In re the Oklahoma Turnpike Authority

2016 OK 124, 389 P.3d 318, 2016 Okla. LEXIS 125, 2016 WL 7212488
CourtSupreme Court of Oklahoma
DecidedDecember 13, 2016
DocketCase Number: 115345
StatusPublished
Cited by20 cases

This text of 2016 OK 124 (In re the Oklahoma Turnpike Authority) 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
In re the Oklahoma Turnpike Authority, 2016 OK 124, 389 P.3d 318, 2016 Okla. LEXIS 125, 2016 WL 7212488 (Okla. 2016).

Opinion

WINCHESTER, J.

¶ 1 The Oldahoma Turnpike Authority (the “Authority”), pursuant to 69 O.S.2011, 1718, applies to this Court for approval of an issuance of bonds captioned “Oklahoma Turnpike Authority Oklahoma Turnpike System Second Senior Lien Revenue Bonds, Series 2016” (the “Series 2016 bonds”) in an amount not to exceed $480,000,000. The Authority has requested the funds in order to: (1) finance a portion of the capital costs of certain turnpike projects and improvements known as the “Driving Forward Projects,” (2) refund the outstanding principal amount of the Authority’s Oldahoma Turnpike System Refunding Second Senior Lien Revenue Bonds, Series 2007A dated June 6, 2007, issued in the original principal amount of $45,680,000 (the “Refunding”); (3) satisfy the Reserve Account requirements; and (4) pay [319]*319the costs related to the issuance of the Bonds.

¶ 2 This Court is vested with exclusive, statutory original jurisdiction to hear and determine applications for bond approval from the Authority. 69 O.S.2011, 1718.1 The Authority provided the requisite notice of its application and Jerry R. Fent (the “Protestant”), filed his objection to the application and was given an opportunity to be heard.2 We assumed original jurisdiction to resolve the matter.

BACKGROUND

¶ 3 The Authority has issued bonds for the operation and construction' of the state’s turnpike projects since 1950. This Court has previously approved bonds requested by the Authority on ten separate occasions, having never disallowed a bond issuance in each of those cases.3

¶4 In 1987, the Legislature authorized three new projects (the “1987 Projects”) to include construction of the OKC Outer Loop, South Tulsa Bypass, and a new turnpike between State Highway 33 and U.S. 69, codified at 69 Q.S. 1706 (e)(20)-(22). The Legislature also approved the statute in question, 69 O.S.2011, 1705 (f), which provides that the Authority is empowered to issue turnpike revenue bonds, payable solely from revenues, for the “purpose of paying all or any part of the cost of any one or more turnpike projects.” The statute further provides that “any bonds issued for the construction of the proposed turnpike referred to in subparagraphs [320]*320(10), (20), (21) and (22) of paragraph (e) of this section shall be issued as one issue for all four of the proposed turnpikes and shall be financed, constructed and operated under one bond indenture.”4 69 O.S.2011, 1705 (f).

¶ 5 In 1989, the Authority sought validation of its bonds to construct' the 1987 Projects and to refund prior bonds (the “1989 Bonds”). Under this application, the'Authority sought to consolidate all previously constructed projects under one master Trust Agreement to operate as one turnpike system. The Court approved the bonds in In re Application of Oklahoma Turnpike Authority, 1989 OK 21, ¶ 22, 770 P.2d 16.

¶ 6 On October 29, 2015, the “Driving Forward” initiative was announced by Governor Mary Fallin, According to the Authority, the initiative consists of six major projects to provide for “safe travel, relieving congestion to shorten commutes, and sustaining economic development for years to come.” The Authority states that two of the Driving Forward projects relate to additional construction of the OKC Outer Loop, which was validated by the Court in 1989. In re Application of Oklahoma Turnpike Authority, 1989 OK 21, ¶ 22, 770 P.2d 16. As a result of this initiative, the Authority submitted the current application for approval of the bonds.

DISCUSSION

¶ 7 The Protestant raises the issue of the constitutionality of the financing plan to fund the turnpike projects in question. The Protestant maintains that the statute in question, 69 O.S.2011, 1705 (£), provides funding for four separate turnpikes under one bond issue and that this constitutes logrolling in violation of Okla, Const., Ait, 5, 57. The Protestant further argues that the Authority’s refunding statute, 60 O.S.2011, 1719, is unconstitutional as the debts created by the statute exceed twenty-one years in violation of Okla. Const., Art. 2, 32.

A. LOGROLLING

¶ 8 The Protestant urges that because there are four turnpike construction projects being “financed, constructed and operated with one bond indenture” that this constitutes logrolling in violation of the Oklahoma Constitution’s single subject rule, Okla. Const., Art. 5, 57,5 The Protestant contends that the smaller turnpikes need the larger turnpikes to pay them off through refunding and that this equates to logrolling.

¶ 9 The Protestant cites Fent v. State ex rel. Oklahoma Capitol Improvement Authority, 2009 OK 15, 214 P.3d 799 for support of his claim of logrolling. In Fent, the Court found the challenged bill unconstitutional because it tied financing for three separate and unrelated projects to one bond. In addressing the bond’s validity, the Court stated that the single subject rule should be interpreted using a “germaneness” test. Fent, supra, at ¶ 16. If the “provisions are germane, relative, and cognate to a readily apparent common [321]*321theme and purpose, the provisions” will not be found to violate the single subject rule. Id.

¶ 10 We find the instant matter distinguishable as the projects to be funded are not unrelated and, in fact, all concern the construction or maintenance of turnpikes. Each turnpike’s stated purpose is to “facilitate vehicular traffic throughout the State.” 69 O.S.2011, 1701. Further, funding multiple projects under one bond issue is not new. The Legislature has specifically authorized the Authority to consolidate projects for funding:

The Authority may provide by resolution, at one time or from time to time, for the issuance of turnpike revenue bonds of the Authority for the purpose of paying all or any part of the cost of any one or more turnpike projects. The Authority, when it finds that it would be economical and beneficial to do so, may combine two or more, or any part thereof, or all of its proposed projects into one unit and consider the same as one project to the same extent and with like effect as if the same were a single project.

69 O.S.2011,1709(A).

¶ 11 In Application of Oklahoma Turnpike Authority, 1966 OK 139, 416 P.2d 860, the Authority sought to approve construction projects for multiple turnpikes and a refunding of certain bonds under one single bond. The Court concluded that the Authority may combine and operate the named turnpikes in question as a single project. Application of Oklahoma Turnpike Authority, 1966 OK 139, ¶ 81, 416 P.2d 860. Likewise, in Application of Oklahoma Turnpike Authority, 1961 OK 15, 359 P.2d 680, the Court approved the combining of the Southwestern (H.E. Bailey) Turnpike Project and Eastern Turnpike Project for financing purposes into one unit under a single sinking fund for all the bonds.

¶ 12 Here, the Authority has the express legislative authority to issue bonds for turnpike projects. 69 O.S.2011,1701. The Authority is also authorized to combine multiple projects for purposing of issuing bonds. 69 O.S.2011, 1709(A). Because the requested bonds all relate to the construction and/or improvement of turnpikes, we find the Au-thorites application does not violate the single subject rule.

B.

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Bluebook (online)
2016 OK 124, 389 P.3d 318, 2016 Okla. LEXIS 125, 2016 WL 7212488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-oklahoma-turnpike-authority-okla-2016.