By:  Haywood                                  S.B. No. 189

         97S0085/1                            

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the civil liability of certain chambers of commerce.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Subdivision (1), Section 84.003, Civil Practice

 1-4     and Remedies Code, is amended to read as follows:

 1-5                 (1)  "Charitable organization" means:

 1-6                       (A)  any organization exempt from federal income

 1-7     tax under Section 501(a) of the Internal Revenue Code of 1986  by

 1-8     being listed as an exempt organization in Section 501(c)(3) or

 1-9     501(c)(4) of the code, if it is a nonprofit corporation,

1-10     foundation, community chest, or fund organized and operated

1-11     exclusively for charitable, religious, prevention of cruelty to

1-12     children or animals, youth sports and youth recreational, or

1-13     educational purposes, excluding private primary or secondary

1-14     schools, alumni associations and related on-campus organizations,

1-15     or is organized and operated exclusively for the promotion of

1-16     social welfare by being primarily engaged in promoting the common

1-17     good and general welfare of the people in a community;

1-18                       (B)  any bona fide charitable, religious,

1-19     prevention of cruelty to children or animals, youth sports and

1-20     youth recreational, or educational organization, excluding alumni

1-21     associations and related on-campus organizations, or other

1-22     organization that is organized and operated exclusively for the

1-23     promotion of social welfare by being primarily engaged in promoting

 2-1     the common good and general welfare of the people in a community[,]

 2-2     and that:

 2-3                             (i)  is organized and operated exclusively

 2-4     for one or more of the above purposes;

 2-5                             (ii)  does not engage in activities which

 2-6     in themselves are not in furtherance of the purpose or purposes;

 2-7                             (iii)  does not directly or indirectly

 2-8     participate or intervene in any political campaign on behalf of or

 2-9     in opposition to any candidate for public office;

2-10                             (iv)  dedicates its assets to achieving the

2-11     stated purpose or purposes of the organization;

2-12                             (v)  does not allow any part of its net

2-13     assets on dissolution of the organization to inure to the benefit

2-14     of any group, shareholder, or individual; and

2-15                             (vi)  normally receives more than one-third

2-16     of its support in any year from private or public gifts, grants,

2-17     contributions, or membership fees; [or]

2-18                       (C)  a homeowners association as defined by

2-19     Section 528(c) of the Internal Revenue Code of 1986; or

2-20                       (D)  a local chamber of commerce that is exempt

2-21     from federal income tax under Section 501(a) of the Internal

2-22     Revenue Code of 1986 by being listed as an exempt organization in

2-23     Section 501(c)(6) of the Internal Revenue Code of 1986 and that

2-24     does not directly or indirectly participate or intervene in any

2-25     political campaign on behalf of or in opposition to any candidate

 3-1     for public office.

 3-2           SECTION 2.  This Act takes effect September 1, 1997, and

 3-3     applies only to a cause of action accruing on or after the

 3-4     effective date of this Act.  A cause of action accruing before the

 3-5     effective date of this Act is governed by the law in effect at the

 3-6     time the cause of action accrued, and that law is continued in

 3-7     effect for that purpose.

 3-8           SECTION 3.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended.