Opinion No. (2004)

BILL LOCKYER Attorney General GREGORY L. GONOT Deputy Attorney General THE HONORABLE BONNIE GARCIA, MEMBER OF THE STATE ASSEMBLY, has requested an opinion on the following question: May a hospital district board of directors enter into a lease agreement with a healthcare district director if the healthcare district board of directors is required to approve the agreement under the terms of a separate lease between the hospital district and the healthcare district? CONCLUSION A hospital district board of directors may not enter into a lease agreement with a healthcare district director if the healthcare district board of directors is required to approve the agreement under the terms of a separate lease between the hospital district and the healthcare district. ANALYSIS We are informed that a hospital district ("HD") has recently leased part of one of its facilities to a healthcare district ("HCD") for the operation of a rural health clinic. 1 More than half of the facility will be used by the HCD; the remaining space in the facility will be leased to other parties. A member of the HCD board of directors, who owns and operates a home health care business, is considering whether to…