May Calhoun and Union counties enter into an interlocal agreement pursuant to 14-14-910 for the operation of the Calhoun County hospital? Can the interlocal entity lease the property from Calhoun County? Can it then sublease the property to a private partnership? Can the county continue to coll

STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL JUSTICE BUILDING, LITTLE ROCK 72201 a "STEVE CLARK May 28, 1985 ” (501) 371-2007 /ORNEY GENERAL OPINION NO. 85-126 Honorable Jodie Mahony State Representative 406 Armstrong Building EL Dorado, AR 71730 Dear Representative Mahony: This is in response to your request for an opinion on the following questions: 2 . m 1. May Calhoun and Union Counties enter into an . inter-local agreement pursuant to Ark. Stat. Ann. §17-4007 for the purpose of managing and operating the Calhoun Courity, Hospital? 2. Whether the inter-local entity can lease the property from Calhoun County. 3. Whether the entity can then legally sublease the hospital to a private partnership and continue to provide funds and management support until the hospital is self- supporting. 4. Whether Calhoun County can continue to collect millage. for.maintenance and operation after the hospital is subleased to a private partnership. Calhoun and.Union Counties may enter into an inter- - local agreement pursuant to §17-4007. The entity may then lease the hospital from Calhoun County pursuant to §17-1504, The inter~local entity may then sublease the hospital to a private partnership but may not continue to provide funds for the management of the hospital. These funds would include money already collected from the millage and money to be collected in the future. Any funding would benefit the private partnership which would be in violation of the language Of Ark. 12, §5 of the Arkansas Constitution. Art. 12, §5 reads: No county, city, town or other municipal corporation shall become a stockholder in any company, association or corporation; or obtain or appropriate money for, or loan its credit to, any corporation, association, institution or individual. — Honorable Jodie Mahony Page 2 _. May 28, 1985 For the foregoing reasons it is my opinion that Calhoun ‘and Union Counties may enter into an inter-local agreement, lease the Calhoun County Hospital and sublease it to a private partnership, but may not continue to fund the hospital after it has been sublet. The foregoing opinion, which I hereby approve, was prepared by Assistant Attorney General E. Jeffery Story. STEVE |CLARK Attorney General Prd SC/pw 7