By Uher H.B. No. 539
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the civil liability of charitable organizations that
1-3 are chambers of commerce.
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, alumni associations and related on-campus organizations,
1-17 or is organized and operated exclusively for the promotion of
1-18 social welfare by being primarily engaged in promoting the common
1-19 good and general welfare of the people in a community;
1-20 (B) any bona fide charitable, religious,
1-21 prevention of cruelty to children or animals, youth sports and
1-22 youth recreational, or educational organization, excluding alumni
1-23 associations and related on-campus organizations, or other
1-24 organization organized and operated exclusively for the promotion
2-1 of social welfare by being primarily engaged in promoting the
2-2 common good and general welfare of the people in a community, and
2-3 that:
2-4 (i) is organized and operated exclusively
2-5 for one or more of the above purposes;
2-6 (ii) does not engage in activities which
2-7 in themselves are not in furtherance of the purpose or purposes;
2-8 (iii) does not directly or indirectly
2-9 participate or intervene in any political campaign on behalf of or
2-10 in opposition to any candidate for public office;
2-11 (iv) dedicates its assets to achieving the
2-12 stated purpose or purposes of the organization;
2-13 (v) does not allow any part of its net
2-14 assets on dissolution of the organization to inure to the benefit
2-15 of any group, shareholder, or individual; and
2-16 (vi) normally receives more than one-third
2-17 of its support in any year from private or public gifts, grants,
2-18 contributions, or membership fees; [or]
2-19 (C) a homeowners association as defined by
2-20 Section 528(c) of the Internal Revenue Code of 1986; or
2-21 (D) a local chamber of commerce that is exempt
2-22 from federal income tax under Section 501(a) of the Internal
2-23 Revenue Code of 1986 by being listed as an exempt organization in
2-24 Section 501(c)(6) of the Internal Revenue Code of 1986, that does
2-25 not directly or indirectly participate or intervene in any
2-26 political campaign on behalf of or in opposition to any candidate
2-27 for public office, and that does not directly or indirectly
3-1 contribute to a political action committee that makes expenditures
3-2 to any candidates for public office.
3-3 SECTION 2. Section 84.007, Civil Practice and Remedies Code,
3-4 is amended by adding Subsection (h) to read as follows:
3-5 (h) This chapter does not apply to a cosponsor of an event
3-6 or activity with a local chamber of commerce.
3-7 SECTION 3. This Act takes effect September 1, 1997, and
3-8 applies only to a cause of action that accrues on or after that
3-9 date. An action that accrued before the effective date of this Act
3-10 is governed by the law applicable to the action immediately before
3-11 the effective date of this Act, and that law is continued in effect
3-12 for that purpose.
3-13 SECTION 4. The importance of this legislation and the
3-14 crowded condition of the calendars in both houses create an
3-15 emergency and an imperative public necessity that the
3-16 constitutional rule requiring bills to be read on three several
3-17 days in each house be suspended, and this rule is hereby suspended.