II

106TH CONGRESS

1ST SESSION S. 844

To limit the civil liability of business entities that make available to a

nonprofit organization the use of a motor vehicle or aircraft.

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 make

available to a nonprofit organization the use of a motor

vehicle or aircraft.

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 PROVIDING

4 USE OF A MOTOR VEHICLE OR AIRCRAFT.

5 (a) DEFINITIONS.—In this section:

6 (1) AIRCRAFT.—The term ‘‘aircraft’’ has the

7 meaning provided that term in section 40102(6) of

8 title 49, United States Code.

9 (2) BUSINESS ENTITY.—the term ‘‘business en10 tity’’ means a firm, corporation, association, part-
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1 nership, consortium, joint venture, or other form of

2 enterprise.

3 (3) GROSS NEGLIGENCE.—The term ‘‘gross

4 negligence’’ means voluntary and conscious conduct

5 by a person with knowledge (at the time of the con6 duct) that the conduct is likely to be harmful to the

7 health or well-being of another person.

8 (4) INTENTIONAL MISCONDUCT.—The term

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

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

11 conduct is harmful to the health or well-being of

12 another person.

13 (5) MOTOR VEHICLE.—The term ‘‘motor vehi14 cle’’ has the meaning provided that term in section

15 30102(6) of title 49, United States Code.

16 (6) NONPROFIT ORGANIZATION.—The term

17 ‘‘nonprofit organization’’ means—

18 (A) any organization described in section

19 501(c)(3) of the Internal Revenue Code of 1986

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

21 such Code; or

22 (B) any not-for-profit organization orga23 nized and conducted for public benefit and

24 operated primarily for charitable, civic, edu25 cational, religious, welfare, or health purposes.
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1 (7) STATE.—The term ‘‘State’’ means each of

2 the several States, the District of Columbia, the

3 Commonwealth of Puerto Rico, the Virgin Islands,

4 Guam, American Samoa, the Northern Mariana

5 Islands, any other territory or possession of the

6 United States, or any political subdivision of any

7 such State, territory, or possession.

8 (b) LIMITATION ON LIABILITY.—

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

10 business entity shall not be subject to civil liability

11 relating to any injury or death occurring as a result

12 of the operation of aircraft or a motor vehicle of a

13 business entity loaned to a nonprofit organization

14 for use outside of the scope of business of the busi15 ness entity if—

16 (A) such injury or death occurs during a

17 period that such motor vehicle or aircraft is

18 used by a nonprofit organization; and

19 (B) the business entity authorized the use

20 by the nonprofit organization of motor vehicle

21 or aircraft that resulted in the injury or death.

22 (2) APPLICATION.—This subsection shall

23 apply—

24 (A) with respect to civil liability under

25 Federal and State law; and
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1 (B) regardless of whether a nonprofit orga2 nization pays for the use of the aircraft or

3 motor vehicle.

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

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

6 an act or omission of a business entity that constitutes

7 gross negligence or intentional misconduct, including any

8 misconduct that—

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

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

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

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

13 defendant has been convicted in any court;

14 (2) constitutes a hate crime (as that term is

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

16 534 note));

17 (3) involves a sexual offense, as defined by ap18 plicable State law, for which the defendant has been

19 convicted in any court; or

20 (4) involves misconduct for which the defendant

21 has been found to have violated a Federal or State

22 civil rights law.

23 (d) SUPERSEDING PROVISION.—

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

25 and subsection (e), this Act preempts the laws of
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1 any State to the extent that such laws are incon2 sistent with this Act, except that this Act shall not

3 preempt any State law that provides additional pro4 tection from liability for a business entity for an in5 jury or death with respect to which the conditions

6 described in subparagraphs (A) and (B) of sub7 section (b)(1) apply.

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

9 construed to supersede any Federal or State health

10 or safety law.

11 (e) ELECTION OF STATE REGARDING NONAPPLICA12 BILITY.—This Act shall not apply to any civil action in

13 a State court against a volunteer, nonprofit organization,

14 or governmental entity in which all parties are citizens of

15 the State if such State enacts a statute—

16 (1) citing the authority of this subsection;

17 (2) declaring the election of such State that this

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

19 and

20 (3) containing no other provision.

Æ