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.