By Armbrister, Ratliff S.B. No. 1232
74R1413 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a motor vehicle self-insurance program for volunteer
1-3 fire departments.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-6 amended by adding Article 21.61 to read as follows:
1-7 Art. 21.61. VOLUNTEER FIRE DEPARTMENT MOTOR VEHICLE
1-8 SELF-INSURANCE PROGRAM
1-9 Sec. 1. DEFINITIONS. In this article:
1-10 (1) "Fund" means the volunteer fire department
1-11 self-insurance fund established under Section 5 of this article.
1-12 (2) "Program" means the volunteer fire department
1-13 motor vehicle self-insurance program established under this
1-14 article.
1-15 (3) "Service" means the Texas Forest Service of The
1-16 Texas A&M University System.
1-17 (4) "Volunteer fire department" means a fire
1-18 department operated by its members that is operated on a
1-19 not-for-profit basis, including a department that is exempt from
1-20 federal income tax under Section 501(a) of the Internal Revenue
1-21 Code of 1986 (26 U.S.C. Section 501(a)) by being listed as an
1-22 exempt organization in Section 501(c)(3) of that code (26 U.S.C.
1-23 Section 501(c)(3)).
1-24 Sec. 2. ADMINISTRATION OF PROGRAM. (a) The Texas Forest
2-1 Service shall administer the volunteer fire department motor
2-2 vehicle self-insurance program established under this article.
2-3 (b) The service may employ staff to administer the program.
2-4 Sec. 3. SELF-INSURANCE PROGRAM. (a) The service shall
2-5 establish the program to:
2-6 (1) identify and evaluate risks arising from the use
2-7 of motor vehicles by volunteer fire departments;
2-8 (2) maintain a loss-prevention and loss-control
2-9 program to reduce risks arising from the use of motor vehicles by
2-10 volunteer fire departments;
2-11 (3) consolidate and administer volunteer fire
2-12 department risk management and self-insurance programs; and
2-13 (4) provide motor vehicle self-insurance coverage in
2-14 accordance with Section 4 of this article.
2-15 (b) The director of the service may adopt rules to implement
2-16 and administer the program.
2-17 Sec. 4. SELF-INSURANCE COVERAGE. (a) The program shall
2-18 establish a self-insurance pool to provide coverage for motor
2-19 vehicles used for fire fighting by a volunteer fire department.
2-20 (b) The coverage may indemnify an official, employee,
2-21 member, or volunteer of a volunteer fire department for liability
2-22 arising from the use of a covered motor vehicle in the performance
2-23 of the fire fighting duties of the official, employee, member, or
2-24 volunteer.
2-25 (c) The director of the service may establish:
2-26 (1) eligibility requirements for participation in
2-27 coverage under this section; and
3-1 (2) equipment and safety standards for the motor
3-2 vehicle to be covered under this section.
3-3 (d) To participate in coverage provided under this section,
3-4 a volunteer fire department must submit a written request to the
3-5 program. The director of the program shall approve the request if
3-6 each motor vehicle to be covered meets the eligibility requirements
3-7 and equipment and safety standards established under Subsection (c)
3-8 of this section.
3-9 Sec. 5. FUND. (a) The volunteer fire department
3-10 self-insurance fund is an account in the general revenue fund.
3-11 (b) The fund is composed of:
3-12 (1) money collected under Section 6 of this article;
3-13 and
3-14 (2) interest accruing on money in the fund.
3-15 (c) Money in the fund may be expended in accordance with
3-16 legislative appropriation only for:
3-17 (1) administration of this article, including the
3-18 salaries and expenses of staff for the program and the fund; or
3-19 (2) funding self-insurance under the program.
3-20 (d) Self-insurance coverage provided under Section 4 of this
3-21 article may be funded only from money available from the fund.
3-22 (e) Coverage limits of self-insurance provided under Section
3-23 4 of this article must be based on the liquidity of the fund after
3-24 deduction of the cost of administration of this article.
3-25 (f) The state's liability for a loss covered by
3-26 self-insurance provided under this article is limited to the assets
3-27 of the fund, and the state is not otherwise liable for that loss.
4-1 Sec. 6. SELF-INSURANCE FEE. (a) The service may levy and
4-2 collect a reasonable fee from participating volunteer fire
4-3 departments to provide self-insurance coverage under this article.
4-4 In establishing the amount of the fee, the service shall consider
4-5 the amount that could be charged to the volunteer fire department
4-6 for similar insurance coverage provided to the department in
4-7 accordance with this code.
4-8 (b) Fees collected under this section shall be deposited to
4-9 the credit of the fund.
4-10 Sec. 7. REPRESENTATION OF INSURED. (a) The service may
4-11 employ an attorney to represent a volunteer fire department or an
4-12 official, employee, member, or volunteer of a volunteer fire
4-13 department in a liability action for which insurance coverage is
4-14 provided under this article.
4-15 (b) The attorney general may not provide the services
4-16 described by Subsection (a) of this section.
4-17 SECTION 2. (a) This Act takes effect September 1, 1995.
4-18 (b) The volunteer fire department motor vehicle
4-19 self-insurance program established under Section 3, Article 21.61,
4-20 Insurance Code, as added by this Act, may not provide insurance
4-21 coverage under Section 4 of that article before January 1, 1996.
4-22 (c) Notwithstanding Section 5, Article 21.61, Insurance
4-23 Code, as added by this Act, the volunteer fire department
4-24 self-insurance fund established under that section may include
4-25 amounts appropriated to the fund until September 1, 1998. The
4-26 initial self-insurance fee set under Section 6, Article 21.61, as
4-27 added by this Act, must be established in an amount sufficient to
5-1 refund to the general revenue fund any appropriation made to the
5-2 volunteer fire department self-insurance fund. The refund
5-3 contemplated by this subsection shall be made not later than
5-4 September 1, 1998.
5-5 SECTION 3. The importance of this legislation and the
5-6 crowded condition of the calendars in both houses create an
5-7 emergency and an imperative public necessity that the
5-8 constitutional rule requiring bills to be read on three several
5-9 days in each house be suspended, and this rule is hereby suspended.