STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

November 18, 1971

Neal Strand
State Treasurer
Capitol Building
Pierre, South Dakota 57501

OFFICIAL OPINION NO. 71-57

Moneys received after July 1, 1971 under the Federal Taylor Grazing Act and the Federal Mineral Leasing Act shall be distributed according to SDCL 13-14-3.1 and 3.2

Dear Mr. Strand:

We have received your request for an official opinion on the following factual situation:

The State of South Dakota periodically receives money from the Federal Government for grazing fees on Federal land under the Taylor Grazing Act (43 USC 3151) and money for mineral leases under the Mineral Leasing Act (30 USC 191). In prior years, the mineral fees have been distributed to the school districts throughout the state on a per pupil basis. The grazing fees have been distributed to the counties in accordance with SDCL 4-3-18.

The 1971 Legislature enacted House Bill 699, which is now SDCL 13-14-3.1 and 3.2. This law provides the moneys received under the Mineral Leasing Act and Taylor Grazing Act shall be distributed to school districts in such proportion as the areas of lands in each school district bear to the total area of the lands producing such moneys.

In August of 1971, the Treasurer's offie received moneys under the two acts for grazing and mineral fees which accrued during the period beginning January 1, 1971 and ending June 30, 1971.

You have asked two questions in regard to such factual situation:

1. Would the Federal Taylor Grazing moneys collected for the period January 1, 1971 to June 30, 1971, but not received until August, 1971, be allocated according to Chapter 142, 1971 Session Laws?

2. Would the Federal Mineral Leasing moneys collected for the period January 1, 1971 to June 30, 1971, but not received until August, 1971, be allocated according to Chapter 142, 1971 Session Laws?

SDCL 13-14-3.1, is the Code provision in question, and it provides:

All revenues received by the State of South Dakota from the Federal Government of the United States as South Dakota's share of income from lands owned by the United States in South Dakota pursuant to Section 35 of the Federal Mineral Leasing Act of February 25, 1920 and pursuant to Section 10 of the Federal Taylor Grazing Act of June 28, 1934, as amended or as hereafter amended, and in which the Congress of the United States has granted unto the Legislature of this state the right to use such money as it may prescribe or direct for the use and benefit of the state, subdivisions thereof, or for the support of public schools or other public education institutions, shall be allocated and paid to the school districts of this state in proportion to the area of such lands in such district in which the lands producing such moneys are or were located. (Emphasis added)

This legislation became effective on July I, 1971. SDCL 2-14-16. If the subject matter of the Act was to be performed prior to June 30, then, the old law must be used. If the subject matter of the Act was to be performed after July 1, the new Act would take precedence.

The Act refers to revenues which are received by the state, and not to revenues which accrue on behalf of the state. Words used in legislation are to be understood in their ordinary sense. SDCL 2-14-1.

Therefore, it is my conclusion that because the Federal Taylor Grazing moneys and the Federal Mineral Leasing moneys were not received by you until August of 1971, that both funds should be distributed in accordance with SDCL 13-14-3.1.

Respectfully submitted,

Gordon Mydland
Attorney General