ZEM C.S.H.B. 21 75(R)BILL ANALYSIS


CIVIL PRACTICES
C.S.H.B. 21
By: Corte
4-23-97
Committee Report (Substituted)



BACKGROUND 

Current law does not provide civil protection for persons who donate drugs
and medical devices to certain nonprofit organizations.   As a result,
persons who provide much needed medical supplies to those in need can be
subjected to lawsuits. 

PURPOSE

To protect persons that donate drugs and medical devices to nonprofit
health care organizations from certain civil liability arising from the
use of donated drugs and medical devices. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 4, Civil Practice and Remedies Code, by adding
Chapter 88 as follows: 

 Sec. 88.001. Defines "device","donate", "drug", and "nonprofit health
care organization". 

 Sec. 88.002. Provides that an authorized person is not liable for
personal injury, property damage, or death resulting from a condition of a
drug or device donated to an authorized nonprofit health care organization
in good faith.  

 Sec. 88.003 Provides that the protection from liability does not apply to
a person who donates a drug or device knowing that use is harmful, with
actual conscious indifference to the health or well-being of another
person, or in violation of state or federal law, or knowing that a drug is
contaminated.  Provides that the chapter does not apply unless the
organization has liability insurance that satisfies the requirements of
Sec. 84.007(g). 

SECTION 2. Effective date: September 1, 1997.  Applies prospectively;
savings clause. 

SECTION 3. Emergency clause.



COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute makes the following changes:

1.  Provides a new definition of "device"  for the chapter in Sec. 88.001
of the substitute, instead of using the definition from Sec. 431.002,
Health and Safety Code as it was defined in the bill as filed. 

2.  Clarifies in Sec. 88.002 of the substitute that the immunity from
liability applies only to  persons and organizations that are authorized
to possess a drug or device. 

3. Provides in Sec. 88.003 of the substitute that the chapter also does
not apply to to a person who donates a drug or device in violation of
state or federal law, donates a drug knowing it to be contaminated, or to
a nonprofit health care organization that does not meet the insurance
requirements set out in the Charitable Immunity and Liability Act, Sec.
84.007(g), Civil Practice and Remedies Code.