E QRNEY GENERAL 

0F TEXAS 

March 31, 1964 

Honorable Richard E. Rudeloff Opinion No. C-233 

County Attorney 

Bee County Re: Whether the Commissioners 

Beeville, Texas Court'of Bee County, Texas 

Is required to appoint a 

board of managers for a 

county hospital in Bee 

County, constructed under 

the authority of Article 

4478, V.C.S., 'under the 

stated facts and related, 

Dear Mr. Rudeloff: questions. 

In your letter requesting an opinion from this office, 

you submit certain facts which we quote as follows: 

'Bee County, which has a 1960 Federal 

census of 23,755, has constructed a county 

hospital at Beevflle under authority given 

by Article 4478, V.A.T.3. The hospital, its 

operation and management, was leased by the 

Commissioners Court of Bee County to the 

Seventh Day Adventists, as lessee, under 

authority given by Artfcle 4&g&, V.A.T.S. 

The lease contract In questfon gives complete management of the hospftal to suCh 

lessee, and all phases of the operation 

are specified in such contract, 

"Article 447g9 V.A.T.S., states, in 

part, that I. s .it the Commissioners Court) 

shall appoint six (6 I resident property taxpaying citizens of the county who shall constitute a board of managers of said hospital.' 

"The Commfssfoners Court of Bee County 

has not appointed such board of managers and 

is of the opinion that such board is not 

-1129- 

: .* 
Hon. Richard E. Rudeloff, page 2 (C-233) 

necessary nor desirable and, therefore, does 

not wisk to appoint such board if not required 

by law. 

With regard to these facts you ask the following 

questions which we quote as follows: 

"I * Is the Commissioners Court of Bee 

County, Texas required to appoint a board of 

managers for a county hospital In Bee County, 

constructed under authority given by Article 

4478, V.A.T.S., which hospital has been 

leased by the county to a lessee under contract approved and accepted under provisions 

of Article 449&L, V.A.T.S.? 

"II. Rust a hospital built under provisions of Article 4478, V,A.T.S., be covered 

by fire and extended coverage insurance, and9 

If so, may the insurance carrier be either 

a stock companyp 

a mutual company? 

$ legal reserve company, or 

We will answer your questions in the order in which 

they are submitted. 

Article 4479, Vernon's Civil Statutes, provides 

in part as follows: 

"When the commissioners' coupt shall have 

acquired a site for such hospital and shall 

have awarded contracts for the necessary bufldings and improvements thereon it shall appoint 

six resident property taxpaying citizens of 

the county who shall constitute alsboard of 

managers of said hospital, D o . 

Article 4&94L, Vernon's Civil Statutes, provides in 

part as follows: 

'3ection 1. Any county in this State 

having a county hospital which is operated 

by'said county, may9 and such county is hereby 

authorized to lease such hospital, provided 

the Commissioners Court of said county shall 

find and determine by an order entered in the 

minutes of said Court that it is to the best 

interest of said county to lease such hospital. 

-11140- 
Hon. Richard E. Rudeloff, page 3 (C-233) 

The proposed lease of such county hospital shall 

not be completed until the Commissioners Court 

of s;lch county shall have complied with the 

provisions of this Act. 

II 

. . . 

'Sec. 4. .Such Court flommissioners 

Courv shall th&upon be fully-authorized and 

empocered to lease such county hoapital to be 

operated as a hospftal by the lessee of same 

under such terms and'conditlons as may be satlsfactory to the Commissioners Court and the 

lessee. . , .' 

The requirement of Article 4479, Vernon's Civil ' 

Statutes, that the Commissioners Court appoint a board of 

managers for the county hospital created by the authority 

of Article 4478, Vernon's Civil Statutes, is mandatory as 

long as the hospital is operated by the county. However, 

since the Commisaloners Court of Bee County by the authority 

of Article k&94L, Vernon's Civil Statutes, has relinquished 

the management and operation of the hospital to a lessee under 

the terms of a~lease agreement , it is ,our opinion that neither 

the provisions of Article 4494L nor the provisions of the lease 

agreement imposes any duty upon the Commissioners Court of Bee 

County to appoint a board of managers for the county hospital 

during the lease period, 

The contractual authority of a Commissioners Court 

is strictly limited to that conferred by the Constitution and 

statutes, either expressly or by necessary fmplieation. Hill 

i* 

252 S.W.2d 766 (Tex.Cfv.App.p 1952, error I?= 

is our opfnion that the authorfty expressed in 

&%e"4478, Vernon's Cfvil Statutes, for the Commissioners 

Court of any county to establish a county hospital Includes 

the Implied authority to purchase adequate lnaurance for the 

protection of the county's fnvestment in hospftal facilities. 

Therefore, it fs our opinion that the purchase of the type of 

insurance in question would be authorized under the authority 

of Article 4478, Vernon's Civil Statutes, by necessary Implication. However8 the authority to purchase such insurance 

does not include the authority to purchase public liability 

Insurance., Attorney General's Opinion WW-112 (1957). 

Also the purchase of insurance coverage from a 

mutual insurance company would not be authorized,inasmuch as 

such purchase would Mvolve the coun%y taking membershfp.in 

or becoming a stockholder in such corporation, assocfation or 

-1131- 
Hon. Richard E. Rudeloff,'page 4 (C-233) 

company in violation of Art icle III, Section 52 of the Texas 

Constitution. Lewis v:Independent School District of the 

City of Austin,=9 T tl 

eX’0-?;4 

161 S W 2d 4bO 1942) Attorney 

General's Ooidons NOS. (&I : ww-g86’(1961j and WW1101 (196: 1). -"?!herefore, we' are of-the opinion.that the insurance coverage as contemplated here'must be purchased by 

the counts from either a stock Insurance comp,any or a legal 

reserve insurance company. 

SUMMARY 

The Commissioners Court of 

not required to appoint a board ._ 

Bee County is 

of managers for 

a county hos 

of Article 4 II 78, 

ital constructeo under the authority 

Vernon's Civil Statutes, such 

hospital being presently leased under the authority 

of Article 4494L, Vernon's Civil Statutes. The 

Commissioners Court of Bee County has the authority 

to purchase fire and extended coverage insurance 

for the hos ital, constructed under'the authority 

of Article fi 478, Vernon's Civil Statutes. HOWever, the Commissioners Court Is prohiblted,by the 

provisions of Article III, Section 52 of the Texas 

Constitution from purchasing such Insurance from 

a mutual insurance company. 

Very truly yoursr 

WAGGONER CARR 

1RW:mkh Assistant 

APPROVED: 

OPINION C,OMMITTEE 

W. V. Qeppert, Chairman . 

Paul Phy 

Malcolm Quick 

Gordon Appleman 

James' Strock 

APPROVED FOR~THE ATTORNEY GENERAL 

BYs Howard W. Mays 

-1132-