Honorable John Henry Tatum Opinion No. M-752
County Attorney
Angelina County Re: Authority of Commissioners
P. 0. Box 582 Court to order proceeds from
Lufkin, Texas 75901 the sale of hospital bonds to
be deposited with County
Treasurer pending construction
Dear Mr. Tatum: of hospital improvements.
You have requested our opinion as to proper custodian of the pro-
ceeds received from the sale of Angelina County Hospital bonds pending
construction of hospital improvements. Specifically you have asked if it
was proper for the Commissioners Court to place these proceeds in the
hands of the hospital’s Administrator or whether these funds should have
been turned over to the County Treasurer for deposit.
Article 4478, Vernon’s Civil Statutes, provides as follows:
“The Commissioners Court of any county shall
have power to establish a county hospital and to enlarge
any existing hospitals for the care and treatment of per-
sons suffering from any illness, disease or injury, sub-
ject to the provisions of this chapter . . . Where any
such proposition shall receive a majority of the votes of
the qualified property taxpayers voting at such election,
said Commissioners Court shall establish and maintain
such hospital and shall have the following powers:
“1. . .
“2. To purchase or erect all necessary buildings,
make all necessary improvements and repairs and alter
any existing buildings, for the use of said hospital . .
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Honorable John’Henry Tatum, page 2 (M-752)
“3. . .
“4. To issue county bonds to provide funds -for
the establishing, enlarging and equipping of said hos-
pital and for all other necessary permanent improve-
ments in connection therewith: . . .
“5. To appoint a board of managers for said
hospital.” (Emphasis added. )
Article 4479, Vernon’s Civil Statutes, provides, in part, as
follows:
“When the Commissioners Court shall have ac-
quired site for such hospital and shall have awarded con-
tracts for the necessary buildings and improvements
thereon, it shall appoint six (6) resident property tax-
paying citizens of the county who shall constitute a board
of managers of said hospital . . . The managers shall be
allowed their actual and necessary traveling and other ex-
penses within this state to be audited and paid by the Com-
missioners Court in the same manner as other expenses
of the hospital . . ” (Emphasis added. )
Article 4480, Vernon’s Civil Statutes, further states:
“The board of managers shall elect from among
its members a president, and one or more vice-presidents
and a secretary and a treasurer. It shall appoint a superin-
tendent of the hospital who shall hdld office at the pleasure
of said board . . . Said board shall fix the salaries of the
superintendent and all other officers and employees within
the limits of the appropriation made therefor by the Com-
missioners Court . . . The board shall have the general
management and control of the said hospital, grounds, build-
ings, officers and employees thereof; . . ” (Emphasis added. )
Article 4484, Vernon’s Civil Statutes, states in part, as follows:
‘1. . . The board shall certify all bills and accounts,
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Honorable John Henry Tatum, page 3 (M-752)
including salaries and wages, and transmit them
to the Commissioners’ Court, who shall provide
for their payment in the same manner as other
charges against the county are paid.
“The board of managers shall make to the
commissioners court . . . a detailed report of the
operation of the hospital . . . and shall furnish full
and detailed estimates of the appropriations required
during the ensuing year for all purposes, including
maintenance, the erection of buildings, repairs, re-
newals, extensions, improvements, betterments or
other necessary purposes. ” (Emphasis added. )
With regard to authority and responsibilities of a Superintendent
of any such hospital, we refer you to Article 4485, Vernon’s Civil Statutes,
which reads, in part, as follows:
“The Superintendent shall be the chief execu-
tive officer of the hospital, but shall at all times be
subject to the by-laws, rules and regulations thereof,
and to the powers of the board of managers.
“He shall, with the consent of the board of
managers, equip the hospital with all necessary fur-
niture, appliances, fixtures and all other needed
facilities for the care and treatment of patients, and
for the use of officers and employees thereof, and
shall purchase all,*ecessary supplies, not exceeding
the amount provided for such purposes by the com-
missioners court.
1’. . .
“He shall cause proper accounts and records of
the business and operations of the hospital to be kept
regularly from day to day in books and on records pro-
vided for that purpose; and shall see that such accounts
and records are correctly made up for the annual report
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Honorable John Henry Tatum, page 4 (M-752)
as required by this law, and present the same
to the board of managers who shall incorporate
them in their report to the commissioners court.
‘. . .
“He shall collect and receive all moneys
due the hospital, keep an accurate account of the
same, report the same at the monthly meeting of
the board of managers, and transmit the same to
the county collector within ten days after such
meeting. ” (Emphasis added. )
In prior opinions of this office it has been held that the “county
collector” as referred to in Article 4485, V. A. T. S. is the “county treasurer”
and proper custodian of county funds. Attorney General Opinions O-6433
(1945), V-1100 (1950) and V-1265 (1951); Article 1709, V. C. S.
There is no provision in the law which authorizes the Board of
Managers or the Superintendent to be the custodian of any funds received
or to be received for and on behalf of a county hospital. The only reference
made to any such limited authority deals with the temporary receipt, by the
hospital Superintendent, of monies generated by the operation of said hos-
pital, and which must be accounted for monthly to the Board of Managers
of said Hospital and deposited ten days thereafter with the County Treasurer.
It should be clear from a reading of the statutes involved that all
funds, be they proceeds from the sale of hospital bonds, monies generated
by the operation of said hospital, or funds of any other nature or source,
should be deposited with the County Treasurer.
Although the management of the county hospital is vested in the
Board of Managers and hospital Superintendent, the Commissioners Court
must approve all expenditures on behalf of said hospital prior to their
actual payment by the County Treasurer. There would be no need for any
funds to be deposited with the Superintendent or the Board of Managers,
for they have no authority to make any cash expenditures. Attorney
General’s Opinion V-510 (1948. )
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Honorable John Henry Tatum, page 5 (M-752)
SUMMARY
The Commissioners Court should order the
proceeds realized from the sale of county hospital
bonds deposited with the county treasurer pending
completion of proposed construction or improvements
to county hospital.
0
Yoursvery truly,
era1 of Texas
Prepared by Robert B. Davis
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Co-Chairman
Phil Warner
Tom Fortescue
Max Hamilton
Ivan Williams
Meade F. Griffin
Staff Legal Assistant
Alfred Walker
Executive Assistant
Nola White
First Assistant
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