State ex rel. Mechem v. Hannah

• Decision Date: 08 August 1957
• Docket Number: No. 6239,6239
• Citation: 63 N.M. 110,1957 NMSC 65,314 P.2d 714
• Parties: The STATE of New Mexico on the Relation of Edwin L. MECHEM, Governor of the State of New Mexico and President of the State Board of Finance, Petitioner, v. J. D. HANNAH, State Auditor of New Mexico, and Joseph B. Grant, State Treasurer of New Mexico, Respondents.
• Court: New Mexico Supreme Court

Page 714

314 P.2d 714

63 N.M. 110

The STATE of New Mexico on the Relation of Edwin L. MECHEM Governor of the State of New Mexico and President of the State Board of Finance Petitioner, v. J. D. HANNAH, State Auditor of New Mexico, and Joseph B Grant, State Treasurer of New Mexico Respondents.

No. 6239.

Supreme Court of New Mexico.

Aug. 8, 1957.

Rehearing Denied Sept. 11, 1957.

Melvin T. Yost, Santa Fe, for petitioner.

Fred M. Standley, Atty. Gen., Santiago E. Campos, Asst. Atty. Gen., for respondents.

McGHEE, Justice.

The relator as Governor of New Mexico seeks a peremptory writ of mandamus to compel the respondents as State Auditor and Treasurer respectively to make available to the State Board of Finance $200,000 appropriated in section 1 of chapter 22 of the Session Laws of 1957, and approved Feb. 25, 1957. They had refused to make the money available following an opinion by the Attorney General that the law was probably unconstitutional.

The purpose of the appropriation was to pay in part the state's share of emergency hay and roughage certificates issued to livestock owners as contribution to be used by the recipient livestock owner in the purchase of hay for their foundation herds of livestock in cooperation with the United States Department of Agriculture. Former Governor John F. Simms, on Sept. 13, 1956, contracted with the Department of Agriculture of the United States that New Mexico would contribute $2.50 per ton for hay purchased by certificate holders approved by officials and committeemen named by officials of the United States Agricultural Department, and that the United States would contribute $7.50 per ton. The contract was dated Sept. 13, 1956, and provided for a maximum contribution by New Mexico of $75,000, and by the United States of $225,000.

On Oct. 3, 1956, the contract was amended to provide for a maximum contribution by New Mexico of $225,000, and by the United States of $1,225,000. However, without any apparent change in the contract certificates were issued until a total of $2,325,000 worth were put out, and the state's share of the program reached the sum of $581,000 of which it has paid $179,000 out of money made available by its Board of Finance.

The occasion for the hay program was the fact that New Mexico had been afflicted by a severe drouth in almost all counties for a period of six years, so that its ranges were denuded in almost every section, and the livestock industry was in distress, as evidenced by the stipulation entered into by the parties in part as follows:

'1. That drought conditions existed in general in New Mexico from 1950 through 1956.

'2. That conditions of range lands, due to continued drought, deteriorated in general throughout the state from 1950 to 1956, and that by 1956 the drought had reached disaster proportions.

'3. That the numbers of livestock and basic herds of livestock in New Mexico had been reduced due to drought conditions during the years of 1950 through 1956, and that there was, accordingly, a substantial reduction of income from the raising of livestock.

'4. That 4,767 livestock raisers were issued certificates under the drought program.

'6. That the livestock industry is a basic and essential industry to the economy of the State of New Mexico.

'7. That the Governor of the State of New Mexico and the State Board of Finance during the year 1956 recognized that a disaster existed due to drought and requested the President of the United States to declare the State a disaster area, and that thereafter the President of the United States during the year 1956 declared the State of New Mexico to be a drought area.

'8. That the standards of eligibility for participation in the Roughage Program, * * * did not limit participation in the Program to persons who were 'sick and indigent' within the meaning of the proviso contained in art. IX, Sec. 14 of the Constitution of the State of New Mexico.'

Under the agreement New Mexico in addition to the contribution of $2.50 per ton was to keep the books and records, and pay the $10 per ton through its fiscal agent, the First National Bank of Santa Fe, honoring the certificates and the draft thereon, and in turn collecting the state of the United States, thus creating a revolving fund.

