The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)


STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 5448

February 13, 1979

COUNTIES:

Joint operation of county hospital with the county of another state

HOSPITALS:

Joint operation of county hospitals by Michigan counties and counties of another state

CONSTITUTION OF MICHIGAN:

Art 3, Sec. 5 (intergovernmental agreements)

Menominee County, Michigan may enter into an agreement with Marinette County, Wisconsin for the joint operation of their respective county hospitals but may not form a non-profit corporation for such purpose unless the Legislature enacts a statute authorizing such action.

Honorable Jack L. Gingrass

State Representative

The Capitol

Lansing, Michigan 48909

You have asked my opinion on a matter which may be stated as follows:

'May Menominee County, Michigan form a non-profit corporation with Marinette County, Wisconsin for the purpose of jointly operating, but not owning, the county hospital of Menominee County and the county hospital of Marinette County under the authority of 1951 PA 35, MCLA 124.1 et seq; MSA 5.4081 et seq, or any other statutory or common law authority?'

Const 1963, art 3, Sec. 5 provides:

'Subject to provisions of general law, this state or any political subdivision thereof, any governmental authority or any combination thereof may enter into agreements for the performance, financing or execution of their respective functions with any one or more of the other states, the United States, the Dominion of Canada, or any political subdivision thereof unless otherwise provided in this constitution. . . .'

[Emphasis added]

The phrase, 'Subject to provisions of general law', indicated that the Michigan Constitution authorizes interstate agreements upon the promulgation of legislative authorization.

The Legislature has enacted 1951 PA 35, MCLA 124.1 et seq; MSA 5.4081 et seq, to provide that local units of government may enter into agreements with each other for the joint operation of services. However, this legislative authorization applies only to governmental entities within the state.

It will be noted, however, that in addition to 1951 PA 35, supra, the Legislature has also enacted parallel legislation to provide for interlocal public agency agreements. This subsequent statute is the Urban Cooperation Act of 1967, 1967 ex sess PA 7, MCLA 124.501 et seq; MSA 5.4088(1) et seq.

1967 ex sess PA 7, supra, Sec. 2(c) defines a 'public agency' to mean:

'. . . a political subdivision of this state or of any state of the United States or the Dominion of Canada, including, but not limited to, state government, a county, city, village, township, charter township, school district, single and multipurpose special district, single and multipurpose public authority; provincial government, metropolitan government, borough, and any other political subdivision of the Dominion of Canada; any agency of the United States government; and any similar entity of any other state of the United States and of the Dominion of Canada.'

1967 ex sess PA 7, supra, Sec. 4 further provides:

'A public agency of this state may exercise jointly with any other public agency of the state or with a public agency of any other state of the United States or with a public agency of the Dominion of Canada or with any public agency of the United States government, any power, privilege or authority which such agencies share in common and which each might exercise separately.'

It is, therefore, my opinion that Menominee County, Michigan may enter into an agreement with Marinette County, Wisconsin for the joint operation of their respective county hospitals but may not form a non-profit corporation for this purpose unless the Legislature enacts a statute authorizing such action.

Frank J. Kelley

Attorney General