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.