40-23-1      Definition and purposes of grazing district.
40-23-2      Number of incorporators--Filing of articles.
40-23-3      Execution and contents of articles of incorporation.
40-23-4      Filing of map showing boundaries--Revision on change of boundaries--Revocation of lease for failure to file.
40-23-5      Arbitration of overlapping district boundaries.
40-23-6      Power to lease, acquire, and dispose of land.
40-23-7      Power to lease county land.
40-23-8      Fences, reservoirs, and facilities for care of livestock.
40-23-9      Power to apportion grazing rights among members.
40-23-10      Adoption of bylaws--Amendment.
40-23-11      Contents of bylaws.
40-23-12      Right to membership in district--Compliance with requirements.
40-23-13      Voting by members.
40-23-14      Membership rights on transfer of land.
40-23-15      Directors to exercise corporate power.
40-23-16      Directors' power to lease land.
40-23-17      Directors' regulations--Manner of utilizing grazing.
40-23-18      Directors' apportionment of grazing rights among members.
40-23-19      Fencing and assignment of exclusive use of areas.
40-23-20      Grazing permits to nonmembers.
40-23-21      Fees and assessments determined by directors.
40-23-22      Requirements as to male animals.
40-23-23      Reserves established by directors.
40-23-24      Purchase or lease of county lands.
40-23-25      Exemption of county land from usual leasing requirements--Leased tax deed lands not subject to sale--Option for purchase by district.
40-23-26      Regulatory powers retained by county commissioners on leased land.
40-23-27      Rentals for county lands--Variable scale.
40-23-28      Noncompliance with requirements as ground for forfeiture of county lease.
40-23-29      Exchange of county land for private land within grazing district.
40-23-30      Distribution of property on dissolution of grazing district.

40-23-1. Definition and purposes of grazing district.

A cooperative corporation organized for the purpose of aiding in the conservation of natural forage resources within a designated area to be jointly used by its members, and for aiding in the restoration and improvement of lands which may be acquired by lease or purchase from a political subdivision or from others, shall be known in this chapter as a "cooperative grazing district." "Cooperative grazing district" includes the land area within which the district operates.

Source: SDC 1939, § 40.1801.

40-23-2. Number of incorporators--Filing of articles.

Whenever three or more qualified persons shall desire to incorporate a cooperative grazing district, having for its object the utilization, conservation, restoration, and improvement of forage resources on their land or upon lands to be acquired by such association by purchase or lease, they shall prepare and file articles of incorporation to that effect in the Office of the Secretary of State in the manner in this chapter specified.

Source: SDC 1939, § 40.1802.

40-23-3. Execution and contents of articles of incorporation.

The articles of incorporation of a cooperative grazing district shall be signed, sealed, and acknowledged in the form now provided by the statutes of this state for the conveyance of real estate, and shall include the following:

(1)    The name of the association;

(2)    The purpose for which it is formed;

(3)    The county or counties in which such district is located and the principal office or place of business in the state;

(4)    The membership fee, which shall in no case be greater than five dollars;

(5)    The term for which such association is incorporated, not exceeding forty years;

(6)    The names and residences of the persons who subscribed to and acknowledged such articles of incorporation, together with the legal description of the lands owned by them;

(7)    Names and residences of those who have subscribed for membership with a description of the lands of each.

Source: SDC 1939, § 40.1802.

40-23-4. Filing of map showing boundaries--Revision on change of boundaries--Revocation of lease for failure to file.

Cooperative grazing associations organized under this chapter shall, upon completion of organization and incorporation, file with the register of deeds in the county or counties in which any such lands lie, a map or plat clearly showing the boundaries of the district proposed to be created and the name of such district. Whenever any incorporated grazing district shall enlarge or reduce the area included within its district, or change or modify its boundaries, it shall file copies of a revised map or plat as provided above for the original map or plat. Failure to file maps or plats as above provided shall be sufficient cause for a revocation, by the county commissioners, of any lease of county land which shall have been made to said district.

Source: SDC 1939, § 40.1807.

40-23-5. Arbitration of overlapping district boundaries.

