Texas Statutes
Subchapter C. Powers and Duties
Section 1046.118. Leases

Sec. 1046.118. LEASES. (a) The board may lease all or part of the facilities comprising the hospitals or hospital system on terms the board considers to be in the district's best interest.
(b) When leasing a facility, the board may delegate as it considers appropriate the board's power to manage, control, and administer the leased facilities to furnish hospital and medical care.
(c) For each leased facility, the lease must require the lessee to charge rates for services rendered or goods provided at the leased premises that, together with other sources of the lessee's revenue, produce an amount sufficient to enable the lessee to pay the expenses of operating and maintaining the leased premises required of the lessee under the lease. The lease must also require the lessee to pay lease rentals to the district that will be sufficient when taken with any other sources of the district's estimated revenue that are pledged for the same purposes to:
(1) pay the interest on any revenue or special obligation bonds that are payable wholly or partly from the lease rentals;
(2) create and maintain a sinking fund to pay the principal of and premium, if any, on the bonds as they become due;
(3) create and maintain a bond reserve fund and any other fund provided for in the bond order, resolution, or trust indenture authorizing the issuance of the bonds; and
(4) pay all other charges, fees, costs, and expenses the lessee is required to pay under the resolution or indenture.
(d) The lease, management agreement, bond resolution, or trust indenture may prescribe systems, methods, routines, procedures, and policies for the operation of the facilities owned by the district.
(e) A lease of a district hospital must require the lessee to operate the hospital in a manner that complies with the requirements of this chapter that would apply to the board if the board were operating the hospital.
Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

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