Texas 2023 - 88th Regular

Texas House Bill HB2573 Compare Versions

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11 88R9515 MZM-F
22 By: Stucky H.B. No. 2573
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to liability of certain municipal hospital authorities
88 under a contract for the sale of a hospital.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Subchapter C, Chapter 262, Health and Safety
1111 Code, is amended by adding Section 262.0335 to read as follows:
1212 Sec. 262.0335. LIABILITY OF CERTAIN MUNICIPAL HOSPITAL
1313 AUTHORITIES UNDER CONTRACT FOR SALE OF HOSPITAL. (a) This section
1414 applies only to a municipal hospital authority wholly located in a
1515 county with a population of less than 70,000.
1616 (b) A municipal hospital authority that enters into a
1717 contract to sell a hospital owned by the authority waives
1818 governmental immunity to suit for the purpose of adjudicating a
1919 claim for breach of the contract.
2020 (c) For a breach of contract claim described by Subsection
2121 (b), a claimant may not be awarded:
2222 (1) a total amount that exceeds the amount due and owed
2323 by the municipal hospital authority under the contract; or
2424 (2) consequential or exemplary damages.
2525 (d) A municipal hospital authority that enters into a
2626 contract to sell a hospital owned by the authority may indemnify the
2727 purchaser of the hospital according to the terms of the contract.
2828 SECTION 2. The change in law made by this Act applies only
2929 to a contract entered into on or after the effective date of this
3030 Act.
3131 SECTION 3. This Act takes effect September 1, 2023.