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. 2-60 * * * * *