Texas 2011 - 82nd Regular

Texas Senate Bill SB1846 Compare Versions

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1	1	By: Lucio S.B. No. 1846
2	2	(Lewis)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to organizations that are covered by the Charitable
8	8	Immunity and Liability Act of 1987.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subdivision 1, Section 84.003, Civil Practice
11	11	and Remedies Code, is amended to read as follows:
12	12	(1) "Charitable organization" means:
13	13	(A) any organization exempt from federal income
14	14	tax under Section 501(a) of the Internal Revenue Code of 1986 by
15	15	being listed as an exempt organization in Section 501(c)(3) or
16	16	501(c)(4) of the code, if it is a [nonprofit] corporation,
17	17	foundation, community chest, church, or fund organized and operated
18	18	exclusively for charitable, religious, prevention of cruelty to
19	19	children or animals, youth sports and youth recreational,
20	20	neighborhood crime prevention or patrol, fire protection or
21	21	prevention, emergency medical or hazardous material response
22	22	services, or educational purposes, including private primary or
23	23	secondary schools if accredited by a member association of the
24	24	Texas Private School Accreditation Commission but excluding
25	25	fraternities, sororities, and secret societies, or is organized and
26	26	operated exclusively for the promotion of social welfare by being
27	27	primarily engaged in promoting the common good and general welfare
28	28	of the people in a community;
29	29	(B) any bona fide charitable, religious,
30	30	prevention of cruelty to children or animals, youth sports and
31	31	youth recreational, neighborhood crime prevention or patrol, or
32	32	educational organization, excluding fraternities, sororities, and
33	33	secret societies, or other organization organized and operated
34	34	exclusively for the promotion of social welfare by being primarily
35	35	engaged in promoting the common good and general welfare of the
36	36	people in a community, and that:
37	37	(i) is organized and operated exclusively
38	38	for one or more of the above purposes;
39	39	(ii) does not engage in activities which in
40	40	themselves are not in furtherance of the purpose or purposes;
41	41	(iii) does not directly or indirectly
42	42	participate or intervene in any political campaign on behalf of or
43	43	in opposition to any candidate for public office;
44	44	(iv) dedicates its assets to achieving the
45	45	stated purpose or purposes of the organization;
46	46	(v) does not allow any part of its net
47	47	assets on dissolution of the organization to inure to the benefit of
48	48	any group, shareholder, or individual; and
49	49	(vi) normally receives more than one-third
50	50	of its support in any year from private or public gifts, grants,
51	51	contributions, or membership fees;
52	52	(C) a homeowners association as defined by
53	53	Section 528(c) of the Internal Revenue Code of 1986 or which is
54	54	exempt from federal income tax under Section 501(a) of the Internal
55	55	Revenue Code of 1986 by being listed as an exempt organization in
56	56	Section 501(c)(4) of the code;
57	57	(D) a volunteer center, as that term is defined
58	58	by Section 411.126, Government Code; or
59	59	(E) a local chamber of commerce that:
60	60	(i) is exempt from federal income tax under
61	61	Section 501(a) of the Internal Revenue Code of 1986 by being listed
62	62	as an exempt organization in Section 501(c)(6) of the code;
63	63	(ii) does not directly or indirectly
64	64	participate or intervene in any political campaign on behalf of or
65	65	in opposition to any candidate for public office; and
66	66	(iii) does not directly or indirectly
67	67	contribute to a political action committee that makes expenditures
68	68	to any candidates for public office.
69	69	SECTION 2. Subsection (g), Section 84.007, Civil Practice
70	70	and Remedies Code, is amended to read as follows:
71	71	(g) Sections 84.005 and 84.006 of this Act do not apply to
72	72	any charitable organization that does not have liability insurance
73	73	coverage in effect on any act or omission to which this chapter
74	74	applies. The coverage shall apply to the acts or omissions of the
75	75	organization and its employees and volunteers and be in the amount
76	76	of at least $500,000 for each person and $1,000,000 for each single
77	77	occurrence for death or bodily injury and $100,000 for each single
78	78	occurrence for injury to or destruction of property. The coverage
79	79	may be provided under a contract for [of] insurance, a plan
80	80	providing for self-insured retention that the charitable
81	81	organization has fully paid or establishes to a court that it is
82	82	capable of fully and immediately paying, a Lloyd's plan, an
83	83	indemnity policy to which all requirements for payment have been or
84	84	will be met, or other plan of insurance authorized by statute and
85	85	may be satisfied by the purchase of a $1,000,000 bodily injury and
86	86	property damage combined single limit policy. For the purposes of
87	87	this chapter, coverage amounts are inclusive of a self-insured
88	88	retention, a Lloyd's plan, or an indemnity policy to which all
89	89	requirements for payment have been or will be met. Nothing in this
90	90	chapter shall limit liability of any insurer or insurance plan in an
91	91	action under Chapter 541 [21], Insurance Code, or in an action for
92	92	bad faith conduct, breach of fiduciary duty, or negligent failure
93	93	to settle a claim.
94	94	SECTION 3. The change in law made by this Act applies only
95	95	to a cause of action that accrues on or after the effective date of
96	96	this Act. A cause of action that accrues before the effective date
97	97	of this Act is governed by the law in effect immediately before the
98	98	effective date of this Act, and that law is continued in effect for
99	99	that purpose.
100	100	SECTION 4. This Act takes effect immediately if it receives
101	101	a vote of two-thirds of all the members elected to each house, as
102	102	provided by Section 39, Article III, Texas Constitution. If this
103	103	Act does not receive the vote necessary for immediate effect, this
104	104	Act takes effect September 1, 2011.