By Merritt                                      H.B. No. 2035

      75R2292 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to liability of employees of certain teen court programs.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 84.003, Civil Practice and Remedies Code,

 1-5     is amended by adding Subdivision (5) to read as follows:

 1-6                 (5)  "Teen court program" means a teen court program

 1-7     that is:

 1-8                       (A)  approved by a court under Article 45.55,

 1-9     Code of Criminal Procedure, or Section 54.032, Family Code; and

1-10                       (B)  operated by a charitable organization.

1-11           SECTION 2.  Section 84.005, Civil Practice and Remedies Code,

1-12     is amended to read as follows:

1-13           Sec. 84.005.  EMPLOYEE LIABILITY.  (a)  Except as provided in

1-14     Section 84.007 of this Act, in any civil action brought against  an

1-15     employee of a nonhospital charitable organization for damages based

1-16     on an act or omission by the person in the course and scope of the

1-17     person's employment, the liability of the employee is limited to

1-18     money damages in a maximum amount of $500,000 for each person and

1-19     $1,000,000 for each single occurrence of bodily injury or death and

1-20     $100,000 for each single occurrence for injury to or destruction of

1-21     property.

1-22           (b)  Except as provided in Section 84.007 of this Act, an

1-23     employee of a charitable organization that operates a teen court

1-24     program is immune from civil liability for any act or omission

 2-1     resulting in death, damage, or injury to a participant in a teen

 2-2     court program if the employee was acting within the course and

 2-3     scope of the person's employment.

 2-4           SECTION 3.  Section 84.007(g), Civil Practice and Remedies

 2-5     Code, is amended to read as follows:

 2-6           (g)  Sections 84.005(a) [84.005] and 84.006 of this Act do

 2-7     not apply to any charitable organization that does not have

 2-8     liability insurance coverage in effect on any act or omission to

 2-9     which this chapter applies.  The coverage shall apply to the acts

2-10     or omissions of the organization and its employees and volunteers

2-11     and be in the amount of at least $500,000 for each person and

2-12     $1,000,000 for each single occurrence for death or bodily injury

2-13     and $100,000 for each single occurrence for injury to or

2-14     destruction of property.  The coverage may be provided under a

2-15     contract of insurance or other plan of insurance authorized by

2-16     statute.  Nothing in this chapter shall limit liability of any

2-17     insurer or insurance plan in an action under Chapter 21, Insurance

2-18     Code, or in an action for bad faith conduct, breach of fiduciary

2-19     duty, or negligent failure to settle a claim.

2-20           SECTION 4.  This Act takes effect September 1, 1997, and

2-21     applies only to a cause of action that accrues on or after that

2-22     date.  A cause of action that accrues before the effective date of

2-23     this Act is governed by the law applicable to the cause of action

2-24     immediately before the effective date of this Act and that law is

2-25     continued in effect for that purpose.

2-26           SECTION 5.  The importance of this legislation and the

2-27     crowded condition of the calendars in both houses create an

 3-1     emergency and an imperative public necessity that the

 3-2     constitutional rule requiring bills to be read on three several

 3-3     days in each house be suspended, and this rule is hereby suspended.