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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 OR PROPERTY OF |
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CHARITABLE 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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(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 municipality or county in which: |
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(1) the trust is administered; or |
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(2) the trust property is situated. |
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(c) If the trustee determines that the municipality or |
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county in which the trust is administered or the trust property is |
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situated must be changed to prevent the charitable purposes of the |
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trust from being frustrated, 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 or the trust |
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property; and |
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(B) if the settlor approves a new location in |
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writing, submit the selection to the attorney general under |
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Subsection (d); 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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under Subsection (d). |
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(d) The trustee shall send notice to the attorney general of |
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a new location for the administration of the trust or the trust |
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property selected or proposed under Subsection (c). If the settlor |
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has not consented to the new location in writing and the attorney |
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general determines that the new location does not adequately serve |
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the charitable purposes of the trust, not later than the 21st day |
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after the date the attorney general receives notice of the |
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selection, the attorney general shall request in writing that a |
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district court or statutory probate court in the county in which the |
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trust was created review the selection. If the court agrees with |
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the attorney general's determination, the court shall select the |
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location for the administration of the trust or the trust property. |
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If the court finds that the attorney general's request for review is |
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unreasonable, the administration of the trust or the trust property |
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may be relocated as proposed by the trustee, and the court may |
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require the attorney general to pay all court costs of the parties |
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involved. |
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(e) If the trustee and the settlor cannot agree on a |
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selection of a new location under Subsection (c), the trustee shall |
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send notice of that fact to the attorney general not later than the |
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21st day after the date the trustee determines that an agreement |
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cannot be reached. The attorney general shall refer the matter to a |
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district court or statutory probate court in the county in which the |
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trust was created. The trustee and the settlor may each recommend |
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to the court a replacement location, and the court shall select the |
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replacement location. |
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(f) The administration of the trust or the trust property |
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may not be relocated to another state under this section unless: |
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(1) the settlor consents to the relocation in writing |
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under Subsection (c); or |
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(2) the charitable purposes of the trust cannot be |
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adequately fulfilled unless the administration of the trust or the |
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trust property is moved to another state and: |
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(A) the attorney general consents to the |
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relocation; or |
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(B) a district court or statutory probate court |
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authorizes the relocation. |
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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. The proceeds of real |
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estate sold by a charitable trust must be situated at the same |
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location as other money owned by the 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 January 1, |
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2010; |
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(2) the estate of a decedent who dies before January 1, |
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2010, if the probate or administration of the estate is pending on |
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or after January 1, 2010; and |
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(3) the estate of a decedent who dies on or after |
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January 1, 2010. |
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SECTION 3. This Act takes effect January 1, 2010. |
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