[Congressional Record Volume 145, Number 54 (Tuesday, April 20, 1999)]
[Senate]
[Pages S3937-S3939]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM:
  S. 845. A bill to limit the civil liability of business entities 
providing use of facilities to nonprofit organizations; to the 
Committee on the Judiciary.


legislation to limit the civil liability of business entities providing 
                  services to nonprofit organizations

  Mr. SANTORUM. Mr. President, I rise today to introduce four pieces of 
legislation I introduced in the 105th Congress. Building on the support 
I've received for these bills, I look forward to passage this Congress 
of much needed liability protection for those who donate goods and 
services to charities.
  Over the past thirty years, courts have consistently expanded what 
constitutes tortious conduct. Regrettably, fault is often not a factor 
when deciding who should compensate an individual for damages incurred. 
This has had an impact on charitable giving. Today, individuals and 
businesses are wary of giving goods, services, and time to charities 
for fear of frivolous lawsuits.
  This legislation is designed to free up resources for charities by 
providing legal protections for donors. Generally, these bills raise 
the tort liability standard for donors, whereby they are liable only in 
cases of gross negligence, hence eliminating strict liability and 
returning to a fault based legal standard. By allowing businesses to 
once again become good Samaritans, I look forward to seeing a massive 
increase in the donation of goods and services to charities.
  Specifically, I have introduced four bills, each of which 
accomplishes one of the following four objectives: first, to limit the 
civil liability of business entities that donate equipment to nonprofit 
organizations; second, to limit the civil liability of business 
entities that provide use of their facilities to nonprofit 
organizations; third, to limit the civil liability of business entities 
that provide facility tours; and fourth, to limit the civil liability 
of business entities that make available to nonprofit organizations the 
use of motor vehicles or aircraft.
  Clearly, where an organization is grossly negligent when providing 
goods or the use of its facilities to charity, that organization should 
be fully liable for inquiries caused. These bills merely require this 
to be the standard in cases arising from certain donations to 
charities.
  In late 1996, the Good Samaritan Food Donation Act was passed into 
law. This law now protects donors of foodstuffs to charities from 
liability except in cases where the donor was grossly negligent in 
making the donation. I was proud to join Senator Bond in passing this 
Act. The bills I introduce today draw from my successful work with 
Senator Bond years ago. Each of these bills is modeled on the legal 
framework of the Good Samaritan Food Donation Act. I hope my 
distinguished colleagues who supported the Food Donation Act will help 
further these efforts by supporting the Charity Empowerment Project.
  Mr. President, I ask unanimous consent that the text of these bills 
be printed in the Record.
  There being no objection, the bills were ordered printed in the 
Record, as follows:

                                 S. 842

       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;

[[Page S3938]]

       (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 provision.
                                  ____


                                 S. 843

       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 PROVIDING TOURS OF 
                   FACILITIES.

       (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) Facility.--The term ``facility'' means any real 
     property, including any building, improvement, or 
     appurtenance.
       (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) 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 to, or death of an individual occurring at a 
     facility of the business entity if--
       (A) such injury or death occurs during a tour of the 
     facility in an area of the facility that is not otherwise 
     accessible to the general public; and
       (B) the business entity authorized the tour.
       (2) Application.--This subsection shall apply--
       (A) with respect to civil liability under Federal and State 
     law; and
       (B) regardless of whether an individual pays for the tour.
       (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 from liability for a business entity 
     for an injury or death with respect to which the conditions 
     under subparagraphs (A) and (B) of subsection (b)(1) apply.
       (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 provision.
                                  ____


                                 S. 844

       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 PROVIDING USE OF A 
                   MOTOR VEHICLE OR AIRCRAFT.

       (a) Definitions.--In this section:
       (1) Aircraft.--The term ``aircraft'' has the meaning 
     provided that term in section 40102(6) of title 49, United 
     States Code.
       (2) Business entity.--the term ``business entity'' means a 
     firm, corporation, association, partnership, consortium, 
     joint venture, or other form of enterprise.
       (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) Motor vehicle.--The term ``motor vehicle'' has the 
     meaning provided that term in section 30102(6) of title 49, 
     United States Code.
       (6) 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.
       (7) 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 occurring as a result of the operation of 
     aircraft or a motor vehicle of a business entity loaned to a 
     nonprofit organization for use outside of the scope of 
     business of the business entity if--
       (A) such injury or death occurs during a period that such 
     motor vehicle or aircraft is used by a nonprofit 
     organization; and
       (B) the business entity authorized the use by the nonprofit 
     organization of motor vehicle or aircraft that resulted in 
     the injury or death.
       (2) Application.--This subsection shall apply--
       (A) with respect to civil liability under Federal and State 
     law; and
       (B) regardless of whether a nonprofit organization pays for 
     the use of the aircraft or motor vehicle.
       (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 from liability for a business entity 
     for an injury or death with respect to which the conditions 
     described in subparagraphs (A) and (B) of subsection (b)(1) 
     apply.
       (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 volunteer, nonprofit organization, or governmental 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 provision.
                                  ____


                                 S. 845

       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 PROVIDING USE OF 
                   FACILITIES 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.

[[Page S3939]]

       (2) Facility.--The term ``facility'' means any real 
     property, including any building, improvement, or 
     appurtenance.
       (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 occurring at a facility of the business 
     entity in connection with a use of such facility by a 
     nonprofit organization if--
       (A) the use occurs outside of the scope of business of the 
     business entity;
       (B) such injury or death occurs during a period that such 
     facility is used by the nonprofit organization; and
       (C) the business entity authorized the use of such facility 
     by the nonprofit organization.
       (2) Application.--This subsection shall apply--
       (A) with respect to civil liability under Federal and State 
     law; and
       (B) regardless of whether a nonprofit organization pays for 
     the use of a facility.
       (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 from liability for a business entity 
     for an injury or death with respect to which conditions under 
     subparagraphs (A) through (C) of subsection (b)(1) apply.
       (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 provision.
                                 ______