S.B. No. 313




AN ACT

relating to collection of civil damages awarded against certain 
nonprofit 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 CERTAIN NONPROFIT INSTITUTIONS.  
(a)  This section applies only to damages awarded against:
		(1)  a nonprofit institution or facility:                              
			(A)  licensed under Chapter 242, 246, or 247, 
Health and Safety Code, or Chapter 42, Human Resources Code; and
			(B)  that, before the date on which the action in 
which the damages are awarded is filed, is affiliated with:
				(i)  a nonprofit religious organization that 
is exempt from federal income tax under Section 501(c)(3), Internal 
Revenue Code of 1986, as amended, and that is a nonprofit religious 
organization described by 34 T.A.C. Section 3.322(b)(3), as that 
provision existed on January 1, 2003, or a convention or 
association of those organizations; or
				(ii)  a local Jewish Federation; or                                  
		(2)  a program operated by an institution or facility 
described by Subdivision (1).
	(b)  A claimant may not collect damages awarded against an 
institution, facility, or program described by Subsection (a) from 
an endowment fund, restricted fund, or similar fund or account, or 
the income derived from the corpus of the fund or account, if:
		(1)  the fund or account is exempt from federal 
taxation;            
		(2)  the corpus, income, or a distribution from the 
fund or account is used to assist in funding care provided by a 
nursing institution licensed under Chapter 242, Health and Safety 
Code, and affiliated with an organization described by Subsection 
(a)(1)(B);
		(3)  the corpus of the fund or account is derived from 
donations or grants from third parties or public sources; and
		(4)  the use of the fund or account is temporarily or 
permanently restricted:
			(A)  by the donor or grantor at the time the 
donation or grant is made by:
				(i)  the express language, action, or 
agreement of the donor or grantor; or
				(ii)  the manner in which the donation or 
grant was solicited by the donee or grantee; or
			(B)  by the board governing the fund or account at 
the time the donation or grant is accepted.
	SECTION 2.  Chapter 40, Civil Practice and Remedies Code, as 
added by this Act, applies only to the 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.





______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 313 passed the Senate on 
March 27, 2003, by the following vote:  Yeas 31, Nays 0; and that 
the Senate concurred in House amendments on May 14, 2003, by the 
following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 313 passed the House, with 
amendments, on May 6, 2003, by the following vote:  Yeas 143, 
Nays 0, two present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor