Texas 2011 - 82nd Regular

Texas House Bill HB2508 Compare Versions

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Old	New	Differences
1	1	82R17334 AJA-F
2	2	By: Lewis H.B. No. 2508
3	3	Substitute the following for H.B. No. 2508:
4	4	By: Madden C.S.H.B. No. 2508
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to organizations that are covered by the Charitable
10	10	Immunity and Liability Act of 1987.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 84.003(1), Civil Practice and Remedies
13	13	Code, is amended to read as follows:
14	14	(1) "Charitable organization" means:
15	15	(A) any organization exempt from federal income
16	16	tax under Section 501(a) of the Internal Revenue Code of 1986 by
17	17	being listed as an exempt organization in Section 501(c)(3) or
18	18	501(c)(4) of the code, if it is a [nonprofit] corporation,
19	19	foundation, community chest, church, or fund organized and operated
20	20	exclusively for charitable, religious, prevention of cruelty to
21	21	children or animals, youth sports and youth recreational,
22	22	neighborhood crime prevention or patrol, fire protection or
23	23	prevention, emergency medical or hazardous material response
24	24	services, or educational purposes, including private primary or
25	25	secondary schools if accredited by a member association of the
26	26	Texas Private School Accreditation Commission but excluding
27	27	fraternities, sororities, and secret societies, or is organized and
28	28	operated exclusively for the promotion of social welfare by being
29	29	primarily engaged in promoting the common good and general welfare
30	30	of the people in a community;
31	31	(B) any bona fide charitable, religious,
32	32	prevention of cruelty to children or animals, youth sports and
33	33	youth recreational, neighborhood crime prevention or patrol, or
34	34	educational organization, excluding fraternities, sororities, and
35	35	secret societies, or other organization organized and operated
36	36	exclusively for the promotion of social welfare by being primarily
37	37	engaged in promoting the common good and general welfare of the
38	38	people in a community, and that:
39	39	(i) is organized and operated exclusively
40	40	for one or more of the above purposes;
41	41	(ii) does not engage in activities which in
42	42	themselves are not in furtherance of the purpose or purposes;
43	43	(iii) does not directly or indirectly
44	44	participate or intervene in any political campaign on behalf of or
45	45	in opposition to any candidate for public office;
46	46	(iv) dedicates its assets to achieving the
47	47	stated purpose or purposes of the organization;
48	48	(v) does not allow any part of its net
49	49	assets on dissolution of the organization to inure to the benefit of
50	50	any group, shareholder, or individual; and
51	51	(vi) normally receives more than one-third
52	52	of its support in any year from private or public gifts, grants,
53	53	contributions, or membership fees;
54	54	(C) a homeowners association as defined by
55	55	Section 528(c) of the Internal Revenue Code of 1986 or which is
56	56	exempt from federal income tax under Section 501(a) of the Internal
57	57	Revenue Code of 1986 by being listed as an exempt organization in
58	58	Section 501(c)(4) of the code;
59	59	(D) a volunteer center, as that term is defined
60	60	by Section 411.126, Government Code; or
61	61	(E) a local chamber of commerce that:
62	62	(i) is exempt from federal income tax under
63	63	Section 501(a) of the Internal Revenue Code of 1986 by being listed
64	64	as an exempt organization in Section 501(c)(6) of the code;
65	65	(ii) does not directly or indirectly
66	66	participate or intervene in any political campaign on behalf of or
67	67	in opposition to any candidate for public office; and
68	68	(iii) does not directly or indirectly
69	69	contribute to a political action committee that makes expenditures
70	70	to any candidates for public office.
71	71	SECTION 2. Section 84.007(g), Civil Practice and Remedies
72	72	Code, is amended to read as follows:
73	73	(g) Sections 84.005 and 84.006 of this Act do not apply to
74	74	any charitable organization that does not have liability insurance
75	75	coverage in effect on any act or omission to which this chapter
76	76	applies. The coverage shall apply to the acts or omissions of the
77	77	organization and its employees and volunteers and be in the amount
78	78	of at least $500,000 for each person and $1,000,000 for each single
79	79	occurrence for death or bodily injury and $100,000 for each single
80	80	occurrence for injury to or destruction of property. The coverage
81	81	may be provided under a contract for [of] insurance, a plan
82	82	providing for self-insured retention that the charitable
83	83	organization has fully paid or establishes to a court that it is
84	84	capable of fully and immediately paying, a Lloyd's plan, an
85	85	indemnity policy to which all requirements for payment have been or
86	86	will be met, or other plan of insurance authorized by statute and
87	87	may be satisfied by the purchase of a $1,000,000 bodily injury and
88	88	property damage combined single limit policy. For the purposes of
89	89	this chapter, coverage amounts are inclusive of a self-insured
90	90	retention, a Lloyd's plan, or an indemnity policy to which all
91	91	requirements for payment have been or will be met. Nothing in this
92	92	chapter shall limit liability of any insurer or insurance plan in an
93	93	action under Chapter 541 [21], Insurance Code, or in an action for
94	94	bad faith conduct, breach of fiduciary duty, or negligent failure
95	95	to settle a claim.
96	96	SECTION 3. The change in law made by this Act applies only
97	97	to a cause of action that accrues on or after the effective date of
98	98	this Act. A cause of action that accrues before the effective date
99	99	of this Act is governed by the law in effect immediately before the
100	100	effective date of this Act, and that law is continued in effect for
101	101	that purpose.
102	102	SECTION 4. This Act takes effect immediately if it receives
103	103	a vote of two-thirds of all the members elected to each house, as
104	104	provided by Section 39, Article III, Texas Constitution. If this
105	105	Act does not receive the vote necessary for immediate effect, this
106	106	Act takes effect September 1, 2011.