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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of charitable trusts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 113, Property Code, is |
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amended by adding Section 113.029 to read as follows: |
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Sec. 113.029. RELOCATION OF ADMINISTRATION OF CHARITABLE |
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TRUST. (a) In this section: |
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(1) "Charitable entity" has the meaning assigned by |
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Section 123.001. |
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(2) "Charitable trust" means a trust: |
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(A) the stated purpose of which is to benefit |
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only one or more charitable entities; and |
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(B) that qualifies as a charitable entity. |
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(3) "Trust administration" means the grant-making |
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function of the trust. |
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(b) Except as provided by this section or specifically |
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authorized by the terms of a trust, the trustee of a charitable |
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trust may not change the location in which the trust administration |
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takes place from a location in this state to a location outside this |
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state. |
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(c) If the trustee decides to change the location in which |
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the trust is administered from a location in this state to a |
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location outside this state, the trustee shall: |
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(1) if the settlor is living and not incapacitated: |
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(A) consult the settlor concerning the selection |
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of a new location for the administration of the trust; and |
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(B) submit the selection to the attorney general; |
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or |
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(2) if the settlor is not living or is incapacitated: |
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(A) propose a new location; and |
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(B) submit the proposal to the attorney general. |
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(d) The trustee may file an action in the district court or |
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statutory probate court in which the trust was created seeking a |
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court order authorizing the trustee to change the location in which |
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the trust is administered to a location outside this state. The |
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court may exercise its equitable powers to effectuate the original |
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purpose of the trust. |
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(e) Except as provided by Subsection (b), the location in |
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which the administration of the trust takes place may not be changed |
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to a location outside this state unless: |
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(1) the charitable purposes of the trust would not be |
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impaired if the trust administration is moved; and |
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(2) a district court or statutory probate court |
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authorizes the relocation. |
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(f) The attorney general may bring an action to enforce the |
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provisions of this section. If a trustee of a charitable trust |
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fails to comply with the provisions of this section, the district |
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court or statutory probate court in the county in which the trust |
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administration was originally located may remove the trustee and |
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appoint a new trustee. Costs of a proceeding to remove a trustee, |
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including reasonable attorney's fees, may be assessed against the |
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removed trustee. This provision is in addition to and does not |
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supersede the provisions of Chapter 123. |
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(g) This section does not affect a trustee's authority to |
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sell real estate owned by a charitable trust. |
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SECTION 2. Except as otherwise provided by a will, the terms |
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of a trust, or this Act, the changes in law made by this Act apply |
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to: |
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(1) a trust existing or created on or after September |
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1, 2009; |
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(2) the estate of a decedent who dies before September |
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1, 2009, if the probate or administration of the estate is pending |
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on or after September 1, 2009; and |
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(3) the estate of a decedent who dies on or after |
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September 1, 2009. |
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SECTION 3. This Act takes effect September 1, 2009. |