Can a Mississippi school district give veterans free admission to athletic events?

Plain-English summary

The Alcorn County School District wanted to honor veterans by letting them in to athletic events for free. The trustees asked their attorney whether they could. The attorney asked the AG.

The AG had to say no, and acknowledged the answer was hard to give: "This office is grateful for your interest in demonstrating appreciation and respect to veterans. Unfortunately, however laudable the intent, the District may not give veterans free tickets to athletic events because such would amount to an unlawful donation."

The chain of reasoning is short. Mississippi schools are not required to charge for events; they can choose to make events free for everyone. But once they charge admission, the gate money is public funds. Giving free tickets to a class of people is, in effect, transferring public value to those people without consideration. A "donation" is "a transfer of money or other thing of value from the owner to another without any consideration" (Craig v. Mercy Hospital-Street Memorial, 45 So. 2d 809 (Miss. 1950)). Mississippi Constitution Article 4 § 66 forbids public donations except by a two-thirds legislative vote. The 2009 Treadway opinion already applied this rule to school districts. The 2005 Adams opinion forbade free admission for former school board members on the same logic. Veterans, while a sympathetic class, are no different from any other group for purposes of § 66.

The opinion notes two doors that stay open. Counties and municipalities, unlike school districts, have a separate statutory authority to spend money "for the purpose of advertising and bringing into favorable notice the opportunities, possibilities and resources of such municipality or county" under Miss. Code Ann. § 17-3-1. So the county or city could buy tickets and give them to veterans, framed as advertising the community's resources. And there is no prohibition against a private organization (a veterans group, a booster club, a chamber of commerce) buying tickets for veterans on its own dime.

The lesson is structural. The school district has the strict prohibition, but workarounds exist for the same outcome.

What this means for you

For school boards that want to honor veterans at games

Under the opinion, the district "may not give veterans free tickets to athletic events because such would amount to an unlawful donation." A school is "not required to charge admission to any school event," so a no-charge event raises no donation question; but once admission is charged, the money "must be treated as public funds," and giving a free ticket to a class of people is a transfer of public value without consideration. The opinion notes two lawful alternatives that do not run through the district: a county or municipality may have authority under § 17-3-1 to purchase tickets for veterans, and a private organization may buy tickets for veterans.

For city and county officials

The opinion notes that, unlike school districts, municipalities and counties "may in their discretion, set aside, appropriate and expend moneys . . . for the purpose of advertising and bringing into favorable notice the opportunities, possibilities and resources of such municipality or county" under § 17-3-1, and that they "may have authority under Section 17-3-1 to purchase tickets for the veterans." The opinion cites the Brown (2014) and Moore (1996) opinions applying § 17-3-1.

For veterans service organizations and other private groups

The opinion states "there is no prohibition against a private organization buying tickets for the veterans." A private group is not a public entity bound by § 66, so it can purchase tickets and give them to veterans.

For athletic directors and business managers

Under the opinion, ticket money the district collects is "treated as activity funds pursuant to Section 37-7-301(s)" and is public funds. The donation prohibition applies to that money, so the district cannot waive admission for a class of attendees once it charges admission.

Common questions

Q: What about senior citizens or first responders?
A: The opinion's reasoning is not limited to veterans. It rests on the rule that a school district cannot transfer public value (a free ticket) to a class of people without consideration once it charges admission, and cites the 2005 Adams opinion applying that to former school board members.

Q: Can a private booster club or PTO keep the gate money instead?
A: No. The opinion cites Caves (1995): "Schools are not required to charge admission to any school event, but if admission is charged, the money received must be treated as public funds." A PTO cannot collect athletic ticket sales as its own fundraiser.

Q: What if the school just makes the event free for everyone?
A: That is open. The opinion notes a school is "not required to charge admission," and with no admission charge there is no transfer of public value to a class, so the donation analysis does not arise.

Q: How can veterans get in free without the district donating tickets?
A: Through the two paths the opinion identifies: a county or municipality purchasing tickets under § 17-3-1, or a private organization buying tickets for veterans. Neither runs the free ticket through the district's own admissions revenue.

Background and statutory framework

Mississippi's prohibition on donations by public entities comes from Article 4, Section 66 of the state constitution: "No law granting a donation or gratuity in favor of any person or object shall be enacted except by the concurrence of two-thirds of the members elect of each branch of the Legislature." The opinion applies it to a school district.

