BILL ANALYSIS



H.B. 2677
By: Hunter, Todd
5-8-95
Committee Report (Unamended)


BACKGROUND

Charitable organizations receive limited liability protection.
Damages against charitable organizations are limited to $100,000
per occurrence.

PURPOSE

This legislation places local chambers of commerce under the
definition of charitable organizations for liability purposes.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION

     SECTION 1. Include in the definition of "charitable
organization" a chamber of commerce organized as a tax-exempt
501(c)(6) organization under the Internal Revenue Code.

     SECTION 2. Establishes the effective date on September 1,
1993. applies only to prospective causes of action.

     SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE ACTION

House Bill 2677 was considered by the Committee on Civil Practices
in a public hearing on March 29, 1995. The following individuals
testified in support of the bill: Arthur A. Roberts, representing
the Texas Association of Business and Chambers of Commerce; E.S.
"Stew" Darsey, representing himself and the Belton Area Chamber of
Commerce; Paul Hindelang, representing himself, the Georgetown
Chamber of Commerce and the Texas Chamber of Commerce Executives;
Kory Wallace, representing himself and the Taylor Chamber of
Commerce; Linda Bowman, representing herself and the Texas Chamber
of Commerce Executives; and Chris Shields, representing the Texas
Association of Business and Chambers of Commerce. The following
individuals testified in opposition to the bill: Mike Slack,
attorney, representing himself and the Texas Trial Lawyers
Association. No one testified neutrally on the bill. The chair left
the bill pending. The committee considered H.B. 2677 in a formal
meeting on May 8, 1995. The chair left the bill pending. H.B. 2677
was considered by the committee in a formal meeting on May 8, 1995.
The committee considered two amendments to the bill. Both of those
amendments failed adoption by a record vote of one aye, five nays,
zero pnv and three absent. The bill was reported favorably, without
amendment, with the recommendation that it do pass and be printed,
by a record vote of five ayes, one nay, zero pnv and three absent.