Can a Mississippi city pay annual membership dues to a chamber of commerce?

Plain-English summary

The Mayor of Quitman asked whether the city could pay chamber of commerce annual membership dues, and what statutes give the city the authority to do so. The AG identified two main statutory authorities and pointed to the city's own factual determination as the operative requirement.

Section 17-3-1, the "advertising statute," lets a Mississippi municipality "set aside, appropriate and expend moneys, not to exceed one mill of their respective valuation and assessment for the purpose of advertising and bringing into favorable notice the opportunities, possibilities and resources of such municipality or county." If the city makes the factual finding that paying chamber of commerce dues serves that advertising purpose, Section 17-3-1 supports the expenditure. The AG has used this statute to authorize chamber-of-commerce contributions consistently since at least 1982.

Section 21-19-44 lets municipalities "appropriate, contribute and donate to, or expend budgeted funds for, local economic development organizations and designated Main Street programs." Quoting MS AG Op., Barton (Oct. 5, 2020), the AG noted that a chamber of commerce is "per se, qualified to receive a donation by a municipality," but that the city's governing authorities still have to determine, consistent with the facts, that the chamber may receive a donation under Sections 21-19-44 through 44.1, Section 21-17-1(3)(a)(1), (3)(b)(ii), or another applicable statute.

The AG declined to opine on whether Quitman specifically can pay the dues; under Section 7-5-25 the office issues opinions on prospective questions of state law and does not make the factual determination, which is for the city.

What this means for you

For mayors and boards of aldermen

The opinion holds that, upon the proper factual determination, a municipality may contribute funds to a chamber of commerce under Section 17-3-1 (the advertising statute, which lets a municipality expend up to one mill of its valuation and assessment to advertise and bring into favorable notice its opportunities, possibilities, and resources), Section 21-19-44 (local economic development organizations and designated Main Street programs), or another applicable statute. It holds that whether a particular payment conforms is a factual determination for the city.

For city attorneys

The opinion builds on prior chamber-dues opinions, citing Horne (Feb. 22, 1982), Brooks (Mar. 5, 2010), and Barton (July 24, 2015 and Oct. 5, 2020). It holds those opinions confirm the statutory authority but that the city's governing authorities must make the factual determination, consistent with the facts, that the chamber may receive the contribution under the cited statutes.

For chambers of commerce seeking municipal membership

The opinion holds a chamber of commerce is per se qualified to receive a municipal donation, but that the city must still determine, consistent with the facts, that the dues serve the Section 17-3-1 advertising purpose or fall under Section 21-19-44 or another applicable statute.

For Main Street programs

Section 21-19-44, as quoted in the opinion, references "designated Main Street programs" as eligible recipients of municipal appropriations. The opinion holds the city must still make the factual finding.

Common questions

Can a Mississippi city pay chamber of commerce dues?

Yes, with the right statutory authority and a factual finding on the minutes. The two primary options are Section 17-3-1 (advertising) and Section 21-19-44 (economic development).

What does Section 17-3-1 allow?

"The board of supervisors of any county in Mississippi, and the mayor and board of aldermen or board of commissioners of any municipality in the State of Mississippi, may in their discretion, set aside, appropriate and expend moneys, not to exceed one mill of their respective valuation and assessment for the purpose of advertising and bringing into favorable notice the opportunities, possibilities and resources of such municipality or county."

What does Section 21-19-44 allow?

Municipalities to "appropriate, contribute and donate to, or expend budgeted funds for, local economic development organizations and designated Main Street programs." The AG has treated chambers of commerce as per se qualified recipients, with the city making a factual determination.

Are there other statutes besides 17-3-1 and 21-19-44?

The opinion quotes a prior Barton opinion listing Sections 21-19-44 through 44.1, Section 21-17-1(3)(a)(1), and (3)(b)(ii) as statutes under which a chamber may be qualified to receive a municipal donation, alongside "another applicable statute." The opinion says it does not purport to list every statute that could apply.

Why doesn't the AG just say yes for Quitman?

Because the AG can opine on prospective questions of state law but does not make factual determinations. Section 7-5-25. Whether Quitman's chamber-of-commerce dues in fact serve the Section 17-3-1 advertising purpose or Section 21-19-44 economic-development purpose is a factual determination for the city.

Does the city have to be a member of the chamber to pay the dues?

The opinion treats the dues themselves as the contribution. The city's "membership" status is a function of paying the dues. Whether the chamber gives the city governing-body member status, voting rights, or other features is between the city and the chamber.

Background and statutory framework

Section 17-3-1, advertising statute. Authorizes counties and municipalities to expend up to one mill of their valuation and assessment to advertise and bring into favorable notice the opportunities, possibilities, and resources of the jurisdiction.

Section 21-19-44, economic development organizations. Authorizes municipalities to appropriate, contribute, donate to, or expend budgeted funds for local economic development organizations and designated Main Street programs.

