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                                                                  S.B. No. 360




AN ACT

relating to the treatment of certain local chambers of commerce 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 Practice 
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 private primary or 
secondary schools, 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)  dedicates 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; or
			(E)  a local chamber of commerce that:                                
				(i)  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)(6) of the code;
				(ii)  does not directly or indirectly 
participate or intervene in any political campaign on behalf of or 
in opposition to any candidate for public office; and
				(iii)  does not directly or indirectly 
contribute to a political action committee that makes expenditures 
to any candidates for public office.
	SECTION 2.  Section 84.007, Civil Practice and Remedies 
Code, is amended by adding Subsection (h) to read as follows:
	(h)  This chapter does not apply to:                                    
		(1)  a statewide trade association that represents 
local chambers of commerce; or
		(2)  a cosponsor of an event or activity with a local 
chamber of commerce unless the cosponsor is a charitable 
organization under this chapter.
	SECTION 3.  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.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 360 passed the Senate on 
March 11, 2003, by a viva-voce vote; and that the Senate concurred 
in House amendment on May 6, 2003, by a viva-voce vote.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 360 passed the House, with 
amendment, on May 1, 2003, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor