1-1 AN ACT
1-2 relating to the civil liability of charitable organizations
1-3 providing neighborhood crime prevention or patrol services.
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,
1-15 neighborhood crime prevention or patrol, or educational purposes,
1-16 excluding private primary or secondary schools, alumni associations
1-17 and related on-campus organizations, or is organized and operated
1-18 exclusively for the promotion of social welfare by being primarily
1-19 engaged in promoting the common good and general welfare of the
1-20 people in a community;
1-21 (B) any bona fide charitable, religious,
1-22 prevention of cruelty to children or animals, youth sports and
1-23 youth recreational, neighborhood crime prevention or patrol, or
1-24 educational organization, excluding alumni associations and related
2-1 on-campus organizations, or other organization organized and
2-2 operated exclusively for the promotion of social welfare by being
2-3 primarily engaged in promoting the common good and general welfare
2-4 of the people in a community, and that:
2-5 (i) is organized and operated exclusively
2-6 for one or more of the above purposes;
2-7 (ii) does not engage in activities which
2-8 in themselves are not in furtherance of the purpose or purposes;
2-9 (iii) does not directly or indirectly
2-10 participate or intervene in any political campaign on behalf of or
2-11 in opposition to any candidate for public office;
2-12 (iv) dedicates its assets to achieving the
2-13 stated purpose or purposes of the organization;
2-14 (v) does not allow any part of its net
2-15 assets on dissolution of the organization to inure to the benefit
2-16 of any group, shareholder, or individual; and
2-17 (vi) normally receives more than one-third
2-18 of its support in any year from private or public gifts, grants,
2-19 contributions, or membership fees; or
2-20 (C) a homeowners association as defined by
2-21 Section 528(c) of the Internal Revenue Code of 1986.
2-22 SECTION 2. This Act takes effect September 1, 1997, and
2-23 applies only to a cause of action that accrues on or after that
2-24 date. An action that accrued before the effective date of this Act
2-25 is governed by the law applicable to the action immediately before
2-26 the effective date of this Act, and that law is continued in effect
2-27 for that purpose.
3-1 SECTION 3. The importance of this legislation and the
3-2 crowded condition of the calendars in both houses create an
3-3 emergency and an imperative public necessity that the
3-4 constitutional rule requiring bills to be read on three several
3-5 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 546 was passed by the House on April
28, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 546 was passed by the Senate on May
16, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor