TEE .A-~~oRN~EY GENERAL OF TEXAS

GERALD C. MANN -ON

Bonorable R. V. Rayford CountyAuditor Rusk County -' Henderson, Texas
Dear Sir: OpinionNo. O-1827 Re: Can the commissioners'courtpay a solicitor to securemembers for the group hospital serviceprovided for underArticle 45gOa?
Your recent request for an opinion of this department on the above statedquestion has been received.
We quote from your letter as follows: "Article4590aRevised 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 secureMembers for the Group Hospital under the above article?" Service provided for Sections 1, 2 and 3 ofArticle 4590a,Vernon's Annotated Civil Statutes, reads as follows:

"Section1. That from and after the passseven (7) or more persons, age of this Act, any a majority ofwhom are superintendentsOS hospitals or physicians or surgeons licensedby 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 corporationthrough an establishedhospital or hospitals,and sanitariumswith which it has contracted for such care, as is hereinafter defined."Honorable R, V. Rayford, page 2 o-1827

"Sec.2. That such corporationswhen organized shallbe authorized to accept applicants, who may become members of said corporations furnishing group hospital serviceunder a contract, which shall entitle each member to such hospital care for suchperiod of time as is provided therein; and that such corporations shall be governed by this Act and shallnot be construed as being engaged in the business of insurance under the laws of this State. That such corporations organized and operatedunder the provisions of this Act shall not be required by any department of this State to post bond, or place depositswith any department of this-state to begin and/or operate under thisAct and the provisions of Title 78 of the Revised Civil Statutes of Texas of 1925, are herebydeclared inapplicable to corporations organizedand/or operated under thisAct." "Sec. 3. That said corporations shallbe governed and conductedas nonprofit organizations for the sole purpose of offering and furnishing hospital service to itsmembers in consideration of the paymentby suchmembers 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 fifteenper cent (15%) of all cluesor 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'sAnnotated Civil Statutes, reads as follows:

"Thecommissioners court of any county shall have power to establisha county hospital and to enlarge any existinghospitals 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 countymay petition such court to provide for the establishing or enlarging of a county hospital, inwhich event said courtwithin the time designated in such petition shall submitHonorable R. V. Ragford, page 3 0-1827

to such voters at a special or regular election the proposition of issuingbonds in such aggregate amount as may be designated in saidpetition 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 commissionerscourt shall establishand 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 condemnationproceedings. "2

. To purchase or erect all necessarybuildm3s, make all necessary improvementsand repairs and alter any existingbuilding, for the use of said hospital. The plans for such erection, alteration, or repair shall firstbe 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 shalldeem necessary to provide the funds for themaintenance thereof, and for all other necessary expenditures therefor. “4. To issue county bonds to provide funds for the establishing,enlarging ana equipping of said hospitaland for all other necessary permanent improvementsin connection therewith; to do all other things thatmay be requiredby law in order to render said bonds valid. “5D To appoint a board of managers for said hospital. “6e To accept and hold in trust for the county,any grant or devise of land, or any gift or bequest of money or otherpersonal property or any donation to be applied, principal or income or both, for the benefit of said hospital,and apply the same in accordancewith the terms of the gift." Also seeArticles 4479, 4480, and other a??tiCleS SetHonorable R. V. Rayford, page 4 o-1827

out in Chapter 5 under Title 71 of Vernon'sAnnotated 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 certainduties and authorities as given by the above-mentioned statutes. The statutesmentionedunder 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 hospitalswith considerabledetail. The commissioners'court isgiven the authority to acquire real property for suchpurpose; 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 Constitutionand the laws as passed by the Legislature. See Article 5, Section 18, of the Constitutionof Texas; Baldwin v. Travis County, 88 S.W. 480; Seward v. Falls County, 246 S.W. 728; CommissionerslCourtv. Wallace, 15 S.W. (2) 535. Article 459Oadoes not give any new or additional power or authority to the Commissioners' pitals. Court regarding county hosIn opinion No. O-926,written by HonorableWm. J.R, King, AssistantAttorney General, directed to Honorable A. E. Hickerson, CountyAuditor, MontgomeryCounty, Conroe,Texas, this department held that:

"It is the opinion of this department that the Montgomery CountyHospital Board of Managers does not have authority to sellpolicies of insurance for hospital serviceunder a membership plan as a means of financing the county hospital."
In view of the foregoingauthoritiesyou 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 securemembers 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/ArdellWilliams Ardell~Williams Assistant AW:Ul:wc s/GERALD C. MANN Approved Opinion CommitteeBy s/BWB Chairman