State Ex Rel. Wash. Toll Bridge Auth. v. Yelle

342 P.2d 588, 54 Wash. 2d 545, 1959 Wash. LEXIS 432
CourtWashington Supreme Court
DecidedJuly 31, 1959
Docket35170
StatusPublished
Cited by40 cases

This text of 342 P.2d 588 (State Ex Rel. Wash. Toll Bridge Auth. v. Yelle) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Wash. Toll Bridge Auth. v. Yelle, 342 P.2d 588, 54 Wash. 2d 545, 1959 Wash. LEXIS 432 (Wash. 1959).

Opinions

Hill, J.

The plaintiff, Washington Toll Bridge Authority, seeks a writ of mandate from this court, directing the State Auditor to sign certain revenue bonds to be issued pursuant to Washington Toll Bridge Authority Resolution No. 338 to finance the construction of a toll bridge to cross Lake Washington from a site in the vicinity of Union Bay, [547]*547on the west side, to Evergreen Point, on the east side of the lake.

By Laws of 1957, chapter 266, p. 1037, the legislature authorized the toll bridge authority to issue its revenue bonds to provide funds for the construction of an additional Lake Washington bridge. Section 2 of the act contains the following covenant with the bondholders':

“Said revenue bonds shall constitute obligations only of the Washington toll bridge authority and shall be payable both principal and interest solely from the tolls and revenues .derived from the operation of said toll facility as hereinbefore constituted. Said bonds shall not constitute an indebtedness of the state of Washington, and shall contain a recital on the face thereof to that effect, and shall be negotiable instruments under the law merchant. Such bonds shall include a covenant that the payment or redemption thereof and the interest thereon are secured by a first and direct charge and lien on all of the tolls and other revenues received from the operation of said toll facility and from any interest which may be earned from the deposit or investment of any such revenues, except for payment of costs of operation, maintenance and necessary repairs of said facility. The tolls and charges to be imposed shall be fixed in such amounts so that when collected they will produce revenues that shall be at least equal to expenses of operating, maintaining and repairing said toll facility, including all insurance costs, amounts for adequate reserves and coverage of annual debt service on said bonds, and all payments necessary to pay the principal thereof and interest thereon.” ■

The bonds are to be paid solely from the tolls and revenues derived from the operation of the bridge. However, the State Highway Commission is authorized by Laws of 1959, Ex. Ses., chapter 11, p. 1700 (hereafter referred to as the 1959 Supplemental Appropriations Act), to pledge not to exceed seven hundred fifty thousand dollars each year out of the proceeds of the excise taxes imposed on motor vehicle fuels to guarantee the payment of principal and interest of the bonds, should the' tolls collected in any year be insufficient for that purpose. Tolls may be continued on the bridge until the Motor Vehicle Fund is reimbursed for any payments it may have made on the [548]*548principal- and .-interest, on the bonds in consequence of this guarantee. This pledge is referred to in the bonds, and they are niade a lien not only on “all of the tolls and other revenues received from the operation of said bridge,” but

“. . . upon the proceeds of excise taxes imposed1 on motor vehicle fuels . . . pledged pursuant to Chapter 11 of the 1959.Extraordinary Session Laws- of the State of Washington in an amount not to exceed $750,000.00 per year, ...”

It is this authorization of the State Highway Commission to pledge a portion of the proceeds of excise taxes imposed on motor vehicle fuels for-payment of the bridge bonds, if its revenues from tolls are insufficient for that purpose, which the State Auditor has challenged as unconstitutional, and which, together with certain claimed defects in the resolution authorizing the bond issue, forms the basis for his refusal to sign the bonds.

The 1959 Supplemental Appropriations Act is some seventeen pages in length, but contains only two sections, one of which is a one-sentence declaration of emergency. It contains many specific appropriations for many purposes. For subsequent reference we set out the title and all of the act pertinent to this proceeding:

“An Act Adopting the supplemental budget and making appropriations for miscellaneous purposes, and declaring an emergency.
“Be It Enacted by the Legislature o-f the State of Washington:
“Section 1. The following sums, or so much thereof as shall severally be found necessary, are hereby appropriated out of the several funds indicated, for the fiscal biennium beginning July 1, 1959 and ending June 30, 1961, except as otherwise provided.
“State Highway Commission
“(1) Motor Vehicle Fund Appropriation for the following purposes: 100,000.00
“The state highway commission may, at the request of the toll bridge authority, pledge such sum to guarantee the payment of principal and interest on bonds issued by the authority in connection with construction of a second Lake Washington toll bridge, at a site to be determined [549]*549by the toll bridge authority, or any subsequent refunding bond issues or for sinking, fund requirements or reserves established by the authority with respect thereto. To the extent of any such pledge the state highway commission shall use such moneys to meet such obligations as they arise but only to the extent that revenues of the project are insufficient therefor.
“(2) The state highway commission at the request of the toll bridge authority is further authorized to pledge the proceeds of excise taxes imposed on motor vehicle fuels now directed by law to be deposited in the motor vehicle fund available for state highway commission purposes in an amount not to exceed seven hundred fifty thousand dollars per year for the purposes set forth in subparagraph (1) above.
“ (3) Whenever the state highway commission shall have made a pledge of motor vehicle funds as authorized in subparagraphs (1) and (2) above, the legislature agrees to continue to impose excise taxes on motor vehicle fuels in amounts sufficient to provide the state highway commission with funds necessary to enable it to comply with such pledge and to make necessary appropriations to the state highway commission for such purposes.
“(4) Any money from the motor vehicle fund used by the state highway commission for payment of principal or interest on any bond issue of the toll bridge authority to finance a second Lake Washington toll bridge shall be repaid to the motor vehicle fund to be used for state highway purposes, from revenues of such project and tolls may be continued for any required additional length of time necessary for this purpose.”

It should be noted that subparagraph (1) is an appropriation of one hundred thousand dollars from the Motor Vehicle Fund. The Motor Vehicle Fund includes:

“All fees collected by the State of Washington as license fees for motor vehicles and all excise taxes collected by the State of Washington on the sale, distribution or use of motor vehicle fuel and all other state revenue intended to be used for highway purposes, . . . ” Art. II, § 40, Washington state constitution (amendment 18).

The seven hundred and fifty thousand dollars per year, referred to in subparagraph (2), is from a specifically designated portion of the Motor Vehicle Fund, i.e., “pro[550]

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Bluebook (online)
342 P.2d 588, 54 Wash. 2d 545, 1959 Wash. LEXIS 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-wash-toll-bridge-auth-v-yelle-wash-1959.