Brewery Arts Center v. State Board of Examiners

843 P.2d 369, 108 Nev. 1050, 1992 Nev. LEXIS 196
CourtNevada Supreme Court
DecidedDecember 11, 1992
Docket23321
StatusPublished
Cited by13 cases

This text of 843 P.2d 369 (Brewery Arts Center v. State Board of Examiners) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brewery Arts Center v. State Board of Examiners, 843 P.2d 369, 108 Nev. 1050, 1992 Nev. LEXIS 196 (Neb. 1992).

Opinions

[1051]*1051OPINION

Per Curiam:

The 1991 Nevada Legislature created the Commission for Cultural Affairs (the Commission) and required it, within one year of its formation, to establish a ten-year plan to preserve and promote Nevada’s cultural resources and to develop a network of cultural centers and activities. The Legislature directed the respondent, the State Board of Examiners (the Board), to issue general obligation bonds to fund the projects identified in the ten-year plan. Pursuant to the provisions of Assembly Bill No. 590 (A.B. 590),1 for the first year of the ten-year plan, the Commis[1052]*1052sion awarded $2,000,000 in grants to fifteen local governments and non-profit organizations. The purpose of the grants was to renovate and restore historical sites in Nevada.2

On May 14, 1992, bond counsel for the State declined to render an unqualified approving opinion on the issuance of these bonds. Bond counsel withheld approval because of the language of A.B. 590 § 5(5), which stated that the bonds are exempt from the constitutional debt limit because the bonds are “necessary for the protection and preservation of the cultural resources of this state and for the purpose of obtaining the benefits thereof.” (Emphasis added.) The second paragraph of Article 9, § 3 in the Nevada Constitution3 does not expressly exempt “cultural [1053]*1053resources” from the debt limitation. Bonds that are not exempt from the State’s debt limit are counted against the debt limit and negatively impact the ability of the State to borrow money for other projects. The unqualified approving opinion of bond counsel is necessary before the bonds are issued, for without such an opinion, the bonds are not marketable. Bond counsel recommended either obtaining a judicial decision that severed subsection 5 from A.B. 590 § 5, or having the 1993 Legislature amend the bill.

On June 18, 1992, the Board voted unanimously to accept the recommendation of Judy Matteucci (Matteucci), the State of Nevada Budget Director and the Clerk of the Board, to defer the issuance of the bonds until this court interprets, or the Legislature clarifies, the language of subsection 5 concerning the exemption of the bonds from the constitutional debt limitation. Matteucci’s recommendation was based on the “questionable constitutionality” of A.B. 590 and on the need to review all of the remaining bond authorizations.

Petitioners argue that the Board has a non-discretionary legal duty to issue the general obligation bonds to fund the grants. Also, petitioners argue that they have no plain, speedy, and adequate remedy at law, and they request that this court issue a peremptory writ of mandamus commanding the Board to issue the bonds. In the alternative, petitioners request that this court issue a peremptory writ of mandamus compelling the Board to issue general obligation bonds, “either exempt or nonexempt from the constitutional debt limitation,” for $2,000,000. Petitioners argue that, if action is not taken soon, some of the historic sites that A.B. 590 is intended to preserve may be lost.

A writ of mandamus is available to compel the performance of an act which the law requires as a duty resulting from an office, trust, or station, or to control an arbitrary or capricious exercise of discretion. See NRS 34.160; Round Hill Gen. Imp. Dist. v. Newman, 97 Nev. 601, 637 P.2d 534 (1981). Mandamus is not available where the petitioner has a plain, speedy, and adequate remedy in the ordinary course of the law. NRS 34.170; NRS 34.330. Mandamus is an extraordinary remedy, and the decision as to whether a petition will be entertained lies within the sound discretion of this court. See Poulos v. District Court, 98 Nev. 453, 455, 652 P.2d 1177, 1178 (1982).

However, a writ of mandamus will not be “granted in anticipation of a supposed omission of duty, however strong the presumption may be that the persons whom it is sought to coerce by the [1054]*1054writ will refuse to perform their duty when the proper time arrives.” State v. Public Service Com., 44 Nev. 102, 112, 190 P. 284, 286-87 (1920). “It is incumbent on the relator to show, not only that the respondent has failed to perform the required duty, but that the performance thereof is actually due from him at the time of the application.” State of Nevada v. Gracey, 11 Nev. 223, 233 (1876).

The petition for the writ of mandamus alleges that the Board voted “to defer the issuance of the bonds required by A.B. 590.” However, the Board has not failed or refused to act, and it has only voted to delay the issuance of the bonds. Because the Legislature did not designate a precise time in A.B. 590 for the issuance of the bonds, we infer that “reasonable time” and “reasonable diligence” were intended. Fuller v. Knight, 2 So.2d 605, 609 (Ala. 1941); Bremerton Municipal League v. City of Bremerton, 124 P.2d 798, 800 (Wash. 1942). “No rule can be laid down as to within what time bonds must be issued after they have been voted for or their issuance directed . . . .” Fuller, 2 So.2d at 610. See Chickaming v. Carpenter, 106 U.S. 663 (1882) (even where statute provides that bonds shall be issued within certain number of days after election authorizing the issuance, valid bonds may be issued after time specified). Courts have found it is not unreasonable to have delays of five and nine years following the authorization to issue bonds. Perl-Mack Civil Ass’n v. Board of Directors, Etc., 344 P.2d 685 (Colo. 1959) (en banc) (five years); Missouri Electric Power Co. v. Smith, 155 S.W.2d 113 (Mo. 1941) (nine years). In Petition of City of St. Louis, 363 S.W.2d 612 (Mo. 1963) (en banc), the court held that a delay of eighteen years did not bar issuance of previously unissued bonds. Based on these cases, we conclude the Board’s delay, which has been less than two years, is within a reasonable time.

NRS 349.071(1) provides in part: “The state board of examiners may issue and redeem securities on behalf of the state, when such issue is authorized by law.” (Emphasis added.) In S.N.E.A. v. Daines, 108 Nev. 15, 824 P.2d 276 (1992), this court stated: “[I]n statutes, ‘may’ is permissive and ‘shall’ is mandatory unless the statute demands a different construction to carry out the clear intent of the legislature.” Id. at 19, 824 P.2d at 278.

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Brewery Arts Center v. State Board of Examiners
843 P.2d 369 (Nevada Supreme Court, 1992)

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Bluebook (online)
843 P.2d 369, 108 Nev. 1050, 1992 Nev. LEXIS 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brewery-arts-center-v-state-board-of-examiners-nev-1992.