A bill to provide uniform standards for the award of punitive damages for volunteer services.

SECTION 1. UNIFORM STANDARDS FOR AWARD OF PUNITIVE DAMAGES.

    (a) General Rule.--Punitive damages may, to the extent permitted by 
applicable State law, be awarded against a defendant if the claimant 
establishes by clear and convincing evidence that conduct carried out 
by the defendant with a conscious, flagrant indifference to the rights 
or safety of others was the proximate cause of the harm that is the 
subject of the action--
            (1) in any civil action where the claim relates to 
        volunteer services performed by the defendant for a government 
        entity or a not for profit organization organized and conducted 
        for public benefit and operated primarily for charitable, 
        civic, educational, religious, welfare, or health purposes; or
            (2) in any civil action where the claim relates to 
        activities or services performed by a not for profit 
        organization organized and conducted for public benefit and 
        operated primarily for charitable, civic, educational, 
        religious, welfare, or health purposes, not including health 
        care providers.
    (b) Limitation on Amount.--
            (1) In general.--The amount of punitive damages that may be 
        awarded in an action described in subsection (a) may not exceed 
        the greater of--
                    (A) 2 times the sum of the amount awarded to the 
                claimant for economic loss and non-economic loss; or
                    (B) $250,000.
            (2) Special rule.--Notwithstanding paragraph (1), in any 
        action described in section (a) against an individual whose net 
        worth does not exceed $500,000 or against an owner of an 
        unincorporated business, or any partnership, corporation, 
        association, congregation, unit of local government, or 
        organization which has fewer than 25 full-time employees, the 
        punitive damages shall not exceed the lesser of--
                    (A) 2 times the sum of the amount awarded to the 
                claimant for economic loss and non-economic loss; or
                    (B) $250,000.
            (3) Exception for particular categories of misconduct.--The 
        limitations on the amount of punitive damages contained in 
        paragraphs (1) and (2) shall not apply in any action described 
        in subsection (a)(1) or (a)(2) where the misconduct for which 
        punitive damages are awarded--
                    (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, as defined in section 
                104(b)(2) of this title, at the time of the misconduct 
                for which punitive damages are awarded.
            (4) Exception for insufficient award in cases of egregious 
        conduct.--
                    (A) Determination by court.--If the court makes a 
                determination, after considering each of the factors in 
                subparagraph (B), that the application of paragraph (1) 
                would result in an award of punitive damages that is 
                insufficient to punish the egregious conduct of the 
                defendant against whom the punitive damages are to be 
                awarded or to deter such conduct in the future, the 
                court shall determine the additional amount of punitive 
                damages (referred to in this paragraph as the 
                ``additional amount'') in excess of the amount 
                determined in accordance with paragraph (1) to be 
                awarded against the defendant in a separate proceeding 
                in accordance with this paragraph.
                    (B) Factors for consideration.--In any proceeding 
                under paragraph (A), the court shall consider--
                            (i) the extent to which the defendant acted 
                        with actual malice;
                            (ii) the likelihood that serious harm would 
                        arise from the conduct of the defendant;
                            (iii) the degree of the awareness of the 
                        defendant of that likelihood;
                            (iv) the profitability of the misconduct to 
                        the defendant;
                            (v) the duration of the misconduct and any 
                        concurrent or subsequent concealment of the 
                        conduct by the defendant;
                            (vi) the attitude and conduct of the 
                        defendant upon the discovery of the misconduct 
                        and whether the misconduct has terminated;
                            (vii) the financial condition of the 
                        defendant; and
                            (viii) the cumulative deterrent effect of 
                        other losses, damages, and punishment suffered 
                        by the defendant as a result of the misconduct, 
                        reducing the amount of punitive damages on the 
                        basis of the economic impact and severity of 
                        all measures to which the defendant has been or 
                        may be subjected, including--
                                    (I) compensatory and punitive 
                                damage awards to similarly situated 
                                claimants;
                                    (II) the adverse economic effect of 
                                stigma or loss of reputation;
                                    (III) civil fines and criminal and 
                                administrative penalties; and
                                    (IV) stop sale, cease and desist, 
                                and other remedial or enforcement 
                                orders.
                    (C) Requirements for awarding additional amount.--
                If the court awards an additional amount pursuant to 
                this subsection, the court shall state its reasons for 
                setting the amount of the additional amount in findings 
                of fact and conclusions of law.
                    (D) Preemption.--This section does not create a 
                cause of action for punitive damages and does not 
                preempt or supersede any State or Federal law to the 
                extent that such law would further limit the award of 
                punitive damages. Nothing in this subsection shall 
                modify or reduce the ability of courts to order 
                remittiturs.
            (5) Application by court.--This subsection shall be applied 
        by the court and application of this subsection shall not be 
        disclosed to the jury. Nothing in this subsection shall 
        authorize the court to enter an award of punitive damages in 
        excess of the jury's initial award of punitive damages.
    (c) Bifurcation at Request of Any Party.--
            (1) In general.--At the request of any party the trier of 
        fact in any action that is subject to this section shall 
        consider in a separate proceeding, held subsequent to the 
        determination of the amount of compensatory damages, whether 
        punitive damages are to be awarded for the harm that is the 
        subject of the action and the amount of the award.
            (2) Inadmissibility of evidence relative only to a claim of 
        punitive damages in a proceeding concerning compensatory 
        damages.--If any party requests a separate proceeding under 
        paragraph (1), in a proceeding to determine whether the 
        claimant may be awarded compensatory damages, any evidence, 
        argument, or contention that is relevant only to the claim of 
        punitive damages, as determined by applicable State law, shall 
        be inadmissible.
    (d) Definition.--
            Health care provider.--The term ``health care provider'' 
        means any person, organization, or institution that is engaged 
        in the delivery of health care services in a State and that is 
        required by the laws or regulations of the State to be 
        licensed, registered, or certified by the State to engage in 
        the delivery of such services in the State.

Summary: Authorizes punitive damages to be awarded against a defendant, to the extent permitted by applicable State law, if the claimant establishes by clear and convincing evidence that conduct carried out by the defendant with a conscious, flagrant indifference to the rights or safety of others was the proximate cause of the harm that is the subject of the civil action where the claim relates to: (1) volunteer services performed by the defendant for a government entity or a not-for-profit organization organized and conducted for public benefit and operated primarily for charitable, civic, educational, religious, welfare, or health purposes. Or (2) activities or services performed by such a not-for-profit organization, excluding health care providers. Limits the amount of punitive damages that may be awarded in such an action to: (1) the greater of twice the sum of the amount awarded to the claimant for economic loss and non-economic loss or $250,000, in general. And (2) the lesser of twice that sum or $250,000 in any such action against an individual whose net worth does not exceed $500,000 or against an owner of an unincorporated business or any partnership, corporation, association, congregation, unit of local government, or organization which has fewer than 25 full-time employees. Makes exceptions to such limits on punitive damages: (1) for particular categories of misconduct, such as where that misconduct constitutes a hate crime or a crime of violence or act of international terrorism for which the defendant has been convicted. And (2) where such limits would result in an award that is insufficient to punish the egregious conduct of the defendant or to deter such conduct in the future. Sets forth provisions regarding: (1) consideration of punitive damages in a separate proceeding at the request of any party. And (2) inadmissibility of evidence relative only to a claim of punitive damages in a proceeding concerning compensatory damages.