Could Louisiana's health department change a local human services district's financing without its consent?

Plain-English summary

The Capital Area Human Services District asked whether Louisiana's Department of Health and Hospitals (DHH) could change the means of financing within the district's annual appropriation without the district's consent. The Attorney General did not answer yes or no. In 2006, it said that question depended on the parties' memorandum of understanding (MOU) and involved facts its office did not determine.

The opinion explained why the MOU mattered. R.S. 46:2661 et seq. created the district to manage specified community-based health services; R.S. 46:2665 authorized agreements transferring functions and funds from DHH. R.S. 36:245 said that funds appropriated for transferred functions would move from the department to the district in accordance with their agreement. The AG quoted Section IX, Paragraph D of the MOU, which said budget revisions “may be made upon written consent between the LGE and the DHH” and, as appropriate, through the legislative budget committee's BA-7 process. It left application of that clause to the facts unresolved.

Currency note

This opinion was issued in 2006. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Did the AG say DHH needed district consent for every financing change?

No such broad holding appears in the opinion. The AG said whether DHH could make the change described in the request depended on the MOU and facts it could not determine.

What did the opinion say about budget revisions in the MOU?

It quoted Section IX, Paragraph D, which referred to written consent between the LGE and DHH and, when appropriate, the Joint Legislative Budget Committee's BA-7 process. The AG did not decide how that language applied to the disputed financing change.

Why did the agreement govern the transfer of funds?

The AG cited R.S. 46:2665 for agreements transferring district functions and funds, and R.S. 36:245 for transferring appropriated money in accordance with the agreement between DHH and the district.

Background and statutory framework

DHH and the Capital Area District had entered into an MOU for community-based public health, mental health, developmental disability, and substance-abuse services. The district's executive director asked if DHH could change financing within an annual appropriation on its own. The opinion described the statutory framework and the MOU's budget-revision clause, then expressly declined the factual determination needed to resolve the request.

Citations

• R.S. 46:2661 et seq. (district creation).
• R.S. 46:2665 (agreements transferring functions and funds).
• R.S. 36:245 (appropriated funds transferred under the agreement).
• MOU Section IX, Paragraph D (budget revision language quoted in the opinion).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/05-0318

Original opinion text

April 11, 2006
OPINION NUMBER 05-0318
3 Appropriations
107-A Special Districts
90-A-1 Public Funds and Contracts
R.S. 46:2661 et seq.
R.S. 46:2665
R.S. 36:245
Ms. Jan Kasofsky, Executive Director
Capital Human Services District Summary: MOU between DHH and the District authorizes District to direct operation and management of community- 4615 Government Street, Bldg. 2 based public health services and governs transfer of functions
Baton Rouge, LA 70806 and funds relative to those services. Questions of fact
regarding DHH’s ability to change the means of financing within District’s annual appropriation are governed by provisions of the
Dear Ms. Kasofsky: MOU.

You have requested an Attorney General’s opinion as to whether the Department of Health and Hospitals (“DHH”) can authorize changes in the means of financing within the Capital Area Human Services District’s (“Capital Area District”) annual appropriation without the District’s consent. We refer you to the following legal provisions.

R.S. 46:2661 et seq. created the Capital Area District to direct the operation and management of community-based public health programs in five parishes. R.S. 46:2665 authorized the transfer of the functions and funds for the operation of these programs from DHH to the Capital Area District, and provides, in pertinent part, as follows:

A. The secretary of the department and the board are hereby authorized to enter into all agreements necessary to transfer the functions and funds relative to the operation of community-based public health, mental health, developmental disabilities, and substance abuse services for the parishes.

R.S. 36:245 outlines DHH’s powers and duties and provides, in pertinent part:

F(2) Funds appropriated by the legislature for the costs of providing those functions and services transferred from the department to the district shall be included in the department budget and shall be transferred from the department to the district in accordance with the agreement between the secretary of the department and the district. The secretary shall provide for the inclusion of such funds in the department budget request.

You indicated that DHH and the Capital Area District entered into an agreement to allow the Capital Area District to direct the operation and management of these services. This agreement, or MOU, governs the transfer of the functions and funds from DHH to

Page 2

Opinion Number 05-0318
Ms. Jan Kasofsky, Ph.D
Executive Director
CAPITAL HUMAN SERVICES DISTRICT
Page -2-

the District relative to the services provided by the District. Whether DHH can change the means of financing within the District’s annual appropriation without the District’s consent is a question of fact governed by the provisions of the MOU. Our office does not act as a finder of fact, and therefore, cannot render an opinion on that question.

To aid you in your determination, we refer you to Section IX of the MOU on reallocation of resources and staff and financial agreements. Paragraph D of Section IX provides, in pertinent part, as follows:

Revisions of the budget may be made upon written consent between the LGE and the DHH and, as appropriate, through the Joint Legislative Budget Committee’s (JLCB) BA-7 process.

We trust the above information will help you in your determination. If you have additional questions, please contact our office.

With kindest regards, I remain

Yours very truly,

CHARLES C. FOTI, JR.
Attorney General

BY: _________
DENISE BROU FITZGERALD
Assistant Attorney General

CCF, jr./DBF/dam

Page 3

Opinion Number 05-0318
Syllabus

3 Appropriations
107-A Special Districts
90-A-1 Public Funds and Contracts
R.S. 46:2661 et seq.
R.S. 46:2665
R.S. 36:245

Summary: MOU between DHH and the District authorizes District to direct operation and management of community-based public health services and governs transfer of functions and funds relative to those services. Questions of fact regarding DHH’s ability to change the means of financing within District’s annual appropriation are governed by provisions of the MOU.

Ms. Jan Kasofsky, Ph.D
Executive Director
CAPITAL HUMAN SERVICES DISTRICT
4615 Government Street, Bldg. 2
Baton Rouge, LA 70806

Date Received:

Date Released: April 11, 2006

Denise Brou Fitzgerald
Assistant Attorney General