STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

May 20, 1968

Nils A. Boe, Governor
State Capitol Building
Pierre, South Dakota 57501

OFFICIAL OPINION NO. 67-68 pg. 483

Fair Board. Acceptance of a gift by the State

You have requested an opinion on the following factual situation:

"The South Dakota State Fair Board has advised me that a nonprofit association of businessmen in the City of Huron has offered to present to the State a gift consisting of the installation of heating equipment for the Hippodrome on the State Fair Grounds. "It is my understanding that this offer would include the following conditions and premises:

1. That equipment sufficient and necessary to heat the Hippodrome building would be installed at the sole expense of the association.

2. That the equipment as well as the installation thereof would be subject to the examination, supervision, and approval of the State Engineer.

3. That upon installation, the gift would be irrevocably and unconditionally the sole property of the state of South Dakota and a fixture of the building in which it had been installed.

4. That no conditions, premises, or consideration of any character would be given by the State Fair Board or the state of South Dakota to the donor therefor.

5. That sole and complete jurisdiction with respect to the use and rental of the Hippodrome building would remain the jurisdiction of the State Fair Board and that no priority with respect to such use or occupancy would be given either directly or indirectly to the donor as a result of their proposed gift.

"It goes without saying that the installation of the heating equipment in the Hippodrome building would be a valuable asset and would permit the utilization of this structure throughout the entire year by means of lease agreements entered into by the State Fair Board. Lessees requesting periodic rental of the building would, undoubtedly, include the proposed donor."

You have asked the following question:

"May the State of South Dakota accept the proposed gift under the terms and conditions hereinbefore set forth?"

You have also requested advice on the following:

"If it is your belief that the imposition of further conditions or restrictions might cause such a gift to be proper and legal, I would likewise appreciate your indication as to the nature of such additional conditions or restrictions.

 "In the event it might be your opinion that such a gift could be legally accepted by the state of South Dakota. would you kindly advise the exact and formal manner by which such acceptance should be made."

SDC 1960 Supp. 55.1102 reads as follows:

"Whenever any grant, devise, bequest, donation, or gift, or assignment of money, or chose in action, of any property real or personal, shall be made to this state, the Governor is directed to receive the same, and shall report the same to the State Board of Finance for acceptance or rejection; and when the State Board of Finance shall accept the same, the title thereto shall pass to the state, and the state may, when necessary, commence proceedings for the recovery of such property."

Ender the conditions and premises you have set forth, it would appear that the gift of the heating equipment to the State of South Dakota is absolute without any encumbrances whatever, therefore, it is my opinion that the State of South Dakota may accept such gift.

It is also my opinion that conditions you have set forth are adequate and that no further conditions or restrictions are necessary.

It is recommended that a document be prepared setting forth the description of the equipment included in the gift with the conditions set forth above included in such document with such document executed by the Association.

It is also recommended that such Association obtain approval of the equipment of the proposed method of installation from the State Engineer prior to executing the gift document. A copy of such approval should be attached to the gift document.

It is also recommended that the State Fair Board approve and agree to accept the gift and a copy of their approval be attached to the gift document.

After the approval is accomplished, then the proposed gift with the approvals attached should be submitted to you, and you should then report the same to the State Board of Finance for acceptance or rejection. If the State Board of Finance accepts such gift, then such gift would become final. All of this should be accomplished before any actual installation is made.