Source: https://www.azag.gov/sgo-opinions/school-districts%E2%80%99-provision-food-beverages-or-refreshments-staff-and-parents
Timestamp: 2016-05-30 22:20:29
Document Index: 538166771

Matched Legal Cases: ['§ 15', '§ 15', '§ 15', '§ 15', '§ 15', '§ 38', '§ 15', '§ 15', '§ 38', '§ 15', '§ 15']

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Opinion No:I10-003 (R09-040)
Re: School Districts’ Provision of Food, Beverages, or Refreshments to Staff and Parents
To: David J. CantelmeCantelme & Brown, P.L.C.
Section 15-341(A)(14) allows school district governing boards to accept gifts, grants, and devises and spend the money for the donor’s intended purpose. A.R.S § 15-1105(E) allows school districts to lease school property and use the generated funds for civic center school purposes. Governing boards may expend surplus monies in the civic center school fund for maintenance and operations or unrestricted capital outlay after they cover the expenses of the civic center fund. A.R.S § 15-342(29). Finally, school districts may expend federal grants they receive in accordance with the purposes of the grant. A.R.S. § 15-207(B). Analysis
However, statutory provisions regarding the use of certain funds may provide exceptions to the above restrictions. For example, school districts have the express authority to spend federal grant monies in accordance with the purposes of and in the manner set forth in the grant. A.R.S. § 15-207(B); Ariz. Att’y Gen. Op. I82-121. Although the federal grant statute does not specifically authorize the school districts to provide food and beverages, such authority may be implied where it is consistent with the intended purpose of the funds. See Maricopa County v. Douglas, 69 Ariz. 35, 39, 208 P.2d 646, 648 (1949) (stating that the legislative intent of a statute includes that which is necessarily implied as well as what is expressed) ; Ariz. Att’y Gen. Op. I88-031. Therefore, if a federal grant specifies that the monies may be expended for food and beverages for staff or volunteers, a school district may do so. The school district must still comply with all applicable state laws, including procurement requirements, unless federal law provides otherwise respecting a particular grant or program. Ariz. Att’y. Gen. Op. I82-121. School districts must also ensure that the expenditure of funds for refreshments does not constitute a gift of public funds. Compliance with the Gift Clause requires that the expenditure of public funds be for a public purpose where the expenditure does not exceed the worth of the direct benefits enjoyed by the public body. Turken v. Gordon, No. CV-09-0042-PR, 2010 WL 246088, at *7 (Ariz. January 25, 2010). Similarly, A.R.S. § 15-341(A)(14) requires that school districts expend gifts, grants, and devises “for the intended purpose for the monies.” Therefore, school districts have the authority to use these funds to pay for subsistence for district staff at governing board-authorized district activities if that use is in accordance with the intended purpose of the monies. However, as with federal grants, school districts must still comply with applicable state law, including the Arizona Constitution’s Gift Clause. Moreover, donors cannot attach conditions to donations that are contrary to law or that are inconsistent with the school districts’ public trust obligations. Ariz. Att’y Gen. Op. I00-005. Finally, school districts should be cognizant of whether a gift, grant or devise presents a conflict of interest for staff pursuant to A.R.S. §§ 38-504(C) and 38-505.(5)
School districts may also be able to include provisions for food, beverages, or refreshments as benefits in employment contracts, with some limitations. School district governing boards may contract with employees and fix their salaries and benefits for the succeeding year. A.R.S. § 15-502(A). Fringe benefits are employment benefits received in addition to an employee’s net or take-home salary. Ariz. Att’y Gen. Op. I81-136. Fringe benefits have historically included such items as dental, medical, disability and life insurance, sick and annual leave, and housing and tuition allowances. Ariz. Att’y Gen. Op. I81-057; see also Ariz. Att’y Gen. Op. I01-004 (discussing school districts’ practice of offering early retirement programs as fringe benefits under A.R.S. § 15-502(A)). School districts have some latitude in offering fringe benefits to employees as long as the districts confer the benefits in a manner that complies with the Arizona Constitution’s Gift Clause. Ariz. Att’y Gen. Ops. I79-121; I76-178. So long as . . . fringe benefits have been adopted by the school district governing board prior to the time that the school district’s employees have entered into their contracts for the ensuing year, all of those fringe benefits are granted in consideration of those employees promising to perform and performing services for the school district for that year. That consideration is valuable and adequate and negates the existence of a gift.
Neither the state, nor any county, city, town, municipality, or other subdivision of the state shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation, or become a subscriber to, or a shareholder in, any company or corporation, or become a joint owner with any person, company, or corporation, except as to such ownerships as may accrue to the state by operation or provision of law or as authorized by law solely for investment of the monies in the various funds of the state. The term “school purpose” has not been defined precisely and is a determination left to the discretion of the school district governing board so long as the governing board does not act in a manner that is arbitrary or capricious. Ariz. Att’y Gen. Ops. I61-47, I79-007.
A.R.S. § 38-505(A) states that: [n]o public officer or employee may receive or agree to receive directly or indirectly compensation other than as provided by law for any service rendered or to be rendered by him personally in any case, proceeding, application, or other matter which is pending before the public agency of which he is a public officer or employee. Attorney General Opinion I79-077 analyzed A.R.S. § 15-442(B)(5), which was the precursor to and substantially the same as A.R.S. § 15-342(5).