Untitled Texas Attorney General Opinion

i The Attorney General of Texas JIM MAlTOX Dexmber 23, 1985 Attorney General SupremeCourt Building Honorable Randall L. Sherrod Opinion No. JM-,406 P. 0. BOX 12548 Criminal District Attorney Austin, TX. 78711. 2548 Randall County Courthouse Re: Whether a county may join 51214752501 Canyon, Texas 79015 with other governmental entities Telex 9101874.1367 Telecopier 512f475-0286 in a pool for the operating of a self-funding health plan 714 Jackson, Suite 700 Dear Mr. Sherrod: Dallas, TX. 7520245M 2141742.S944 You inform us that the majority of the Randall County Commis- sioners Court and ,somemembers of the governing body of the city of 4824 Alberta Ave., Suite 160 Amarillo are interested in forming a self-funded health plan pool, El Paso, TX. 799052793 consisting of Anarillo and Randall County employees and their 9151533-34&( dependents, to provide health, medical, and hospital insurance to all members of this cLass and their dependents. You also inform us that 1001 Texas, Suite 700 the governing bodies of other entities such as nearby Potter County Houston, TX. 77002-3111 may also become interested in contracting with the other members of 71312235888 such a pool under the Interlocal Cooperation Act. The pool would be formed by contract among parties. 806 Broadway, Suite 312 Lubbock, TX. 794013479 In that regard, you ask: SCW747-5238 Does ,the Randall County Commissioners Court have the power to join the city of Amarillo or any 4309 N. Tenth. Suite S McAllen, TX. 78501.1885 other nr:srby state governmental entity in forming 512lSS2.4547 a pool f'ora self-funding health and hospitalira- tion p:.e!n in the nature of self-insurance, receiving voluntary premiums from employees and 200 Main Plaza, Suite 400 elected officials of those entities to cover San Antonio, TX. 782052797 512f2284191 themselves and their dependents? A county commissioners court has only the powers conferred either An Equal Oppatunityl expressly or by necessary implication by the constitution and statutes Affirmative Action Employer of this state. See:Tex. Const. art. V, 918; Canales v. Laughlin, 214 S.W.Zd 451, 453 TKk. 1948). The limited authority granted to local political subdivisions under article 3.51-2 of the Insurance Code does not encompass y0c.r particular arrangement; such authority must be found elsewhere. Id. This office has held on numerous occasions that the Interlocal CofyGation Act, article 4413(32c), in sections 4(a) and 4(b), V.T.C.S., authorizes a county to contract with other counties or local political subdivisions for the performance of p. 1859 Honorable Randall L. Sherrod - Page 2 (J&4,06) , as defined in section 3(Z), which governmental services and :iunctions all parties to the contra:t are legally authorized to perform. See Attorney General Opinions NW-347 (1981); E-392 (1974); E-28 (197x ~-1278 (1972). Therefore, the Interlocal Cooperation Act authorizes Randall County to contract with other local entities only if there is independent statutory or :onstitutional authority for the county to provide a self-funded insurance plan for its department heads, employees, and their dependents. In Attorney General Opinion MW-473 (1982). this office further held: There is statutory authority for a comissioners court to adopt an insurance plan to provide hospitalization ::nsurancefor county officials and employees. V.l'.C.S. art. 2372h-2. Further authority is allw found in the Texas Insurance Code in articles 3.51 and 3.51-2. However, these statutes do not authorize the implementation of a plan to provide wlf-insurance or to provide group insurance that rculd be in contravention of the Texas Insurance Code. Id. at 1658. Article 2372h, section 2, V.T.C.S., suthorizes a colnmissionerscourt of a county having a population of 500,000 or more to adopt rules and regulat,ionsto establish a hospital and insurance fund for county employees 11sa part of their employment contract. You inform us that Randall County currently has a population of approximately 76,000 inhab:.t:ants.Since there is a particular statute authorizing a plan by certain counties, but no statute regarding Randall County, we conclude that there is no authority for Randall County to join a self-fund:.nghealth plan for its employees. Article 3.51-2 of tha Insurance Code authorizes any county or political subdivision of s county to procure certain group insurance policies covering officers, employees, and their dependents. However, the provision does not pruvide for the self-funded health plan you describe in this request. Article 3.51-2, part (a) of the Insurance Code only authorizes the county to "procure contracts" or purchase insurance from an insurwce company as opposed to specifically alloving the entities to rielf-fund a health insurance plan as the legislature has provided :.n another statute amended during the same session. See Ins. Code art. 3.50-3, 14(d) (governing boards of colleges an~niversities 'nay provide self-funded insurance plans for employees). We can find no other independent statutory basis authorizing the Randall County Commissione:rsCourt to provide a self-funded insurance plan for its employees, deIla.rtment heads, and their dependents. It is p. 1860 Eonorable Randall L. SherrDd - Page 3 ,(~&486.) our opinion that the county may not contract with the entities described above under the Interlocal Cooperation Act. SUMMARY The Randall County Commissioners Court is not authorized to contract with nearby state govern- mental entities to form a pool for a self-funding health and hospit.slisationplan for its employees, department heads, and their dependents. JIM MATTOX Attorney General of Texas JACK HIGHTOWKR First Assistant Attorney General MARY KELLER Executive Assistant Attorney General ROBERT GRAY Special Assistant Attorney 'General RICK GILPIN Chairman, Opinion Committee Prepared by Tony Guillory Assistant Attorney General p. 1861