Untitled Texas Attorney General Opinion

The Honorable Melvin Rowland Opinion No. H-835 Chairman Texas Health Facilities Re: Whether a Veterans Commission Adminfstration Hospital 314 Highland Mall Blvd. is required,to obtain a Austin, Texas 70752 certificate of need or exemption certificate from the.Texas Health Facilities Cemmispion.. Dear Mr. Rowland: You have requested our opinion regarding whether the Veterans Administration must obtain a certificate of need or an exemption certificate from the Texas Health Facilities Commission, pursuant to article 4418h, V.T.C.S., before it may construct a hospi.tal. Article 4418h provides, in section 3.01: Each person must obtain from the commission a certificate of need or an exemption certificate in accordance with this Act for a proposed project to: (1) substantially expand a service currently offered or provide a service not currently offered by the facility; (2) construct a new facility or change the bed capacity of an existing facilityt (3) modify an existing facility: (4) convert a structure into a health-care facility: or (5) organize an HMO which requires a new or modified facility. (Emphasis added). p. 3522 . - The Honorable Melvin Rowland - page 2 (H-835) "Person" is defined in section 1.03(14) as an individual, sole proprietorship, charity, trust, estate, institution, group, association, firm, joint venture, partnership, joint stock company, cooperative, corporation, the state or a political subdivision or instrumentality sentative or any &her legal entity. (Emphasis added). The Veterans~Administration is without question an "instrumentality of the federal government." It is clear, however, that [t]he United States may perform its functions without conforming to the police regulations of a state. Arizona L Calif- ornia, 283 U.S. 423, 451 (1931). One of the "functions" of the Veterans Administration is to "provide hospitals." 39 U.S.C. s 5001. In Arizona v. California, the United States Supreme Court hem,?f Congress had the power to authorize the construction of Boulder Dam, the Secretary of the Interior had no obligation to submit the plans and specifications to the state engineer for approval, as required by state law. su ra at 151-52. See also Leslie Miller, Inc. v. State Akansas 352 U~~(~Innn~r~s,. v. slk Contra; Commission of Penns ec ark that y lvania, 318 U.S. 261 (19431, theSupreme Court d 1 in the absence of Congressional consent, there is an implied constitutional immunity of the national government from state taxation, and from state regulation of the performance, by federal officers and agencies, of governmental functions. -Id. at 269. p. 3523 . . The Honorable Melvin Rowland - page 3 (H-835) A federal statute relating to the Veterans Administra- tion could be construed to provide such consent. The statute provides: The Administrator, on behalf of the United States, may relinquish to the 'State in ;, which any lands or interests therein under his supervision or control are situated, such measure of legislative jurisdiction over such lands or interests as is neces- sary to establish concurrent jurisdiction between the Federal Government and the State concerned. Such partial relinquish- ment of legislative jurisdiction shall be initiated by filing a notice thereof with the Governor of the State concerned, or in such other manner as may be prescribed by the laws of such State, and shall take effect upon acceptance by such State. 38 U.S.C. s 5007. We have been advised by the Office of the Governor, however, that the Administrator of the Veterans Administration has not filed any such notice to relinquish legislative jurisdiction. As a result, we must conclude that the State of Texas is without authority to require the Veterans Administration to obtain a certificate of need or an exemption certificate from the Texas Health Facilities Commission before it may construct a hospital. SUMMARY The State of Texas is without authority to require the Veterans Administration to obtain a certificate of need or an exemption certificate from the Texas Health Facilities Commission before it may construct a hospital. Attorney General of Texas p. 3524 The Honorable Melvin Rowland - page 4 (H-835) APPROVED: Opinion Committee jwb p. 3525