Honorable John Henry Tatum County Attorney Angelina County P. 0. Box 582 Lufkin, Texas 75901
Dear Mr. Tatum: Opinion No. M-752 Re: Authority of Commissioners

Court to order proceeds from the sale ofhospital bonds to be deposited with County Treasurer pending construction ofhospital improvements. You have requested our opinion as toproper custodian ofthe proceeds received from the sale ofAngelina County Hospital bonds pending construction ofhospital improvements. Specifically you have asked ifit was proper for the Commissioners Court to place these proceeds inthe hands ofthe hospital’s Administrator or whether these funds should have been turned over to the County Treasurer for deposit.

Article 4478, Vernon’s Civil Statutes, provides as follows:

“The Commissioners Court of any county shall have power to establish acounty hospital and to enlarge any existing hospitals for the care and treatment ofpersons suffering from any illness, disease or injury, subject tothe provisions of this chapter . . . Where any such proposition shall receive amajority ofthe votes of the qualified property taxpayers voting at such election, said Commissioners Court shall establish and maintain such hospital and shall have the following powers:

“1. . .

“2. To purchase or erect all necessary buildings, make all necessary improvements and repairs and alter any existing buildings, for the use of said hospital . .

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“3. . .

“4. To issue county bonds to provide funds for - the establishing, enlarging and equipping of said hospital and for all other necessary permanent improvements in connection therewith: . . .

“5. To appoint aboard ofmanagers for said hospital.” (Emphasis added. ) Article 4479, Vernon’s Civil Statutes, provides, inpart, as follows: “When the Commissioners Court shall have acquired site for such hospital and shall have awarded contracts for the necessary buildings and improvements thereon, it shall appoint six (6) resident property taxpaying citizens ofthe county who shall constitute aboard ofmanagers of said hospital . . . The managers shall be allowed their actual and necessary traveling and other expenses within this state tobe audited and paid by the Commissioners Court inthe same manner as other expenses ofthe hospital . . ” (Emphasis added. ) Article 4480, Vernon’s Civil Statutes, further states:

“The board ofmanagers shall elect from among its members apresident, and one or more vice-presidents and asecretary and atreasurer. It shall appoint asuperintendent ofthe hospital who shall hdld office atthe pleasure of said board . . . Said board shall fix the salaries ofthe superintendent and all other officers and employees within the limits ofthe appropriation made therefor by the Commissioners Court . . . The board shall have the general management and control ofthe said hospital, grounds, buildings, officers and employees thereof; . .” (Emphasis added. ) Article 4484, Vernon’s Civil Statutes, states inpart, as follows:

‘1. . . The board shall certify all bills and accounts,
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Honorable John Henry Tatum, page 3 (M-752)

including salaries and wages, and transmit them to the Commissioners’ Court, who shall provide for their payment inthe same manner as other charges against the county are paid.

“The board ofmanagers shall make to the commissioners court . . . adetailed report ofthe operation ofthe hospital . . . and shall furnish full and detailed estimates ofthe appropriations required during the ensuing year for all purposes, including maintenance, the erection ofbuildings, repairs, renewals, extensions, improvements, betterments or other necessary purposes. ” (Emphasis added. ) With regard to authority and responsibilities of aSuperintendent of any such hospital, we refer you to Article 4485, Vernon’s Civil Statutes, which reads, inpart, as follows: “The Superintendent shall be the chief executive officer ofthe hospital, but shall at all times be subject to the by-laws, rules and regulations thereof, and to the powers ofthe board ofmanagers.

“He shall, with the consent ofthe board of managers, equip the hospital with all necessary furniture, appliances, fixtures and all other needed facilities for the care and treatment ofpatients, and for the use of officers and employees thereof, and shall purchase all,*ecessary supplies, not exceeding the amount provided for such purposes by the commissioners court.

1’. . . “He shall cause proper accounts and records of the business and operations ofthe hospital to be kept regularly from day to day inbooks and on records provided for that purpose; and shall see that such accounts and records are correctly made upfor the annual report

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Honorable John Henry Tatum, page 4 (M-752)

as required by this law, and present the same to the board ofmanagers who shall incorporate them intheir report to the commissioners court.

‘. . . “He shall collect and receive all moneys due the hospital, keep an accurate account ofthe same, report the same atthe monthly meeting of the board ofmanagers, and transmit the same to the county collector within ten days after such meeting. ” (Emphasis added. ) Inprior opinions ofthis office ithas been held that the “county collector” as referred to inArticle 4485, V.A. T.S. is the “county treasurer” and proper custodian of county funds. Attorney General Opinions O-6433 (1945), V-1100 (1950) and V-1265 (1951); Article 1709, V. C. S.

There is no provision inthe law which authorizes the Board of Managers or the Superintendent tobe the custodian of any funds received or to be received for and onbehalf of acounty hospital. The only reference made to any such limited authority deals with the temporary receipt, by the hospital Superintendent, ofmonies generated by the operation of said hospital, and which must be accounted for monthly to the Board ofManagers of said Hospital and deposited ten days thereafter with the County Treasurer.

It should be clear from areading ofthe statutes involved that all funds, be they proceeds from the sale ofhospital bonds, monies generated by the operation of said hospital, or funds of any other nature or source, should be deposited with the County Treasurer.

Although the management ofthe county hospital is vested inthe Board ofManagers and hospital Superintendent, the Commissioners Court must approve all expenditures onbehalf of said hospital prior to their actual payment by the County Treasurer. There would be no need for any funds to be deposited with the Superintendent or the Board ofManagers, for they have no authority to make any cash expenditures. Attorney General’s Opinion V-510 (1948. )

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Honorable John Henry Tatum, page 5 (M-752)

SUMMARY The Commissioners Court should order the proceeds realized from the sale of county hospital bonds deposited with the county treasurer pending completion ofproposed construction or improvements to county hospital. 0 Yoursvery truly,

era1 of Texas Prepared by Robert B. Davis Assistant Attorney General APPROVED: OPINION COMMITTEE Kerns Taylor, Chairman W. E. Allen, Co-Chairman Phil Warner Tom Fortescue Max Hamilton Ivan Williams Meade F. Griffin Staff Legal Assistant Alfred Walker Executive Assistant Nola White First Assistant

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