CHAPTER 40. AVAILABILITY OF CERTAIN FUNDS TO PAY DAMAGES
CIVIL PRACTICE AND REMEDIES CODE
TITLE 2. TRIAL, JUDGMENT, AND APPEAL
SUBTITLE C. JUDGMENTS
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.
Added by Acts 2003, 78th Leg., ch. 133, Sec. 1, eff. May 27,
2003.