By:  Fraser                                   S.B. No. 428

         97S0300/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the liability of landowners and others to certain

 1-2     persons for personal injuries or property damage.

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

 1-4           SECTION 1.  Sections 75.001 through 75.004, Civil Practice

 1-5     and Remedies Code, are designated as Subchapter A of Chapter 75,

 1-6     Civil Practice and Remedies Code, and a new heading is added to

 1-7     read as follows:

 1-8         SUBCHAPTER A.  GENERAL LIMITATIONS ON LANDOWNERS' LIABILITY

 1-9           SECTION 2.  Sections 75.001 and 75.002, Civil Practice and

1-10     Remedies Code, are amended to read as follows:

1-11           Sec. 75.001.  DEFINITIONS.  In this chapter:

1-12                 (1)  "Charitable use" means the use of premises by:

1-13                       (A)  an organization exempt from federal income

1-14     tax under Section 501(a) of the Internal Revenue Code of 1986; or

1-15                       (B)  a homeowners association as defined by

1-16     Section 528(c) of the Internal Revenue Code of 1986 ["Agricultural

1-17     land" means land that is located in this state and that is suitable

1-18     for:]

1-19                       [(A)  use in production of plants and fruits

1-20     grown for human or animal consumption, or plants grown for the

1-21     production of fibers, floriculture, viticulture, horticulture, or

1-22     planting seed;]

1-23                       [(B)  forestry and the growing of trees for the

 2-1     purpose of rendering those trees into lumber, fiber, or other items

 2-2     used for industrial, commercial, or personal consumption; or]

 2-3                       [(C)  domestic or native farm or ranch animals

 2-4     kept for use or profit].

 2-5                 (2)  "Claimant" means a party, including a plaintiff,

 2-6     counterclaimant, cross-claimant, or third-party claimant, seeking

 2-7     recovery of damages.

 2-8                 (3)  "Governmental unit" has the meaning assigned by

 2-9     Section 101.001.

2-10                 (4)  "Gross negligence" means:

2-11                       (A)  a specific intent by the defendant to cause

2-12     substantial injury to the claimant; or

2-13                       (B)  an act or omission:

2-14                             (i)  which when viewed objectively from the

2-15     standpoint of the actor at the time of its occurrence involves an

2-16     extreme degree of risk, considering the probability and magnitude

2-17     of the potential harm to others; and

2-18                             (ii)  of which the actor has actual,

2-19     subjective awareness of the risk involved but nevertheless proceeds

2-20     with conscious indifference to the rights, safety, or welfare of

2-21     others.

2-22                 (5)  "Landowner" means an owner, lessee, or occupant of

2-23     premises or a person who manages or controls the premises.

2-24                 (6)  "Nonbusiness purpose" means:

2-25                       (A)  recreation; or

 3-1                       (B)  a charitable use.

 3-2                 (7)  "Premises" includes real property, land and any

 3-3     improvements to the land, roads, water, watercourse, private ways,

 3-4     and buildings, structures, machinery, and equipment attached to or

 3-5     located on the land, road, water, watercourse, or private way.

 3-6                 (8) [(3)]  "Recreation" means any [an] activity

 3-7     undertaken for the purpose of physical exercise, education,

 3-8     relaxation, or pleasure, including activities such as sports,

 3-9     hunting, fishing, swimming, boating, camping, picnicking, hiking,

3-10     pleasure driving, nature study, cave exploration, jogging, [and]

3-11     waterskiing and other water sports, and viewing or enjoying

3-12     natural, historical, archeological, scenic, or scientific sites.

3-13                 [(4)  "Governmental unit" has the meaning assigned by

3-14     Section 101.001.]

3-15           Sec. 75.002.  LIABILITY LIMITED.  (a)  A landowner [An owner,

3-16     lessee, or occupant of agricultural land]:

3-17                 (1)  does not owe a duty of care to a trespasser on the

3-18     premises [land]; and

3-19                 (2)  is not liable for any injury to a trespasser on

3-20     the premises [land], except for an injury proximately caused by the

3-21     wilful or wanton acts or gross negligence of [by] the landowner

3-22     [owner, lessee, or other occupant of agricultural land].

3-23           (b)  If a landowner [an owner, lessee, or occupant of

3-24     agricultural land] gives permission to another to enter the

3-25     premises for a nonbusiness purpose [recreation], the landowner

 4-1     [owner, lessee, or occupant], by giving the permission, does not:

 4-2                 (1)  assure that the premises are safe for that

 4-3     purpose;

 4-4                 (2)  owe to the person to whom permission is granted a

 4-5     greater degree of care than is owed to a trespasser on the

 4-6     premises; or

 4-7                 (3)  assume responsibility or incur liability for any

 4-8     injury to any individual or property caused by any act of the

 4-9     person to whom permission is granted.

4-10           (c)  [If an owner, lessee, or occupant of real property other

4-11     than agricultural land gives permission to another to enter the

4-12     premises for recreation, the owner, lessee, or occupant, by giving

4-13     the permission, does not:]

4-14                 [(1)  assure that the premises are safe for that

4-15     purpose;]

4-16                 [(2)  owe to the person to whom permission is granted a

4-17     greater degree of care than is owed to a trespasser on the

4-18     premises; or]

4-19                 [(3)  assume responsibility or incur liability for any

4-20     injury to any individual or property caused by any act of the

4-21     person to whom permission is granted.]

4-22           [(d)]  Subsections (a) and[,] (b)[, and (c)] shall not limit

4-23     the liability of a landowner [an owner, lessee, or occupant of real

4-24     property] who has been grossly negligent or has acted with

4-25     malicious intent or in bad faith.

