Untitled Texas Attorney General Opinion

QEWceof tfp Igttornep @enera &ate of fEexaa DAN MORALES ATTORNEY GENERAL March 21,199s Honorable Sonya Letson OpinionNo. DM-337 Potter County Attorney 303 courthouse Re: Whether section 157.002 of the Local Amarillo,Texas 79101 Government Code authorizes a county to provide medical coverage for district officers and related questions (RQ-624) Dear Ms. Letson: You have asked whether, pursuant to section 157.002 of the Local Government Code, a commissioners court may provide medical coverage for certain district officers in Potter County. You specifically refer to the judges of the 47th 107th. lSlst, 25 lst, and 320th disttict courts, the 47th district attorney, and the Potter County agricultural and home extension agents (the “county extension agents”). You also ask whether a reduction in medical benefits violates the Americans with Disabiities Act, 42 USC. ch. 126; whether the county would violate the Fourteenth Amendment to the United States Constitution if the county provided some district officers with medical insurance but not others; and whether sn order of the county commissioners court is invalid because it provides a different benefit package to a current district elected officer as opposed to a successtill challenger to that officer. You aver that the state provides the primary salary and benefits for each of the district judges, the district attorney, and the county extension agents to which you refer, although the county has certain budgetary responsibilities toward each of them. Indeed, section 659.012(c) of the Government Code (formerly V.T.C.S. art. 6813b, $3(b)) provides a district judge with an amaral salary from the state. Section 32.188 of the Government Code requires Potter County to supplement the salary a district judge receives from the state by paying an annual salary of not less than $3500 nor more than $6000. In addition, while the state pays the district attorney’s annual salary, see Gov’t Code 5 43.001. the county is authorized, but not required, to supplement the district attorney’s salary, see id. 85 46.001 (defining “prosecutor” to include district attorney), 46.002(l) (listing 47th district attorney as one to whom Government Code chapter 46 applies), 46.003(b) (authorizing commissioners court to supplement prosecutor’s state salary); Ran&l Corm&~Comm ‘rs Court v. Sherrod, 854 S.W.2d 914, 924 (Tex. App.- Amarillo 1993, no writ). You state that a district judge and a district attorney receive medical insurance coverage f%om the state. See Ins. Code art. 3.50-2, 5 3(a)(S)(A) (detining “employee”), ar amended by Acts 1993, 73d Leg., ch. 791, 5 43, at 3130, Honorable Sonya Letson - Page 2 (DM-337) 314445; id. § 13(b) (providing automatic basic insurance coverage to every t%ll-time employee). Finally, the Texas Agricultural Extension Service is an agency of Texas A&M University. Educ. Code $88.001(3). You state that an employee of Texas A&M University also receives medical insurance from the state. See Ins. Code srt. 3.50-3, $5 3(a)(4)(A), 11 (defining “employee” and providing insurance coverage for eligible employee). According to your letter, Potter County, by long-standing practice, has provided medical insurance for district judges, the district attorney, and county extension agents. Thus, these officers’ receive medical insurance coverage from the county ss well as from the state. You claim that the cost to the county “of providing this wverage to the district officers [about which you ask] is S39,OOO.OO.”To reduce spending, the wunty has proposed cutting medical coverage for these officers. The county commissioners court proposes to do so by phasing out medical coverage for district officers. You state that, under the proposal, the county will retain coverage for all current district officers, but when an incumbent district officer leaves office, the county will not provide medical wverage for the district officer’s successor. Accordingly, the county will “retain the insurance for the current occupant of the office even through subsequent terms of office. If the ofice[r] ran for reelection, and won, he is provided the coverage. However, a challenger who won would not be covered.” Your questions concern the propriety of this proposal to phase out medical coverage for district offtcers. A county commissioners court is a court of limited jurisdiction; it may exercise only those powers that the state constitution and statutes confer upon it, either explicitly or implicitly. Attorney General Opinion V-l 162 (1951) at 2 (and sources cited therein); see Canales v. Laughlin, 214 S.W.Zd 451, 453 (Tex. 1948); Renfo v. Shropshire, 566 S.W.2d 688, 670 (Tex. Civ. App.