By: Parker S.B. No. 1097

(In the Senate - Filed February 22, 2023; March 9, 2023, read first time and referred to Committee on State Affairs; April 12, 2023, reported adversely, with favorable Committee Substitute by the following vote: Yeas 11, Nays 0; April 12, 2023, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1097 By: Hughes

A BILL TO BE ENTITLED

AN ACT

relating to liability of certain municipal hospital authorities under a contract for the sale of a hospital.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 262, Health and Safety Code, is amended by adding Section 262.0335 to read as follows:

Sec. 262.0335. LIABILITY OF CERTAIN MUNICIPAL HOSPITAL AUTHORITIES UNDER CONTRACT FOR SALE OF HOSPITAL. (a) This section applies only to a municipal hospital authority wholly located in a county with a population of less than 70,000.

(b) A municipal hospital authority that enters into a contract to sell a hospital owned by the authority waives governmental immunity to suit for the purpose of adjudicating a claim for breach of the contract.

(c) For a breach of contract claim described by Subsection (b), a claimant may not be awarded:

(1) a total amount that exceeds the amount due and owed by the municipal hospital authority under the contract; or

(2) consequential or exemplary damages.

(d) A municipal hospital authority that enters into a contract to sell a hospital owned by the authority may indemnify the purchaser of the hospital according to the terms of the contract.

SECTION 2. The change in law made by this Act applies only to a contract entered into on or after the effective date of this Act.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2023.

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