lion.Joe Resweber Opinion 130.M-510
County Attorney
Harris County Courthouse Re: Authority of Harris County
Hous ton, Texas Hospital District to exe-
cute a lease contract
Dear Sir: obligating future revenues.
In your request for an opinion you state the
following:
“The Harris County Hospital District was
created under the provisions of Article 4494n.
Vernon's Civil Statutes. Attorney General's
Opinion No. M-223 (1968). The administrator of
such District has requested an opinion regard-
ing the legality of entering a leasing contract
for a complete X-Ray equipment system for the
District's hospitals.
"Among the terms set out in the attached,
lease conditions accompanying the opinion
request was the following provision:
'LZASE PERIOD: The initial lease
contract period shall be 60 months,
with option to renew for '2amw....'
"It is contemplated that the contract rental
will be paid either monthly or yearly. The
fiscal or budget year of the Hospital District
runs from April 1 to March 31 each year. Thus
the contract in question, having a contract
period of five years, would naturally require
the Board of Managers of the Rospital
District to obligate revenues of the District
beyond those-for the current fiscal or
budget year.
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.
iron.Joe Resweber, Page 2 (M-510)
"The question which we present, therefore,
for your consideration and answer, is:
Way the Board of Managers of
the Harris County Hospital District
legally enter into a lease contract
for an X-Ray Zquipment system for a
period of five years and thereby
obligate future revenues of the ~iospi-
tal District, i.e., revenues beyond
those for the current fiscal or budget
vear?”
The llarrisCounty hospital District was created under
the provisions of Article 4494n, Vernon's Civil Statutes. In
Section 5b(a) of the statute, the Board of Managers of the
hospital District, with the approval of the Commissioners' Court,
is given the power to lease equipment and all other faciliticc
and services the Hospital District may require.
Article IX, Section 4, ConstituMon of Texas, which
authorizes the creation of County Hospital Districts, expressly
provides that the obligations of such districts ,shallnever
become a charge against the state of Texas and, therefore.
the provisions of Section 49 of Article III, Constitution of Texas,
regarding the debts of the State are not applicable. Further-
more, the provisions of Section 7 of Article XI of the Consti-
tution relative to the debt of cities and counties do
not apply, since a County Hospital District is a political sub-
Aidsion of the State which is a different aovernmental bodv
from that of a city or county. Bexar CountjrHospital DIE&=.
Cc;1;4z,n ~~~,~~1~8~d(~~650:Tex.Sup.1959). Attorney General
In your memkandum brief you state
that in the lease contract the Hospital District will-include
a provision that such lease agreement is made contingent upon
the availability of funds to be appropriated by the Board of
Hanagers each fiscal or budget year of the contract period.
In view of the foregoing, it is our opinion that the hospital
District may legally enter into such five year contract.
SUN MARY
-------
,.
The Board of Managers of Harris County llospitaj
District may legally enter into a lease contract for
an X-Ray equipment system for a period of five years
-244 4-
Hon. Joe Resweber, Page 3 (M-510)
if such lease agreement ia made contingent upon
the availability of funds to be appropriated by
the Board of Managers each fiscal or budget year
of such five year period.
General of Texas
Prepared by Jack Sparks
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
George Xelton, Vice Chairman
Gordon Cass
Alan Minter
Kenneth L. Nordquirt
Linward Shivers
MEADE F. GRIFFIN
Staff Legal Assistant
NOLA WHITE
First Assistant
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