Maintenance of "tuberculosis dispensaries" by local health boards of munici palities where such dispensaries are supported by public moneys or trust funds - not legal without license from State Board of Charities. STATE OF NEW YORK, ATTORNEY-GENERAL'S OFFICE, State Board of Charities, Albany, N. Y.: GENTLEMEN.—I acknowledge the letter of April 20 from your secretary to which the following resolution adopted at the annual meeting of your board was certified to me: Resolved, That the question of the right of maintenance of tuberculosis dispensaries by towns or other municipalities, with a license from the State Board of Charities, be submitted to the Attorney-General for his opinion." Section 290 of the State Charities Law defines a dispensary as follows: "For the purposes of this article, a dispensary is declared to be any person, corporation, institution, association or agent, whose purpose it is. either independently or in connection with any other purpose, to furnish, at any place or places, to persons nonresident therein, either gratuitously or for a compensation determined without reference to the value of the thing furnished, medical or surgical advice or treatment, medicine or apparatus, provided, however, that the moneys used by and for the purposes of said dispensary shall be derived wholly or in part from trust funds, public moneys or sources other than the individuals constituting said dispensary and the persons actually engaged in the distribution of charities of said dispensary." It is stated in the letter of your secretary that certain so-called "tubercu losis dispensaries" are being maintained by local health boards in Cohoes, Rome. Oneida, New York city and other places, without licenses from your board to conduct such dispensaries, and the resolution in question was submitted to me for the purpose of determining whether or not such action is legal. I assume from your question that the dispensaries mentioned are supported in whole or in part from trust funds, public moneys or sources other than the individuals constituting said dispensaries. This being so, it is clear, in my judgment, that such dispensaries do come within the definition above quoted. Section 291 of the same law provides in part as follows: "A dispensary shall not enter upon the execution, or continue the prosecution of its purpose unless licensed by the state board of charities, as provided in this article." Section 294 provides in part as follows: nor * * shall any person, corporation, institution, society, association, or agent thereof, except a duly licensed dispensary, display or cause to be displayed a sign or other thing which could directly or indirectly or by suggestion indicate the existence of the equivalent, in purpose and effect, of a dispensary." A violation of any of the provisions of this article is made a misdemeanor. It seems to me, from a careful examination of the foregoing provisions of law, that the question certified to me must be answered by saying that no municipalities have the right to maintain tuberculosis dispensaries which come within the definition above quoted, without obtaining a license from your board, and that they are subject to your visitation and inspection and to the rules and regulations prescribed by the other sections of this same law. Very truly yours, EDWARD R. O'MALLEY, § 291. Licensing of dispensaries by the state board of charities. A license may be issued by the state board of charities to a dispensary, as provided in this section. An application in writing for such license shall be made to such board in the form and manner prescribed by it, which shall be uniform for all schools of medicine. There shall be attached to such application a statement, verified by the oath of the applicant, containing such facts as the board may require. If, in the judgment of such board, the statement filed, and other evidence submitted in relation to such application, indicate that the operations of said dispensary will be for the public benefit, a license shall be issued to the dispensary applying therefor. The form of such license shall be prescribed by the board. A dispensary shall not enter upon the execution, or continue the prosecution of its purpose unless licensed by the state board of charities, as provided in this article. A license shall be issued, on application, to all dispensaries legally incorporated, and to unincorporated dispensaries conducted in connection with incorporated institutions on April eighteenth, eighteen hundred and ninety-nine. Dispensaries and outpatient departments of incorporated hospitals maintained by trust funds and endowments must obtain a license. Subject to inspection by, and rules of, the State Board of Charities. STATE OF NEW YORK, ATTORNEY-GENERAL'S OFFICE, Hon. ROBERT W. HILL, Secretary State Board of Charities, Albany, N. Y.: Dear Sir. I have your favor of the 4th instant, asking the following questions: "A number of hospital corporations in the State of New York are maintained wholly by trust funds, endowments and other moneys received from private sources. The same is true of some dispensaries. 66 'In certain of these hospitals the outpatient or dispensary department has not applied for or received a license from the State Board of Charities, although clearly entitled thereto under the terms of section 20, as quoted. The work done is distinctively a charitable work and of great service to the community. "Will you please inform the State Board of Charities whether such dispensaries and outpatient departments of incorporated hospitals maintained wholly by trust funds, endowments, or other private benefactions, are subject to the visitation and inspection of the State Board of Charities, and its rules and regulations?" Replying thereto would say that Section 19 of the State Charities Law, chapter 546 of the Laws of 1896, as amended, defines what is a dispensary within the meaning of the State Charities Law. It reads as follows: "Section 19. What is a dispensary?