81R1855 AJA-D
 
  By: Leibowitz H.B. No. 2416
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to attorney general participation in proceedings
  involving charitable trusts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 123.005, Property Code, is amended to
  read as follows:
         Sec. 123.005.  BREACH OF FIDUCIARY DUTY: VENUE. [(a)] Venue
  in a proceeding brought by the attorney general alleging breach of a
  fiduciary duty by a charitable entity or a fiduciary or managerial
  agent of a charitable trust shall be a court of competent
  jurisdiction in Travis County or in the county where the defendant
  resides or has its principal office.
         [(b)     The attorney general, if successful in the proceeding,
  is entitled to recover from a fiduciary or managerial agent of a
  charitable trust actual costs incurred in bringing the suit and may
  recover reasonable attorney's fees.]
         SECTION 2.  Chapter 123, Property Code, is amended by adding
  Section 123.006 to read as follows:
         Sec. 123.006.  ATTORNEY'S FEES. (a) In a proceeding subject
  to Section 123.005, the attorney general, if successful in the
  proceeding, is entitled to recover from the charitable entity or
  fiduciary or managerial agent of the charitable trust actual costs
  incurred in bringing the suit and may recover reasonable attorney's
  fees.
         (b)  In a proceeding in which the attorney general intervenes
  under this chapter, other than a proceeding subject to Section
  123.005, a court may award the attorney general court costs and
  reasonable and necessary attorney's fees as may seem equitable and
  just.
         SECTION 3.  The change in law made by this Act applies only
  to a proceeding commenced on or after the effective date of this
  Act. A proceeding commenced before the effective date of this Act
  is governed by the law in effect immediately before that date, and
  that law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2009.