By:  Harris, Deuell                                               S.B. No. 313
	(In the Senate - Filed January 29, 2003; February 6, 2003, 
read first time and referred to Committee on State Affairs; 
March 19, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 9, Nays 0; March 19, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 313                                    By:  Ellis


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)  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; 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 a nonprofit religious 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 by the donor or grantor at the time the 
donation or grant is made by:
			(A)  the express language, action, or agreement of 
the donor or grantor; or
			(B)  the manner in which the donation or grant was 
solicited by the donee or grantee.
	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.



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