--Eastland 1978, writ refd n.r.e.); Attorney General Opinions JM-887 (1988) at 2 (and sources cited therein); MW-473 (1982) at 1 (and sources cited therein). Consequently, while a commissioners court has broad discretion to exercise powers expressly conferred upon it, the constitution or statutes must provide the legal basis for any action that the commissioners court takes. Canales, 214 S.W.2d at 453. You believe that section 157.002 of the Local Government Code authorizes the county to provide medical coverage for the district judges, district attorney, and county extension agents who work in the county. ‘For purposesof this opinion, we will assumethat a districtjudge, district attomcy, aad couaty extasion agent are “district officers” in the context of section 157.002(a)(2) of the Local Govemnmt code. p. 1788 Honorable Sonya Letson - Page 3 (DM-337) Section 157.002(a) of the Local Government Code provides in pertinent part as follows: The commissioners court by rule may provide for medical care and hospitalization and may provide for compensation, accident, hospital, and disability insurance for the following persons if their salaries are paid from the fin& of the county . . or if they are employees of another governmental entity for which the county is obligated to provide benefits: (2) county and district officers and their deputies and assistants appointed under Subchapter A, Chapter 151. [Emphasis added.] We know of no statute that requires the county to provide benefits for the officers about which you ask, who are employees of another governmental body-the state. You do not inform us whether the county is contractually obligated to provide benefits for any of the district officers to which you refer. We will assume, therefore, that the county is not so obligated. Accordingly, section 157.002(a) authorizes the county to provide medical benefits for the district judges, district attorney, and county extension agents only “if their salaries are paid from the fbnds of the county.” We understand that the county does not pay the salaries of the county extension agents; hence, section 157.002(a) does not authorize the county to provide medical coverage for them. Pursuant to section 32.188 of the Government Code, however, Potter County must pay a supplemental salary to the district judges of the 47th 108th 181st, 251st, and 320th districts. Additionally, pursuant to section 46.003, the county may pay a supplemental salary to the 47th district attorney. You do not inform us whether Potter County pays a supplemental salary to the district attorney. If the county does not supplement the 47th district attorney’s state salary, we believe that section 157.002(a)(2) does not authorize the county to provide for the district attorney’s medical care and hospitalization. If the county supplements the district attorney’s state salary, then we analyze the application of section 157.002(a) of the Local Government Code to the district attorney in the same way that we analyze its application to the district judges. We will assume that Potter County pays a supplemental salary to the 47th district attorney. We must determine, therefore, whether section 157.002(a) authorizes a county to provide for the medical care and hospitalization of district judges and a district attorney. On its face, section 157.002(a) authorizes a county to provide for the medical care and hospitalization of a district offker whose salary is “paid from the funds of the county.” p. 1789 Honorable Sonya Letson - Page 4 (DM-337) With no legislative history indicating the contrary? we believe that section 157.002(a) authorizes a county to provide medical coverage for a district officer who receives a salary from county fitnds, even a supplemental salary. Accordingly, Potter County may provide 2The kgislatme enacted the statutory predecessor to section 157.002 of the LocaJ Gownmmnt Code in 1941. See Acts 1941, 47th Leg., ch. 472. In part, the origtnal enactment authorized the wmmissioners court in a county “of five hundred thousand (5DO,DOO) population or mom. . . to formutate a generat pc~~rmel system and mks aud regutations for medicat care, hospitatimxion and f&dent inauranee,” id. caption, *at 754, that would apply to “all deputies, assistants, and employees of the county,. . and the deputies and assistants appointed by county and district offtcers.. , where the sataries are patd fmm wmty [timds],” id. p 1. The statute timber authorized the wmmimiiners comt of any county with the requisite population lo provide in [a] contract of employment that deputias, aasistmts, and other employees of the county, its departmenta or ofticers, . , whose compwsatton is payable from funds of any such county. . may receive hospitalization and medical care and treatment in any cmmty or city-cowty operated hospitals located in such county. . [and to] providefor compensation, acctdent, hospital, or disability insurance” for these county employees. Id. 0 2. This &a wmmmtcd that section 2 of the original act, V.T.C.S. art. 2372b. $2. was the only statutoty provision that empowered a commissioners court to setf-insure county employees, instead of pmchasing insmance through an insurance company. Attorney General Opinion MW-473 (1982) at 1; accord homey General Opinions JM-887 (1988) at 2 (citing Attorney General Opinion MW-473 (1982)); JM.406 (1985) at 2 (citing Attomcy General Opinion MW-473 (1982)). In 1987 the legislature nonsubstantively revised the predecessor statute and rewdified it, in part, as section 157.002 of