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A BILL TO BE ENTITLED
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AN ACT
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relating to immunity and liability issues regarding unincorporated |
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charitable organizations, charitable organizations that utilize |
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self-insured retentions in their insurance coverage, and |
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charitable organizations that utilize Lloyd's plans and indemnity |
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policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subdivision (1), Section 84.003, Civil Practice |
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and Remedies 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 entity [corporation,
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foundation, community chest, 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. Subsection (g), Section 84.007, Civil Practice |
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and Remedies 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 of insurance, a plan providing for |
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self-insured retention, a Lloyd's plan, an indemnity policy, or |
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other plan of insurance authorized by statute and may be satisfied |
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by the purchase of a $1,000,000 bodily injury and property damage |
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combined single limit policy. For the purposes of this chapter, |
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coverage amounts are inclusive of a self-insured retention, a |
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Lloyd's plan, or an indemnity policy. Nothing in this chapter shall |
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limit liability of any insurer or insurance plan in an action under |
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Chapter 21, Insurance Code, or in an action for bad faith conduct, |
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breach of fiduciary duty, or negligent failure to settle a claim. |
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SECTION 3. 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. |