Tex. Spec. Dist. Local Laws Code § 1111.108 · Subchapter C. POWERS AND DUTIES
LEASES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The district through the board may lease all or part of the district's property, including the buildings and facilities comprising the hospital system, to any person on terms considered to be in the district's best interest. The term of a lease may not exceed 80 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) If all or part of a district building or other facility is leased, 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 any premium on the bonds as they become due;
(3) create and maintain a bond reserve fund and any other fund required by the bond resolution or trust indenture authorizing the issuance of the bonds; and
(4) pay all other charges, fees, costs, and expenses that 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 buildings and other facilities owned by the district. If all or part of the district's buildings or other facilities are leased, the district may delegate to the lessee the duty to establish the systems, methods, routines, procedures, and policies for the operation of the leased premise.
Notes and commentary — not statutory text
History
Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 417 (H.B. 2607), Sec. 2, eff. June 20, 2025.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/SD/htm/SD.1111.htm
- Text hash
- sha256 14feb47deef487edcc9d3b172afff0c42de46dac4a3b0e15e312483c491e93bf
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.