Texas Special District Local Laws Code

§ 1010.115 — LEASES

SD § 1010.115Title 3. HEALTH · Part A. HOSPITAL DISTRICTS · Ch. 1010. BURLESON COUNTY HOSPITAL DISTRICT · Art. C. POWERS AND DUTIES

Statute text

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(a)The district through the board may lease all or part of the buildings and facilities comprising the hospital system to any person on terms the board considers to be in the district's best interest. The term of a lease may not exceed 40 years.

(b)When leasing a building or other facility, the board may delegate as it considers appropriate the board's power to manage, control, and administer the leased buildings and facilities to furnish hospital care.

(c)For each leased building or other facility, the board shall provide that the lessee charges sufficient rates for services rendered or goods provided at the leased premise 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 premise as the lessee is required to pay under the lease. The rates also must enable the lessee to pay lease rentals to the district that will be sufficient, when taken with any other source of the district's estimated revenue that are pledged for the same purpose, 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 other fund as required by the bond resolution or trust indenture authorizing the issuance of the bonds; and

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Legislative history

Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.