SRC-LBB S.B. 313 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 313
78R2998 AJA-DBy: Harris
State Affairs
3/5/2003
As Filed


DIGEST AND PURPOSE 

Currently, the income of an endowment for a non-profit nursing home is not
protected from civil judgments.  Donors are not guaranteed that their
donations will be protected.  As proposed, S.B. 313 protects the income of
an endowment in the collection of civil damages against certain non-profit
nursing institutions. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 2C, Civil Practice and Remedies Code, by adding
Chapter 40, as follows: 

CHAPTER 40.  AVAILABILITY OF CERTAIN FUNDS TO PAY DAMAGES

Sec.  40.001.  ENDOWMENT OF NONPROFIT NURSING INSTITUTION.  (a) Provides
that this section applies only to damages awarded against certain
nonprofit nursing institutions. 

(b)  Prohibits a claimant from collecting damages awarded against a
nursing institution described by Subsection (a) from the corpus or income
of an endowment or fund that is exempt from federal taxation and which is
used in funding care provided by the institution. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date:  upon passage or September 1, 2003.