By Corte                                                H.B. No. 21

      75R651 DLF-F                           

                                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" and "drug" have the meanings assigned by

1-10     Section 431.002, Health and Safety Code.

1-11                 (2)  "Donate" means to give without requiring anything

1-12     of monetary value from the recipient.

1-13                 (3)  "Nonprofit health care organization" means:

1-14                       (A)  an organization that is exempt from federal

1-15     income tax under Section 501(a) of the Internal Revenue Code of

1-16     1986 (26 U.S.C. Section 501) by being listed as an exempt

1-17     organization in Section 501(c)(3) or 501(c)(4) of that code and

1-18     that is organized and operated for the purpose of providing free or

1-19     reduced cost health care; or

1-20                       (B)  a bona fide charitable organization that is

1-21     organized and operated for the purpose of providing free or reduced

1-22     cost health care, that dedicates its assets to charitable purposes,

1-23     and that does not provide net earnings to, or operate in a manner

1-24     that inures to the benefit of, an officer, employee, or shareholder

 2-1     of the organization.

 2-2           Sec. 88.002.  LIABILITY FOR DAMAGES FROM DONATED DRUG OR

 2-3     DEVICE.  A person  is not liable for personal injury, property

 2-4     damage, or death resulting from the nature, age, packaging, or

 2-5     condition of a drug or device that the person donates in good faith

 2-6     to a nonprofit health care organization for use in providing free

 2-7     or reduced cost health care.

 2-8           Sec. 88.003.  EXCEPTION.  This chapter does not apply to a

 2-9     person who donates a drug or device:

2-10                 (1)  knowing that use of the drug or device would be

2-11     harmful to the health or well-being of another person; or

2-12                 (2)  with actual conscious indifference to the health

2-13     or well-being of another person.

2-14           SECTION 2.  This Act takes effect September 1, 1997, and

2-15     applies to a cause of action that accrues on or after that date.

2-16     An action that accrued before the effective date of this Act is

2-17     governed by the law in effect at the time the action accrued, and

2-18     that law is continued in effect for that purpose.

2-19           SECTION 3.  The importance of this legislation and the

2-20     crowded condition of the calendars in both houses create an

2-21     emergency   and   an   imperative   public   necessity   that   the

2-22     constitutional rule requiring bills to be read on three several

2-23     days in each house be suspended, and this rule is hereby suspended.