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What constitutes a gift of “public funds”?

What constitutes a gift of “public funds”?

Answer

The California gift of public funds doctrine set forth in the California Constitution, Article XVI, § 6, prohibits the giving or lending of public funds to any person or entity, public or private.
 
“In determining whether an appropriation of state funds or property is to be considered a gift, the primary question is whether the funds are to be used for a “public” or “private” purpose. If they are for a “public purpose”, they are not a gift within the meaning of [§6 of art. XVI]. If an expenditure serves a primary public purpose, it is not a gift even if it incidentally benefits an individual.

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