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.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1338 was passed by the House on May
7, 1997, by the following vote: Yeas 139, Nays 0, 2 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1338 was passed by the Senate on May
19, 1997, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor