Independent Community Bankers Ass'n of South Dakota v. State Ex Rel. Meierhenry

346 N.W.2d 737, 1984 S.D. LEXIS 272
CourtSouth Dakota Supreme Court
DecidedMarch 28, 1984
Docket14288
StatusPublished
Cited by44 cases

This text of 346 N.W.2d 737 (Independent Community Bankers Ass'n of South Dakota v. State Ex Rel. Meierhenry) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Independent Community Bankers Ass'n of South Dakota v. State Ex Rel. Meierhenry, 346 N.W.2d 737, 1984 S.D. LEXIS 272 (S.D. 1984).

Opinions

MORGAN, Justice.

This is an original proceeding under SDCL ch. 15-25 wherein Independent Community Bankers Association of South Dakota, Inc.; Professional Insurance Agents of South Dakota; South Dakota Association of Life Underwriters; and the Independent Insurance Agents of South Dakota, Inc. (plaintiffs) challenge the constitutionality of SB 256/1983 (afterwards enrolled as Chapter 356 of the 1983 Session Laws), hereinafter referred to as SB 256 or as the bill, as violative of four requirements of the South Dakota Constitution: (1) that no law shall embrace more than one subject which shall be expressed in its title; (2) that every bill shall be read twice by number and title, once when introduced and once upon final passage; (3) that the legislature may not improperly delegate its authority nor pass vague or uncertain laws; and (4) that the legislature must comply with due process requirements of the South Dakota Bill of Rights when enacting laws. We disagree and conclude that the legislature did not violate the constitution or laws of South Dakota in the enactment of SB 256.

We note first the brief history of the enactment of SB 256. The Senate convened on Friday, March 4, 1983, and a motion was made to suspend the rules for the purpose of introducing and placing SB 256 on the Senate calendar for that day under Second Reading of Senate Bills.' The motion carried by two-thirds of the elected members. SB 256 was then introduced and read for the first time. Later that day, the bill was read a second time, and voted upon. The bill did not receive an affirmative vote from two-thirds of the members-elect, and thus failed to pass. A motion to reconsider SB 256 later that day prevailed however, and upon reconsideration, the bill passed and the title was agreed to.

The House received SB 256 the same day the bill passed in the Senate and a motion was made to suspend the rules for introduction, first reading, referral to committee and placement of SB 256 on the day’s calendar. The motion likewise carried by two-thirds of the elected members. The bill was later read by number and title “the second time” (House Journal, page 1205), voted upon and passed by two-thirds majority of the House members-elect.

Both houses of the legislature found the bill properly enrolled and the Speaker of the House and the President of the Senate each read the bill publicly and signed it before their respective chambers. The Senate delivered the bill to the Governor at 5:47 o’clock p.m. on March 4, 1983, the day it was first introduced. The Governor signed the bill at that time and it went into effect immediately as a result of the emergency clause incorporated therein.1

Any legislative act is accorded a presumption in favor of constitutionality and that presumption is not overcome until the unconstitutionality of the act is clearly and unmistakenly shown and there is no reasonable doubt that it violates fundamental constitutional principles. South Dakota Ass’n, Etc. v. State, Etc., 280 N.W.2d 662 (S.D.1979). Legislative action is also accorded a presumption in favor of validity and propriety and no statute should be held unconstitutional by any court unless its infringement of constitutional restrictions is so plain and palpable as to admit of no reasonable doubt. Clem v. City of Yankton, 83 S.D. 386, 160 N.W.2d 125 (1968).

We first examine plaintiffs’ contention that SB 256 violates Art. Ill, § 21, of the South Dakota Constitution which provides in essence that “[n]o bill [1] shall embrace more than one subject, [2] which shall be [740]*740expressed in the title.” The title of SB 256 reads:

“AN ACT to revise the provisions for ownership, powers, operation and taxation of certain banks and their subsidiaries and to declare an emergency.”

This court reviewed the application of Art. III, § 21, in McMacken v. State, 320 N.W.2d 131, rehearing 325 N.W.2d 60 (S.D.1982), and reiterated the court’s holding in State v. Morgan, 2 S.D. 32, 48 N.W. 314 (1891). The court looked at the purpose for the constitutional provision as it was presented in Morgan:

(1) prevent combining into one bill several diverse measures which have no common basis except, perhaps, their separate inability to receive a favorable vote on their own merits; (2) prevent the unintentional and unknowing passage of provisions inserted in a bill of which the title gives no intimation; and (3) fairly apprise the public of matters which are contained in the various bills and to prevent fraud or deception of the public as to matters being considered by the legislature.

