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1981 Nebraska Attorney General Reports and Opinions 1 (1981)

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STATS OF NEBRASKA
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January 5 1981

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Honorable Marge ieggins
Member of the Legislature
6820 J Street
Omaha, Nebraska 68117
Dear Senator Higgins:
This is in reply to your letter of December 26, 1980,
in which you state that you anticipate introducing a bill
to make it illegal for county governments to make donations
to private corporations, etc. You inquire if there are
any laws already on the books which would make such legislation
redundant.
So far as we know there is no specific legislation
which would cover the problem indicated. The Nebraska
Constitution does have certain limitations but questions
still arise as to their applicability.
For example, Article XIII, Section 3, of the Nebraska
Constitution provides in part, The credit of .he state shall
never be given or loaned in aid of any individual, association,
or corporation, . .
There is still a question of interpretation whether or
not any particular expenditure is for a public purpose and
therefore authorized to be elxpended by the county, city or
governmental subdivision involved. In the case of United
Community Services vs. The Omaha National Rank and 95i 6iaha
Public Power District, 162 Neb. 786, the pledge of a donation
by the power district to the United Community Services was
involved inasmuch as the power district was a governmental
subdivision. The Supreme Court of Nebraska first stated that

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