Haggerty v. Poudre Health Services District

940 P.2d 1105, 1997 Colo. App. LEXIS 142, 1997 WL 312449
CourtColorado Court of Appeals
DecidedJune 12, 1997
DocketNo. 96CA0701
StatusPublished
Cited by1 cases

This text of 940 P.2d 1105 (Haggerty v. Poudre Health Services District) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haggerty v. Poudre Health Services District, 940 P.2d 1105, 1997 Colo. App. LEXIS 142, 1997 WL 312449 (Colo. Ct. App. 1997).

Opinion

Opinion by

Judge MARQUEZ.

Defendant, the Poudre Health Services District (District), f/k/a Poudre Valley Hospital District, appeals from the judgment of the trial court enjoining it from providing certain types of health-related services. We affirm.

The District was originally established by court decree in 1960 under the provisions of Colo.Sess.Laws 1959, ch. 179, which set forth the powers and procedures for the creation of a hospital district. A property tax for the benefit of the District was approved by the Board of Directors for the District in 1960 and continues to be assessed against and collected from property owners within the District. Over $2 million was collected in 1995.

From 1960 through April 1994, the District operated and maintained what is known as the Poudre Valley Hospital. In April 1994, the District created a nonprofit corporation, Poudre Valley Health Care, Inc., to which it leased the hospital facilities. Under the terms of the lease, the District received approximately $6.6 million in rent in 1995. Approximately $300,000 of this amount went to the District, and the remainder was used to pay the bonded indebtedness owed by the property owners in the District.

Since the “privatization” of the hospital, the District has not contributed any taxpayer funds towards the operation and maintenance of the hospital. Except for the lease arrangement, the district has not established, maintained, and operated a facility providing health or personal care services. Although the District continues to own the hospital and has several employees, none of the employees directly provides medical care or treatment to any individuals in the District.

In accordance with a new mission statement, the District identified various “obsta-[1107]*1107eles to health” in the community and attempted to address those issues through several health-related initiatives. These initiatives included: (1) raising the infant immunization rate in northern Larimer County, (2) increasing access to primary health care for lower income persons, and (3) preventing juvenile violence. The District sought to implement these initiatives by entering into contracts with various public and private entities that would provide the necessary facilities and services. District funds have been allocated for these programs.

In 1995, plaintiff, John J. Haggerty, III, as a qualified elector in the District, brought this action seeking injunctive relief against the District. Plaintiff asserted that the District was without authority under the Special District Act, § 32-1-101, et seq., C.R.S. (1996 Cum.Supp.), to implement or fund the initiatives.

Plaintiff moved for a temporary restraining order and a preliminary injunction against the District. The trial court conducted a hearing on plaintiffs motion which, by agreement of the parties, was converted into a trial on the merits on plaintiffs claim for injunctive relief. The court then issued a written order concluding that the District had exceeded its authority under the Special District Act. Although the court found that the objectives of the initiatives were laudable, it nevertheless enjoined the District from using District funds on any programs or purposes other than those permitted by the Special District Act.

The District contends that the trial court erred in determining that the Special District Act did not authorize it to fund the services it sought to offer through the initiatives. We disagree.

The District, as a political subdivision of the state, possesses only those powers that are expressly conferred upon it by the constitution and by statute and such incidental implied powers as are reasonably necessary to carry out the express powers so conferred. See Romer v. Fountain Sanitation District, 898 P.2d 37 (Colo.1995).

The Special District Act is a comprehensive legislative scheme setting forth the powers and procedures for the establishment and organization of a special district. See § 32-1-101, et seq., C.R.S (1996 Cum.Supp.); Upper Bear Creek Sanitation District v. Board of County Commissioners, 715 P.2d 799 (Colo.1986).

In this regard, the Special District Act in § 32-1-1001(1), C.R.S. (1996 Cum.Supp.) sets forth common powers applicable to any special district, including the power:

(d) to enter into contracts and agreements affecting the affairs of the special district;
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(m) to adopt, amend, and enforce bylaws and rules and regulations for carrying on the business, objects, and affairs of the board and of the special district;
(n) to have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted to special districts.

At the time of the trial court’s decision, the Special District Act provided that:

(1) In addition to the powers specified in section 32-1-1001, the board of any hospital district has the following powers for and on behalf of such district:
(a) To establish, maintain, and operate public hospitals, convalescent centers, nursing care facilities, intermediate care facilities, emergency facilities, community clinics, and other facilities providing health and personal care services and to organize, own, operate, control, direct, manage, contract for, or furnish ambulance service in said district; ...

Colo.Sess.Laws 1981, ch. 382, § 32-1-1003 at 1597; see also Colo.Sess.Laws 1981, ch. 382, § 32-1-103(9) at 1544 (similarly defining the term “hospital district”).

Subsequently, following the trial court’s decision but prior to filing of briefs in this appeal, this statute was amended by the General Assembly. See § 32-l-1003(l)(a), C.R.S. (1996 Cum.Supp.). The District, however, seeks review based only upon the statutory language in effect on the date of the trial court’s judgment.

[1108]*1108In its ruling, the trial court determined that the operative language for purposes of defining the District’s authority under the Special District Act was the General Assembly’s use of the words “care facilities” in § 32-1-1003. The court concluded that except for that portion of the statute concerning the provision of ambulance services, which required no facility — -just service — the statute required a hospital district to operate a facility. The court further concluded that the “award of district funds to other entities is not authorized or implied,” and that the District was acting beyond the scope of the powers granted under the statute.

The District first argues that the trial court erred by finding, in essence, that the term “health” ⅛ that section is synonymous with the word “medical.” Because, in our view, the key is not so much the distinction between these terms, but rather the requirement of the statute with regard to “facilities,” we conclude that the court properly interpreted the statute.

In interpreting a statute, our primary goal is to ascertain and give effect to the legislative purpose underlying a statutory enactment.

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Bluebook (online)
940 P.2d 1105, 1997 Colo. App. LEXIS 142, 1997 WL 312449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haggerty-v-poudre-health-services-district-coloctapp-1997.