1-1 By: Haywood, West, Lucio S.B. No. 348
1-2 (In the Senate - Filed February 2, 1999; February 4, 1999,
1-3 read first time and referred to Committee on Economic Development;
1-4 March 22, 1999, reported favorably by the following vote: Yeas 6,
1-5 Nays 0; March 22, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the civil liability of charitable organizations that
1-9 are chambers of commerce.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subdivision (1), Section 84.003, Civil Practice
1-12 and Remedies Code, is amended to read as follows:
1-13 (1) "Charitable organization" means:
1-14 (A) any organization exempt from federal income
1-15 tax under Section 501(a) of the Internal Revenue Code of 1986 by
1-16 being listed as an exempt organization in Section 501(c)(3) or
1-17 501(c)(4) of the code, if it is a nonprofit corporation,
1-18 foundation, community chest, or fund organized and operated
1-19 exclusively for charitable, religious, prevention of cruelty to
1-20 children or animals, youth sports and youth recreational,
1-21 neighborhood crime prevention or patrol, or educational purposes,
1-22 excluding private primary or secondary schools, alumni associations
1-23 and related on-campus organizations, or is organized and operated
1-24 exclusively for the promotion of social welfare by being primarily
1-25 engaged in promoting the common good and general welfare of the
1-26 people in a community;
1-27 (B) any bona fide charitable, religious,
1-28 prevention of cruelty to children or animals, youth sports and
1-29 youth recreational, neighborhood crime prevention or patrol, or
1-30 educational organization, excluding alumni associations and related
1-31 on-campus organizations, or other organization organized and
1-32 operated exclusively for the promotion of social welfare by being
1-33 primarily engaged in promoting the common good and general welfare
1-34 of the people in a community, and that:
1-35 (i) is organized and operated exclusively
1-36 for one or more of the above purposes;
1-37 (ii) does not engage in activities which
1-38 in themselves are not in furtherance of the purpose or purposes;
1-39 (iii) does not directly or indirectly
1-40 participate or intervene in any political campaign on behalf of or
1-41 in opposition to any candidate for public office;
1-42 (iv) dedicates its assets to achieving the
1-43 stated purpose or purposes of the organization;
1-44 (v) does not allow any part of its net
1-45 assets on dissolution of the organization to inure to the benefit
1-46 of any group, shareholder, or individual; and
1-47 (vi) normally receives more than one-third
1-48 of its support in any year from private or public gifts, grants,
1-49 contributions, or membership fees; [or]
1-50 (C) a homeowners association as defined by
1-51 Section 528(c) of the Internal Revenue Code of 1986; or
1-52 (D) a local chamber of commerce that is exempt
1-53 from federal income tax under Section 501(a) of the Internal
1-54 Revenue Code of 1986 by being listed as an exempt organization in
1-55 Section 501(c)(6) of the Internal Revenue Code of 1986, that does
1-56 not directly or indirectly participate or intervene in any
1-57 political campaign on behalf of or in opposition to any candidate
1-58 for public office, and that does not directly or indirectly
1-59 contribute to a political action committee that makes expenditures
1-60 to any candidates for public office.
1-61 SECTION 2. Section 84.007, Civil Practice and Remedies Code,
1-62 is amended by adding Subsection (h) to read as follows:
1-63 (h) This chapter does not apply to a cosponsor of an event
1-64 or activity with a local chamber of commerce.
2-1 SECTION 3. This Act takes effect September 1, 1999, and
2-2 applies only to a cause of action that accrues on or after that
2-3 date. An action that accrued before the effective date of this Act
2-4 is governed by the law applicable to the action immediately before
2-5 the effective date of this Act, and that law is continued in effect
2-6 for that purpose.
2-7 SECTION 4. The importance of this legislation and the
2-8 crowded condition of the calendars in both houses create an
2-9 emergency and an imperative public necessity that the
2-10 constitutional rule requiring bills to be read on three several
2-11 days in each house be suspended, and this rule is hereby suspended.
2-12 * * * * *