TEE .A-~~oRN~EY GENERAL 

OF TEXAS 

GERALD C. MANN 

-ON 

Bonorable R. V. Rayford 

County Auditor 

Rusk County -' 

Henderson, Texas 

Dear Sir: Opinion No. O-1827 

Re: Can the commissioners' court pay 

a solicitor to secure members for 

the group hospital service provided for under Article 45gOa? 

Your recent request for an opinion of this department 

on the above stated question has been received. 

We quote from your letter as follows: 

"Article 4590a Revised Civil Statutes provides for Group Bospital Service. Section 3 

limits to 15% of all dues and payments the amount that may be paid for adminIsterIng the 

affairs of the Service. 

'!Can the Commissioners' Court pay a Solicitor to secure Members for the Group Hospital 

Service provided for under the above article?" 

Sections 1, 2 and 3 of Article 4590a, Vernon's Annotated 

Civil Statutes, reads as follows: 

"Section 1. That from and after the passage of this Act, any seven (7) or more persons, 

a majority of whom are superintendents OS hospitals or physicians or surgeons licensed by 

the State Board of Medical Examiners, upon application to the Secretary of State of the State 

of Texas for a corporate charter may be incorporated for the purpose of establishing, maintaining and operating a nonprofit hospital service plan, whereby hospital care may be provided 

by said corporation through an established hospital or hospitals, and sanitariums with which it 

has contracted for such care, as is hereinafter 

defined." 
Honorable R, V. Rayford, page 2 o-1827 

"Sec. 2. That such corporations when organized shall be authorized to accept applicants, 

who may become members of said corporations furnishing group hospital service under a contract, 

which shall entitle each member to such hospital care for such period of time as is provided 

therein; and that such corporations shall be 

governed by this Act and shall not be construed 

as being engaged in the business of insurance 

under the laws of this State. That such corporations organized and operated under the provisions 

of this Act shall not be required by any department of this State to post bond, or place deposits with any department of this-state to begin and/or operate under this Act and the provisions of Title 78 of the Revised Civil Statutes 

of Texas of 1925, are hereby declared inapplicable to corporations organized and/or operated 

under this Act." 

"Sec. 3. That said corporations shall be 

governed and conducted as nonprofit organizations for the sole purpose of offering and furnishing hospital service to its members in consideration of the payment by such members of a 

definite sum for the hospital care so contracted 

to be furnished. The necessary expenses of aaministering the affairs of said corporations 

may be paid from the dues or payments collected. 

Provided not more than fifteen per cent (15%) 

of all clues or payments received may be used for 

expenses of administering the affairs of said 

corporation, subject to the authorization or 

approval of the Board of Insurance Cownissioners 

of Texas." 

Article 4478, Vernon's Annotated Civil Statutes, reads 

as follows: 

"The commissioners court of any county 

shall have power to establish a county hospital and to enlarge any existing hospitals for 

the care and treatment of persons suffering 

from any illness, disease or injury, subject 

to the provisions of this chapter. At intervals of not less than twelve months, ten per 

cent of the qualified property tax paying voters 

of a county may petition such court to provide 

for the establishing or enlarging of a county 

hospital, in which event said court within the 

time designated in such petition shall submit 
Honorable R. V. Ragford, page 3 0 -1827 

to such voters at a special or regular election 

the proposition of issuing bonds in such aggregate amount as may be designated in said petition 

for the establishing or enlarging of such hospital. Whenever any such proposition shall receive a majority of the votes of the qualified 

property tax payers voting at such election, 

said commissioners court shall establish and 

maintain such hospital and shall have the following powers: 

"1 * To purchase and lease real property 

therefor, or acquire such real property, and 

easements therein, by condemnation proceedings. 

"2 . To purchase or erect all necessary buildm3s, make all necessary improvements and repairs and alter any existing building, for the 

use of said hospital. The plans for such erection, alteration, or repair shall first be approved by the State Health Officer, if his approval is requested by the said commissioners 

court. 

“3 . To cause to be assessed, levied and 

collected, such taxes upon the real and personal property owned in the county as it shall deem 

necessary to provide the funds for the maintenance thereof, and for all other necessary expenditures therefor. 

“4. To issue county bonds to provide funds 

for the establishing, enlarging ana equipping 

of said hospital and for all other necessary 

permanent improvements in connection therewith; 

to do all other things that may be required by 

law in order to render said bonds valid. 

“5 D To appoint a board of managers for said 

hospital. 

“6 e To accept and hold in trust for the 

county, any grant or devise of land, or any gift 

or bequest of money or other personal property 

or any donation to be applied, principal or income or both, for the benefit of said hospital, and 

apply the same in accordance with the terms of the 

gift." 

Also see Articles 4479, 4480, and other a??tiCleS Set 
Honorable R. V. Rayford, page 4 o-1827 

out in Chapter 5 under Title 71 of Vernon's Annotated civil 

Statutes, pertaining to the board of managers, powers of such 

board, records, superintendents, 

port of patients, etc., regarding 

admission of patients, supthe county commissioners' 

county hospitals, wherein 

court has certain duties and authorities as given by the above-mentioned statutes. 

The statutes mentioned under Title 71, Chapter 5, of 

Vernon's Annotated Civil Statutes, are called to your attention for the purpose of showing the Legislature had treated 

the subject of erecting, establishing, operating and maintaining such hospitals with considerable detail. 

The commissioners' court is given the authority to acquire real property for such purpose; to erect all necessary 

buildings, and to levy and collect taxes for the maintenance 

thereof. 

The commissioners' court is a creature of the State 

Constitution and its powers are limited and controlled by the 

Constitution and the laws as passed by the Legislature. See 

Article 5, Section 18, of the Constitution of Texas; Baldwin v. 

Travis County, 88 S.W. 480; Seward v. Falls County, 246 S.W. 

728; CommissionerslCourt v. Wallace, 15 S.W. (2) 535. 

Article 459Oa does not give any new or additional power 

or authority to the Commissioners' 

pitals. 

Court regarding county hosIn opinion No. O-926, written by Honorable Wm. J.R, King, 

Assistant Attorney General, directed to Honorable A. E. Hickerson, County Auditor, Montgomery County, Conroe, Texas, this 

department held that: 

"It is the opinion of this department that 

the Montgomery County Hospital Board of Managers 

does not have authority to sell policies of insurance for hospital service under a membership 

plan as a means of financing the county hospital." 

In view of the foregoing authorities you are respectfully advised that it IS the opinion of this department that the 

county commissioners' court has no authority to employ and pay 

a solicitor to secure members for group hospital service as 

provided for under Article 459Oa, supra. 

Trusting that the foregoing fully answers your inquiry, 

we remain 
.- . 

Honorable R. V. Rayford, page 5 o-1827 

Yours very truly 

ATTORNEY GENERAL OF TEXAS 

By s/Ardell Williams 

Ardell~Williams 

Assistant 

AW:Ul:wc 

s/GERALD C. MANN 

Approved Opinion Committee By s/BWB Chairman