By Junell H.B. No. 1338 75R5131 DAK-D 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 for the benefit 1-11 of: 1-12 (1) a director or officer of the agency, institution, 1-13 or department; 1-14 (2) a member of a governing board, commission, or 1-15 council of the agency, institution, or department; or 1-16 (3) a member of the executive staff of the agency, 1-17 institution, or department. 1-18 (b) An insurance policy purchased under this section may 1-19 provide insurance coverage for the liability of the insured only to 1-20 the extent that the liability is in excess of the limits of state 1-21 liability under Section 104.003. 1-22 (c) The purchase of an insurance policy under this section 1-23 does not waive a defense, immunity, or jurisdictional bar available 1-24 to the state agency, institution, or department purchasing the 2-1 insurance or to the insured. 2-2 SECTION 2. Section 104.003(b), Civil Practice and Remedies 2-3 Code, is amended to read as follows: 2-4 (b) The state is not liable under this chapter to the extent 2-5 that damages are recoverable under a contract of insurance or under 2-6 a plan of self-insurance authorized by statute that provides 2-7 insurance coverage other than coverage in excess of the limits of 2-8 state liability under Section 104.003. 2-9 SECTION 3. The importance of this legislation and the 2-10 crowded condition of the calendars in both houses create an 2-11 emergency and an imperative public necessity that the 2-12 constitutional rule requiring bills to be read on three several 2-13 days in each house be suspended, and this rule is hereby suspended, 2-14 and that this Act take effect and be in force from and after its 2-15 passage, and it is so enacted.