HBA-LCA, ATS H.B. 1990 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1990
By: Hardcastle
Civil Practices
4/26/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a director or officer of a non-profit organization may be held
personally liable for actions taken on behalf of the organization.  H.B.
1990 removes such personal liability risk for certain individuals making
such actions in good faith.  Affected organizations include business
leagues, chambers of commerce, and other non-profit organizations as
designated under Section 501(c)(6), Internal Revenue Code.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 84.003(1), Civil Practice and Remedies Code, to
include in the definition of "charitable organization" any organization
exempt from federal income tax under Section 501(a) of the Internal Revenue
Code of 1986, and its subsequent amendments, by being listed as an exempt
organization in Section 501(c)(6) of the Internal Revenue Code of 1986. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Emergency clause.