By Christian H.B. No. 2934
76R6583 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the liability of certain persons performing volunteer
1-3 or charitable services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 84.003, Civil Practice and Remedies Code,
1-6 is amended by amending Subdivisions (1) and (2) and adding
1-7 Subdivision (5) to read as follows:
1-8 (1) "Charitable organization" means:
1-9 (A) any organization exempt from federal income
1-10 tax under Section 501(a) of the Internal Revenue Code of 1986 by
1-11 being listed as an exempt organization in Section 501(c)(3) or
1-12 501(c)(4) of the code[, if it is a nonprofit corporation,
1-13 foundation, community chest, or fund organized and operated
1-14 exclusively for charitable, religious, prevention of cruelty to
1-15 children or animals, youth sports and youth recreational,
1-16 neighborhood crime prevention or patrol, or educational purposes,
1-17 excluding private primary or secondary schools, alumni associations
1-18 and related on-campus organizations, or is organized and operated
1-19 exclusively for the promotion of social welfare by being primarily
1-20 engaged in promoting the common good and general welfare of the
1-21 people in a community];
1-22 (B) any bona fide charitable, religious,
1-23 prevention of cruelty to children or animals, youth sports and
1-24 youth recreational, neighborhood crime prevention or patrol, or
2-1 educational organization[, excluding alumni associations and
2-2 related on-campus organizations], or other organization organized
2-3 and operated exclusively for the promotion of social welfare by
2-4 being primarily engaged in promoting the common good and general
2-5 welfare of the people in a community, and that:
2-6 (i) is organized and operated exclusively
2-7 for one or more of the above purposes;
2-8 (ii) does not engage in activities which
2-9 in themselves are not in furtherance of the purpose or purposes;
2-10 (iii) does not directly or indirectly
2-11 participate or intervene in any political campaign on behalf of or
2-12 in opposition to any candidate for public office;
2-13 (iv) dedicates its assets to achieving the
2-14 stated purpose or purposes of the organization;
2-15 (v) does not allow any part of its net
2-16 assets on dissolution of the organization to inure to the benefit
2-17 of any group, other than a group with a similar purpose,
2-18 shareholder, or individual; and
2-19 (vi) normally receives more than one-third
2-20 of its support in any year from private or public gifts, grants,
2-21 contributions, or membership fees; or
2-22 (C) a homeowners association as defined by
2-23 Section 528(c) of the Internal Revenue Code of 1986.
2-24 (2) "Volunteer" means a person rendering services for
2-25 or on behalf of a charitable organization or a governmental unit
2-26 who does not receive compensation in excess of reimbursement for
2-27 expenses incurred, or any other thing of value in place of
3-1 compensation in excess of $500 per year, and such term includes a
3-2 person serving as a director, officer, trustee, or direct service
3-3 volunteer.
3-4 (5) "Governmental unit" has the meaning assigned by
3-5 Section 101.001.
3-6 SECTION 2. Section 84.004, Civil Practice and Remedies Code,
3-7 is amended to read as follows:
3-8 Sec. 84.004. VOLUNTEER LIABILITY. (a) Except as provided
3-9 by Subsection (c) [of this section] and Section 84.007 [of this
3-10 Act], a volunteer who is serving as an officer, director, or
3-11 trustee of a charitable organization or governmental unit is immune
3-12 from civil liability for any act or omission resulting in death,
3-13 damage, or injury if the volunteer was acting in the course and
3-14 scope of his duties or functions as an officer, director, or
3-15 trustee within the organization or governmental unit.
3-16 (b) Except as provided by Subsection (c) [of this section]
3-17 and Section 84.007 [of this Act], a volunteer who is serving as a
3-18 direct service volunteer of a charitable organization or
3-19 governmental unit is immune from civil liability for any act or
3-20 omission resulting in death, damage, or injury if the volunteer was
3-21 acting in good faith and in the course and scope of his duties or
3-22 functions within the organization or governmental unit.
3-23 (c) A volunteer of a charitable organization or governmental
3-24 unit is liable to a person for death, damage, or injury to the
3-25 person or his property proximately caused by any act or omission
3-26 arising from the operation or use of any motor-driven equipment,
3-27 including an airplane, to the extent insurance coverage is required
4-1 by Chapter 601, Transportation Code, and to the extent of any
4-2 existing insurance coverage applicable to the act or omission.
