lion. Joe Resweber Opinion 130. M-510 

County Attorney 

Harris County Courthouse Re: Authority of Harris County 

Hous ton, Texas Hospital District to execute 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 regarding 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 '2a mw....' 

"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 ~iospital District, i.e., revenues beyond 

those for the current fiscal or budget 

vear?” 

The llarris County 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 ,shall never 

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. Furthermore, the provisions of Section 7 of Article XI of the Constitution relative to the debt of cities and counties do 

not apply, since a County Hospital District is a political subAidsion of the State which is a different aovernmental bodv 

from that of a city or county. Bexar Countjr Hospital 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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