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 of hospital bonds to 

be deposited with County 

Treasurer pending construction 

of hospital improvements. 

You have requested our opinion as to proper custodian of the proceeds received from the sale of Angelina County Hospital bonds pending 

construction of hospital improvements. Specifically you have asked if it 

was proper for the Commissioners Court to place these proceeds in the 

hands of the 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 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 . . . Where any 

such proposition shall receive a majority of the 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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Honorable John’Henry Tatum, page 2 (M-752) 

“3. . . 

“4. To issue county bonds to provide funds for 

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the establishing, enlarging and equipping of said hospital and for all other necessary permanent improvements in connection therewith: . . . 

“5. To appoint a board of managers for said 

hospital.” (Emphasis added. ) 

Article 4479, Vernon’s Civil Statutes, provides, in part, 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 of the county who shall constitute a board 

of managers of said hospital . . . The managers shall be 

allowed their actual and necessary traveling and other expenses within this state to be audited and paid by the Commissioners Court in the same manner as other expenses 

of the hospital . . ” (Emphasis added. ) 

Article 4480, Vernon’s Civil Statutes, further states: 

“The board of managers shall elect from among 

its members a president, and one or more vice-presidents 

and a secretary and a treasurer. It shall appoint a superintendent of the hospital who shall hdld office at the pleasure 

of said board . . . Said board shall fix the salaries of the 

superintendent and all other officers and employees within 

the limits of the appropriation made therefor by the Commissioners Court . . . The board shall have the general 

management and control of the said hospital, grounds, buildings, officers and employees thereof; . . ” (Emphasis added. ) 

Article 4484, Vernon’s Civil Statutes, states in part, 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 in the same manner as other 

charges against the county are paid. 

“The board of managers shall make to the 

commissioners court . . . a detailed report of the 

operation of the hospital . . . and shall furnish full 

and detailed estimates of the appropriations required 

during the ensuing year for all purposes, including 

maintenance, the erection of buildings, repairs, renewals, extensions, improvements, betterments or 

other necessary purposes. ” (Emphasis added. ) 

With regard to authority and responsibilities of a Superintendent 

of any such hospital, we refer you to Article 4485, Vernon’s Civil Statutes, 

which reads, in part, as follows: 

“The Superintendent shall be the chief executive officer of the hospital, but shall at all times be 

subject to the by-laws, rules and regulations thereof, 

and to the powers of the board of managers. 

“He shall, with the consent of the board of 

managers, equip the hospital with all necessary furniture, appliances, fixtures and all other needed 

facilities for the care and treatment of patients, 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 of the hospital to be kept 

regularly from day to day in books and on records provided for that purpose; and shall see that such accounts 

and records are correctly made up for 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 of managers who shall incorporate 

them in their report to the commissioners court. 

‘. . . 

“He shall collect and receive all moneys 

due the hospital, keep an accurate account of the 

same, report the same at the monthly meeting of 

the board of managers, and transmit the same to 

the county collector within ten days after such 

meeting. ” (Emphasis added. ) 

In prior opinions of this office it has been held that the “county 

collector” as referred to in Article 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 in the law which authorizes the Board of 

Managers or the Superintendent to be the custodian of any funds received 

or to be received for and on behalf of a county hospital. The only reference 

made to any such limited authority deals with the temporary receipt, by the 

hospital Superintendent, of monies generated by the operation of said hospital, and which must be accounted for monthly to the Board of Managers 

of said Hospital and deposited ten days thereafter with the County Treasurer. 

It should be clear from a reading of the statutes involved that all 

funds, be they proceeds from the sale of hospital 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 of the county hospital is vested in the 

Board of Managers and hospital Superintendent, the Commissioners Court 

must approve all expenditures on behalf 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 of Managers, 

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 of proposed 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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