Answer

Any use of public property must comport with the requirements of Article VII, §14 of the Louisiana Constitution. To determine whether these requirements are met, the courts and the Attorney General use the Cabela’s Test. Under the Cabela’s Test, in order for the uncompensated use of the building or portion of the building to not be considered an impermissible donation, the public entity must show: 1. That there is a public purpose served for which it is authorized to pursue; 2. That the transaction on its face does not appear to be wholly gratuitous; and 3. That the public entity has a reasonable expectation of receiving an equal or greater benefit than the value of the uncompensated use being given up. As long as the public entity is able to satisfy the three prongs of the Cabela’s Test, the use by the local civic organizations would likely be a permissible. A written CEA is definitely recommended to ensure that the uncompensated use of the building or portion of the building is in compliance with Article VII, §14 of the Louisiana Constitution. A written CEA also provides the public entity with a mechanism to define the use of the building or portion of the building and protect itself against unintended use. The public entity should also ensure that any uncompensated uses of its buildings are not for political purposes, to avoid any potential violations of Article VII, §14 of the Louisiana Constitution. Louisiana Legislative Auditor website: 05/18/2024 10:15:16 PM