320 N.W.2d at 138. The first purpose given for this constitutional provision is the basis for the one-subject requirement. The second and third stated purposes for the provision are grounds for the second requirement of Art. Ill, § 21; the one subject embraced within every law shall be expressed in its title. S.D.Const, art. Ill, § 21.

Plaintiffs first contend that the bill violates the requirement that it shall not embrace more than one subject, inasmuch as SB 256 refers only to “banks” while the eight sections of the bill deal with a variety of subjects, including bank holding companies, insurance, taxation of insurance companies, the sale of banks, and a filing fee. Plaintiffs point to the fact that the bill amends at least six different sections of the South Dakota Codified Laws as evidence that the bill encompasses more than one subject.

We disagree, however, inasmuch as each section of SB 256 is easily subsumed within the general subject of the bill, which is the regulation of “certain banks and their subsidiaries.” The subject of a law is “the public or private concern for which the law is enacted, and all provisions of the Act must relate directly to the same subject, have a natural connection, and not be foreign to the subject as stated in the title.” McMacken, 320 N.W.2d at 138. The concern for which SB 256 was enacted was the regulation, e.g., “ownership, powers, operation and taxation” of banks and their subsidiaries, e.g., insurance companies, and each section of the bill relates directly to that concern.

Section one is an emergency clause which presents the economic conditions which spawned the bill and outlines the bill’s anticipated effect on the state’s economy. Section two allows out-of-state bank holding companies to more readily acquire greater interests in South Dakota banks and thus regulates the ownership of banks. Section three prohibits banks acquired pursuant to section two from operating to the detriment of existing banks or insurance companies and subjects banks and their subsidiary insurance companies to the laws and regulations that govern the traditional insurance industry. This section goes to the “powers” and “operation” of banks which enter the insurance business under section five. Section four revised two of the four criteria upon which acquisition and formation of banks, pursuant to section two, will be permitted and imposed a fee upon those acquisitions and formations. This section deals directly with the ownership and taxation of banks and is clearly embraced within the subject of the title.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Richardson v. Richardson
2017 SD 92 (South Dakota Supreme Court, 2017)
Irvine v. City of Sioux Falls
2006 SD 20 (South Dakota Supreme Court, 2006)
Dakota Systems, Inc. v. Viken
2005 SD 27 (South Dakota Supreme Court, 2005)
In Re Request of Rounds
2003 SD 30 (South Dakota Supreme Court, 2003)
Repass v. Workers' Compensation Division
569 S.E.2d 162 (West Virginia Supreme Court, 2002)
Tuck v. Blackmon
798 So. 2d 402 (Mississippi Supreme Court, 2001)
Breck v. Janklow
2001 SD 28 (South Dakota Supreme Court, 2001)
McCabe v. North Dakota Workers Compensation Bureau
1997 ND 145 (North Dakota Supreme Court, 1997)
Knowles v. United States
1996 SD 10 (South Dakota Supreme Court, 1996)
Matter of Certif. of Questions of Law
1996 SD 10 (South Dakota Supreme Court, 1996)
Poppen v. Walker
520 N.W.2d 238 (South Dakota Supreme Court, 1994)
Associated General Contractors of South Dakota, Inc. v. Schreiner
492 N.W.2d 916 (South Dakota Supreme Court, 1992)
Duxbury v. Harding
490 N.W.2d 740 (South Dakota Supreme Court, 1992)
Accounts Management, Inc. v. Williams
484 N.W.2d 297 (South Dakota Supreme Court, 1992)
State v. Gill
584 N.E.2d 1200 (Ohio Supreme Court, 1992)
State v. Floody
481 N.W.2d 242 (South Dakota Supreme Court, 1992)
State Ex Rel. Schreiner v. Reif
478 N.W.2d 815 (South Dakota Supreme Court, 1991)
In Re Application No. 5189-3 to Extend Time
467 N.W.2d 907 (South Dakota Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
346 N.W.2d 737, 1984 S.D. LEXIS 272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/independent-community-bankers-assn-of-south-dakota-v-state-ex-rel-sd-1984.