HBA-ATS, TYH H.B. 3276 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3276
By: Averitt
Financial Institutions
6/21/1999
Enrolled



BACKGROUND AND PURPOSE 

In 1997, Congress passed federal legislation granting antitrust immunity
and a right of interlocutory appeal for matters dealing with charitable
gift annuities and charitable trusts.  Courts have found related Texas law
to be inconsistent with the federal legislation.  

H.B. 3276 sets forth that the Texas Non-Profit Corporation Act applies to
any Texas trust, including a trust involved in litigation, regardless of
the effective date of any legislation creating or amending the Texas
Non-Profit Corporation Act. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 1396-2.31, V.T.C.S., as follows:

A. Creates this section from existing text. 
   
B. Requires any corporation (or person or entity assisting such
corporation) described in this article to have immunity from suit
(including both a defense to liability and the right not to bear the cost,
burden, and risk of discovery and trial) as to any claim alleging that the
corporation's role as trustee of a trust described in this article
constitutes engaging in the trust business in a manner requiring a state
charter in this state.  Authorizes an interlocutory appeal to be taken if a
court denies or otherwise fails to grant a motion for summary judgment that
is based on an assertion of the immunity provided in this subsection.  

SECTION 2.  (a) Provides that Article 1396-2.31, V.T.C.S., as that section
exists on the effective date of this Act, applies to any trust created
before, on, or after the effective date of this Act, including any trust
that is the subject of litigation or another proceeding that is pending
before, on, or after the effective date of this Act.  
 
(b)  Provides that this section applies without regard to the effective
date of the legislation enacting Article 1396-2.31, V.T.C.S., or any other
legislation enacted by any legislature that amended the provisions of
Article 1396-2.31, V.T.C.S.  

SECTION 3.   Provides that this Act applies to any trust created before,
on, or after the effective date of this Act, including any trust that is
the subject of litigation or another proceeding that is pending before, on,
or after the effective date of this Act.  

SECTION 4.  Emergency clause.
  Effective date: upon passage.