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.