Did 1998 South Carolina AG guidance still allow public funds for a nonprofit public purpose?

Plain-English summary

Transportation Department counsel asked whether two earlier AG opinions remained valid on public funding for a private nonprofit carrying out a public purpose. The Attorney General said yes. The 1979 and 1984 opinions supported the proposition that allocating public funds to a nonprofit corporation for a valid public purpose did not violate Article X, Section 11 of the state constitution, and the letter said that proposition had not changed.

The letter cited later AG opinions that had relied on each earlier letter. It did not analyze a particular proposed payment, recipient or project, so its answer was confined to the continuing status of the earlier general position.

Currency note

This opinion was issued in 1998. 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

Q: Had the AG withdrawn the earlier opinions on nonprofit public funding?
A: No. The 1998 letter said both earlier opinions were still valid positions of the office.

Q: Did the letter approve a specific transportation project or grant?
A: No. It answered whether the two earlier opinions remained valid, without applying them to a described transaction.

Background and statutory framework

The opinion identified the December 1979 and July 1984 AG letters as supporting public-purpose allocations to nonprofits under the state constitutional provision. Its short answer did not reproduce those letters' detailed analysis.

Citations and references

• Article X, Section 11 of the South Carolina Constitution, the provision named in the letter.

Official title

Asking whether two prior opinions of this Office which discuss the constitutionality of providing public funds to a private entity for the performance of a public purpose are still valid opinions.

Requester

Linda C. McDonald, Assistant Chief Counsel, SC Department of Transportation

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/june-17-1998/
• Original PDF: https://www.scag.gov/wp-content/uploads/2013/11/98june17mcdonald.pdf

Original opinion text

The State of South Carolina

OFFICE OF THE ATTORNEY GENERAL
CHARLES M. CONDON
ATTORNEY GENERAL

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June 17, 1998

Linda C. McDonald, Assistant Chief Counsel
South Carolina Department of Transportation
Office of General Counsel
Post Office Box 191
Columbia, South Carolina 29202-0191

RE:

Informal Opinion

Dear Ms. McDonald:
Your opimon request has been forwarded to me for reply. It is my understanding, after speaking with a law clerk in this Office who discussed this matter with you, that your question is whether two prior opinions of this Office which discuss the constitutionality of providing public funds to a private entity for the performance of a public purpose are still valid opinions of this Office. The two opinions in question are dated December 12, 1979 and July 12, 1984. Both of these opinions support the proposition that when public funds are allocated to a non-profit corporation for a valid public purpose, Article X, Section 11 of the South Carolina Constitution would not be violated. As this proposition of law has not changed, these two opinions are still valid opinions of this Office. I note that the December 12, 1979 opinion has been cited in opinions of this Office as recently as September 12, 1996, and the July 12, 1984 opinion as recently as January 16, 1997. This letter is an informal opinion only. It has been written by a designated assistant attorney general and represents the position of the undersigned attorney as to the specific questions asked. It has not, however, been personally scrutinized by the Attorney General nor officially published in the manner of a formal opinion.

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Rt'MBERT

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POST OFFICE Box 11549

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COLUMBIA.

s.c. 29211-1549

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TELEPllONE: 803-734-3970

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FACSIMILE: 803-253-6283

Ms. McDonald
Page 2
June 17, 1998
With kindest regards, I remain
Very truly yours,

73J.f:~
Paul M. Koch
Assistant Attorney General

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