1-1  By:  Armbrister, Ratliff                              S.B. No. 1232
    1-2        (In the Senate - Filed March 10, 1995; March 16, 1995, read
    1-3  first time and referred to Committee on Economic Development;
    1-4  April 6, 1995, reported favorably, as amended, by the following
    1-5  vote:  Yeas 9, Nays 0; April 6, 1995, sent to printer.)
    1-6  COMMITTEE AMENDMENT NO. 1                              By:  Shapiro
    1-7  Amend S.B. No. 1232, SECTION 1, Subsection (b), Section 4 (page 2,
    1-8  line 24; committee printing page 1, line 61), by adding after the
    1-9  "." the following:
   1-10        The coverage must be subject to a maximum limit of $100,000
   1-11  for damages for bodily injury, death, or property damage arising
   1-12  out of a single occurrence.
   1-13                         A BILL TO BE ENTITLED
   1-14                                AN ACT
   1-15  relating to a motor vehicle self-insurance program for volunteer
   1-16  fire departments.
   1-17        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-18        SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
   1-19  amended by adding Article 21.61 to read as follows:
   1-20        Art. 21.61.  VOLUNTEER FIRE DEPARTMENT MOTOR VEHICLE
   1-21  SELF-INSURANCE PROGRAM
   1-22        Sec. 1.  DEFINITIONS.  In this article:
   1-23              (1)  "Fund" means the volunteer fire department
   1-24  self-insurance fund established under Section 5 of this article.
   1-25              (2)  "Program" means the volunteer fire department
   1-26  motor vehicle self-insurance program established under this
   1-27  article.
   1-28              (3)  "Service" means the Texas Forest Service of The
   1-29  Texas A&M University System.
   1-30              (4)  "Volunteer fire department" means a fire
   1-31  department operated by its members that is operated on a
   1-32  not-for-profit basis, including a department that is exempt from
   1-33  federal income tax under Section 501(a) of the Internal Revenue
   1-34  Code of 1986 (26 U.S.C. Section 501(a)) by being listed as an
   1-35  exempt organization in Section 501(c)(3) of that code (26 U.S.C.
   1-36  Section 501(c)(3)).
   1-37        Sec. 2.  ADMINISTRATION OF PROGRAM.  (a)  The Texas Forest
   1-38  Service shall administer the volunteer fire department motor
   1-39  vehicle self-insurance program established under this article.
   1-40        (b)  The service may employ staff to administer the program.
   1-41        Sec. 3.  SELF-INSURANCE PROGRAM.  (a)  The service shall
   1-42  establish the program to:
   1-43              (1)  identify and evaluate risks arising from the use
   1-44  of motor vehicles by volunteer fire departments;
   1-45              (2)  maintain a loss-prevention and loss-control
   1-46  program to reduce risks arising from the use of motor vehicles by
   1-47  volunteer fire departments;
   1-48              (3)  consolidate and administer volunteer fire
   1-49  department risk management and self-insurance programs; and
   1-50              (4)  provide motor vehicle self-insurance coverage in
   1-51  accordance with Section 4 of this article.
   1-52        (b)  The director of the service may adopt rules to implement
   1-53  and administer the program.
   1-54        Sec. 4.  SELF-INSURANCE COVERAGE.  (a)  The program shall
   1-55  establish a self-insurance pool to provide coverage for motor
   1-56  vehicles used for fire fighting by a volunteer fire department.
   1-57        (b)  The coverage may indemnify an official, employee,
   1-58  member, or volunteer of a volunteer fire department for liability
   1-59  arising from the use of a covered motor vehicle in the performance
   1-60  of the fire fighting duties of the official, employee, member, or
   1-61  volunteer.
   1-62        (c)  The director of the service may establish:
   1-63              (1)  eligibility requirements for participation in
   1-64  coverage under this section; and
   1-65              (2)  equipment and safety standards for the motor
   1-66  vehicle to be covered under this section.
   1-67        (d)  To participate in coverage provided under this section,
   1-68  a volunteer fire department must submit a written request to the
    2-1  program.  The director of the program shall approve the request if
    2-2  each motor vehicle to be covered meets the eligibility requirements
    2-3  and equipment and safety standards established under Subsection (c)
    2-4  of this section.
    2-5        Sec. 5.  FUND.  (a)  The volunteer fire department
    2-6  self-insurance fund is an account in the general revenue fund.
    2-7        (b)  The fund is composed of:
    2-8              (1)  money collected under Section 6 of this article;
    2-9  and
   2-10              (2)  interest accruing on money in the fund.
   2-11        (c)  Money in the fund may be expended in accordance with
   2-12  legislative appropriation only for:
   2-13              (1)  administration of this article, including the
   2-14  salaries and expenses of staff for the program and the fund; or
   2-15              (2)  funding self-insurance under the program.
   2-16        (d)  Self-insurance coverage provided under Section 4 of this
   2-17  article may be funded only from money available from the fund.
   2-18        (e)  Coverage limits of self-insurance provided under Section
   2-19  4 of this article must be based on the liquidity of the fund after
   2-20  deduction of the cost of administration of this article.
   2-21        (f)  The state's liability for a loss covered by
   2-22  self-insurance provided under this article is limited to the assets
   2-23  of the fund, and the state is not otherwise liable for that loss.
   2-24        Sec. 6.  SELF-INSURANCE FEE.  (a)  The service may levy and
   2-25  collect a reasonable fee from participating volunteer fire
   2-26  departments to provide self-insurance coverage under this article.
   2-27  In establishing the amount of the fee, the service shall consider
   2-28  the amount that could be charged to the volunteer fire department
   2-29  for similar insurance coverage provided to the department in
   2-30  accordance with this code.
   2-31        (b)  Fees collected under this section shall be deposited to
   2-32  the credit of the fund.
   2-33        Sec. 7.  REPRESENTATION OF INSURED.  (a)  The service may
   2-34  employ an attorney to represent a volunteer fire department or an
   2-35  official, employee, member, or volunteer of a volunteer fire
   2-36  department in a liability action for which insurance coverage is
   2-37  provided under this article.
   2-38        (b)  The attorney general may not provide the services
   2-39  described by Subsection (a) of this section.
   2-40        SECTION 2.  (a)  This Act takes effect September 1, 1995.
   2-41        (b)  The volunteer fire department motor vehicle
   2-42  self-insurance program established under Section 3, Article 21.61,
   2-43  Insurance Code, as added by this Act, may not provide insurance
   2-44  coverage under Section 4 of that article before January 1, 1996.
   2-45        (c)  Notwithstanding Section 5, Article 21.61, Insurance
   2-46  Code, as added by this Act, the volunteer fire department
   2-47  self-insurance fund established under that section may include
   2-48  amounts appropriated to the fund until September 1, 1998.  The
   2-49  initial self-insurance fee set under Section 6, Article 21.61, as
   2-50  added by this Act, must be established in an amount sufficient to
   2-51  refund to the general revenue fund any appropriation made to the
   2-52  volunteer fire department self-insurance fund.  The refund
   2-53  contemplated by this subsection shall be made not later than
   2-54  September 1, 1998.
   2-55        SECTION 3.  The importance of this legislation and the
   2-56  crowded condition of the calendars in both houses create an
   2-57  emergency and an imperative public necessity that the
   2-58  constitutional rule requiring bills to be read on three several
   2-59  days in each house be suspended, and this rule is hereby suspended.
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