STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

September 14, 1966

Riley W. Connelly
State’s Attorney, Turner County
Parker, South Dakota 57053

OFFICIAL OPINION NO. 67-68 pg. 472

Townships. Authority of Townships to insure employees.

You have requested an official opinion based upon the following factual situation:

"A question has been presented to our office concerning the cancellation of a workmen's compensation policy providing coverage for certain employees of a township in Turner County.  In researching the question as to whether or not there was a  renewal contract, a question has arisen as to whether or not the township could contract for a policy of workmen's compensation insurance in the first instance."

You then asked the following question:

"Are townships empowered to enter into contracts providing workmen's compensation coverage for township employees, including township officers and the board of supervisors?"

A civil township is a political subdivision of state government and has only such powers as are expressly delegated by the state or are necessarily implied from expressed delegated powers (133 NW 2d 860).

Nowhere in the statutes of this state governing townships, is the power to contract for Workmen's Compensation expressly granted.

However, Section 64.0106 5 of the South Dakota Workmen's Compensation Law, SDC 1939, states:

"This state or any municipality or other political subdivision of the state need not furnish any insurance or security as provided by this section, but may do so if it desires."

Quoting further:

"Any employer other than the state, a municipality, or other political subdivision of this state, who has failed to comply with the provisions of this section shall be deemed to have elected not to operate under the provisions of this title."

It would appear that a township has the implied power to contract for Workmen's Compensation. The facts show a township had contracted for and in fact received coverage under Workmen's Compensation as prescribed by the above cited statute. The township, then, exercised a prerogative which, in my opinion, results from said statute.

Further support of this holding is evidenced in 1930-32 AGR 476-7 whereby under similar statutes as those embodied in the present Workmen's Compensation Law, an opinion was issued which states in part:

 "It is my opinion that the question of whether township boards should carry public liability and Workmen's Compensation insurance is largely a matter of policy to be left with said township board."

I concur in this opinion.

It is therefore, my opinion that townships are empowered to enter into contracts providing Workmen's Compensation coverage for township employees including township officers and the board of supervisors.

See also, 1945-46 AGR 39 for similar authority granted to the county.