By Duncan                                              H.B. No. 354
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to insurance for a charitable organization.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 84.007(g), Civil Practice and Remedies
    1-5  Code, is amended to read as follows:
    1-6        (g)  Sections 84.005 and 84.006 of this Act do not apply to
    1-7  any charitable organization that does not have liability insurance
    1-8  coverage in effect on any act or omission to which this chapter
    1-9  applies.  The coverage shall apply to the acts or omissions of the
   1-10  organization and its employees and volunteers and be in the amount
   1-11  of at least $500,000 for each person and $1,000,000 for each single
   1-12  occurrence for death or bodily injury and $100,000 for each single
   1-13  occurrence for injury to or destruction of property.  The coverage
   1-14  may be provided under a contract of insurance or other plan of
   1-15  insurance authorized by statute and may be satisfied by the
   1-16  purchase of a $1,000,000 bodily injury and property damage combined
   1-17  single limit policy.  Nothing in this chapter shall limit liability
   1-18  of any insurer or insurance plan in an action under Chapter 21,
   1-19  Insurance Code, or in an action for bad faith conduct, breach of
   1-20  fiduciary duty, or negligent failure to settle a claim.
   1-21        SECTION 2.  Article 5.01, Insurance Code, is amended by
   1-22  adding Subsection (g) to read as follows:
   1-23        (g)  The commissioner may establish by rule a classification
   1-24  of risk applicable to motor vehicles used for limited purposes by
    2-1  nonprofit organizations.  If a classification of risk is
    2-2  established under this subsection, the commissioner shall adopt
    2-3  rules to classify risks and define the limited uses permissible for
    2-4  motor vehicles insured under the classification.  The commissioner
    2-5  may not adopt rules under this subsection that result in insurance
    2-6  premium rates for nonprofit organizations exceeding the insurance
    2-7  premium rates of other analogous classifications of risk applicable
    2-8  to motor vehicles used by entities other than nonprofit
    2-9  organizations.  In this subsection, "nonprofit organization" means
   2-10  any organization exempt from federal income tax under Section
   2-11  501(a) of the Internal Revenue Code of 1986 by being listed as an
   2-12  exempt organization in Section 501(c)(3) or (c)(4) of that code.
   2-13        SECTION 3.  The importance of this legislation and the
   2-14  crowded condition of the calendars in both houses create an
   2-15  emergency and an imperative public necessity that the
   2-16  constitutional rule requiring bills to be read on three several
   2-17  days in each house be suspended, and this rule is hereby suspended.