By Uher                                               H.B. No. 1416
         76R3114 DAK-D                           
                                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,
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; or
2-22                       (D)  a local chamber of commerce that is exempt
2-23     from federal income tax under Section 501(a) of the Internal
2-24     Revenue Code of 1986 by being listed as an exempt organization in
2-25     Section 501(c)(6) of the Internal Revenue Code of 1986, that does
2-26     not directly or indirectly participate or intervene in any
2-27     political campaign on behalf of or in opposition to any candidate
 3-1     for public office, and that does not directly or indirectly
 3-2     contribute to a political action committee that makes expenditures
 3-3     to any candidates for public office.
 3-4           SECTION 2.  Section 84.007, Civil Practice and Remedies Code,
 3-5     is amended by adding Subsection (h) to read as follows:
 3-6           (h)  This chapter does not apply to a cosponsor of an event
 3-7     or activity with a local chamber of commerce.
 3-8           SECTION 3.  This Act takes effect September 1, 1999, and
 3-9     applies only to a cause of action that accrues on or after that
3-10     date. An action that accrued before the effective date of this Act
3-11     is governed by the law applicable to the action immediately before
3-12     the effective date of this Act, and that law is continued in effect
3-13     for that purpose.
3-14           SECTION 4.  The importance of this legislation and the
3-15     crowded condition of the calendars in both houses create an
3-16     emergency and an imperative public necessity that the
3-17     constitutional rule requiring bills to be read on three several
3-18     days in each house be suspended, and this rule is hereby suspended.