1-1     By:  Williams (Senate Sponsor - Bernsen)              H.B. No. 2367
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Jurisprudence; May 11, 2001, reported favorably by the following
 1-5     vote:  Yeas 5, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the liability of certain nonprofit organizations and
 1-9     their employees and volunteers.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Section 84.003(1), Civil Practice and Remedies
1-12     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, fire protection or
1-22     prevention, emergency medical or hazardous material response
1-23     services, or educational purposes, excluding private primary or
1-24     secondary schools, alumni associations and related on-campus
1-25     organizations, or is organized and operated exclusively for the
1-26     promotion of social welfare by being primarily engaged in promoting
1-27     the common good and general welfare of the people in a community;
1-28                       (B)  any bona fide charitable, religious,
1-29     prevention of cruelty to children or animals, youth sports and
1-30     youth recreational, neighborhood crime prevention or patrol, or
1-31     educational organization, excluding alumni associations and related
1-32     on-campus organizations, or other organization organized and
1-33     operated exclusively for the promotion of social welfare by being
1-34     primarily engaged in promoting the common good and general welfare
1-35     of the people in a community, and that:
1-36                             (i)  is organized and operated exclusively
1-37     for one or more of the above purposes;
1-38                             (ii)  does not engage in activities which
1-39     in themselves are not in furtherance of the purpose or purposes;
1-40                             (iii)  does not directly or indirectly
1-41     participate or intervene in any political campaign on behalf of or
1-42     in opposition to any candidate for public office;
1-43                             (iv)  dedicates its assets to achieving the
1-44     stated purpose or purposes of the organization;
1-45                             (v)  does not allow any part of its net
1-46     assets on dissolution of the organization to inure to the benefit
1-47     of any group, shareholder, or individual; and
1-48                             (vi)  normally receives more than one-third
1-49     of its support in any year from private or public gifts, grants,
1-50     contributions, or membership fees; or
1-51                       (C)  a homeowners association as defined by
1-52     Section 528(c) of the Internal Revenue Code of 1986 or which is
1-53     exempt 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)(4) of the code.
1-56           SECTION 2. This Act takes effect September 1, 2001, and
1-57     applies only to a cause of action that accrues on or after that
1-58     date.  An action that accrued before the effective date of this Act
1-59     is governed by the law applicable to the action immediately before
1-60     the effective date of this Act, and that law is continued in effect
1-61     for that purpose.
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