Friday, February 9, 2024

SD Supreme Court Addresses Contracts for State Legislators

 

 

NOTE:  This case was orally argued yesterday.

 

The SD Supreme Court handed down one decisions this afternoon, holding, inter alia:

 

  1. Contracts for State Legislators Addressed;

 

 

Summary follows:

 

IN THE MATTER OF THE INTERPRETATION OF SOUTH DAKOTA CONSTITUTION AND STATE LAW RE: STATE LEGISLATOR’S INTEREST IN STATE OR COUNTY CONTRACTS, 2024 S.D. 11:

 

The Court’s decision is authored by Chief Justice Jensen.  Justice Kern provided a separate opinion, dissenting in part.

The Court’s Final Conclusion, as expressed in ¶¶ 63-64 is as follows: 

 

Conclusion

 

[¶63.] This case presents an appropriate instance to exercise our advisory opinion jurisdiction under Article V, § 5. The current state of our decisional law concerning Article III, § 12 is not sustainable. Our holdings in Asphalt Surfacingand Pitts, which equated general appropriation for ordinary and current expenses with legislative authorization to enter into specific contracts, are contrary to well[1]established constitutional limits on general appropriation legislation set out inArticle XII, § 2 and our cases. These holdings expressed in Asphalt Surfacing and Pitts are, therefore, overruled.

 

[¶64.] Our answer to the Governor’s restated question whether Article III, § 12 prohibits all contracts between legislators and the State is: No, it does not. The ontract restriction stated in Article III, § 12 is not a categorical bar on all contracts funded by the State. Instead, it prohibits a legislator, or former legislator within one year following the expiration of the legislator’s term, from being interested, directly or indirectly, in contracts that are authorized by laws passed during the legislator’s term. The purpose and effect of general appropriation legislation is restricted to simply allocating money to fund state government; it does not, itself, authorize specific contracts relating to ordinary or current expenses.

 

Justice Kern filed a separate opinion in which she expresses a dissent in part and a concurrence in part.  Justice Kern’s view, as articulated in ¶67, is as follows:

 

[¶67.] I respectfully dissent from the portion of the majority opinion which overrules decades of established precedent to exempt general appropriations from Article III, § 12 of the South Dakota Constitution. This approach disregards the constitutional text and may ultimately prove difficult to interpret as the majority opinion adopts a capacious understanding of interest, prohibiting legislators from having any interest whatsoever—no matter how indirect or attenuated—in contracts authorized by special appropriations. Nevertheless, I join the majority opinion’s important holding that Article III, § 12 applies to “law[s] passed duringthe legislator’s term. . . not merely. . . laws for which the legislator cast a vote.” (Emphasis added.) Additionally, although I agree that the circumstances surrounding the Governor’s request indeed constitute a solemn occasion under Article V, § 5, which permits this Court to exercise our original jurisdiction, I question whether the submitted interrogatories present “important questions of law involved in the exercise of [her] executive power.” Rather, they seem more akin to questions from legislators regarding their individual concerns, which is not properly within the purview of an advisory opinion. See S.D. Const. art. V, § 5.

 

This decision may be accessed at

 

http://ujs.sd.gov/Supreme_Court/opinions.aspx .