By Junell                                             H.B. No. 1338

         75R12499 DAK-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the purchase of directors' and officers' liability

 1-3     insurance by state agencies.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 104, Civil Practice and Remedies Code, is

 1-6     amended by adding Section 104.009 to read as follows:

 1-7           Sec. 104.009.  DIRECTORS' AND OFFICERS' LIABILITY INSURANCE.

 1-8     (a)  A state agency, institution, or department may purchase a

 1-9     directors' and officers' liability insurance policy applicable to

1-10     damages for conduct described under Section 104.002 and other

1-11     conduct customarily covered under directors' and officers'

1-12     liability insurance policies for the benefit of:

1-13                 (1)  a director or officer of the agency, institution,

1-14     or department;

1-15                 (2)  a member of a governing board, commission, or

1-16     council of the agency, institution, or department; or

1-17                 (3)  a member of the executive staff of the agency,

1-18     institution, or department.

1-19           (b)  An insurance policy purchased under this section must

1-20     have a deductible applicable to the liability of the state agency,

1-21     institution, or department in an amount equal to the amount of the

1-22     limits of liability established under Section 104.003.  The

1-23     deductible applicable to an individual's liability may be set at a

1-24     lower amount.

 2-1           (c)  The purchase of an insurance policy under this section

 2-2     does not waive a defense, immunity, or jurisdictional bar available

 2-3     to the state agency, institution, or department purchasing the

 2-4     insurance or to the insured.

 2-5           SECTION 2.  Section 104.003(b), Civil Practice and Remedies

 2-6     Code, is amended to read as follows:

 2-7           (b)  The state is not liable under this chapter to the extent

 2-8     that damages are recoverable under and are in excess of the

 2-9     deductible limits of:

2-10                 (1)  a contract of insurance; or

2-11                 (2)  [under] a plan of self-insurance authorized by

2-12     statute.

2-13           SECTION 3.  The importance of this legislation and the

2-14     crowded condition of the calendars in both houses create an

2-15     emergency and an imperative public necessity that the

2-16     constitutional rule requiring bills to be read on three several

2-17     days in each house be suspended, and this rule is hereby suspended,

2-18     and that this Act take effect and be in force from and after its

2-19     passage, and it is so enacted.