By Hawley                                              H.B. No. 233
         77R481 DAK-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the liability of volunteers at certain free health
 1-3     clinics.
 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 health clinic that provides services to
2-23     its patients without collecting a fee for those services other than
2-24     that provided by any insurance coverage that its patients  may
2-25     carry, without regard to whether the clinic is:
2-26                             (i)  operated by a public or private
2-27     entity; or
 3-1                             (ii)  funded partially or wholly by public
 3-2     money.
 3-3           SECTION 2. Section 84.007(f), Civil Practice and Remedies
 3-4     Code, is amended to read as follows:
 3-5           (f)  This chapter does not apply to limit the liability of a
 3-6     governmental unit or employee of a governmental unit as defined by
 3-7     Section 101.001 but may apply to limit the liability of a volunteer
 3-8     for the governmental unit [in the Texas Tort Claims Act (Subchapter
 3-9     A, Chapter 101, Civil Practice and Remedies Code)].
3-10           SECTION 3. This Act takes effect September 1, 2001, and
3-11     applies only to a cause of action that accrues on or after that
3-12     date.  An action that accrued before the effective date of this Act
3-13     is governed by the law applicable to the action immediately before
3-14     the effective date of this Act, and that law is continued in effect
3-15     for that purpose.