Relating to organizations that are covered by the Charitable Immunity and Liability Act of 1987.
With the amendments proposed in SB1846, there is a specific emphasis on the requirement for liability insurance for charitable organizations. It mandates that organizations must have liability insurance coverage with minimum requirements of $500,000 per person and $1,000,000 per occurrence for bodily injuries, as well as $100,000 for damage to property. This new requirement seeks to ensure that members of the public can claim compensation for injuries or damages even if the organization is protected under the Charitable Immunity and Liability Act. The bill represents a significant shift toward increasing liability coverage standards for organizations involved in charitable activities, which could potentially lead to increased operational costs for these entities.
SB1846, titled 'An Act relating to organizations that are covered by the Charitable Immunity and Liability Act of 1987,' specifically amends the Civil Practice and Remedies Code to clarify and expand the definition of 'charitable organizations.' The bill maintains the intention of safeguarding charitable organizations from certain liabilities, provided they adhere to specified operational standards, such as not partaking in political campaigns or allowing profit-making benefits to accrue to individuals from their operations. This bill notably affects organizations that meet the 501(c)(3) and 501(c)(4) designations under the federal tax code, thereby broadening the scope of entities eligible for immunity under Texas law.
Opposition has emerged around the bill's potential imposition of financial barriers for smaller charitable organizations which may struggle with the requirement to carry liability insurance. Critics argue that the added financial burden could deter volunteerism and reduce the number of smaller nonprofits capable of offering vital community services. Proponents of the bill, however, contend that this increased coverage will protect communities and provide a safety net for individuals adversely affected by the actions of such organizations. The dialogue around SB1846 encapsulates a balancing act between protecting public interests and ensuring that charitable organizations can effectively operate without undue financial strain.