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.