A "donation" turns on the absence of consideration; the opinion quotes Craig (1950) defining it as "a transfer of money or other thing of value from the owner to another without any consideration." School ticket revenue is public funds under § 37-7-301(s), so giving a free ticket to a class of people is a donation.

Counties and municipalities have an authority school districts lack: under § 17-3-1 they may spend on advertising and community promotion, and the opinion cites the Brown (2014) opinion (county support of a Mayor's Youth Council) and the Moore (1996) opinion (city funding a high-school choir trip) applying that statute. Because school districts have no parallel statute, the opinion points to a county, municipality, or private organization as the way to reach the same result.

Citations

• Miss. Const. Art. 4, § 66 (prohibition on donations)
• Miss. Code Ann. § 37-7-301(s) (school activity funds treated as public funds)
• Miss. Code Ann. § 17-3-1 (county and municipal authority to spend on advertising and community promotion)
• Craig v. Mercy Hospital-Street Memorial, 45 So. 2d 809 (Miss. 1950) (definition of donation)
• MS AG Op., Caves (Mar. 16, 1995) (athletic ticket revenue is public funds; PTO cannot retain as fundraiser)
• MS AG Op., Treadway (Nov. 6, 2009) (school district cannot make donation absent legislative supermajority)
• MS AG Op., Adams (Mar. 11, 2005) (free admission for former school board members prohibited)
• MS AG Op., Brown (Nov. 21, 2014) (county may support Mayor's Youth Council under § 17-3-1)
• MS AG Op., Moore (Aug. 9, 1996) (city may fund choir trip under § 17-3-1)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2022/10/A.Bullard-October-11-2022-Free-Admission-for-Veterans.pdf

Original opinion text

October 11, 2022
Arch Bullard, Esq.
Attorney, Alcorn County School District
511 Franklin Street
Corinth, Mississippi 38835
Re:

Free Admission for Veterans

Dear Mr. Bullard:
The Office of the Attorney General has received your request for an official opinion.
Background
According to your request, the Trustees for the Alcorn School District (the "District") want to
show their appreciation to military veterans by offering them free admission to athletic events at
District schools. We understand from a subsequent conversation with you that money from ticket
sales is collected by the District and treated as activity funds pursuant to Section 37-7-301(s) of
the Mississippi Code.
Question Presented
In light of state constitutional prohibitions, may the District give veterans free tickets to athletic
events?
Brief Response
This office is grateful for your interest in demonstrating appreciation and respect to veterans.
Unfortunately, however laudable the intent, the District may not give veterans free tickets to
athletic events because such would amount to an unlawful donation.
Applicable Law and Discussion
"Schools are not required to charge admission to any school event, but if admission is charged, the
money received must be treated as public funds." MS AG Op., Caves at *1 (Mar. 16, 1995)
(opining that a parent teacher organization cannot collect athletic ticket sales funds as a fund raiser
for the P.T.O.).

This office has previously opined that pursuant to Article 4, Section 66 of the Mississippi
Constitution, a school district may not pay a gratuity or make a donation in favor of any person
without the concurrence of two-thirds of the Legislature. MS AG Op., Treadway at 1 (Nov. 6,
2009). A donation is defined as "a transfer of money or other thing of value from the owner to
another without any consideration." Id. (quoting Craig v. Mercy Hospital-Street Memorial, 45 So.
2d 809, 814 (Miss. 1950)). See MS AG Op., Adams at 1 (Mar. 11, 2005) (opining that free
admission to sporting and social events for former school board members is prohibited).
While municipalities and counties also are generally prohibited from granting donations, unlike
school districts, municipalities and counties "may in their discretion, set aside, appropriate and
expend moneys . . . for the purpose of advertising and bringing into favorable notice the
opportunities, possibilities and resources of such municipality or county." Miss. Code Ann. § 17-3-1. See MS AG Op., Brown at 1 (Nov. 21, 2014) (authorizing board of supervisors to expend
county funds to support local Mayor's Youth Council for the purpose of bringing into favorable
notice the opportunities of the county); MS AG Op., Moore at 1 (Aug. 9, 1996) (permitting
governing authorities of Byhalia to spend funds to send local high school choir to New York for
the purpose of advertising as contemplated by § 17-3-1).
While the county and municipalities therein may have authority under Section 17-3-1 to purchase
tickets for the veterans, and there is no prohibition against a private organization buying tickets for
the veterans, it is the opinion of this office that the District is without authority to give veterans
free admission to athletic events because to do so would constitute a donation in contravention of
the state constitution.
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By:

/s/ Misty Monroe
Misty Monroe
Assistant Attorney General