March 20, 1975
Colonel Dennis Eisnach, Superintendent
South Dakota Highway Patrol
118 West Capitol
Pierre, South Dakota 57501
OFFICIAL OPINION NO. 75-54
Questions concerning compensation certificates for tribal vehicles
Dear Colonel Eisnach:
You have asked several questions concerning compensation certificates for "tribal" vehicles. As general background, before answering your specific questions, the basic law on this subject has changed since the opinion found in 1965-66 AGR 68 which held that tribal vehicles were required to purchase compensation certificates. In 1974, the Legislature amended SDCL 32-5-42 to provide as follows:
Motor vehicles which are the property of this state, of the United States, of counties, municipal or public school corporations, Indian mission schools in this state, or of Indian tribes, may be registered upon application, in the manner provided for other motor vehicles, except that such application shall be made by the custodian of any such vehicle directly to the department of public safety. No fees shall be charged for the registration of such vehicle, and number plates therefor shall be furnished by the department upon payment to it of the actual cost of such plates. All costs collected under the provisions of this section shall be deposited in the license plate revolving fund and disbursements therefrom made by warrants drawn by the state auditor on vouchers duly approved by the department.
Therefore, it is my opinion that a tribally-owned vehicle may be licensed under SDCL 32-5-42 as a tax exempt vehicle. Since exceptions to statutes must be strictly construed, Mitchell Produce Co. v. Morrison, 63 S.D. 127, 257 N.W. 47 (1934), ownership is the key to the exception. No lease arrangement will satisfy the law. Lien v. Rowe, 77 S.D. 422, 92 N.W. 2d 922 (1958); 1941-42 AGR 158.
With regard to compensation certificates, SDCL 32-9-3 (3) exempts "public-owned" vehicles from the requirement of buying compensation certificates. The Legislature amended SDCL 1-24-1 (1) in 1974 to include the following definition:
"Public agency," any county, municipality, township, school district, conservancy subdistrict or drainage district of the state of South Dakota; any agency of South Dakota state government or of the United States; any political subdivision of another adjacent state; and any Indian tribe . . . .
(Emphasis added.)
Although this definition is found in the chapter on joint exercise of governmental powers, it shows that the Legislature intended to include Indian tribes as "public agencies." Since an Indian tribe is a public agency, any vehicles owned by it are public-owned vehicles exempt from motor carrier compensation. Again, there is no lease arrangement which will satisfy the law. Lien v. Rowe, 77 S.D. 422, 92 N.W. 2d 922 (1958); 1941-42 AGR 158. You have asked the following specific questions:
(1) The Pine Ridge Reservation Sioux tribe is planning to haul commodities to all nine (9) other reservations in South Dakota. They are using a trailer licensed under SDCL 32-5-42 which is tax exempt. The tractor is licensed with a regular license, and is registered to a member of the Pine Ridge Sioux tribe. If the tribal member leases his tractor to the tribe, does the vehicle qualify for tax exempt license plates under Section 32-5-42 SDCL?
(2) If the tractor does not qualify for license under Section 32-5-42 SDCL, and the owner, after licensing it with regular South Dakota license, leases it to the tribe and can show evidence of such lease, is the vehicle exempt from compensation?
(3) An enrolled member of the Pine Ridge Sioux tribe has a gravel hauling operation which originates from various areas outside the reservation. He uses a tractor and trailer licensed with regular South Dakota license plates owned by him, to haul gravel for a street project within the City of Pine Ridge. Does the fact that he is hauling gravel for a tribal project exempt him from the purchase of compensation?
In answer to your first question, NO, a vehicle leased to the Pine Ridge (Oglala) Sioux tribe does not qualify for tax exempt plates under SDCL 32-5-42. The answer to your second question is also NO, the tractor is not exempt from compensation certificates. Finally, the answer to your third question is NO; hauling gravel for a tribal project does not exempt the private owner from the compensation laws. The only exemption is for tribally-owned vehicles.
It should be noted that this privilege was afforded to the tribes by the state Legislature in a spirit of cooperation. Abuses of this privilege will jeopardize that spirit and may result in the Legislature taking a new look at licensing exemptions for tribally-owned vehicles.
Respectfully submitted,
WILLIAM J. JANKLOW
ATTORNEY GENERAL
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