By Keffer                                             H.B. No. 2841
         76R4789 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the liability of certain charitable organizations and
 1-3     their employees for certain acts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 84.005, Civil Practice and Remedies Code,
 1-6     is amended to read as follows:
 1-7           Sec. 84.005.  EMPLOYEE LIABILITY.  Except as provided in
 1-8     Section 84.007 [of this Act], in any civil action brought against
 1-9     an employee of a nonhospital charitable organization for damages
1-10     based on an act or omission by the person in the course and scope
1-11     of the person's employment, the liability of the employee is
1-12     limited to:
1-13                 (1)  money damages in a maximum amount of $500,000 for
1-14     each person and $1,000,000 for each single occurrence of bodily
1-15     injury or death and  $100,000 for each single occurrence for injury
1-16     to or destruction of property; or
1-17                 (2)  if the damages arise from the operation or use of
1-18     any motor-driven equipment, including an airplane, money damages in
1-19     a maximum amount equal to the amount of:
1-20                       (A)  insurance coverage required by Chapter 601,
1-21     Transportation Code; and
1-22                       (B)  any existing insurance coverage applicable
1-23     to the act or omission.
1-24           SECTION 2.  Section 84.006, Civil Practice and Remedies Code,
 2-1     is amended to read as follows:
 2-2           Sec. 84.006.  ORGANIZATION LIABILITY.  Except as provided in
 2-3     Section 84.007 [of this Act], in any civil action brought against a
 2-4     nonhospital charitable organization for damages based on an act or
 2-5     omission by the organization or its employees or volunteers, the
 2-6     liability of the organization is limited to:
 2-7                 (1)  money damages in a maximum amount of $500,000 for
 2-8     each person and $1,000,000 for each single occurrence of bodily
 2-9     injury or death and  $100,000 for each single occurrence for injury
2-10     to or destruction of property; or
2-11                 (2)  if the damages arise from the operation or use of
2-12     any motor-driven equipment, including an airplane, money damages in
2-13     a maximum amount equal to the amount of:
2-14                       (A)  insurance coverage required by Chapter 601,
2-15     Transportation Code; and
2-16                       (B)  any existing insurance coverage applicable
2-17     to the act or omission.
2-18           SECTION 3.  Section 84.007, Civil Practice and Remedies Code,
2-19     is amended by amending Subsection (g) and adding Subsection (h) to
2-20     read as follows:
2-21           (g)  Sections 84.005(1) and 84.006(1) [of this Act] do not
2-22     apply to any charitable organization that does not have liability
2-23     insurance  coverage in effect on any act or omission to which this
2-24     chapter applies.  The coverage shall apply to the acts or omissions
2-25     of the organization and its employees and volunteers and be in the
2-26     amount of at least $500,000 for each person and $1,000,000 for each
2-27     single occurrence for death or bodily injury and $100,000 for each
 3-1     single occurrence for injury to or destruction of property.  The
 3-2     coverage may be provided under a contract of insurance or other
 3-3     plan of insurance authorized by statute and may be satisfied by the
 3-4     purchase of a $1,000,000 bodily injury and property damage combined
 3-5     single limit policy.  Nothing in this chapter shall limit liability
 3-6     of any insurer or insurance plan in an action under Chapter 21,
 3-7     Insurance Code, or in an action for bad faith conduct, breach of
 3-8     fiduciary duty, or negligent failure to settle a claim.
 3-9           (h)  Sections 84.005(2) and 84.006(2) apply only to a
3-10     charitable organization that carries minimum liability insurance
3-11     coverage for damages arising from the operation or use of any
3-12     motor-driven equipment, including an airplane, by its employees or
3-13     volunteers.  The coverage must be in the amount of at least $50,000
3-14     for each person and $100,000 for each single occurrence for death
3-15     or bodily injury and $25,000 for each single occurrence for injury
3-16     to or destruction of property.
3-17           SECTION 4.  This Act takes effect September 1, 1999, and
3-18     applies only to a cause of action that accrues on or after that
3-19     date.  An action that accrued before the effective date of this Act
3-20     is governed by the law applicable to the action immediately before
3-21     the effective date of this Act, and that law is continued in effect
3-22     for that purpose.
3-23           SECTION 5.  The importance of this legislation and the
3-24     crowded condition of the calendars in both houses create an
3-25     emergency and an imperative public necessity that the
3-26     constitutional rule requiring bills to be read on three several
3-27     days in each house be suspended, and this rule is hereby suspended.