Texas Special District Local Laws Code - SDLL § 1111.108. Leases

(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 considered 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) 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:

(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.  (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(d) (part).)