## THEA~ORNEY GENERAL

Mr. J. T. Ellis, Jr. Administrator Department of Health Austin, Texas

Dear Mr. Ellis: January 28, 1960 OpinionNo. NW-794 Re: Under the Texas Rospital Licensing Law, Senate Bill 121, Acts 56th Legislature, Regular Session, 1959, codified as Article %37f, V.C.S., should all hospitals operated by a hospital district be individually licensedby the State Board of Health, and related questions. You have requested an opinion from this office as to whether all hospitals operated by a hospital district should be individually licensed and also whether the license fee for hospitals Is based on the number of beds providedby thehospital. Section 4 of Senate Bill 121 provides that a hospitalmay not be maintained in this State without a license obtained under the provisions of Senate Bill 121.

"Sec. 4. After January 1, 1960,no person or governmental unit acting severally or Jointlywith any other person or governmental unit shall establish, conduct, ormaintain a hospital 

### in this state without a license obtained under the provisions of this law." Section 2(d) of Senate Bill 121 Gefines the term "governmental" or "governmentalunit" as included in Seetion 4 of Senate Bill 121 to mean:

"Cd) The term 'governmental'or 'governmental unit? means any hospital district, county,municipality or other political subdivision, or any department,division, board, or other agency of any of the foregoing." From the previous sections quoted? and Section 2(b) of Senate Bill 121, which defines the term 'hospital":

"(b) The term 'hospital'means any fnstitution, place,building, dwelling, or abode, whether_ - -

Mr. J. T. Ellis, Jr., page 2 

### mw-794)

organized for profit or non-profit, general or special, private, public, or governmental,offering ormaking available any medical and/or surgical services,facilities, or equipment for a period of time extending either over night or beyond twenty-four (24)hours, for two (2)or more nonrelated individuals,whereby such services, facilities, or equipment can, may, or are used for and in connectionwith the observation,care, diagnosis or treatment of individualswho are, or may be, suffering from any disease or disorder, mental or physical. or any physicaldeformity or injury. - - "Thedefinition of 'hospital' includes all placeswhere pregnant received, cared for, or delivered, of the number of patients received of their stay. specifically females are irrespective or the duration

"The definition of 'hospital'does not include those facilities l,i,censed pursuant to the provisions of Article 44+2c, Acts 

### 1953Legislature,page 1005, Chapter 

### 413. "Thedefinition of 'hospital'does not include those institutions licensed pursuant toArticles 

### c55e7-88

toArticles 

### 55%7-99of the Mental Health

."The definition of 'hospitalPdoes not include facilitiesmaintained or operatedby the Federal Government or agencies thereof,nor does it include facilitiesmaintained or operated by the State of Texas or agencies thereof. The definition of 'hospital' does, however, include those facilitiesmaintained or operatedby 'governmental or 'governmental unit' as those terms are defined in Section 2, subsection (d) of thisAct.", it is clear that the Legislature intended that eachhospital should be licensed regardless ofwhether the hospital is in a hospital district or county,municipality or any other political subdivision. It is also clear from the terms of the statute that the controllingunit is not .determinative of the number of licenses needed under thisAct, but that each must be licensed.

You have also requested an opinion as to whether the license fee for the hospital or hospitals is based on thenumberMr. J. T. Ellis, Jr., page 

### 3 (ww-794)

of beds providedby the particularhospitalwhich is being licensed. In Section 

### 7 of Senate Bill 121, the statute provides:

"Eachhospital so licensed shall pay a license fee, both initially and annually thereafter, of One Dollar ($1.00)per bed, provided,however, that a minimum license fee of Twenty-fiveDollars ($25.00)will be required of those hospitalswith less than twenty-five (25)beds, and a maximum license fee of Three Hundred Dollars ($300.00)will be required of those hospitalswith more than three hundred (300)beds."' The license fee is based on the number of beds vided by the hospital, subject to the $25.00 minimum and 300.00 r-O- maximum provisions contained in Section 7, and is not based upon the number of beds actually in use. SUMMARY Under Senate Bill 121 all hospitals operated by a hospital districtmusE be individually litensed. The license fee for an individualhospital is based on the number of beds providedby the hospital. Yours very truly, WILL WILSON Attorney General of Texas

JCS:ms:mfh:wb APPROVED: OPINION COMMITTEE W. V. Geppert, Chairman Bill Allen Jack Goodman MiltonRichardson Assistant

REVIEWED FOR THE ATTORNEY GENERAL BY: Leonard Passmore