R-684 

August 25, 1947 

Hon. George H. Sheppard 

State Comptroller 

Capitol Station 

Austin, Texas 

Opinion No. V-357 

Re: Authority or the 

Crippled Children’s 

Division 0r the 

State Department or 

Health to pay for 

services rendered 

crippled children 

in accord~ance with 

S. B. 360, 50th Leg. 

Dear Sir: 

We refer to your letter or recent ~date in 

which you enclosed a letter from Dr. Geo. W. Cox, State 

Health Orficer, which reads as follows: 

"Senate Bill No. 360, Regular Session, 

Fiftieth Legislature, provides in Section 1 

thereof, ‘The State Comptroller of Publio 

Accounts is hereby authorized to draw proper warrants in favor of either the University of Texas School of Medicine, the John 

Sealy Hospital, or the State Hospital for 

crippled and deformed children at Galveston 

based on vouchers or claims submitted by 

said institutions covering reasonable fees 

and charges for hospitalization and proressional services rend,ered by members of the 

staffs of said institutions in the care, 

diagnosis, and treatment of arippled children under the provisions of Chapter 216, 

Acts, Regular Session, Forth-ninth Legislature, and in the hospitalization, care and 

treatment of patients forwarded to said institutions from the State Eleemosynary Institutions uqder the direction of the State 

Board of bontrol, and the State Treasurer is 

hereby authorized and directed to pay warrants so issued against any available funds 

appropriated, granted, or donated to the 

Crippled Children’s Division of the State 

Department of Health or the State Department of Health for the purpose of defraying 
Hon. George H. Sheppard - Page 2 (V-357) 

the expenses of treatment of crippled children under said Act and out of available 

funds appropriated to the State Board of 

Control for the hospitalization, care and 

treatment of patients in and from the State 

Eleemosynnry Institutions under the directions of said State Board of Control. Such 

payments made to said institutions shall be 

credited and deposited to the local institutional funds of said institution receiving 

such payments.' 

~'*I. shall appreciate your advising if 

the Lrippled Children's Division of the 

State Department of Health may proceed in 

paying the John Sealy Hospital and the physicians and surgeons who are employed by the-:*' 

University of Texas School of Medicine in the 

manner prescribed for in this statute." 

We also quote from a subsequent,letter which 

you received from the State Health Officer, relating to 

the same matter, as follows: 

"In answer to your letter of July 25, 

1947, concerning House Bill No. 712, I herewith quote information supplied by the Business Manager of the University of Texas Medical Branch concerning the disposition of 

funds received in payment for professional 

services of staff members of the John Sealy 

Hospital and hospitalization of crippled 

children in the John Scaly or affiliated 

hospitals: 

I, , 0 s . all monies received by the University of Texas Medical Branch in payment 

of fees for professional services of members 

of its staff will be deposited in a General 

Fund bank account. Expenditures from the 

General Fund are made upon authority of the 

Board of Regents and disbursements will not 

be made to members of the staff for professional fees earned for the General Fund.' 

"'In regard to question number two, 

this will advise you that all revenues received by the University of Texas for services of the University of Texas and its 

employees are likewise deposited in the 

General Fund of the University and are expended upon authority of the board of Re- 
Hon. George H. Sheppard - Page 3 (V-357) 

gents. The University does not act as a 

collection agency for members of the staff 

nor make payment to employees other than 

on a strictly salary basis .I’* 

Senate Bill No. 360 was never passed, but H.B. 

712 was passed by the 50th Legislature and signed by the 

Governor on May 23, 1947, and is an exact duplication of 

Senate Bill 360. Therefore, our remarks will be confined to the House Bill instead of the Senate Bill. 

In view of the plain, clear, and unambiguous 

language in the above Bill, it is the opinion of thi.s 

Department that the Crippled Children’s Division of the 

State Department of Health may proceed in paying the 

John Sealy Hospital and the University of Texas School 

of Medicine in the manner prescribed in the statute. 

Since the Business Manager of the University 

of Texas School of Medicine has written to the effect 

that all of such fees will be deposited in the General 

Fund and that none of said funds will be paid to the 

members of the staff, we shall pretermit a discussion 

of that phase of your question relative to paying the 

physicians and surgeons who are employed by the University of Texas School of Medicine. However, in passing, 

we wish to state that in our opini~on it comes within the 

purview of Opinion NO. O-4433, a copy of which is enclosed. 

SUMURY 

The Crippled Children’s Division of the 

State Department of Health may proceed in 

paying the John Sealy Hospital and the University of Texas School of Medicine for services 

rendered crippled child~ren in the manner prescribed in H. B. 712 of the 50th Leg., R. S., 

1947. 

Very truly yours 

APPROVED : ATTORNEY GENERAL OF TEXAS 

BA:djm: jrb 

BY 

Assistant