt H.B. No. 3276
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the Texas Non-Profit Corporation Act
1-3 to charitable trustees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 1396-2.31, Texas Non-Profit Corporation
1-6 Act is amended by designating the existing language as Section A
1-7 and by inserting a new Section B to read as follows:
1-8 B. Any corporation (or person or entity assisting such
1-9 corporation) described in this article shall have immunity from
1-10 suit (including both a defense to liability and the right not to
1-11 bear the cost, burden, and risk of discovery and trial) as to any
1-12 claim alleging that the corporation's role as trustee of a trust
1-13 described in this article constitutes engaging in the trust
1-14 business in a manner requiring a state charter in this state. An
1-15 interlocutory appeal may be taken if a court denies or otherwise
1-16 fails to grant a motion for summary judgment that is based on an
1-17 assertion of the immunity provided in this subsection.
1-18 SECTION 2. (a) Article 1396-2.31, Texas Non-Profit
1-19 Corporation Act, as that section exists on the effective date of
1-20 this Act, applies to any trust created before, on, or after the
1-21 effective date of this Act, including any trust that is the subject
1-22 of litigation or another proceeding that is pending before, on, or
1-23 after the effective date of this Act.
1-24 (b) This section applies without regard to the effective
2-1 date of the legislation enacting Article 1396-2.31, Texas
2-2 Non-Profit Corporation Act or any other legislation enacted by any
2-3 legislature that amended the provisions of Article 1396-2.31, Texas
2-4 Non-Profit Corporation Act.
2-5 SECTION 3. This Act applies to any trust created before, on,
2-6 or after the effective date of this Act, including any trust that
2-7 is the subject of litigation or another proceeding that is pending
2-8 before, on, or after the effective date of this Act.
2-9 SECTION 4. The importance of this legislation and the
2-10 crowded condition of the calendars in both houses create an
2-11 emergency and an imperative public necessity that the
2-12 constitutional rule requiring bills to be read on three several
2-13 days in each house be suspended, and this rule is hereby suspended,
2-14 and that this Act take effect and be in force from and after its
2-15 passage, and it is so enacted.