Opinion ID: 2229662
Heading Depth: 1
Heading Rank: 6

Heading: The election was cured by subsequent legislation.

Text: During the 1993 legislative session, Senate Bill 293 (SB 293) amended SDCL 6-8-3 to read: In all such cases as described in § 6-8-2 the bonds so issued and all proceedings taken before January 1, 1993, for the issuance of such bonds and for the levy and appropriation of taxes, assessments, or revenues for the payment thereof and all covenants heretofore made for the security of such bonds are hereby declared to be valid and legal, notwithstanding any defect or irregularity, other than constitutional defects, in any of said bonds including, but without limitation of the generality hereof, any defect or irregularity in any election, notice of election, publication, or petition required by law, or in any of the obligations issued before January 1, 1993, which are funded or refunded, by bonds heretofore issued or authorized to be issued, including special assessment proceedings and special assessment certificates or bonds issued in lieu thereof; and all such bonds issued pursuant to said proceedings heretofore taken, shall be legal, valid and binding obligations of the political subdivision issuing the same, notwithstanding any defects or irregularities, other than actions prohibited by the Constitution or omissions or actions required by the Constitution, in the proceedings taken for the issuance of such bonds. (Emphasis supplied.) Thus, bonds and bond elections prior to January 1, 1993 are henceforth valid and legal, notwithstanding any defect or irregularity, other than constitutional defects. Whereas the election in question was held prior to the January 1 deadline, SDCL 6-8-3 stands to cure the problems alleged by Bienert. Curative legislation concerning the issuance of bonds was upheld by Utter v. Franklin, 172 U.S. 416, 19 S.Ct. 183, 43 L.Ed. 498 (1899). Utter has been followed by several jurisdictions of last resort. Accord Worley v. Idleman, 285 Ill. 214, 120 N.E. 472 (1918); State ex rel. Skyllingstad v. Gunn, 92 Minn. 436, 100 N.W. 97 (1904); Weber v. City of Helena, 89 Mont. 109, 297 P. 455 (1931). In Utter, the United States Supreme Court held that bonds adjudged void due to lack of power to issue them is immaterial when they have been subsequently made valid by an act of Congress. Such legislation is by no means unknown to South Dakota or Yankton County. Prior to our statehood, in National Bank v. County of Yankton, 101 U.S. 129, 25 L.Ed. 1046 (1880), the Legislative Assembly of Dakota Territory passed an act permitting organized counties and townships to vote for aid to any railroad and to provide for payment of same. Voters in Yankton County later approved sale of $200,000 in bonds for a railroad venture. However, County alleged that, despite subsequent legislation, no valid law existed authorizing the issue of the bonds, and as a consequence, County was not bound for payment of either principal or interest. The District Court of Yankton County and the Supreme Court of Dakota Territory agreed. In reversing the underlying case of Treadway v. Schnauber, 1 Dak. 236, 46 N.W. 464 (1875), the U.S. Supreme Court held that subsequent legislation can cure or make a void act valid. Thus, the issuance of bonds was permissible through curative legislation in 1880. Nothing has changed to prevent us from concluding the same in 1993.