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.