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A BILL TO BE ENTITLED
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AN ACT
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relating to liability of certain municipal hospital authorities |
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under a contract for the sale of a hospital. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 262, Health and Safety |
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Code, is amended by adding Section 262.0335 to read as follows: |
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Sec. 262.0335. LIABILITY OF CERTAIN MUNICIPAL HOSPITAL |
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AUTHORITIES UNDER CONTRACT FOR SALE OF HOSPITAL. (a) This section |
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applies only to a municipal hospital authority wholly located in a |
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county with a population of less than 70,000. |
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(b) A municipal hospital authority that enters into a |
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contract to sell a hospital owned by the authority waives |
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governmental immunity to suit for the purpose of adjudicating a |
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claim for breach of the contract. |
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(c) For a breach of contract claim described by Subsection |
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(b), a claimant may not be awarded: |
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(1) a total amount that exceeds the amount due and owed |
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by the municipal hospital authority under the contract; or |
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(2) consequential or exemplary damages. |
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(d) A municipal hospital authority that enters into a |
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contract to sell a hospital owned by the authority may indemnify the |
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purchaser of the hospital according to the terms of the contract. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract entered into on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2023. |