Section 21-17-1(3)(a)(1), (3)(b)(ii). Cited in the quoted Barton opinion as additional statutory authority under which a chamber of commerce may be qualified to receive a municipal donation.

Section 7-5-25. Limits AG opinions to prospective questions of state law and excludes factual determinations.

Citations

• Miss. Code Ann. § 17-3-1
• Miss. Code Ann. § 21-19-44
• Miss. Code Ann. § 21-17-1(3)(a)(1), (3)(b)(ii)
• Miss. Code Ann. § 7-5-25
• MS AG Op., Horne (Feb. 22, 1982)
• MS AG Op., Brooks (Mar. 5, 2010)
• MS AG Op., Barton (July 24, 2015)
• MS AG Op., Barton (Oct. 5, 2020)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2024/12/S.Watkins-December-2-2024-Municipality-as-a-Member-of-a-Chamber-of-Commerce.pdf

Original opinion text

December 2, 2024
The Honorable Steve Watkins
Mayor, City of Quitman
Post Office Box 16
Quitman, Mississippi 39355-0016
Re:

Municipality as a Member of a Chamber of Commerce

Dear Mayor Watkins:
The Office of the Attorney General has received your request for an official opinion.
Questions Presented

1. Mississippi Code Annotated Section 17-3-1 provides that a municipality may expend monies
   "for the purpose of advertising and bringing into favorable notice the opportunities, possibilities
   and resources of such municipality." Is there some other Mississippi statute or regulation that gives
   a municipality the authority to join a local chamber of commerce and pay annual municipal
   membership fees?
2. May the City of Quitman ("City") pay chamber of commerce annual municipal membership
   assessment fees?
   Brief Response
3. Upon the proper factual determination, a municipality may contribute funds to a chamber of
   commerce pursuant to Sections 17-3-1, 21-19-44, or another applicable statute.
4. See Response 1. The City may only pay the chamber of commerce annual membership fees if
   the expenditure conforms with Sections 17-3-1, 21-19-44, or another applicable statute, which is
   a factual determination for the City to make.
   Applicable Law and Discussion
   Initially, your request asks whether there is any statute other than Section 17-3-1, commonly
   referred to as the advertising statute, that allows a municipality to pay annual membership fees to
   a chamber of commerce. Prior opinions have consistently cited Section 17-3-1 as the authority for
   municipalities to contribute or pay membership fees to chambers of commerce. See MS AG Op.,
   Horne at 1 (Feb. 22, 1982); MS AG Op., Brooks at 1 (Mar. 5, 2010). Pursuant to Section 7-5-25, opinions of this office are issued on prospective questions of state law. We do not make factual
   determinations by official opinion. This opinion does not purport to list every statute that could
   apply to your situation, nor can we opine on whether it is legal for the City to pay the chamber of
   commerce membership fees in this instance, as these would both require our office to make factual
   determinations. With these limitations, we offer the following for future guidance.
   Section 17-3-1 provides:
   The board of supervisors of any county in Mississippi, and the mayor and board of
   aldermen or board of commissioners of any municipality in the State of Mississippi,
   may in their discretion, set aside, appropriate and expend moneys, not to exceed
   one mill of their respective valuation and assessment for the purpose of advertising
   and bringing into favorable notice the opportunities, possibilities and resources of
   such municipality or county.
   Upon the appropriate factual finding by a municipality that the funds will be used in accordance
   with Section 17-3-1, this advertising statute allows the municipality to provide money to a chamber
   of commerce. Further, Section 21-19-44 allows municipalities "to appropriate, contribute and
   donate to, or expend budgeted funds for, local economic development organizations and
   designated Main Street programs." When asked whether a municipality could donate the use of
   municipal facilities to a chamber of commerce under Section 21-19-44, this office opined:
   While the above-cited opinions issued by this office have concluded that a local
   chamber of commerce is, per se, qualified to receive a donation by a municipality,
   it is the opinion of this office that the governing authorities of a municipality must
   determine, consistent with the facts, that the local chamber of commerce may
   receive a donation pursuant to Sections 21-19-44 - 44.1, Section 21-17-1(3)(a)(1),
   (3)(b)(ii), or another applicable statute.
   MS AG Op., Barton at 2 (Oct. 5, 2020) (internal citations omitted); see also MS AG Op., Barton
   at 2 (July 24, 2015). This remains the opinion of this office. Accordingly, if a municipality
   determines that contributing to a chamber of commerce by way of membership dues is for the
   purpose of advertising and bringing into favorable notice the opportunities, possibilities, and
   resources of the municipality pursuant to Section 17-3-1 or that Section 21-19-44 or another statute
   applies, it may provide funds to the local chamber of commerce. As stated above, whether it is
   legal for the City to pay the chamber of commerce annual municipal membership assessment fees
   in this particular instance requires a factual determination by the City and is outside the scope of
   an official opinion.

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