By: Armbrister S.B. No. 798
A BILL TO BE ENTITLED
AN ACT
1-1 relating to liability insurance and similar coverage for political
1-2 subdivisions and for certain governmental officials and employees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 41.012, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 41.012. Liability Insurance. A county or district
1-7 attorney may purchase, for himself and for his staff members,
1-8 liability insurance, or similar coverage from a governmental pool
1-9 operating under Chapter 119, Local Government Code, or a
1-10 self-insurance fund or risk retention group operating under Chapter
1-11 1084, Acts of the 70th Legislature, Regular Session, 1987 (Article
1-12 715c, Vernon's Texas Civil Statutes), to insure against claims
1-13 arising from the performance of his official duties from state or
1-14 county funds appropriated or allocated for the expenses of his
1-15 office or from accounts maintained by the county or district
1-16 attorney, including but not limited to the fund created by charges
1-17 assessed by the county or district attorney in connection with the
1-18 collection of "insufficient fund" negotiable instruments.
1-19 SECTION 2. Subsection (c), Section 51.302, Government Code,
1-20 is amended to read as follows:
1-21 (c) Each district clerk shall obtain an insurance policy or
1-22 similar coverage from a governmental pool operating under Chapter
1-23 119, Local Government Code, to cover the district clerk and any
1-24 deputy clerk against liabilities incurred through errors or
2-1 omissions in the performance of official duties. The amount of the
2-2 policy must be in an amount equal to the maximum amount of fees
2-3 collected in any year during the term of office immediately
2-4 preceding the term for which the insurance is obtained, except that
2-5 the amount of the policy or other coverage document may not be for
2-6 less than $10,000 nor more than $700,000. If the policy or other
2-7 coverage document provides coverage for other county officials, the
2-8 amount of the policy must be at least $1 million.
2-9 SECTION 3. Subsections (a) and (b), Section 82.003, Local
2-10 Government Code, are amended to read as follows:
2-11 (a) The county clerk shall obtain an insurance policy or
2-12 similar coverage from a governmental pool operating under Chapter
2-13 119 covering the clerk and each deputy clerk against liability
2-14 incurred through errors and omissions in the performance of their
2-15 official duties.
2-16 (b) The policy or other coverage document must be in an
2-17 amount equal to the maximum amount of fees collected in any year
2-18 during the term of office preceding the term for which the policy
2-19 is to be obtained. However, the policy or other coverage document
2-20 must be in an amount of at least $10,000 but is not required to
2-21 exceed $500,000. If the policy or other coverage document provides
2-22 coverage for other county officials, the policy or other coverage
2-23 document must be in an amount of at least $1 million.
2-24 SECTION 4. Subsection (a), Section 119.002, Local Government
2-25 Code, is amended to read as follows:
2-26 (a) On the adoption of a resolution by the commissioners
2-27 courts of at least 10 counties in this state, the County Government
3-1 Risk Management Pool is created to insure each county in this state
3-2 that purchases coverage in the pool against liability for the <that
3-3 county's> acts or omissions of that county and the officials and
3-4 employees of that county under the law.
3-5 SECTION 5. Chapter 119, Local Government Code, is amended by
3-6 adding Section 119.009 to read as follows:
3-7 Sec. 119.009. PARTICIPATION BY OTHER POLITICAL SUBDIVISIONS.
3-8 (a) A political subdivision other than a county may participate in
3-9 the County Government Risk Management Pool established under this
3-10 chapter.
3-11 (b) A political subdivision participating in the pool under
3-12 this section is entitled to the same coverage provided to a county
3-13 and may participate under the same terms and conditions as a
3-14 county.
3-15 SECTION 6. Subsection (a), Section 154.010, Local Government
3-16 Code, is amended to read as follows:
3-17 (a) A warrant may be drawn on either the general fund or
3-18 salary fund to pay any insurance premium or self-insurance pool
3-19 contribution for the purpose of providing insurance or other
3-20 coverage for the liabilities of an official or employee of the
3-21 county, a district attorney who has all or part of the county
3-22 within the district attorney's jurisdiction, or an official of any
3-23 special purpose district located, in whole or in part, in the
3-24 county arising from the performance of an official duty or a duty
3-25 of employment as authorized by Section 157.041 or Chapter 119,
3-26 Local Government Code, or by Chapter 1084, Acts of the 70th
3-27 Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
4-1 Civil Statutes), or by the <The> Interlocal Cooperation Act
4-2 (Chapter 791, Government Code <(Article 4413(32c), Vernon's Texas
4-3 Civil Statutes>).
4-4 SECTION 7. Section 157.041, Local Government Code, is
4-5 amended by amending Subsection (a) and adding Subsection (d) to
4-6 read as follows:
4-7 (a) The commissioners court of a county may obtain insurance
4-8 or similar coverage from a governmental pool operating under
4-9 Chapter 119 or a self-insurance fund or risk retention group
4-10 operating under Chapter 1084, Acts of the 70th Legislature, Regular
4-11 Session, 1987 (Article 715c, Vernon's Texas Civil Statutes), for
4-12 <insure> an official or employee of the county<,> including county
4-13 and precinct peace officers designated by the commissioners court,
4-14 a district attorney who has all or part of the county within the
4-15 district attorney's jurisdiction, or an official of any special
4-16 purpose district located, in whole or in part, in the county
4-17 against liability arising from the performance of official duties
4-18 or duties of employment.
4-19 (d) Coverage obtained from a pool operating under Chapter
4-20 119 or a self-insurance fund or risk retention group operating
4-21 under Chapter 1084, Acts of the 70th Legislature, Regular Session,
4-22 1987 (Article 715c, Vernon's Texas Civil Statutes), is not
4-23 insurance and, except as provided by Subsections (b) and (c), is
4-24 not subject to regulation by the Texas Department of Insurance.
4-25 SECTION 8. The importance of this legislation and the
4-26 crowded condition of the calendars in both houses create an
4-27 emergency and an imperative public necessity that the
5-1 constitutional rule requiring bills to be read on three several
5-2 days in each house be suspended, and this rule is hereby suspended,
5-3 and that this Act take effect and be in force from and after its
5-4 passage, and it is so enacted.