1-1 By: Haywood, et al. S.B. No. 78
1-2 (In the Senate - Filed November 13, 2000; January 10, 2001,
1-3 read first time and referred to Committee on Business and Commerce;
1-4 February 26, 2001, reported favorably by the following vote: Yeas
1-5 6, Nays 0; February 26, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the liability of certain local chambers of commerce.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Subdivision (1), Section 84.003, Civil Practice
1-11 and Remedies Code, is amended to read as follows:
1-12 (1) "Charitable organization" means:
1-13 (A) any organization exempt from federal income
1-14 tax under Section 501(a) of the Internal Revenue Code of 1986 by
1-15 being listed as an exempt organization in Section 501(c)(3) or
1-16 501(c)(4) of the code, if it is a nonprofit corporation,
1-17 foundation, community chest, or fund organized and operated
1-18 exclusively for charitable, religious, prevention of cruelty to
1-19 children or animals, youth sports and youth recreational,
1-20 neighborhood crime prevention or patrol, or educational purposes,
1-21 excluding private primary or secondary schools, alumni associations
1-22 and related on-campus organizations, or is organized and operated
1-23 exclusively for the promotion of social welfare by being primarily
1-24 engaged in promoting the common good and general welfare of the
1-25 people in a community;
1-26 (B) any bona fide charitable, religious,
1-27 prevention of cruelty to children or animals, youth sports and
1-28 youth recreational, neighborhood crime prevention or patrol, or
1-29 educational organization, excluding alumni associations and related
1-30 on-campus organizations, or other organization organized and
1-31 operated exclusively for the promotion of social welfare by being
1-32 primarily engaged in promoting the common good and general welfare
1-33 of the people in a community, and that:
1-34 (i) is organized and operated exclusively
1-35 for one or more of the above purposes;
1-36 (ii) does not engage in activities which
1-37 in themselves are not in furtherance of the purpose or purposes;
1-38 (iii) does not directly or indirectly
1-39 participate or intervene in any political campaign on behalf of or
1-40 in opposition to any candidate for public office;
1-41 (iv) dedicates its assets to achieving the
1-42 stated purpose or purposes of the organization;
1-43 (v) does not allow any part of its net
1-44 assets on dissolution of the organization to inure to the benefit
1-45 of any group, shareholder, or individual; and
1-46 (vi) normally receives more than one-third
1-47 of its support in any year from private or public gifts, grants,
1-48 contributions, or membership fees; [or]
1-49 (C) a homeowners association as defined by
1-50 Section 528(c) of the Internal Revenue Code of 1986; or
1-51 (D) a local chamber of commerce that:
1-52 (i) is exempt from federal income tax
1-53 under Section 501(a) of the Internal Revenue Code of 1986 by being
1-54 listed as an exempt organization in Section 501(c)(6) of the code;
1-55 (ii) does not directly or indirectly
1-56 participate or intervene in any political campaign on behalf of or
1-57 in opposition to any candidate for public office; and
1-58 (iii) 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 unless the cosponsor
2-1 is a charitable organization under this chapter.
2-2 SECTION 3. This Act takes effect September 1, 2001, and
2-3 applies only to a cause of action that accrues on or after that
2-4 date. An action that accrued before the effective date of this Act
2-5 is governed by the law in effect when the action accrued, and the
2-6 former law is continued in effect for that purpose.
2-7 * * * * *