xt7jws8hhr04 https://exploreuk.uky.edu/dips/xt7jws8hhr04/data/mets.xml South Dakota United States. Works Progress Administration Lowe, Robert C.(Robert Chapin), 1907- Lander, David S. 1936 15 p.; 27 cm. UK holds archival copy for ASERL Collaborative Federal Depository Program libraries. Call Number Y 3.W 89/2:36/So 8d books English Washington DC: Works Progress Administration This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. South Dakota Works Progress Administration Publications Public welfare -- Law and legislation -- South Dakota Social workers -- Legal status, laws, etc. -- South Dakota Constitutional law -- South Dakota Analysis of Constitutional Provisions Affecting Public Welfare in the State of South Dakota text Analysis of Constitutional Provisions Affecting Public Welfare in the State of South Dakota 1936 1936 2019 true xt7jws8hhr04 section xt7jws8hhr04 ' (/ ,1, a ‘ ‘ I
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W 0 R K S P R 0 G R E S S A D M I N | S T R A T I O N
HARRY L. HOPKINS, ADMINISTRATOR I
I, CORRINGTON GILL HOWARD B. MYERS, DIRECTOR
, ASSISTANT ADMINISTRATOR DIVISION OF SOCIAL RESEARCH
. UNIVERSIT? MEN;arse
ANALYSIS OF CONSTITUTIONAL PROVISIONS
AFFECTING PUBLIC WELFARE IN THE STATE OF ‘
SOUTH DAKOTA
I 7 NOVEMBER 15, 1956

 PREPARED BY '
ROBERT C. Lowe AND DAVID S. LANDER
LEGAL RESEARCH SECTION
UNDER THE SUPERVISION OF 1
A. Ross ECKLER, COORDINATOR OF SPECIAL INQUIRIES
DIVISION OF SOCIAL RESEARCH

 Preface

This bulletin is one of a series presenting
State constitutional provisions affecting public wel—
fare, prepared to supplement the State by State di-
gests of public welfare laws so as to provide in ab—
stract form the basis for the public welfare services
of the several States.

The provisions quoted are those concerned
directly with public welfare administration and such
others as may substantially affect a public welfare
program, even though only indirectly related. It
would be impossible to consider within the lindts of
this study every remotely connected constitutional
provision. The indirectly related provisions in-
cluded, therefore, have been restricted to those con—

. cerning finance, legislation, and the methods of con-
stitutional amendment.

An attempt has been made, by a careful se-
lection of the most recent cases decided by the high-
est courts of the States, to indicate wherever possi—
ble how these provisions have been construed. These
cases are included in footnotes appended to the con-
stitutional provisions shown.

It is hoped that these abstracts will be

' useful to those interested in public welfare ques-
tions in indicating how State and local public wel—
fare administration may be affected by constitutional
powers and limitations.

 South Dakota
TABLE OF CONTENTS
Page
Incidence of Responsibility for Welfare Program 1
. Financial Powers and Limitations

_ Taxation and Assessments l
Exemptions 6
Borrowing and Use of Credit '7
Other Income 11
Appropriations and Expenditures 11
Provisions Affecting Legislation 12
Constitutional Amendment or Revision 15

 ANALYSIS OF CONSTITUTIONAL PROVISIONS AFFECTING
. PUBLIC WELFARE IN SOUTH DAKOTA l/
I. Incidence of Responsibility for Welfare Program

A. The charitable and penal institutions of the state of
South Dakota shall consist of a penitentiary, insane hospital, a
school for the deaf and dumb, a school for the blind and a reform
school. 3/

B. The state institutions provided for in the preceding
section shall be under the control of the state board of charities
and corrections, under such rules and restrictions as the legis-
lature shall provide; . . . 3/

II. Financial Powers and Limitations ‘

A. Taxation and Assessments

(1) State
(a) The legislature shall provide for an annual
tax, sufficient to defray the estimated ordinary expenses of the
state for each year, not to exceed in any one year two mills on
each dollar of the assessed valuation of all taxable property in
the state, to be ascertained by the last assessment made for state
. and county purposes. '

And whenever it shall appear that such
ordinary expenses shall exceed the income of the state for such
year, the legislature shall provide for levying a tax for the
ensuing year, sufficient, with other sources of income, to pay the
deficiency of the preceding year, together with the estimated ex-
penses of such ensuing year. And for the purpose of paying the
public debt, the legislature shall provide for levying tax annually,
sufficient to pay the annual interest and the principal of such
debt within ten years from the final passage of the law creating the
1. Constitution, (1889), with all amendments to November 10, 1936.
2. Constitution, Art. XIV, Sec. 1.

