The Attorney General of Texas March 8, 1983 JIM MATTOX Attorney General Honorable Roy Blake, Chairman Opinion No. JM-2 Supreme Court Building Senate Committee on Administration P. 0. BOX 12546 Texas State Senate Re: Whether the Corrigan Austin. TX. 76711.2546 5121475-2501 G-27-J, State Capitol,Building Hospital District may build Telex glo,674-l367 Austin, Texas 78711 and operate a nursing home to Telecopier 5121475-0266 provide geriatric care Dear Senator Blake: 1607 Main St., Suite 1400 Dallas. TX. 75201-4709 2141742.6944 You have requested our opinion regarding "the legality of the Corrigan Hospital District building and operating a nursing home facility in the city of Corrigan." You have informed us that the 4624 Alberta Ave., Suite 160 district wants to build a new facility to provide geriatric care in El Paso, TX. 799052793 9151533-3464 North Polk County. The Corrigan Hospital District was created by Senate Bill No. 1220 Dallas Ave.. Suite 202 965, enacted in 1971. Acts 1971, 62nd Leg., ch. 396, at 1420. See Houston. TX. 77002.6966 V.T.C.S. art. 4494q. Section 2 of this bill provides that, upon 7131650-0666 creation of the district, it "shall assume full responsibility for providing medical and hospital care for the needy residing within the 606 Broadway. Suite 312 district." Section 3(a) provides in relevant part: L”bbOCk. TX. 79401-3479 6061747.5236 The Commissioners Court of the county shall have the power and authority, and it shall be its 4309 N. Tenth. Suite B duty, to levy on all property within the district McAlle”. TX. 76501-1665 subject to said hospital district taxation, for 5121662~4547 the benefit of the district at the same time taxes are levied for county purposes, using the county 200 Main Plaza. Suite 400 values and the county tax roll, a tax of not to San Antonio. TX. 76205.2797 exceed 75 cents on the $100 valuation of all 5121225-4191 taxable property within the hospital district, for the purpose of: A” Equal opportunity, Affirmative Action Employer . . * . (3) when requested by the board of hospital managers of the hospital district and approved by the Commissioners Court, for the purpose of making further improvements and additions to the hospital system, and for the acquisition of necessary sites therefor, by purchase. lease, or condemnation. P. 4 Honorable Roy Blake - Page 2 (JM-2) Section 4(a) provides in part: The Commissioners Court shall have the power and authorjty to issue and sell as the obligations of such hospital district, bonds for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping same, for hospital purposes and for any or all of such purposes. The foregoing provisions of sections 3(a) and 4(a) are the only provisions in the bill which authorize construction of any facility. The next question is whether these provisions do authorize the building of a nursing home facility. We answer in the affirmative. Section 3(a) permits tax revenue to be expended for "further improvements and additions to the hospital system," and we believe that a nursing home facility which provides geriatric care falls in this category. In this context, we note that section 5(a) of Senate Bill No. 965 specifically lists "geriatric care" as a component of "hospital care," which indicates that a nursing home which provides geriatric care may properly be deemed a part of the "hospital systen? as that term is used in the bill. Section 4(a) authorizes bond proceeds to be used for the "construction . . . of buildings and improvements . . . for hospital purposes," and we also believe that a nursing home facility is in this category. We therefore conclude that a nursing home facility which provides geriatric care may be built per the terms of sections 3(a) and 4(a). Once such a facility is built, it will be part of the "hospital system" which the board of hospital managers of the district is to manage, control, and administer. Sec. 6(a). SUMMARY Sections 3(a) and 4(a) of Senate Bill No. 965, Acts 1971, Sixty-second Legislature, chapter 396, at 1420, authorize the building of a nursing home facility which provides geriatric care in the city of Corrigan. Very truly you i, , - L i ,++--I /?h 7 JIM MATTOX Attorney General of Texas TOM GREEN First Assistant Attorney General P. 5 ,. . Honorable Roy Blake - Page 3 (JM-2) DAVID R. RICHARDS Executive Assistant Attorney General Prepared by Jon Bible Assistant Attorney General APPROVED: OPINION COMMITTEE Susan L. Garrison, Chairman Jon Bible Rick Gilpin Jim Moellinger Mike Patterson P. 6