1-1 By: Armbrister S.B. No. 798
1-2 (In the Senate - Filed March 10, 1993; March 11, 1993, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 15, 1993, reported favorably by the following
1-5 vote: Yeas 8, Nays 0; April 15, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Armbrister x
1-9 Leedom x
1-10 Carriker x
1-11 Henderson x
1-12 Madla x
1-13 Moncrief x
1-14 Patterson x
1-15 Rosson x
1-16 Shapiro x
1-17 Wentworth x
1-18 Whitmire x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to liability insurance and similar coverage for political
1-22 subdivisions and for certain governmental officials and employees.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Section 41.012, Government Code, is amended to
1-25 read as follows:
1-26 Sec. 41.012. Liability Insurance. A county or district
1-27 attorney may purchase, for himself and for his staff members,
1-28 liability insurance, or similar coverage from a governmental pool
1-29 operating under Chapter 119, Local Government Code, or a
1-30 self-insurance fund or risk retention group operating under Chapter
1-31 1084, Acts of the 70th Legislature, Regular Session, 1987 (Article
1-32 715c, Vernon's Texas Civil Statutes), to insure against claims
1-33 arising from the performance of his official duties from state or
1-34 county funds appropriated or allocated for the expenses of his
1-35 office or from accounts maintained by the county or district
1-36 attorney, including but not limited to the fund created by charges
1-37 assessed by the county or district attorney in connection with the
1-38 collection of "insufficient fund" negotiable instruments.
1-39 SECTION 2. Subsection (c), Section 51.302, Government Code,
1-40 is amended to read as follows:
1-41 (c) Each district clerk shall obtain an insurance policy or
1-42 similar coverage from a governmental pool operating under Chapter
1-43 119, Local Government Code, to cover the district clerk and any
1-44 deputy clerk against liabilities incurred through errors or
1-45 omissions in the performance of official duties. The amount of the
1-46 policy must be in an amount equal to the maximum amount of fees
1-47 collected in any year during the term of office immediately
1-48 preceding the term for which the insurance is obtained, except that
1-49 the amount of the policy or other coverage document may not be for
1-50 less than $10,000 nor more than $700,000. If the policy or other
1-51 coverage document provides coverage for other county officials, the
1-52 amount of the policy must be at least $1 million.
1-53 SECTION 3. Subsections (a) and (b), Section 82.003, Local
1-54 Government Code, are amended to read as follows:
1-55 (a) The county clerk shall obtain an insurance policy or
1-56 similar coverage from a governmental pool operating under Chapter
1-57 119 covering the clerk and each deputy clerk against liability
1-58 incurred through errors and omissions in the performance of their
1-59 official duties.
1-60 (b) The policy or other coverage document must be in an
1-61 amount equal to the maximum amount of fees collected in any year
1-62 during the term of office preceding the term for which the policy
1-63 is to be obtained. However, the policy or other coverage document
1-64 must be in an amount of at least $10,000 but is not required to
1-65 exceed $500,000. If the policy or other coverage document provides
1-66 coverage for other county officials, the policy or other coverage
1-67 document must be in an amount of at least $1 million.
1-68 SECTION 4. Subsection (a), Section 119.002, Local Government
2-1 Code, is amended to read as follows:
2-2 (a) On the adoption of a resolution by the commissioners
2-3 courts of at least 10 counties in this state, the County Government
2-4 Risk Management Pool is created to insure each county in this state
2-5 that purchases coverage in the pool against liability for the <that
2-6 county's> acts or omissions of that county and the officials and
2-7 employees of that county under the law.
2-8 SECTION 5. Chapter 119, Local Government Code, is amended by
2-9 adding Section 119.009 to read as follows:
2-10 Sec. 119.009. PARTICIPATION BY OTHER POLITICAL SUBDIVISIONS.
2-11 (a) A political subdivision other than a county may participate in
2-12 the County Government Risk Management Pool established under this
2-13 chapter.
