BILL ANALYSIS C.S.H.B. 2085 By: Turner, Bob 5-1-95 Committee Report (Substituted) BACKGROUND Section 75.001-75.004, Civil Practices and Remedies Code, provides for limited liability of owners, lessees, or occupants of agricultural lands or real property when permission is granted to another to enter the premises for recreation. The owner, lessee, or occupant does not incur liability for any injury to any individual if there is no charge for entry or if charges for entry, collected in the previous calendar year, for all recreational uses are not more than twice the ad valorem taxes on the property. PURPOSE The bill would limit private landowner liability to monetary damages not to exceed $500,000 for each person and one million dollar ($1,000,000) for each single occurrence of bodily injury or death and $100,000 for each single occurrence for injury to or destruction of property when liability insurance for these amounts are in effect. The bill further provides that governmental entities will be treated as a landowner under this chapter as prior to Dallas v. Mitchell (Dec. 8 1993). 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 75.001, Civil Practices and Remedies Code, by adding subdivision (4) defining the term "governmental unit" the same as it is in Section 101.001, Civil Practices and Remedies Code. SECTION 2. Amends Section 75.003, Civil Practices and Remedies Code, as follows: Subsection (c) adds an exception for a governmental entity from the applications of this subsection since it applies only to an owner, lessee, or occupant of real property who: (1) does not charge for entry to the premises; (2) charges no more than twice the ad valorem taxes for recreation; or (3) has liability insurance coverage in effect on an act or omission described by Section 75.004 (a) and in the amounts equal to or greater than those provided by that action. Subsection (e) states that, except as otherwise provided, this chapter applies to a governmental unit. Subsection (f) states that this chapter does not waive sovereign immunity. Subsection (g) states that Chapter 75 limits the liability of a governmental unit, if the governmental unit is liable under Chapter 101, Civil Practices and Remedies Code. SECTION 3. Amends Chapter 75, Civil Practices and Remedies Code, by adding Section 75.004 as follows. Sect. 75.004(a) limits private landowner liability to monetary damages not to exceed $500,000 for each person and one million dollars ($1,000,000) for each single occurrence of bodily injury or death and $100,000 for each single occurrence for injury to or destruction of property. (b) This section applies only when the private landowner has liability insurance coverage in effect for the amounts specified in (a). (c) This section does not affect the liability in an action under Article 21.21, Insurance Code, for bad faith conduct, breach of fiduciary duty, or negligent failure to settle a claim. (d) States that governmental units are exempt under this section. SECTION 4. Amends Subchapter C, Chapter 101, Civil Practices and Remedies Code, by adding Section 101.058 which provides that Chapter 75 controls for liability limits for governmental units. SECTION 5. Applies only to a cause of action on or after the effective date of the act. SECTION 6. Emergency Clause - Effective immediately. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute, in SECTION 2, added Subsection (c)(3) to specify that this chapter applies to a landowner who has liability insurance coverage in effect on an act or omission described by Section 75.004(a) and in amounts equal to or greater than those provided by that section. The substitute, in SECTION 3, deletes in Subsection (a) "the condition of" to ensure that the act or omission occurred on the premises. SUMMARY OF COMMITTEE ACTION H.B. 2085 was considered by the Committee on Civil Practices in a public hearing on April 12, 1995. The following individuals testified in support of the bill: Arthur W. Nagel, representing himself and the Riverside and Landowners Protection Coalition, Inc.; Ted Lee Eubanks, representing himself and the National Audubon Society; Deborah Slator Gillan, representing herself and the Landowners Advisory Committee of the Texas Parks and Wildlife Department; and John W. Cliburn, representing himself and the Private Land Advisory Board of the Texas Parks and Wildlife Department. The following individual testified in opposition to the bill: Mike Slack, attorney, representing himself and the Texas Trial Lawyers Association. The bill was left pending. The bill was considered by the committee on April 26, 1995. The committee considered a complete committee substitute for the bill. The substitute was adopted without objection. 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 and four absent.