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A BILL TO BE ENTITLED
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AN ACT
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relating to attorney general participation in proceedings |
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involving charitable trusts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 123.005, Property Code, is amended to |
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read as follows: |
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Sec. 123.005. BREACH OF FIDUCIARY DUTY: VENUE. [(a)] Venue |
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in a proceeding brought by the attorney general alleging breach of a |
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fiduciary duty by a charitable entity or a fiduciary or managerial |
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agent of a charitable trust shall be a court of competent |
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jurisdiction in Travis County or in the county where the defendant |
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resides or has its principal office. |
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[(b)
The attorney general, if successful in the proceeding,
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is entitled to recover from a fiduciary or managerial agent of a
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charitable trust actual costs incurred in bringing the suit and may
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recover reasonable attorney's fees.] |
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SECTION 2. Chapter 123, Property Code, is amended by adding |
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Section 123.006 to read as follows: |
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Sec. 123.006. ATTORNEY'S FEES. (a) In a proceeding subject |
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to Section 123.005, the attorney general, if successful in the |
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proceeding, is entitled to recover from the charitable entity or |
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fiduciary or managerial agent of the charitable trust actual costs |
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incurred in bringing the suit and may recover reasonable attorney's |
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fees. |
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(b) In a proceeding in which the attorney general intervenes |
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under this chapter, other than a proceeding subject to Section |
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123.005, a court may award the attorney general court costs and |
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reasonable and necessary attorney's fees as may seem equitable and |
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just. |
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SECTION 3. The change in law made by this Act applies only |
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to a proceeding commenced on or after the effective date of this |
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Act. A proceeding commenced before the effective date of this Act |
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is governed by the law in effect immediately before that date, and |
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that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |