Oklahoma Turnpike Authority, Application of
| Decision Date | 08 January 1960 |
| Docket Number | No. 38845,No. 932,932,38845 |
| Citation | 348 P.2d 510,1960 OK 1 |
| Parties | In the Matter of APPLICATION OF OKLAHOMA TURNPIKE AUTHORITY for a Determination of the Validity of the Trust Fund and the Earmarking of Revenues Thereto, the Validity of a Pledge Thereof By the Authority As Provided In Enrolled House Billof the 1959 Session of the Oklahoma Legislature and for a Determination As To the Constitutionality and Validity of Said Act And The Provisions Thereof. |
| Court | Oklahoma Supreme Court |
Syllabus by the Court.
1. By virtue of the provisions of Art. 7, Sec. 2 of the Constitution the Legislature may confer upon the Supreme Court original jurisdiction to hear a specified application by the Oklahoma Turnpike Authority.
2. Upon proper application of the Oklahoma Turnpike Authority and after requiring due notice fixing a protest period and a date for hearing, and after conducting a hearing on such application and any protest, it is the authority and duty of this court to answer such specific questions as are presented.
3. The Legislature may apportion a specifically stated part or portion of the tax collected from motor fuel consumed on turnpikes of Oklahoma to a Trust Fund to be used as a guarantee for the payment of interest upon Turnpike Bonds subsequently issued for the construction of additional Turnpikes which are authorized by law, and the provisions in Sections 1, 3 and 4, in the 1959 Turnpike Act, House Bill 932 of the 1959 Legislature, 69 O.S.1959 Supp. Sections 680, 682 and 683 providing therefor are valid.
4. The Oklahoma Turnpike Authority may expend or pledge money from the Trust Fund mentioned in the preceding paragraph as money accumulates therein, for the purpose of making up any deficiencies in the moneys available to meet any interest requirements on Turnpike Bonds subsequently issued, and for the payment of certain expenses in financing additional turnpikes within the limitations provided by sub-divisions (a) and (b) of Section 4 of the 1959 Turnpike Act, H.B. 932 of the 1959 Legislature, 69 O.S.Supp.1959, Sec. 683.
5. When the Turnpike Authority shall have segregated motor fuel excise tax money into said Trust Fund, and all or some part thereof is not presently needed for expenditure purposes, the Turnpike Authority may temporarily invest same in Federal Accounts Receivable of the Department of Highways of the State of Oklahoma, or in any securities of the United States of America in the manner set out in the 1959 Act.
6. The Oklahoma Turnpike Authority is fully authorized to construct a turnpike between and connecting with the Turnner Turnpike near the Oklahoma City terminus, and Wichita Falls, Texas, and in connection therewith may enter into an agreement with the Oklahoma Department of Highways for the construction by the Department of Highways of a four lane, divided, toll-free bridge on a United States or State Highway across the South Canadian River south or west of Will Rogers Airport and west of the north-south line of May Avenue, with 1/4th of the cost of said bridge and the approaches thereto to be paid by the Oklahoma Turnpike Authority, and the remaining 3/4ths to be paid from State and Federal-Aid Funds.
7. The Oklahoma Turnpike Authority is fully authorized to construct and finance a Turnpike, or any part or parts thereof, beginning at the Oklahoma-Texas State Boundary line, and extending North on a route lying east of the Cities and Towns of Wilson, Maysville, Norman and Oklahoma City, and West of the Eastern State line of Oklahoma to a connection or connections between the Turner Turnpike and the south side of the Arkansas River in accordance with the terms of said Act.
8. The agreement or agreements for financing the two Turnpikes above referred to may properly contain a provision that tolls shall continue to be charged on all Turnpikes until the bonds and the interest thereon, of all Turnpikes have been fully paid.
9. The Oklahoma Constitution, Article II, Section 15 prohibits the passing of any law impairing the obligation of contracts and therefore the provision in Section 2 of the 1959 Act, 69 O.S.Supp.1959, Sec. 681 that prior contracts shall be nullities is of no force or effect.
10. Any insurance company may legally invest not to exceed 10 per cent of its assets in Turnpike Revenue Bonds of any one Turnpike in Oklahoma.
11. The Legislature in its discretion may properly designate the Oklahoma Turnpike Authority an instrumentality of the State and make the exercise of its powers in the construction, operation and maintenance of Turnpike Projects an essential governmental function of the State with all of the attributes thereof.
