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


Senate Research Center   C.S.S.B. 189
By: Haywood
State Affairs
5-18-97
Committee Report (Substituted)


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, C.S.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, and that does not directly or indirectly contribute to a 
political action committee that makes 
expenditures to any candidates for public office.   Makes a 
nonsubstantive change.

SECTION 2. Amends Section 84.007, Civil Practice and Remedies 
Code, by adding Subsection 
(h), to provide that this chapter does not apply to a cosponsor 
of an event or activity with a local 
chamber of commerce.

SECTION 3. Effective date:  September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause. 

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 84.003(1), Civil Practice and Remedies Code 
to provide that a "charitable 
organization," consists of certain provisions, including a 
local chamber of commerce that 
does not directly or indirectly contribute to a political 
action committee that makes 
expenditures to any candidates for public office.  Makes a 
nonsubstantive change.

SECTION 2.

Redesignates effective date and prospective clause to 
SECTION 3.  Amends Section 84.007,
Civil Practice and Remedies Code, by adding Subsection (h), 
to provide that this chapter 
does not apply to a cosponsor of an event or activity with a 
local chamber of commerce.  

SECTION 3.

Redesignates effective date and prospective clause from 
SECTION 2.  

SECTION 4.  

 Redesignates emergency clause from SECTION 3.