E QRNEY GENERAL 0F TEXAS

March 31, 1964

HonorableRichard E. Rudeloff Opinion No. C-233 County Attorney Bee County Re: Whether the Commissioners Beeville, Texas Court'ofBee 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 requestingan 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 Beevflleunder authoritygiven by Article 4478, V.A.T.3. The hospital, its operationand management,was leased by the Commissioners

Court of Bee County to the Seventh Day Adventists,as lessee,under authoritygiven by Artfcle 4&g&, V.A.T.S. The lease contract In questfongives complete management of the hospftal to suCh lessee, and all phases of the operation are specified in such contract, "Article447g9 V.A.T.S., states, in part, that I. s .it the Commissioners Court) shall appoint six (6 I residentproperty 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

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

necessarynor desirableand, therefore,does not wisk to appoint such board if not required by law. With regard to these facts you ask the following questionswhich 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 authoritygiven by Article 4478, V.A.T.S.,which hospitalhas been leased by the county to a lesseeunder contract approved and acceptedunder provisions of Article 449&L, V.A.T.S.? "II. Rust a hospitalbuilt under provisions of Article 4478, V,A.T.S., be covered by fire and extended coverage insurance,and9 If so, may the insurancecarrier 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 contractsfor the necessarybufldings and improvementsthereon it shall appoint six residentproperty taxpayingcitizens of the county who shall constitutealsboard of managers of said hospital, D o . Article 4&94L,Vernon's Civil Statutes,provides in part as follows:

'3ection1. Any county in this State having a county hospitalwhich 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 determineby an order entered in the minutes of said Court that it is to the best interest of said county to lease such hospital.

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The proposed lease of such county hospital shall not be completeduntil the Commissioners Court of s;lch

county shall have compliedwith the provisionsof this Act. II

. . . 'Sec. 4. .Such Court flommissioners Courv shall th&upon be fully-authorized and empoceredto lease such county hoapital to be operatedas a hospftalby the lessee of same under such terms and'conditlons as may be satlsfactory to the Commissioners Court and the lessee.

. , .' The requirementof Article 4479, Vernon's Civil ' Statutes, that the Commissioners Court appoint a board of managers for the county hospital createdby the authority of Article 4478, Vernon's Civil Statutes, is mandatoryas long as the hospital is operatedby the county. However, since the Commisaloners Court of Bee County by the authority of Article k&94L, Vernon's Civil Statutes,has relinquished the managementand operationof 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 contractualauthorityof a Commissioners Court is strictly limited to that conferredby 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 establisha county hospital Includes the Implied authority to purchase adequate lnaurancefor the protection of the county's fnvestmentin hospftal facilities. Therefore, it fs our opinion that the purchase of the type of insurance in questionwould be authorizedunder 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 purchasepublic liability Insurance.,

AttorneyGeneral'sOpinion WW-112 (1957). Also the purchase of insurancecoverage from a mutual insurancecompanywould not be authorized,inasmuch as such purchasewould Mvolve the coun%y takingmembershfp.in or becoming a stockholderin such corporation, assocfationor

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violationof Art company in 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 coverageas contemplated here'mustbe purchasedby the counts from either a stock Insurancecomp,any or a legal reserve insurancecompany. SUMMARY The Commissioners

Court of not required to appoint a board
._ Bee County is of managers for a county hos of Article 4 78,

II ital constructeo

under the authority Vernon's Civil Statutes, such hospital being presently leasedunder 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 Constitutionfrom purchasing such Insurancefrom a mutual insurancecompany. 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

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