1-1 By: Kubiak, et al. H.B. No. 2603
1-2 (Senate Sponsor - Armbrister, Ratliff)
1-3 (In the Senate - Received from the House May 11, 1995;
1-4 May 12, 1995, read first time and referred to Committee on Economic
1-5 Development; May 23, 1995, reported adversely, with favorable
1-6 Committee Substitute by the following vote: Yeas 7, Nays 0;
1-7 May 23, 1995, sent to printer.)
1-8 COMMITTEE SUBSTITUTE FOR H.B. No. 2603 By: Rosson
1-9 A BILL TO BE ENTITLED
1-10 AN ACT
1-11 relating to the liability of and a motor vehicle liability
1-12 self-insurance program for volunteer fire departments.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-15 amended by adding Article 21.61 to read as follows:
1-16 Art. 21.61. VOLUNTEER FIRE DEPARTMENT MOTOR VEHICLE
1-17 SELF-INSURANCE PROGRAM
1-18 Sec. 1. DEFINITIONS. In this article:
1-19 (1) "Fund" means the volunteer fire department
1-20 self-insurance fund established under Section 5 of this article.
1-21 (2) "Program" means the volunteer fire department
1-22 motor vehicle self-insurance program established under this
1-23 article.
1-24 (3) "Service" means the Texas Forest Service of The
1-25 Texas A&M University System.
1-26 (4) "Volunteer fire department" means a fire
1-27 department operated by its members that is operated on a
1-28 not-for-profit basis, including a department that is exempt from
1-29 federal income tax under Section 501(a) of the Internal Revenue
1-30 Code of 1986 (26 U.S.C. Section 501(a)) by being listed as an
1-31 exempt organization in Section 501(c)(3) of that code (26 U.S.C.
1-32 Section 501(c)(3)).
1-33 Sec. 2. ADMINISTRATION OF PROGRAM. (a) The Texas Forest
1-34 Service shall administer the volunteer fire department motor
1-35 vehicle self-insurance program established under this article.
1-36 (b) The service may employ staff to administer the program.
1-37 Sec. 3. SELF-INSURANCE PROGRAM. (a) The service shall
1-38 establish the program to:
1-39 (1) identify and evaluate risks arising from the use
1-40 of motor vehicles by volunteer fire departments;
1-41 (2) maintain a loss-prevention and loss-control
1-42 program to reduce risks arising from the use of motor vehicles by
1-43 volunteer fire departments;
1-44 (3) consolidate and administer volunteer fire
1-45 department risk management and self-insurance programs; and
1-46 (4) provide motor vehicle self-insurance coverage in
1-47 accordance with Section 4 of this article.
1-48 (b) The director of the service may adopt rules to implement
1-49 and administer the program.
1-50 Sec. 4. SELF-INSURANCE COVERAGE. (a) The program shall
1-51 establish a self-insurance pool to provide coverage for motor
1-52 vehicles used for fire fighting by a volunteer fire department.
1-53 (b) The coverage may indemnify an official, employee,
1-54 member, or volunteer of a volunteer fire department for liability
1-55 arising from the use of a covered motor vehicle in the performance
1-56 of the fire fighting duties of the official, employee, member, or
1-57 volunteer. The coverage must be subject to a maximum limit of
1-58 $100,000 for damages for bodily injury, death, or property damage
1-59 arising out of a single occurrence.
1-60 (c) The director of the service may establish:
1-61 (1) eligibility requirements for participation in
1-62 coverage under this section; and
1-63 (2) equipment and safety standards for the motor
1-64 vehicle to be covered under this section.
1-65 (d) To participate in coverage provided under this section,
1-66 a volunteer fire department must submit a written request to the
1-67 program. The director of the program shall approve the request if
1-68 each motor vehicle to be covered meets the eligibility requirements
2-1 and equipment and safety standards established under Subsection (c)
2-2 of this section.
2-3 Sec. 5. FUND. (a) The volunteer fire department
2-4 self-insurance fund is an account in the general revenue fund.
2-5 (b) The fund is composed of:
2-6 (1) money collected under Section 6 of this article;
2-7 and
2-8 (2) interest accruing on money in the fund.
2-9 (c) Money in the fund may be expended in accordance with
2-10 legislative appropriation only for:
2-11 (1) administration of this article, including the
2-12 salaries and expenses of staff for the program and the fund; or
2-13 (2) funding self-insurance under the program.
2-14 (d) Self-insurance coverage provided under Section 4 of this
2-15 article may be funded only from money available from the fund.
