Nebraska State Constitution Article VII-5
Fines, penalties, and license money; allocation; use of forfeited conveyances.
(1) Except as provided in subsections (2) and (3) of this section, all fines, penalties, and license money arising under the general laws of the state, except fines and penalties for violation of laws prohibiting the overloading of vehicles used upon the public roads and highways of this state, shall belong and be paid over to the counties respectively where the same may be levied or imposed, and all fines, penalties, and license money arising under the rules, bylaws, or ordinances of cities, villages, precincts, or other municipal subdivision less than a county shall belong and be paid over to the same respectively. All such fines, penalties, and license money shall be appropriated exclusively to the use and support of the common schools in the respective subdivisions where the same may accrue, except that all fines and penalties for violation of laws prohibiting the overloading of vehicles used upon the public roads and highways shall be placed as follows: Seventy-five per cent in a fund for state highways and twenty-five per cent to the county general fund where the fine or penalty is paid.
(2) Fifty per cent of all money forfeited or seized pursuant to enforcement of the drug laws shall belong and be paid over to the counties for drug enforcement purposes as the Legislature may provide.
(3) Law enforcement agencies may use conveyances forfeited pursuant to enforcement of the drug laws as the Legislature may provide. Upon the sale of such conveyances, the proceeds shall be appropriated exclusively to the use and support of the common schools as provided in subsection (1) of this section.
- Neb. Const. art. VIII, sec. 5 (1875);
- Transferred by Constitutional Convention, 1919-1920, art. VII, sec. 5;
- Amended 1956, Laws 1955, c. 195, sec. 1, p. 558;
- Amended 1984, Laws 1984, LR 2, sec. 1.
1. License money
2. Fines and penalties
1. License money
Statute requiring use of hunting and fishing license fees for other than school purposes sustained as constitutional. Wilcox v. Havekost, 144 Neb. 562, 13 N.W.2d 889 (1944).
License fees received by Liquor Control Commission, and imposed for benefit of state, do not go to school fund. School Dist. of Omaha v. Gass, 131 Neb. 312, 267 N.W. 528 (1936).
Act imposing license fees upon persons desiring to fish and hunt in state, and requiring such fees to be paid to State Treasurer for benefit of state school funds is not in conflict with this section. State ex rel. Stevens v. Nickerson, 97 Neb. 837, 151 N.W. 981 (1915).
Where sole purpose of occupation tax is to raise revenue, taxes received are not license money within the meaning of this section. State ex rel. School Dist., City of Auburn v. Boyd, 63 Neb. 829, 89 N.W. 417 (1902).
License money cannot be diverted from school fund under guise of occupation tax. State ex rel. School Dist. of City of Lincoln v. Aitken, 61 Neb. 490, 85 N.W. 395 (1901).
2. Fines and penalties
Restitution ordered in an amount not exceeding the actual damage sustained by the victim, pursuant to section 29-2280, is not a penalty within the meaning of this provision and is constitutional. State v. Moyer, 271 Neb. 776, 715 N.W.2d 565 (2006).
Court costs are not fines or penalties within the meaning of this Article and section of the Constitution of Nebraska. DeCamp v. City of Lincoln, 202 Neb. 727, 277 N.W.2d 83 (1979).
The provision of section 48-125, R.R.S.1943, for added amount for waiting time does not impose a penalty to an individual within prohibition of this section. University of Nebraska at Omaha v. Paustian, 190 Neb. 840, 212 N.W.2d 704 (1973).
Forfeited recognizances and cash bail bonds are penalties arising under the general laws of the state and should be distributed to the several school districts of the county. School Dist. of Omaha v. City of Omaha, 175 Neb. 21, 120 N.W.2d 267 (1963).
Fines, penalties, and license money arising under city ordinance are to be apportioned among all school districts in city in proportion to the number of children of school age residing in areas of districts within the city. School Dist. No. 54 of Douglas County ex rel. Hogan v. Howell, 172 Neb. 404, 110 N.W.2d 52 (1961).
