II

106TH CONGRESS

1ST SESSION S. 842

To limit the civil liability of business entities that donate equipment to

nonprofit organizations.

IN THE SENATE OF THE UNITED STATES

APRIL 20, 1999

Mr. SANTORUM introduced the following bill; which was read twice and

referred to the Committee on the Judiciary

A BILL

To limit the civil liability of business entities that donate

equipment to nonprofit organizations.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. LIABILITY OF BUSINESS ENTITIES THAT DO4 NATE EQUIPMENT TO NONPROFIT ORGANIZA5 TIONS.

6 (a) DEFINITIONS.—In this section:

7 (1) BUSINESS ENTITY.—The term ‘‘business

8 entity’’ means a firm, corporation, association, part9 nership, consortium, joint venture, or other form of

10 enterprise.
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1 (2) EQUIPMENT.—The term ‘‘equipment’’ in2 cludes mechanical equipment, electronic equipment,

3 and office equipment.

4 (3) GROSS NEGLIGENCE.—the term ‘‘gross neg5 ligence’’ means voluntary and conscious conduct by

6 a person with knowledge (at the time of the conduct)

7 that the conduct is likely to be harmful to the health

8 or well-being of another person.

9 (4) INTENTIONAL MISCONDUCT.—The term

10 ‘‘intentional misconduct’’ means conduct by a person

11 with knowledge (at the time of the conduct) that the

12 conduct is harmful to the health or well-being of an13 other person.

14 (5) NONPROFIT ORGANIZATION.—The term

15 ‘‘nonprofit organization’’ means—

16 (A) any organization described in section

17 501(c)(3) of the Internal Revenue Code of 1986

18 and exempt from tax under section 501(a) of

19 such Code; or

20 (B) any not-for-profit organization orga21 nized and conducted for public benefit and op22 erated primarily for charitable, civic, edu23 cational, religious, welfare, or health purposes.

24 (6) STATE.—The term ‘‘State’’ means each of

25 the several States, the District of Columbia, the
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1 Commonwealth of Puerto Rico, the Virgin Islands,

2 Guam, American Samoa, the Northern Mariana Is3 lands, any other territory or possession of the

4 United States, or any political subdivision of any

5 such State, territory, or possession.

6 (b) LIMITATION ON LIABILITY.—

7 (1) IN GENERAL.—Subject to subsection (c), a

8 business entity shall not be subject to civil liability

9 relating to any injury or death that results from the

10 use of equipment donated by a business entity to a

11 noprofit organization.

12 (2) APPLICATION.—This subsection shall apply

13 with respect to civil liability under Federal and State

14 law.

15 (c) EXCEPTION FOR LIABILITY.—Subsection (b)

16 shall not apply to an injury or death that results from

17 an act or omission of a business entity that constitutes

18 gross negligence or intentional misconduct, including any

19 misconduct that—

20 (1) constitutes a crime of violence (as that term

21 is defined in section 16 of title 18, United States

22 Code) or act of international terrorism (as that term

23 is defined in section 2331 of title 18) for which the

24 defendant has been convicted in any court;
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1 (2) constitutes a hate crime (as that term is

2 used in the Hate Crime Statistics Act (28 U.S.C.

3 534 note));

4 (3) involves a sexual offense, as defined by ap5 plicable State law, for which the defendant has been

6 convicted in any court; or

7 (4) involves misconduct for which the defendant

8 has been found to have violated a Federal or State

9 civil rights law.

10 (d) SUPERSEDING PROVISION.—

11 (1) IN GENERAL.—Subject to paragraph (2)

12 and subsection (e), this Act preempts the laws of

13 any State to the extent that such laws are incon14 sistent with this Act, except that this Act shall not

15 preempt any State law that provides additional pro16 tection for a business entity for an injury or death

17 described in subsection (b)(1).

18 (2) LIMITATION.—Nothing in this Act shall be

19 construed to supersede any Federal or State health

20 or safety law.

21 (e) ELECTION OF STATE REGARDING NONAPPLICA22 BILITY.—This Act shall not apply to any civil action in

23 a State court against a business entity in which all parties

24 are citizens of the State if such State enacts a statute—

25 (1) citing the authority of this subsection;
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1 (2) declaring the election of such State that this

2 Act shall not apply to such civil action in the State;

3 and

4 (3) containing no other provision.

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