the Local Government Code. See Acts 1987, 70th Leg., ch. 149, g 1. at 939-40. After its revision and recodification, subsection (a) provided in pertinent part as follows: In a county with a population of 500,000 or more, the commissioners court by rule may provide for medical cam and hospitalization and may provide for compensation, accident, hospital, and disability insumnce for the following persons if their salaries are paid fmm the funds of the county. . . : (1) deputies, assistants, and other employees of the county,. , who work under the commissioners court or its appointeeq and (2) deputies and assistants appointed under Subchapter A, Chapter 151, by county and district offtcers. Id. Just like the predecessor statute, section 157.002(a)did not apply to a district otTker. In 1989, however, the legislature amended section 157.002(a)(Z)to read as it does currentty, autboriztng the wmtty to provide medical care, hospitaliaation, and hospital insurance for a district offtwr whom salary is paid from county funds or who is an employee of another governmental entity for which the co~nry is cbligated to provide benefits. See Acts 1989, 71st Leg., ch. 872, 8 2, at, 3863. The phrase “county and dtstrkt offtcem” vas pmposed to be added to subsection (2) on the floor of the house during the bill’s second reading. See H.J. ofTex., 71~ Leg., at 1832 (1989) (wntaining committee amendment no. 1 to C.S.S.B. 936). We found no legislative history indicating the reason for the amendment to subsection (2) of Local Government Code section 157.002(a)or indicating the kind of district otlicer tbat the legislature intended to include within the coverage of section 157.002(a)(2). p. 1790 Honorable Sonya Letson - Page 5 (DM-337) medical coverage for the 47th district attorney, as well as the 47th, 108th, 181st, 251st. and 320th district judges, to supplement the insurance they receive from the state. Significantly, however, section 157,002(a)(2) merely authorizes-it does not require-a county to provide medical insurance to a district officer who receives a salary from the county. Thus, the decision to provide such insurance coverage to district officers is a matter wholly within the discretion of the county commissioners court. CT Run&d Coun@ Comm ‘I-SCourt, 854 S.W.2d at 924 (stating that under Government Code section 46.003(b), which authorizes county to supplement salary of district attorney, decision to make such supplemental payment is wholly discretionary on part of commissioners court) (citing Attorney General Opinion TM-319 (1985)). In answer to your first question, therefore, Potter County is not required to provide medical coverage to district officers although the county provides such coverage to elected county officials and county employees.3 Under the proposal the Potter County Commissioners Court currently is considering, however, the county would not stop providing supplemental medical wverage to all district officers to whom the county pays a supplemental salary, but only to those who take offIce subsequent to the commissioners court’s order. We find nothing in section 157.002 that would prohibit such a practice. C’ Canter v. wheeler County, 200 S.W. 537, 538 (Tex. Civ. App.--Amarillo 1918) (stating that commissioners court, which is statutorily authorized to fix county treasurer’s salary, also is authorized to change county treasurer’s compensation in its discretion). But see Randall County Comm’rs Court, 854 S.W.2d at 924-26 (Poff, J., concurring and dissenting) (applying reason- ableness standard to evaluate commissioners court’s decision to reduce wunty salary of criminal district attorney). You raise no other statutes that might limit the commissioners court’s authority to terminate medical coverage in this way. See Gov’t Code 5 46.003(b). 3You state that you are unawareof any wntract betweenPotter Countyand the district officers that obligates the county to provide the district ofticers medical coverage in additionto the medical insurance the districtofticcrsreceivefrom the state. Youalso informus that the PotterCountyPersonnel HanmmOkstates that the county “provides and pays for group health. for all Ml-time regular employeesand elected officials,”although the handbook cautions that “[t]he policies and wnditio~ herein are subject to change by the county without notice.” Whether the handbook wnstitutes an employmentcontractthat appliesto the district officersis an issueof fact, see Federal Expnss Corp. v. Dutschmonn, 846 S.W.Zd 282, 283 flex. 1993) (citationsomitted);Whitehead v. University of Tex., 854 S.W.M 175, 181 (Tex, App.-San Antonio 1993, no wivrit)(citing W//rite v. HE. Butt Co., 812 S.W.Zd 1, 6 (Tex. App.-&pus Christi 1991, no writ)); White v. H.E. Butt Co., 812 S.W.Zd 1, 6 (Tax. App.- Corpus Chriti 1991, no tit) (citing Beny Y. Lbctor’s Health Facilities, 715 S.W.Zd 60,61 (Tea. App.