SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Volunteer Protection Act of 1997''.

SEC. 2. FINDINGS AND PURPOSE.

    The Congress finds and declares that--
            (1) the willingness of volunteers to offer their services 
        is deterred by potential for liability actions against them and 
        the organizations they serve;
            (2) as a result, many nonprofit public and private 
        organizations and governmental entities, including voluntary 
        associations, social service agencies, educational 
        institutions, and other civic programs, have been adversely 
        affected by 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, many of which are national 
        in scope, depend heavily on volunteer participation, and 
        represent some of the most successful public-private 
        partnerships, protection of volunteerism through clarification 
        and limitation of the personal liability risks assumed by the 
        volunteer in connection with such participation is an 
        appropriate subject for Federal legislation.
    (b) Purpose.--The purpose of this Act is to promote the interests 
of social service program beneficiaries and taxpayers and to sustain 
the availability of programs, nonprofit organizations, and governmental 
entities that depend on volunteer contributions by reforming the laws 
to provide protection from personal financial liability to volunteers 
serving nonprofit organizations and governmental entities for actions 
undertaken in good faith on behalf of such organizations.

SEC. 3. PREEMPTION.

    This Act preempts the laws of any State to the extent that such 
laws are inconsistent with this Act, except that this Act shall not 
preempt any State law that provides additional protections to 
volunteers or category of volunteers from personal liability in the 
performance of services for a nonprofit organization or governmental 
organization.

SEC. 4. LIMITATION ON LIABILITY FOR VOLUNTEERS.

    (a) Liability Protection for Volunteers.--Except as provided in 
subsections (b) and (d), no volunteer of a nonprofit organization or 
governmental entity shall be liable for harm caused by an act or 
omission of the volunteer on behalf of the organization or entity if--
            (1) the volunteer was acting within the scope of the 
        volunteer's responsibilities in the nonprofit organization or 
        governmental entity at the time of the act or omission;
            (2) if appropriate or required, the volunteer was properly 
        licensed, certified, or authorized by the appropriate 
        authorities for the activities or practice in the State, in 
        which the harm occurred, undertaken within the scope of the 
        volunteer's responsibilities in the nonprofit organization or 
        governmental entity; and
            (3) the harm was not caused by willful or criminal 
        misconduct or a conscious, flagrant indifference to the rights 
        or safety of the individual harmed by the volunteer.
    (b) Concerning Responsibility of Volunteers to Organizations and 
Entities.--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 or Entity.--Nothing in 
this section shall be construed to affect the liability of any 
nonprofit organization or governmental entity with respect to harm 
caused to any person, except that in an action brought on the basis of 
such liability punitive damages may not be awarded against such 
organization or entity unless the harm was proximately caused by the 
action of a volunteer of such organization or entity which was willful 
or criminal or a conscious, flagrant indifference to the rights or 
safety of the individual harmed.
    (d) Exceptions to Volunteer Liability Protection.--If the laws of a 
State limit volunteer liability subject to one or more of the following 
conditions, such conditions shall not be construed as inconsistent with 
this section:
            (1) A State law that requires a nonprofit organization or 
        governmental entity to adhere to risk management procedures, 
        including mandatory training of volunteers.
            (2) A State law that makes the organization or entity 
        liable for the acts or omissions of its volunteers to the same 
        extent as an employer is liable for the acts or omissions of 
        its employees.
            (3) A State law that makes a limitation of liability 
        inapplicable if the volunteer was operating a motor vehicle, 
        vessel, aircraft, or other vehicle for which the State requires 
        the operator or vehicle owner to possess an operator's license 
        or to maintain insurance.
            (4) A State law that makes a limitation of liability 
        inapplicable if the civil action was brought by an officer of a 
        State or local government pursuant to State or local law.
            (5) A State law that makes a limitation of liability 
        applicable only if the nonprofit organization or governmental 
        entity provides a financially secure source of recovery for 
        individuals who suffer harm 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 organization or 
        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. DEFINITIONS.

    For purposes of section 4:
            (1) Economic loss.--The term ``economic losses'' means 
        objectively verifiable monetary losses, including past and 
        future medical expenses, loss of past and future earnings, cost 
        of obtaining replacement services in the home (including child 
        care, transportation, food preparation, and household care), 
        cost of making reasonable accommodations to a personal 
        residence, loss of employment, and loss of business or 
        employment opportunities.
            (2) Harm.--The term ``harm'' includes physical, 
        nonphysical, economic, and noneconomic losses.
            (3) Noneconomic losses.--The term ``noneconomic losses'' 
        means losses for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation and all other 
        nonpecuniary losses of any kind or nature.
            (4) Nonprofit organization.--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.
            (5) State.--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.
            (6) Volunteer.--The term ``volunteer'' means an individual 
        performing services for a nonprofit organization or a 
        governmental entity who does not receive--
                    (A) compensation (other than reimbursement or 
                allowance for expenses actually incurred); or
                    (B) any other thing of value in lieu of 
                compensation,
        in excess of $300 per year, and such term includes a volunteer 
        serving as a director, officer, trustee, or direct service 
        volunteer.

SEC. 6. EFFECTIVE DATE.

    Section 4 applies to any claim for harm caused by an act or 
omission of a volunteer filed on or after the date of enactment of this 
Act, without regard to whether the harm that is the subject of the 
claim or the conduct that caused the harm occurred before such date of 
enactment.
Output: Volunteer Protection Act of 1997 - 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, provided harm was not caused by willful or criminal misconduct, or a conscious, flagrant indifference to the rights or safety of the individual harmed, by the volunteer. Sets forth exceptions and conditions that a State may impose on the granting of such immunity.