Application of Bd. of Regents, Etc.

1979 OK 76, 595 P.2d 785, 1979 Okla. LEXIS 278
CourtSupreme Court of Oklahoma
DecidedMay 25, 1979
DocketNo. 53586
StatusPublished
Cited by1 cases

This text of 1979 OK 76 (Application of Bd. of Regents, Etc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Application of Bd. of Regents, Etc., 1979 OK 76, 595 P.2d 785, 1979 Okla. LEXIS 278 (Okla. 1979).

Opinion

SIMMS, Justice:

The Board of Regents of the University of Oklahoma seek to invoke original jurisdiction of this Court and have us judicially validate a Utility System Revenue Bond Issue, Series 1979, in the amount of $7,060,-000.

Proceeds from sale of the 1979 Series Bonds is to complete Phase V of the steam and chilled water plant servicing the Health Sciences Center located in Oklahoma City, Oklahoma. Phase V consists of expansion and improvement of the system.

Our present Attorney General objects to this Court entertaining the instant validation suit for three reasons: First, the 1979 Series Bond Issue has not had prior approval of the Attorney General; Second, certain of the buildings within the Health Sciences Center complex are private rather than related to the University of Oklahoma; and, Third, because the plant supplies certain amounts of heat and chilled water to privately operated medically oriented institutions, the Board of Regents are subject to the regulatory authority of the Corporation Commission regarding the rates charged by the Board of Regents to those not part of the University of Oklahoma Medical School.

Issuance of self-liquidating revenue obligations to finance construction of public utility plants or systems and extensions thereof for the supplying of water and heat to colleges, universities or “related institutions” is authorized by 70 O.S.Supp.1973, § 4001, and 70 O.S.1971, § 4002. Section 4014 of Title 70 mandates that the Board of Regents of the University prepare a Statement of Essential Facts for the use and information of prospective purchasers of Higher Education self-liquidating revenue bonds. The Regents for Higher Education must examine the Statement and determine if projected revenues will satisfy the obligation to be incurred by sale of the bonds “then the Oklahoma State Regents for Higher Education shall certify such to the Attorney General before the proposed bond issue can be approved by the Attorney General.” (E.A.)

Additionally, 70 O.S.1971, § 4008, provides all Higher Education Revenue Bonds “shall” be submitted to the Attorney General for examination and if certified by the Attorney General as legal obligations shall be incontestable in any court in Oklahoma unless suit be brought within thirty days from date of approval by the Attorney General. Sec. 4008 further requires the bonds to have on the backs thereof the certificate required by Sec. 29, of Article X of the Constitution of Oklahoma. Art. X, § 29, in pertinent part, reads: “No bond or evidence of indebtedness by [the] State shall be valid unless the same shall have endorsed thereon a certificate, signed by the Auditor and Attorney General of the State, showing that the bond or evidence of [indebtedness] is issued pursuant to law and is within the debt limit.” (E.A.)

Clear reading of the cited statutory provisions tells us that both proposed Higher Education Revenue Bond Issues, as well as the bonds themselves, must be approved by the Attorney General to become valid and binding obligations.

Board of Regents urges that under the provisions of 70 O.S.1971, § 4011, the Board may first bring an original action in this Court without receiving bond issue approval or disapproval of the Attorney General. Regents cite Application of Board of Regents, Oklahoma Agricultural and Mechanical Colleges for “Utility System Revenue Bonds, Series 1948”, 201 Okl. 54, 200 P.2d 901 (1948); Application of Board of Regents of University of Oklahoma, 200 Okl. 442, 195 P.2d 936 (1948); and, Application of Board of Regents of University of Oklahoma, Okl., 427 P.2d 429 (1966), in support of their legal proposition that this Court may [787]*787validate the bonds without approval of the Attorney General. The cases cited by Regents were all promulgated prior to the enactment of § 4014, which became law in 1970, and which requires the certifying of proposed bond issues to the Attorney General for his approval. Put another way, the cases relied upon by the Board of Regents as authorizing a validation suit without the bond issue having prior approval have been superseded by 1970 legislative enactment.

This Court is without authority to judicially decree that the bonds “had been properly authorized” in accordance with the provisions of Title 70, § 4001, et seq., until they have been affirmatively approved or disapproved by the Attorney General.

We therefore decline to validate the bonds at this time.

However, a controversy requiring judicial intervention exists between the Regents and the Attorney General aside from the Regents attempt to circumvent the Attorney General’s approval of the issuance of the bonds.

The 1979 Series Revenue Bonds have been advertised for bid, bids have been opened, and the bonds sold and are to be delivered to the purchaser within 75 days from the date of sale, all without approval of the Attorney General. Marketability of the bonds remain questionable. In this regard, it is to be noted that Phase III and IV Bonds, proceeds from the sale of which were used to finance projects not unlike those to be financed by the 1979 Series, were approved by a prior Attorney General, and no suit was brought in this Court to validate the bonds.

The legal questions arising between the Board of Regents and the Attorney General are publici juris in nature for it is essential to the health and welfare of the citizens of Oklahoma that we have a viable Health Sciences Center capable of expanding in an orderly fashion to meet increasing demands.

We therefore turn our attention to the issue of whether or not certain of the privately occupied buildings located in the Health Sciences Center and served by the Oklahoma University Medical Center utility system are “related” institutions within the contemplation of § 4001(a). This statute authorized the Board to issue revenue bonds to extend utility plants and improvements to fill the need of educational institutions or “related institutions”.

Our statutes do not specifically define the term “related institutions” as used in the revenue bond provisions of the Higher Education Code. However, Senate Concurrent Resolution # 24, adopted in April, 1979, is specifically directed toward defining legislative intent embodied in the phrase “related institutions”. The Resolution, in pertinent part, reads:

“SECTION 1. The term ‘related institutions’ for the purpose of the supplying of water, gas, heat or power to related institutions by Boards of Regents of State Educational Institutions, as used in § 4001 of Title 70 of the Oklahoma Statutes shall mean any entity, public, nonprofit or private, to whom the supplying of water, gas, heat or power is determined by said Boards to be related to and compatible with the enhancement of the comfort, convenience and welfare of their students.” (E.A.)

SCR # 24 neither seeks to amend or expand the provisions of the statute but is only an expression of legislative intent in using the phrase “related institutions” contained in the statute. While the concurrent resolution is not legally binding upon this Court, we do find the Resolution persuasive in construing the meaning of the words “related institutions” as used in the statutes. The definition of “related institutions” articulated in the Concurrent Resolution is reinforced in law because the Health Sciences Center is defined by area in 70 O.S.Supp.1974, § 3306.14, as being:

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Related

State Ex Rel. Cartwright v. Oklahoma Ordnance Works Authority
1980 OK 94 (Supreme Court of Oklahoma, 1980)

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Bluebook (online)
1979 OK 76, 595 P.2d 785, 1979 Okla. LEXIS 278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/application-of-bd-of-regents-etc-okla-1979.