Can a Mississippi convention and visitors bureau pay a nonprofit foundation to operate a tourism welcome center?

Subject

CVB Funding to Nonprofit Operating a Visitor Center

Recipient

John D. Brady, Esq., Attorney, Columbus-Lowndes Convention and Visitors Bureau

Plain-English summary

The Columbus-Lowndes Convention and Visitors Bureau was created by 2011 House Bill 1552. The Columbus Cultural Heritage Foundation, a 501(c)(3) nonprofit, owns the Tennessee Williams Welcome Center in Columbus and is responsible for maintaining, repairing, and restoring the center while also fostering tourism in the area. The bureau's attorney asked the AG, at the Mississippi Ethics Commission's direction, whether the bureau has authority to fund the foundation.

The AG said yes. Under Golding v. Salter (1958), public boards created by legislative act have only the powers expressly conferred or necessarily implied. HB 1552 Section 2(1)(f) gives the bureau the express power "[t]o contribute funds for the operation of any visitor information center in the designated area for the repair, restoration, and maintenance of buildings and grounds owned by governmental entities and nonprofit corporations which would tend to promote tourism, conventions and special events in the city and county . . . ." That is exactly the kind of arrangement the Cultural Heritage Foundation operates: a nonprofit-owned building serving as a visitor center for the area. The bureau may fund the foundation for the operation of the Tennessee Williams Welcome Center.

What this means for you

The Columbus-Lowndes CVB and its board

The opinion holds that the bureau may fund the Columbus Cultural Heritage Foundation for the operation of the Tennessee Williams Welcome Center, because Section 2(1)(f) of H.B. 1552 expressly grants the bureau power to contribute funds for the operation of a visitor information center on buildings owned by nonprofit corporations that promote tourism. The AG grounds that conclusion in the rule from Golding v. Salter that public boards created by legislative act have only the powers expressly conferred or arising by necessary implication.

Nonprofit visitor center operators

The opinion treats the Cultural Heritage Foundation's role (a 501(c)(3) that owns a visitor center and exists "to foster, promote, encourage and advertise tourism in the Columbus, Mississippi trade area") as fitting squarely within the kind of nonprofit-owned property H.B. 1552 Section 2(1)(f) lets the bureau fund.

Other Mississippi CVBs

The opinion's reasoning is specific to H.B. 1552. It rests on the express-grant test from Golding v. Salter, under which a bureau's authority depends on the language of its own enabling act, not on a general power held by all CVBs.

Mississippi Ethics Commission

The opinion notes the request came at the direction of the Ethics Commission. The AG answered the question put to it, whether the bureau has statutory authority to fund the foundation, and held that it does under H.B. 1552.

Background and statutory framework

Mississippi convention and visitors bureaus are typically created by local and private legislation, not general statute. The 2011 HB 1552 created the Columbus-Lowndes Convention and Visitors Bureau. Section 2(1)(f) of that act grants the bureau the express power to contribute funds for visitor center operations on properties owned by governmental entities or nonprofits.

Public boards created by legislative act have only the powers "expressly conferred by law, or as arise by necessary implication." Golding v. Salter, 107 So. 2d 348, 354 (Miss. 1958). The opinion's analysis tracks the express-grant test directly: does HB 1552 give the bureau the authority? Yes, by its plain terms. So the funding is permissible.

The Cultural Heritage Foundation is a 501(c)(3) corporation whose articles of incorporation are "to foster, promote, encourage and advertise tourism in the Columbus, Mississippi trade area." The foundation owns the Tennessee Williams Welcome Center. The funding to the foundation, for operating that center, fits the statutory authorization comfortably.

Citations

• 2011 Mississippi House Bill 1552 § 2(1)(f) (CVB authority to contribute funds for visitor information centers on governmental and nonprofit-owned property)
• Golding v. Salter, 107 So. 2d 348, 354 (Miss. 1958) (public boards have only powers expressly conferred or necessarily implied)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2023/08/J.Brady-August-17-2023-Columbus-Lowndes-Convention-and-Visitors-Bureaus-Funding-of-Columbus-Cultural-Heritage-Foundation.pdf

Original opinion text

August 17, 2023
John D. Brady, Esq.
Attorney, Columbus-Lowndes Convention and Visitors Bureau
Post Office Box 1366
Columbus, Mississippi 39703-1366
Re:

Columbus-Lowndes Convention and Visitors Bureau's Funding of Columbus Cultural Heritage Foundation

Dear Mr. Brady:
The Office of the Attorney General has received your request for an official opinion.

Background
The Columbus-Lowndes Convention and Visitors Bureau was created by 2011 Mississippi House Bill No. 1552 ("H.B. 1552"). According to your request, the Columbus Cultural Heritage Foundation, a 501(c)(3) nonprofit corporate entity, owns the Tennessee Williams Welcome Center in Columbus. You state that the Columbus Cultural Heritage Foundation "is tasked with, among other things, the duty and obligation to maintain, repair, and restore the center. In addition, and consistent with its Articles of Incorporation, the Columbus Cultural Heritage Foundation is 'to foster, promote, encourage and advertise tourism in the Columbus, Mississippi trade area.'" (internal citation omitted). We understand that you are seeking this opinion at the direction of the Mississippi Ethics Commission. Question Presented Does the Columbus-Lowndes Convention and Visitors Bureau have the authority to provide funding to the Columbus Cultural Heritage Foundation, a nonprofit 501(c)(3) historic foundation? Brief Response The Columbus-Lowndes Convention and Visitors Bureau ("CVB") may provide funding to the Columbus Cultural Heritage Foundation ("CCHF") for the operation of the Tennessee Williams Welcome Center in Columbus in accordance with H.B. 1552.

Applicable Law and Discussion
"Public boards created by legislative act have only such powers and authority as are expressly conferred by law, or as arise by necessary implication." Golding v. Salter, 107 So. 2d 348, 354 (Miss. 1958). Section 2(1)(f) of H.B. 1552 grants the CVB the power "[t]o contribute funds for the operation of any visitor information center in the designated area for the repair, restoration, and maintenance of buildings and grounds owned by governmental entities and nonprofit corporations which would tend to promote tourism, conventions and special events in the city and county . . . ." It is the opinion of this office that H.B. 1552 allows the CVB to provide funding to the CCHF for the operation of the Tennessee Williams Welcome Center in Columbus. 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/ Beebe Garrard
Beebe Garrard
Special Assistant Attorney General