Oregon Advisory Opinions October 04, 1946: OAG 46-178 (October 4, 1946)

OAG 46-178.

County courts are authorizd to erect, maintain and operate hospitals for the poor and to provide taxes for the erection, maintenance and operation thereof pursuant to chapter 453, Oregon Laws 1945.

Dear Sir: Under date of September 30, 1946, you state that Tillamook County operates and maintains a county hospital under the provisions of § 86-601 and § 86-602, O. C. L. A.; that the present hospital is inadequate to serve the needs of the county and the county court has proposed to submit to the voters of the county the bonding of a sum approximating $400,000 or possibly more to erect a new county hospital; that while the sections referred to authorize the county court to erect a hospital, there does not appear to be any statutes directly relating to the procedure in such matters.

You request my opinion as to whether or not Tillamook County court would have a right to submit to the voters of the county the proposition outlined, having in mind that to do so would create an indebtedness and require the issuance of bonds, inasmuch as there are insufficient funds available for the undertaking.

Chapter 31, Oregon Laws 1911, is an act authorizing any county of the state to build a hospital where paupers and pay patients may be cared for. It is codified as §§ 86-601 and 86-602, O. C. L. A., which read as follows:

"§ 86-601. The county court consisting of the county judge and the commissioners in any county in the state of Oregon is hereby authorized to erect, maintain and operate a hospital where the poor of the county may be treated and cared for.

"§ 86-602. In addition to caring for the paupers of the county at such hospital, the county court consisting of the county judge and the commissioners is authorized to admit such persons as may be financially able to

pay for hospital care and treatment, the income derived from the pay patients to be used for the maintenance and operation of the hospital, and any surplus there may be after maintaining and operating the hospital, shall be paid into the general fund of the county."

Section 93-302, O. C. L. A., as amended by chapter 399, Oregon Laws 1945, provides, among other things:

"The county court has the authority and powers pertaining to county commissioners to transact county business that is:

"1. To provide for the erection and repairing of courthouses, jails and other necessary public buildings for the use of the county;

"7. To estimate and determine the amount of revenue to be raised for county purposes, and to levy the rate necessary therefor, together with the rate required by law for any other purpose and cause the same to be placed in the hands of the proper office for collection;

"9. To have the general care and management of the county property, funds and business, where the law does not otherwise expressly provide;

* * *"

Section 126-201, O. C. L. A., as amended by chapter 418, Oregon Laws 1941, reads as follows:

The county court or board of county commissioners of any county in the state of Oregon hereby is authorized and empowered to expend for relief of needy persons, old-age assistance, aid to dependent children, aid for homeless, neglected or abused children, foundlings or orphans, wayward children and children in need of correctional institutional care or aid to the needy blind the whole or any part of any unexpended balance of any funds budgeted by said county for any purpose whatsoever.

"Any funds expended by any county court or board of county commissioners of the state of Oregon for aid to any child or person of the classes herein mentioned shall not be deducted from any amount paid by the state of Oregon to any institution or agency for aid to or on behalf of any such child or person."

Chapter 453, Oregon Laws 1945, is an act authorizing counties, municipal corporations, quasi-municipal corporations and civil or political subdivisions that levy ad valorem taxes, to provide funds by taxation or otherwise, either without or within the limitation imposed by article XI, section 11 of the constitution, for financing of public projects, property, and equipment, and of repairs and improvements thereto and of maintenance and replacement thereof. Sections 1, 2 and 3 read as follows:

"Section 1. For the purposes of this act counties, municipal corporations, quasi-municipal corporations and civil or political corporations or subdivisions shall be such only as are empowered by law to levy ad valorem taxes, and shall be referred to and designated herein, in the singular as 'subdivision,' and in the plural as 'subdivisions.'

"Section 2. That upon approval of a majority of the electors of a subdivision voting at any election regularly called and held therein for the purpose or purposes hereinafter named, the said subdivision may levy taxes serially outside the limitation imposed by article XI, section 11 of the constitution of the state of Oregon, over such period of time as is authorized by the electors but in any event for not more than 10 years. The amounts of the budget items or millages representing said tax levies shall be uniform, or substantially so, throughout the period during which the said taxes are levied.

"Section 3. The said funds may be so obtained for the purpose of financing the cost of any project, property or equipment which a subdivision has lawful power to construct or to acquire, and of repairs and improvements thereto and of maintenance and replacement thereof."

The foregoing authorities would permit of creation of funds for the purposes mentioned by the levy of taxes, but the issuance of bonds for such a purpose is not within the purposes excepted by article XI, § 10 of the constitution from the debt limitation of $5,000 imposed by said article and section. See, also, Opinions of the Attorney General, 1938-1940, page 101.