By:  Averitt                                                      S.B. No. 1510
	(In the Senate - Filed March 10, 2005; March 22, 2005, read 
first time and referred to Committee on State Affairs; 
April 20, 2005, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 9, Nays 0; April 20, 2005, 
sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1510                                   By:  Ellis

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:
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.
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