3. Constitution, Art. XIV, Sec. 2.

Under this section the control of penal and charitable
institutions of the State of South Dakota is under one board
and its authority covers the construction of a necessary build-
ing at a home for the feeble-minded. State vs. Halladay,

62 S. D. 256, 252 N. W. 733 (1934).

 2. South Dakota
II. Financial Powers and Limitations (Cont'd) .
A. Taxation and Assessments (Cont'd)
(1) State (Cont'd)

debt; provided, that the annual tax for the payment of the interest
and principal of the public debt shall not exceed in any one year
two mills on each dollar of the assessed valuation of all taxable
property in the state, as ascertained by the last assessment made
for the state and county purposes . . . 4/

(b) To the end that the burden of taxation may
be equitable upon all property, and in order that no property which
is made subject to taxation shall escape, the legislature is
empowered to divide all property including moneys and credits as
well as physical property into classes and to determine what class
or classes of property shall be subject to taxation and what prop-
erty, if any, shall not be subject to taxation. Taxes shall be
uniform on all preperty of the same class, and shall be levied and
collected for public purposes only. Taxes may be imposed upon any
and all property including privileges, franchises and licenses to
do business in the state. Gross earnings and net incomes may be
_.____.__.______________.._______._____________________________________.

4. Censtitution, Art. XI, Sec. 1. .

The portion of this section limiting taxation for ordinary
expenses to two mills on each dollar of the assessed valuation
relates only to ad valorem.property taxes, and does not relate
to other sources of State revenue. So this limitation does
not apply to a tax imposed on gross receipts. State vs. Welsh,
61 S. D. 593, 251 N. W. 189 (1933).

This section contemplates three distinct items of taxa-
tion: (1) The annual tax for "the estimated ordinary expenses
of the state"; (2) taxation to pay deficiencies from preceding
years; (3) taxation to pay the public debt. The Legislature
is limited to a two mill tax for the first and third items
mentioned; but when a deficiency is shown to exist, the Legis-
lature has power to levy an assessment sufficient to meet the
deficiency without regard to the two mill limitation.

Furthermore the two mill limitation applies only to those
appropriations coming within the general appropriation bill
as defined by Art. XII, Sec. 2 of the Constitution, and
appropriations for extraordinary and emergency cases are not
limited by this or other sections. In re Limitation of Taxation,
3 S. D. 456, 54 N. W. 417 (1893), see page 12, footnote 20.

 South Dakota 3.
\
. 11. Financial Powers and Limitations (Cont 'd)
A. Taxation and Assessments (Cont'd)

(1) State (Cont'd) '
considered in taxing any and all property, and the valuation of
property for taxation purposes shall never exceed the actual value
thereof. The legislature is empowered to impose taxes upon incomes
and occupations, and taxes upon incomes may be graduated and pro-
gressive and reasonable exemptions may be provided. é]
_________.__________________________________._.__._______._.___________.
5. Constitution, Art. XI, Sec. 2, as amended 1918.

. This section relates exclusively to the ordinary property
tax, and not to an inheritance tax which is a tax upon the trans-
mission of preperty. In re McKennan's Estate, 25 S. D. 569,

126 N. W. 611 (1910).

' The 1918 amendment to this section obliterated the words
"all taxes shall be equal and uniform” and the present require—
ment is only that property of the same class shall be taxed
uniformly. Commercial State Bank vs. Wilson, 53 S. D. 82,

220 N. W. 152 (1928).

Classification for taxation must be based on differences
which furnish a reasonable ground for distinction between classes.

. There is no such ground for distinguishing between agricultural '

land in a school district and other real estate therein.
Simmons vs. Ericson, 54 S. D. 429, 223 N. W. 342 (1929),
see page 4, footnote 7.

The Governor sought the opinion of the Supreme Court as to
whether the Legislature could enact legislation which would
enable the State to appropriate money hereafter raised by any
form of taxation for furnishing aid in the form of feed or feed
loans to the citizens who might need same for carrying their
livestock through the winter. The Court held such legislation
would be unconstitutional under this section because the tax
would not be for a ”public purpose", since it was for the bene-
fit of one class or occupation. In re Opinion of Judges, 59 S. D.
469, 240 N. W. 600 (1932).

