Honorable David Wade, M. D.

Commissioner Texas Department of Mental Health and Mental Retardation BOX 12668, Capitol Station Austin, Texas

Dear Dr. Wade: Opinion No. M-1033
Re: When are employee~s of Community Centers for Mental Health and Mental Retardation Services included within the coverage of the Texas Unemployment CompensationAct effective January 1, 1972, and which Community Centers are entitled to receive the exemption authorized in Article 6675a-3(c), Vernon's Civil Statutes.
In your reauest for an opinion from this office YOU refer to-the foilowing statutes: Article 5547-203, Section 3.01(a),Vernon's Civil which states in part: "Local agencieswhich may establish and operate community centers are a county, a city, a hospital district, a school district, or any organizational combination of two (2)or more of these." Statutes,

Article 6675a-3(c),Vernon's Civil Statutes,which states in part:
"Owners of motor vehicles, trailers and semi-trailerswhich are the property of and used exclusively in the serviceof the United States Government,the State of Texas, or any county, city, or school district thereof, shall apply annually to the department as provided

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in Section 3-aa o,fthis Act to register all suchvehicles, but shall not be required to pay the registration fees here~in prescribed, provided that aff1davi.t is made at the time of registrat~inn

by a person who has the proper authority that such vehicles are the property of and used exclusively in the service of ,the

Unit.edStates Government, the State of Texas, or a county, cfty, or school distr.ict

thereof, as the case may be."
You further state in your opinion reques,t: "Twenty-one (21)Community Centers for Mental Health and Mental Retardation services have been established in this Stateby one or more of the aEoresa,id local agencies.
"Four (4) Community Centers for Mental Health and Mental Retardation serviceshave been established in this Stateby one or more of the aforesaid local agencies together with a State supported institutionof higher education or a State supportedmedical school as authorizedby a pre-existing law. (See H.B.3, 59th Le islature, .RegularSession 1965, Chapter 7s Article 3, Sect.ion3.01(a),

g ,. page 1;71),
"These Ccmmun:i~ty

Centers employ and train pers~cnel to admi,nister their programs and services. Some of these Community Centers also have purchasedmo~tor,veh.icles .ta be used in prov.id.ing

the,f,r servi,c*s,

and those mo.tor vehicles are reg;i,stered :in.the name of the individual Community Cer~:t.er. "
You then r,eque:st

our ~~pi,n.iu.~n

on the following questions.
"I* Under what t:,i r,cumstane

es) if any, are the empl<,yees of Ci:!mmun,ity

Centers for Mental Health and Mental Retardation services, establishedby those local agencies or any combination 'thereof, as heret'efore

described, includedwithin the coverage of the Texas Unempl.oyment

Compensati.on

Act, as amended,

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Honorable David Wade, M. D., page 3, (M-1033)

effective January 1, 1972?
"2. Which Community Centers, if any, establishedby those local agencies or any combination thereof, as heretofore described, are entitled to receive the exemption authorized in Texas Revised Civil StatutesAnnotated Article 6675a-3(c)?" Subsection (h)of Section 1 of Article 6959, Vernon's Civil Statutes,pertaining to Social Security coverage for county and municipal employees,provides:

"(h) The term political subdivision includes an instrumentalityof the State,, of one or more of its political subdivisions, or of the State and one or more of its political subdivisions,but only if such instrumentalityis a juristic entitywhich is legally separate and distinct from the State or subdivision and only if its employees are not by virtue of their relation to such juristic entity employees of the State or subdivision." Attorney General'sOpinion No. M-149, 1967, states in part:

ters II

. 6 .CommunityCenters formental health and mental retardation are political subdivisions within the provisions of Section 1 of Article 695g, Vernon's Civil Statutes, and the employees of saidpolitical subdivisions are entitled to social security coveragee"
It is the opinion of this office that the Community Cenare "political subdivisions"as that term is used in the 'l'exas Unemployment CompensationAct, as amended, effective January 1, 1972, and that 'eachCommunity Center is entitled to election of coverage as provided inArticle 5221b-6(b)(3), Ve,rnon's

Civil Statutes,which states in part: “(3) A political subdivisionof the State of Texas may voluntarily elect coverage for not less than .two(2) calendaryears'and such electionmay be made with respect to (A)all
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llonorable

1,avl.d Wade, M. I).,

page 'I, (M- 1033)

servicesperformed for the political subdivision, or (B)all servicesperformed for all institutionsof higher education and all hospitals operatedby the political subdivision,or (C)all servicesperformed for one (1)or more separateparts or divisions of the political subdivision; and, if such election is made, the employer shallpay reimbursements for benefits as provided in Section 7-A of this Act."
In State Highway Commission, et al. v. Harris Counte Flood Control Dist., et al., 247 S.W.2d 135 (Tex.Civ.App. 1952, error ref. n.r.e.) the court held that the Harris County Houston Ship Channel Navigation District and Harris County Flood Control District were political subdivisionsbut had their existence solely as agents of the State, and as agents of the Statewere relievedby Article 6675a-3 from the obligation to pay motor vehicle registration fees. The Community Centershave their existenceas agents of the State for providingmental health and mental retardation services and as such are entitled to the exemption as authorizedby Article 6675a-3.
SUMMARY

Community Centers for Mental Health and Mental Retardation services are political subdivisionsas that term is used in the Texas Unemployment CompensationAct, as amended, effective January 1, 1972, and each Community Center is entitled to election of coverage as provided in Article 5221b-6(b)(3),V.C.S. All of the Community Centers are entitled to the exemption as authorizedby Article 6675a-3,V.C.S.

Preparedby Michael E. Stork AssistantAttorney General
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Honorable David Wade, M. D., page 5, (M-1033)

APPROVED: OPINION COMMITTEE
Kerns Taylor, Chairman Bill Allen, Co-Chairman Harriet Burke Gordon Cass Austin Bray James Quick
SAM McDaniel Staff LegalAssistant
ALFRED WALKER ExecutiveAssistant
NOLA WHITE First Assistant

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