1-1  By:  Duncan (Senate Sponsor - Sibley)                  H.B. No. 354
    1-2        (In the Senate - Received from the House May 12, 1995;
    1-3  May 15, 1995, read first time and referred to Committee on Economic
    1-4  Development; May 22, 1995, reported favorably by the following
    1-5  vote:  Yeas 8, Nays 0; May 22, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to insurance for a charitable organization.
    1-9        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-10        SECTION 1.  Section 84.007(g), Civil Practice and Remedies
   1-11  Code, is amended to read as follows:
   1-12        (g)  Sections 84.005 and 84.006 of this Act do not apply to
   1-13  any charitable organization that does not have liability insurance
   1-14  coverage in effect on any act or omission to which this chapter
   1-15  applies.  The coverage shall apply to the acts or omissions of the
   1-16  organization and its employees and volunteers and be in the amount
   1-17  of at least $500,000 for each person and $1,000,000 for each single
   1-18  occurrence for death or bodily injury and $100,000 for each single
   1-19  occurrence for injury to or destruction of property.  The coverage
   1-20  may be provided under a contract of insurance or other plan of
   1-21  insurance authorized by statute and may be satisfied by the
   1-22  purchase of a $1,000,000 bodily injury and property damage combined
   1-23  single limit policy.  Nothing in this chapter shall limit liability
   1-24  of any insurer or insurance plan in an action under Chapter 21,
   1-25  Insurance Code, or in an action for bad faith conduct, breach of
   1-26  fiduciary duty, or negligent failure to settle a claim.
   1-27        SECTION 2.  Article 5.01, Insurance Code, is amended by
   1-28  adding Subsection (g) to read as follows:
   1-29        (g)  The commissioner may establish by rule a classification
   1-30  of risk applicable to motor vehicles used for limited purposes by
   1-31  nonprofit organizations.  If a classification of risk is
   1-32  established under this subsection, the commissioner shall adopt
   1-33  rules to classify risks and define the limited uses permissible for
   1-34  motor vehicles insured under the classification.  The commissioner
   1-35  may not adopt rules under this subsection that result in insurance
   1-36  premium rates for nonprofit organizations exceeding the insurance
   1-37  premium rates of other analogous classifications of risk applicable
   1-38  to motor vehicles used by entities other than nonprofit
   1-39  organizations.  In this subsection, "nonprofit organization" means
   1-40  any organization exempt from federal income tax under Section
   1-41  501(a) of the Internal Revenue Code of 1986 by being listed as an
   1-42  exempt organization in Section 501(c)(3) or (c)(4) of that code.
   1-43        SECTION 3.  The importance of this legislation and the
   1-44  crowded condition of the calendars in both houses create an
   1-45  emergency and an imperative public necessity that the
   1-46  constitutional rule requiring bills to be read on three several
   1-47  days in each house be suspended, and this rule is hereby suspended.
   1-48                               * * * * *