Arrow Club, Inc. v. Nebraska Liquor Control Commission

131 N.W.2d 134, 177 Neb. 686, 1964 Neb. LEXIS 139
CourtNebraska Supreme Court
DecidedOctober 30, 1964
Docket35803
StatusPublished
Cited by34 cases

This text of 131 N.W.2d 134 (Arrow Club, Inc. v. Nebraska Liquor Control Commission) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrow Club, Inc. v. Nebraska Liquor Control Commission, 131 N.W.2d 134, 177 Neb. 686, 1964 Neb. LEXIS 139 (Neb. 1964).

Opinion

Boslaugh, J.

The plaintiffs, Arrow Club, Inc., Anthony M. Alesio, and Eugene L. Cottier, brought this, action to declare Legislative Bill 23 enacted by the Seventy-fourth (Extraordinary) Session of the Legislature of Nebraska, 1963, and ordinances Nos. 8261 and 8262 of the City of Lincoln, Nebraska, void and to enjoin their enforcement. The defendants are the Nebraska Liquor Control Commission, its members and secretary, the City of Lincoln, Nebraska, and its mayor.

The trial court found that sections 1, 2, and 4 of L. B. 23 and ordinances Nos. 8261 and 8262, as they relate to bottle clubs, were void and enjoined the defendants from enforcing them against the plaintiff's. The motions for new trial filed by the defendants were overruled and they have appealed.

The background for this litigation is found in legislation enacted by the Seventy-third Session of the Legislature of Nebraska. In 1963 the Liquor Control Act was amended to provide for the licensing of bottle clubs and nonprofit corporations by the Nebraska Liquor Control Commission. Laws 1963, c. 310, p. 918. That act defined a nonprofit corporation as a corporation organized under the laws of this state, not for profit, which had been exempted from the payment of federal income taxes, as provided by section 501 (c) (7) and (8), In *688 temal Revenue Code of 1954. On October 14, 1963, the Governor of Nebraska issued a proclamation calling the Legislature to convene in extraordinary session for the purpose of considering legislation" relating to certain subjects, one of which was as follows:

“6. To amend subdivision (21) of section 53-103, Revised Statutes Supplement, 1961, as amended by section 1, Legislative Bill 21, Seventy-third Session, Nebraska State Legislature, 1963, by including those nonprofit corporations which have been exempted from the payment of federal income taxes, as provided by section 501 (c) (4), Internal Revenue Code of 1954, within the definition of a nonprofit corporation, thus redefining'nonprofit corporations eligible for licensing for the sale of 'alcoholic liquors for consumption on the 'premises to include the above described corporations.” '

• At the special session, the definition of a nonprofit corporation as contained in the Liquor Control Act was amended to include corporations exempt from the payment of federal income taxes as provided by section 501 (c) (4), (7), or (8), Internal Revenue Code of 1954. Laws 1963, Spec. Sess., c. 4, p. 66. By a separate bill, L. B. 23, certain provisions of the Liquor Control Act relating to bottle clubs were amended. Laws 1963, Spec. Sess., c. 5, p. 71. The trial court held that sections 1, 2, and 4 of L. B. 23 were void because they did not relate to a subject included in the proclamation which called the Legislature to convene in special session and, therefore, were in violation of Article IV, section 8, of the Constitution of Nebraska. This is the first question that is presented by this appeal.

Article IV, section 8, of the Constitution of Nebraska, provides as1 follows: “The Governor may, on extraordinary occasions!, convene the legislature by proclamation, stating therein the purpose for which they are convened, and the legislature shall enter upon no business except that for which they were called together.” Sinai *689 lar provisions are found' in the constitutions of many-other states.

It is well established that the Legislature while in special session can transact no business except that for which it was called together. Chicago, B. & Q. R.R. Co. v. Wolfe, 61 Neb. 502, 86 N. W. 441. The proclamation may state the purpose for which the Legislature is convened in broad, general terms or it may limit the consideration to a specified phase of a general subject. The Legislature is free to determine in what manner the purpose shall be accomplished, but it must confine itself to the matters submitted to it by the proclamation.

In Commonwealth ex rel. Schnader v. Liveright, 308 Pa. 35, 161 A. 697, in construing a similar provision in the Constitution of Pennsylvania, the court said: “This constitutional provision contemplates that there shall first exist in the executive mind a definite conception of the public emergency which demands an extraordinary session. His mental attitude or intention is expressed in his proclamation, the purpose of which is to inform the members of the legislature of subjects for legislation,' and to advise the public generally that objections may be presented if desired. It is not only a guide or chart with respect to which the legislature may act, but also a check restricting its actions so that rights may not be affected without notice. The proclamation may contain many or few subjects according to- the governor’s conception of the public need. While the subjects may be stated broadly or in general terms, the special business, as related to the general subject on which legislation is desired, should be designated by imposing qualifying matter to reduce or restrict. Although the subjects should be sufficient to evoke intelligent and responsive action from the legislature, it is not necessary that they include all the methods of accomplishment. The guiding principle in sustaining legislation of a special session is that it be germane to, or within; the apparent scope of the subjects which have been desig *690 nated. as proper fields for legislation. In construing a call the words of any portion thereof must be interpreted not only as commonly and universally understood, but also as. applicable to the subject intended to be affected by legislation.

“While the legislature must confine itself to the matters submitted, it need not follow the views of the governor or legislate in any particular way. Within the special business or designated subjects submitted, the legislature cannot be restricted or dictated to by the governor. It is a free agent, and the governor, under the guise of definition, cannot direct or control its action.”

The Legislature while in special session may enact legislation relating to, germane to, and having a natural connection with the purpose for which it was convened. Blackford v. Judith Basin County, 109 Mont. 578, 98 P. 2d 872, 126 A. L. R. 639. The purpose or subject as stated in the proclamation is to be determined by an analysis and construction of the proclamation as in the case of any written instrument. State ex rel. Nat. Conservation Exposition Co. v. Woollen, 128 Tenn. 456, 161 S. W. 1006, Ann. Cas. 1915C 465. The presumption is always in favor of the constitutionality of legislation, and an act should be held to be within the call if it can be done by any reasonable construction.

The legislation in question in this case, L. B. 23, relates to the regulation and operation of bottle clubs. It was enacted by the Legislature while convened in special session to consider amendments to the Liquor Control Act relating to the licensing of nonprofit corporations. Thus, the question is whether the regulation and operation of bottle clubs relates to, is germane to, or has a natural connection with the definition of nonprofit corporations. The question is to. be determined by the consideration and analysis of the provisions of the Liquor Control Act.

There is a fundamental difference between a nonprofit *691

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Bluebook (online)
131 N.W.2d 134, 177 Neb. 686, 1964 Neb. LEXIS 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrow-club-inc-v-nebraska-liquor-control-commission-neb-1964.