By Danburg                                            H.B. No. 2826
       74R769 MWV-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to motor vehicle insurance for nonprofit organizations.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article 5.01, Insurance Code, is amended by
    1-5  adding Subsection (g) to read as follows:
    1-6        (g)  The commissioner shall establish by rule a
    1-7  classification of risk applicable to motor vehicles used for
    1-8  limited purposes by nonprofit organizations.  The commissioner
    1-9  shall adopt rules to classify risks and define the limited uses
   1-10  permissible for motor vehicles insured under the classification
   1-11  established under this subsection.  In this subsection, "nonprofit
   1-12  organization" means any organization exempt from federal income tax
   1-13  under Section 501(a) of the Internal Revenue Code of 1986 by being
   1-14  listed as an exempt organization in Section 501(c)(3) or (c)(4) of
   1-15  that code.
   1-16        SECTION 2.  This Act takes effect September 1, 1995, and
   1-17  applies only to an insurance policy that is delivered, issued for
   1-18  delivery, or renewed on or after January 1, 1996.  A policy
   1-19  delivered, issued for delivery, or renewed before January 1, 1996,
   1-20  is governed by the law as it existed immediately before the
   1-21  effective date of this Act, and that law is continued in effect for
   1-22  that purpose.
   1-23        SECTION 3.  The importance of this legislation and the
   1-24  crowded condition of the calendars in both houses create an
    2-1  emergency and an imperative public necessity that the
    2-2  constitutional rule requiring bills to be read on three several
    2-3  days in each house be suspended, and this rule is hereby suspended.