Yet a statute providing a fund to be used for the State's
loaning money to settlers was held to be a "public purpose"

, under this section since the promotion of land settlement bene-
fits the whole State. Wheelon vs. South Dakota Land Settlement
Board, 43 S. D. 561, 181 N. W. 359 (1921).

Also an appropriation for the relief of a militiamen
injured at a militia encampment while off duty, was held to be for a
"public purpose" and not a gift nor a charity, on the ground
that it would tend to create a more efficient State militia.
Nancolas vs. Jones, 47 S. D. 157, 196 N. W. 749 (1924).
(Footnote forwarded)

 4. South Dakota
II. Financial Powers and Limitations (Cont'd) .
A. Taxation and Assessments (Cont'd)
(1) State (Cont'd)

(c) No tax or duty shall be imposed without the
consent of the people or their representatives in the legislature,
and all taxation shall be equal and uniform. é/

(d) The Legislature shall make such provision
by general taxation and by authorizing the school corporations to
levy such additional taxes as with the income from the permanent
school fund shall secure a thorough and efficient system of
common schools throughout the state. The Legislature is empowered
to classify properties within school districts for purposes of
school taxation, and may constitute agricultural lands a separate
class. Taxes shall be uniform on all properties in the same
class. 2/

(2) Counties

No provisions, but see footnote 8, page 5.
______________._________________.________.___.________________________
(Footnote #5 - Continued) .

Under this section as amended in 1918 the entire matter
of classification and exemption is left in the hands of the
Legislature, and the limitations upon the legislative power of
exemption existing formerly under Constitution, Art. XI, Sec. 7,
is abrogated. Dakota Lodge No. I, I.0.0.F. vs. Yankton County,
54 S. D. 402, 223 N. W. 550 (1929); State vs. Johns, 43 S. D.
279, 178 N. W. 945 (1920); see page 7, footnote 13.

6. Constitution, Art. VI, Sec. 17.

The last clause of this section: ”and all taxation shall
be equal and uniform", has been obliterated from the Consti-
tution by the adoption of Amended Art. XI, Sec. 2, see page 2,
Sec. II, par. A, (l), (b). South Dakota Land Settlement Board,
43 S. D. 551, 181 N. W. 359 (1921).

7. Constitution, Art. VIII, Sec. 15, as amended 1930.

This section was amended subsequent to a decision stating
that classification for taxation must be based on differences
which furnish a reasonable ground for distinction between
classes, and that there is no such ground for distinguishing
between agricultural land in a school district and other real
estate therein. Simmons vs. Ericson, 54 S. D. 429, 223 N. W.
542 (1929]. See page 3, footnote 5.

 South Dakota 5.
. II. Financial Powers and Limitations (Cont'd)
A. Taxation and Assessments (Cont'd)
(3) Other Local Units

(a) . . . The legislature shall restrict the power
of such (municipal) corporations to levy taxes and assessments,
borrow money and contract debts, so as to prevent the abuse of such
power. 8/

(b) Except as otherwise provided in this constitution,

V no tax or assessment shall be levied or collected, or debts contracted
by municipal corporations, except in pursuance of law, for public
purposes specified by law; nor shall money raised by taxation, loan or
assessment, for one purpose ever be diverted to any other. 2/

(c) The legislature may vest the corporate authority
of cities, towns and villages, with power to make local improvements
by special taxation of contiguous property or otherwise. For all
corporate purposes, all municipal corporations may be vested with
authority to assess and collect taxes; but such tax shall be uniform
in respect to persons and property within the jurisdiction of the
body levying the same. 19/

8. Constitution, Art. X, Sec. 1.

. The term "municipal corporations" in this section is used
in its strict and proper sense, and only includes cities, towns,
and villages. Sanders vs. Independent School District of City
of Sioux Falls, 35 s. D. 48, 150 N. w. 473 (1915).

The limit of taxation which counties may levy is neverthe-
less fixed by statute. Under this statute it was held that
the limit does not apply to taxes levied for the purposes of
paying interest and principal on bonded indebtedness. Rowe vs.
Stanley County, 52 S. D. 516, 219 N. W. 122 (1928).
9. Constitution, Art. X, Sec. 2.

