78R12823 AJA-D


By:  Harris, et al.                                               S.B. No. 313

Substitute the following for S.B. No. 313:                                    

By:  King                                                     C.S.S.B. No. 313



A BILL TO BE ENTITLED

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 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 governing board of the institution or 
facility 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.