By:  Averitt                                                      S.B. No. 1510


A BILL TO BE ENTITLED

AN ACT

relating to the liability of a nonprofit management contractor of 
county hospital authorities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 264, Health and Safety Code, is amended 
by adding Subchapter E to read as follows:

SUBCHAPTER E.  LIABILITY OF NONPROFIT MANAGEMENT CONTRACTOR
	Sec. 264.061.  DEFINITION.  In this subchapter, "county 
hospital authority management contractor" means a nonprofit 
corporation, partnership, or sole proprietorship that manages or 
operates a hospital or provides services under a contract with a 
county hospital authority.
	Sec. 264.062.  LIABILITY OF COUNTY HOSPITAL AUTHORITY 
MANAGEMENT CONTRACTOR.  A county hospital authority management 
contractor in its management or operation of a hospital under a 
contract with a county hospital authority 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 county hospital authority for the 
purposes of Chapters 101, 102, and 108, Civil Practice and Remedies 
Code.
	SECTION 2.  This Act applies only to an action filed on or 
after the effective date of this Act.  An action filed before the 
effective date of this Act, including an action filed before that 
date in which a party is joined or designated after that date, is 
governed by the law in effect immediately before the change in law 
made by this Act, and that law is continued in effect for that 
purpose.
	SECTION 3.  This Act takes effect September 1, 2005.