Fairbanks v. Sheffield
| Decision Date | 02 July 1956 |
| Docket Number | No. 5-1045,5-1045 |
| Parties | Clyde FAIRBANKS, Appellant, v. John C. SHEFFIELD et al., Appellees. |
| Court | Arkansas Supreme Court |
Spitzberg, Mitchell & Hays, Little Rock, for appellant.
Tom Gentry, Atty. Gen., and Roy Finch, Jr., Asst. Atty. Gen., for appellees.
The appellees, as the members of the State Publicity and Parks Commission, have adopted a resolution providing for the issuance of $900,000 of revenue bonds to finance the construction of a new lodge, twenty-five cottages, and other improvements at Lake Catherine State Park. The bonds are to be issued under the authority of Act 399 of 1953. Ark.Stats.1947, §§ 9-617 to 9-626. By this taxpayer's suit the appellant seeks (a) a declaratory judgment holding that in five particulars Act 399 is unconstitutional or has been repealed, and (b) an injunction against the proposed action of the Commission. The chancellor entered a declaratory decree upholding the statute in all five respects and dismissing the complaint.
I. It is first contended that Act 399 embodies an unconstitutional delegation of legislative power, in that the Commission is authorized to determine what improvements to the state parks system are needed, what their cost will be, what rentals and service charges should be imposed, and other details in connection with the proposed development of Lake Catherine State Park.
This contention is not well taken. The General Assembly has exercised its legislative function by creating the state park system, committing its management to the appellee Commission, authorizing the Commission to maintain 'suitable public service privileges and conveniences' and to make 'reasonable charges' for their use, and empowering the Commission to extend, develop, and improve the park system. Ark.Stats. §§ 9-601 and 9-617. The vesting of all legislative power in the General Assembly does not require its members to examine the plans for each cabin, to determine what each building should cost, or to fix the rentals and fees charged at the various state parks. These administrative details pertain merely to the execution of the law and may properly be left to the discretion of a subordinate agency. Hogue v. Housing Authority of North Little Rock, 201 Ark. 263, 144 S.W.2d 49.
II. Section 10 of Act 399 requires that the revenues securing the payment of the bonds be deposited in a bank instead of being covered into the state treasury. The contention that this procedure is forbidden by the constitution was rejected in Gipson v. Ingram, 215 Ark. 812, 223 S.W.2d 595, and need not be re-examined.
It is also insisted that the provisions of § 10 were impliedly repealed by Act 330 of 1955, which directs the Commission to deposit in the state treasury all moneys received from the park system. Ark.Stats. § 9-206. The legislative background of the 1955 statute refutes the suggestion of an implied repeal. It was provided by Act 170 of 1937 that all money received from the operation of the state parks should be paid into the state treasury. Ark.Stats. § 9-601(6). With that general law on the books the legislature adopted Act 399 of 1953, which deals only with the issuance of revenue bonds and which expressly directs that the pledged revenue be placed in a bank. This special directive is evidently intended to facilitate the sale of the bonds and represents an exception to the general policy adopted in 1937. By Act 330 of 1955 the legislature abolished the State Forestry and Parks Commission and transferred its powers and duties to the appellee Commission. Among the powers so transferred is that of issuing revenue bonds under the authority of Act 399 of 1953. It is true that in Act 330 of 1955 the legislature repeated its 1937 directive that all park funds be paid into the treasury, but there is no reason to think that the restatement of the general principle was intended to do away with the specific exception that the legislature had already brought into existence.
III. The appellant maintains that Amendment 20 to the state constitution prohibits the issuance of these bonds without their first having been approved by a popular vote. Act 399 provides, however, that the bonds shall not constitute an indebtedness of the State within the meaning of any constitutional limitation. It is settled that Amendment 20 does not apply to bonds for which the State's faith and credit are not pledged. Davis v. Phipps, 191 Ark. 298, 85 S.W.2d 1020, 100 A.L.R. 1110; McArthur v. Smallwood, Ark., 281 S.W.2d 428.
IV. Pursuant to § 4 of Act 399 the bond resolution provides that in the event of default in the payment of the bonds any bondholder may apply for the appointment of a receiver, who may take possession of the properties and facilities of Lake Catherine State Park and operate them. The receiver is authorized to fix and collect fees and charges sufficient to provide revenues for the payment of the bonds and the costs of the receivership.
The appellant is correct in his contention that this section of Act 399 is...
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