PROPERTY CODE

CHAPTER 123. ATTORNEY GENERAL PARTICIPATION IN PROCEEDINGS 
INVOLVING CHARITABLE TRUSTS


	§ 123.001.  DEFINITIONS.  In this chapter:                                  
		(1)  "Charitable entity" means a corporation, trust, 
community chest, fund, foundation, or other entity organized for 
scientific, educational, philanthropic, or environmental purposes, 
social welfare, the arts and humanities, or another civic or public 
purpose described by Section 501(c)(3) of the Internal Revenue Code 
of 1986 (26 U.S.C. 501(c)(3)).
		(2)  "Charitable trust" means a charitable entity, a 
trust the stated purpose of which is to benefit a charitable entity, 
or an inter vivos or testamentary gift to a charitable entity.
		(3)  "Proceeding involving a charitable trust" means a 
suit or other judicial proceeding the object of which is to:
			(A)  terminate a charitable trust or distribute 
its assets to other than charitable donees;
			(B)  depart from the objects of the charitable 
trust stated in the instrument creating the trust, including a 
proceeding in which the doctrine of cy-pres is invoked;
			(C)  construe, nullify, or impair the provisions 
of a testamentary or other instrument creating or affecting a 
charitable trust;
			(D)  contest or set aside the probate of an 
alleged will under which money, property, or another thing of value 
is given for charitable purposes;
			(E)  allow a charitable trust to contest or set 
aside the probate of an alleged will;
			(F)  determine matters relating to the probate and 
administration of an estate involving a charitable trust;  or
			(G)  obtain a declaratory judgment involving a 
charitable trust.           
		(4)  "Fiduciary or managerial agent" means an 
individual, corporation, or other entity acting either as a 
trustee, a member of the board of directors, an officer, an 
executor, or an administrator for a charitable trust.

Added by Acts 1987, 70th Leg., ch. 147, § 4, eff. Sept. 1, 1987.  
Amended by Acts 1995, 74th Leg., ch. 172, § 2, eff. Sept. 1, 
1995.


	§ 123.002.  ATTORNEY GENERAL'S PARTICIPATION.  For and 
on behalf of the interest of the general public of this state in 
charitable trusts, the attorney general is a proper party and may 
intervene in a proceeding involving a charitable trust.  The 
attorney general may join and enter into a compromise, settlement 
agreement, contract, or judgment relating to a proceeding involving 
a charitable trust.

Added by Acts 1987, 70th Leg., ch. 147, § 4, eff. Sept. 1, 1987.           


	§ 123.003.  NOTICE.  (a)  Any party initiating a 
proceeding involving a charitable trust shall give notice of the 
proceeding to the attorney general by sending to the attorney 
general, by registered or certified mail, a true copy of the 
petition or other instrument initiating the proceeding involving a 
charitable trust within 30 days of the filing of such petition or 
other instrument, but no less than 10 days prior to a hearing in 
such a proceeding.
	(b)  Notice shall be given to the attorney general of any 
pleading which adds new causes of action or additional parties to a 
proceeding involving a charitable trust in which the attorney 
general has previously waived participation or in which the 
attorney general has otherwise failed to intervene.  Notice shall 
be given by sending to the attorney general by registered or 
certified mail a true copy of the pleading within 30 days of the 
filing of the pleading, but no less than 10 days prior to a hearing 
in the proceeding.
	(c)  The party or the party's attorney shall execute and file 
in the proceeding an affidavit stating the facts of the notice and 
shall attach to the affidavit the customary postal receipts signed 
by the attorney general or an assistant attorney general.

Added by Acts 1987, 70th Leg., ch. 147, § 4, eff. Sept. 1, 1987.  
Amended by Acts 1995, 74th Leg., ch. 172, § 3, eff. Sept. 1, 
1995.


	§ 123.004.  VOIDABLE JUDGMENT OR AGREEMENT.  (a)  A 
judgment in a proceeding involving a charitable trust is voidable 
if the attorney general is not given notice of the proceeding as 
required by this chapter.  On motion of the attorney general after 
the judgment is rendered, the judgment shall be set aside.
	(b)  A compromise, settlement agreement, contract, or 
judgment relating to a proceeding involving a charitable trust is 
voidable on motion of the attorney general if the attorney general 
is not given notice as required by this chapter unless the attorney 
general has:
		(1)  declined in writing to be a party to the 
proceeding;  or               
		(2)  approved and joined in the compromise, settlement 
agreement, contract, or judgment.

Added by Acts 1987, 70th Leg., ch. 147, § 4, eff. Sept. 1, 1987.           


	§ 123.005.  BREACH OF FIDUCIARY DUTY.  (a)  Venue in a 
proceeding brought by the attorney general alleging breach of a 
fiduciary duty by a fiduciary or managerial agent of a charitable 
trust shall be a court of competent jurisdiction in Travis County or 
in the county where the defendant resides or has its principal 
office.
	(b)  The attorney general, if successful in the proceeding, 
is entitled to recover from a fiduciary or managerial agent of a 
charitable trust actual costs incurred in bringing the suit and may 
recover reasonable attorney's fees.

Added by Acts 1987, 70th Leg., ch. 147, § 4, eff. Sept. 1, 1987.  
Amended by Acts 1995, 74th Leg., ch. 172, § 4, eff. Sept. 1, 
1995.