75R11719 DLF-F
By Corte H.B. No. 21
Substitute the following for H.B. No. 21:
By Hilbert C.S.H.B. No. 21
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to liability for the donation of drugs and medical devices
1-3 to certain nonprofit organizations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 4, Civil Practice and Remedies Code, is
1-6 amended by adding Chapter 88 to read as follows:
1-7 CHAPTER 88. DONATION OF DRUGS AND MEDICAL DEVICES
1-8 Sec. 88.001. DEFINITIONS. In this chapter:
1-9 (1) "Device" means braces, artificial appliances,
1-10 durable medical equipment, and other medical supplies. The term
1-11 does not include a medical device that is injected, implanted, or
1-12 otherwise placed in the human body.
1-13 (2) "Donate" means to give without requiring anything
1-14 of monetary value from the recipient.
1-15 (3) "Drug" has the meaning assigned by Section
1-16 431.002, Health and Safety Code.
1-17 (4) "Nonprofit health care organization" means:
1-18 (A) an organization that is exempt from federal
1-19 income tax under Section 501(a) of the Internal Revenue Code of
1-20 1986 (26 U.S.C. Section 501) by being listed as an exempt
1-21 organization in Section 501(c)(3) or 501(c)(4) of that code and
1-22 that is organized and operated for the purpose of providing free or
1-23 reduced cost health care; or
1-24 (B) a bona fide charitable organization that is
2-1 organized and operated for the purpose of providing free or reduced
2-2 cost health care, that dedicates its assets to charitable purposes,
2-3 and that does not provide net earnings to, or operate in a manner
2-4 that inures to the benefit of, an officer, employee, or shareholder
2-5 of the organization.
2-6 Sec. 88.002. LIABILITY FOR DAMAGES FROM DONATED DRUG OR
2-7 DEVICE. A person authorized to possess a drug or device is not
2-8 liable for personal injury, property damage, or death resulting
2-9 from the nature, age, packaging, or condition of a drug or device
2-10 that the person donates in good faith to an entity that is
2-11 authorized to possess the drug or device and that is a nonprofit
2-12 health care organization for use in providing free or reduced cost
2-13 health care.
2-14 Sec. 88.003. EXCEPTIONS. (a) This chapter does not apply
2-15 to a person who donates:
2-16 (1) a drug or device:
2-17 (A) knowing that use of the drug or device would
2-18 be harmful to the health or well-being of another person;
2-19 (B) with actual conscious indifference to the
2-20 health or well-being of another person; or
2-21 (C) in violation of state or federal law; or
2-22 (2) a drug that the person knows to be contaminated or
2-23 otherwise tainted.
2-24 (b) This chapter does not apply to a nonprofit health care
2-25 organization unless the organization has liability insurance in
2-26 effect that satisfies the requirements of Section 84.007(g).
2-27 SECTION 2. This Act takes effect September 1, 1997, and
3-1 applies to a cause of action that accrues on or after that date.
3-2 An action that accrued before the effective date of this Act is
3-3 governed by the law in effect at the time the action accrued, and
3-4 that law is continued in effect for that purpose.
3-5 SECTION 3. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.