lion.Joe Resweber Opinion 130. M-510 County Attorney Harris County Courthouse Re: Authority of Harris County Houston, Texas Hospital District to execute a lease contract **Dear** Sir: obligating future revenues.

In your request for an opinionyou state the following:“TheHarris County HospitalDistrictwas created under the provisions **of** Article **4494n.** Vernon's Civil Statutes. Attorney General's Opinion No. M-223 (1968). The administratorof 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 accompanyingthe opinion request was the followingprovision:

'LZASEPERIOD: The initial lease contract period shallbe 60months, with option to renew **for** '2a mw....'
"It is contemplated that the contract rental will be paid eithermonthly 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 fiveyears,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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"Thequestionwhich we present, therefore, for your considerationand 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 fiveyears and thereby obligate future revenues of the ~iospital District, i.e., revenuesbeyond **those** for **the current**  fiscalor budget vear?” The llarris

CountyhospitalDistrictwas createdunder 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 approvalof the Commissioners'Court, is given the power to lease equipment and all other faciliticc and services the Hospital Districtmay require.

Article IX, Section 4, ConstituMon **of** Texas, which authorizes the creation of County HospitalDistricts, 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, Constitutionof 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 HospitalDistrict is a political subAidsion **of** the Statewhich 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 Districtwill-include a provision that such lease agreement ismade contingent upon the availability of funds to be appropriatedby the Board of Hanagers each fiscal or budget year of the contractperiod. In view of the foregoing, it is our opinion that the hospital District may legally enter into such fiveyear contract. SUN MARY ------- ,. The Board of Managers of Harris County llospitaj District may legallyenter into a lease contract for an X-Ray equipment system for aperiod of five years

-244 4-Hon. Joe Resweber, Page 3 (M-510) if such lease agreement iamade contingent upon the availability of funds to be appropriated by the Board of Managers each fiscal or budget year of such fiveyear period.

General of Texas Prepared by Jack Sparks Assistant Attorney General APPROVED: OPINION COMMITTEE 

### KernsTaylor, 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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