Document: 469 U.S. 256 105 S.Ct. 695 83 L.Ed.2d 635 LAWRENCE COUNTY et al.v. LEAD-DEADWOOD SCHOOL DISTRICT NO. 40-1. No. 83-240. Argued Oct. 30, 1984. Decided Jan. 9, 1985. Syllabus The Payment in Lieu of Taxes Act compensates local governments for the loss tax revenues resulting from tax-immune status federal lands, such as wilderness areas and national parks, located their jurisdictions, cost providing services associated with these lands. 31 U.S.C. § 6902(a) requires Secretary Interior to make an annual payment each unit government which lands are located, further provides that "may use any governmental purpose." A South Dakota statute distribute payments lieu taxes same way they general revenues. Since appellant county allocates 60% its school districts, state would require give districts it receives. After refused funds accordance statute, claiming gave discretion spend purpose chose, appellee School District filed a mandamus complaint State Circuit Court, seeking compel statute. Court held conflicted law was therefore invalid under Supremacy Clause. Supreme reversed, holding only limit imposed on is must be used "governmental purpose," since support valid purpose, consistent requirements. Held: Pp. 260-270. (a) language appears endow in-lieu purpose. At very least, ambiguous respect degree discretion. But Department has consistently taken view retain choose. And legislative history evidences congressional ensure reach placed at disposal affected see fit. runs directly counter this 260-268. (b) statute's intrusion county's spending not negligible or even modest. To allocate proportion most likely result windfall other entities already fully funded by revenues, money thus serve intended compensating extraordinary additional expenditures As concerns federalism, Federal Government presumed dictate manner counties may in-lieu-of-tax payments, but, rather, merely condition should denied 269-270. 334 N.W.2d 24 (SD 1983), reversed. Alan Raywid, Washington, D.C., appellants. Louis F. Claiborne, amicus curiae, special leave Court. A.P. Fuller, Lead, S.D., appellee. Justice WHITE delivered opinion 1 issue presented appeal whether regulate distribution units receive 6902. sustained requiring moneys taxes, inconsistent law. Because indicate Congress have more aid than allow them, we hold Hence, reverse. 2 * Act, 6901 seq.,1 related These "entitlement lands" include areas, administered Bureau Land Management.2 Under 6902, required "to entitlement land located."3 6902(a).4 Appellant Lawrence County received excess $400,000 Act. 3 In 1979, enacted S.D.Codified Laws 5-11-6 (1980).5 approximately 6902 county, however, declined chose. 4 This court litigation arose after challenge dismissed jurisdictional grounds.6 Appellee Lead-Deadwood 40-1 then court, writ Eighth Judicial 5 (1983). noted concluded found unnecessary go behind plain examine history. Two justices dissented, concluding whole, along history, indicated directing States "keep noses out funds." Id., 27. We probable jurisdiction, 466 903, 104 1676, 80 151 (1984). II 6 Even if expressly pre-empted given area, nevertheless Clause conflicts "stands obstacle accomplishment full purposes objectives Congress." Silkwood v. Kerr-McGee Corp., 464 238, 248, 615, 621, 78 443 (1984); Hines Davidowitz, 312 52, 67, 61 399, 404, 85 L.Ed. 581 (1941). determining here impeded operation limited inquiry funding Concluding was, no inconsistency between provisions. analysis, seriously flawed. 7 "each government" case, county—"may" "any" It seems say chooses all roads, example, could do so. forbidden: allocated among various insists directs spent proper services, there interpretation, word "may" confers immune control. last sentence drained almost meaning, had been omitted, legal position precisely described become mere admonition embezzle purposes. governments. Contrary views expressed below, does own force dispose case. Resort indicia meaning statutory appropriate. 8 First, note Interior, agency charged administration adhered 1977, soon passed, promulgated 43 CFR 1881.2 (1983), "[t]he monies paid entitled interpreted foreclosing limitations funds.7 Brief United Amicus Curiae 18. interpretation substantial deference, Blum Bacon, 457 132, 141, 102 2355, 2361, 72 728 (1982), sensible reading language, surely now undertake. 