2-16 (e) Coverage limits of self-insurance provided under Section
2-17 4 of this article must be based on the liquidity of the fund after
2-18 deduction of the cost of administration of this article.
2-19 (f) The state's liability for a loss covered by
2-20 self-insurance provided under this article is limited to the assets
2-21 of the fund, and the state is not otherwise liable for that loss.
2-22 Sec. 6. SELF-INSURANCE FEE. (a) The service may levy and
2-23 collect a reasonable fee from participating volunteer fire
2-24 departments to provide self-insurance coverage under this article.
2-25 In establishing the amount of the fee, the service shall consider
2-26 the amount that could be charged to the volunteer fire department
2-27 for similar insurance coverage provided to the department in
2-28 accordance with this code.
2-29 (b) Fees collected under this section shall be deposited to
2-30 the credit of the fund.
2-31 Sec. 7. REPRESENTATION OF INSURED. (a) The service may
2-32 employ an attorney to represent a volunteer fire department or an
2-33 official, employee, member, or volunteer of a volunteer fire
2-34 department in a liability action for which insurance coverage is
2-35 provided under this article.
2-36 (b) The attorney general may not provide the services
2-37 described by Subsection (a) of this section.
2-38 SECTION 2. Section 101.001, Civil Practice and Remedies
2-39 Code, is amended by amending Subdivision (2) and adding Subdivision
2-40 (6) to read as follows:
2-41 (2) "Governmental unit" means:
2-42 (A) this state and all the several agencies of
2-43 government that collectively constitute the government of this
2-44 state, including other agencies bearing different designations, and
2-45 all departments, bureaus, boards, commissions, offices, agencies,
2-46 councils, and courts;
2-47 (B) a political subdivision of this state,
2-48 including any city, county, school district, junior college
2-49 district, levee improvement district, drainage district, irrigation
2-50 district, water improvement district, water control and improvement
2-51 district, water control and preservation district, freshwater
2-52 supply district, navigation district, conservation and reclamation
2-53 district, soil conservation district, communication district,
2-54 public health district, and river authority; <and>
2-55 (C) a volunteer fire department; and
2-56 (D) any other institution, agency, or organ of
2-57 government the status and authority of which are derived from the
2-58 Constitution of Texas or from laws passed by the legislature under
2-59 the constitution.
2-60 (6) "Volunteer fire department" means a fire
2-61 department that is:
2-62 (A) operated by its members; and
2-63 (B) exempt from federal income tax under Section
2-64 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section
2-65 501(a)) by being listed as an exempt organization in Section
2-66 501(c)(3) of that code (26 U.S.C. Section 501(c)(3)).
2-67 SECTION 3. Section 101.023, Civil Practice and Remedies
2-68 Code, is amended by adding Subsection (d) to read as follows:
2-69 (d) Except as provided by Section 78.001, liability of a
2-70 volunteer fire department under this chapter is limited to money
3-1 damages in a maximum amount of $100,000 for each person and
3-2 $300,000 for each single occurrence for bodily injury or death and
3-3 $100,000 for each single occurrence for injury to or destruction of
3-4 property.
3-5 SECTION 4. This Act takes effect September 1, 1995.
3-6 SECTION 5. (a) The volunteer fire department motor vehicle
3-7 self-insurance program established under Section 3, Article 21.61,
3-8 Insurance Code, as added by this Act, may not provide insurance
3-9 coverage under Section 4 of that article before January 1, 1996.
3-10 (b) Notwithstanding Section 5, Article 21.61, Insurance
3-11 Code, as added by this Act, the volunteer fire department
3-12 self-insurance fund established under that section may include
3-13 amounts appropriated to the fund until August 31, 1997. The
3-14 initial self-insurance fee set under Section 6, Article 21.61, as
3-15 added by this Act, must be established in an amount sufficient to
3-16 refund to the general revenue fund any appropriation made to the
3-17 volunteer fire department self-insurance fund. The refund
3-18 contemplated by this subsection shall be made not later than
3-19 August 31, 1997.
3-20 SECTION 6. The change in law made by this Act to Chapter
3-21 101, Civil Practice and Remedies Code, applies only to a cause of
3-22 action that accrues on or after the effective date of this Act. An
3-23 action that accrued before the effective date of this Act is
3-24 governed by the law in effect at the time the action accrued, and
3-25 that law is continued in effect for that purpose.
3-26 SECTION 7. The importance of this legislation and the
3-27 crowded condition of the calendars in both houses create an
3-28 emergency and an imperative public necessity that the
3-29 constitutional rule requiring bills to be read on three several
3-30 days in each house be suspended, and this rule is hereby suspended.
3-31 * * * * *