California Attorney General Opinion 25-603

CourtCalifornia Attorney General Reports
DecidedMay 27, 2026
Docket25-603
StatusPublished

This text of California Attorney General Opinion 25-603 (California Attorney General Opinion 25-603) is published on Counsel Stack Legal Research, covering California Attorney General Reports primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Attorney General Opinion 25-603, (Cal. 2026).

Opinion

TO BE PUBLISHED IN THE OFFICIAL REPORTS

OFFICE OF THE ATTORNEY GENERAL State of California

ROB BONTA Attorney General

_______________

: OPINION : : No. 25-603 of : : May 27, 2026 ROB BONTA : Attorney General : : CATHERINE BIDART : Deputy Attorney General :

The HONORABLE JOHN-CARL VALLEJO, INYO COUNTY COUNSEL, has requested an opinion on a question relating to county treasury deposits.

QUESTION PRESENTED AND CONCLUSION

Government Code section 27011 prohibits county officers from depositing money into the county treasury “from any private and unofficial source,” and makes doing so a crime. Does the deposit prohibition in that statute apply to: (a) funds from a federal or state government grant program that is administered by a nonprofit entity that receives the grant money from the government and then distributes the grant funds to the county (and other grant recipients) pursuant to the terms of the grant program, or (b) gifts or donations to a county from a nongovernmental entity or individual?

(a) No, the deposit prohibition in section 27011 does not apply to government grant money distributed to a county through a nongovernmental intermediary that administers the grant program. The word “source” means “originator” or “first cause,” and under each meaning, the “source” of the money is the government: The “originator” of the grant money is the government, and the “first cause” of that money is a government enactment creating the grant. In circumstances where the government distributes grant funds to a nongovernmental intermediary, which then distributes the funds to the county as a grant recipient pursuant to the terms of the grant program, the

1 25-603 funds are still “sourced” from the government. Because the government is a public entity, the money for deposit is not from a “source” that is “private and unofficial.”

(b) No, the deposit prohibition in section 27011 does not apply to gifts or donations to a county from a nongovernmental entity or individual if a county board of supervisors (or its delegate) exercises its authority under Government Code section 25355 to accept the gift or donation, which the treasurer may then receive into the treasury under section 27010 of that code. But if the gift or donation is not accepted under those gift statutes, the deposit prohibition would apply.

BACKGROUND

California counties receive funding from a variety of sources. Relevant here, counties may receive funding from federal or state grant programs. 1 As a federal government website explains, a “grant is a way the government funds your ideas and projects to provide public services and stimulate the economy. Grants support critical recovery initiatives, innovative research, and many other programs . . . .” 2 California also provides state grant opportunities. 3

Although multiple forms of grants exist, in this opinion we consider a federal or state government-funded grant that is awarded to a county through a nongovernmental intermediary. 4 In this scenario, the government defines the terms of the grant program and provides the funding but does not itself determine the grant recipients. Instead, the government partners with a nonprofit entity that administers the grant program. The government distributes the grant money to the nonprofit, which then identifies grant recipients based on the program’s terms and distributes the funds to those recipients, such as the county. The nonprofit thus acts as an intermediary, facilitating grant distribution.

1 See Letter from Inyo County Counsel John-Carl Vallejo to then Senior Assistant Attorney General Marc J. Nolan (June 10, 2025), pp. 1-4, 10 (Requestor Letter), on file. Because the request letter poses questions concerning grant programs that have since been defunded, our analysis is generalized and does not refer to specific grant programs. 2 Grants.gov, Grants 101, https://www.grants.gov/learn-grants/grants-101 (as of May 26, 2026). 3 See California Grants Portal, https://www.grants.ca.gov/ (as of May 26, 2026). 4 See Requestor Letter, supra, pp. 1-4, 10; Grants.gov, Grant Programs, https://grants.gov/ (as of May 26, 2026) (“When considering grants, these programs can be broadly categorized as those awarded by the federal government and those awarded by non-federal entities. Within these two categories are a variety of funding sources and program types”).

2 25-603 Counties may also receive funding through gifts or donations from private parties. Two state statutes expressly regulate a county’s acceptance of gifts. 5 Government Code section 25355 authorizes a county to accept a gift made “for any public purpose,” if specified requirements are satisfied. And section 27010 authorizes the treasurer to receive an accepted gift.

The question here is whether county officers may deposit funds from these sources into the county treasury without violating Government Code section 27011. Section 27011 prohibits county officers from depositing money into the treasury “from any private and unofficial source,” and makes doing so a crime. 6 Part (a) of the question here asks whether section 27011 prohibits the deposit of government-funded grants that are distributed to the county through a nongovernmental entity. Part (b) asks whether the statute prohibits the deposit of a gift or donation from a nongovernmental entity or individual. We conclude that the statute permits deposits in both scenarios. 7

ANALYSIS

To answer the question before us, we must determine the meaning of a state law enacted by the Legislature, Government Code section 27011. The Legislature has expressly provided that the interpretation of statutes in that code is governed by “rules of construction.” 8 Those rules instruct us to start with the statute’s words, because they are “generally the most reliable indicator of legislation’s intended purpose.” 9 To do so, “[w]e consider the ordinary meaning of the relevant terms, related provisions, terms used in other parts of the statute, and the structure of the statutory scheme.” 10 If the words may be interpreted reasonably in more than one way, we may then consider other indicia of intent, such as legislative history and public policy. 11

The statute in question, section 27011, prohibits county officers from knowingly accepting or allowing a deposit into the county treasury “from any private and unofficial

5 Gov. Code, §§ 25355, 27010. 6 Gov. Code, § 27011. All further statutory references are to the Government Code. 7 In this opinion, we address only a specific question interpreting Government Code section 27011; we do not address any other circumstance involving the genesis of grant funds, nor do we address property law questions about ownership of the funds. 8 Gov. Code, § 5. 9 Prang v. Los Angeles County Assessment Appeals Bd. (2024) 15 Cal.5th 1152, 1170. 10 Ibid. 11 Ibid.

3 25-603 source.” 12 Officers who do so commit a misdemeanor and forfeit their office. 13 The statute states:

Any county officer who knowingly accepts or allows any deposit in the county treasury of money from any private and unofficial source is guilty of a misdemeanor, punishable by imprisonment . . . or by a fine . . ., and shall forfeit his or her office.[14]

No court or similar authority has interpreted the statute.

On its face, the statute reflects a well-established policy that public resources may be used for public purposes only. 15 Because the county treasury is a public resource, county officers may not use it for private purposes—such as unauthorized private banking, bribery, or other unlawful acts. 16 Section 27011 guards against such private use of the public purse by prohibiting deposits “from any private and unofficial source.” 17

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California Attorney General Opinion 25-603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-attorney-general-opinion-25-603-calag-2026.