The contraction of a debt forxa municipal telephone system
and the imposition of taxes therefor are for a lawful public
purpose. Spengler vs. City of Mitchell, 35 S. D. 335, 152 N. W.
339 (1915).

Ordinance transferring revenues derived from the Operation
of a municipal waterworks system to other municipal funds held
not to contravene this section because compensation paid to
municipality for water is not a tax. Travallie vs. City of
Sioux Falls, 59 S. D. 391, 240 N. W. 336 (1932).

10. Constitution, Art. XI, Sec. 10.

The latter clause of the second sentence refers only to
taxes levied for general corporate purposes and not to the
special taxes or assessments included in the first sentence.
Haggart vs. Alton, 29 S. D. 509, 137 N. W. 372 (1912).

 6. South Dakota
II. Financial Powers and Limitations (Cont'd) .
B. Exemptions
(1) State

(a) The property of the United States and of the
State, County and Municipal Corporations, both real and personal,
shall be exempt from taxation; provided, however that all state
owned lands acquired under the provisions of the Rural Credit Act
may be taxed by the local taxing districts for county, township and
school purposes, in such manner as the Legislature may provide. 11/

(b) The legislature shall, by general law, exempt
from taxation, property used exclusively for agricultural and
horticultural societies, for school, religious, cemetery and
charitable purposes, and personal property to any amount not
exceeding in value two hundred dollars for each individual liable
for taxation. 12/
.__________._________________.___________________________.________________
11. Constitution, Art. XI, Sec. 5, as amended in 1950.

Special assessments for local improvements are not taxes
within the meaning of this section; and property of the state,
county or city is subject to such special assessments.
Whittaker vs. City of Deadwood, 23 s. D. 538, 122 N. w. 590 .
(1909).

Property to which the State holds mere legal title under
circumstances such that the beneficial interest is in a third
person is not exempt. State vs. Board of Commissioners, 53
S. D. 609, 222 N. W. 585 (1928).

12. Constitution, Art. XI, Sec. 6.

A statute allowing a personal property exemption of $500
is valid since Art. XI, Sec. 2 of the Constitution as amended
in 1918 abrogates this section. State vs. Johns, 45 S. D. 279,
178 N. W. 945 (1920), see page 5, footnote 5, and page 7,
footnote 13.

Under the present Constitution and existing statutes all
property owned by religious, educational, charitable or benev-
slant societies, regardless of its character, extent or the
purposes for which it is used, as well as all property used
exclusively for charitable, benevolent, religious, or
educational purposes, is exempt from taxation. In re Dakota
Wesleyan University, 48 S. D. 84, 202 N. W. 284 (1925), see
page 5, footnote 5, and page 7, footnote 1%;

A hospital which extended treatment free to paupers,
charging for its services to others to the extent to which
they were able to pay, treating about five percent charity
patients and 95 percent pay patients, held a charitable
corporation whose property was exempt from taxation.

Lutheran Hospital Association of South Dakota vs. Baker,
40 S. D. 226, 167 N. W. 148 (1918). .

 South Dakota 7.
. II. Financial Powers and Limitations (Cont'd)
B. Exemptions (Cont'd) -
(1) State (Cont'd)
(c) All laws exempting property from taxation
other than that enumerated in sections 5 and 6 of this article,
shall be void. 13/
(2) Counties and Other Local Units
See page 6, par. II, B, (l), (a).
C. Borrowing and Use of Credit
(1) State
(a) For the purpose of developing the resources
and improving the economical facilities of South Dakota, the state
may engage in works of internal improvement, may own and conduct
proper business enterprises, may loan or give its credit to, or in
aid of, any association, or corporation, organized for such pur—
poses . . . The state may also assume or pay any debt or liability
incurred in time of war for the defense of the state. The state
. may establish and maintain a system of rural credits and thereby
loan and extend credit to the people of the State upon real estate
security in such manner and upon such terms and conditions as may
. __________________________________________~__________________________
13. Constitution, Art. XI, Sec. 7.
This section together with sections 5 and 6 relate ex-
clusively to property taxes. The inheritance tax law of
1905 does not contravene this section in providing for exemp-
tions other than those set out in this section because an
inheritance tax is not a tax on property, but a tax on the
‘ transmission of property. In re McKennan's Estate, 25 S. D.
369, 126 N. W. 611 (1910).
The amendment to Art. XI, Sec. 2, of the Constitution
approved in 1918 reading "the Legislature is empowered . . .
to determine . . . what property, if any, shall not be sub-
ject to taxation”, abrogatas any limitation upon the legisla—
tive power of exemption previously existing by the terms of
this section; and leaves the entire matter of classification
and exemption in the hands of the Legislature subject of
course, to reasonableness of classification and uniformity
- within the class. In this ease a statute allowing a personal
exemption of $500 was held valid. State vs. Johns, 43 S. D.
279, 178 N. W. 945 (1920); cited with approval in Dakota Lodge
No. I. I.0.0.F. vs Yankton County, 54 S. D. 402, 223 N. W.
. 330 (1929), see page 3, footnote 5; and page 6, footnote 12.