9 passed response comprehensive review policies applicable use, management, disposition Public Law Review Commission, One Third Nation's (1970).8 many years partially compensate lost presence tax-exempt within borders. Commission identified number flaws existing programs. Prominent that, systems direct States, often were insufficient cover maintaining jurisdictions. Where consisted park attracted thousands visitors year. might benefit federally inspired tourism through collection income sales but accrue governments, who restricted raising revenue property taxes. Yet bore brunt expenses enforcement, road maintenance, provision public health services.9 10 second defect schemes too much leeway disbursement funds. 11 "Many sharing provisions permit decisions how will distributed. far either kept level distributed parcelled shares those situated where impacts fee generating activities felt." S.Rep. 94-1262, p. (1976), U.S.Code Cong. & Admin.News 1976, 5972. 12 acknowledges clear intent government, bypassing State. argues poses impediment goal: still flows county; none thereafter "parcelled out" borders; defines "point distribution" funds, having authority prescribe "plan distribution." 13 it, concerned adequate amounts money, directly. Equally important objective ensuring freedom flexibility saw Senate Committee Insular Affairs, observed: 14 "[T]oo [existing] restrict few services—most construction maintenance roads schools. Yet, called upon provide indirect . fortunate able juggle budget earmarked accurately correspond community's service facility needs." Ibid.10 15 Similarly, House "payments [the Act] government," also "these new [not] specific purposes." H.R.Rep. 94-1106, (1976). floor debates replete similar statements.11 mandating according formula, objective. If "plan" distribution, contends, impose exactly kinds restrictions prohibit. 16 That made knowing choice vest over expenditure apparent issues posed hearings. question actually subject extensive discussion before Committee, several alternatives considered. Although witnesses advocated State, others argued appropriate recipients because, considerations, best determine what functions need funds.12 17 recognized costs serving varied unpredictable, needed needs arose. Reports listed, examples health, sewage disposal, libraries, hospitals, recreational facilities, search rescue missions.13 picture emerges hearings owned Government, whose populations markedly increased tourists hunters summer, deer season, weekends.14 transients suffer accidents emergency hospitalization cannot always pay;15 commit crimes call police protection, prosecution, incarceration;16 create waste necessitates treatment plants;17 paved maintained;18 generally strain resources without unlikely increase largely uninhabited land, education.19 18 features scheme shed some light Another 6904(b), case certain short-term connection acquisition "shall proportionally real because interest." explicitly provided proportionate allocation indicates districts. See Fedorenko 449 490, 512, 101 737, 750, 66 686 (1981).20 19 subsequent amendment interpretation. Red Lion Broadcasting Co. FCC, 395 367, 380-381, 89 1794, 1801-1802, 23 371 (1969). 1983, amended authorize redistributions "units county. Pub.L. 98-63, 97 Stat. 324, 6907 (1982 ed., Supp. II).21 necessary reallocate circumstances absent express authority, interfere decision-making demonstrates when determined reallocated smaller units, careful responsibility "general purpose" government. water being single excluded once again receipt form aid.22 20 Against background, little trouble prohibit kind state-imposed limitation represented challenged III 21 argue acceptable discretion, spends inclined credit insistence negligible, Absent elaborate speculative calculations juggling, conceivably avoid result, strong concern maximum area encounter interference allocating greatest need. 22 intrude lightly into State's efforts fiscal guidance subdivisions. payments.23 Rather, instance including linked novel proposition pursuant powers Spending Clause, conditions independent constitutional bar.24 our view, sufficiently intention funnel so them interference. IV methods did meet demands created crafted designed attempt legislation qualified obstructs afoul County, managers cashiers. Accordingly, judgment 25 Reversed. 26 REHNQUIST, whom STEVENS joins, dissenting. 27 Hunter Pittsburgh, 207 161, 28 40, 52 (1907), unanimously "settled doctrines Court" one hand, municipal corporations other: "Municipal political subdivisions convenient agencies exercising entrusted them. For executing properly efficiently usually power acquire, hold, manage personal property. number, nature duration conferred territory shall exercised rests absolute State." 178, S.Ct., 46. 29 Flying face settled doctrine, today holds Congress, Dakota, implicitly prohibited regulating Recognizing seeks glean bits pieces testimony Committees, selected statements address issue, ammunition reaches. I think Court's succeeds rather formidable task. 30 question, 6902(a), provides: "The year located. 