§ 101834 Hospital Authority Termination Liabilities

• •When a hospital authority ends, its debts about selling assets stay with the authority.
• •The county does not inherit those debts.
• •The only exception is if the debt is owed to the State of California.

A city’s hospital authority decides to close and sell its building. The authority owes money to a contractor for work done, but the county does not have to pay that debt.

Because the law says the authority’s liabilities stay with the authority, the county isn’t responsible for paying the contractor, unless the money owed is to the State of California.