By Bosse                                               H.B. No. 428
       74R2730 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the civil liability of charitable organizations
    1-3  providing crime prevention or law enforcement services.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 84.003(1), Civil Practice and Remedies
    1-6  Code, is amended to read as follows:
    1-7              (1)  "Charitable organization" means:
    1-8                    (A)  any organization exempt from federal income
    1-9  tax under Section 501(a) of the Internal Revenue Code of 1986  by
   1-10  being listed as an exempt organization in Section 501(c)(3) or
   1-11  501(c)(4) of the code, if it is a nonprofit corporation,
   1-12  foundation, community chest, or fund organized and operated
   1-13  exclusively for charitable, religious, prevention of cruelty to
   1-14  children or animals, youth sports and youth recreational, crime
   1-15  prevention or law enforcement, or educational purposes, excluding
   1-16  private primary or secondary schools, alumni associations and
   1-17  related on-campus organizations, or is organized and operated
   1-18  exclusively for the promotion of social welfare by being primarily
   1-19  engaged in promoting the common good and general welfare of the
   1-20  people in a community;
   1-21                    (B)  any bona fide charitable, religious,
   1-22  prevention of cruelty to children or animals, youth sports and
   1-23  youth recreational, crime prevention or law enforcement, or
   1-24  educational organization, excluding alumni associations and related
    2-1  on-campus organizations, or other organization organized and
    2-2  operated exclusively for the promotion of social welfare by being
    2-3  primarily engaged in promoting the common good and general welfare
    2-4  of the people in a community, and that:
    2-5                          (i)  is organized and operated exclusively
    2-6  for one or more of the above purposes;
    2-7                          (ii)  does not engage in activities which
    2-8  in themselves are not in furtherance of the purpose or purposes;
    2-9                          (iii)  does not directly or indirectly
   2-10  participate or intervene in any political campaign on behalf of or
   2-11  in opposition to any candidate for public office;
   2-12                          (iv)  dedicates its assets to achieving the
   2-13  stated purpose or purposes of the organization;
   2-14                          (v)  does not allow any part of its net
   2-15  assets on dissolution of the organization to inure to the benefit
   2-16  of any group, shareholder, or individual; and
   2-17                          (vi)  normally receives more than one-third
   2-18  of its support in any year from private or public gifts, grants,
   2-19  contributions, or membership fees; or
   2-20                    (C)  a homeowners association as defined by
   2-21  Section 528(c) of the Internal Revenue Code of 1986.
   2-22        SECTION 2.  This Act takes effect September 1, 1995, and
   2-23  applies only to a cause of action that accrues on or after that
   2-24  date.  An action that accrued before the effective date of this Act
   2-25  is governed by the law applicable to the action immediately before
   2-26  the effective date of this Act, and that law is continued in effect
   2-27  for that purpose.
    3-1        SECTION 3.  The importance of this legislation and the
    3-2  crowded condition of the calendars in both houses create an
    3-3  emergency and an imperative public necessity that the
    3-4  constitutional rule requiring bills to be read on three several
    3-5  days in each house be suspended, and this rule is hereby suspended.