1-1     By:  Duncan                                            S.B. No. 455

 1-2           (In the Senate - Filed February 5, 1997; February 10, 1997,

 1-3     read first time and referred to Committee on Economic Development;

 1-4     March 24, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 10, Nays 0; March 24, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 455                   By:  Duncan

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to liability insurance coverage for a charitable

1-11     organization.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Subsection (g), Section 84.007, Civil Practice

1-14     and Remedies Code, is amended to read as follows:

1-15           (g)  Sections 84.005 and 84.006 of this Act [do not] apply to

1-16     any charitable organization that has [does not have] liability

1-17     insurance coverage in effect for an [on any] act or omission for

1-18     which recovery is sought and to which this chapter applies.  The

1-19     coverage shall apply to the acts or omissions of the organization

1-20     and its employees and volunteers and be in the amount of at least

1-21     $500,000 for each person and $1,000,000 for each single occurrence

1-22     for death or bodily injury and $100,000 for each single occurrence

1-23     for injury to or destruction of property.  The coverage may be

1-24     provided under a contract of insurance or other plan of insurance

1-25     authorized by statute and may be satisfied by the purchase of a

1-26     $1,000,000 bodily injury and property damage combined single limit

1-27     policy.  Nothing in this chapter shall limit liability of any

1-28     insurer or insurance plan in an action under Chapter 21, Insurance

1-29     Code, or in an action for bad faith conduct, breach of fiduciary

1-30     duty, or negligent failure to settle a claim.

1-31           SECTION 2.  The importance of this legislation and the

1-32     crowded condition of the calendars in both houses create an

1-33     emergency and an imperative public necessity that the

1-34     constitutional rule requiring bills to be read on three several

1-35     days in each house be suspended, and this rule is hereby suspended,

1-36     and that this Act take effect and be in force from and after its

1-37     passage, and it is so enacted.

1-38                                  * * * * *