AN ACT

 1-1     relating to liability insurance coverage for a charitable

 1-2     organization.

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

 1-4           SECTION 1.  Subsection (g), Section 84.007, Civil Practice

 1-5     and Remedies Code, is amended to read as follows:

 1-6           (g)  Sections 84.005 and 84.006 of this Act do not apply to

 1-7     any charitable organization that does not have liability insurance

 1-8     coverage in effect on any act or omission to which this chapter

 1-9     applies.  The coverage shall apply to the acts or omissions of the

1-10     organization and its employees and volunteers and be in the amount

1-11     of at least $500,000 for each person and $1,000,000 for each single

1-12     occurrence for death or bodily injury and $100,000 for each single

1-13     occurrence for injury to or destruction of property.  The coverage

1-14     may be provided under a contract of insurance or other plan of

1-15     insurance authorized by statute and may be satisfied by the

1-16     purchase of a $1,000,000 bodily injury and property damage combined

1-17     single limit policy.  Nothing in this chapter shall limit liability

1-18     of any insurer or insurance plan in an action under Chapter 21,

1-19     Insurance Code, or in an action for bad faith conduct, breach of

1-20     fiduciary duty, or negligent failure to settle a claim.

1-21           SECTION 2.  The importance of this legislation and the

1-22     crowded condition of the calendars in both houses create an

1-23     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended,

 2-3     and that this Act take effect and be in force from and after its

 2-4     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 455 passed the Senate on

         April 3, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendment on May 27, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 455 passed the House, with

         amendment, on May 23, 1997, by the following vote:  Yeas 122,

         Nays 0, one present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor