THE ATTORNEY GENERAL 

Ql? a‘EXAS 

Honorable Franklin L. Smith Opinion No. C-501 

County Attorney 

Nueces County Re : Whether a hospital, 

Corpus Christi, Texas o erating under Article 

4f7941, V.C.S. may create 

and participate in a 

retirement program for 

the employees of the 

hospital by 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 hospital by contracting 

for the purchase of retirement insurance? 

"(2) May such hospital make payroll deductions 

from the salary of its employees participating in 

such program?" 

In the absence of either constitutional or 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 retirement program for its 

employees by contracting for the purchase of retirement 

insurance. 

No such authorization is granted'by Section 62b, 

Article XVI of the Texas Constitution nor by Article 6243h, 

Vernon's Civil Statutes. Section 62b, Article XVI, Texas 

Constitution, provides for retirement benefits for county 

employees when authorized by 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 establishment of a retirement program for city 

em lo ees and the employees of certain hospital districts. 

T7E%3i= erof these provisions authorize the creation of or 

participation in a retirement program for employees of a 

hospital established and operated pursuant to the provisions 

-2806- 
Hon. Franklin L. Smith, page 2 (C-581) 

of Article 44941, Vernon's Civil Statutes. 

Similarly, neither Articles 3.50 nor 3.51, Insurance 

Code, authorize the governing board of such hospital to establish 

or participate in a retirement program for its employees by 

purchasing retirement insurance. Article 3.50, Insurance Code, 

is restricted to the purchase of "group life insurance", wholly 

paid for by the employees, while Article 3.51, Insurance Code, 

is limited to the purchase of "group health, accident, 

accidental death and dismemberment, and hospital, surgical, 

and/or medical expense insurance" paid for, in part, by 

contributions from deduction of salaries of the employees when 

authorized in writing by such employees. 

Our research has directed us to no statutes, enacted 

prior or subsequent to Article 44941, Vernon's Civil Statutes, 

which authorize the governing board of such hospital to create 

or participate in a retirement program for its employees. 

The making of payroll deductions from the employees' 

salaries for the purpose of purchasing or making premium payments 

upon retirement insurance in the absence of express constitutional 

or legislative authorization 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 situation presented. 

SUMMARY 

In the absence of either constitutional 

or legislative authorization, the Board of 

Managers of Memorial Medical Center of Nueces 

county, created under Article 44941, Vernon's 

Civil Statutes, is not authorized to create 

or participate in a retirement program for 

employees of such hospital by contracting 

for the purchase of retirement insurance. 

Payroll deductions from the salary of its 

employees are unauthorized for such a 

program. 

Yours very truly, 

WAGGONER CARR 

Attorney General 

-2807- 
Hon. Franklin L. Smith, page 3 (C-581) 

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-