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.