When any cooperative grazing districts shall have overlapping boundaries, their boundaries shall be determined by arbitration. Each district shall appoint an arbitrator, and such arbitrators shall appoint a third. The decision of any two of such three arbitrators shall be binding on both districts.

Source: SDC 1939, § 40.1807.

40-23-6. Power to lease, acquire, and dispose of land.

Each association organized under this chapter shall have the power to lease or acquire, by purchase or otherwise, lands for grazing purposes or for raising forage crops and to dispose of such lands purchased by trade, sale, or otherwise.

Source: SDC 1939, § 40.1803 (1).

40-23-7. Power to lease county land.

Each association organized under this chapter shall have the power to lease from the county or counties in which the cooperative grazing district is located, land acquired by such county or counties through tax sale or otherwise, which is located in or contiguous thereto and not already under lease.

Source: SDC 1939, § 40.1803 (3).

40-23-8. Fences, reservoirs, and facilities for care of livestock.

Each association organized under this chapter shall have the power to construct or acquire fences, reservoirs, or other facilities for the care of livestock.

Source: SDC 1939, § 40.1803 (2).

40-23-9. Power to apportion grazing rights among members.

Each association organized under this chapter shall have the power to apportion to members grazing rights within the cooperative grazing district on such terms, conditions, and limitations as may be specified by the directors thereof, or in accordance with the terms and limitations imposed for the purpose of conservation, restoration, and improvement of forage resources in the leasing of county, state, or federal land.

Source: SDC 1939, § 40.1803 (4).

40-23-10. Adoption of bylaws--Amendment.

Each association incorporated under this chapter shall within thirty days after its incorporation, adopt, by majority vote of its members, for its government and management, a code of bylaws, not inconsistent with the powers granted under this chapter. Such bylaws may be altered or amended by any meeting of the members, regularly called, by a two-thirds vote of the members present.

Source: SDC 1939, § 40.1805.

40-23-11. Contents of bylaws.

Each association incorporated under this chapter may under its bylaws provide for any or all of the following:

(1)    The time, place, and manner of calling its meetings;

(2)    That in voting at meetings, no proxies shall be allowed;

(3)    The number of directors of the association, their tenure of office, and the time and manner of their election; the officers, their tenure of office, the manner of their election, and their duties;

(4)    The number of members constituting a quorum;

(5)    The manner of filling vacancies in the board of directors or of any office;

(6)    Penalties for violation of these bylaws or of any regulation, limitations, or restrictions imposed for the conservation of forage within the district.

Source: SDC 1939, § 40.1805.

40-23-12. Right to membership in district--Compliance with requirements.

Any person, partnership, limited liability company, association, corporation, or legally authorized agent of either thereof, owning or leasing forage producing land within or contiguous to the boundaries of the cooperative grazing district or proposed district may become a member upon payment of the membership fee, and complying with the bylaws, and complying with the regulations and limitations determined by the board of directors and by the terms of the lease of leased land within the area.

Source: SDC 1939, § 40.1804; SL 1994, ch 351, § 96.

40-23-13. Voting by members.

Each member of a cooperative grazing district shall have but one vote. Voting by proxy shall not be allowed.

Source: SDC 1939, § 40.1804.

40-23-14. Membership rights on transfer of land.

When any member of a cooperative grazing district shall dispose of all or a part of the lands owned or leased by him so that another individual or other individuals shall by the purchase and ownership or lease of such lands acquire right to membership, then the rights and interests involved shall be determined by the bylaws.

Source: SDC 1939, § 40.1804.

40-23-15. Directors to exercise corporate power.

The directors shall have power to exercise the full corporate power as authorized in this chapter.

Source: SDC 1939, § 40.1806 (1).

40-23-16. Directors' power to lease land.

The directors may enter into leases on behalf of the association with persons, corporations, limited liability companies, partnerships, or with the county or counties in which the district is located or with the state or the federal government for tracts of land within, contiguous to, or adjacent to such districts.

Source: SDC 1939, § 40.1806 (6); SL 1994, ch 351, § 97.

40-23-17. Directors' regulations--Manner of utilizing grazing.

The directors shall have power to make regulations for the management and control of the affairs of the association and of the manner of utilization of grazing within their district not inconsistent with the terms, conditions, and limitations of leases of land contained therein.