-For the purposes of this act, a dispensary is declared to be any person, corporation, institution, association, or agent, whose purpose it is, either independently or in connection with any other purpose to furnish at any place or places, to persons nonresident therein, either gratuitously or for a compensation determined without reference to the value of the thing furnished medical or surgical advice or treatment, medicine or apparatus, provided, however, that the moneys used by and for the purpose of said dispensary shall be derived wholly or in part from trust funds, public moneys, or sources other than the individuals constituting said dispensary, and the persons actually engaged in the distribution of charities of said dispensary." Section 20 of the same statute provides for the licensing of dispensaries by the State Board of Charities. It reads in part as follows: 66 # * * A dispensary shall not enter upon the execution or con. tinue the prosecution of its purpose unless licensed by the State Board of Charities, as provided in this act. A license shall be issued, on application, to all dispensaries legally incorporated, and to unincorporated dispensaries conducted in connection with incorporated institu tions at the time of the passage of this act." Section 21 of the same act provides: "Section 21. Rules and Regulations.-The State Board of Charities shall make rules and regulations, and alter or amend the same, in accordance with which all dispensaries shall furnish and applicants obtain medical or surgical relief, advice or treatment, medicine or apparatus. But such rules and regulations shall not in any case specify the particular school of medicine in accordance with which a dispensary shall manage or conduct its work, or determine the kind of medical or surgical treatment to be provided by any dispensary." From the foregoing provisions it is clear to me that it is the duty of the State Board of Charities to make rules and regulations for all dispensaries within the State which are maintained wholly, or in part, from trust funds, public moneys or sources other than the individuals constituting said dispensary and the persons actually engaged in the distribution of the charities of said dispensary. Section 22 of the act provides, in part: "The State Board of Charities or any of its members may, at any and all times, visit and inspect licensed dispensaries. The statute limits the visitation and inspection of the State Board of Charities or its members to licensed dispensaries, and does not contemplate a visitation or inspection by the State Board of Charities to unlicensed dispensaries. The statute requires that all dispensaries shall be licensed and it makes a violation of the provisions of the act a misdemeanor. From this it is apparent that the Legislature did not intend that dispensaries (as defined in the act) should operate without a license after the passage of the act, and having obtained a license the dispensary imme diately becomes subject to the visitation and inspection of the State Board of Charities. Yours truly, WILLIAM S. JACKSON, § 292. Rules and regulations. The state board of charities shall make rules and regulations, and alter or amend the same, in accordance with which all dispensaries shall furnish and applicants obtain medical or surgical relief, advice or treatment, medicine or apparatus. But such rules and regulations shall not in any case specify the particular school of medicine in accordance with which a dispensary shall manage or conduct its work or determine the kind of medical or surgical treatment to be provided by any dispensary. § 293. Revocation of licenses. The state board of charities or any of its members may at any and all times visit and inspect licensed dispensaries. They may examine all matters in relation to said dispensaries, and ascertain how far they are conducted in compliance with this law and the rules and regulations of the board. After due notice to a dispensary, and opportunity for it to be heard, the board may, if public interest demands, and for just and reasonable cause, revoke a license by an order signed and attested by the president and secretary of the board. Such order shall state the reason for revoking such license, and shall take effect within such time after the service thereof upon the dispensary as the board shall determine. The said board is hereby directed to apply to the supreme court to revoke the license and annul the incorporation of any dispensary legally incorporated, or conducted in connection with an incorporated institution on April eighteenth, eighteen hundred and ninety nine, for wilful violation of the rules and regulations made by said board. § 294. Drug store or tenement house not to be used by dispensary; unlawful display of signs. After Apri! eighteenth, eighteen hundred and ninety-nine, no dispensary shall make use of any place commonly known as a drug store, or any place or building defined by law or by an ordinance of the board of health as a tenement house; nor after such time shall any person, corporation, institution, society, association, or agent thereof, except a duly licensed dispensary, display or cause to be displayed a sign or other thing which could directly or indirectly or by suggestion indicate the existence of the equivalent, in purpose and effect, of a dispensary. Violation of above section by corporations displaying word "Clinic" on sign. STATE OF NEW YORK, ATTORNEY-GENERAL'S OFFICE, Hon. ROBERT W. HEBBERD, Secretary, State Board of Charities, Albany, N. Y.: DEAR SIR.—1 beg to acknowledge receipt of your communication of Febru ary 28th, in which you inquire with reference to alleged violations of the Dispensary Law in the city of New York. You say that a private business corporation, known as Frauenthal Clinic for Joint Diseases and Deformities" maintains an establishment for the purpose of furnishing medical and surgical treatment, displaying a sign worded: "Clinic for Joint Diseases and Deformities, 2 to 4 p. m.," and that a physician displays a sign reading: "Dr. Grant's Clinic, 1 to 3 p. m.," and ask whether such actions are violative of section 23 of said Dispensary Law. In reply, I beg to call your attention to the language of section 19 of said law, which defines a dispensary as an institution, the moneys for which "shall be derived wholly or in part from trust funds, public moneys or sources other than the individuals constituting said dispensary and the persons actually engaged in the distribution of charities of said dispensary." An institution deriving its fund solely from the individuals composing and conducting it. whether medical services rendered therein are free or otherwise, is not a dispensary as defined in section 19 above, and the only question to be determined is whether such an institution by displaying a certain sign is violating the provisions of said section 23. The evident intent of the Legislature in enacting said section was to prevent individuals and corporations from deceiving people into believing institutions to be dispensaries which, in fact, were not. The enactment was clearly for the purpose of safeguarding the poor who rely upon the service of dispensaries. |