SRC-MAX S.B. 189 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 189
By: Haywood
Economic Development
3-19-97
As Filed


DIGEST 

Currently, chambers of commerce in Texas receive limited liability
protection.  These chambers of commerce often rely on volunteers from the
community for board members and officers.  Many chambers, especially in
the smaller communities, cannot afford to buy liability insurance for
directors and officers, which can hinder the ability of these chambers to
recruit people from the community to fill the offices.  This bill  grants
charitable organization status to certain chambers of commerce.  This
status includes certain exemptions from federal income taxes under the
Internal Revenue Code. 

PURPOSE

As proposed, S.B. 189 grants charitable organization status to certain
chambers of commerce. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 84.003(1), Civil Practice and Remedies Code, to
redefine "charitable organization" as a local chamber of commerce that is
exempt from federal income tax under Section 501(a) of the Internal
Revenue Code of 1986 by being listed as an exempt organization in Section
501(c)(6) of the Internal Revenue Code of 1986 and that does not directly
or indirectly participate or intervene in any political campaign on behalf
of or in opposition to any candidate for public office.   Makes a
nonsubstantive change. 

SECTION 2. Effective date:  September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.