Untitled Texas Attorney General Opinion ( 1940 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN .: Eonorable noaim F. Rainey, mx&.lent The Uxdversity of Totas Austin, Texas ,amltoraker or the hoqdtali- gent oity patient8. Team5 aad the City of the John Scaly XOS#tal in oow or 8id.a Ze-analotaeb. on @.xlg thrw t&o g#wee88 tf.onsin the Lt67adniebriation of Utiversity aab of the John urdrertity of Texas 03m8. lea v0 have Qome 'to the pla0s rhere 8~36 the Reg0nt6 0P The UaL+eroity ogato the present svmtrwt ana thus to return the John $ealy HocspStal to the uWtro1 of a3 university of 263x6~5. In other words, re deeire tci r&urn to the status quo ante by the mutual abrO&iOn of al% &"Ireaentcontraat* *@.wq this contraot is abrogated we actually SmLre then to enter into a 12811ocmtract with the City & Clsrlroefos $or the eara of' thhcsir Indigent rdak. It fa prOpooed urnbr 2%..5 Honorable namer 2. nsinep - Page 2 the new ooutraot that the City of Galveston will pay to The Uaivereity of Texas the mm Of $40,000 per year %n return for which The University of Terns will agree to provide hospitalization for the indigent sick of the City of Galveston. The city, through its health depart- mnt, mill designate those that they regard as indigent. *It Is the desire of both the City of Galveston end the Regents of The Uuirersity of Texas to make this neu ar- rangement ulder present leas, if possible, anil we are, therefore, asking for 821 Opinion of your &3pertment upon the rollow.ln$ questionea 91. Whether or not the City Couuoil of the Gity of Galveston an& the Boar6 of Regents have the power to enter Into a contraof abrogtiug the existing lease oontraot between the %ty axxl the University in reger~ to the operation of the John 8ealy Hospital. s2. Whothor or not the Board of Regents here power ami authority to Operate the John 3ealy lioepdtal in come&ion with the Medioal School et Galveston. a3. Whether or not the Board of Regents ham the power to enter Into a oontract with the City of Gal- veston to take oar-aof’the i-gent patients of the city who rarybe designated by the health offioer of the CSy. l4 .Whether or not sn eemnt on the pert of the Q.ty to pay the Unlreretty T 0,000 a yeer for en iudefinite period of time for the oare and hospitaltes- t-ion of indigent patients would create a debt against the City whioh would be prohibited by the GolxititUthnl of Texas. 86. In the event that present laws will not permit us to make the new errengement whiah I hare out- lined above, we would greatly appreoiate it tf your Be- prtnront aould suggest to us the type of legislation which se should have to ask the Leg%slature to pass in order to enable us to nuke the new &esiretl err%ngement.a We answer your questions categorloally: 1. The city Council of the City of Galveston 216 xomoreble Boner P. afdney - Peg8 8 ami the Board of Regents of the 3tete Univer6it.y do hav8 the paer to enter Into an agreement or contract abrognt- j.w the existfng lease contract between than: in regsr% to the operntion of the John Sooly Hospftal. The City of Gelveston at present 16 operating the John Scaly Hoepita un%er a long4A.m leaee from the University of Texas, the ovwm of the Hospital. srro6p8ctl.re of the queefion of the mliaity of the lease by vhich the Unirerelty of Texae let the itospitel to the City OS Galveston, (an% we are not at sll~implying thti.there WAS 6ny rice in the traneacitlon) tlm parfi86 mutually my ebrogate the leeoe, eai thus re- store the stetu6 quo ante. The oanoelletion of the rtaelp ro0al cmezmnte of the p6rtiee mnstitutes reoiproael eon- siderotlonefor the neir oontrlrot 0S ebrogetion. 2. Upon the execution of the contract or agree- ment 6brOg8tiXIg the present leaseI the HospIte villbe, of cour6e, restore% to the University of Texas, en% the Unlmzm%ity will own an% hold the same es of the orQ#nal estate. The Boer% OS Regente of the unirer6ity, tbere- Sore, vlll then h6oe th8 pover sn% euthority to operete the nospitdl in oonneetion with the Ate%ioal School at Gal- veston, If 6~9.1 operetlon be nwoesary, or oven incidental- ly neaessary, to the proper operetion of the Ltedieel School. 3. LIpon general principle6 of oo~porate law, the Board of Regents of the Univ8roit.y would have the p0wer to enter into a contra& vlth the City of Galveston to t6lr.e car8 of the indigent pstients of the City, if the doing so v66 reasonsbly neo866as-y as an incident to the operation of it6 md.Acal school at Galreston. The Board would not have the authorfty or power, hovever, t0 m&e 6uch a eon- tract with the City of Galveston emopt as 6.n incident to the Board*6 power to operate the Me%l6al School. The State University is operating a medical 60hoo1, not a public hospital. 4. Such an agreement on the past of th0 City, including it6 pronrlee to pay the Utiyeraity $&O,OOO.OO a year for an IPdeflnite period of time for the aWe an% Honorable Eemsr P. Rainey - Page I: hos#tali5atioa Of' i-gent patients, would not areate a debt against the City which would be pohibited by the Constitution of Texas, nor would it oroate a debt at all for the single reason that such a contract would be voidable for iadeflniteness of duration, and could be temdnated by either party at ~111. Such an undertaMng aould be entered into by tho City only through contraate for one year at a tiats to avoid the constitut5.onal requirement for prtisI,on for payment. Verytrulygaurs APPROP JAB 2, lg41 ATTOBICBI QE%ERAL OF TRXAS OS-U6