 8. South Dakota
II. financial Powers and Limitations (Cont'd) .
C. Borrowing and Use of Credit (Cont'd)
(1) State (Cont'd) _
be prescribed by general law. The limit of indebtedness contained in
section 2 of this article shall not apply to the provisions of this
section, but the indebtedness of the state for the purposes contained
in this section shall never exceed one-half of one percent of the
assessed valuation of the preperty of the state, provided however,
that nothing contained in this section shall effect the refinancing
or refunding of the present outstanding indebtedness of this State. 15/
_____________________________________________________________________________
14. Constitution, Art. XIII, Sec. 1, as amended, November 3,
1936.
There are numerous specific exceptions to the general limita-
tions on borrowing authorized by means of amendments to the Con-
stitution, part of which are set out here and the remainder under
footnote 15, page 9.
The State may engage in the manufacture, sale and distri-
bution of electric current, and may pledge its credit for such
purposes "any provision in this Constitution to the contrary
notwithstanding". Constitution, Art. XIII, Sec. 12'and 13,
adopted 1918.
The manufacture of electricity is a work of internal im— .
provement but by the provisions of sections 12 and 15 the State
intended to remove this type of internal improvement from the
operation of any other section of the Constitution, including
the debt limitation of one—half of one percent of this section.
In re Opinion of Judges, 43 S. D. 635, 177 N. W. 812 (1920).
Similarly the State may engage in the manufacture, dis-
tribution and sale of cement and cement products, and may
pledge its credit for such purposes "any provision in this
constitution to the contrary notwithstanding". Constitution,
Art. XIII, Sec. 10 and 11, adopted 1918. v
Sections 10 and 11, above, take the cement business out
of the operation of this section so that the limit of one-
‘half of one percent does not apply to borrowing for cement
plants. In re Opinion of Judges, 45 S. D. 648, 180 N. W. 957
(1920).
The State may engage in the mining, distribution, and sale
of coal, and may pledge its credit for such purposes "any provi-
sion in this constitution to the contrary notwithstanding".
Constitution, Art. XIII, Sec. 14 and 15, adopted 1918.
The Rural Credits Law authorizing the State to borrow money
to be loaned on real estate security and to make up any defi-
ciency by taxation does not create a debt within the meaning of
the Constitution since the State's obligations will probably be
discharged from money received frOm the borrowers, and payment
by means of a tax levy is not a likely contingency. Consequently .
(Footnote forwarded)

 South Dakota ' 9.
. II. Financial Powers and Limitations (Cont'd)
C. Borrowing and Use of Credit (Cont'd)
(1) State (Cont'd)

(b) For the purpose of defraying extraordinary
expenses and making public improvements, or to meet casual deficits
or failure in revenue, the state may contract debts never to ex~
ceed with previous debts in the aggregate one hundred thousand
dollars, and no greater indebtedness shall be incurred except for
the purpose of repelling invasion, suppressing insurrection, or
defending the state or the United States in war and provision shall
be made by law for the payment of the interest annually, and the
principal when due, by tax levied for the purpose or from other
sources of revenue; which law providing for the payment of such
interest and principal by such tax or otherwise shall be irrepeal-
able until such debt is paid: . . . gg/

. . (Footnote #14 - Continued)
there are no limitations on the amount of money that may be
borrowed by the South Dakota Rural Credit Board on the good
faith and credit of the State. In re Opinion of Judges,
38 S. D. 635, 162 N. W. 536 (1917).
The loaning of money by the State to land settlers as pro-

. vided by Laws of 1919, c. 315 is a "business enterprise"
warranted by this section because it tends to the development
of the resources of the State. Wheelon vs. South Dakota Land
Settlement Board, 43 S. D. 551, 181 N. W. 359 (1921).

