AGO 81-019.

• Case Date: March 04, 1981
• Court: North Dakota

North Dakota Attorney General Opinions 1981. AGO 81-019. OPINION 81-19Date Issued: March 4, 1981 (AGO 81-19) Requested by: Lieutenant Governor Ernest M. Sands- QUESTION PRESENTED - Whether a law which provides an appropriation for merit scholarship awards to eligible persons, and which offers these financial awards to such persons solely on the basis of academic achievement and without regard to financial need, is constitutional.- ATTORNEY GENERAL'S OPINION - It is my opinion that a law which provides for an appropriation for merit scholarship awards to eligible students based on that individual's test results from an academic achievement test, and without regard to financial need, is not specifically prohibited by the North Dakota Constitution. - ANALYSIS - No provision of the North Dakota Constitution specifically prohibits an appropriation for merit scholarships. The most relevant provision is Article X, Section 18 of the North Dakota Constitution (formerly Section 185) which provides as follows:

Section 18. The state, any county or city may make internal improvements and may engage in any industry, enterprise or business, not prohibited by article XX of the constitution, but neither the state nor any political subdivision thereof shall otherwise loan or give its credit or make donations to or in aid of any individual, association or corporation except for reasonable support of the poor, nor subscribe to or become the owner of capital stock in any association or corporation. (Emphasis supplied).

The Supreme Court of North Dakota has interpreted Article X, Section 18 of the North Dakota Constitution on several occasions. See Gripentrog v. City of Wahpeton, 126 N.W.2d. 230 (N.D. 1964); and Northwestern Bell Telephone Co. v. Wentz, 103 N.W.2d. 245 (N.D. 1960). In Gripentrog, the city had issued revenue bonds under the Municipal Industrial Development Act for the construction of a sugar beet processing plant which it proposed to lease to a private company. The question arose relative to whether this proposed development violated Section 185 (Article X, Section 18) of the North Dakota Constitution. In addressing this issue, the Supreme Court made the following relevant statements:

Section 185 does not prohibit the making of loans or giving of credit or making donations in connection with a city's engaging in any

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