Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 88(R)

Senate Bill 1097

Senate Author:  Parker

Effective:  5-23-23

House Sponsor:  Stucky


            Senate Bill 1097 amends the Health and Safety Code to establish that a municipal hospital authority that is wholly located in a county with a population of less than 70,000 and that enters into a contract to sell a hospital owned by the authority waives governmental immunity to a suit for the purpose of adjudicating a claim for breach of the contract. The bill prohibits a claimant for such a breach of contract claim from being awarded consequential or exemplary damages or a total amount that exceeds the amount due and owed by the municipal hospital authority under the contract. The bill authorizes a municipal hospital authority that enters into such a contract to indemnify the purchaser of the hospital according to the terms of the contract.