By Longoria H.B. No. 1959 74R5642 JMM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the liability of certain charitable organizations 1-3 performing activities for certain hospital districts. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter C, Chapter 281, Health and Safety 1-6 Code, is amended by adding Section 281.0565 to read as follows: 1-7 Sec. 281.0565. LIABILITY OF CERTAIN CHARITABLE 1-8 ORGANIZATIONS. (a) Notwithstanding any other law, a charitable 1-9 organization is liable for the organization's conduct to the same 1-10 extent as a hospital district. 1-11 (b) An employee of a charitable organization is an employee 1-12 of the hospital district for the purposes of Chapters 101 and 102, 1-13 Civil Practice and Remedies Code. 1-14 (c) In this section, "charitable organization" means a 1-15 nonstock corporation that is: 1-16 (1) exempt from federal income tax under Section 1-17 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section 1-18 501(a)) by being listed as an exempt organization in Sections 1-19 501(c)(3) and 501(c)(4) of the code (26 U.S.C. Sections 501(c)(3) 1-20 and 501(c)(4)); 1-21 (2) controlled by a hospital district created under 1-22 Section 4, Article IX, Texas Constitution; and 1-23 (3) established to conduct a health care program for 1-24 the hospital district by providing or arranging services or raising 2-1 funds. 2-2 SECTION 2. Section 101.001(2), Civil Practice and Remedies 2-3 Code, is amended to read as follows: 2-4 (2) "Governmental unit" means: 2-5 (A) this state and all the several agencies of 2-6 government that collectively constitute the government of this 2-7 state, including other agencies bearing different designations, and 2-8 all departments, bureaus, boards, commissions, offices, agencies, 2-9 councils, and courts; 2-10 (B) a political subdivision of this state, 2-11 including any city, county, school district, junior college 2-12 district, levee improvement district, drainage district, irrigation 2-13 district, water improvement district, water control and improvement 2-14 district, water control and preservation district, freshwater 2-15 supply district, navigation district, conservation and reclamation 2-16 district, soil conservation district, communication district, 2-17 public health district, hospital district, and river authority; and 2-18 (C) any other institution, agency, or organ of 2-19 government the status and authority of which are derived from the 2-20 Constitution of Texas or from laws passed by the legislature under 2-21 the constitution. 2-22 SECTION 3. This Act takes effect September 1, 1995, and 2-23 applies only to a cause of action that accrues on or after that 2-24 date. A cause of action that accrues before the effective date of 2-25 this Act is governed by the law in effect at the time the cause of 2-26 action accrued, and the former law is continued in effect for that 2-27 purpose. 3-1 SECTION 4. The importance of this legislation and the 3-2 crowded condition of the calendars in both houses create an 3-3 emergency and an imperative public necessity that the 3-4 constitutional rule requiring bills to be read on three several 3-5 days in each house be suspended, and this rule is hereby suspended.