Reed v. Alabama Public School & College Authority

224 So. 2d 381, 284 Ala. 22, 1969 Ala. LEXIS 1012
CourtSupreme Court of Alabama
DecidedApril 4, 1969
Docket3 Div. 412
StatusPublished
Cited by5 cases

This text of 224 So. 2d 381 (Reed v. Alabama Public School & College Authority) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. Alabama Public School & College Authority, 224 So. 2d 381, 284 Ala. 22, 1969 Ala. LEXIS 1012 (Ala. 1969).

Opinion

This appeal is from a decree validating the issuance of bonds under • a legislative act,-a part of which is-admittedly unconstitutional.- ' - - - - -

Appellant taxpayers sought a declaratory judgment of the invalidity of Act No. 403, Acts of Alabama 1967, Vol. II, p. 1016, vyhich provides for the sale of bonds in the amount of $5,000,000, for the purpose of •constructing and equipping a four-year college or branch of Auburn University in the City of Montgomery. They also sought to •enjoin the sale of the bonds authorized by Act No. 403.

The Alabama Public School and College Authority, which was originally created by Act No. 243, Acts of Alabama 1965, First Special Session, p. 331, is authorized by Act No. 403 to issue and sell the bonds in question in this proceeding and was a respondent in this case below. Albert Brew- ■ er, Ernest Stone, Robert B. Ingram and Agnes Baggett constitute the membership ■ of the Authority and were also respondents 'in the proceeding below and appellees here.

The bill of complaint attacks Act No. 403 in its entirety solely on the ground that -part of Section 2 of said Act — the part which provides “for the support and maintenance of suGh college for each of the fis•cal years ending September 30,--1-968 and September 30, 1969” — contravenes: Article 11, Section 213 .of the Constitution of Ala'.bama..of 1901. Section 2 reads:-. .... .

“The proceeds of all bonds issued and sold by the authority under this Act remaining after paying expenses- of their issuance shall be deposited in the state treasury, and shall be carried in the-state treasury in a special or separate account. The net proceeds derived from sale of the bonds shall be distributed to Auburn University to be used by the board of trustees thereof for construction and equipment of physical facilities for conducting a four-year college or branch of the University in the City of Montgóm'ery and for the support and maintenance' of such college for each■ of 'the fiscal-years ending September 3ÓJ 1968" and' September 30, 1969.” (Emphasis supplied.)

Appellees answered admitting' appellant’s standing to bring this. action,, admitted the invalidity of that par! of Act No. 403 which provides “for the support' and maintenance of such college 'for each of the fiscal years ending Sept.embér'.30, 1968 and September 30, 1969,” 'but. asserted that this provision was “severable” under Section 4 of said Act and,'accordingly, did not affect the validity of other parts of said Act. Appellees also took the position that said controversy was moot in view of the facts that (1) the bonds in question had already been sold and' (2) since construction of the branch prp-' vided for in said Act would not commence until the calendar year 1970, it would be impossible to spend money either in the' fiscal year ending September 30, 1968 or the fiscal year ending September 30, 1969, as provided for in said Act. Appellees further joined with the appellants in requesting a declaratory judgment on the. question of the validity of said Act.

This case was then submitted to the. trial court upon the oral testimony of Dr. H. H. Funderburk, Vice President of the Montgomery . branch of Auburn University;. certain exhibits offered by respondents .in support of his testimony; and the Minutes of ’the meeting of -the’Authority’s Board--of Directors, held on March 4,-¡1969) [24]*24at which the Authority sold the bonds and expressly resolved that the proceeds therefrom should be used solely for the construction of the Auburn branch which was contemplated by Act No. 403.

On March 17, 1969, the trial court entered a declaratory judgment, the “findings of facts” and the decree as follows:

“FINDINGS OF FACTS

“1. The Complainants are all over the age of 20 years; are residents of Montgomery County, Alabama; own property in the State of Alabama that is subject to taxation by the State; and are taxpayers.
“2. The Respondent, Albert Brewer, is Governor of the State of Alabama and President of the Alabama Public School and College Authority, (hereinafter referred to as The ‘Authority’); the Respondent, Ernest Stone, is State Superintendent of Education and Vice President of the Authority; the Respondent, Robert B. Ingram, is Director of Finance and Secretary of the Authority; and the Respondent, Agnes Baggett, is State Treasurer and Treasurer of the Authority. Each of these Respondents is over the age of 21 years and each of them maintains his official residence in Montgomery County, Alabama. Each of the Respondents is a member of the Board of Directors of said Authority and, in their official capacities aforesaid, were named parties Respondent to this proceeding.
“3. Act No. 243 adopted at the First Special Session of the Legislature of Alabama in 1965 (hereinafter ‘Act No. 243’), created the Alabama Public School and College Authority, which is also made a Respondent hereto, and authorized it to sell bonds solely for the purpose of raising money for the construction of school buildings and school physical facilities located throughout the State of Alabama.
“4: Act No. 403 adopted at the 1967 Regular Session of the Legislature of Alabama (hereinafter ‘Act No. 403’), the validity of which is brought into question by this proceeding, authorizes the Authority to sell bonds in the amount of $5,000,-000.00 for the following purposes: ‘for construction and equipment of physical facilities for conducting a four year college or branch of (Auburn) University in the City of Montgomery (hereinafter the ‘Branch’), and for the support and maintenance of such college for each of the fiscal years ending September 30, 1968, and September 30, 1969.’
“5. The Branch contemplated by Act No. 403 has not been constructed and commencement of construction on said facility will not commence until sometime in the calendar year 1970. Auburn University will not commence the teaching of students at the Branch, proposed to be constructed by said Act No. 403, until sometime in the calendar year 1971.
“6. Since construction of the Branch will not commence until sometime in the calendar year 1970, it would be impossible to spend money, either in the fiscal year ending on September 30, 1968 or the fiscal year ending on September 30, 1969, for the support and maintenance of the Branch contemplated by Act No. 403.
“7. Dr. Harry M. Philpott, President of Auburn University, has made a decision that funds from the sale of the bonds, authorized by Act No. 403, will not be spent for the support and maintenance of the Branch and that the money from said bonds shall be spent solely for the construction and equipping of physical facilities at the Branch contemplated by Act No. 403, and Dr. Philpott’s decision was communicated to the Authority before it authorized the sale of the bonds contemplated by Act No. 403.
“8. Auburn University has not done any interim financing whereby it has pledged any part of the proceeds to' be derived from said bonds to secure funds for the support and maintenance of the Branch.
[25]*25“9. Ill the resolution authorizing the issuance of the bonds contemplated by Act No.

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Bluebook (online)
224 So. 2d 381, 284 Ala. 22, 1969 Ala. LEXIS 1012, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-alabama-public-school-college-authority-ala-1969.