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


Office of House Bill AnalysisH.B. 3276
By: Averitt
Financial Institutions
3/26/1999
Introduced



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 clarifies that the Texas Non-Profit Corporation Act applies to
any Texas trust, including trusts involved in litigation, regardless of the
effective date of any legislation creating or amending the 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., by designating the existing
language as Section A and by adding a new Section B, as follows:  
   
(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, Texas Non-Profit
Corporation Act, 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, Texas Non-Profit
Corporation Act or any other legislation enacted by any legislature that
amended the provisions of Article 1396-2.31, Texas Non-Profit Corporation
Act.  

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.