BILL ANALYSIS S.B. 524 By: Lucio (Oliveira) April 17, 1995 Committee Report (Unamended) BACKGROUND The Marine Military Academy educates students from the eighth through twelfth grades. It is a non-profit organization operated by the United States Marine Corps. Although the school is a not for profit organization, unlike other non-profit organizations, it is not given limited liability under current Texas law. Current Texas law defining charitable organizations excludes private primary or secondary schools. PURPOSE The purpose of this bill is to limit the liability of private primary or secondary educational facilities which are non-profit, exempt from federal income tax, and offers curriculum in conjunction with the United States Marine Corp. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 84.003(1)(A), Civil Practice and Remedies Code, by changing the definition of a charitable organization to include certain schools as defined in new Paragraph (D). (D) Defines a charitable organization as a private primary and secondary school if it: (i) is an exempt organizations under the Internal Revenue Code; (ii) provides educational services only to students it boards if it is a boarding school; and (iii) maintains a curriculum set by the United States Marine Corps Junior Reserve Officer Training Corps. SECTION 2. Effective date - September 1, 1995. SECTION 3. Emergency Clause. 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. SUMMARY OF COMMITTEE ACTION S.B. 524 was considered by the Committee on Civil Practices in a public hearing on April 12, 1995. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of five ayes, zero nays, zero pnv, four absent.