By: Armbrister, Ratliff S.B. No. 1232 A BILL TO BE ENTITLED AN ACT 1-1 relating to a motor vehicle self-insurance program for volunteer 1-2 fire departments. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-5 amended by adding Article 21.61 to read as follows: 1-6 Art. 21.61. VOLUNTEER FIRE DEPARTMENT MOTOR VEHICLE 1-7 SELF-INSURANCE PROGRAM 1-8 Sec. 1. DEFINITIONS. In this article: 1-9 (1) "Fund" means the volunteer fire department 1-10 self-insurance fund established under Section 5 of this article. 1-11 (2) "Program" means the volunteer fire department 1-12 motor vehicle self-insurance program established under this 1-13 article. 1-14 (3) "Service" means the Texas Forest Service of The 1-15 Texas A&M University System. 1-16 (4) "Volunteer fire department" means a fire 1-17 department operated by its members that is operated on a 1-18 not-for-profit basis, including a department that is exempt from 1-19 federal income tax under Section 501(a) of the Internal Revenue 1-20 Code of 1986 (26 U.S.C. Section 501(a)) by being listed as an 1-21 exempt organization in Section 501(c)(3) of that code (26 U.S.C. 1-22 Section 501(c)(3)). 1-23 Sec. 2. ADMINISTRATION OF PROGRAM. (a) The Texas Forest 1-24 Service shall administer the volunteer fire department motor 2-1 vehicle self-insurance program established under this article. 2-2 (b) The service may employ staff to administer the program. 2-3 Sec. 3. SELF-INSURANCE PROGRAM. (a) The service shall 2-4 establish the program to: 2-5 (1) identify and evaluate risks arising from the use 2-6 of motor vehicles by volunteer fire departments; 2-7 (2) maintain a loss-prevention and loss-control 2-8 program to reduce risks arising from the use of motor vehicles by 2-9 volunteer fire departments; 2-10 (3) consolidate and administer volunteer fire 2-11 department risk management and self-insurance programs; and 2-12 (4) provide motor vehicle self-insurance coverage in 2-13 accordance with Section 4 of this article. 2-14 (b) The director of the service may adopt rules to implement 2-15 and administer the program. 2-16 Sec. 4. SELF-INSURANCE COVERAGE. (a) The program shall 2-17 establish a self-insurance pool to provide coverage for motor 2-18 vehicles used for fire fighting by a volunteer fire department. 2-19 (b) The coverage may indemnify an official, employee, 2-20 member, or volunteer of a volunteer fire department for liability 2-21 arising from the use of a covered motor vehicle in the performance 2-22 of the fire fighting duties of the official, employee, member, or 2-23 volunteer. The coverage must be subject to a maximum limit of 2-24 $100,000 for damages for bodily injury, death, or property damage 2-25 arising out of a single occurrence. 2-26 (c) The director of the service may establish: 2-27 (1) eligibility requirements for participation in 3-1 coverage under this section; and 3-2 (2) equipment and safety standards for the motor 3-3 vehicle to be covered under this section. 3-4 (d) To participate in coverage provided under this section, 3-5 a volunteer fire department must submit a written request to the 3-6 program. The director of the program shall approve the request if 3-7 each motor vehicle to be covered meets the eligibility requirements 3-8 and equipment and safety standards established under Subsection (c) 3-9 of this section. 3-10 Sec. 5. FUND. (a) The volunteer fire department 3-11 self-insurance fund is an account in the general revenue fund. 3-12 (b) The fund is composed of: 3-13 (1) money collected under Section 6 of this article; 3-14 and 3-15 (2) interest accruing on money in the fund. 3-16 (c) Money in the fund may be expended in accordance with 3-17 legislative appropriation only for: 3-18 (1) administration of this article, including the 3-19 salaries and expenses of staff for the program and the fund; or 3-20 (2) funding self-insurance under the program. 3-21 (d) Self-insurance coverage provided under Section 4 of this 3-22 article may be funded only from money available from the fund. 3-23 (e) Coverage limits of self-insurance provided under Section 3-24 4 of this article must be based on the liquidity of the fund after 3-25 deduction of the cost of administration of this article. 3-26 (f) The state's liability for a loss covered by 3-27 self-insurance provided under this article is limited to the assets 4-1 of the fund, and the state is not otherwise liable for that loss. 4-2 Sec. 6. SELF-INSURANCE FEE. (a) The service may levy and 4-3 collect a reasonable fee from participating volunteer fire 4-4 departments to provide self-insurance coverage under this article. 4-5 In establishing the amount of the fee, the service shall consider 4-6 the amount that could be charged to the volunteer fire department 4-7 for similar insurance coverage provided to the department in 4-8 accordance with this code. 4-9 (b) Fees collected under this section shall be deposited to 4-10 the credit of the fund. 4-11 Sec. 7. REPRESENTATION OF INSURED. (a) The service may 4-12 employ an attorney to represent a volunteer fire department or an 4-13 official, employee, member, or volunteer of a volunteer fire 4-14 department in a liability action for which insurance coverage is 4-15 provided under this article. 4-16 (b) The attorney general may not provide the services 4-17 described by Subsection (a) of this section. 4-18 SECTION 2. (a) This Act takes effect September 1, 1995. 4-19 (b) The volunteer fire department motor vehicle 4-20 self-insurance program established under Section 3, Article 21.61, 4-21 Insurance Code, as added by this Act, may not provide insurance 4-22 coverage under Section 4 of that article before January 1, 1996. 4-23 (c) Notwithstanding Section 5, Article 21.61, Insurance 4-24 Code, as added by this Act, the volunteer fire department 4-25 self-insurance fund established under that section may include 4-26 amounts appropriated to the fund until September 1, 1998. The 4-27 initial self-insurance fee set under Section 6, Article 21.61, as 5-1 added by this Act, must be established in an amount sufficient to 5-2 refund to the general revenue fund any appropriation made to the 5-3 volunteer fire department self-insurance fund. The refund 5-4 contemplated by this subsection shall be made not later than 5-5 September 1, 1998. 5-6 SECTION 3. The importance of this legislation and the 5-7 crowded condition of the calendars in both houses create an 5-8 emergency and an imperative public necessity that the 5-9 constitutional rule requiring bills to be read on three several 5-10 days in each house be suspended, and this rule is hereby suspended. 5-11 COMMITTEE AMENDMENT NO. 1 5-12 Amend SB 1232 as follows: 5-13 (1) On page 5, line 6, strike "September 1, 1998" and 5-14 substitute "August 31, 1997". 5-15 (2) On page 5, line 12, strike "September 1, 1998" and 5-16 substitute "August 31, 1997". 5-17 Duncan