By:  Kolkhorst (Senate Sponsor - Ogden)                           H.B. No. 2453
	(In the Senate - Received from the House May 7, 2003; 
May 9, 2003, read first time and referred to Committee on 
Intergovernmental Relations; May 24, 2003, reported adversely, 
with favorable Committee Substitute by the following vote:  Yeas 5, 
Nays 0; May 24, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2453                                   By:  Gallegos


A BILL TO BE ENTITLED

AN ACT


relating to the definition of a hospital district management 
contractor.  
	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.



* * * * *