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Texas Civil Practice & Remedies Code - Section 40.001. Endowment Of Certain Nonprofit Institutions

Legal Research Home > Texas Lawyer > Civil Practice & Remedies Code > Texas Civil Practice & Remedies Code - Section 40.001. Endowment Of Certain Nonprofit Institutions

§ 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, § 1, eff. May 27, 2003.            

Last modified: August 11, 2007