The eligibility of persons applying for the certificates was determined by committee members in the various counties who were appointed by officials of the Department of Agriculture of the United States who had the direction and control. New Mexico had no voice in the issuance of the certificates to applicants.

It was to meet the state's share of outstanding certificates that Chapter 22 was enacted.

Depositions were taken from a number of livestock owners and others familiar with problems brought on by the extended drouth, and all testified the hay program was essential to the preservation of the livestock industry in New Mexico, and that the state's constribution was of great help.

Applicants were required to certify that they could not carry their foundation herds (breeding stock) without help from the emergency funds, and there was no distinction except as to the amount of help given between one with fifty head and one with one thousand or more. There was no requirement that any of the foundation herd be diminished but an applicant was required to report on the amount of feed on hand or that he would likely have, and that he was financially unable to purchase feed needed for his herds; also it was required that he had devoted at least fifty percent of his time to the livestock business or received fifty percent of his income from it. All counties in New Mexico except Los Alamos were in the disaster area. There was no previous legislation authorizing New Mexico's participation in the program.

The respondents make the following points in their attempt to justify their refusal to make the $200,000 available for the retirement of the state's share of certificates, the United States having already paid its part:

'Chapter 22, New Mexico Session Laws of 1957, and the 'Federal-State Cooperative Agreement for Roughage Program in the State of New Mexico' authorized thereunder contravene the provisions of article IX, section 14 of the Constitution of the State of New Mexico in that the grants of money to participants in the roughage program constitute donations to or aid of persons, associations or public or private corporations.

'Chapter 22, New Mexico Session Laws of 1957, and the 'Federal-State Cooperative Agreement for Roughage Program in the State of New Mexico', authorized thereunder, contravene the provisions of article IV, section 31 of the Constitution of the State of New Mexico in that the appropriation made therein, the administration of the said program and those persons or corporations for whom the appropriation is made and the program instituted for are not under the absolute control of the court.'

Article IX, section 14 of the Constitution of New Mexico reads:

'Neither the state, nor any county, school district, or municipality, except as otherwise provided in this Constitution, shall directly or indirectly lend or pledge its credit, or make any donation to or in aid of any person, association or public or private corporation, or in aid of any private enterprise for the construction of any railroad; provided, nothing herein shall be construed to prohibit the state or any county or municipality from making provision for the care and maintenance of sick and indigent persons.'

Chapter 22, reads:

'An Act making appropriations to the state board of finance for the 'Federal-State Cooperative Agreement for the Roughage Drouth Feed Program'; and declaring an emergency.

'Senate Bill No. 180; Approved February 25, 1957

'Be it Enacted by the Legislature of the State of New Mexico:

'Section 1. There is appropriated from the state general fund to the state board of finance the sum of two hundred thousand dollars ($200,000), or as much thereof as may be needed, for the use during the remainder of the forty-fifth fiscal year and the forty-sixth fiscal year, for use under the 'federal-state cooperative agreement for the roughage drouth feed program,' provided that no part of the appropriation contained in this section shall be used for administration of the program.

'Section 2. There is appropriated from the state general fund to the state board of finance, the sum of thirty-five thousand dollars ($35,000), or so much thereof as may be necessary, for use during the remainder of the forty-fifth fiscal year and during the forty-sixth fiscal year, for the administration of the 'federal-state cooperative agreement for the roughage drouth feed program.'

'Section 3. If under the agreement it becomes necessary to expend more money than appropriated in Section 1 of this act, the state board of finance may in addition issue certificates of casual indebtedness at an interest rate not to exceed two and one-half percent up to the amount of four hundred forty-three thousand dollars ($443,000) during the forty-sixth fiscal year. This amount, or any part of it, shall be spent in the same manner and for the same purposes as set out in Section 1 of this act.

'Section 4. No part of the money appropriated under this act shall be used to pay for certificates which have been issued after January 31, 1957 provided, however, replacement certificates may be paid from this appropriation in cases when the replacement certificate is issued to correct clerical errors in the original certificate and in cases where the replacement certificate is issued to correct an error in original allowance; provided that no original allowance may be increased.

'Section 5. Emergency.--It is necessary for the peace, health and safety of the inhabitants of the state that this act become effective at the earliest time and therefore an emergency is declared to exist.'

This act does not tell us who are eligible to reap the benefits of the appropriation;...