Kanaly v. State by and Through Janklow

368 N.W.2d 819, 25 Educ. L. Rep. 558, 1985 S.D. LEXIS 296
CourtSouth Dakota Supreme Court
DecidedMay 29, 1985
Docket14716
StatusPublished
Cited by26 cases

This text of 368 N.W.2d 819 (Kanaly v. State by and Through Janklow) 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
Kanaly v. State by and Through Janklow, 368 N.W.2d 819, 25 Educ. L. Rep. 558, 1985 S.D. LEXIS 296 (S.D. 1985).

Opinion

HENDERSON, Justice.

ACTION

This is an appeal from an order granting defendants-appellees partial summary judgment. The trial court held that no genuine issue of material fact existed as to the constitutionality of Senate Bill 221/1984 and that said bill did not violate provisions of the Enabling Act. Senate Bill 221/1984, now found in 1984 S.D.Sess.Laws ch. 138 and hereinafter referred to as S.B. 221, closed the University of South Dakota-Springfield (USD/S) and transferred control of the facilities to the Board of Charities and Corrections without consideration. We affirm in part, reverse in part, modify in part, and remand for hearings as herein ordered.

PARTIES

Plaintiffs Van Cleave, McBride, Konechne, Lihs, Wolf, and Kanaly are resident citizens and taxpayers of the State of South Dakota. Plaintiff Wolf, in addition to the above, was a student enrolled at USD/S for the Spring 1984 semester, who has not completed the educational program for which he enrolled. Plaintiff Kanaly, in addition to the above, was a tenured faculty member at USD/S.

FACTS

In 1881, the Dakota Territorial Legislature created a normal school at Springfield along with other normal schools within its boundaries. In 1883, John A. Burbank deeded twenty acres in fee simple to the territory for the normal school at Springfield. On February 22, 1889, the United States Congress passed the Enabling Act (Ch. 180, 25 Statutes at Large 676), which allowed the territory to be admitted to the Union as a state upon construction and ratification of a state constitution. In November 1889, South Dakota was so admitted to the Union.

Several provisions of the Enabling Act empowered the new state to designate and dedicate various acreages of federal land to different educational institutions on the condition that the proceeds of any disposition constitute a permanent fund for the support of the public schools for which the land had been granted. The South Dakota Constitution, adopted in 1889, mirrored the permanent trust fund requirement of the Enabling Act. Article VIII, § 7, of the South Dakota Constitution provides that all *822 lands or money received for educational or charitable institutions from the United States or other sources, and the proceeds therefrom, shall remain perpetual funds, and shall be inviolably used for the specific objects of the original gifts.

In response to the Enabling Act’s educational dedication of lands provisions, the governor and legislature selected and dedicated 40,000 acres for the normal school at Springfield. The school has operated, with changes in curriculum, since this time until the enactment and signing of S.B. 221 on March 9, 1984.

S.B. 221 closed USD/S at the end of the Spring 1984 semester, provided for graduation of those qualified to do so, changed the college into a minimum-security prison, transferred control of the Springfield prison to the Board of Charities and Corrections without payment therefor, gave that Board the power to convey the facilities if done before May 1, 1984, and declared an emergency so the bill would be effective when passed and approved by the Legislature and signed by the governor.

Plaintiffs-appellants responded to the execution of S.B. 221 by filing a Verified Complaint and Writ of Prohibition on May 28, 1984. The trial court granted an Alternative Writ of Prohibition on that day prohibiting the Board of Regents and the Board of Charities and Corrections from transporting and/or conveying any of the property at, or formerly of, USD/S. The complaint alleged that S.B. 221 was unconstitutional because it violated the perpetual trust fund provisions of the Enabling Act and Article VIII, § 7, of the South Dakota Constitution; violated Article XIV, § 3, of the South Dakota Constitution by transferring control of USD/S from the Board of Regents to the Board of Charities and Corrections; violated Article I, § 10, of the United States Constitution and Article VI, § 12, of the South Dakota Constitution by impairing USD/S bond contracts (impaired obligation of contracts); violated Article III, § 21, of the South Dakota Constitution because it embraces more than one subject in the body of the bill; and violated Article III, §§ 1 and 22, of the South Dakota Constitution by unnecessarily declaring an emergency.

The trial court on June 13, 1984, entertained a motion to quash the Alternative Writ of Prohibition and decided that it should be vacated except for the provision preventing the sale of USD/S under the authority of S.B. 221, Section 5. The trial court, in its summary judgment decision discussed below, later determined the controversy surrounding Section 5 to be moot because no conveyance had been made before the May 1, 1984 deadline, therefore no Writ of Prohibition remains outstanding. The trial court next entertained appellees’ motion for summary judgment and held on September 21, 1984, that no genuine issue of material fact existed as to the constitutionality of S.B. 221 but that certain issues, later dismissed by plaintiffs, should be tried. Those issues dismissed, and thus not before this Court, were a) breach of employment contract rights, b) the unlawful taking of private property, and c) due process considerations. It is from this partial summary judgment that appellants now appeal.

This case is of great constitutional magnitude and importance to education and its funding in the State of South Dakota. We address five separate issues.

DECISION

I.

DOES SENATE BILL 221 VIOLATE THE PROVISIONS OF THE PERMANENT TRUST FUND CREATED BY THE ENABLING ACT AND ARTICLE VIII, § 7, OF THE SOUTH DAKOTA CONSTITUTION? WE HOLD THAT IT DOES.

Section 11 of the Enabling Act provides the conditions under which the lands granted the State of South Dakota for educational institutions by the United States must be held and managed. In part, it provides:

The state may also, upon such terms as it may prescribe, grant such ease- *823 merits or rights in any of the lands granted by this act, as may be acquired in privately owned lands through proceedings in eminent domain: provided, however, that none of such lands, nor any estate or interest therein, shall ever be disposed of except in pursuance of general laws providing for such disposition, nor unless the full market value of the estate or interest disposed of, to be ascertained in such manner as may be provided by law, has been paid or safely secured to the state.
With the exception of the lands granted for public buildings, the proceeds from the sale and other permanent disposition of any of the said lands and from every part thereof, shall constitute permanent funds for the support and maintenance of the public schools and the various state institutions for which the lands have been granted....
The lands hereby granted shall not be subject to pre-emption, homestead entry, or any other entry under the land laws of the United States whether surveyed or unsurveyed, but shall be reserved for the purposes for which they have been granted. (Emphasis supplied.)

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Bluebook (online)
368 N.W.2d 819, 25 Educ. L. Rep. 558, 1985 S.D. LEXIS 296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kanaly-v-state-by-and-through-janklow-sd-1985.