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


Senate Research CenterC.S.S.B. 313
78R9167 AJA-DBy: Harris
State Affairs
3/18/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, the income of an endowment for certain nonprofit institutions
is not protected from civil judgments.  Donors are not guaranteed that
their donations will be protected.  C.S.S.B. 313 protects the income of an
endowment in the collection of civil damages against certain non-profit
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 CERTAIN NONPROFIT INSTITUTIONS.  (a) Provides
that this section applies only to damages awarded against certain
nonprofit  institutions or facilities. 

(b)  Prohibits a claimant from collecting damages awarded against an
institution, facility, or program described by Subsection (a) from an
endowment fund, restricted fund, or similar fund if the fund or account is
exempt from federal taxation, is used in funding care provided by the
institution, and affiliated with a nonprofit religious organization
described by Subsection (a) (1) (B), the corpus of the fund or account is
derived from donations or grants from third parties or public sources, and
the use of the fund or account is temporarily or permanently restricted by
the donor or grantor at the time the donation or grant is made. 

SECTION 2.  Makes application of this Act prospective.

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

SUMMARY OF COMMITTEE CHANGES

Differs from As Filed by replacing the term "nursing institutions" with
the term "nonprofit institutions" in the relating clause. 

SECTION 1.  Amends As Filed S.B. 313, proposed Chapter 40, Title 2C, Civil
Practices and Remedies Code, to change the heading.  Changes the entities
to which the section applies from a nonprofit nursing institution to a
nonprofit institution or facility or a program operated by an institution
or facility described by Subdivision (1).  Adds to the limitations which
prohibit a claimant from collecting damages against an institution,
facility, or program. 

 SECTION 2.  No changes.