78R2661 YDB-D

By:  Geren                                                        H.B. No. 504



A BILL TO BE ENTITLED

AN ACT

relating to an exemption from the private security law for certain 
nonprofit businesses or civic organizations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1702.327, Occupations Code, is amended 
to read as follows:
	Sec. 1702.327.  NONPROFIT AND CIVIC ORGANIZATIONS.  This 
chapter does not apply to:
		(1)  a nonprofit business or civic organization that:                         
			(A)  employs a peace officer who meets the 
qualifications of Section 1702.322(1) as a patrolman, guard, or 
watchman;
			(B)  provides the services of the peace officer 
only to:                   
				(i)  the organization's members; or                                         
				(ii)  if the organization does not have 
members, the members of the communities served by the organization 
as described in the organization's articles of incorporation or 
other organizational documents;
			(C)  devotes the net receipts from all charges for 
the services exclusively to the cost of providing the services or to 
the costs of other services for the enhancement of the security or 
safety of:
				(i)  the organization's members; or                                         
				(ii)  if the organization does not have 
members, the members of the communities served by the organization 
as described in the organization's articles of incorporation or 
other organizational documents; and
			(D)  does not perform any other service that 
requires a license under this chapter; [or]
		(2)  a charitable, nonprofit organization that 
maintains a system of records to aid in the location of missing 
children and that:
			(A)  is exempt from the payment of federal income 
taxes under Section 501(a) of the Internal Revenue Code of 1986 and 
its subsequent amendments by being listed as an exempt entity under 
Section 501(c)(3) of that code;
			(B)  exclusively provides services related to 
locating missing children; and
			(C)  does not perform any other service that 
requires a license under this chapter; or
		(3)  a nonprofit business or civic organization that 
employs or contracts with a person to provide parking guard and 
other facility management services during an event conducted by the 
business or organization.
	SECTION 2.  This Act takes effect September 1, 2003.