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                                                                  H.B. No. 2453




AN ACT
relating to the liability of a hospital district management contractor and certain public servants. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 108.002(a) and (b), Civil Practice and Remedies Code, are amended to read as follows: (a) Except in an action arising under the constitution or laws of the United States, a public servant [, other than a provider of health care as that term is defined in Section 108.002(c),] is not personally liable for damages in excess of $100,000 arising from personal injury, death, or deprivation of a right, privilege, or immunity if: (1) the damages are the result of an act or omission by the public servant in the course and scope of the public servant's office, employment, or contractual performance for or service on behalf of a state agency, institution, department, or local government; and (2) for the amount not in excess of $100,000, the public servant is covered: (A) by the state's obligation to indemnify under Chapter 104; (B) by a local government's authorization to indemnify under Chapter 102; (C) by liability or errors and omissions insurance; or (D) by liability or errors and omissions coverage under an interlocal agreement. (b) Except in an action arising under the constitution or laws of the United States, a public servant [, other than a provider of health care as that term is defined in Section 108.002(c),] is not liable for damages in excess of $100,000 for property damage if: (1) the damages are the result of an act or omission by the public servant in the course and scope of the public servant's office, employment, or contractual performance for or service on behalf of a state agency, institution, department, or local government; and (2) for the amount not in excess of $100,000, the public servant is covered: (A) by the state's obligation to indemnify under Chapter 104; (B) by a local government's authorization to indemnify under Chapter 102; (C) by liability or errors and omissions insurance; or (D) by liability or errors and omissions coverage under an interlocal agreement. SECTION 2. Chapter 261, Health and Safety Code, is amended by adding Subchapter C to read as follows:
SUBCHAPTER C. LIABILITY OF NONPROFIT MANAGEMENT CONTRACTOR
Sec. 261.051. DEFINITION. In this subchapter, "municipal hospital management contractor" means a nonprofit corporation, partnership, or sole proprietorship that manages or operates a hospital or provides services under contract with a municipality. Sec. 261.052. LIABILITY OF MUNICIPAL HOSPITAL MANAGEMENT CONTRACTOR. A municipal hospital management contractor in its management or operation of a hospital under a contract with a municipality is considered a governmental unit for purposes of Chapters 101, 102, and 108, Civil Practice and Remedies Code, and any employee of the contractor is, while performing services under the contract for the benefit of the hospital, an employee of the municipality for the purposes of Chapters 101, 102, and 108, Civil Practice and Remedies Code. SECTION 3. Section 285.071, Health and Safety Code, is amended to read as follows: Sec. 285.071. DEFINITION. In this chapter, "hospital district management contractor" means a nonprofit corporation, partnership, or sole proprietorship that manages or operates a hospital or provides services [as a part of a rural health network as defined under 42 U.S.C. Section 1395i-4(g)] under contract with a hospital district that was created by general or special law [and that has a population under 50,000]. SECTION 4. Section 285.072, Health and Safety Code, is amended to read as follows: Sec. 285.072. LIABILITY OF A HOSPITAL DISTRICT MANAGEMENT CONTRACTOR. A hospital district management contractor in its management or operation of a hospital under a contract with a hospital district is considered a governmental unit for purposes of Chapters 101, 102, and 108, Civil Practice and Remedies Code, and any employee of the contractor is [are], while performing services under the contract for the benefit of the hospital, an employee [employees] of the hospital district for the purposes of Chapters 101, [and] 102, and 108, Civil Practice and Remedies Code. SECTION 5. Section 108.002(c), Civil Practice and Remedies Code, is repealed. SECTION 6. This Act takes effect September 1, 2003, and applies only to a suit filed on or after that date. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2453 was passed by the House on May 6, 2003, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 2453 on May 30, 2003, by a non-record vote. ______________________________ Chief Clerk of the House I certify that H.B. No. 2453 was passed by the Senate, with amendments, on May 28, 2003, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: __________________ Date __________________ Governor