ZEM C.S.H.B. 546 75(R)BILL ANALYSIS


CIVIL PRACTICES
C.S.H.B. 546
By: Bosse
4-1-97
Committee Report (Substituted)



BACKGROUND 

The Charitable Immunity and Liability Act of 1987, Chapter 84 of the Texas
Civil Practice and Remedies Code, provides civil liability protection for
"charitable organizations."  Section 84.003(1) of the Civil Practice and
Remedies Code provides a dual definition of "charitable organization."
The first definition refers to organizations that are exempt from federal
income tax under Section 501 of the Internal Revenue Code of 1986, and the
second definition recognizes organizations without regard to tax-exempt
status under Section 501 of the I.R.C. Both definitions require that the
organization be organized exclusively for at least one of the recognized
charitable purposes.  The Woodforest Citizens on Patrol, a citizen group
consisting of volunteers who patrol their neighborhood and observe and
report criminal activity, questioned whether their organization was
covered under the Charitable Immunity and Liability Act of 1987. It has
been determined that there may be a question as to coverage under the Act
of charitable organizations such as the Woodforest Citizens on Patrol that
are organized exclusively for crime prevention or law enforcement
purposes.  

PURPOSE

The purpose of this bill is to provide civil liability protection for
charitable organizations whose purpose is neighborhood crime prevention or
patrol by expanding the definition of "charitable organization" under the
Charitable Immunity and Liability Act of 1987, Chapter 84 of the Texas
Civil Practice and Remedies Code. 

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 ANALYSIS

SECTION 1. Amends Section 84.003(1), Civil Practices and Remedies Code by
expanding the definition of "charitable organization" to include: 

(a) organizations exempt from federal income tax under Section 501 of the
Internal Revenue Code of 1986 that are organized and operated exclusively
for neighborhood crime prevention or patrol, and  

(b) any bona fide organization, regardless of tax exempt status, organized
exclusively for neighborhood crime prevention or patrol.  

SECTION 2. Effective date:  September 1, 1997. Applies prospectively;
savings clause. 

SECTION 3. Emergency Clause


COMPARISON OF ORIGINAL TO SUBSTITUTE
The committee substitute deletes language in the original bill referring
to "crime prevention or law enforcement" organizations, and replaces it
with language clarifying that "neighborhood crime prevention or patrol"
organizations are included in the definition of charitable organization.