. 

GENERAL 

Honorable E E Coon 

County Attorney 

Sherman County Courthouse 

Stratford, Texas 

Dear Mr Coon: 

Opinion No, M-l 44 

Re: Obligations of the Texhoma Memorial Hospital District. 

In your recent opinion request you have submitted the following facts: 

1~ The 60th Legislature created a hospital district in Sherman County, 

with boundaries identical with those of the Texhoma Independent School District, to be known as the Texhoma Memorial Hospital District, subject to 

approval by the taxpaying voters living within the boundaries of the district 

Acts 60th Leg R S 1967, Ch 442, pi 954. The Act creating the district 

became effective August 28, 1967 

2 Prior to the effective date of the Act creating the hospital district, 

the Commissioners~ Court of Sherman County received a petition signed by the 

requisite number of voters requesting that the Court call an election to authorize the county to issue bonds for a county-wide hospital pursuant to Article 

4478, Vernon’s Civil Statutes The Commissioners’ Court has not called such 

elections 

3 A petition requesting the Commissioners’ Court to call an election 

for the purpose of approving the creating of the Texhoma Memorial Hospital 

District has been filed with the Commissioners’ Court, but the election has not 

been called 

4 The Texhoma Independent School District comprises one-fourth to 

one-third of the territory of Sherman County 

Based upon these facts, you have asked whether hospital bonds voted for in a 

county-wide election subsequent to the creation of the Texhoma Memorial Hospital District 

would be an obligation of the District 

Article 9, Section 9 of the Texas Constitution which authorizes the Legislature to 

create hospital districts states, in part: “ providing that after its creation no municipality or 

political subdivision shall have the power to levy taxes or issue bonds or other obhgations for hospital purposes or for providing medical care within the boundaries of the district ” 

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Honorable E,, E. Coon, Page 2, (M-144) 

The District, if tt is approved by the taxpaying electors, will have exclusive 

authority and responsibility in all hospital matters within its boundaries, We accordingly hold 

that the District would not be obligated to pay any hospital bonds which were voted for subsequent to its creation by another governmental entity. These county bonds would then be a 

nullity by virtue of the above quoted provision of the Constrtution, in the event the election authorizmg the issuance of the county bonds was county-wide, that is the election was for the 

whole county and Included the territory of the Texhoma Memorial Hospital Districts 

You have also asked whether hospital bonds voted for in a county-wide election 

would become an obligation of the proposed District if they were voted prior to the approval of 

the district by the voters, 

Article 9, Section 9 of the Texas Constitution also states, in part: 

“ providing that any district so created shall assume full responsibility for providing medical and hospital care for its needy inhabitants and 

assume the outstanding indebtedness incurred by cities, towns and counties 

for hospital purposes prior to the creation of the district, if same are located 

wholly withm its boundaries, and a pro rata portion of such indebtedness based 

upon the then last approved tax assessment rolls of the included cities, towns 

and counties if less than all the territory thereof is included within the district 

boundartes, “” 

Clearly under the Constitution, the District, after its approval will be liable only 

for a pro rata portion of the valid outstanding hospital indebtedness of the county It is our opinion that the District would not be obligated to pay a pro rata portion of county hospital bonds 

whrch have been voted for but unissued at the time of the approval by the voters of the creatron 

of such District If the County had outstanding valid hospital indebtedness at the time of the 

creation and approval of the District, the District would have to assume a pro rata portion of 

such indebtedness and levy an appropriate tax for the retirement thereof in accordance with the 

provisions of Article 9, Section 9 of the Texas Constitutron 

SUMMARY 

Bonds voted for m a county-wide election held subsequent to the creation and approval of the proposed Texhoma Memonal Hospital District will not 

become obligations of such district upon issuance by the County The Texhoma Memorial Hospttal District must assume only a pro rata share of the vahd 

outstanding indebtedness incurred by the county for hospital purposes prior to 

the creation of the Distract /) 

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Honorable E. E. Coon, Page 3, (M-144) 

Prepared by John W, Fainter, Jr 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Hawthorne Phillips, Chairman 

Kerns B, Taylor, Co-Chairman 

W, V Geppert 

Pat Cain 

Paul Martin 

Bill Allen 

STAFF LEGAL ASSISTANT 

A. J. Cambbi, Jr. 

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