Revenue bonds of authority not state obligations.

- While the State Bridge Building (now Georgia Highway) Authority is an instrumentality of the state, it is nevertheless not the state, nor a part of the state, nor an agency of the state. It is a mere creature of the state; a distinct corporate entity. Its revenue bonds are not obligations or debts of the state, nor a pledge of the credit of the state, but they are payable solely and exclusively from revenue derived from a use of its facilities; and the state is not directly, indirectly, or contingently obligated to levy or pledge any form of taxation whatsoever therefor or to make any appropriation for the payment of them, and Ga. L. 1953, Jan.-Feb. Sess., p. 626 (see now O.C.G.A. § 32-10-39) required that the bonds, when issued, must contain recitals on their face to this effect. They are first, last, and always a corporate debt of the authority and in no sense a debt of the state. McLucas v. State Bridge Bldg. Auth., 210 Ga. 1, 77 S.E.2d 531 (1953).

Long term contract between municipality and corporation not unconstitutional.

- A contract between a municipality and another corporation for a lease for a term of 35 years of land owned by the municipality, in consideration of care of the poor of the city by the lessee to the extent of supplying specified medical and surgical treatment in a clinic or hospital existing on such land, is not unlawful as violating any of the provisions of the Constitution. Aven v. Steiner Cancer Hosp., 189 Ga. 126, 5 S.E.2d 356 (1939).

Secretary of State not authorized in refusing charter to private persons incorporating "Bank of State of Georgia." Manley v. McLendon, 158 Ga. 659, 124 S.E. 138 (1924).

Cited in Morris v. Tatum, 178 Ga. 728, 174 S.E. 340 (1934); Morris v. Tatum, 50 Ga. App. 315, 178 S.E. 167 (1935); State v. State Toll Bridge Auth., 210 Ga. 690, 82 S.E.2d 626 (1954); Bradfield v. Hospital Auth., 226 Ga. 575, 176 S.E.2d 92 (1970); Carter v. Burson, 230 Ga. 511, 198 S.E.2d 151 (1973); Fuller v. State, 232 Ga. 581, 208 S.E.2d 85 (1974).

When fee simple title required.

- The State of Georgia may not accept a deed conveying anything less than fee simple title where it is contemplated that state funds will be expended in connection with use and enjoyment of the property; however, one exception to the above rule has been where the improvements, though considered "permanent" in the sense that under general principles of law they would become a part of the realty, were of such a nature as to be easily removable without material damage thereto and the deed or other instrument of conveyance contained a clause giving the state the right to remove these improvements either before or within a reasonable time after abandonment by the state. 1967 Op. Att'y Gen. No. 67-226.

Unconstitutional conveyance.

- Property conveyed to the state containing a reversionary interest in the grantor would, after being improved with state funds or by the labors of state personnel, be in violation of this paragraph. 1960-61 Op. Att'y Gen. p. 384.(see Ga. Const. 1983, Art. VII, Sec. IV, Para. VIII).

Medicaid agreements must limit financial liability.

- Medicaid provider agreements, or any arrangement through which Department of Human Resources reimburses medicaid providers, must limit potential financial liabilities of the state so as to insure that such liabilities cannot exceed the unobligated funds appropriated for the fiscal year in which the agreements are executed. 1975 Op. Att'y Gen. No. 75-88; 1978 Op. Att'y Gen. p. 267.

Effect of federally financed program providing state funded school resources to public and private school.

- So long as Title II of the Elementary and Secondary Education Act of 1965, 20 U.S.C. §§ 2881-2922, is wholly financed by the federal government and no state matching funds are involved, the State Board of Education may lawfully administer a state plan adopted under Title II of the act even though it contemplates providing school library resources, textbooks, and other printed instructional materials for use of students and teachers in private as well as public schools. 1965-66 Op. Att'y Gen. No. 65-4.

The use of convict labor on private property is permissible where the sole benefit flows to the state. 1969 Op. Att'y Gen. No. 69-158.

The State Highway Department (now Department of Transportation) can contract with a private property owner to use prison labor or state maintenance forces to remove and reset fences upon the private property which is to be used as a right of way since the utilization of this prison labor is to benefit the state; the department cannot guarantee to a county that it will perform these acts or expend this money if a county in turn entered into such an agreement with the private landowner which guaranteed to the private landowner that the state would perform such acts. 1969 Op. Att'y Gen. No. 69-158.

The (State) Forestry Commission may not legally assist a private corporation in the construction of a dam on property belonging to the latter, notwithstanding the fact that the state would receive considerable benefit therefrom. 1952-53 Op. Att'y Gen. p. 95.

Sections45-7-25 through 45-7-28. - The use of public funds for the purposes authorized under Ga. L. 1973, p. 842, §§ 1-4 (see now O.C.G.A. §§ 45-7-25 through45-7-28) did not violate Ga. Const. 1976, Art. III, Sec. VIII, Para. XII(1) (see Ga. Const. 1983, Art. III, Sec. VI, Para. VI), or this paragraph. 1973 Op. Att'y Gen. No. 73-87.(see Ga. Const. 1983, Art. VII, Sec. IV, Para. VIII).

The procedures authorized by Ga. L. 1973, p. 842, §§ 1-4 (see now O.C.G.A. §§ 45-7-25 through45-7-28) did not constitute either a gratuity or a loan to an employee; payments to an employee to compensate the employee for expenses to be incurred in rendering services to the state clearly do not constitute a gratuity where the employee is accountable for the employee's failure to employ the funds for that purpose; nor do such payments constitute a loan simply because there is a requirement that the employee account for such funds. 1973 Op. Att'y Gen. No. 73-87.

Board donation to professional council unauthorized.

- The making of a donation by the State Board of Engineers (see State Board of Registration for Professional Engineers and Land Surveyors) to the Engineers' Council for Professional Development would be an illegal and unwarranted expenditure of state funds. 1945-47 Op. Att'y Gen. p. 491.

Expenditure of state funds unauthorized.

- The Department of Natural Resources is without authority to expend funds to be used in the construction of a fence which, upon completion, will be jointly owned by the state and a private individual. 1952-53 Op. Att'y Gen. p. 100.

The Board of Regents cannot pledge the credit or property of the state to any individual, company, corporation, or association, nor shall the state "become a joint owner or stockholder in or with, any individual, company, association or corporation," in violation of this paragraph of the state Constitution. 1948-49 Op. Att'y Gen. p. 141 (see Ga. Const. 1983, Art. VII, Sec. IV, Para. VIII).

Sponsorship agreements between the Georgia Tech Athletic Association and MacDonald's Corporation in which MacDonald's permanently acquires the preeminent right to associate its name and reputation commercially with the property, goodwill, and programs of the state violates the constitution. 1995 Op. Att'y Gen. No. 95-9.

Am. Jur. 2d.

- 63C Am. Jur. 2d, Public Funds, § 3.

ALR.

- Deposit of public funds in bank as violation of constitutional or statutory provision against lending of public credit or money, 87 A.L.R. 168.

Constitutionality of legislation which contemplates use of public funds or credit for purpose of making, guaranteeing or discounting loans on home mortgages, 98 A.L.R. 1367.

Constitutionality of statute authorizing state to loan money or engage in business of a private nature, 115 A.L.R. 1456.