Oregon Telecommunications Ass'n v. Oregon Department of Transportation

144 P.3d 935, 341 Or. 418, 2006 Ore. LEXIS 930
Oregon Supreme Court·Decided October 5, 2006·No. CC CCV0208620; SC S50709·Published·Cited by 4 cases

Opinion

DURHAM, J.

The issue in this case is whether Article IX, section 3a, of the Oregon Constitution, which we quote below, authorizes the Oregon Department of Transportation (ODOT) to use state highway funds to pay administrative expenses that ODOT incurs in requiring the relocation of utility facilities within a public highway right-of-way.1

Plaintiffs Colton Telephone Company, Canby Telephone Association, and Cascade Utilities, Inc. (plaintiff utilities) are Oregon corporations that provide telecommunications services in part through utility facilities installed, with the permission of ODOT, in the rights-of-way of roads and highways over which ODOT has supervision. They are members of a trade association, plaintiff Oregon Telecommunications Association (OTA), that represents local exchange telecommunication companies serving customers in Oregon.

ODOT began several projects to improve certain roads that it supervises. In connection with those projects, ODOT required plaintiff utilities to relocate their utility facilities located in the rights-of-way of the affected roads.

When ODOT requires the relocation of utility facilities, it incurs expenses in conducting planning activities concerning the relocation process. To recover those expenses, ODOT established by rule a schedule of fees that it charged to plaintiff utilities. Pursuant to that rule, OAR 734-055-0017, ODOT charged plaintiff utilities the following fees:

Canby Telephone Association - $10,000

Cascade Utilities, Inc. - $ 4,000

Colton Telephone Company - $ 6,000

[422] Plaintiffs filed this action to challenge the authority of ODOT to charge those fees to the plaintiff utilities.2 They argued that the Oregon Constitution authorized ODOT to use highway funds to recover its expenses incurred in requiring the relocation of utility facilities. In response, ODOT argued that it had no authority to use state highway funds for that purpose and that state law authorized ODOT to recover its expenses from plaintiff utilities pursuant to administrative rules. The trial court rejected ODOT’s argument and granted summary judgment for plaintiffs. ODOT appeals from that judgment. For the reasons explained below, we affirm.

This court has exclusive jurisdiction over ODOT’s appeal. See Or Laws 2001, ch 664, § 4 (so stating).3 Because the trial court resolved this case by summary judgment, we may affirm only if no genuine issues of material fact exist and the prevailing party is entitled to a judgment in that party’s favor as a matter of law. See Jones v. General Motors Corp., 325 Or 404, 420, 939 P2d 608 (1997) (stating those standards). Because no party asserts any dispute over the material facts, we review the record to determine whether the circuit court committed an error of law.

The focus of this case is Article IX, section 3a, of the Oregon Constitution, which dedicates highway funds exclusively to certain uses related to public highways, roads, streets, and roadside rest areas. That section of the constitution provides, in part:

“(1) Except as provided in subsection (2) of this section, revenue from the following shall be used exclusively for the construction, reconstruction, improvement, repair, maintenance, operation and use of public highways, roads, streets and roadside rest areas in this state:
[423] “(a) Any tax levied on, with respect to, or measured by the storage, withdrawal, use, sale, distribution, importation or receipt of motor vehicle fuel or any other product used for the propulsion of motor vehicles; and
“(b) Any tax or excise levied on the ownership, operation or use of motor vehicles.
“(2) Revenues described in subsection (1) of this section:
“(a) May also be used for the cost of administration and any refunds or credits authorized by law.”

Before addressing the meaning of that constitutional provision, we first discuss several statutes that pertain to the constitutional issue that this case presents. ORS 758.010(1) grants to plaintiff utilities a “right and privilege” to place utility facilities along the public roads in Oregon or across rivers or lands owned by the state. That statute provides, in part:

“Except within cities, any person or corporation has a right and privilege to construct, maintain and operate its water, gas, electric or communication service lines, fixtures, and other facilities along the public roads in this state, as defined in ORS 368.001[4] or across rivers or over any lands belonging to the state, free of any charge other than charges allowed under section 2, chapter 664, Oregon Laws 2001 [discussed below] * * *.”

ODOT supervises Oregon’s state highways. ORS 366.205. The legislature has authorized ODOT under ORS 758.010(2)

“to designate the location upon [state highways], outside of cities, where lines, fixtures and facilities described in this section may be located, and may order the location of any such line, fixture or facility to be changed when such governing body or department deems it expedient.”

[424] ORS 758.010(3) also authorizes ODOT to

“impose reasonable requirements for the location, construction, operation and maintenance of the lines, fixtures and facilities on such land [under the supervision of ODOT].”

Utilities must obtain written permission from ODOT to place their facilities in the right-of-way of a state highway.5 ORS 374.305(1). ORS 374.310(1) authorizes ODOT to issue permits to utilities for their use of the right-of-way of a state highway.

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Oregon Telecommunications Ass'n v. Oregon Department of Transportation, 144 P.3d 935, 341 Or. 418, 2006 Ore. LEXIS 930 (Or. 2006).

144 P.3d 935 (Oregon Telecommunications Ass'n v. Oregon Department of Transportation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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