FINAL JUDGMENT
"This proceeding in Quo Warranto seeks to prevent the exercise of corporate powers by The Birmingham Racing Commission (the 'Commission') and also seeks a declaratory judgment that Act No. 84-131 of the 1984 Regular Session of the Legislature of Alabama (the 'Act') is unconstitutional. In challenging the constitutionality of the Act the Plaintiffs have raised various issues concerning: the constitutionality and effect of Section 11-40-12, Code of Alabama (1975); the applicability of Article IV Sections 94, 104 and 105 of the Constitution of Alabama of 1901 ('Alabama Constitution') to the Act; the variances between the notice of the Act which was published and the Act as passed; and the applicability of the equal protection clause of the United States Constitution.
"The issues were submitted to the Court on briefs and joint exhibits. No oral testimony was taken.
"Several of the issues turn on whether the Act is a local law or a general law. Before the ruling in Peddycoart v. City of Birmingham, 354 So.2d 808 (Ala.1978) Article IV, Section 110 of the Alabama Constitution defined a local law as 'a law which
applies to any political subdivision or subdivisions of the state less than the whole.' The Peddycoart decision stated 'Henceforth when at its enactment legislation is local in its application it will be a local act and subject to all of the constitutional qualifications applicable to it.' Amendment No. 375 to the Alabama Constitution was passed which amended Article IV, Section 110 and which granted the legislature the authority to enact a schedule of not more than eight classes of municipalities based on population. Amendment 375 provided that a law that applied to a whole class of municipalities was a general law. The legislature then passed an act which became Section 11-40-12 of the Code and which established the eight classes of municipalities authorized by Amendment 375. Finally, Amendment 397 to the Alabama Constitution was passed which incorporated the definition of a general law contained in Amendment 375 and which specifically 'ratified, approved, validated and confirmed' the classes of municipalities established by the act which became Section 11-40-12. Therefore, Article IV, Section 110, as amended, now defines a general law as 'a law which in its terms and effect applies either to the whole state, or to one or more municipalities of the state less than the whole in a class.' Section 110 goes on to state that general laws for any purpose may be enacted for any class. When a general law applies to only one municipality, notice of such law must be given as required in Section 106 of the Alabama Constitution for special, private or local laws. This notice requirement does not, however, make the general law a local law. Local laws are now defined as 'a law which is not a general law or a special or private law.'
"Among other things, the Act provides for horse racing and pari-mutuel wagering in Class 1 municipalities and for the establishment of a racing commission to regulate those activities. A Class 1 municipality is defined in Section 11-40-12 as 'all cities with a population of 300,000 inhabitants or more' and the population requirement was based on the 1970 federal decennial census. Birmingham was the only city to fall into Class 1 and will remain as the only Class 1 municipality unless future legislation changes the situation. Thus, while the Act applies to all Class 1 municipalities, it only applies to Birmingham.
"Based on the above, it is the opinion of the Court that Section 11-40-12 is constitutional having been passed pursuant to one constitutional amendment and ratified, approved, validated and confirmed by another. It is further the opinion of the Court that Article IV, Section 110 of the Alabama Constitution now specifically permits general laws to be passed with [sic] apply only to one class of municipalities even when that class is made up of only one municipality. Section 110 does, however, still provide for local laws when a law does not apply to the entire state and does not apply to one class as established in Section 11-40-12. [Opinion of the Justices No. 268, 381 So.2d 632 (Ala.1980) ]. If the Act is a local law, it violates several provisions of Article IV, Section 104 and Article IV, Section 105 of the Alabama Constitution. It appears to the Court that if the Act applies to all of Jefferson County, Alabama, it is a local law. However, Section 47 of the Act provides that the provisions of the Act are severable. The Court finds that it is the express intention of the Act to apply to Class 1 municipalities and, as such, to be a general law under the provisions of Section 11-40-12 and Article IV, Section 110, as amended. The Court further finds that it can sever those provisions which relate to Jefferson County as a whole and thereby construe the Act as a general law. Upon review of the Act the Court finds that the only provision which needs to be severed is that part of Section 46 that pertains to a county-wide referendum. In addition to the general severability clause of Section 47, Section 46 contains a specific severability clause which allows for the severance of the provision pertaining to the county-wide referendum.
"Article IV, Section 94, as amended by Amendment No. 112, of the Alabama Constitution provides that the legislature may not authorize a city to lend its credit, or to
grant public money to any individual, association or corporation. This section has been held to apply only to private corporations, [Opinion of the Justices No. 147, 263 Ala. 174, 81 So.2d 699 (1955) ]. The Commission is a public corporation and thus, as to loans it may receive, it is not subject to the restrictions of Article IV, Section 94, as amended, which apply to private corporations. Furthermore, the Commission is not, itself, a political subdivision of the state so that the provisions of Article IV, Section 94, as amended, do not apply to the Commission's own transactions. [Alabama Hospital Association v. Dillard, 388 So.2d 903 (Ala.1980); Knight v. West Alabama Environmental Imp. Auth., 287 Ala. 15, 246 So.2d 903 (1971) ].
"Article IV, Section 104 of the Alabama Constitution provides that the legislature shall not pass a special, private, or local law in any of the 31 subject areas set out therein. The section ends with a statement that the legislature shall pass general laws covering those subjects. Here, Article IV, Section 110 of the Alabama Constitution, as amended, creates a severe conflict with the general need to have uniform laws on some subjects throughout the entire state. By definition, Section 104 is not applicable to the Act because Section 104 applies to special, private and local laws and the Court finds the Act to be a general law under Section 110. However, many of the subjects which would formerly have come within Section 104 must still be considered under the equal protection clause of the United States Constitution. This is clearly shown by the decision in Peddycoart, supra, and in Crandall v. City of Birmingham, 442 So.2d 77 (Ala.1983). In considering the equal protection clause, it should be noted that, whereas Section 104 prevented the passage of any local legislation concerning certain subjects, equal protection considerations do allow for legislation which is applicable to specific geographical areas. [Salsburg v. State of Maryland, 346 U.S. 545, 74 S.Ct. 280, 98 L.Ed. 281 (1954), Young v. State, 283 Ala. 676, 220 So.2d 843 (1969) ]. Even so, the Court finds that some of the provisions of the Act do violate the equal protection provisions and are therefore invalid. Section 37 of the Act provides that the holding of a horse [race] without a license, and some forms of wagering, shall be a misdemeanor. Section 39 of the Act provides that certain tampering with horses shall be a felony. Section 40 of the Act provides that with the exception of television or radio coverage, the transmission of certain racing information within specified periods before and after the races shall be a felony. It is the opinion of the Court that felonies and misdemeanors must be applicable to the state as a whole, not just Class 1 municipalities and, therefore, Sections 37, 39, and 40 of the Act are invalid.
"Section 10(9) of the Act provides that the Commission may adopt reasonable rules, regulations and conditions covering racing and pari-mutuel wagering. Such rules and regulations may include civil penalties for the violation thereof. Section 10(10) gives the Commission the power to issue subpoenas to...
