Oregon Business & Tax Research, Inc. v. Farrell

159 P.2d 822, 176 Or. 532, 1945 Ore. LEXIS 135
CourtOregon Supreme Court
DecidedJune 6, 1945
StatusPublished
Cited by3 cases

This text of 159 P.2d 822 (Oregon Business & Tax Research, Inc. v. Farrell) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oregon Business & Tax Research, Inc. v. Farrell, 159 P.2d 822, 176 Or. 532, 1945 Ore. LEXIS 135 (Or. 1945).

Opinion

BAILEY, J.

This suit was instituted by Oregon Business & Tax Research, Inc., an Oregon corporation, against Robert S. Farrell Jr., as secretary of state of Oregon, to have declared invalid chapter 460, Oregon Laws 1945, relating to the preparation of local budgets, and to enjoin the secretary of state from publishing or causing to be published that chapter as a part of the general session laws for the year 1945. From a decree dismissing the suit plaintiff appealed.

Plaintiff contends that the act before us, known as house bill No. 403 throughout its legislative history, was never passed by the legislature. In support of this contention plaintiff asserts that although the house journal affirmatively shows that the house had refused to concur in the senate amendments to house bill No. 403, nevertheless the enrolled bill filed in the office of the secretary of state erroneously contains such senate amendments and fails to include the amendments of the conference committee which had been adopted and incorporated in the bill as repassed by both houses.

Chapter 460 purports to amend §§ 110-1202, 110-1204, and 110-1206, O. C. L. A., and § 110-1207, O. C. L. A., as amended by chapter 393, Oregon Laws 1943. Section 3 of house bill No. 403, as introduced, amends 110-1206, O. C. L. A., by providing that in preparing *534 the budget there may be “subtracted” from the estimated “probable unappropriated or unexpended balance in money which shall remain in each fund, department or office on the last day of the current year, * * * a reserve of available cash which, in an amount not exceeding 25 per cent of the total estimated expenditures of the municipal corporation for the ensuing fiscal year, may be reserved in cash reserve accounts shown in the budget for the purpose of maintaining the municipal corporation on a cash operating basis.”

The house journal shows that on March 1, 1945, bpuse bill No. 403 was introduced and read for the first time; that on March 2nd, the bill was read the second time and referred to the committee on taxation and revenue; and that on the same day the committee reported the bill back to the house with the recommendation that it do pass with certain proposed amendments. One of these amendments, to which particular attention has been directed in this case and the only one to which we shall refer, was the change from 25 per cent to 10 per cent in the amount of available cash reserve permitted a municipal corporation. This report of the committee was adopted, and on March 5th the bill was read the third time and passed.

It appears from entries in the senate journal that the bill was read the first time in the senate on March 6th and that on the following day it was read the second time and referred to the committee on municipal affairs. On the 14th of March the committee recommended that the bill do pass with suggested amendments, one of which was a change from the 10 per cent in the bill as passed by the house to 15 per cent in the amount of available cash reserve permitted a munici *535 pal corporation. The report of the committee was adopted and the bill was read the third time and passed in the senate on March 15th.

The house refused to concur in the senate amendments, and on the 16th of March two representatives and two senators were appointed as conferees. On March 17th the conference committee reported to the house and senate, recommending that the bill “do pass with the following further amendments”, one of these amendments being the substitution of the 10 per cent, which the bill contained at the time it originally passed the house, for the 15 per cent contained in the senate’s amendment to the bill. The house adopted the report of the conference committee and then repassed the bill on March 17th. The action of the house was transmitted to the senate which “thereupon adopted the conference committee report” and repassed the bill “as amended and recommended by the conference committee. ’ ’

No further reference to house bill No. 403 is contained in the journal of either house. The legislature adjourned on March 17th, 1945. Enrolled house bill No. 403, now on file in the office of the secretary of state, which was signed by the speaker of the house and president of the senate and approved by the governor, does not contain the amendments proposed by the conference committee. On the other hand, it contains the senate amendments in which the house refused to concur.

The question here presented is whether the validity of an enrolled act in the custody of the secretary of state, authenticated by the signatures of the presiding officers of the respective houses and approved by the *536 governor, can be impeached by the journals of the legislature or by other evidence.

In McKinnon v. Cotner, 30 Or. 588, 49 P. 956, it is pointed out that there is a great conflict in the authorities on the matter under consideration. Some jurisdictions have adopted the rule that unless the legislative journals affirmatively show conformity to the requirements of the constitution in the passage of the bill through its several stages it is not a law. In other jurisdictions the rule is that an enrolled act, signed by the proper officers and filed in the office of the secretary of state, is deemed regularly enacted and cannot be impeached by reference to the legislative journals. In still other jurisdictions it is the rule “that the mere silence of the journals as to matters not required by the constitution to be entered therein will not invalidate a law, but it will be presumed in such case that the enrolled act as filed in the office of the secretary of state, if signed by the presiding officers of the two houses, was regularly passed, but if the journals affirmatively show that in fact it did not pass, the courts will refuse to recognize it as a valid law.”

The second rule, above-mentioned, has been referred to frequently as the enrolled bill rule, and the last one, above-mentioned, as the journal entry rule. Boyd v. Olcott, 102 Or. 327, 202 P. 431. This court has approved and followed the journal entry rule. Ibid. p. 349.

That rule was enunciated for the first time by this court in Currie v. Southern Pacific Co., 21 Or. 566, 28 P. 884. The act there involved was signed by the officers of the respective houses, approved by the governor, and filed with the secretary of state. It was known as house bill No. 5. That bill passed the house *537 by the requisite majority and went to the senate “where it passed through all the requisite forms until it was put upon its final passage, when it received 13 ayes and 11 nays. There were five absent and one senator was excused. ‘So the bill failed to pass.’ (Senate Journal, 527).” After citing the foregoing facts, the court said: “It thus appears from the vote recorded in the journal by the recital therein that house bill No. 5 did not receive the requisite vote upon its final passage, and therefore never became law.” In laying down the rule, which has since been followed in this state, the court observed:

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Bluebook (online)
159 P.2d 822, 176 Or. 532, 1945 Ore. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oregon-business-tax-research-inc-v-farrell-or-1945.