- Dallas 1986, no tit)), the resolution of which is not subject to the opinion prwess. Ssr, e.g., Attorney General Opinions DM-98 (1992) at 3; H-56 (1973) at 3; M-187 (1968) at 3; O-2911 (1940) at 2. Moreover, this otXa does not construe contracts. Attorney General Opinions DM-192 (1992) at 10, JM- 697 (1987) at 6. p. 1791 Honorable Sonya Letson - Page 6 (DM-337) You suggest the commissioners court might be precluded from providing medical coverage to district offtcers “because it increases the [salary] supplement paid by the County over the statutory limit of salary supplements.” Section 32.188(d), (t) of the Government Code states that Potter County may not pay a district judge a supplemental salary that exceeds S6,OOO annually. “Salary” is what an employee receives as compensation for services the employee has performed. Attorney General Gpiions TM-39 (1983) at 3; M-408 (1969) at 7; see aIs0 Attorney General Opinion M-325 (1968) at 4 (defining “salary” as fixed periodical compensation that employer pays to employee at regular intervals for services rendered in course of employment); BLACK'S LAW DICTIONARY1200 (5th ed. 1979) (defining “salary”). In Attorney General Gpiion M-408 this office considered whether, in the context of article III, section 24 of the Texas Constitotion, the payment from the fist of insurance premiums for a legislator is part of the legislator’s salary. Attorney General Opinion M-408 at 6. The opinion concluded that “salary,” as used in article III, section 24 of the constitution, “must be given its plain and ordinary literal meaning, that is salary compensation, and does not necessarily include every benefit or perquisite arising from the possession of office”; therefore, “salary” did not include the payment of insurance premiums. Id. at 7. We believe that, similarly, “salary” in the context of section 32.188(d) of the Government Code does not include the payment of insurance premiums. You next ask whether the proposed plan to phase out medical coverage for district officers violates the equal protection clause of the Fourteenth Amendment to the United States Constitution. This oflice considered a similar question in Attorney General Opinion N-401 (1985), which addressed language in a rider to the General Appropriations Act that excluded from the entitlement to sick leave faculty members at institutions of higher education with appointments of less than twelve months. Attorney General Opinion JM-401 at I. The opinion considered whether the rider violated article I, section 3 of the Texas Constitution, which guarantees equal rights to all persons, and the Equal Protection Clause in the federal Constitution, Id. at 3-4. The opinion stated as follows: The Texas Constitution guarantees equality of rights to all persons but does not forbid reasonable classifications. A classifi- cation is reasonable if it is based on a real and substantial difference that relates to the subject of the enactment and operates equally on all within the class. Classifications made by the legislature are largely within the discretion of the legislature and will not be stricken down by the courts where there is a real difference to justify the separate treatment undertaken by the legislature. . In reviewing legislation under the equal protection clause of the Fourteenth Amendment, the United States Supreme Court usually has used two primary standards. If a challenged law burdens an inherently “suspect” class of persons or impinges on a “fundamental” p. 1792 Honorable Sonya Letson - Page 7 @M-337) constitutional right, the law will be struck down unless the state demonstrates that the law is justified by a compelling need. If a suspect class or fundamental right is not involved, the law will be upheld unless the challenger can show that the classification bears no rational relationship to a legitimate state purpose or objective. On a few occasions, the court also has utilized an intermediate test which asks whether the challenged law furthers a substantial interest of the state. Id. at 3-4 (citations omitted). The opinion stated that the sick leave policy in question did not appear to affect either a suspect class or a timdamental constitutional right; additionally, the sick leave policy probably would not implicate the intermediate substantial state interests test. Id. at 4. It concluded that a court would apply the rational basis test to determine the constitutionality of the sick leave policy, inquiring whether the legislature has a legitimate purpose and whether the legislators’ belief that the use. of the chahenged classification will promote that purpose is reasonable. Id.;see also Letter Opinion No. 93-48 (1993) at 2-3 (discussing Attorney General Opinion D&401(1985)). A newly hired or elected district officer is not, as such, a member of a protected class. Nor do you indicate that any other suspect class is involved. In addition, the provision of supplemental medical coverage is not a fundamental right. Thus, we believe that a court would apply the rational basis test to determine the constitutionality of Potter County’s proposal to phase out medical coverage for district officers by providing such coverage only to district officers who hold that ofice as of a certain date. Whether the county commissioners court has a legitimate purpose for phasing out medical coverage for district