By: Williams S.B. No. 833
A BILL TO BE ENTITLED
AN ACT
relating to the application of the Charitable Immunity and
Liability Act of 1987 to alumni associations and on-campus
organizations.
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, fraternities, sororities, and secret societies,
[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 fraternities, sororities, and
secret societies, [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.
SECTION 2. This Act takes effect September 1, 2003, and
applies only to a cause of action that accrues on or after that
date. A cause of action that accrued before the effective date of
this Act is governed by the law applicable to the action immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.