1-1  By:  Harris of Tarrant                                S.B. No. 1471
    1-2        (In the Senate - Filed May 3, 1993; May 4, 1993, read first
    1-3  time and referred to Committee on Jurisprudence; May 12, 1993,
    1-4  reported adversely, with favorable Committee Substitute by the
    1-5  following vote:  Yeas 5, Nays 0; May 12, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Henderson          x                               
    1-9        Harris of Tarrant  x                               
   1-10        Brown              x                               
   1-11        Harris of Dallas                              x    
   1-12        Luna               x                               
   1-13        Parker                                        x    
   1-14        West               x                               
   1-15  COMMITTEE SUBSTITUTE FOR S.B. No. 1471       By:  Harris of Tarrant
   1-16                         A BILL TO BE ENTITLED
   1-17                                AN ACT
   1-18  relating to liability limitations for charitable organizations.
   1-19        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-20        SECTION 1.  Subdivision (1), Section 84.003, Civil Practice
   1-21  and Remedies Code, is amended to read as follows:
   1-22              (1)  "Charitable organization" means:
   1-23                    (A)  any organization exempt from federal income
   1-24  tax under Section 501(a) of the Internal Revenue Code of 1986 by
   1-25  being listed as an exempt organization in Section 501(c)(3) or
   1-26  501(c)(4) of the code, if it is a nonprofit corporation,
   1-27  foundation, community chest, or fund organized and operated
   1-28  exclusively for charitable, religious, prevention of cruelty to
   1-29  children or animals, youth sports and youth recreational, or
   1-30  educational purposes, excluding private primary or secondary
   1-31  schools, alumni associations and related on-campus organizations,
   1-32  or is organized and operated exclusively for the promotion of
   1-33  social welfare by being primarily engaged in promoting the common
   1-34  good and general welfare of the people in a community;
   1-35                    (B)  any bona fide charitable, religious,
   1-36  prevention of cruelty to children or animals, youth sports and
   1-37  youth recreational, or educational organization, excluding alumni
   1-38  associations and related on-campus organizations, or other
   1-39  organization organized and operated exclusively for the promotion
   1-40  of social welfare by being primarily engaged in promoting the
   1-41  common good and general welfare of the people in a community, and
   1-42  that:
   1-43                          (i)  is organized and operated exclusively
   1-44  for one or more of the above purposes;
   1-45                          (ii)  does not engage in activities which
   1-46  in themselves are not in furtherance of the purpose or purposes;
   1-47                          (iii)  does not directly or indirectly
   1-48  participate or intervene in any political campaign on behalf of or
   1-49  in opposition to any candidate for public office;
   1-50                          (iv)  dedicates its assets to achieving the
   1-51  stated purpose or purposes of the organization;
   1-52                          (v)  does not allow any part of its net
   1-53  assets on dissolution of the organization to inure to the benefit
   1-54  of any group, shareholder, or individual; and
   1-55                          (vi)  normally receives more than one-third
   1-56  of its support in any year from private or public gifts, grants,
   1-57  contributions, or membership fees; <or>
   1-58                    (C)  a homeowners association as defined by
   1-59  Section 528(c) of the Internal Revenue Code of 1986; or
   1-60                    (D)  a local or regional civic organization
   1-61  exempt from federal income tax under Section 501(a) of the Internal
   1-62  Revenue Code of 1986 by being listed as an exempt organization
   1-63  under Section 501(c)(6) of the code.
   1-64        SECTION 2.  Subsection (g), Section 84.007, Civil Practice
   1-65  and Remedies Code, is amended to read as follows:
   1-66        (g)  Sections 84.005 and 84.006 of this Act do not apply to
   1-67  any charitable organization that does not have liability insurance
   1-68  coverage in effect on any act or omission to which this chapter
    2-1  applies.  The coverage shall apply to the acts or omissions of the
    2-2  organization and its employees and volunteers and be in the amount
    2-3  of at least <$500,000 for each person and> $1,000,000 for each
    2-4  single occurrence for death or bodily injury or <and $100,000 for
    2-5  each single occurrence for> injury to or destruction of property
    2-6  and $1,000,000 aggregate for the policy term.  The coverage may be
    2-7  provided under a contract of insurance or other plan of insurance
    2-8  authorized by statute.  Nothing in this chapter shall limit
    2-9  liability of any insurer or insurance plan in an action under
   2-10  Chapter 21, Insurance Code, or in an action for bad faith conduct,
   2-11  breach of fiduciary duty, or negligent failure to settle a claim.
   2-12        SECTION 3.  The importance of this legislation and the
   2-13  crowded condition of the calendars in both houses create an
   2-14  emergency and an imperative public necessity that the
   2-15  constitutional rule requiring bills to be read on three several
   2-16  days in each house be suspended, and this rule is hereby suspended.
   2-17                               * * * * *
   2-18                                                         Austin,
   2-19  Texas
   2-20                                                         May 12, 1993
   2-21  Hon. Bob Bullock
   2-22  President of the Senate
   2-23  Sir:
   2-24  We, your Committee on Jurisprudence to which was referred S.B. No.
   2-25  1471, have had the same under consideration, and I am instructed to
   2-26  report it back to the Senate with the recommendation that it do not
   2-27  pass, but that the Committee Substitute adopted in lieu thereof do
   2-28  pass and be printed.
   2-29                                                         Henderson,
   2-30  Chairman
   2-31                               * * * * *
   2-32                               WITNESSES
   2-33                                                  FOR   AGAINST  ON
   2-34  ___________________________________________________________________
   2-35  Name:  Donald M. Amundson                        x
   2-36  Representing:  Farmer's Insurance Group
   2-37  City:  Austin
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