But the business of retailing gasoline by the State is not
a "business enterprise" warranted by this section because it
does not develop resources and improve economic facilities of
the State. White Eagle Oil and Refining Company vs. Gunderson,
48 S. D. 608, 205 N. W. 614 (1925).

15. Constitution, Art. XIII, Sec. 2.

Losses sustained through mismanagement of the permanent
school fund may be replaced by selling bonds and such indebted-
ness shall not be counted as a part of the indebtedness limited
in this section. Constitution, Art. VIII, Sec. 13.

The State may borrow up to six million dollars for the pur-

' pose of compensating service men of the World War, and such
indebtedness shall not be counted within the limits of this
section. Constitution, Art. XIII, Sec. 18, adopted 1920.

The State may establish and maintain a system of credits
for assisting in the building of homes by the people of this
State. The limitations of this section shall not apply to such
credits. Constitution, Art. XIII, Sec. 17, adopted 1920.

Also the limitations of this section do not apply to the
enterprises undertaken under Art. XIII, Sections 10, ll, 12
and 13. In re Opinion of Judges, 43 S. D. 648, 180 N. W. 957
(1920), and in re Opinion of Judges, 43 S. D. 635, 177 N. W.

. 812 (1920), see page a, footnote 14.
(Footnote forwarded)

 10. South Dakota '

II. Financial Powers and Limitations (Cont 'd) .

C. Borrowing and Use of Credit (Cont'd)
(2) Counties and Other Local Units
(a) The debt of any county, city, town, school

district, civil townships or other subdivision, shall never exceed

five (5) per centum upon the assessed valuation of the taxable

property therein, for the year preceding that in which said in-

debtedness is incurred . . .

Provided, that any county, municipal corpor—
ation, civil township, district, or other subdivision may incur an
additional indebtedness, not exceeding ten per centum upon the
assessed valuation of the taxable property therein, . . ., for the
purpose of providing water and sewerage, for irrigation, domestic
uses, sewerage and other purposes; and

Provided, further, that in a city where the
population is eight thousand or more, such city may incur an in-
debtedness not exceeding eight per centum upon the assessed valua-
tion of the taxable property therein . . . for the purpose of
constructing street railways, electric lights or other lighting plants.

Provided, further, that . . . no such debt
shall ever be incurred for any of the purposes in this section
provided, unless authorized by a vote in favor thereof by a
majority of the electors of such county, municipal corporation, .
civil township, district or subdivision incurring the same. lg]
(Footnote #15 — Continued)

Appropriations from the assessed but uncollected revenues
of the State, and the issuance of warrants in pursuance thereof,
to defray current expenses, is not the incurring of an indebted—
ness within the meaning of this section. Revenues of the State,
assessed and in process of collection, are to be considered as
constructively in the treasury. In re State Warrants, 6 S. D.
518, 62 N. W. 101 (1895).

16. Constitution, Art. XIII, Sec. 4, as amended 1902.

Warrants for current expenses during any fiscal year may
be issued in anticipation of and within the limits of a law-
ful tax levy for such purposes for such period, even though
such levy has not yet been collected, and the issuance of such
warrants will not be deemed the incurring of an indebtedness
within the meaning of this section. This doctrine is firmly
entrenched in the law of South Dakota. Western Surety Company
vs. Mellette County, S D. —, 257 N. W. 461 (1934).

Where a sewer system was financed entirely by special
assessments payable in installments, bonds which were payable
solely out of these special assessments and were not a general
obligation of the city do not constitute a "debt" within the
meaning of this section for the reason that these bonds will be
paid by the funds to be collected from these special assessments,
and not by general taxes. Gross vs. City of Bowdle, 44 S. D. .
152, 182 N. W. 629 (1921).

