SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Volunteer 
Protection Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. No preemption of State tort law.
Sec. 4. Limitation on liability for volunteers.
Sec. 5. Certification requirement and adjustment of Social Services 
                            Block Grant Program allotments.
Sec. 6. Definitions.

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 potential personal liability for simple mistakes 
        made in the course of volunteer service;
            (2) as a result, many nonprofit public and private 
        organizations and governmental entities, including voluntary 
        associations, social service agencies, educational 
        institutions, local governments, foundations, and other civic 
        programs, have been adversely affected through 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; and
            (4) because Federal funds are expended on useful and cost-
        effective social service programs which depend heavily on 
        volunteer participation, protection of voluntarism through 
        clarification and limitation of the personal liability risks 
        assumed by the volunteer in connection with such participation 
        is an appropriate subject for Federal encouragement of State 
        reform.
    (b) Purpose.--It is the purpose of this Act to promote the 
interests of social service program beneficiaries and taxpayers and to 
sustain the availability of programs and nonprofit organizations and 
governmental entities which depend on volunteer contributions by 
encouraging reasonable reform of State laws to provide protection from 
personal financial liability to volunteers serving with nonprofit 
organizations and governmental entities for actions undertaken in good 
faith on behalf of such organizations.

SEC. 3. NO PREEMPTION OF STATE TORT LAW.

    Nothing in this Act shall be construed to preempt the laws of any 
State governing tort liability actions.

SEC. 4. LIMITATION ON LIABILITY FOR VOLUNTEERS.

    (a) Liability Protection for Volunteers.--Except as provided in 
subsections (b) and (d), any volunteer of a nonprofit organization or 
governmental entity shall incur no personal financial liability for any 
tort claim alleging damage or injury from any act or omission of the 
volunteer on behalf of the organization or entity if--
            (1) such volunteer was acting in good faith and within the 
        scope of such volunteer's official functions and duties with 
        the organization or entity; and
            (2) such damage or injury was not caused by willful and 
        wanton misconduct by such volunteer.
    (b) Concerning Responsibility of Volunteers With Respect to 
Organizations.--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.--Nothing in this 
section shall be construed to affect the liability of any nonprofit 
organization or governmental entity with respect to injury caused to 
any person.
    (d) Exceptions to Volunteer Liability Protection.--A State may 
impose one or more of the following conditions on and exceptions to the 
granting of liability protection to any volunteer of an organization or 
entity required by subsection (a):
            (1) The organization or entity must adhere to risk 
        management procedures, including mandatory training of 
        volunteers, as defined by the Secretary of Health and Human 
        Services by regulation.
            (2) The organization or entity shall be liable for the acts 
        or omissions of its volunteers to the same extent as an 
        employer is liable, under the laws of that State, for the acts 
        or omissions of its employees.
            (3) The protection from liability does not apply--
                    (A) if the volunteer was operating a motor vehicle, 
                vessel, aircraft, or other vehicle for which the State 
                involved requires the operator or vehicle owner to 
                maintain insurance;
                    (B) in the case of a suit brought by an appropriate 
                officer of a State or local government to enforce a 
                Federal, State, or local law; and
                    (C) to the extent the claim would be covered under 
                any insurance policy.
            (4) The protection from liability shall apply only if the 
        organization or entity provides a financially secure source of 
        recovery for individuals who suffer injury 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 entity 
        will be able to pay for losses up to a specified amount. 
        Separate standards for different types of liability exposure 
        may be specified.

SEC. 5. CERTIFICATION REQUIREMENT AND ADJUSTMENT OF SOCIAL SERVICES 
              BLOCK GRANT PROGRAM ALLOTMENTS.

    (a) Certification and Block Grant Allotments.--In the case of any 
State which certifies, not later than 2 years after the date of the 
enactment of this Act, to the Secretary of Health and Human Services 
that it has enacted, adopted, or otherwise has in effect State law 
which substantially complies with section 4(a), the Secretary shall 
increase by 1 percent the fiscal year allotment which would otherwise 
be made to such State to carry out the Social Services Block Grant 
Program under title XX of the Social Security Act.
    (b) Continuation of Increase.--Any increase made under subsection 
(a) in an allotment to a State shall remain in effect only if the State 
makes a certification to the Secretary of Health and Human Services, 
not later than the end of each 1-year period occurring successively 
after the end of the 2-year period described in subsection (a), that it 
has in effect State law which substantially complies with section 4(a).

SEC. 6. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``volunteer'' means an individual performing 
        services for a nonprofit organization or a governmental entity 
        who does not receive--
                    (A) compensation (including reimbursement or 
                allowance for expenses), or
                    (B) any other thing of value in lieu of 
                compensation,
        in excess of $300, and such term includes a volunteer serving 
        as a director, officer, trustee, or direct service volunteer;
            (2) the term ``nonprofit organization'' means any 
        organization described in section 501(c) of the Internal 
        Revenue Code of 1986 and exempt from tax under section 501(a) 
        of such Code;
            (3) the term ``damage or injury'' includes physical, 
        nonphysical, economic, and noneconomic damage; and
            (4) 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.
Volunteer Protection Act of 1997 - States that this Act preempts inconsistent State law except when such law provides additional protection from liability relating to volunteers in the performance of services for a nonprofit organization or governmental entity.  Makes this Act inapplicable 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 declaring its election that this Act not apply. Exempts a volunteer of a nonprofit organization or governmental entity from liability for harm caused by an act or omission of the volunteer on behalf of such organization or entity if:  (1) the volunteer was acting within the scope of his or her responsibilities at the time; (2) the volunteer was properly licensed or otherwise authorized for the activities or practice in the State in which the harm occurred; (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; 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 owner to possess an operator's license or maintain insurance. Specifies conditions of State laws limiting volunteer liability which shall not be construed as inconsistent with this Act. Prohibits the award of punitive damages against a volunteer 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. Provides that the volunteer liability limitations of this Act shall not apply to any misconduct:  (1) that constitutes a crime of violence, an act of international terrorism, or a hate crime; (2) that involves a sexual offense or a violation of civil rights law; or (3) where the defendant was under the influence of intoxicating alcohol or any drug. Makes each volunteer liable for noneconomic loss only in the amount allocated to such defendant in direct proportion to the percentage of responsibility for the harm for which that defendant is liable. Requires the trier of fact to determine such percentage of responsibility.
Volunteer Protection Act of 1997