By:  Solis                                                        H.B. No. 3512



A BILL TO BE ENTITLED

AN ACT

relating to the treatment of certain private primary or secondary 
schools as charitable organizations for certain purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subdivision (1), Section 84.003, Civil Practices 
and Remedies Code, is amended to read as follows:
		(1)  "Charitable organization" means:                                         
			(A)  any organization exempt from federal income 
tax under Section 501(a) of the Internal Revenue Code of 1986 by 
being listed as an exempt organization in Section 501(c)(3) or 
501(c)(4) of the code, if it is a nonprofit corporation, 
foundation, community chest, or fund organized and operated 
exclusively for charitable, religious, prevention of cruelty to 
children or animals, youth sports and youth recreational, 
neighborhood crime prevention or patrol, fire protection or 
prevention, emergency medical or hazardous material response 
services, or educational purposes, [excluding] including private 
primary or secondary schools[,] accredited by the Southern 
Association of Colleges and Schools, and excluding alumni 
associations and related on-campus organizations, or is organized 
and operated exclusively for the promotion of social welfare by 
being primarily engaged in promoting the common good and general 
welfare of the people in a community;
			(B)  any bona fide charitable, religious, 
prevention of cruelty to children or animals, youth sports and 
youth recreational, neighborhood crime prevention or patrol, or 
educational organization, excluding alumni associations and 
related on-campus organizations, or other organization organized 
and operated exclusively for the promotion of social welfare by 
being primarily engaged in promoting the common good and general 
welfare of the people in a community, and that:
				(i)  is organized and operated exclusively 
for one or more of the above purposes;
				(ii)  does not engage in activities which in 
themselves are not in furtherance of the purpose or purposes;
				(iii)  does not directly or indirectly 
participate or intervene in any political campaign on behalf of or 
in opposition to any candidate for public office;
				(iv)  dedicated its assets to achieving the 
stated purpose or purposes of the organization;
				(v)  does not allow any part of its net 
assets on dissolution of the organization to inure to the benefit of 
any group, shareholder, or individual; and
				(vi)  normally receives more than one-third 
of its support in any year from private or public gifts, grants, 
contributions, or membership fees;
			(C)  a homeowners association as defined by 
Section 528(c) of the Internal Revenue Code of 1986 or which is 
exempt from federal income tax under Section 501(a) of the Internal 
Revenue Code of 1986 by being listed as an exempt organization in 
Section 501(c))4) of the code; or
			(D)  a volunteer center, as that term is defined 
by Section 411.126, Government Code.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to a cause of action that accrues on or after that 
date.  An action that accrues before the effective date of this Act 
is governed by the law in effect when the action accrues, and the 
former law is continued in effect for that purpose.