Begun and held at the City of Washington on Tuesday, the seventh day of
January, one thousand nine hundred and ninety-seven
SECTION 1. SHORT TITLE.
This Act may be cited as the `Volunteer Protection Act of 1997'.
SECTION 2. FINDINGS AND PURPOSE.
(a) FINDINGS- The Congress finds and declares that--
(1) the willingness of volunteers to offer their services is
deterred by the potential for liability actions against them;
(2) as a result, many nonprofit public and private organizations
and governmental entities, including voluntary associations, social service
agencies, educational institutions, and other civic programs, have been
adversely affected by the withdrawal of volunteers from boards of directors
and service in other capacities;
(3) the contribution of these programs to their communities is
thereby diminished, resulting in fewer and higher cost programs than would
be obtainable if volunteers were participating;
(4) because Federal funds are expended on useful and
cost-effective social service programs, many of which are national in scope,
depend heavily on volunteer participation, and represent some of the most
successful public-private partnerships, protection of volunteerism through
clarification and limitation of the personal liability risks assumed by the
volunteer in connection with such participation is an appropriate subject
for Federal legislation;
(5) services and goods provided by volunteers and nonprofit
organizations would often otherwise be provided by private entities that
operate in interstate commerce;
(6) due to high liability costs and unwarranted litigation costs,
volunteers and nonprofit organizations face higher costs in purchasing
insurance, through interstate insurance markets, to cover their activities;
and
(7) clarifying and limiting the liability risk assumed by
volunteers is an appropriate subject for Federal legislation because--
(A) of the national scope of the problems created by the
legitimate fears of volunteers about frivolous, arbitrary, or capricious
lawsuits;
(B) the citizens of the United States depend on, and the Federal
Government expends funds on, and provides tax exemptions and other
consideration to, numerous social programs that depend on the services of
volunteers;
(C) it is in the interest of the Federal Government to encourage
the continued operation of volunteer service organizations and
contributions of volunteers because the Federal Government lacks the
capacity to carry out all of the services provided by such organizations
and volunteers; and
(D)(i) liability reform for volunteers, will promote the free
flow of goods and services, lessen burdens on interstate commerce and
uphold constitutionally protected due process rights; and (ii) therefore,
liability reform is an appropriate use of the powers contained in article
1, section 8, clause 3 of the United States Constitution, and the
fourteenth amendment to the United States Constitution.
(b) PURPOSE- The purpose of this Act is to promote the interests of
social service program beneficiaries and taxpayers and to sustain the
availability of programs, nonprofit organizations, and governmental entities
that depend on volunteer contributions by reforming the laws to provide
certain protections from liability abuses related to volunteers serving
nonprofit organizations and governmental entities.
SECTION 3. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.
(a) PREEMPTION- This Act preempts the laws of any State to the
extent that such laws are inconsistent with this Act, except that this Act
shall not preempt any State law that provides additional protection from
liability relating to volunteers or to any category of volunteers in the
performance of services for a nonprofit organization or governmental entity.
(b) ELECTION OF STATE REGARDING NONAPPLICABILITY- This Act shall not
apply to any civil action in a State court against a volunteer in which all
parties are citizens of the State if such State enacts a statute in accordance
with State requirements for enacting legislation--
(1) citing the authority of this subsection;
(2) declaring the election of such State that this Act shall not
apply, as of a date certain, to such civil action in the State; and
(3) containing no other provisions.
SECTION 4. LIMITATION ON LIABILITY FOR VOLUNTEERS.
(a) LIABILITY PROTECTION FOR VOLUNTEERS- Except as provided in
subsections (b) and (d), no volunteer of a nonprofit organization or
governmental entity shall be liable for harm caused by an act or omission of
the volunteer on behalf of the organization or entity if--
(1) the volunteer was acting within the scope of the volunteer's
responsibilities in the nonprofit organization or governmental entity at the
time of the act or omission;
(2) if appropriate or required, the volunteer was properly
licensed, certified, or authorized by the appropriate authorities for the
activities or practice in the State in which the harm occurred, where the
activities were or practice was undertaken within the scope of the
volunteer's responsibilities in the nonprofit organization or governmental
entity;
(3) the harm was not caused by willful or criminal misconduct,
gross negligence, reckless misconduct, or a conscious, flagrant indifference
to the rights or safety of the individual harmed by the volunteer; and
(4) the harm was not caused by the volunteer operating a motor
vehicle, vessel, aircraft, or other vehicle for which the State requires the
operator or the owner of the vehicle, craft, or vessel to--
(A) possess an operator's license; or
(B) maintain insurance.
(b) CONCERNING RESPONSIBILITY OF VOLUNTEERS TO ORGANIZATIONS AND
ENTITIES- Nothing in this section shall be construed to affect any civil
action brought by any nonprofit organization or any governmental entity
against any volunteer of such organization or entity.
(c) NO EFFECT ON LIABILITY OF ORGANIZATION OR ENTITY- Nothing in
this section shall be construed to affect the liability of any nonprofit
organization or governmental entity with respect to harm caused to any person.
(d) EXCEPTIONS TO VOLUNTEER LIABILITY PROTECTION- If the laws of a
State limit volunteer liability subject to one or more of the following
conditions, such conditions shall not be construed as inconsistent with this
section:
(1) A State law that requires a nonprofit organization or
governmental entity to adhere to risk management procedures, including
mandatory training of volunteers.
(2) A State law that makes the organization or entity liable for
the acts or omissions of its volunteers to the same extent as an employer is
liable for the acts or omissions of its employees.
(3) A State law that makes a limitation of liability inapplicable
if the civil action was brought by an officer of a State or local government
pursuant to State or local law.
