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.