BILL ANALYSIS |
C.S.S.B. 1240 |
By: Duncan |
Energy Resources |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties note that many charitable organizations, such as colleges, universities, hospitals, and museums, have portfolios of mineral interests and that, while some of these interests may be large, most are very small. The parties note, however, that collectively the interests account for significant annual revenue used to further educational and charitable missions and that the loss of this income over time due to involuntary divestiture through forced partitioning would be devastating, particularly in a time when endowment earnings are down.
C.S.S.B. 1240 seeks to limit the practice of compulsory partition of a mineral interest owned or claimed by a charitable trust in order to provide charities with long-term certainty that they can rely on the assets in their endowment portfolios.
|
||||||||
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
|
||||||||
ANALYSIS
C.S.S.B. 1240 amends the Property Code to prohibit the ordering of an action in a judicial proceeding the object or effect of which is to compel the partition of a mineral interest owned or claimed by a charitable trust that would divest the trust of its ownership of a mineral interest unless the trust has refused to execute a mineral lease, with fair and reasonable terms, to the plaintiff or petitioner in the proceeding. The bill defines, among other terms, "mineral interest" as an interest in oil, gas, or other mineral substance in place or that otherwise constitutes real property without regard to the depth at which such mineral substance is found.
|
||||||||
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2013.
|
||||||||
COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.S.B. 1240 may differ from the engrossed version in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the engrossed and committee substitute versions of the bill.
|
||||||||
|