(4) A State law that makes a limitation of liability applicable
only if the nonprofit organization or governmental entity provides a
financially secure source of recovery for individuals who suffer harm as a
result of actions taken by a volunteer on behalf of the organization or
entity. A financially secure source of recovery may be an insurance policy
within specified limits, comparable coverage from a risk pooling mechanism,
equivalent assets, or alternative arrangements that satisfy the State that
the organization or entity will be able to pay for losses up to a specified
amount.
Separate standards for different types of liability exposure may be
specified.
(e) LIMITATION ON PUNITIVE DAMAGES BASED ON THE ACTIONS OF
VOLUNTEERS-
(1) GENERAL RULE- Punitive damages may not be awarded against a
volunteer in an action brought for harm based on the action of a volunteer
acting within the scope of the volunteer's responsibilities to a nonprofit
organization or governmental entity unless the claimant establishes by clear
and convincing evidence that the harm was proximately caused by an action of
such volunteer which constitutes willful or criminal misconduct, or a
conscious, flagrant indifference to the rights or safety of the individual
harmed.
(2) CONSTRUCTION- Paragraph (1) does not create a cause of action
for punitive damages and does not preempt or supersede any Federal or State
law to the extent that such law would further limit the award of punitive
damages.
(f) EXCEPTIONS TO LIMITATIONS ON LIABILITY-
(1) IN GENERAL- The limitations on the liability of a volunteer
under this Act shall not apply to any misconduct that--
(A) constitutes a crime of violence (as that term is defined in
section 16 of title 18, United States Code) or act of international
terrorism (as that term is defined in section 2331 of title 18) for which
the defendant has been convicted in any court;
(B) constitutes a hate crime (as that term is used in the Hate
Crime Statistics Act (28 U.S.C. 534 note));
(C) involves a sexual offense, as defined by applicable State
law, for which the defendant has been convicted in any court;
(D) involves misconduct for which the defendant has been found
to have violated a Federal or State civil rights law; or
(E) where the defendant was under the influence (as determined
pursuant to applicable State law) of intoxicating alcohol or any drug at
the time of the misconduct.
(2) RULE OF CONSTRUCTION- Nothing in this subsection shall be
construed to effect subsection (a)(3) or (e).
SECTION 5. LIABILITY FOR NONECONOMIC LOSS.
(a) GENERAL RULE- In any civil action against a volunteer, based on
an action of a volunteer acting within the scope of the volunteer's
responsibilities to a nonprofit organization or governmental entity, the
liability of the volunteer for noneconomic loss shall be determined in
accordance with subsection (b).
(b) AMOUNT OF LIABILITY-
(1) IN GENERAL- Each defendant who is a volunteer, shall be liable
only for the amount of noneconomic loss allocated to that defendant in
direct proportion to the percentage of responsibility of that defendant
(determined in accordance with paragraph (2)) for the harm to the claimant
with respect to which that defendant is liable. The court shall render a
separate judgment against each defendant in an amount determined pursuant to
the preceding sentence.
(2) PERCENTAGE OF RESPONSIBILITY- For purposes of determining the
amount of noneconomic loss allocated to a defendant who is a volunteer under
this section, the trier of fact shall determine the percentage of
responsibility of that defendant for the claimant's harm.
SECTION 6. DEFINITIONS.
For purposes of this Act:
(1) ECONOMIC LOSS- The term `economic loss' means any pecuniary loss
resulting from harm (including the loss of earnings or other benefits related
to employment, medical expense loss, replacement services loss, loss due to
death, burial costs, and loss of business or employment opportunities) to the
extent recovery for such loss is allowed under applicable State law.
(2) HARM- The term `harm' includes physical, nonphysical, economic,
and noneconomic losses.
(3) NONECONOMIC LOSSES- The term `noneconomic losses' means losses
for physical and emotional pain, suffering, inconvenience, physical
impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of
society and companionship, loss of consortium (other than loss of domestic
service), hedonic damages, injury to reputation and all other nonpecuniary
losses of any kind or nature.
(4) NONPROFIT ORGANIZATION- The term `nonprofit organization'
means--
(A) any organization which is described in section 501(c)(3) of
the Internal Revenue Code of 1986 and exempt from tax under section 501(a)
of such Code and which does not practice any action which constitutes a hate
crime referred to in subsection (b)(1) of the first section of the Hate
Crime Statistics Act (28 U.S.C. 534 note); or
(B) any not-for-profit organization which is organized and
conducted for public benefit and operated primarily for charitable, civic,
educational, religious, welfare, or health purposes and which does not
practice any action which constitutes a hate crime referred to in subsection
(b)(1) of the first section of the Hate Crime Statistics Act (28 U.S.C. 534
note).
(5) STATE- The term `State' means each of the several States, the
District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Northern Mariana Islands, any other territory or
possession of the United States, or any political subdivision of any such
State, territory, or possession.
(6) VOLUNTEER- The term `volunteer' means an individual performing
services for a nonprofit organization or a governmental entity who does not
receive--
(A) compensation (other than reasonable reimbursement or allowance
for expenses actually incurred); or
(B) any other thing of value in lieu of compensation, in excess of
$500 per year, and such term includes a volunteer serving as a director,
officer, trustee, or direct service volunteer.
SECTION 7. EFFECTIVE DATE.
(a) IN GENERAL- This Act shall take effect 90 days after the date of
enactment of this Act.
(b) APPLICATION- This Act applies to any claim for harm caused by an
act or omission of a volunteer where that claim is filed on or after the
effective date of this Act but only if the harm that is the subject of the
claim or the conduct that caused such harm occurred after such effective date.
