HBA-NRS H.B. 2301 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2301 By: Craddick Civil Practices 3/13/2001 Introduced BACKGROUND AND PURPOSE Current law states that school districts do not have sovereign immunity, but do have statutory sovereign immunity limiting liability for damages, including personal injury or death, caused by an employee of that school district or as result of the operation of a motor vehicle by an employee of that district. School districts are authorized to purchase insurance policies protecting the school district and its employees against tort claims, such as claims arising from athletic injuries or death. House Bill 2301 provides that a school district is liable to a claimant for damages arising from the bodily injury to or death of a student and authorizes each school district to purchase liability insurance. 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. ANALYSIS House Bill 2301 amends the Education Code to provide that a school district is liable to a claimant for damages arising from the bodily injury to or death of a person (damages) if the person is a student of the district or another school district and the person is on property owned or otherwise under the control of the district and under the supervision of an employee or volunteer of the school district or participating in an activity conducted under the authority of the district. A school district is liable to a claimant for damages only to the extent the school district has purchased liability insurance that indemnifies the district for the district's liability. The bill provides that a school district is not liable to the extent that the damages for bodily injury or death exceed the limit of an insurance policy otherwise available to pay the claim and is not liable for a claim for damages that are excluded from coverage or not otherwise covered under an insurance policy. A school district's immunity from liability is waived and abolished only to the extent that the district's purchased liability insurance indemnifies the district. The bill authorizes a school district to purchase insurance to provide coverage for liability for damages arising from the bodily injury to or death of a student and related costs incurred by the district, including defense costs. The bill provides that provisions relating to tort claims and the liability of a governmental unit do not apply to a claim for which a school district is liable. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.