By Lucio                                               S.B. No. 524
       74R3599 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the civil liability of certain primary and secondary
    1-3  military schools.
    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, or
   1-15  educational purposes, excluding private primary or secondary
   1-16  schools other than schools described by Paragraph (D), alumni
   1-17  associations and related on-campus organizations, or is organized
   1-18  and operated exclusively for the promotion of social welfare by
   1-19  being primarily engaged in promoting the common good and general
   1-20  welfare of the 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, or educational organization, excluding alumni
   1-24  associations and related on-campus organizations, or other
    2-1  organization organized and operated exclusively for the promotion
    2-2  of social welfare by being primarily engaged in promoting the
    2-3  common good and general welfare of the people in a community, and
    2-4  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; or
   2-22                    (D)  a primary or secondary school if the school:
   2-23                          (i)  is exempt from federal income tax
   2-24  under Section 501(a) of the Internal Revenue Code of 1986 by being
   2-25  listed as an exempt organization in Section 501(c)(3) of the code;
   2-26                          (ii)  operates as a boarding school only
   2-27  and does not provide educational services to students other than
    3-1  boarding students; and
    3-2                          (iii)  offers a curriculum in conjunction
    3-3  with the United States Marine Corps Junior Reserve Officer Training
    3-4  Corps.
    3-5        SECTION 2.  This Act takes effect September 1, 1995, and
    3-6  applies only to a cause of action that accrues on or after that
    3-7  date.  An action that accrued before the effective date of this Act
    3-8  is governed by the law as it existed immediately before the
    3-9  effective date of this Act, and that law is continued in effect for
   3-10  that purpose.
   3-11        SECTION 3.  The importance of this legislation and the
   3-12  crowded condition of the calendars in both houses create an
   3-13  emergency and an imperative public necessity that the
   3-14  constitutional rule requiring bills to be read on three several
   3-15  days in each house be suspended, and this rule is hereby suspended.