Case Information
*1 i
The Attorney General of Texas Dexmber 23, 1985
JIM MAlTOX
Attorney General Telex 9101874.1367 Telecopier 512f475-0286 Court Building Supreme [51214752501] Austin, TX. 78711. 2548 P. 0. BOX 12548 Honorable Randall L. Sherrod Randall County Courthouse Canyon, Texas 79015 Criminal District Attorney with other governmental entities Re: Whether a county may join Opinion No. JM-,406 in a pool for the operating of a self-funding health plan Dear Mr. Sherrod: 714 Jackson, Suite 700 Dallas, TX. 7520245M 2141742.S944
You inform us that the majority of the Randall County Commis-
sioners Court and ,some members of the governing body of the city of Amarillo are interested in forming a self-funded health plan pool, 4824 Alberta Ave., Suite 160 consisting of Anarillo and Randall County employees and their El Paso, TX. 799052793 9151533-34&( dependents, to provide health, medical, and hospital insurance to all
members of this cLass and their dependents. You also inform us that [71312235888] 1001 Texas, Suite 700 Houston, TX. 77002-3111 may also become interested in contracting with the other members of the governing bodies of other entities such as nearby Potter County such a pool under the Interlocal Cooperation Act. The pool would be formed by contract among parties. 806 Broadway, Suite 312 In that regard, you ask: Lubbock, TX. 794013479 SCW747-5238 Does ,the Randall County Commissioners Court have the power to join the city of Amarillo or any 4309 N. Tenth. Suite S other nr:srby state governmental entity in forming McAllen, TX. 78501.1885 a pool f'or a self-funding health and hospitalira- 512lSS2.4547 tion p:.e!n in the nature of self-insurance,
receiving voluntary premiums from employees and 200 Main Plaza, Suite 400 elected officials of those entities to cover San Antonio, TX. 782052797 themselves and their dependents? 512f2284191
A county commissioners court has only the powers conferred either expressly or by necessary implication by the constitution and statutes An Equal Oppatunityl Affirmative Action Employer of this state. See: Tex. Const. art. V, 918; Canales v. Laughlin, 214
S.W.Zd 451, 453 TKk. 1948). The limited authority granted to local political subdivisions under article 3.51-2 of the Insurance Code does not encompass y0c.r particular arrangement; such authority must be found elsewhere. Id. This office has held on numerous occasions that the Interlocal CofyGation Act, article 4413(32c), in sections 4(a) and 4(b), V.T.C.S., authorizes a county to contract with other counties or local political subdivisions for the performance of *2 Honorable Randall L. Sherrod - Page 2 (J&4,06)
governmental services and :iunctions , as defined in section 3(Z), which all parties to the contra:t are legally authorized to perform. See Attorney General Opinions NW-347 (1981); E-392 (1974); E-28 (197x ~-1278 (1972). Therefore, the Interlocal Cooperation Act authorizes Randall County to contract with other local entities only if there is independent statutory or :onstitutional authority for the county to provide a self-funded insurance plan for its department heads, employees, and their dependents.
In Attorney General Opinion MW-473 (1982). this office further held:
There is statutory authority for a comissioners court to adopt an insurance plan to provide hospitalization ::nsurance for county officials and employees. V.l'.C.S. art. 2372h-2. Further authority is allw found in the Texas Insurance Code in articles 3.51 and 3.51-2. However, these statutes do not authorize the implementation of a plan to provide wlf-insurance or to provide group insurance that rculd be in contravention of the Texas Insurance Code.
Id. at 1658. Article 2372h, section 2, V.T.C.S., suthorizes a colnmissioners court of a county having a population of 500,000 or more to adopt rules and regulat,ions to establish a hospital and insurance fund for county employees 11s a part of their employment contract. You inform us that Randall County currently has a population of approximately 76,000 inhab:.t:ants. Since there is a particular statute authorizing a plan by certain counties, but no statute regarding Randall County, we conclude that there is no authority for Randall County to join a self-fund:.ng health plan for its employees.
Article 3.51-2 of tha Insurance Code authorizes any county or political subdivision of s county to procure certain group insurance policies covering officers, employees, and their dependents. However, the provision does not pruvide for the self-funded health plan you describe in this request. Article 3.51-2, part (a) of the Insurance Code only authorizes the county to "procure contracts" or purchase insurance from an insurwce company as opposed to specifically alloving the entities to rielf-fund a health insurance plan as the legislature has provided :.n another statute amended during the same session. See Ins. Code art. 3.50-3, 14(d) (governing boards of colleges an~niversities 'nay provide self-funded insurance plans for employees).
We can find no other independent statutory basis authorizing the Randall County Commissione:rs Court to provide a self-funded insurance plan for its employees, deIla.rtment heads, and their dependents. It is *3 Eonorable Randall L. SherrDd - Page 3 ,(~&486.)
our opinion that the county may not contract with the entities described above under the Interlocal Cooperation Act.
SUMMARY The Randall County Commissioners Court is not authorized to contract with nearby state govern- mental entities to form a pool for a self-funding health and hospit.slisation plan for its employees, department heads, and their dependents.
JIM MATTOX
Attorney General of Texas JACK HIGHTOWKR
First Assistant Attorney General
MARY KELLER
Executive Assistant Attorney General
ROBERT GRAY
Special Assistant Attorney 'General
RICK GILPIN
Chairman, Opinion Committee
Prepared by Tony Guillory
Assistant Attorney General