**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  

### TEXAS **AUSTIN**

Eonorable noaim F. Rainey, mx&.lent **The Uxdversity**  **of** Totas **Austin, Texas** 

,amltoraker or the hoqdtaligent oity patient8.



### Team5aadtheCityof theJohnScalyXOS#tal in oow or8id.aZe-analotaeb. on@.xlg thrw 

### t&og#wee88 tf.ons in theLt67adniebriation of Utiversity aab of the John urdrertity of Texas 03m8. lea 

### v0 have 

### Qome'tothepla0srhere 8~36the Reg0nt6 0P The UaL+eroity ogato the present svmtrwt ana thus to return the **John $ealy**  **HocspStal to**  **the** uWtro1 of a3 university of 263x6~5. In 

### otherwords,redeeire tcir&urn to the status quo ante by themutual abrO&iOn of al% &"Ireaent contraat* *@.wq this contraot is abrogated we actually SmLre then to enter into a 12811 ocmtract with the City & Clsrlroefos $or the eara of'thhcsir Indigent rdak. It fa prOpooed urnbr .:

## 2%..5

Honorable namer 2. 

### nsinep - Page2

the new ooutraot **that** the City of Galveston will pay to The Uaivereity of Texas the mm Of $40,000 per year %n return for which The University of Terns will agree to provide hospitalization **for** the indigent sick of the City of Galveston. The city, through its health departmnt, mill designate those that they regard as indigent.
*It Is the desire ofboth the City of Galveston end the Regents of The Uuirersity of Texas tomake this neu arrangement ulder **present leas,**  **if** possible, anilwe are, therefore, asking for 821 Opinion of your &3pertment upon the rollow.ln$questionea

91. Whether 

### or not the City Couuoil of the Gity of Galveston an& theBoar6 of Regents have the power to enter Into a contraof abrogtiug the existing lease oontraot between the %ty axxltheUniversity in **reger~ to**  the **operation** of the John 8ealy Hospital.

s2. Whothor or not the Board of Regents here **power** ami authority **to Operate**  the John 3ealy lioepdtal in come&ion with theMedioal School et Galveston.

a3. Whether or not the Board of Regents ham the power to enter Into a oontract with the City of Gal

### veston to take 

### oar-a of’ the i-gent 

### patientsofthecity who rarybe designated by the health offioer of the CSy.



### l 4. Whether or not sn **eemnt** on the pert of the Q.ty to pay theUnlrerettyT 0,000 ayeer for en iudefinite period of time for the oare and hospitaltest-ionof indigent patients would create a debt against the City whioh would be prohibited by the **GolxititUthnl of**  **Texas.** 

### 86. In the event that present laws will not permit us tomake the new errengement whiah Ihare outlined above, we would greatly appreoiate it tf your Be

### prtnrontaould suggest to us the type of legislation which se should **have** to ask the Leg%slature to pass in order to enable us tonuke the new &esiretlerr%ngement.a

We answer your questions categorloally:

1. The city Council of the City of Galveston

## 216

xomorebleBonerP. afdney - Peg8 8

ami theBoard of Regents of the 3tete Univer6it.ydo hav8 the paer to enter Into an agreement or contract abrogntj.w the existfng lease contract between than:in 

### regsr% to the operntion of the John Sooly Hospftal.

The City of Gelveston at present 16 operating the John Scaly Hoepita un%er a long4A.m leaee from the University of Texas, the ovwm of the Hospital.

srro6p8ctl.reof the queefion of the mliaity of the lease by vhich theUnirerelty of Texae let the itospitelto the City OSGalveston, (an%we are not 

### at sll~implying thti.there WAS 6ny rice in the traneacitlon) tlm parfi86 mutually my ebrogate the leeoe, eai thus

## restore the stetu6 quo ante. The oanoelletion of the

## rtaelp ro0al cmezmnte of the p6rtiee mnstitutes reoiproael eon

### siderotlone

for the neiroontrlrot0S ebrogetion.

**2.** Upon the execution of the 

### contractoragreement6brOg8tiXIgthe present leaseI the HospIte villbe, of cour6e, restore% to the University of Texas, en% the Unlmzm%ity will own an% hold the same es of the orQ#nal 

### estate. TheBoer% 

### OSRegente of the unirer6ity, tbereSore, vlll then h6oe th8 pover sn% 

### euthorityto 

### operete the nospitdl in oonneetion with the Ate%ioalSchool at Galveston, If 6~9.1operetlon be nwoesary, or oven incidentally neaessary, to the proper operetion of the LtedieelSchool.

3. LIpongeneral principle6 of oo~porate law, the Board of 

### Regentsof the Univ8roit.ywould have the p0wer to enter into a contra& vlth the City of Galveston to t6lr.e car8 of the indigent pstients of the City, if the doing so v66 reasonsbly neo866as-y as an incident to the operation of it6 md.Acal school at Galreston. The Board would not have the authorfty or power, hovever, t0m&e 6uch a eontract with the City of Galveston emopt as 6.nincident to the Board*6 power to operate the Me%l6al School. The **State University**  is operating amedical 60hoo1, not a public hospital.

**4.** Such an agreement on the past of th0 City, including it6 pronrleeto pay theUtiyeraity $&O,OOO.OO a year for an IPdeflnite period of time for the aWe an%Honorable Eemsr P. Rainey - Page I:

**hos#tali5atioa Of'**  i-gent patients, would not areate a debt against the City which would be pohibited by the Constitution of Texas, nor would it 

### oroatea debt at all for the single reason that such a contract would **be** voidable for iadeflniteness of duration, and could be temdnated by either party at ~111.

Such an undertaMng aould be entered into by tho City only through contraate for oneyear at a tiats to avoid the constitut5.onalrequirement for prtisI,on for payment.

APPROP JAB 2, lg41

OS-U6 Verytrulygaurs
ATTOBICBIQE%ERAL 

### OFTRXAS