TEE .A-~~oRN~EY GENERAL
OF TEXAS
GERALD C. MANN
-ON
Bonorable R. V. Rayford
County Auditor
Rusk County -'
Henderson, Texas
Dear Sir: Opinion No. O-1827
Re: Can the commissioners' court pay
a solicitor to secure members for
the group hospital service provi-
ded for under Article 45gOa?
Your recent request for an opinion of this department
on the above stated question has been received.
We quote from your letter as follows:
"Article 4590a Revised Civil Statutes pro-
vides for Group Bospital Service. Section 3
limits to 15% of all dues and payments the a-
mount that may be paid for adminIsterIng the
affairs of the Service.
'!Canthe Commissioners' Court pay a Solici-
tor to secure Members for the Group Hospital
Service provided for under the above article?"
Sections 1, 2 and 3 of Article 4590a, Vernon's Annotated
Civil Statutes, reads as follows:
"Section 1. That from and after the pass-
age of this Act, any seven (7) or more persons,
a majority of whom are superintendents OS hos-
pitals or physicians or surgeons licensed by
the State Board of Medical Examiners, upon ap-
plication to the Secretary of State of the State
of Texas for a corporate charter may be incor-
porated for the purpose of establishing, main-
taining and operating a nonprofit hospital ser-
vice plan, whereby hospital care may be provided
by said corporation through an established hospi-
tal or hospitals, and sanitariums with which it
has contracted for such care, as is hereinafter
defined."
Honorable R, V. Rayford, page 2 o-1827
"Sec. 2. That such corporations when or-
ganized shall be authorized to accept applicants,
who may become members of said corporations fur-
nishing group hospital service under a contract,
which shall entitle each member to such hospi-
tal care for such period of time as is provided
therein; and that such corporations shall be
governed by this Act and shall not be construed
as being engaged in the business of insurance
under the laws of this State. That such corpora-
tions organized and operated under the provisions
of this Act shall not be required by any depart-
ment of this State to post bond, or place de-
posits with any department of this-state to be-
gin and/or operate under this Act and the pro-
visions of Title 78 of the Revised Civil Statutes
of Texas of 1925, are hereby declared inapplica-
ble to corporations organized and/or operated
under this Act."
"Sec. 3. That said corporations shall be
governed and conducted as nonprofit organiza-
tions for the sole purpose of offering and fur-
nishing hospital service to its members in con-
sideration of the payment by such members of a
definite sum for the hospital care so contracted
to be furnished. The necessaryexpenses of aa-
ministering the affairs of said corporations
may be paid from the dues or payments collected.
Provided not more than fifteen per cent (15%)
of all cluesor payments received may be used for
expenses of administering the affairs of said
corporation, subject to the authorization or
approval of the Board of Insurance Cownissioners
of Texas."
Article 4478, Vernon's Annotated Civil Statutes, reads
as follows:
"The commissioners court of any county
shall have power to establish a county hospi-
tal and to enlarge any existing hospitals for
the care and treatment of persons suffering
from any illness, disease or injury, subject
to the provisions of this chapter. At inter-
vals of not less than twelve months, ten per
cent of the qualified property tax paying voters
of a county may petition such court to provide
for the establishing or enlarging of a county
hospital, in which event said court within the
time designated in such petition shall submit
Honorable R. V. Ragford, page 3 0 -1827
to such voters at a special or regular election
the proposition of issuing bonds in such aggre-
gate amount as may be designated in said petition
for the establishing or enlarging of such hospi-
tal. Whenever any such proposition shall re-
ceive a majority of the votes of the qualified
property tax payers voting at such election,
said commissioners court shall establish and
maintain such hospital and shall have the fol-
lowing powers:
"1 * To purchase and lease real property
therefor, or acquire such real property, and
easements therein, by condemnation proceedings.
"2 . To purchase or erect all necessary build-
m3s, make all necessary improvements and re-
pairs and alter any existing building, for the
use of said hospital. The plans for such erec-
tion, alteration, or repair shall first be ap-
proved by the State Health Officer, if his ap-
proval is requested by the said commissioners
court.
“3. To cause to be assessed, levied and
collected, such taxes upon the real and person-
al property owned in the county as it shall deem
necessary to provide the funds for the mainten-
ance thereof, and for all other necessary expend-
itures therefor.
“4. To issue county bonds to provide funds
for the establishing, enlarging ana equipping
of said hospital and for all other necessary
permanent improvements in connection therewith;
to do all other things that may be required by
law in order to render said bonds valid.
“5 D To appoint a board of managers for said
hospital.
“6e To accept and hold in trust for the
county, any grant or devise of land, or any gift
or bequest of money or other personal property
or any donation to be applied, principal or in-
come or both, for the benefit of said hospital, and
apply the same in accordance with the terms of the
gift."
Also see Articles 4479, 4480, and other a??tiCleS Set
Honorable R. V. Rayford, page 4 o-1827
out in Chapter 5 under Title 71 of Vernon's Annotated civil
Statutes, pertaining to the board of managers, powers of such
board, records, superintendents, admission of patients, sup-
port of patients, etc., regarding county hospitals, wherein
the county commissioners' court has certain duties and au-
thorities as given by the above-mentioned statutes.
The statutes mentioned under Title 71, Chapter 5, of
Vernon's Annotated Civil Statutes, are called to your atten-
tion for the purpose of showing the Legislature had treated
the subject of erecting, establishing, operating and maintain-
ing such hospitals with considerable detail.
The commissioners' court is given the authority to ac-
quire real property for such purpose; to erect all necessary
buildings, and to levy and collect taxes for the maintenance
thereof.
The commissioners' court is a creature of the State
Constitution and its powers are limited and controlled by the
Constitution and the laws as passed by the Legislature. See
Article 5, Section 18, of the Constitution of Texas; Baldwin v.
Travis County, 88 S.W. 480; Seward v. Falls County, 246 S.W.
728; CommissionerslCourt v. Wallace, 15 S.W. (2) 535.
Article 459Oa does not give any new or additional power
or authority to the Commissioners' Court regarding county hos-
pitals.
In opinion No. O-926, written by Honorable Wm. J.R, King,
Assistant Attorney General, directed to Honorable A. E. Hicker-
son, County Auditor, Montgomery County, Conroe, Texas, this
department held that:
"It is the opinion of this department that
the Montgomery County Hospital Board of Managers
does not have authority to sell policies of in-
surance for hospital service under a membership
plan as a means of financing the county hospital."
In view of the foregoing authorities you are respectful-
ly advised that it IS the opinion of this department that the
county commissioners' court has no authority to employ and pay
a solicitor to secure members for group hospital service as
provided for under Article 459Oa, supra.
Trusting that the foregoing fully answers your inquiry,
we remain
.- .
Honorable R. V. Rayford, page 5 o-1827
Yours very truly
ATTORNEY GENERAL OF TEXAS
By s/Ardell Williams
Ardell~Williams
Assistant
AW:Ul:wc
s/GERALD C. MANN
Approved Opinion Committee By s/BWB Chairman