BILL ANALYSIS



H.B. 2603
By: Kubiak
4-25-95
Committee Report (Amended)


BACKGROUND

The current Civil Law and Remedies Code does not classify volunteer
fire departments as "governmental units."  This means that the
current liability for a volunteer fire department is not capped
similar to other governmental units.  This liability exposure
heavily burdens volunteer fire departments. 

PURPOSE

The bill amends the Civil Practice and Remedies Code in order to
limit volunteer fire departments liability. The bill would cap
liability for volunteer fire departments by including them as a
unit of local government, thus limiting their liability to $100,000
per person and $300,000 per occurrence for bodily injury or death,
$100,000 per occurrence for injury to or destruction of property.
The bill is designed to ease the liability burden that volunteer
fire departments operate under.

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 ANALYSIS

     SECTION 1.     Amends Section 101.001, Subdivision 2, Civil
Practices and Remedies Code, by inserting a new unit in the
definition of governmental units. 

     Sect. 101.001 (2) Governmental unit means:
           (C) a volunteer fire department.

     Sect. 101.001 (6) Defines volunteer fire department as:
           (A) operated by its members; and
           (B) exempt from federal income tax under 501(a) of the
IRS code.

     SECTION 2. Amends Section 101.023 Civil Practices and Remedies
Code, by adding subsection (d) limiting liability to a maximum
amount of $100,000 for each person and $300,000 for each occurrence
of bodily injury or death, and $100,000 in property liability.

     SECTION 3. Applies only to an action accruing on or after the
effective date.

     SECTION 4. Emergency clause - Effective immediately.

EXPLANATION OF AMENDMENTS

The amendment deletes the requirement that a volunteer fire
department be certified by the Texas Commission on Fire Protection.

SUMMARY OF COMMITTEE ACTION

H.B. 2603 was considered in a public hearing on April 5, 1995. The
following individual testified in support of the bill: Larry
Letscher, representing the State Firemen's and Fire Marshal's
Association. The following individual testified in opposition to
the bill: Bill Whitehurst, attorney, representing himself and the
Texas Trial Lawyers Association. The chair referred the bill to a
subcommittee consisting of Representatives: Culberson (chair),
Tillery and Moffat. The subcommittee considered one amendment to
the bill, which was adopted without objection. The bill was
reported favorably as amended to the full committee by a record
vote of three ayes, zero nays, zero pnv and zero absents. H.B. 2603
was considered on subcommittee report by the committee in a formal
meeting on April 24, 1995. The bill was reported favorably, as
amended, with the recommendation that it do pass and be printed, by
a record vote of eight ayes, zero nays, zero pnv and one absent.