WILLIAM DONALD SCHAEFER, Governor                   Ch. 459

(2)  "Athletic club" means a club organized and
operated exclusively for recreational purposes, that is exempt
from taxation under § 501(c)(7) of the Internal Revenue Code of
1954.

(3)  "Charitable organization" means an organization,
institution, association, society, or corporation that is exempt
from taxation under § 501(c)(3) of the Internal Revenue Code of
1954.

(4)  "Community association" means a nonprofit
association, corporation, or other organization comprised of
residents of a community, which is operated exclusively for the
promotion of social welfare and general "neighborhood improvement
and enhancement.

(5)  "Homeowners' association" means a nonprofit
organization comprised of property owners in a subdivision or
group of subdivisions whose purpose is to represent the mutual
interest of the property owners regarding the construction,
protection, and maintenance of the commonly owned or used
property and improvements.

(6)  "Public entity" means any political subdivision
or unit of State or local government, including any nonprofit or
nonstock corporation that is exempt from taxation under §
501(c)(3) or § 501(c)(4) of the Internal Revenue Code of 1954 and
receives 50 percent or more of its annual operating budget from
the State or local government.

(b)  Public entities may pool together for the purpose of
purchasing casualty or property insurance or self-insuring
casualty or property risks.

(c)  Athletic clubs, charitable organizations, community
associations, and homeowners' associations may pool together for
the purpose of purchasing casualty or property insurance.

(D) (1) IN THIS SUBSECTION, "LOCAL GOVERNMENT" MEANS:

(I)  ANY MUNICIPAL CORPORATION SUBJECT TO THE
PROVISIONS OF ARTICLE 23A OF THE CODE;

(II)  ANY COUNTY SUBJECT TO THE PROVISIONS OF
ARTICLE 25, ARTICLE 25A, OR ARTICLE 25B OF THE CODE; OR

(III)  THE MAYOR AND CITY COUNCIL OF BALTIMORE.

(2) A LOCAL GOVERNMENT MAY ENTER INTO AN AGREEMENT TO
CAPITALIZE OR OTHERWISE FUND AN INSURANCE POOL ESTABLISHED UNDER
THIS SECTION.

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