By:  Armbrister                                        S.B. No. 798
       73R5360 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to liability insurance and similar coverage for political
    1-3  subdivisions and for certain governmental officials and employees.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 41.012, Government Code, is amended to
    1-6  read as follows:
    1-7        Sec. 41.012.  Liability Insurance.  A county or district
    1-8  attorney may purchase, for himself and for his staff members,
    1-9  liability insurance, or similar coverage from a governmental pool
   1-10  operating under Chapter 119, Local Government Code, or a
   1-11  self-insurance fund or risk retention group operating under Chapter
   1-12  1084, Acts of the 70th Legislature, Regular Session, 1987 (Article
   1-13  715c, Vernon's Texas Civil Statutes), to insure against claims
   1-14  arising from the performance of his official duties from state or
   1-15  county funds appropriated or allocated for the expenses of his
   1-16  office or from accounts maintained by the county or district
   1-17  attorney, including but not limited to the fund created by charges
   1-18  assessed by the county or district attorney in connection with the
   1-19  collection of "insufficient fund" negotiable instruments.
   1-20        SECTION 2.  Section 51.302(c), Government Code, is amended to
   1-21  read as follows:
   1-22        (c)  Each district clerk shall obtain an insurance policy or
   1-23  similar coverage from a governmental pool operating under Chapter
   1-24  119, Local Government Code, to cover the district clerk and any
    2-1  deputy clerk against liabilities incurred through errors or
    2-2  omissions in the performance of official duties.  The amount of the
    2-3  policy must be in an amount equal to the maximum amount of fees
    2-4  collected in any year during the term of office immediately
    2-5  preceding the term for which the insurance is obtained, except that
    2-6  the amount of the policy or other coverage document may not be for
    2-7  less than $10,000 nor more than $700,000.  If the policy or other
    2-8  coverage document provides coverage for other county officials, the
    2-9  amount of the policy must be at least $1 million.
   2-10        SECTION 3.  Sections 82.003(a) and (b), Local Government
   2-11  Code, are amended to read as follows:
   2-12        (a)  The county clerk shall obtain an insurance policy or
   2-13  similar coverage from a governmental pool operating under Chapter
   2-14  119 covering the clerk and each deputy clerk against liability
   2-15  incurred through errors and omissions in the performance of their
   2-16  official duties.
   2-17        (b)  The policy or other coverage document must be in an
   2-18  amount equal to the maximum amount of fees collected in any year
   2-19  during the term of office preceding the term for which the policy
   2-20  is to be obtained.  However, the policy or other coverage document
   2-21  must be in an amount of at least $10,000 but is not required to
   2-22  exceed $500,000.  If the policy or other coverage document provides
   2-23  coverage for other county officials, the policy or other coverage
   2-24  document must be in an amount of at least $1 million.
   2-25        SECTION 4.  Section 119.002(a), Local Government Code, is
   2-26  amended to read as follows:
   2-27        (a)  On the adoption of a resolution by the commissioners
    3-1  courts of at least 10 counties in this state, the County Government
    3-2  Risk Management Pool is created to insure each county in this state
    3-3  that purchases coverage in the pool against liability for the <that
    3-4  county's> acts or omissions of that county and the officials and
    3-5  employees of that county under the law.
    3-6        SECTION 5.  Chapter 119, Local Government Code, is amended by
    3-7  adding Section 119.009 to read as follows:
    3-8        Sec. 119.009.  PARTICIPATION BY OTHER POLITICAL SUBDIVISIONS.
    3-9  (a)  A political subdivision other than a county may participate in
   3-10  the County Government Risk Management Pool established under this
   3-11  chapter.
   3-12        (b)  A political subdivision participating in the pool under
   3-13  this section is entitled to the same coverage provided to a county
   3-14  and may participate under the same terms and conditions as a
   3-15  county.
   3-16        SECTION 6.  Section 154.010(a), Local Government Code, is
   3-17  amended to read as follows:
   3-18        (a)  A warrant may be drawn on either the general fund or
   3-19  salary fund to pay any insurance premium or self-insurance pool
   3-20  contribution for the purpose of providing insurance or other
   3-21  coverage for the liabilities of an official or employee of the
   3-22  county, a district attorney who has all or part of the county
   3-23  within the district attorney's jurisdiction, or an official of any
   3-24  special purpose district located, in whole or in part, in the
   3-25  county, arising from the performance of an official duty or a duty
   3-26  of employment as authorized by Section 157.041 or Chapter 119,
   3-27  Local Government Code, or by Chapter 1084, Acts of the 70th
    4-1  Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
    4-2  Civil Statutes), or by the <The> Interlocal Cooperation Act
    4-3  (Chapter 791, Government Code <(Article 4413(32c), Vernon's Texas
    4-4  Civil Statutes>).
    4-5        SECTION 7.  Section 157.041, Local Government Code, is
    4-6  amended by amending Subsection (a) and adding Subsection (d) to
    4-7  read as follows:
    4-8        (a)  The commissioners court of a county may obtain insurance
    4-9  or similar coverage from a governmental pool operating under
   4-10  Chapter 119 or a self-insurance fund or risk retention group
   4-11  operating under Chapter 1084, Acts of the 70th Legislature, Regular
   4-12  Session, 1987 (Article 715c, Vernon's Texas Civil Statutes), for
   4-13  <insure> an official or employee of the county<,> including county
   4-14  and precinct peace officers designated by the commissioners court,
   4-15  a district attorney who has all or part of the county within the
   4-16  district attorney's jurisdiction, or an official of any special
   4-17  purpose district located, in whole or in part, in the county,
   4-18  against liability arising from the performance of official duties
   4-19  or duties of employment.
   4-20        (d)  Coverage obtained from a pool operating under Chapter
   4-21  119 or a self-insurance fund or risk retention group operating
   4-22  under Chapter 1084, Acts of the 70th Legislature, Regular Session,
   4-23  1987 (Article 715c, Vernon's Texas Civil Statutes), is not
   4-24  insurance and, except as provided by Subsections (b) and (c), is
   4-25  not subject to regulation by the Texas Department of Insurance.
   4-26        SECTION 8.  The importance of this legislation and the
   4-27  crowded condition of the calendars in both houses create an
    5-1  emergency and an imperative public necessity that the
    5-2  constitutional rule requiring bills to be read on three several
    5-3  days in each house be suspended, and this rule is hereby suspended,
    5-4  and that this Act take effect and be in force from and after its
    5-5  passage, and it is so enacted.