| Begun and held at the City of Washington on Tuesday, the seventh day of
January, one thousand nine hundred and ninety-seven An Act
To provide certain protections to volunteers, nonprofit organizations, and governmental
entities in lawsuits based on the activities of volunteers.
- Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,
SECTION 1. SHORT TITLE.
- This Act may be cited as the `Volunteer Protection Act of 1997'.
SEC. 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.
SEC. 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.
SEC. 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) 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).
SEC. 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).
- (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.
SEC. 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.
SEC. 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
END
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