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.