4-3 (d) The provisions of this section apply only to the
4-4 liability of volunteers and do not apply to the liability of the
4-5 organization or governmental unit for acts or omissions of
4-6 volunteers.
4-7 SECTION 3. Section 84.007, Civil Practice and Remedies Code,
4-8 is amended by amending Subsections (e), (f), and (g) and adding
4-9 Subsection (h) to read as follows:
4-10 (e) This chapter does not apply to the activity or service
4-11 of a volunteer, employee, or charitable organization that is not
4-12 licensed, certified, or otherwise authorized by an appropriate
4-13 authority in this state to carry out the activity or service.
4-14 [Sections 84.005 and 84.006 of this chapter do not apply to a
4-15 health care provider as defined in the Medical Liability and
4-16 Insurance Improvement Act of Texas (Article 4590i, Vernon's Texas
4-17 Civil Statutes), unless the provider is a federally funded migrant
4-18 or community health center under the Public Health Service Act (42
4-19 U.S.C.A. Sections 254(b) and (c)) or is a nonprofit health
4-20 maintenance organization created and operated by a community center
4-21 under Section 534.101, Health and Safety Code, or unless the
4-22 provider usually provides discounted services at or below costs
4-23 based on the ability of the beneficiary to pay. Acceptance of
4-24 Medicare or Medicaid payments will not disqualify a health care
4-25 provider under this section. In no event shall Sections 84.005 and
4-26 84.006 of this chapter apply to a general hospital or special
4-27 hospital as defined in Chapter 241, Health and Safety Code, or a
5-1 facility or institution licensed under Subtitle C, Title 7, Health
5-2 and Safety Code, or Chapter 242, Health and Safety Code, or to any
5-3 health maintenance organization created and operating under the
5-4 Texas Health Maintenance Organization Act (Chapter 20A, Vernon's
5-5 Texas Insurance Code), except for a nonprofit health maintenance
5-6 organization created under Section 534.101, Health and Safety
5-7 Code.]
5-8 (f) This chapter does not apply to a governmental unit or
5-9 employee of a governmental unit [as defined in the Texas Tort
5-10 Claims Act (Subchapter A, Chapter 101, Civil Practice and Remedies
5-11 Code)].
5-12 (g) Sections 84.005 and 84.006 [of this Act] do not apply to
5-13 limit liability for damages arising from a cause of action for any
5-14 charitable organization that does not have liability insurance
5-15 coverage in effect on any act or omission to which this chapter
5-16 applies if the charitable organization has annual gross revenue in
5-17 an amount greater than $250,000 in the year preceding the year the
5-18 cause of action accrues. The coverage shall apply to the acts or
5-19 omissions of the organization and its employees and volunteers and
5-20 be in the amount of at least $500,000 for each person and
5-21 $1,000,000 for each single occurrence for death or bodily injury
5-22 and $100,000 for each single occurrence for injury to or
5-23 destruction of property. The coverage may be provided under a
5-24 contract of insurance or other plan of insurance authorized by
5-25 statute and may be satisfied by the purchase of a $1,000,000 bodily
5-26 injury and property damage combined single limit policy. Nothing
5-27 in this chapter shall limit liability of any insurer or insurance
6-1 plan in an action under Chapter 21, Insurance Code, or in an action
6-2 for bad faith conduct, breach of fiduciary duty, or negligent
6-3 failure to settle a claim.
6-4 (h) This chapter does not apply to any act or omission that:
6-5 (1) is a felony; or
6-6 (2) is a misdemeanor involving any offense:
6-7 (A) for which registration is required under
6-8 Chapter 62, Code of Criminal Procedure; or
6-9 (B) under Chapter 49, Penal Code, or Chapter
6-10 481, Health and Safety Code.
6-11 SECTION 4. This Act takes effect September 1, 1999, and
6-12 applies only to a cause of action that accrues on or after that
6-13 date. An action that accrued before the effective date of this Act
6-14 is governed by the law applicable to the action immediately before
6-15 the effective date of this Act, and that law is continued in effect
6-16 for that purpose.
6-17 SECTION 5. The importance of this legislation and the
6-18 crowded condition of the calendars in both houses create an
6-19 emergency and an imperative public necessity that the
6-20 constitutional rule requiring bills to be read on three several
6-21 days in each house be suspended, and this rule is hereby suspended.