-I -

THE

Honorable Den D. County Attorney Comanche County Comanche, Tsxas ATTORNEY GENERAL
OF TEXAS

AUSTIN sz.T~xas

b%u-ch 9, 1961

Sudderth Opinion. No. W-1011
Re:: Whethera hospital distr%ct.,

authorized by Section 8 of Article IX of the Texas Constitution, and Art~lcle

4&&q-3 of Vernon.'sCivil Statutes, has the authority to tax property for the operation and maintenance of hospiDear Mr. Sudderth:: tal f~aclIlties therein.
YOOUSoptitninn:

request;,

after reference to.Sect.ion 8 of Article IX of'the Texas Constitutionand Article 4&3&q-3 of Vernon's Cfvi'l

Statutes, states as follows: ,I The questlon~ now,arises as to whether or not'urrder~

the pravleion:

of such constitutional amendment;

and the enabling legislationpassed in connection therewfth,a hospftal district createdunder the terms there~of within the confinest of PrecinctNo..4, Comanche County, Taxas haa the authorLty to tax property therein.and use such tax money for the purpose of the ope;ationand maintenance of such hospital.

. . .,. . Section 8 of Article IX of the Texas Constitutionprovldes, in part, that:

"TheLegis-lature,

may by law auttiorfze the creation of a~Hospital Diatrlct to be co-extensive with the llmlts of County CommissionersPrecinct No. 4 of Comanche County, Texas. "If such District is created, it may be authorized to levy a tax not to exceed seventyfive cent~s(756;)

on-the One hundred Dollar ($100)valuation of taxablepropertywithin the District;provided, however, no tax may be levied- c

Honorable Den D. Sudderth, Page 2 (WW-1011)

until approved by a majorityvote of the participating resident qualifiedproperty taxpaying voters who have duly rendered their property for taxation. The maximum rate of tax may be changed at subsequentelections so long as obligationsare not impaired,and not to exceed the maximum limit of sevent -five cents (754) per One Hundred Dollar ($100 7 valuation, and no election shallbe required by subsequent changes in the boundaries of the Commissioners PrecinctNo. 4 of Comanche County.
"If such tax is authorized,no political subdivisionor municipalitywithin or having the same boundaries as the District may levy a tax for medical or hospital care for needy individuals,nor shall they maintain or erect hospital facilities,but the District shallby resolutionassume all such responsibilities and shall assume all of the liabilitiesand obligations (Includingbonds and warrants) of such subdivisionsor munlclpalities or both. The maximum tax rate submitted shallbe sufflcient to discharge such obligations, liabilities, and responsibilities,and to maintain and operate the hospital system,and the Legislature may authorize the District to issue tax bonds for the purpose of the purchase, construction,acquisition, repair or renovation of improvementsand initially equipping the same, and such bonds shall be payable from said seventy-five cent (75q?) tax. The Legislature shallprovide for transfer of title to properties to the District.

. . .'
From this Section of the Constitutionthe Legislature may by statuteprovide for the creation of a hospital dlstrict co-extensivewith the limits of County Commlssioners Precinct No. 4 of Comanche County,and furtherprovide that the district may levy a tax, not to exceed the limit therein prescribed, on taxablepropertywithin the district. There Is also constitutionallyprovided the authority for the hospital district to assume the llabilltlesand obligations of existing hospital facilitiespresently operatedby the county or citywithin the geographical limits of County CommissionersPrecinctNo. 4.
Once the district assumes these liabilitiesand obligations the Constitutionauthorizes a tax rate sufficienttoHonorable Hsn D. Sudderth, Page 3 @W-1011)

discharge such obligations, etc., and to maintain and ~operatethe hospital system. The Legislaturemay authorize the district to Issue tax bonds for the purpose of the purchase, construction, acquisition, repair or renovation of improvementsand initially equipping the same, such bonds to be payable from the above mentioned tax. Section 1 of Article 449&q-3 of Vernon's Civil Statutes provides that a districtmay be createdwith the "powerto issue bonds for the solepurpose of purchasing a site for and the constructionand initial equipping of a hospital system, and further the power to levy a tax of not to exceed seventy-five cents (75#)on the One Hundred Dollar ($100) property valuation therein for the purpose of paying the principal and interest on such bonds."
The remaining Sections of Article 44$&q-3 do not provide any authorization to the district to levy taxes. There is constitutionalauthority for the Legislature to enact the necessary statutes permitting a hospital district to levy a tax for the maintenance and operation of a hospital,however, by Article 4@4q-3, Vernon's Civil Statutes, the Legislature has authorized the district to levy no other tax than for the purpose ofpaying the principal and interest on bonds which may be Issued for the solepurpose above mentioned. Therefore, In answer to your inquiry, a hospital district createdunder Section 8 of Article IX of the Constitution would have no authority under existing statutes to tax property for the operationand maintenance of hospital facilities.
SUMMARY
A hospital district, authorized by Section 8 of Article IX of the Texas Constitutionand Article 4494q-3 of Vernon's Civil Statutes,has no statutory authority to tax propertywithin the district for the purpose of the operation and maintenance of hospital facilities.
Yours very truly,
WILL WILSON Attorney General of Te_xas

WHPjr:mm William H. Pool, Jr. AssistantHonorable Ben D. Sudderth, Page 4 (WW-1011)

APPROVED:
OPINION COMMITTEE W. V. Geppert, Chairman
Leon F. Pesek W. Ray Scruggs Bob Eric Shannon Marietta Payne
REVIEWEXI

FOR THE ATTORNEY GENERAL
BY: Morgan Nesbitt