THEA~ORNEY GENERAL 

Mr. J. T. Ellis, Jr. 

Administrator 

Department of Health 

Austin, Texas 

Dear Mr. Ellis: 

January 28, 1960 

Opinion No. 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 licensed by 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 provided by the hospital. Section 4 of Senate Bill 121 provides that a hospital may 

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 Jointly with 

any other person or governmental unit shall establish, conduct, or maintain 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 "governmental unit" 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 or making 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 connection with the observation, care, 

diagnosis or treatment of individuals who are, or 

may be, suffering from any disease or disorder, 

mental or physical. or any physical deformity or 

injury. - - 

"The definition of 'hospital' 

includes all places where 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 1953 Legislature, page 

1005, Chapter 413. 

"The definition of 'hospital' does not include 

those institutions licensed pursuant to Articles 

c55e7-88 to Articles 55%7-99 of the Mental Health 

. 

"The definition of 'hospitalP does not include 

facilities maintained or operated by the Federal 

Government or agencies thereof, nor does it include 

facilities maintained or operated by the State of 

Texas or agencies thereof. The definition of 'hospital' does, however, include those facilities maintained or operated by 'governmental or 'governmental 

unit' as those terms are defined in Section 2, subsection (d) of this Act.", 

it is clear that the Legislature intended that each hospital 

should be licensed regardless of whether 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 controlling unit is not .determinative of the number of 

licenses needed under this Act, 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 the number 
Mr. J. T. Ellis, Jr., page 3 (ww-794) 

of beds provided by the particular hospital which is being licensed. In Section 7 of Senate Bill 121, the statute provides: 

"Each hospital 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-five Dollars 

($25.00) will be required of those hospitals with 

less than twenty-five (25) beds, and a maximum 

license fee of Three Hundred Dollars ($300.00) will 

be required of those hospitals with 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 r-O- 300.00 

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 district mus E be individually litensed. The license fee for an individual hospital 

is based on the number of beds provided by 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 

Milton Richardson 

Assistant 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Leonard Passmore