Could Louisiana’s contractor licensing board spend fee revenue on its anniversary celebration?

Plain-English summary

Louisiana's State Licensing Board for Contractors proposed spending up to $50,000 on logistics, food, promotion, and publicity for its anniversary celebration. The AG said the board could not fund the celebration. Its self-generated licensing fees were still public funds, and the constitutional restriction on public gifts applied even without a state general-fund appropriation.

The AG identified a permitted use of board money: publishing and distributing information about contractor licensing requirements, protection from unscrupulous contractors, and scams and fraud following Hurricanes Katrina and Rita. That authority came from the board's statute, not from the proposed celebration.

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

Were self-funded licensing fees exempt from public-funds rules?

No. The AG said the board's fee revenue remained public money despite the absence of legislative appropriations from the State General Fund.

Could the board pay for food and refreshments at its anniversary event?

No. The proposed food and celebration costs were among the expenditures the AG said could not be paid from public funds.

Could the board publish warnings about contractor scams instead?

Yes. The opinion said La. R.S. 37:2153 authorized the board to publish and distribute materials about licensing laws and consumer protection, including post-hurricane fraud awareness.

Background and statutory framework

The opinion applied La. Const. Art. VII, Sec. 14's restriction on donating public funds and cited a case treating the contractor board's fee revenue as public money. It distinguished an anniversary celebration from public information materials the board was expressly authorized to distribute under La. R.S. 37:2153.

Citations

• La. Const. Art. VII, Sec. 14 (public-funds restriction).
• La. R.S. 37:2153 (board authority to publish and distribute information).
• State Licensing Board of Contractors v. State Civil Service Commission (status of board funds).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/06-0133

Original opinion text

June 27, 2006
OPINION NUMBER 06-0133

90-1-A PUBLIC FUNDS & CONTRACTS

La. Const. Art. VII, Sec. 14
Mr. Charles G. Marceaux
La. R.S. 37:2153
Executive Director
The State Licensing Board of Contractors may not use public
State Licensing Board for Contractors
th
funds to finance its 50 Anniversary celebration. The Board
2525 Quail Drive
may use its funds to publish and distribute materials informing
Baton Rouge, Louisiana 70808
the public about contractor licensing laws and ongoing scams
and frauds.

Dear Mr. Marceaux:

You requested an Attorney General’s opinion regarding the State Licensing Board of Contractors’ (“Board”) 50th Anniversary. You indicate that the Board will celebrate its 50th Anniversary in May or June of this year. The Board wants to spend up to $50,000 of its funds to celebrate the Anniversary. The expenditures would be for logistics, food and refreshments, promotion, and publicity costs for the event.

We direct your attention to La. Const. Art. VII, Sec. 14, which prohibits the state and its political subdivisions from donating public funds "...to or for any person, association or corporation, public or private." This office has historically opined that the payment of, or reimbursement for, meals and/or foods served in conjunction with parties and other types of celebratory functions, from public funds, is improper under Article VII, Section

14. Attorney General Opinion Nos. 94-115, 91-589A, 77-1494 and 76-1680.

You indicate that the Board’s budget is self-funded from licensing fees, and the celebration would not involve the expenditure of any State General Fund monies. Although the Board receives no appropriations from the legislature, the funds that it generates through licenses and fees are nevertheless public funds. State Licensing Board of Contractors v. State Civil Service Commission, 110 So2d 847 (1st Cir. 1959), affirmed, 123 So2d 76 (La. 1960). Therefore, the use of the Board’s funds to finance this celebration would violate Article VII, Section 14 of the 1974 Louisiana Constitution.

We point out that pursuant to La. R.S. 37:2153, the Board has the authority to “Publish and distribute materials containing such information as it deems proper to further the accomplishment of the purpose of [Title 37, Chapter 24].” The Board may use its funds to publish and distribute materials informing the public about the requirements of the Louisianan Contractor Licensing Laws, informing the public about protection from unscrupulous contractors, and to raise citizen awareness of the ongoing scams and frauds being conducted in the aftermath of Hurricanes Katrina and Rita.

Page 2

Mr. Charles G. Marceaux
Opinion Number 06-0133
Page -2-

Trusting this adequately responds to your request, we remain

Yours very truly,

CHARLES C. FOTI, JR.
ATTORNEY GENERAL

BY: _________
KENNETH L. ROCHE, III
Assistant Attorney General

CCF, JR/KLR, III/crt

Page 3

Opinion Number 06-0133

90-1-A PUBLIC FUNDS & CONTRACTS

La. Const. Art. VII, Sec. 14
La. R.S. 37:2153

The State Licensing Board of Contractors may not use public funds to finance its 50th Anniversary celebration. The Board may use its funds to publish and distribute materials informing the public about contractor licensing laws and ongoing scams and frauds.

Mr. Charles G. Marceaux
Executive Director
State Licensing Board for Contractors
2525 Quail Drive
Baton Rouge, Louisiana 70808

Date Received:

Date Released: June 27, 2006

Kenneth L. Roche, III
Assistant Attorney General