Does a joint city-county health district have to buy its supplies through the county purchasing agent?

Texas AG Opinion JM-524: County Health District Buying

Plain-English summary

Galveston County and other local governments in the county joined together to create a public health district under a state law that lets cities and counties pool their health functions. Their cooperative agreement said the district's board would follow the purchasing statutes that apply to counties but would not have to use the county purchasing agent or county auditor. The county purchasing agent disagreed, arguing that a separate statute, article 1580, still required all of the district's purchases to run through his office. The Galveston County criminal district attorney asked the Attorney General who was right. Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1986/jm0524.pdf

The Attorney General sided with the district. Article 1580 requires, in counties of 74,000 or more people, that a county purchasing agent make all purchases for the county and its subdivisions, officers, and employees. But the health district was created under a different statute, article 4436b, the Local Public Health Reorganization Act, which lets a county and one or more cities set up a public health district and requires the district's members to prepare a written instrument governing its financial administration. The AG read that authority to contract about the district's finances as broad enough to let the members agree to buy supplies without the county purchasing agent. The district is an independent political subdivision with its own authority to run public health functions in the county, so it has the discretion to decide whether or not to use the county purchasing agent under article 1580. Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1986/jm0524.pdf

Currency note

This opinion was issued in 1986. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. The county purchasing statute (article 1580) has been recodified into the Local Government Code, and the Local Public Health Reorganization Act (article 4436b) has been recodified into the Health and Safety Code. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific article mentioned here.

Common questions

Must a joint city-county health district buy through the county purchasing agent?

Not necessarily. The AG concluded that a public health district organized under article 4436b is an independent political subdivision with discretion to decide whether to use the county purchasing agent under article 1580. Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1986/jm0524.pdf

Why doesn't article 1580 force the district's purchases through the county agent?

Because the district is a separate political subdivision created under article 4436b, which requires its members to prepare a written instrument governing the district's financial administration. The AG read that contracting authority to let the members agree to make purchases without the county purchasing agent. Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1986/jm0524.pdf

Who decides how the health district handles purchasing?

The district's members, through the written financial-administration instrument the Local Public Health Reorganization Act requires. The AG concluded the district has the discretion to determine whether to use the county purchasing agent. Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1986/jm0524.pdf

Background and statutory framework

Article 1580, V.T.C.S., provides that in counties with a population of 74,000 or more a board of the district judges and the county judge may appoint a county purchasing agent, and makes it that agent's duty to make all purchases of supplies, materials, and equipment for the county or any subdivision, officer, or employee, except purchases required by law to be made by competitive bid. Subsection (c) makes it unlawful for anyone other than that agent to purchase such items for the county or its subdivisions, and bars the county auditor from drawing, and the treasurer from honoring, warrants for purchases not made by the agent or by competitive bid.

Article 4436b, the Local Public Health Reorganization Act, was enacted in 1983 by the Sixty-eighth Legislature to repeal sixteen existing statutes on city and county health officers and to establish intergovernmental health departments (§ 1.02). Article IV of the Act allows a county and one or more incorporated municipalities to establish a public health district (§§ 4.01-4.09), and requires the members to prepare a written instrument that governs the district's financial administration (§ 4.03(1)). The AG concluded that this authority to contract about the district's financial administration permits the members to agree to make purchases without the services of the county purchasing agent, so the district (an independent political subdivision authorized to perform public health functions in Galveston County) has the discretion to decide whether to use the county purchasing agent under article 1580.

Citations and references

The opinion cited the following authorities. Source: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1986/jm0524.pdf

Statutory provisions:

• V.T.C.S. art. 1580 (county purchasing agent), § 1(a), (b), (c)
• V.T.C.S. art. 4436b (Local Public Health Reorganization Act), §§ 1.02, 4.01-4.09, 4.03(1)

The opinion also referred to the Bill Analysis to S.B. No. 109 (the Local Public Health Reorganization Act), prepared for the Committee on Public Health.

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/jim-mattox/jm-0524
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1986/jm0524.pdf

Original opinion text

Best-effort transcription from a scanned PDF text layer. Minor OCR errors may remain; the linked PDF is authoritative.