32 Surely normal lawful system laws regulates activities. statutes constitute County. They "in-lieu payments" "in distributed." S.D. Codified (1980). mean payment. opinion, says neutral requirement payments. necessarily premised assumption words somehow emancipate regimen apparently creates definition confines left wholly undeveloped. 33 relies "administrative construction" primary reason reaching does. vaunted simply restates regulation, explanatory language. department funds" cites reference brief Ante, 261. part cited refers regulation prohibiting receiving directly, above-quoted repeating Neither regulations relied supports bland statement administrative foreclosed counties' 34 Other materials similarly inapt ambiguous. conclusion purposes" terms, fairly interpreted, just indicating earmark particular 35 two-sentence certainly proclaim hard pressed derive tortured chosen implied desire counties. nothing contrary result; allocated. reasons why convincing long totally subordinate affirm Dakota. formerly appeared 1601 seq. (1976 ed.). Title Code recodified 1982 97-258, 96 877 recodification substantive change 97-651, 1982, pp. 1895, 1897. Army Corps Engineers resource development projects dredge well semiactive inactive military installations 6901(1). "unit defined elsewhere "a (or parish), township, city government." (as 323). Special bodies, boards, included definition. 1881.0-5(b)(2) Section full: auditor proceeds originally sought declaratory entered favor 513 F.Supp. 1040 1981). Appeals vacated judgment, invocation convert action arising jurisdiction 1331. 668 F.2d (1982). ruling erroneous. Shaw Delta Air Lines, Inc., 463 85, 103 2890, 77 490 granted relief party challenging pre-emption grounds, reaffirming rule "[a] plaintiff injunctive ground which, virtue Constitution, prevail, presents courts 1331 resolve." 96, n. 14, 2899, 14. exempts proportionately 6904. infra, 267. Altus-Denning Franklin 568 95, (WD Ark.1983); Kendall Towns 146 Ga.App. 760, 247 S.E.2d 577 (1978). Altus-Denning, Arkansas share conflict Act's "any 5-6 5968, 5969. 8-9. 6. ibid. 122 Cong.Rec. 25747 (1976) (statement Rep. Weaver) (revenue-sharing inadequate schools, fire treatment, etc.); id., 25750 Baucus); 25754 McCormack). Hearings H.R. 1678 Related Bills Subcommittee Environment 93d Cong., 2d Sess., 60 (1974) Dick Shoup, Montana). 137 Kent Nelson, Six-County Economic Development District), 146-149 (statements Hector Chiara Guido Rachiele, Commissioners, Carbon Utah), 169-170 Dixie Leavitt, Utah Senator). earlier, state-county rivalry erupted revenue-sharing Representative Morris Udall, chaired hearings, referred controversy times, asking comment See, e.g., 71-72, 85-86, 146, 157. Pros cons both aired, supervision reached themselves contain felt impact neighboring 17, 27-28, 146. Thus, decision considered one. 6; 9. 9719 Energy 94th 1st (1975) (hereinafter 1975 Hearings) George Buzianis, Chairman Tooele Utah); Calvin Black, Commissioner, San Juan 102-103 Eyer Boies, Board Elko Nevada); 111 James Fairfield, Mineral Commissioners); 258 (remarks Jim Santini 298 Oberstar Minnesota). Ivan Matheson, Chairman, Official Association); (submission Bill MacDonald, Attorney, Humboldt Nevada). Utah) ("[P]olice protection main problem, vandalism, forth. BLM [Bureau Management] lands"); Nevada) ("The vast majority criminal cases involve passing decide knock mercantile, motel bad check, burglarize home ranch, get tank gas run paying etc."). trial transient murder charge $25,000, "[w]ith averaging $10,000 $15,000 type thing." Kenneth Lee, Lincoln Commissioner). 45 Dale Sowards, President, Colorado Counties, Inc.); 298-299 Association). 280-281 Simon) (noting "the Pope schools"). extent education costs, programs specifically compensation costs. 6904(b); 236 Report qualify Government. 3, supra. 6907(a) "Notwithstanding chapter, enact chapter redistributed whole (1) boundaries larger (2) (3) boundaries. Such reallocation redistribution reflect by, acres within, came Sixth exceeded his barring townships Meade Township Andrus, 1006 "principal providers services" level. "expressed preference 'units government.' " 1009. 1983 order continue efficiency. If, relevant counties, gives units. 98-141, (1983); 129 S8444 (June 15, 1983) Sen. Durenberger). There indication cede passage, sponsors administering borne 130 E1440-E1441 (Apr. 4, 1984) Kogovsek). (1980), King Smith, 392 309, 333, 34, 88 2128, 2141, 1118 (1968).

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