(Footnote forwarded)

 South Dakota 11.
. II. Financial Powers and Limitations (Cont'd)
O. Borrowing and Use of Credit (Cont'd)
(2) Counties and Other Local Units (Cont'd)
(b) Any city, county, town, school district or
any other subdivision incurring indebtedness shall, at or before
the time of so doing, provide for the collection of an annual tax
sufficient to pay the interest and also the principal thereof when
due, and all laws or ordinances providing for the payment of interest
or principal of any debt shall be irrepealable until such debt be
paid. 12/
D. Other Income
All proceeds of the sale of public lands that have hereto-
fore been or may hereafter be given by the United States for the use
of public schools in the state; all such per centum as may be granted
by the United States on the sales of public lands; the proceeds of all
property that shall fall to the state by escheat; the proceeds of all
gifts or donations to the state for public schools or not otherwise
appropriated by the terms of the gift; and all property otherwise
acquired for public schools, shall be and remain a perpetual fund for
the maintenance of public schools in the state. It shall be deemed a
. trust fund held by the state. The principal shall forever remain in-
violate, and may.be increased, but shall never be diminished, and the
state shall make good all losses thereof which may in any manner occur. lg/
E. Appropriations and Expenditures
(1) State
(a) All taxes levied and collected for state pur—
poses shall be paid into the state treasury. No indebtedness shall
- be incurred or money expended by the state, and no warrant shall be
drawn upon the state treasurer except in pursurance of an appropri-
_ ation for the specific purpose first made . . . 12/
(Footnote ¥16 - Continued;

A majority of those voting is not sufficient under this
section; a majority of all the electors is required. William-
son vs. Aldrich, 21 S. D. 15, 108 N. W. 1065 (1906).

17. Constitution, Art. XIII, Sec. 5.
18. Constitution, Art. VIII, Sec. 2.

Another section adds that the proceeds of all fines collected
from violation of State laws shall be used for school purposes.
Constitution, Art. VIII, Sec. 3.

Another section provides that specific gifts and grants
shall be set up as trust funds for the purpose given. Consti-
tution, Art. VIII, Sec. 7.

. 19. Constitution, Art. XI, Sec. 9.
(Footnote forwarded)

 12. South Dakota '
II. Financial Powers and Limitations (Cont'd) .
E. Appropriations and Expenditures (Cont'd) ,
(1) State (Cont'd)

(b) No money shall be paid out of the treasury ex-
cept upon appropriation by law and on warrant drawn by the proper
officer. 29/

(2) Counties and Other Local Units
No provisions. ,
III. Provisions Affecting Legislation
A A. Regular Sessions of the Legislature
(1) . . . The sessions of the legislature shall be
biennial except as otherwise provided in this constitution. 21/
(2) . . . Each regular session of the legislature shall
not exceed sixty days, except in cases of impeachment, . . . 22]
E. Special Sessions of the Legislature
. . . He (The Governor) shall have power to convene the .
legislature on extraordinary occasions . . . EE/
(Footnote #19 - Continued) .
The clause "no indebtedness shall be incurred . . .
except in pursuance of an appropriation for the specific pur-
pose first made" must be read and construed with Art. XIII.
Sec. 1 of the Constitution, see page 7, Sec. II, par. C, (l), (a).
In times of emergency, indebtedness may be incurred without
first calling together the Legislature to make an appropriation.
Thus a statute granting $75 compensation to each soldier in the
Mexican War of 1916-1917 was valid although when the obligation
was incurred no appropriation had been made. State vs. Handlin,
58 S. D. 550, 162 N. W. 379 (1917).
20. Constitution, Art. XII, Sec. 1.
21. Constitution, Art. III, Sec. 2.
The Legislature meets on the first Tuesday after the first
' Monday of January in the year next ensuing after the election of
members thereof. Constitution, Art. III, Sec. 7.
22. Constitution, Art. III, Sec. 6.
25. Constitution, Art. IV, Sec. d.

 South Dakota 13.

. III. Provisions Affecting Legislation (Cont'd)

C. Powers of Initiative and Referendum
The legislative power of the state shall be vested in a
legislature which shall consist of a senate and a house of represent-
atives, except that the people expressly reserve to themselves the
right to propose measures, which measures the legislature shall enact
and submit to a vote of the electors of the state, and also the right
to require that any laws which the legislature may have enacted shall
be submitted to a vote of the electors of the state before going into
effect, except such laws as may be necessary for the immediate prea-
ervation of the public peace, health or safety, support of the state
government and its existing public institutions: Provided, that not
more than five per centum of the qualified electors of the state shall
be required to invoke either the initiative or the referendum . . .
The ve