2-14 (b) A political subdivision participating in the pool under
2-15 this section is entitled to the same coverage provided to a county
2-16 and may participate under the same terms and conditions as a
2-17 county.
2-18 SECTION 6. Subsection (a), Section 154.010, Local Government
2-19 Code, is amended to read as follows:
2-20 (a) A warrant may be drawn on either the general fund or
2-21 salary fund to pay any insurance premium or self-insurance pool
2-22 contribution for the purpose of providing insurance or other
2-23 coverage for the liabilities of an official or employee of the
2-24 county, a district attorney who has all or part of the county
2-25 within the district attorney's jurisdiction, or an official of any
2-26 special purpose district located, in whole or in part, in the
2-27 county, arising from the performance of an official duty or a duty
2-28 of employment as authorized by Section 157.041 or Chapter 119,
2-29 Local Government Code, or by Chapter 1084, Acts of the 70th
2-30 Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
2-31 Civil Statutes), or by the <The> Interlocal Cooperation Act
2-32 (Chapter 791, Government Code <(Article 4413(32c), Vernon's Texas
2-33 Civil Statutes>).
2-34 SECTION 7. Section 157.041, Local Government Code, is
2-35 amended by amending Subsection (a) and adding Subsection (d) to
2-36 read as follows:
2-37 (a) The commissioners court of a county may obtain insurance
2-38 or similar coverage from a governmental pool operating under
2-39 Chapter 119 or a self-insurance fund or risk retention group
2-40 operating under Chapter 1084, Acts of the 70th Legislature, Regular
2-41 Session, 1987 (Article 715c, Vernon's Texas Civil Statutes), for
2-42 <insure> an official or employee of the county<,> including county
2-43 and precinct peace officers designated by the commissioners court,
2-44 a district attorney who has all or part of the county within the
2-45 district attorney's jurisdiction, or an official of any special
2-46 purpose district located, in whole or in part, in the county,
2-47 against liability arising from the performance of official duties
2-48 or duties of employment.
2-49 (d) Coverage obtained from a pool operating under Chapter
2-50 119 or a self-insurance fund or risk retention group operating
2-51 under Chapter 1084, Acts of the 70th Legislature, Regular Session,
2-52 1987 (Article 715c, Vernon's Texas Civil Statutes), is not
2-53 insurance and, except as provided by Subsections (b) and (c), is
2-54 not subject to regulation by the Texas Department of Insurance.
2-55 SECTION 8. The importance of this legislation and the
2-56 crowded condition of the calendars in both houses create an
2-57 emergency and an imperative public necessity that the
2-58 constitutional rule requiring bills to be read on three several
2-59 days in each house be suspended, and this rule is hereby suspended,
2-60 and that this Act take effect and be in force from and after its
2-61 passage, and it is so enacted.
2-62 * * * * *
2-63 Austin,
2-64 Texas
2-65 April 15, 1993
2-66 Hon. Bob Bullock
2-67 President of the Senate
2-68 Sir:
2-69 We, your Committee on Intergovernmental Relations to which was
2-70 referred S.B. No. 798, have had the same under consideration, and I
3-1 am instructed to report it back to the Senate with the
3-2 recommendation that it do pass and be printed.
3-3 Armbrister,
3-4 Chairman
3-5 * * * * *
3-6 WITNESSES
3-7 FOR AGAINST ON
3-8 ___________________________________________________________________
3-9 Name: Carey Boethel x
3-10 Representing: Tx Assoc. of Counties
3-11 City: Austin
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3-13 Name: Robert Lemens x
3-14 Representing: Tx Association of Counties
3-15 City: Austin
3-16 -------------------------------------------------------------------
3-17 Name: Tom Krampitz x
3-18 Representing: Tx District & County Attys. As
3-19 City: Austin
3-20 -------------------------------------------------------------------
3-21 Name: Mickey West x
3-22 Representing: Tx Assn of Co. Auditors
3-23 City: Palo Pinto
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