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.