82R17334 AJA-F
 
  By: Lewis H.B. No. 2508
 
  Substitute the following for H.B. No. 2508:
 
  By:  Madden C.S.H.B. No. 2508
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to organizations that are covered by the Charitable
  Immunity and Liability Act of 1987.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 84.003(1), 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, church, 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, including private primary or
  secondary schools if accredited by a member association of the
  Texas Private School Accreditation Commission but excluding
  fraternities, sororities, and secret societies, 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, 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;
                     (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(g), Civil Practice and Remedies
  Code, is amended to read as follows:
         (g)  Sections 84.005 and 84.006 of this Act do not apply to
  any charitable organization that does not have liability insurance
  coverage in effect on any act or omission to which this chapter
  applies. The coverage shall apply to the acts or omissions of the
  organization and its employees and volunteers and be in the amount
  of at least $500,000 for each person and $1,000,000 for each single
  occurrence for death or bodily injury and $100,000 for each single
  occurrence for injury to or destruction of property. The coverage
  may be provided under a contract for [of] insurance, a plan
  providing for self-insured retention that the charitable
  organization has fully paid or establishes to a court that it is
  capable of fully and immediately paying, a Lloyd's plan, an
  indemnity policy to which all requirements for payment have been or
  will be met, or other plan of insurance authorized by statute and
  may be satisfied by the purchase of a $1,000,000 bodily injury and
  property damage combined single limit policy. For the purposes of
  this chapter, coverage amounts are inclusive of a self-insured
  retention, a Lloyd's plan, or an indemnity policy to which all
  requirements for payment have been or will be met. Nothing in this
  chapter shall limit liability of any insurer or insurance plan in an
  action under Chapter 541 [21], Insurance Code, or in an action for
  bad faith conduct, breach of fiduciary duty, or negligent failure
  to settle a claim.
         SECTION 3.  The change in law made by this Act applies only
  to a cause of action that accrues on or after the effective date of
  this Act. A cause of action that accrues before the effective date
  of this Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.