Source: SDC 1939, § 40.1806 (2).

40-23-18. Directors' apportionment of grazing rights among members.

The directors shall have power to apportion grazing rights within their districts to members on a commensurate basis.

Source: SDC 1939, § 40.1806 (3).

40-23-19. Fencing and assignment of exclusive use of areas.

Cooperative grazing associations may cross-fence any part or all of the area and assign to each member a unit so fenced for his exclusive use, provided he follows the conservation practices outlined in the bylaws.

Source: SDC 1939, § 40.1807.

40-23-20. Grazing permits to nonmembers.

The directors shall have power to grant to nonmembers grazing permits within such districts when the amount of forage within the district is greater than the need of the members, but no such permits shall be granted when such use shall be inconsistent with the terms of leases of county, state, or federal land within the district or with a safe policy of forage conservation within such district.

Source: SDC 1939, § 40.1806 (4).

40-23-21. Fees and assessments determined by directors.

The directors shall have power to determine grazing fees to be imposed on members or nonmembers on a per head basis for grazing rights or to determine assessments on members on a per head grazing basis for the purchase of lands situated within, contiguous to, or adjacent to such districts.

Source: SDC 1939, § 40.1806 (5).

40-23-22. Requirements as to male animals.

The directors shall have power to specify the breed, quality, and number of male breeding animals which each member must furnish when stock are grazed in a common pasture within the grazing district. The association may also prescribe the breed and quality of bulls that are to run in the area.

Source: SDC 1939, §§ 40.1806 (7), 40.1807.

40-23-23. Reserves established by directors.

The directors shall have power to set up such reserves as in their judgment may be advisable, after all costs, expenses, rentals, and other legal charges against the association have been provided for.

Source: SDC 1939, § 40.1806 (8).

40-23-24. Purchase or lease of county lands.

Any incorporated grazing association may purchase or lease any and all lands owned by the county not already leased, and located within the proposed district.

Source: SDC 1939, § 40.1808.

40-23-25. Exemption of county land from usual leasing requirements--Leased tax deed lands not subject to sale--Option for purchase by district.

A lease pursuant to § 40-23-24 shall not be subject to the provisions of chapter 7-30, and such lease may be for a period of not more than ten years, with the lands thus leased not subject to sale to other parties. The lease may contain a provision for the privilege of purchase by the incorporated grazing district at any time during the term of the lease at such appraised price as shall be determined at or prior to the origination of the lease.

Source: SDC 1939, § 40.1808.

40-23-26. Regulatory powers retained by county commissioners on leased land.

No lease shall be entered into pursuant to § 40-23-24 until the board of county commissioners, in order to conserve and protect the existing forage resources of such county land and to restore the maximum carrying capacity of such land shall reserve the right to regulate and limit the amount of grazing thereon and the limitations and restrictions imposed shall be made a part of such lease.

Source: SDC 1939, § 40.1808.

40-23-27. Rentals for county lands--Variable scale.

Rentals for county lands leased under § 40-23-24 shall be payable annually.

The county commissioners may provide for a variable scale of rental charges, based on market prices for livestock, or livestock products, or the number and character of stock, or the carrying capacity of the land, or on any combination of these factors.

Source: SDC 1939, § 40.1808.

40-23-28. Noncompliance with requirements as ground for forfeiture of county lease.

Failure to comply with regulations prescribed in a lease pursuant to § 40-23-24 relating to protection, administrations, or improvement of such grazing districts or to make payments of annual rentals within the time prescribed, shall be grounds for forfeiture and cancellation of such lease.

Source: SDC 1939, § 40.1808.

40-23-29. Exchange of county land for private land within grazing district.

The board of county commissioners may exchange county lands outside a grazing district for privately owned land of approximately equal value within a grazing district.

Source: SDC 1939, § 40.1808.

40-23-30. Distribution of property on dissolution of grazing district.

Whenever any cooperative grazing district is dissolved by act of its board of directors or otherwise, then the rights and interests therein shall be distributed among the members in proportion to the amounts paid in by the various members as assessments, as nearly as the board of directors may determine.

Source: SDC 1939, § 40.1809.