By Corte H.B. No. 1679
76R5944 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to liability for donation of drugs to certain nonprofit
1-3 organizations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 88, Civil Practice and Remedies Code, as
1-6 added by Chapter 662, Acts of the 75th Legislature, Regular
1-7 Session, 1997, is redesignated as Chapter 89, Title 4, Civil
1-8 Practice and Remedies Code, and amended to read as follows:
1-9 CHAPTER 89 [88]. DONATION OF DRUGS AND MEDICAL DEVICES
1-10 Sec. 89.001 [88.001]. DEFINITIONS. In this chapter:
1-11 (1) "Device" means braces, artificial appliances,
1-12 durable medical equipment, and other medical supplies. The term
1-13 does not include a medical device that is injected, implanted, or
1-14 otherwise placed in the human body.
1-15 (2) "Donate" means to give without requiring anything
1-16 of monetary value from the recipient.
1-17 (3) "Drug" has the meaning assigned by Section
1-18 431.002, Health and Safety Code.
1-19 (4) "Nonprofit health care organization" means:
1-20 (A) an organization that is exempt from federal
1-21 income tax under Section 501(a) of the Internal Revenue Code of
1-22 1986 (26 U.S.C. Section 501) and its subsequent amendments by being
1-23 listed as an exempt organization in Section 501(c)(3) or 501(c)(4)
1-24 of that code and that is organized and operated for the purpose of
2-1 providing free or reduced cost health care; or
2-2 (B) a bona fide charitable organization that is
2-3 organized and operated for the purpose of providing free or reduced
2-4 cost health care, that dedicates its assets to charitable purposes,
2-5 and that does not provide net earnings to, or operate in a manner
2-6 that inures to the benefit of, an officer, employee, or shareholder
2-7 of the organization.
2-8 Sec. 89.002 [88.002]. LIABILITY FOR DAMAGES FROM DONATED
2-9 DRUG OR DEVICE. A person authorized to possess a drug or device is
2-10 not liable for personal injury, property damage, or death resulting
2-11 from the nature, age, packaging, or condition of a drug or device
2-12 that the person donates in good faith to an entity that is
2-13 authorized to possess the drug or device and that is a nonprofit
2-14 health care organization for use in providing free or reduced cost
2-15 health care.
2-16 Sec. 89.003 [88.003]. EXCEPTIONS. (a) This chapter does not
2-17 apply to a person who donates:
2-18 (1) a drug or device:
2-19 (A) [(1)] knowing that use of the drug or device
2-20 would be harmful to the health or well-being of another person;
2-21 (B) [(2)] with actual conscious indifference to
2-22 the health or well-being of another person; or
2-23 (C) [(3)] in violation of state or federal law;
2-24 or
2-25 (2) a drug that the person knows to be contaminated or
2-26 otherwise tainted.
2-27 (b) This chapter does not apply to a nonprofit health care
3-1 organization unless the organization has liability insurance in
3-2 effect that satisfies the requirements of Section 84.007(g).
3-3 SECTION 2. This Act takes effect September 1, 1999.
3-4 SECTION 3. This Act applies only to a cause of action that
3-5 accrues on or after the effective date of this Act. A cause of
3-6 action that accrues before the effective date of this Act is
3-7 governed by the law as it existed immediately before the effective
3-8 date of this Act and that law is continued in effect for this
3-9 purpose.
3-10 SECTION 4. The importance of this legislation and the
3-11 crowded condition of the calendars in both houses create an
3-12 emergency and an imperative public necessity that the
3-13 constitutional rule requiring bills to be read on three several
3-14 days in each house be suspended, and this rule is hereby suspended.