By Christian                                          H.B. No. 2933
         76R7055 DLF-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the liability of clergy members for damages arising
 1-3     from certain counseling, teaching, and instruction.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 84, Civil Practice and Remedies Code, is
 1-6     amended by adding Subchapter B to read as follows:
 1-7                  SUBCHAPTER B. LIABILITY OF CLERGY MEMBER
 1-8           Sec. 84.051.  DEFINITIONS. In this subchapter:
 1-9                 (1)  "Clergy member" means a licensed or ordained
1-10     Christian minister or priest, a Jewish rabbi, or another person who
1-11     is an officer of a religious organization and who is authorized by
1-12     the organization to conduct a marriage ceremony.
1-13                 (2)  "Good faith" has the meaning assigned by Section
1-14     84.003.
1-15           Sec. 84.052.  CLERGY MEMBER LIABILITY.  (a)  Except as
1-16     provided by Subsection (b) and Section 84.053, a clergy member is
1-17     immune from civil liability for any act or omission resulting in
1-18     death, damage, or injury if:
1-19                 (1)  the death, damage, or injury results from
1-20     religious, moral, and spiritual counseling, teaching, or
1-21     instruction or other counseling, teaching, or instruction, such as
1-22     marital counseling, performed in the course and scope of the clergy
1-23     member's duties as a clergy member; and
1-24                 (2)  the clergy member was acting in good faith in
 2-1     providing the counseling, teaching, or instruction described by
 2-2     Subdivision (1).
 2-3           (b)  A clergy member is liable to a person for death, damage,
 2-4     or injury to the person or the person's property proximately caused
 2-5     by any act or omission arising from the operation or use of
 2-6     motor-driven equipment, including an airplane, to the extent
 2-7     insurance coverage is required by Chapter 601, Transportation Code,
 2-8     and to the extent of any existing insurance coverage applicable to
 2-9     the act or omission.
2-10           Sec. 84.053.  APPLICABILITY.  (a)  This subchapter does not
2-11     apply to an act or omission that is intentional, wilfully or
2-12     wantonly negligent, or done with conscious indifference or reckless
2-13     disregard for the safety of others.
2-14           (b)  This subchapter does not apply to a claim made under
2-15     Chapter 81.
2-16           SECTION 2.  Sections 84.001-84.008, Civil Practice and
2-17     Remedies Code, are redesignated as Subchapter A, Chapter 84, Civil
2-18     Practice and Remedies Code, and a new subchapter heading is added
2-19     to read as follows:
2-20            SUBCHAPTER A.  CHARITABLE IMMUNITY AND LIABILITY ACT
2-21           SECTION 3.  Sections 84.001 and 84.003, Civil Practice and
2-22     Remedies Code, are amended to read as follows:
2-23           Sec. 84.001.  NAME OF ACT.  This subchapter [Act] may be
2-24     cited as the Charitable Immunity and Liability Act [of 1987].
2-25           Sec. 84.003.  DEFINITIONS. In this subchapter [chapter]:
2-26                 (1)  "Charitable organization" means:
2-27                       (A)  any organization exempt from federal income
 3-1     tax under Section 501(a) of the Internal Revenue Code of 1986 by
 3-2     being listed as an exempt organization in Section 501(c)(3) or
 3-3     501(c)(4) of the code, if it is a nonprofit corporation,
 3-4     foundation, community chest, or fund organized and operated
 3-5     exclusively for charitable, religious, prevention of cruelty to
 3-6     children or animals, youth sports and youth recreational,
 3-7     neighborhood crime prevention or patrol, or educational purposes,
 3-8     excluding private primary or secondary schools, alumni associations
 3-9     and related on-campus organizations, or is organized and operated
3-10     exclusively for the promotion of social welfare by being primarily
3-11     engaged in promoting the common good and general welfare of the
3-12     people in a community;
3-13                       (B)  any bona fide charitable, religious,
3-14     prevention of cruelty to children or animals, youth sports and
3-15     youth recreational, neighborhood crime prevention or patrol, or
3-16     educational organization, excluding alumni associations and related
3-17     on-campus organizations, or other organization organized and
3-18     operated exclusively for the promotion of social welfare by being
3-19     primarily engaged in promoting the common good and general welfare
3-20     of the people in a community, and that:
3-21                             (i)  is organized and operated exclusively
3-22     for one or more of the above purposes;
3-23                             (ii)  does not engage in activities which
3-24     in themselves are not in furtherance of the purpose or purposes;
3-25                             (iii)  does not directly or indirectly
3-26     participate or intervene in any political campaign on behalf of or
3-27     in opposition to any candidate for public office;
 4-1                             (iv)  dedicates its assets to achieving the
 4-2     stated purpose or purposes of the organization;
 4-3                             (v)  does not allow any part of its net
 4-4     assets on dissolution of the organization to inure to the benefit
 4-5     of any group, shareholder, or individual; and
 4-6                             (vi)  normally receives more than one-third
 4-7     of its support in any year from private or public gifts, grants,
 4-8     contributions, or membership fees; or
 4-9                       (C)  a homeowners association as defined by
4-10     Section 528(c) of the Internal Revenue Code of 1986.
