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## GENERAL

Honorable E E Coon County Attorney Sherman County Courthouse Stratford, Texas Dear Mr Coon: Opinion No, M-l44 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 apetition 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 elections3 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 ofthe 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 9ofthe 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 ofthe district ” -671-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 ofthe 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 ifthey were voted prior to the approval of the district by the voters,

Article 9, Section 9ofthe Texas Constitution also states, inpart: “ providing that any district so created shall assume full responsibility for providing medical and hospital care for its needy inhabitants and assume the outstandingindebtedness incurred by cities, townsand counties for hospitalpurposes prior to thecreationof thedistrict,ifsamearelocated whollywithmitsboundaries,andapro rataportion ofsuchindebtednessbased upon thethenlastapproved taxassessmentrollsof the includedcities,towns and counties iflessthanallthe territory thereofisincludedwithinthedistrict boundartes, “” Clearly under the Constitution, the District, after its approval will be liable only for a pro rata portion ofthe valid outstandinghospital indebtedness ofthe county It isour 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 ofthe 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 ofArticle 9, Section 9ofthe Texas Constitutron SUMMARY Bonds voted for m a county-wide election held subsequent to the creation and approval ofthe 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 apro rata share of the vahd outstanding indebtedness incurred by the county for hospital purposes prior to the creation ofthe Distract /)

-672&/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 BillAllen STAFF LEGAL ASSISTANT A. J. Cambbi, Jr.

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