Volunteer Protection Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Volunteer Protection Act of 1993''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds and declares that--
            (1) within certain States, the willingness of volunteers to 
        offer their services has been increasingly deterred by a 
        perception that they thereby put personal assets at risk in the 
        event of liability actions against the organization they serve;
            (2) as a result of this perception, 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--
            (1) promote the interests of social service program 
        beneficiaries and taxpayers; and
            (2) 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. STATE STATUTES PROVIDING FOR LIMITATIONS ON LIABILITY FOR 
              VOLUNTEERS.

    An allotment may be increased for a State under the provisions of 
section 5, if the State statute referred to under subsection (a) of 
such section includes the following provisions:
            (1) Except as provided in paragraphs (2) and (4), 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--
                    (A) such individual was acting in good faith and 
                within the scope of such individual's official 
                functions and duties with the organization or entity; 
                and
                    (B) such damage or injury was not caused by willful 
                and wanton misconduct by such individual.
            (2) 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.
            (3) 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.
            (4) The following conditions on, and exceptions to, the 
        granting of liability may be imposed for protection to any 
        volunteer of an organization or entity required under paragraph 
        (1):
                    (A) The organization or entity shall adhere to risk 
                management procedures, including mandatory training of 
                volunteers.
                    (B) 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 the 
                State, for the acts or omissions of its employees.
                    (C) The protection from liability shall not apply 
                if the volunteer was operating a motor vehicle or was 
                operating a vessel, aircraft, or other vehicle for 
                which a pilot's license is required.
                    (D) The protection from liability shall not apply 
                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.
                    (E) 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 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, 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 compensation, or any other thing of value 
        in lieu of compensation, for such services (other than 
        reimbursement for expenses actually incurred or honoraria not 
        to exceed $300 per year for government service), 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.

Summary: Volunteer Protection Act of 1993 - Prescribes circumstances under which volunteers working for nonprofit organizations or government entities shall be immune from personal financial liability for acts on behalf of the organization or entity. Sets forth exceptions and conditions that a State may impose on the granting of such immunity. Requires the Secretary of Health and Human Services to increase by one percent the fiscal year allotment which would otherwise be made to a State to carry out the Social Services Block Grant Program under title XX of the Social Security Act if such State has, within two years, certified to the Secretary that it has enacted a State law which provides such immunity. Provides for the continuation of such increase based on an annual recertification.