January 25, 1977

The South Dakota Board of
  Natural Resource Development 
Foss Building 
Pierre, South Dakota 57501

Official Opinion No. 77-12

Lake Andes-Wagner Irrigation District bond issue

Dear Sirs:

I have received your request transmitted by Vern Butler, Secretary of the Department of Natural Resource Development, concerning my opinion pursuant to SDCL 46-14-37 (1967) on bonds of the Lake Andes-Wagner Irrigation District.  That statute states that after a court decree has been issued declaring the validity of both the district organization and the procedure for the bonds, the district board of directors shall prepare a written statement describing the district organization and bond issuing procedures and ending with the court decree.  The board of directors then 
    
shall present such written statement and the bonds to the water resources commission and such written statement shall be certified under oath by the board of directors of the district, and the water resources commission shall then examine such statement and the bonds so submitted to it, and after receiving the written opinion thereon of the attorney general, if the commission be satisfied that such bonds are in conformity with the law and are in all respects in due form, it shall record the statement and register the bonds in is office, and no such bonds shall be issued or be valid unless they shall be so registered and have endorsed thereon a certificate of the water resources commission, showing that such bonds are issued pursuant to law, the data filed in the office of such commission being the basis of such certificate.  SDCL 46-13-37 (1967).

The quasi-legislative, quasi-judicial, advisory, and special budgetary functions of the Water Resources Commission relating to arrangements or activities to promote water and related land development have been transferred to the Board of Natural Resource Development by SDCL 1-40-12 (Rev. 1974).

It is my opinion that the statement of the district board of directors has been properly certified by that board and has been properly transmitted to the Board of Natural Resource Development along with a copy of the court decree and a copy of the district board resolution containing the form of the bonds.  It is further my opinion that such statement and court decree reflect the proceedings surrounding the organization of the district and issuance of the bonds in sufficient detail.  This opinion, however, is not a determination of the legality of the irrigation district organization, bond proceedings or of any proceedings prior to the decree of the First Circuit Court filed November 22, 1976.  My opinion is so restricted to avoid reviewing the decision of the First Circuit Court.  The possible situation of nullifying or otherwise reversing the substance and effect of that court's decree is thereby also avoided.

Mr. Butler has indicated in his letter that the district has not complied with SDCL 46-13-30 (1976) which requires the submission of an annual report to the Board of Natural Resource Development.  This report is required to cover progress on the construction of irrigation works and the sufficiency of financing.  The Board of Natural Resource Development has accepted the monthly minutes of the district board as providing this information.  It is my opinion that the effect such irregularity may have on this bond issue is governed by the court decree and is outside the scope of my advice under SDCL 46-14-37 (1967).

I am herewith returning the materials concerning this matter submitted to me by Mr. Butler.

Respectfully submitted,

William J. Janklow
Attorney General

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