[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 563 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 563

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 14, 1997

 Mr. Santorum (for himself and Mr. Coverdell) 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.

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

SECTION 1. LIABILITY OF BUSINESS ENTITIES THAT DONATE EQUIPMENT TO 
              NONPROFIT ORGANIZATIONS.

    (a) Definitions.--In this section:
            (1) Business entity.--The term ``business entity'' means a 
        firm, corporation, association, partnership, consortium, joint 
        venture, or other form of enterprise.
            (2) Equipment.--The term ``equipment'' includes mechanical 
        equipment, electronic equipment, and office equipment.
            (3) Gross negligence.--the term ``gross negligence'' means 
        voluntary and conscious conduct by a person with knowledge (at 
        the time of the conduct) that the conduct is likely to be 
        harmful to the health or well-being of another person.
            (4) Intentional misconduct.--The term ``intentional 
        misconduct'' means conduct by a person with knowledge (at the 
        time of the conduct) that the conduct is harmful to the health 
        or well-being of another person.
            (5) Nonprofit organization.--The term ``nonprofit 
        organization'' means--
                    (A) any organization described in section 501(c)(3) 
                of the Internal Revenue Code of 1986 and exempt from 
                tax under section 501(a) of such Code; or
                    (B) any not-for-profit organization organized and 
                conducted for public benefit and operated primarily for 
                charitable, civic, educational, religious, welfare, or 
                health purposes.
            (6) 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.
    (b) Limitation on Liability.--
            (1) In general.--Subject to subsection (c), a business 
        entity shall not be subject to civil liability relating to any 
        injury or death that results from the use of equipment donated 
        by a business entity to a noprofit organization.
            (2) Application.--This subsection shall apply with respect 
        to civil liability under Federal and State law.
    (c) Exception for Liability.--Subsection (b) shall not apply to an 
injury or death that results from an act or omission of a business 
entity that constitutes gross negligence or intentional misconduct, 
including any misconduct that--
            (1) 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;
            (2) constitutes a hate crime (as that term is used in the 
        Hate Crime Statistics Act (28 U.S.C. 534 note));
            (3) involves a sexual offense, as defined by applicable 
        State law, for which the defendant has been convicted in any 
        court; or
            (4) involves misconduct for which the defendant has been 
        found to have violated a Federal or State civil rights law.
    (d) Superseding Provision.--
            (1) In general.--Subject to paragraph (2) and subsection 
        (e), 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 
        protection for a business entity for an injury or death 
        described in subsection (b)(1).
            (2) Limitation.--Nothing in this Act shall be construed to 
        supersede any Federal or State health or safety law.
    (e) Election of State Regarding Nonapplicability.--This Act shall 
not apply to any civil action in a State court against a business 
entity in which all parties are citizens of the State if such State 
enacts a statute--
            (1) citing the authority of this subsection;
            (2) declaring the election of such State that this Act 
        shall not apply to such civil action in the State; and
            (3) containing no other provisions.
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