Fines, penalties, and license money under general laws of state are apportioned among all school districts in county. School Dist. No. 54 of Douglas County ex rel. Hogan v. School Dist. of Omaha, 171 Neb. 769, 107 N.W.2d 744 (1961).
Collections from violations for overparking under parking-meter ordinance were penalties belonging to school fund. School District of McCook v. City of McCook, 163 Neb. 817, 81 N.W.2d 224 (1957).
Words "fines, penalties, and license money" refer to and include fines imposed in punishment of crimes and misdemeanors and exactions imposed for violation of ordinances having the characteristics of a criminal proceeding, and do not include penalties provided for failure to pay taxes. School District of the City of Omaha v. Adams, 147 Neb. 1060, 26 N.W.2d 24 (1947).
Act that provides for recovery of penalty by county, but does not provide manner of distribution of penalty, does not violate this section. In re Estate of Rogers, 147 Neb. 1, 22 N.W.2d 297 (1946).
Statute making railroad liable to shipper for penalty for delay, in addition to actual damages is void, as all penalties must go to school funds. Sunderland Bros. Co. v. Chicago, B. & Q. R. R. Co., 104 Neb. 319, 179 N.W. 546 (1920).
Statute providing for tax against owner and building adjudged to be liquor nuisance is void as diverting penalty from school fund. State ex rel. McGuire v. Macfarland, 104 Neb. 42, 175 N.W. 663 (1919); State ex rel. English v. Fanning, 97 Neb. 224, 149 N.W. 413 (1914), reversing 96 Neb. 123, 147 N.W. 215 (1914).
Statute imposing only compensatory damages for delay in nature of liquidated damages is valid. Cram v. Chicago, B. & Q. Ry. Co., 85 Neb. 586, 123 N.W. 1045 (1909), 84 Neb. 607, 122 N.W. 31 (1909), affirmed in Chicago, B. & Q. Ry. Co. v. Cram, 228 U.S. 70 (1913).
All fines and penalties, when collected, are required to be paid into the school fund. Sothman v. State, 66 Neb. 302, 92 N.W. 303 (1902).
Act allowing compensation and damages to injured party in case of embezzlement is not a fine or penalty within the meaning of this section. Everson v. State, 66 Neb. 154, 92 N.W. 137 (1902).
Statute fixing fifty dollars damage for failure and refusal of mortgagee to release chattel mortgage is not in conflict with this section. Clearwater Bank v. Kurkonski, 45 Neb. 1, 63 N.W. 133 (1895).
While ordinarily, with respect to state causes of action, punitive damages contravene this section and are not allowed, punitive damages are recoverable in a suit filed in Nebraska state court pursuant to 42 U.S.C. section 1983. State ex rel. Cherry v. Burns, 258 Neb. 216, 602 N.W.2d 477 (1999).
Statute providing for recovery of treble damages in civil action was unconstitutional. Abel v. Conover, 170 Neb. 926, 104 N.W.2d 684 (1960).
Statutory provision making contract wholly void was remedial and not penal. Arthur v. Trindel, 168 Neb. 429, 96 N.W.2d 208 (1959).
This provision has no application to action by borrower asserting violation of Installment Loan Act. McNish v. General Credit Corp., 164 Neb. 526, 83 N.W.2d 1 (1957).
Officer collecting money belonging to school fund is custodian thereof and if he defaults he is ineligible to hold any office created by Constitution or statutes. State ex rel. Broatch v. Moores, 52 Neb. 770, 73 N.W. 299 (1897).
Money collected should be divided pro rata among school districts. King v. State ex rel. School Dist. No. 1, Hall County, 50 Neb. 66, 69 N.W. 307 (1896); Guthrie v. State ex rel. School Dist. No. 7, Sioux County, 47 Neb. 819, 66 N.W. 853 (1896).