HBA-ATS H.B. 2841 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2841 By: Keffer Civil Practices 4/26/1999 Introduced BACKGROUND AND PURPOSE Tort law governs the operation of motor vehicles on public roadways. Historically, immunity from tort litigation has been granted to charities, as codified in the Charitable Immunity and Liability Act of 1987 (Act). The Act limits the liability of a nonhospital charitable organization for damages based on an act or omission by the organization, its employees, or volunteers. Specifically excluded from the Act, however, is immunity from torts arising as a result of the operation of a motor vehicle. Potential liability for transporting people who rely on the services provided by charitable organizations may reduce the number of services provided by these organizations. H.B. 2841 limits the liability of an employee of a nonhospital charitable organization in a civil action for damages based on an act or omission of the employee in the course and scope of the person's employment, and the liability of a nonhospital charitable organization in a civil action for damages based on an act or omission by the organization or its employees or volunteers, to money damages in a maximum amount equal to the insurance coverage required by Chapter 601 (Motor Vehicle Safety Responsibility Act) Transportation Code, and any existing insurance coverage applicable to the act or omission, if the damages arise from the operation or use of any motor-driven equipment, including an airplane. However, these limitations on liability apply only to a charitable organization that carries minimum liability insurance coverage for damages arising from the operation or use of any motor-driven equipment, including an airplane, by its employees or volunteers. The coverage must be in the amount of at least $50,000 for each person and $100,000 for each single occurrence for death or bodily injury and $25,000 for each single occurrence for injury to or destruction of property. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 84.005, Civil Practice and Remedies Code, to include money damages in a maximum amount equal to the insurance coverage required by Chapter 601 (Motor Vehicle Safety Responsibility Act), Transportation Code, and any existing insurance coverage applicable to the act or omission, if the damages arise from the operation or use of any motor-driven equipment, including an airplane, among the provisions that limit the liability of an employee of a nonhospital charitable organization in a civil action for damages based on an act or omission of the employee in the course and scope of the person's employment. Makes conforming changes and a nonsubstantive change. SECTION 2. Amends Section 84.006, Civil Practice and Remedies Code, to include money damages in a maximum amount equal to the insurance coverage required by Chapter 601, Transportation Code, and any existing insurance coverage applicable to the act or omission, if the damages arise from the operation or use of any motor-driven equipment, including an airplane, among the provisions that limit the liability of a nonhospital charitable organization in a civil action for damages based on an act or omission by the organization or its employees or volunteers. Makes conforming changes and a nonsubstantive change. SECTION 3. Amends Section 84.007, Civil Practice and Remedies Code, by amending Subsection (g) and adding Subsection (h), as follows: (g) Provides that Sections 84.005(1) and 84.006(1), rather than Sections 84.005 and 84.006, do not apply to any charitable organization that does not have liability insurance coverage in effect on any act or omission to which this chapter (Charitable Immunity and Liability) applies. Makes a nonsubstantive change. (h) Provides that Sections 84.005(2) and 84.006(2) apply only to a charitable organization that carries minimum liability insurance coverage for damages arising from the operation or use of any motor-driven equipment, including an airplane, by its employees or volunteers. Provides that the coverage must be in the amount of at least $50,000 for each person and $100,000 for each single occurrence for death or bodily injury and $25,000 for each single occurrence for injury to or destruction of property. SECTION 4.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 5.Emergency clause.