Anderson v. O'BRIEN

524 P.2d 390, 84 Wash. 2d 64, 1974 Wash. LEXIS 713
CourtWashington Supreme Court
DecidedJuly 11, 1974
Docket42818
StatusPublished
Cited by51 cases

This text of 524 P.2d 390 (Anderson v. O'BRIEN) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. O'BRIEN, 524 P.2d 390, 84 Wash. 2d 64, 1974 Wash. LEXIS 713 (Wash. 1974).

Opinions

Utter, J.

— Petitioners, members of the Economic Assistance Authority, seek a writ of mandamus to compel respondent O’Brien, as state treasurer, to sign a warrant issued by that authority to the Kalispel Indian Community. The treasurer, acting on advice of the Attorney General, refused to sign the warrant because of statutory and constitutional questions raised by the proposed disbursement.

The broad question presented by this original proceeding in the Supreme Court is whether, consistent with the Economic Assistance Act of 1972 (RCW 43.31A) and the Washington State Constitution, state funds may be disbursed to a federally recognized Indian tribe for the purpose of developing and constructing an industrial site and building to be leased to private manufacturing firms in order to stimulate job opportunities and reduce unemployment for the tribe.

We hold, first, that the Kalispel tribe is a proper recipient of state funds under the Economic Assistance Act of 1972 and the state constitution, as an entity with wholly public functions; second, that the legislature authorized expenditure of state funds for the purpose of developing and constructing an industrial site and building for lease to private individuals to stimulate job opportunities and reduce unemployment; and, third, that stimulation of job opportunities and reduction of unemployment by this method is a constitutionally permissible means by which to accomplish this objective.

The Kalispel Indian Community is a federally recognized Indian tribe and chartered as a body politic incorporate under the Indian Reorganization Act of 1934, 25 U.S.C. § 477 (1970). In 1970, out of a labor force of 56 in the reservation community, 40 members of the tribe were unem[66]*66ployed and only 16 employed. Twelve of the employed were working on a part-time basis, three on a seasonal basis and one employed full time.

Of the total proposed sum of $300,064 to be disbursed by the authority, $100,064 is a loan and $200,000 is an outright grant. Expenditures within the sum approved by the authority were:

Site preparation ...................... $ 16,100
Water................................ 23,400
Sewer................................ 25,800
Building.............................. 202,940
10 percent contingency and inspection fee 31,824
Total $300,064

The project will involve construction of an industrial building where space will be leased to manufacturing firms. One firm is committed to lease space and the tribe is prepared to negotiate with the second firm. There will be room for expansion and lease to others. Eighteen permanent job positions will be created initially to expand to an eventual 30 permanent positions.

The first issue is whether the Kalispel tribe is a proper recipient of state funds under the Economic Assistance Act of 1972 and the state constitution. RCW 43.31A.070 explicitly provides that: “The authority is authorized to make direct grants and/or loans to political subdivisions of the state and Indian tribes recognized as such by the federal government . . .” The Washington State Constitution does not dictate otherwise.

Article 8, section 5 of the state constitution provides that: “The credit of the state shall not, in any manner be given or loaned to, or in aid of, any individual, association, company or corporation.” In Rands v. Clarke County, 79 Wash. 152, 157, 139 P. 1090 (1914), we recognized that this constitutional prohibition is not applicable to corporations or entities whose functions are wholly public:

Plainly . . . the framers had in mind individuals, associations, companies and corporations engaged in [67]*67purely private enterprises, or enterprises only quasi public, not to enterprises carried on by the corporations whose functions are wholly public, such as the Federal or state government, or some branch thereof.

Indian tribes are unique entities which do not fit into neat pigeonholes of the law. Their sovereign characteristics are well recognized. State v. Bertrand, 61 Wn.2d 333, 339, 378 P.2d 427 (1963). The federal government recognizes the right of a tribe to organize for its common welfare. 25 U.S.C. § 476 (1970). These attributes of sovereignty qualify the tribe as an entity with wholly public functions. The selection of the Kalispel tribe as a recipient for assistance in the form of state funds is not prohibited by article 8, section 5.

The second question is whether the items approved by the Economic Assistance Authority for the proposed Kalispel industrial park are authorized under the Economic Assistance Act of 1972. The problem is one of statutory construction. The primary objective of statutory construction is to carry out the intent of the legislature. Amburn v. Daly, 81 Wn.2d 241, 501 P.2d 178 (1972). Where the manifest object of a statute can be ascertained and the statute is susceptible of two constructions, that construction should be given which will carry out the intent of the legislature. Miller v. Paul Revere Life Ins. Co., 81 Wn.2d 302, 501 P.2d 1063 (1972).

The statement of purpose in the act is the primary insight into the intent of the legislature in this case. It states the act’s purpose is to foster economic development by two means — the stimulation of investment and job opportunity. In addition to fostering economic development by these means, the legislature also declared reduction of unemployment to be of major concern to the economic welfare of this state. RCW 43.31A.010.1 One of the means authorized [68]*68by the legislature to accomplish these purposes is to make direct grants or loans to government agencies to assist them in financing the cost of “public facilities.” RCW 43.31A.070. The act next requires that public facilities grants and/or loans be used for projects which “will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.” (RCW 43.31A.080: Projects for which grants or loans may be used — Priority.)

RCW 43.31A.070

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Bluebook (online)
524 P.2d 390, 84 Wash. 2d 64, 1974 Wash. LEXIS 713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-obrien-wash-1974.