Alabama Attorney General Opinion 1979-0041

# THE ATTORNEY GENERAL STATE OF ALABAMA · MONTGOMERY, ALABAMA 36130 CHARLES A. GRADDICK ATTORNEY GENERAL January 23, 1979 File #35 79-00041 Hon. Charles V. Ford Judge of Probate, Choctaw County Butler, AL 36904 COUNTIES — NON-PROFIT CORPORATIONS County may not contribute public monies to medical scholarship funds. Dear Judge Ford: I am writing in response to your letter of November 20, 1978 requesting an opinion from this office as follows: I am writing as Probate Judge of Choctaw County in order to ascertain if Choctaw County may legally contribute funds to a non-profit corporation whose sole purpose and activity is to raise funds with which to extend scholarships to students in medical school who will contact with said corporation to practice medicine for some length of time in Choctaw County. The activities of the corporation will be limited in the articles of incorporation and in the by-laws of the corporation so that these medical scholarships will be the only purpose for the corporation existing. Choctaw County along with incorporated municipalities in this county wish to contribute funds to such a corporation and need an opinion from you as Attorney General as to whether such a contribution would be legal. The mayors and the probate judge would be the incorporators and directors of the corporation. Your question is answered in the negative. The county governing body may exercise only such authority and powers as are specifically set forth in Section 11-3-11, Code of Alabama 1975. The contribution of Hon. Charles V. Ford January 23, 1979 Page 2 public funds to a medical scholarship would not appear to fall within the scope of this statutory provision. Furthermore, such contribution would fall squarely under the prohibition of Section 94 of the Constitution of Alabama 1901, which provides as follows: The legislature shall not have authority to authorize any county, city, town, or other subdivision of this state to lend its credit, or to grant public money or thing of value in aid of, or to any individual, association, or corporation whatsoever, or to become a stockholder in any corporation, association, company, by issuing bonds or otherwise. Your attention is also directed to Section 16-47-120, Code of Alabama 1975, which is specifically designed to deal with the problem of shortage of physicians in rural areas. Any incorporated or unincorporated municipality or locality in the state having a population of less than 15,000 desiring additional physicians and wishing to be designated as a locality needing additional physicians may apply to the board of medical scholarship awards to be placed on a list of localities in need of additional physicians, which shall be maintained by the board. Such applications may be made either by the municipal governing body or by a petition signed by at least one twentieth of the qualified electors of the municipality or locality. If the board of medical scholarship awards determines that such locality is in need of physicians, it shall place the locality on the list of localities in need of physicians from which to practice. In compiling and maintaining the list, the board may place any locality thereon which in its opinion needs additional physicians. This office is well aware of and in sympathy with the problems faced by rural areas in obtaining adequate medical services. If you feel we can be of assistance in any other way please do not hesitate to contact this office. Sincerely, CHARLES A. GRADDICK ATTORNEY GENERAL By- L. G. KENDRICK ASSISTANT ATTORNEY GENERAL LGK:ln