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 

Compensation Act 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 agencies which 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-trailers which are the property of and 

used exclusively in the service of 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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Honorable David Wade, M. D., page 2, (M- 1033) 

in Section 3-aa o,f this Act to register all 

such vehicles, 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.ed States 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 State by one 

or more of the aEoresa,id local agencies. 

"Four (4) Community Centers for Mental 

Health and Mental Retardation services have 

been established in this State by one or 

more of the aforesaid local agencies together 

with a State supported institution of higher 

education or a State supported medical school 

as authorized by a pre-existing law. (See 

H.B.3, 59th Le islature, .Regular Session 

1965, Chapter g 7s Article ,. 3, Sect.ion 3.01(a), 

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 purchased mo~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, 

established by those local agencies or any 

combination 'thereof, as heret'efore described, 

included within the coverage of the Texas 

Unempl.oyment Compensati.on Act, as amended, 

-50’37 .’ 
. 

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

effective January 1, 1972? 

"2. Which Community Centers, if any, 

established by those local agencies or any 

combination thereof, as heretofore described, 

are entitled to receive the exemption authorized in Texas Revised Civil Statutes Annotated 

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 instrumentality of 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 

instrumentality is a juristic entity which 

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's Opinion No. M-149, 1967, states in 

part: 

ters 

II 

. 6 .Community Centers for mental health 

and mental retardation are political subdivisions within the provisions of Section 

1 of Article 695g, Vernon's Civil Statutes, 

and the employees of said political subdivisions are entitled to social security 

coverage e " 

It is the opinion of this office that the Community Cenare "political subdivisions" as that term is used in the 

'l'exas Unemployment Compensation Act, as amended, effective 

January 1, 1972, and that 'each Community Center is entitled 

to election of coverage as provided in Article 5221b-6(b)(3), 

Ve,rnon's Civil Statutes, which states in part: 

“(3) A political subdivision of the State of 

Texas may voluntarily elect coverage for not 

less than .two (2) calendar years'and such 

election may be made with respect to (A) all 

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. . 

llonorable 1,avl.d Wade, M. I)., page 'I, (M- 1033) 

services performed for the political subdivision, or (B) all services performed 

for all institutions of higher education 

and all hospitals operated by the political 

subdivision, or (C) all services performed 

for one (1) or more separate parts or 

divisions of the political subdivision; 

and, if such election is made, the employer 

shall pay 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 subdivisions but had 

their existence solely as agents of the State, and as agents 

of the State were relieved by Article 6675a-3 from the obligation to pay motor vehicle registration fees. 

The Community Centers have their existence as agents of 

the State for providing mental health and mental retardation 

services and as such are entitled to the exemption as authorized by Article 6675a-3. 

SUMMARY 

Community Centers for Mental Health and 

Mental Retardation services are political 

subdivisions as that term is used in the Texas 

Unemployment Compensation Act, 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 authorized by Article 

6675a-3, V.C.S. 

Prepared by Michael E. Stork 

Assistant Attorney 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 Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

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