4-11                 (2)  "Volunteer" means a person rendering services for
4-12     or on behalf of a charitable organization who does not receive
4-13     compensation in excess of reimbursement for expenses incurred, and
4-14     such term includes a person serving as a director, officer,
4-15     trustee, or direct service volunteer.
4-16                 (3)  "Employee" means any person, including an officer
4-17     or director, who is in the paid service of a charitable
4-18     organization, but does not include an independent contractor.
4-19                 (4)  "Good faith" means the honest, conscientious
4-20     pursuit of activities and purposes that the organization is
4-21     organized and operated to provide.
4-22           SECTION 4.  Sections 84.007(a), (b), (c), (d),  (f), and (g),
4-23     Civil Practice and Remedies Code, are amended to read as follows:
4-24           (a)  This subchapter [chapter] does not apply to an act or
4-25     omission that is intentional, wilfully or wantonly negligent, or
4-26     done with conscious indifference or reckless disregard for the
4-27     safety of others.
 5-1           (b)  This subchapter [chapter] does not limit or modify the
 5-2     duties or liabilities of a member of the board of directors or an
 5-3     officer to the organization or its members and shareholders.
 5-4           (c)  This subchapter [chapter] does not limit the liability
 5-5     of an organization or its employees or volunteers if the
 5-6     organization was formed substantially to limit its liability under
 5-7     this subchapter [chapter].
 5-8           (d)  This subchapter [chapter] does not apply to
 5-9     organizations formed to dispose, remove, or store hazardous waste,
5-10     industrial solid waste, radioactive waste, municipal solid waste,
5-11     garbage, or sludge as those terms are defined under applicable
5-12     state and federal law.  This subsection shall be liberally
5-13     construed to effectuate its purpose.
5-14           (f)  This subchapter [chapter] does not apply to a
5-15     governmental unit or employee of a governmental unit as defined in
5-16     [the Texas Tort Claims Act (Subchapter A,] Chapter 101[, Civil
5-17     Practice and Remedies Code)].
5-18           (g)  Sections 84.005 and 84.006 [of this Act] do not apply to
5-19     any charitable organization that does not have liability insurance
5-20     coverage in effect on any act or omission to which this chapter
5-21     applies.  The coverage shall apply to the acts or omissions of the
5-22     organization and its employees and volunteers and be in the amount
5-23     of at least $500,000 for each person and $1,000,000 for each single
5-24     occurrence for death or bodily injury and $100,000 for each single
5-25     occurrence for injury to or destruction of property.  The coverage
5-26     may be provided under a contract of insurance or other plan of
5-27     insurance authorized by statute and may be satisfied by the
 6-1     purchase of a $1,000,000 bodily injury and property damage combined
 6-2     single limit policy.  Nothing in this subchapter [chapter] shall
 6-3     limit liability of any insurer or insurance plan in an action under
 6-4     Chapter 21, Insurance Code, or in an action for bad faith conduct,
 6-5     breach of fiduciary duty, or negligent failure to settle a claim.
 6-6           SECTION 5.  Section 84.008, Civil Practice and Remedies Code,
 6-7     is amended to read as follows:
 6-8           Sec. 84.008.  SEVERABILITY.  If any clause or provision of
 6-9     this subchapter [chapter] or its application to any person or
6-10     organization is held unconstitutional, such invalidity does not
6-11     affect other clauses, provisions, or applications of this
6-12     subchapter [chapter] that can be given effect without the invalid
6-13     clause or provision and shall not affect or nullify the remainder
6-14     of the subchapter [Act] or any other clause or provision, but the
6-15     effect shall be confined to the clause or provision held to be
6-16     invalid or unconstitutional and to this end the subchapter [Act] is
6-17     declared to be severable.
6-18           SECTION 6.  This Act takes effect September 1, 1999.
6-19           SECTION 7.  This Act applies only to a cause of action that
6-20     accrues on or after the effective date of this Act. A cause of
6-21     action that accrues before the effective date of this Act is
6-22     governed by the law as it existed immediately before the effective
6-23     date of this Act, and that law is continued in effect for that
6-24     purpose.
6-25           SECTION 8.  The importance of this legislation and the
6-26     crowded condition of the calendars in both houses create an
6-27     emergency and an imperative public necessity that the
 7-1     constitutional rule requiring bills to be read on three several
 7-2     days in each house be suspended, and this rule is hereby suspended.