1-1 AN ACT
1-2 relating to the liability of certain nonprofit organizations and
1-3 their employees and volunteers.
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, fire protection or
1-16 prevention, emergency medical or hazardous material response
1-17 services, or educational purposes, excluding private primary or
1-18 secondary schools, alumni associations and related on-campus
1-19 organizations, or is organized and operated exclusively for the
1-20 promotion of social welfare by being primarily engaged in promoting
1-21 the common good and general welfare of the 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 which is
2-23 exempt 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)(4) of the code.
2-26 SECTION 2. This Act takes effect September 1, 2001, and
2-27 applies only to a cause of action that accrues on or after that
3-1 date. An action that accrued before the effective date of this Act
3-2 is governed by the law applicable to the action immediately before
3-3 the effective date of this Act, and that law is continued in effect
3-4 for that purpose.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2367 was passed by the House on May
5, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2367 was passed by the Senate on May
17, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor