78R6482 AJA-D

By:  King                                                         H.B. No. 1892



A BILL TO BE ENTITLED

AN ACT

relating to collection of civil damages awarded against certain 
nursing institutions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle C, Title 2, Civil Practice and Remedies 
Code, is amended by adding Chapter 40 to read as follows:

CHAPTER 40.  AVAILABILITY OF CERTAIN FUNDS TO PAY DAMAGES
	Sec. 40.001.  ENDOWMENT OF NONPROFIT NURSING INSTITUTION. 
(a)  This section applies only to damages awarded against a 
nonprofit nursing institution:
		(1)  licensed under Chapter 242, Health and Safety 
Code; and         
		(2)  affiliated with a nonprofit religious 
organization described by 34 T.A.C. Section 3.322(b)(3), as that 
provision existed on January 1, 2003, before the date on which the 
action in which the damages are awarded is filed.
	(b)  A claimant may not collect damages awarded against a 
nursing institution described by Subsection (a) from the corpus or 
income of an endowment or fund that:
		(1)  consists of temporarily or permanently restricted 
funds that have been donated by third parties;
		(2)  is exempt from federal taxation; and                              
		(3)  is used to fund services provided by the nursing 
institution.   
	SECTION 2.  Chapter 40, Civil Practice and Remedies Code, as 
added by this Act, applies only to collection of damages awarded on 
or after the effective date of this Act.  The collection of damages 
awarded before the effective date of this Act is governed by the law 
in effect immediately before the effective date of this Act, and 
that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.