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A BILL TO BE ENTITLED
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AN ACT
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relating to organizations that are covered by the Charitable |
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Immunity and Liability Act of 1987. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 84.003(1), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(1) "Charitable organization" means: |
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(A) any organization exempt from federal income |
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tax under Section 501(a) of the Internal Revenue Code of 1986 by |
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being listed as an exempt organization in Section 501(c)(3) or |
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501(c)(4) of the code, if it is a [nonprofit] corporation, |
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foundation, community chest, church, or fund organized and operated |
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exclusively for charitable, religious, prevention of cruelty to |
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children or animals, youth sports and youth recreational, |
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neighborhood crime prevention or patrol, fire protection or |
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prevention, emergency medical or hazardous material response |
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services, or educational purposes, including private primary or |
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secondary schools if accredited by a member association of the |
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Texas Private School Accreditation Commission but excluding |
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fraternities, sororities, and secret societies, or is organized and |
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operated exclusively for the promotion of social welfare by being |
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primarily engaged in promoting the common good and general welfare |
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of the people in a community; |
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(B) any bona fide charitable, religious, |
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prevention of cruelty to children or animals, youth sports and |
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youth recreational, neighborhood crime prevention or patrol, or |
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educational organization, excluding fraternities, sororities, and |
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secret societies, or other organization organized and operated |
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exclusively for the promotion of social welfare by being primarily |
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engaged in promoting the common good and general welfare of the |
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people in a community, and that: |
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(i) is organized and operated exclusively |
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for one or more of the above purposes; |
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(ii) does not engage in activities which in |
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themselves are not in furtherance of the purpose or purposes; |
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(iii) does not directly or indirectly |
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participate or intervene in any political campaign on behalf of or |
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in opposition to any candidate for public office; |
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(iv) dedicates its assets to achieving the |
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stated purpose or purposes of the organization; |
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(v) does not allow any part of its net |
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assets on dissolution of the organization to inure to the benefit of |
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any group, shareholder, or individual; and |
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(vi) normally receives more than one-third |
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of its support in any year from private or public gifts, grants, |
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contributions, or membership fees; |
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(C) a homeowners association as defined by |
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Section 528(c) of the Internal Revenue Code of 1986 or which is |
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exempt from federal income tax under Section 501(a) of the Internal |
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Revenue Code of 1986 by being listed as an exempt organization in |
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Section 501(c)(4) of the code; |
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(D) a volunteer center, as that term is defined |
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by Section 411.126, Government Code; or |
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(E) a local chamber of commerce that: |
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(i) is exempt from federal income tax under |
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Section 501(a) of the Internal Revenue Code of 1986 by being listed |
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as an exempt organization in Section 501(c)(6) of the code; |
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(ii) does not directly or indirectly |
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participate or intervene in any political campaign on behalf of or |
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in opposition to any candidate for public office; and |
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(iii) does not directly or indirectly |
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contribute to a political action committee that makes expenditures |
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to any candidates for public office. |
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SECTION 2. Section 84.007(g), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(g) Sections 84.005 and 84.006 of this Act do not apply to |
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any charitable organization that does not have liability insurance |
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coverage in effect on any act or omission to which this chapter |
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applies. The coverage shall apply to the acts or omissions of the |
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organization and its employees and volunteers and be in the amount |
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of at least $500,000 for each person and $1,000,000 for each single |
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occurrence for death or bodily injury and $100,000 for each single |
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occurrence for injury to or destruction of property. The coverage |
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may be provided under a contract for [of] insurance, a plan |
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providing for self-insured retention that the charitable |
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organization has fully paid or establishes to a court that it is |
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capable of fully and immediately paying, a Lloyd's plan, an |
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indemnity policy to which all requirements for payment have been or |
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will be met, or other plan of insurance authorized by statute and |
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may be satisfied by the purchase of a $1,000,000 bodily injury and |
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property damage combined single limit policy. For the purposes of |
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this chapter, coverage amounts are inclusive of a self-insured |
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retention, a Lloyd's plan, or an indemnity policy to which all |
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requirements for payment have been or will be met. Nothing in this |
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chapter shall limit liability of any insurer or insurance plan in an |
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action under Chapter 541 [21], Insurance Code, or in an action for |
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bad faith conduct, breach of fiduciary duty, or negligent failure |
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to settle a claim. |
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SECTION 3. The change in law made by this Act applies only |
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to a cause of action that accrues on or after the effective date of |
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this Act. A cause of action that accrues before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |