BILL ANALYSIS



C.S.H.B. 354
By: Duncan
4-17-95
Committee Report (Substituted)


BACKGROUND

The Charitable Immunity Act of 1987 (Title 4, Civil Practices and
Remedies Code, Section 84.007 (g)) sets out minimum liability
insurance limits that charitable organizations must have to cover
employees and volunteers in order to limit the organizations
liability exposure.  The coverages in this Act are written as
"split limits" requiring $500,000 per person and $1,000,000 per
occurrence for death or bodily injury, and $100,000 per occurrence
for injury to or destruction of property.  Most insurance companies
today, however, write these types of policies in "combined single
limits."

A charitable organization purchasing liability insurance in
combined single limits would have to have $1,100,000 in coverage to
be protected by the Charitable Immunity Act of 1987.  Most
insurance companies today, however, do not write liability coverage
in that amount.  As a result many organizations are having to
purchase excessive coverage thus unnecessarily increasing their
premiums.

PURPOSE

As proposed, H.B. 354 would amend Section 84.007 (g), Civil
Practices and Remedies Code, to reflect the current practices in
the insurance market so that liability insurance is more economical
and more readily available to charitable organizations.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION

SECTION 1. Amends Section 84.007 (g), Civil Practices and Remedies
Code, to allow charitable organization to have the benefit of the
liability limits with the purchase of either a split limit policy
with coverages at present statutory limits or a one million dollar
combined single limit policy.

SECTION 2. Emergency clause - Effective immediately.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute allows charitable organization to have the benefit
of the liability limits with the purchase of either a split limit
policy with coverages at present statutory limits or a one million
dollar combined single limit policy. The original had eliminated
the split limit option.

SUMMARY OF COMMITTEE ACTION

The Civil Practices Committee considered H.B. 354 in public hearing
on March 8, 1995. The following people testified in support of the
bill: Douglas Sanford, representing himself as an independent
insurance agent; Bob Huxel, representing the Texas Association of
Insurance Agents; and Jacqueline Shannon, representing the Texas
Alliance for the Mentally Ill. The following individuals testified
in opposition to the bill: Jose Comancho, representing the Texas
Association of Community Health Centers. The bill was referred to
a subcommittee consisting of: Representatives Hilbert (chair),
Moffat and Tillery. The subcommittee considered a complete
substitute for the bill in a formal meeting on March 20, 1995. The
substitute was adopted without objection. The bill was reported
favorably as substituted, to the full committee by a record vote of
three ayes, zero nays and zero pnv. H.B. 354 was considered on
subcommittee report by the Committee on Civil Practices in a public
hearing on April 12, 1995. The bill was reported favorably, as
substituted, with the recommendation that it do pass and be printed
by a record vote of five ayes, zero nays, zero pnv, four absent.