The Attorney General of Texas

July 17, 1986

JIM MATTOX
Attorney General

Honorable Michael J. Guarino
Criminal District Attorney
405 County Courthouse
Galveston, Texas 77550

Opinion No. JM-524

Re: Whether purchases for a county health district must be made by the county purchasing agent

Dear Mr. Guarino:

You have asked whether the Galveston County Health District is required to comply with article 1580, V.T.C.S., in purchasing materials and supplies for the health district.

You inform us that Galveston County entered into an agreement with other local political entities within the county to organize a health district pursuant to article 4436b, V.T.C.S. The cooperative agreement among its members provides as follows:

In the purchase of all services, equipment and materials, the Board shall adhere to the applicable statute(s) which governs counties for the purchase of services, equipment and materials, although the Board is not required to use the services of the County Purchasing Agent or County Auditor.

Article 1580, V.T.C.S., provides as follows:

Section 1. (a) In all counties of this state having a population of seventy-four thousand (74,000) or more inhabitants according to the last preceding Federal Census, a majority of a Board composed of the judges of the District Courts and the County Judge of such county, may appoint a suitable person who shall act as the county purchasing agent for such county, who shall hold office, unless removed by said judges, for a period of two (2) years, or until his successor is appointed and qualified, who shall execute a bond in the sum of Five Thousand Dollars ($5,000), payable to said county, for the faithful performance of his duties.

(b) It shall be the duty of such agent to make all purchases for such county of all supplies, materials and equipment required or used by such county or by a subdivision, officer, or employee thereof, excepting such purchases as may by law be required to be made by competitive bid, and to contract for all repairs to property used by such county, its subdivisions, officers, and employees, except such as by law are required to be contracted for by competitive bid. All purchases made by such agent shall be paid for by warrants drawn by the county auditor on the county treasurer of such county as in the manner now provided by law.

(c) It shall be unlawful for any person, firm or corporation, other than such purchasing agent, to purchase any supplies, materials and equipment for, or to contract for any repairs to property used by, such county or subdivision, officer, or employee thereof, and no warrant shall be drawn by the county auditor or honored by the county treasurer of such county for any purchases except by such agent and those made by competitive bid as now provided by law; provided that the county purchasing agent may lawfully cooperate with the purchasing agent for any incorporated city or cities in such county to purchase such items in volume as may be necessary and the County Treasurer shall honor any warrant drawn by the county auditor to reimburse any city purchasing agent making such purchase for the county. (Emphasis added).

The Galveston County purchasing agent maintains that article 1580 requires that all purchases of supplies and materials for the health district should also be made through his office. We disagree with this assertion.

Article 4436b, V.T.C.S., the Local Public Health Reorganization Act, was enacted in 1983 by the Sixty-eighth Legislature to repeal sixteen existing statutes relating to city and county health officers, and to establish intergovernmental health departments. See V.T.C.S. art. 4436b, § 1.02; see also Bill Analysis to S.B. No. 109, prepared for Committee on Public Health, filed in Bill File to S.B. No. 109, Legislative Reference Library. Art. IV of the Local Public Health Reorganization Act allows a county and one or more incorporated municipalities in the county to establish a public health district. Art. 4436b, §§ 4.01-4.09. The members of the district must prepare a written instrument that governs its financial administration. Art. 4436b, § 4.03(1).

We think that the authority of the members to contract in regard to the financial administration of the district permits them to agree to make purchases without the services of the county purchasing agent.

SUMMARY

The Galveston County Health District is an independent political subdivision of the state, and is specifically authorized by article 4436b, V.T.C.S., to perform public health functions within Galveston County. It has the discretion to determine whether to utilize the services of the county purchasing agent in accordance with article 1580, V.T.C.S.

JIM MATTOX
Attorney General of Texas

JACK HIGHTOWER
First Assistant Attorney General

MARY KELLER
Executive Assistant Attorney General

RICK GILPIN
Chairman, Opinion Committee

Prepared by Tony Guillory
Assistant Attorney General