1-1 By: Junell (Senate Sponsor - Lindsay) H.B. No. 1338
1-2 (In the Senate - Received from the House May 8, 1997;
1-3 May 9, 1997, read first time and referred to Committee on State
1-4 Affairs; May 16, 1997, reported favorably by the following vote:
1-5 Yeas 13, Nays 0; May 16, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the purchase of directors' and officers' liability
1-9 insurance by state agencies.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Chapter 104, Civil Practice and Remedies Code, is
1-12 amended by adding Section 104.009 to read as follows:
1-13 Sec. 104.009. DIRECTORS' AND OFFICERS' LIABILITY INSURANCE.
1-14 (a) A state agency, institution, or department may purchase a
1-15 directors' and officers' liability insurance policy applicable to
1-16 damages for conduct described under Section 104.002 and other
1-17 conduct customarily covered under directors' and officers'
1-18 liability insurance policies for the benefit of:
1-19 (1) a director or officer of the agency, institution,
1-20 or department;
1-21 (2) a member of a governing board, commission, or
1-22 council of the agency, institution, or department; or
1-23 (3) a member of the executive staff of the agency,
1-24 institution, or department.
1-25 (b) An insurance policy purchased under this section must
1-26 have a deductible applicable to the liability of the state agency,
1-27 institution, or department in an amount equal to the amount of the
1-28 limits of liability established under Section 104.003. The
1-29 deductible applicable to an individual's liability may be set at a
1-30 lower amount.
1-31 (c) The purchase of an insurance policy under this section
1-32 does not waive a defense, immunity, or jurisdictional bar available
1-33 to the state agency, institution, or department purchasing the
1-34 insurance or to the insured.
1-35 SECTION 2. Section 104.003(b), Civil Practice and Remedies
1-36 Code, is amended to read as follows:
1-37 (b) The state is not liable under this chapter to the extent
1-38 that damages are recoverable under and are in excess of the
1-39 deductible limits of:
1-40 (1) a contract of insurance; or
1-41 (2) [under] a plan of self-insurance authorized by
1-42 statute.
1-43 SECTION 3. The importance of this legislation and the
1-44 crowded condition of the calendars in both houses create an
1-45 emergency and an imperative public necessity that the
1-46 constitutional rule requiring bills to be read on three several
1-47 days in each house be suspended, and this rule is hereby suspended,
1-48 and that this Act take effect and be in force from and after its
1-49 passage, and it is so enacted.
1-50 * * * * *