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
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   3-17  Name:  Tom Krampitz                              x
   3-18  Representing:  Tx District & County Attys. As
   3-19  City:  Austin
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   3-21  Name:  Mickey West                               x
   3-22  Representing:  Tx Assn of Co. Auditors
   3-23  City:  Palo Pinto
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