1-1     By:  Shapiro                                            S.B. No. 84
 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 7, 2001, reported favorably by the following vote:  Yeas
 1-5     7, Nays 0; February 7, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the liability of certain volunteer centers.
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 volunteer center, as that term is defined
1-52     by Section 411.126, Government Code.
1-53           SECTION 2.  This Act applies only to a cause of action that
1-54     accrues on or after the effective date of this Act.  A cause of
1-55     action that accrues before the  effective date of this Act is
1-56     governed by the law in effect immediately before the effective date
1-57     of this Act, and the former law is continued in effect for that
1-58     purpose.
1-59           SECTION 3.  This Act takes effect immediately if it receives
1-60     a vote of two-thirds  of all the members elected to each house, as
1-61     provided by Section 39, Article   III, Texas Constitution.  If this
1-62     Act does not receive the vote necessary for immediate effect, this
1-63     Act takes effect September 1, 2001.
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