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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