## THE ATTORNEY GENERAL Ql?a‘EXAS

Honorable Franklin L. Smith Opinion No. 

## C-501 CountyAttorney Nueces County Re: Whether a hospital, Corpus Christi,Texas o erating under Article 4f7941,

V.C.S. may create and participate in a retirementprogram for the employees of the hospitalby contracting for the purchase of retirement insurance, Dear Ur. Smith: and related question.

You have requested the opinion of this office on the following questions:

"(1) May a hospital operating under Article 44941 create and participate in a retirement program for employees of a hospitalby contracting for the purchase of retirement insurance? "(2) May such hospitalmake payroll deductions from the salary of its employeesparticipating in such program?"
In the absence of either constitutionalor statutory authorization, the Board'of Managers of a hospital created under Article 4494i,, Vernon's Civil Statutes, is not authorized to create and participate in a retirementprogram for its employeesby contracting for the purchase of retirement insurance.

No such authorization is granted'by Section 62b, Article XVI of the Texas Constitutionnor by Article 6243h, Vernon's Civil Statutes. Section 62b, Article XVI, Texas Constitution,provides for retirementbenefits for county employeeswhen authorizedby a majority vote of the qwalified voters of such county at an election called for that purpose. Article 6243h, Vernon's Civil Statutes,provides for the creation and establishmentof a retirementprogram for city em lo ees and the employees of certain hospital districts. T7E%3i= er of these provisions authorize the creation of or participation in a retirementprogram for employees of a hospital established and operatedpursuant to the provisions -2806-Hon. Franklin L. Smith, page 2 

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of Article 44941, Vernon's Civil Statutes.

Similarly,neither Articles 3.50 nor 3.51, Insurance Code, authorize the governingboard of such hospital to establish or participate in a retirementprogram for its employeesby purchasing retirement insurance. Article 

## 3.50, InsuranceCode, is restricted to the purchase of "group life insurance",wholly paid for by the employees,while Article 

## 3.51, InsuranceCode, is limited to the purchase of "grouphealth, accident, accidental death and dismemberment,and hospital, surgical, and/or medical expense insurance"paid for, in part, by contributions from deduction of salariesof the employeeswhen authorized in writing by such employees.

Our research has directed us to no statutes, enacted prior or subsequent toArticle 44941, Vernon's Civil Statutes, which authorize the governing board of suchhospital to create or participate in a retirementprogram for its employees.

The making of payroll deductions from the employees' salaries for the purpose of purchasing or making premiumpayments upon retirement insurance in the absence of express constitutional or legislativeauthorization is prohibited. opinion NO. ~~-1211 (1961). Attorney General's

In view of the foregoing,we agree with your able opinion, and answer both Questions 1 and 2 in the negative under the factual situationpresented. SUMMARY
In the absence of either constitutional or legislativeauthorization, the Board of Managers of MemorialMedical Center of Nueces county, created underArticle 44941, Vernon's Civil Statutes, is not authorized to create or participate in a retirementprogram for employees of such hospitalby contracting for the purchase of retirement insurance. Payroll deductions from the salary of its employeesare unauthorized for such a program. Yours very truly, WAGGONER CARR Attorney General
-2807-Hon. Franklin L. Smith, page 

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By:
JPC:sj
APPROVED: OPINION COMMITTEE W. V. Geppert, Chairmar John Reeves Paul Phy James Strock Milton Richardson APPROVED FOR THE ATTORNEY GENERAL BY: T. B. Wright

-2808-