 5-1           SECTION 3.  Subsections (a), (b), and (c), Section 75.003,

 5-2     Civil Practice and Remedies Code, are amended to read as follows:

 5-3           (a)  This chapter does not relieve any landowner [owner,

 5-4     lessee, or occupant of real property] of any liability that would

 5-5     otherwise exist for deliberate, wilful, or malicious injury to a

 5-6     person or to property.

 5-7           (b)  The [This chapter does not affect the] doctrine of

 5-8     attractive nuisance[, except that the doctrine] may not be the

 5-9     basis for liability of a landowner [an owner, lessee, or occupant

5-10     of agricultural land] for any injury to a person engaged in a

5-11     nonbusiness purpose on the premises [trespasser over the age of 16

5-12     years].

5-13           (c)  Except for a governmental unit, this chapter applies

5-14     only to a landowner [an owner, lessee, or occupant of real

5-15     property] who:

5-16                 (1)  does not charge for entry to the premises;

5-17                 (2)  charges for entry to the premises, but whose total

5-18     charges collected in the previous calendar year for all

5-19     recreational use of the entire premises of the landowner [owner,

5-20     lessee, or occupant] are not more than twice the total amount of ad

5-21     valorem taxes imposed on the premises for the previous calendar

5-22     year; or

5-23                 (3)  has liability insurance coverage in effect on an

5-24     act or omission described by Section 75.004(a) and in the amounts

5-25     equal to or greater than those provided by that section.

 6-1           SECTION 4.  Subsections (a) and (b), Section 75.004, Civil

 6-2     Practice and Remedies Code, are amended to read as follows:

 6-3           (a)  Subject to Subsection (b), the liability of a landowner

 6-4     [an owner, lessee, or occupant of land] for an act or omission by

 6-5     the landowner [owner, lessee, or occupant] relating to the premises

 6-6     that results in damages to a person who has entered the premises is

 6-7     limited to a maximum amount of $500,000 for each person and $1

 6-8     million for each single occurrence of bodily injury or death and

 6-9     $100,000 for each single occurrence for injury to or destruction of

6-10     property.

6-11           (b)  This section applies only to a landowner [an owner,

6-12     lessee, or occupant of land] who has liability insurance coverage

6-13     in effect on an act or omission described by Subsection (a) and in

6-14     the amounts equal to or greater than those provided by Subsection

6-15     (a).  The coverage may be provided under a contract of insurance or

6-16     other plan of insurance authorized by statute.

6-17           SECTION 5.  Chapter 75, Civil Practice and Remedies Code, is

6-18     amended by adding Subchapter B to read as follows:

6-19           SUBCHAPTER B.  LIMITATION OF LANDOWNER'S LIABILITY FOR

6-20                       CRIMINAL ACTS OF ANOTHER PERSON

6-21           Sec. 75.051.  APPLICABILITY.  This subchapter does not apply

6-22     to a cause of action for a toxic tort as defined by Section

6-23     33.011(7).

6-24           Sec. 75.052.  LIABILITY LIMITED.  (a)  A landowner is not

6-25     liable for property damage or damages arising from the personal

 7-1     injury or death of a claimant that results from a criminal act

 7-2     unless:

 7-3                 (1)  the landowner was grossly negligent; and

 7-4                 (2)  the landowner's gross negligence was a proximate

 7-5     cause of the criminal act.

 7-6           Sec. 75.053.  EXEMPTION LIMITED.  (a)  The exemption provided

 7-7     by Section 75.052 does not apply if:

 7-8                 (1)  the criminal act was committed by an employee of

 7-9     the landowner;

7-10                 (2)  the landowner is criminally responsible as a party

7-11     to the criminal act under Chapter 7, Penal Code;

7-12                 (3)  the criminal act occurred at a location where, at

7-13     the time of the criminal act, the landowner was maintaining a

7-14     common nuisance under Chapter 125 and had not made reasonable

7-15     attempts to abate the nuisance; or

7-16                 (4)  the criminal act resulted from the landowner's

7-17     intentional or knowing violation of a statutory duty under

7-18     Subchapter D, Chapter 92, Property Code, and the criminal act

7-19     occurred after the statutory deadline for compliance with that

7-20     duty.

7-21           (b)  In an action arising out of a criminal act committed by

7-22     an employee of the landowner, the landowner may be liable for

7-23     damages, but only if:

7-24                 (1)  the landowner authorized the doing and the manner

7-25     of the act;

 8-1                 (2)  the employee was unfit and the landowner acted

 8-2     with gross negligence in employing or retaining the employee;

 8-3                 (3)  the employee was employed in a managerial capacity

 8-4     and was acting in the scope of the employee's employment; or

 8-5                 (4)  the landowner or a manager of the landowner

 8-6     ratified or approved the act.

 8-7           SECTION 6.  (a)  This Act takes effect September 1, 1997, and

 8-8     applies to all actions:

 8-9                 (1)  filed on or after the effective date of this Act;

8-10     or

8-11                 (2)  pending on the effective date of this Act and in

8-12     which the trial, or any new trial or retrial following motion,

8-13     appeal, or otherwise, begins on or after that date.

8-14           (b)  In an action filed before the effective date of this

8-15     Act, a trial, new trial, or retrial that is in progress on the

8-16     effective date of this Act is governed by the applicable law in

8-17     effect immediately before that date, and that law is continued in

8-18     effect for that purpose.

8-19           SECTION 7.  The importance of this legislation and the

8-20     crowded condition of the calendars in both houses create an

8-21     emergency and an imperative public necessity that the

8-22     constitutional rule requiring bills to be read on three several

8-23     days in each house be suspended, and this rule is hereby suspended.