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2000 Louisiana Attorney General Reports and Opinions 1 (2000)

handle is hein.sag/sagla0025 and id is 1 raw text is: January 31, 2000 OPINION NUMBER 00-02 53 Huspitals 71-1-B Municipalities-Home Rule Chariti 90-A-2 Public Funds-Loan, pledge or grants Article VI. Section 4 of the 1974 Louisiana Constitution Mr. Grover C. Austin, CPA Article VII, Sections 14 and 15 of the 1974 Louisiana Constitution First Assistant Legislative Auditor H.S. 30:14 10.60 1600 North Third Street H.S. 46:1071-1076. 1077 Post Office Box 94397 R.s. 461101- 1112, 11:31, 1151 Baton Rouge. LA 70804-9397 Answers several questions concerning the autlority of a municipally- ownoed hospilal to imploment a medical scholarship program. Dear Mr. Austin: You have requested an opinion of the Attorney General relative to the legal propriety of a medical scholarship program (Program) initiated by Homer Memorial Hospital (Hospital). The Hospital is owned by the Town of Homer (Town) and is administered by a Board of Directors (Board) appointed by the governing authority of the Town. The Town operates under a Home Rule Charter enacted by Act No. 36 of 1876, and is governed by a Mayor and Board of Selectmen. Attached to your request are copies of Town Ordinance No. 563 (Ordinance), Minutes of the Executive Committee of the Hospital dated July 8, 1991 (Minutes) and an amended medical scholarship agreement dated June 23, 1995, entered into between the Hospital and a medical student (Agreement). The Ordinance creates the Board and delegates the administration of the Hospital thereto. The Minutes reflect a motion which passed to authorize the Hospital to designate $5,000 per month to fund a maximum of five medical student scholarships. Representatives of the Hospital and the Town have advised us that funding for these scholarships was derived from tax revenues transferred to the Hospital by a local hospital service district. This funding ceased and the Program was subsequently Suspended several years ago. Several of the previously executed agreements continue to be in full force and effect. You initially ask whether the municipally-owned Hospital has the authority to establish and administer the Program.

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