Sec. 261.013.  FORM AND TERMS OF LEASE IN MUNICIPALITY OF 25,000 OR LESS.  (a)  The governing body of a municipality with a population of 25,000 or less may lease all or part of a hospital owned by the municipality for operation by the lessee as a public hospital under terms that are satisfactory to the governing body and the lessee.  The term of the lease may not exceed 50 years.
(b)  The lease must:
(1)  be authorized by ordinance or resolution adopted by the governing body; 
(2)  be executed on behalf of the municipality by the mayor and the municipal secretary or clerk;  and
(3)  have the seal of the municipality impressed on the lease.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.