Honorable John Lawhon Opinion No. M-762
District and County Attorney
Denton County Courthouse Re: Does Article 4494i-1,
Denton, Texas 76201 V.C.S., authorize a
county-city hospital
board to borrow money?
Dear Mr. Lawhon:
Rephrased, your question is as follows:
We would like to know if the broad powers
given to a joint county-city hospital board under
Article 4494i-1, V.C.S., include the power to
borrow money.
Our answer is “no”, this Article does not allow the
board to borrow money, except by revenue bonds.
We note, however, that even though the board is called
a “body politic”, its financial powers are limited in that it
has neither the power to tax (Section 1)” nor to
11. . . encumber, sell, lease or convey any
real or personal property unless . . . approved
prior to the final consummation thereof by reso-
lutions of the commissioners court of said county
and the governing body of said city, respectively.”
(Section 5).
Article 4494i-1 provides two major means of financing
the hospital. The first is stated in Section 6, which reads,
in part; as follows:
*All references to Sections are to Sections of th ,is Artic ,le
4494i-1, V.C.S.
-3723-
Hon. John Lawhon, page 2 (M-762)
“Sec. 6. For the purpose of carrying out
any power, duty, or function authorized by this
Act, said Hospital Board shall be authorized to
issue its revenue bonds to be payable from, and
secured by a pledge of, all or any part of the
revenues, income, or resources of the Hospital
Board and the hospital facilities of said Board.”
This section further states that the Board has no taxing power
and that the bonds shall contain such statement.
The second major source of funds is provided for in
Section 9, which reads, in part, as follows:
I, .
. . it shall be the duty of said Board
to establish and collect sufficient charges for
services and facilities, and to utilize all other
available sources of revenues and income, in order
to pay all expenses . . .” (Underscoring added.)
The funds to be derived pursuant to the underscored wording
11. . . all other available sources of revenues and income . . .”
are limited to those funds acquired as a result of money received
from the state or federal governments as set out and authorized
in Section 5.
Since the Legislature has been specific in listing the
modes of financing the overall operation of the hospital, i.e.,
revenue bonds, charges for services and facilities, and state
and federal funds, all other means of financing are excluded. The
statutory construction maxim of expressio unius is controlling
here. 53 Tex.Jur.Zd 206-207, Statutes §142.
The Board’s right to create a debt, even through
revenue bonds, is subject to the approval of both the commis-
sioners court and the governing body of the city. Section 8.
Since Article 4494i-1 does not authorize the govern-
mental unit to borrow money, either expressly or impliedly,
that power must be held not to exist. Tarrant County v.
Rattikin Title Co., 199 S.W.Zd 269, 273 (Tex.Civ.App. 1947,
no writ). Every reasonable doubt as to the existence of such
a power in the circumstances is resolved against its existence.
82 C.J.S. 917, Statutes 3387.
It is suggested that in considering such legislative
enactments due regard must be given also to any constitutional
limitations prohibiting the creation of debt. Article I, Section
49, Constitution of Texas.
-3724-
. -
Hon. John Lawhon, page 3 (M-762)
We hold that the Board of a hospital created pursuant
to Article 4494i-1 is not authorized to borrow money to finance
its operation, except by revenue bonds, as authorized in that
Article.
SUMMARY
A joint county-city hospital board created
in accordance with Article 4494i-1, V.C.S., is
not authorized to borrow money to finance its
operation, except by revenue bonds, as authorized
in that Article.
n
Prepared by Melvin E. Corley
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Co-Chairman
Tom Fortescue
Pat Bailey
Jerry Roberts
James Mabry
MEADE F. GRIFFIN
Staff Legal Assistant
ALFRED WALKER
Executive Assistant
NOLA WHITE
First Assistant
-3725-