By Hardcastle H.B. No. 1990
76R7282 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the liability of certain organizations that are not
1-3 organized for profit and of the volunteers and employees of those
1-4 organizations.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 84.003(1), Civil Practice and Remedies
1-7 Code, is amended to read as follows:
1-8 (1) "Charitable organization" means:
1-9 (A) any organization exempt from federal income
1-10 tax under Section 501(a) of the Internal Revenue Code of 1986 by
1-11 being listed as an exempt organization in Section 501(c)(3) or
1-12 501(c)(4) of the code, if it is a nonprofit corporation,
1-13 foundation, community chest, or fund organized and operated
1-14 exclusively for charitable, religious, prevention of cruelty to
1-15 children or animals, youth sports and youth recreational,
1-16 neighborhood crime prevention or patrol, or educational purposes,
1-17 excluding private primary or secondary schools, alumni associations
1-18 and related on-campus organizations, or is organized and operated
1-19 exclusively for the promotion of social welfare by being primarily
1-20 engaged in promoting the common good and general welfare of the
1-21 people in a community;
1-22 (B) any bona fide charitable, religious,
1-23 prevention of cruelty to children or animals, youth sports and
1-24 youth recreational, neighborhood crime prevention or patrol, or
2-1 educational organization, excluding alumni associations and related
2-2 on-campus organizations, or other organization organized and
2-3 operated exclusively for the promotion of social welfare by being
2-4 primarily engaged in promoting the common good and general welfare
2-5 of the people in a community, and that:
2-6 (i) is organized and operated exclusively
2-7 for one or more of the above purposes;
2-8 (ii) does not engage in activities which
2-9 in themselves are not in furtherance of the purpose or purposes;
2-10 (iii) does not directly or indirectly
2-11 participate or intervene in any political campaign on behalf of or
2-12 in opposition to any candidate for public office;
2-13 (iv) dedicates its assets to achieving the
2-14 stated purpose or purposes of the organization;
2-15 (v) does not allow any part of its net
2-16 assets on dissolution of the organization to inure to the benefit
2-17 of any group, shareholder, or individual; and
2-18 (vi) normally receives more than one-third
2-19 of its support in any year from private or public gifts, grants,
2-20 contributions, or membership fees; [or]
2-21 (C) a homeowners association as defined by
2-22 Section 528(c) of the Internal Revenue Code of 1986; or
2-23 (D) any organization exempt from federal income
2-24 tax under Section 501(a) of the Internal Revenue Code of 1986, and
2-25 its subsequent amendments, by being listed as an exempt
2-26 organization in Section 501(c)(6) of the code.
2-27 SECTION 2. This Act takes effect September 1, 1999.
3-1 SECTION 3. This Act applies only to a cause of action that
3-2 accrues on or after the effective date of this Act. A cause of
3-3 action that accrues before the effective date of this Act is
3-4 governed by the law as it existed immediately before that date and
3-5 that law is continued in effect for this purpose.
3-6 SECTION 4. The importance of this legislation and the
3-7 crowded condition of the calendars in both houses create an
3-8 emergency and an imperative public necessity that the
3-9 constitutional rule requiring bills to be read on three several
3-10 days in each house be suspended, and this rule is hereby suspended.