- c 

THEA'FI'ORNEY GENERAL 

Mr. Moore Lynn 

County Auditor 

Dallas County 

Records Wilding 

Dallas, Texas 

Dear Mr. Lynn: 

July 20, 1960 

Opinion No. WW-886 

Re: Does Senate Bill 178, Acts 

56th Legislature, Regular Session,1959,require 

that the Dallas County Hospital District be included in 

the annual independent audit 

along with the records and 

books of Dallas County and 

related questions. 

Your letter of recent date requests the opinion of 

this office on two questions: 

"1 . Does Senate Bill 178, 56th Legislature, Regular Session, require that the 

Dallas County Hospital District be included 

in the annual independent audit along with 

the records and books of Dallas County?" 

Under date of January 15, 1960, an agreement was 

made between the County of Dallas, Texas, and Haskins 

& Sells, Certified Public Accountants, to makea general 

audit of the financial records and accounts of Dallas 

County. 

"2. Is an audit of the Hospital Dlstrlct covered by the contract between Dallas County and Haskins & Sells?" 

Section 1 of Senate Bill 178, Acts of the 56th Le islature, Regular Session 1959, (codified as Article 16 l-d, 

I 

& 

Vernon's Civil Statutes provides as follows: 

"In every county In the State of Texas 

having a population of 350,000 Inhabitants 

or more, according to the last preceding 

Federal Census, an annual independent audit 
. . - 

Mr. Moore Lynn, Page 2 (W~886) 

shall be made of all books, records, and 

accounts of the district, county and precinct officers, agents or employees, lneluding regular auditors of the counties 

and all governmental units of the county 

h~~nF~~~n~~l~"~~~t~~~t~~~~~~~~ng 

to the fiscal affairs of the county." 

(Emphasis ours) 

Attorney General's Opinion ~~-763 held that the 

word "county", as used In the preceding Article, must 

be treated as referring to 'county government." 

This opinion states: 

The word 'county' is used repeatediy'and consistently in the act In 

such a way as to mean the political unit 

of government rather than the geographical 

area. If otherwise construed the act 

would require an audit of every lnstltution, public and private, In the county 

area. . . .” 

"It seems clear to us, however, that 

the Legislature actually Intended for the 

Act to apply only to county government 

and the various units, institutions and 

agencies thereof. . . .'I (Rnphasls ours) 

"Further, Sections 3 and 4 of the 

Act are JxXWEisLVe in this respect since 

they provide for the employment of the 

auditor by the County Commissioners Court 

and further provide for the auditor to be 

paid out of the general fund of the county. 

It is unlikely that the Legislature would 

give the duty of employing the auditor to 

the Commissioners Court if the audit were 

Intended to be directed at other units of 

Moreover it is especially 

the Legislature would require 

the expenditure of county funds for the 

audit of some other unit of government which 

has Its own tax moneys, and which would receive the benefit of such audit." (Emphasis 

ours) 
I .- 

Mr. Moore Lynn, Page 3 (WW-886) 

In view of this, the answer to your question hinges 

upon whether or not a county hospital district Is a unit 

of the County or a governmental unit of the county 

hospitals. 

The Commissioners Court of any county shall have the 

power to establish a county hospital and to tax the property in the county to provide for the maintenance thereof. Article 4478, Vernon’s Civil Statutes. It is wlthout question that this type of hospital is a unit of the 

county. The tax mentioned above is for county purposes 

and cannot swell the county purpose tax above the constltutlonal limit. Attorney General's Opinion No. O-6636. 

Article VIII, Section 9 of our Texas Constitution 

provides "but in no event shall the total of said foregoing taxes exceed eighty (80) cents on the one hundred 

dollars valuation, in any one year.” Many counties in 

Texas levy and assess the maximum tax authorized by this 

Article. They are curtailed from establishing a county 

hospital because of the constitutional limitations on 

taxes. 

Because of this and other reasons, there was a need 

for a new and additional governmental unit with the power 

to levy a tax on property. With this In mind, the people 

of Texas In 1954 voted upon and adopted an amendment to 

the Constitution authorizing the Legislature to provide 

for the creation of county hospital districts In certain 

counties and providing that such districts shall have 

the authority to levy a tax not to exceed seventy-five 

($.75) cents on the one hundred ($100.00) dollars valuation of all taxable property within such district. Article IX, Section 4, Texas Constitution. 

The enabling Act passed b 

4494n, Vernon's Civil Statutes '( 

the Legislature (Article 

provides for the establlshment of a hospital district with the power to levy taxes 

upon the approval of the property taxpaying voters of the 

county. It further provides the hospital district shall 

be managed, controlled and administered by a Board of Hospital Managers appointed by the Commissioners Court. Various 

county officials have certain authority in regard to some 

functions of the district. For example, Section 2 provides 

that the tax so levied shall be collected on all property 

subject to Hospital District taxation by the Assessor and 

Collector of Taxes for the county on the county tax values 
*- - 

Mr. Moore Lynn, Page 4 (WW-886) 

and in the same manner and under the same conditions as 

county taxes. However, it further provides that the 

Assessor shall charge and deduct from payments to the 

District fees for collecting the tax not to exceed one 

and one-half (14%) per cent of the total amounts collected. Also, Section 6 states that the Commissioners Court 

of the county has the power to prescribe the method and 

manner of making purchases and expenditures by and for 

such Hospital District and also shall be authorized to 

prescribe all accounting and control procedures. But 

the Hospital District must pay all salaries and expenses 

necessarily Incurred by the county or any of its officers 

and agents In performing any duties which may be prescrlbed or required and it shall be the duty of any officer, 

employee or agent of such county to perform and carry out 

any function or service prescribed by the Commissioners 

Court. 

We believe this reveals the true Intent of the 

Legislature. If a County Hospital District Is a unit 

of the county, why then must it pay the county for services rendered by county officials? If it were a county unit, these services would be an official duty of 

the officer for which no extra compensation would be due 

the officer or the county. 

It may be argued, however, that because county 

officers have certain duties in regard to the Hospital 

District and the fact that the boundaries of such District are co-extensive with that of the county, that It 

is a unit of the county. This. however. is without merit 

In view of the recent Supreme Court decision Bexar Count 

Hospital District v. Crosby, 327 S.W. 2d 445.d 

opinionwrittentice Hickman, he referred to 

the Bexar County Rospltal District as "a political subdivision of the State," "a corporation" and "a different 

governmental body" from that of the City or County, 

In view of the foregoing, It is our opinion that the 

books, records and accounts of a county hospital district 

are not books, records and accounts of the county government. Therefore, you are accordingly advised that the 

Dallas County Hospital District should not be included in 

the audit provided for by Senate Bill 178, Acts of the 

56th Legislature, Regular Session, 1959. 
Mr. Moore Lynn, Page 5 (W-886) 

Your second question will not be answered In view 

of the above ruling. 

SUMMARY 

The Dallas County Hospital District should 

not be included in the annual Independent 

audit of Dallas County as required by Senate 

Bill 178, Acts of the 56th Le islature, Regular Session, l%g.(Article 16 & l-d, Vernon's 

Civil Statutes.) 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

JMF:hb:mm 

APPROVED: 

OPINION COMMI!E'EE 

W. V. Geppert, Chairman 

Joe Allen Osborn 

L. P. Lollar 

C. Dean Davis 

Lawrence Hargrove 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Leonard Passmore