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By:  Janek                                                        S.B. No. 1392


A BILL TO BE ENTITLED

AN ACT

relating to regulation of distressed devices.                                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 432, Health and Safety Code, is amended 
by adding Section 432.0045 to read as follows:
	Sec. 432.0045.  INAPPLICABILITY TO CERTAIN TRANSFERS.  
(a)  In this section, "hospital" means a public or private hospital 
licensed under Chapter 241 and a hospital owned or operated by the 
state.
	(b)  Subject to Subsection (c), this chapter does not apply 
to the transfer of a distressed device:
		(1)  from a person licensed under this chapter to a 
hospital; or     
		(2)  from a hospital to another hospital.                              
	(c)  A person, including a hospital, making a transfer under 
Subsection (b) must provide an appropriate disclosure regarding the 
condition of the distressed device to the recipient of the 
distressed device.  For the purposes of this section, "appropriate 
disclosure" means a concise written statement that:
		(1)  is dated;                                                         
		(2)  contains the name of the transferring person; and                 
		(3)  describes the condition of the distressed device, 
if known, or if unknown, states that the device may not meet 
manufacturer's specifications.  The statement must include the 
following, "Prior to use, a distressed device that does not meet the 
manufacturer's specifications must be reconditioned."
	SECTION 2.  This Act takes effect September 1, 2003.