Application in the nature of an original action, by the Oklahoma Turnpike Authority for determination as to the constitutionality and validity of certain provisions of Enrolled H.B. 932 of the 1959 Legislature, and for the answer to nine specified questions. Such action being specifically authorized by Section 5 of the 1959 Act, 69 O.S.Supp.1959, Section 668, upon giving of required notice fixing protest period and setting hearing date. Perry J. Baker filed written protest and both parties attended the hearing.
Determination granted and specified questions adjudicated and answered.
Norman E. Reynolds, Oklahoma City, Robert L. Wheeler, Tulsa, Leon Shipp, Looney, Watts, Looney & Nichols, Oklahoma City, for the Turnpike Authority.
Leroy Powers, Oklahoma City, Hardin Ballard, Purcell, for protestant.
The Oklahoma Turnpike Act of 1959, enrolled House Bill 932, of the 1959 Legislature, became effective on the 16th day of July, 1959.
It was provided in the second paragraph of section 5 of the Act, 69 O.S.Supp. § 668, that:
'Immediately upon the passage and approval of this Act, the Oklahoma Turnpike Authority shall file an application with the Supreme Court, under the procedure set out above, for a determination of the validity of such Trust Fund and the earmarking of revenues thereto, the validity of a pledge thereof by the Authority as provided in this Act, and any other questions as to the constitutionality or validity of this Act that may be brought before the Supreme Court, and exclusive, original jurisdiction is hereby conferred upon the Supreme Court to hear and determine such application. * * *'
The 'procedure set out above' relates to the giving and publishing of notice, advising of the unrestricted right of protest, fixing the time allowed therefor and naming the hearing date. This detail was set out in the first paragraph of section 5 and need not be copied herein.
The Legislature had authority to confer this additional jurisdiction on the Supreme Court by reason of the provisions of the Constitution of Oklahoma, Article 7, Section 2, which generally states the original jurisdiction of the Supreme Court and provides that the Supreme Court may exercise such other and further jurisdiction as may be conferred upon it by law.
Pursuant to the above quoted provision, the applicant, Authority, filed this application for the determinations stated. Due notice was given. Protest was filed by Perry J. Baker and hearing was had at which both Authority and protestant appeared and participated by counsel.
This 1959 Act generally followed Turnpike legislation which has been passed upon and construed by this court in several cases: Application of the Oklahoma Turnpike Authority for the Approval of Bonds, 1950, 203 Okl. 335, 221 P.2d 795; Application of Oklahoma Turnpike Authority for Approval of Bonds, 1952, 206 Okl. 617, 246 P.2d 327, and Application of Oklahoma Turnpike Authority for Approval of Bonds, Okl.1954, 277 P.2d 176.
Many of the questions which might ordinarily arise as to the construction and maintenance and financing of turnpike construction have been answered in these former decisions, and under those decisions turnpikes have been constructed and in operation for a number of years. However, this 1959 Act contains some other or new provisions as to financing, construction and operation of turnpikes. While this 1959 Act is based upon the same general plan and purpose to finance and build additional turnpikes, the new or additional details of plan present specific questions to be here determined.
Upon the application of Authority, and the contentions of protestants, the several questions here presented for consideration and determination are numbered and treated consecutively for convenience and to meet the method of presentation.
First Question:
'May the Legislature apportion that portion of the tax collected from motor fuel consumed on the several Turnpikes in the State of Oklahoma to a Trust Fund to be used as a guarantee for the payment of interest upon Turnpike Bonds hereafter issued for the construction of additional Turnpikes as authorized by the Legislature or a vote of the people?'
In former Turnpike legislation all money collected as tolls for travel upon the Turnpike was placed in a general Turnpike Trust Fund to be used to pay for construction and maintenance of the Turnpike. This 1959 Act would create a separate segregated trust fund to be created by and contributed to by allocation of a stated portion of the motor fuel tax collected on motor fuel consumed on all Oklahoma Turnpike Projects, with limitation on the aggregate amount of such allocations, and with contingent provisions for the use of this fund by Authority, and with provisions for repayment to this fund of any money so withdrawn therefrom by Authority.
That is accomplished by sections 1, 3 and 4 of the 1959 Act. Section 1 of the Act, 69 O.S.Supp.1959 § 680, is here quoted in full:
'(a) Beginning with the first apportionment of motor fuel taxes made after the passage and approval of this Act, and until all turnpike revenue bonds hereafter issued by the Oklahoma Turnpike Authority and the interest thereon shall have been paid, or a sufficient amount for the payment of all such bonds and the interest thereon shall have been set aside...
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