officers as the county proposes to do, and whether the commissioners court’s belief that distinguishing between incumbent officeholders and new officeholders will promote that purpose is reasonable are fact questions that we cannot resolve in the opinion process. See, e.g., Attorney General Opinions DM-98 (1992) at 3; H-56 (1973) at 3; M-187 (1968) at 3; O-291 1 (1940) at 2. Your final question with regard to Potter County’s plan to phase out medical coverage for district officers by providing medical coverage only for district officers who hold office as of a certain date is whether the order of the commissioners wurt adopting the phase-out plan is invalid because it results in a different benefit package being provided to a current district elected officer as opposed to a successfbl challenger to that officer. As we have stated above, section 157.002(a) does not prohibit the commissioners court from adopting the phase-out plan that you have described. You cite no other statutes that would preclude the adoption of such a plan. If the phase-out plan violates the equal protection clause, then the order would be invalid; however, we camtot resolve that issue in the opinion process. p. 1793 Honorable Sonya Letson - Page 8 (DM-337) You also ask about the possibility of terminating the medical coverage for all district officers as of a certain date. Specifically, you ask whether a reduction in medical benefits for existing district o&cers would violate the Americans With Disabilities Act (the “ADA”), 42 U.S.C. ch. 126. You state that some of the district officers have medical conditions that Will make it difficult or impossible to replace the supplemental medical coverage. You suggest that the ADA might prohibit Potter County from terminating a disabled district officer’s supplemental medical coverage. In analyzing the problem you present under the ADA,’ we assume for purposes of this opinion, as you do, that a district officer is an employee of the county. The ADA prohibits an employerr from discriminating against a qualified individual With a disabiity6 because of that individual’s disability in relation to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment. 42 U.S.C. $ 12112(a); 29 C.F.R. 3 1630.4. Thus, an employer may not discriminate on the basis of disability against a qualified individual in regard to compensation or fringe benefits for which the employee is eligible by virtue of the employment relationship. 29 C.F.R. 5 1630.4(c), (0. A nondiscriminatory termination of fringe benefits, such as medical coverage, would not violate the ADA. Whether a particular termination of fringe benefits is nondiscriminatory is, however, a fact-based determination that is beyond the scope of the opinion process. See, e.g., Attorney General Opinions DM-98 at 3; H-56 at 3; M-187 at 3; O-291 1 at 2. ‘We do not addressin this opinion whetherthe county’s proposalmight be impermtsstbleunder my other federallaw. ‘The ADA defines “employer.” with certain esceplions, see 42 U.S.C. # 12111(5)(B);29 C.F.R 5 1630.2(e)(2),as “a personengagedin an industryaffectingcommercewho has 15 or mom employees for each workingday in each of 20 or morecalendarweeksin the currentor precedingcaleadaryear, and any agent of such person, exceptthal, for two years lafter July 26. 1992,)an empleyermeans a PQson engagedin an industrytieettng cemmereewho has 25 or more employeesfor each workingday in each of 20 or more dmdar weeksin the currentor precedingyear, and any agent of such person.” 42 U.S.C. p 12111(5)(A);see also 29 C.F.R 0 1630.2(e)(1). 6A yqualied individualwith a disability”is “an individualwith a disabilitywho, with or without masonableaecemmedation,can perform the csrzntial functions of the empleymentposition that such indikiual holds or desires.” 42 U.S.C. 8 12111(S); 29 C.F.R 8 1630.2(m); see 42 U.S.C. 0 12111(g) (defining “reasonableaccommodation”);29 C.F.R.I 1630.2(g).(0) (defining“disability”and ‘masertable aemmmodution”). p. 1794 Honorable Sonya Letson - Page 9 (DM-337) SUMMARY Section 157.002(a)(2) of the Local Government Code does not prohibit a wunty from phasing out its provision of medical coverage to district officers by covering only those district officers who hold office as of a certain date. Unless a suspect class is involved, such a plan violates the equal protection clause of the Fourteenth Amend- ment to the United States Constitution only if the county commissioners court lacks a leghimate purpose for phasing out medical wverage for district officers in this way and if the commissioners wutt’s belief that distinguishing between incumbent and new office-holders will promote that purpose is unreasonable. Terminating medical wverage under section 157.002(a)(2) for all district officers on a certain date violates the Americans with Disabilities Act, 42 U.S.C. chapter 126, only if the termination dis&minates on the basis of disability against a qualiied individual. DAN MORALES Attorney General of Texas JORGE VEGA Fii Assistant Attorney General SARAH J. SHIRLEY Chair, Opinion Committee Prepared by Kymberly K. Oltrogge Assistant Attorney Genera) p. 1795