Title: Hall v. Underwood

State: alabama

Issuer: Alabama Supreme Court

Document:

63 So. 2d 683 (1953)
HALL et al.
v.
UNDERWOOD, Judge of Probate et al.
8 Div. 644.

Supreme Court of Alabama.
February 26, 1953.
*685 J. Foy Guin and Jas. L. Orman, Russellville, for appellant.
Si Garrett, Atty. Gen., Robt. Straub, Asst. Atty. Gen., and Rankin Fite, Hamilton of counsel, for appellees.
White, Bradley, Arant, All & Rose, Birmingham, for appellee Birmingham Trust Nat. Bank.
LIVINGSTON, Chief Justice.
This is an appeal from a decree of the Circuit Court, in Equity, of Franklin County, Alabama. The proceedings were begun by Archie B. Hall, a resident and taxpayer of Franklin County; James Hovater, E. A. Reid, Ed Mitchell and Joe Peden, as members of the county governing body of Franklin County, Alabama, and in their individual capacity; and Franklin County, Alabama, a body corporate. The bill, as amended, makes Edgar Underwood, as Judge of Probate, and Edgar Underwood, as Chairman of the County Governing Body of Franklin County, the Citizens Bank and Savings Company of Russellville, Alabama, an Alabama Corporation, and as depository of Franklin County, Alabama, in lieu of a county treasury; the First National Bank of Russellville, Alabama, a National Banking Association; the Vina Banking Corporation, an Alabama Corporation; the Bank of Red Bay, an Alabama Corporation; the Birmingham Trust National Bank, a National Banking Association; W. G. Pruett, as Director of the Alabama Highway Department; and Si Garrett, as Attorney General of the State of Alabama, respondents. The bill as last amended was filed for the purpose of testing the constitutional validity of two local acts of the Legislature of Alabama of 1951, and the several sections or provisions thereof. The demurrers of the Birmingham Trust National Bank were sustained to the bill on the theory that as to it, the bill as amended failed to state a justiciable controversy between the complainants and said bank. The other banking institutions filed answers, which in effect admitted the allegations of the bill of complaint.
The two local acts here involved are known as the Todd Act and the Oden Act. The Todd Act appears on page 378 of the Special and Regular Sessions of the Legislature of Alabama of 1951, and the Oden Act appears on page 1288 of the same Acts.
The trial court sustained the validity of both acts with certain exceptions which we will note later, but we may say here that no appeal was taken from the rulings of the trial court declaring certain sections of the acts involved unconstitutional.
The trial court rendered a decree declaring the meaning and effect of the several sections, or provisions, of both acts. It is from this decree that the complainants in the court below prosecuted this appeal.
The Oden Act, in general effect, simply abolishes the court of county revenues of Franklin County, and establishes in lieu thereof a Board of Revenue of Franklin County; provides for who shall be members of said board, and as to how they are to be elected. This act also provides that the board of revenue shall have the same powers and jurisdiction, and shall perform the same duties which are now or may hereafter be conferred or imposed upon *686 boards of revenue, courts of county commissioners, or other like governing bodies, by the general law of the State of Alabama; provided, however, that said board shall have no control, management, or supervision of the county roads and bridges of said county, and shall not have supervision over any road and bridge funds, and that the road and bridge fund monies shall be handled under the provisions of the Todd Act.
The Todd Act, in general effect, transfers from the governing body of Franklin County to the State Highway Department, with certain exceptions, the general powers and jurisdiction of the local governing body of Franklin County in respect to roads, bridges, and ferries, together with certain monies, equipment, etc., to be used in that regard.
All annual revenues which accrue to the benefit of Franklin County are held in three funds, or at least pass through one of such three funds before final allocation for expenditures are made.
First. The Franklin County General Fund. This fund accrues from general sources and is available for general expenses. The motor vehicle license tax, which is here involved, goes into the general fund of Franklin County. The general state law which earmarks a portion of the motor vehicle license tax for distribution to the county does not further earmark any portion of such part as is received by the counties for any particular purpose.
Second. The gasoline tax fund, which has always been held and treated as a road building and road repair fund.
The third major county fund is that derived from Section 215 of the Constitution of 1901, from the county levy of one-fourth of one per centum per annum "for the erection of necessary public buildings, bridges, or roads". By express constitutional requirement, this fund "shall be applied exclusively to the purposes for which the same were so levied and collected."
The argument is made, first, that to uphold the two local acts now in question is to, in effect, destroy Franklin County as a legal entity; that to take away from the local governing authorities all of the power and jurisdiction over roads, bridges and ferries, and transfer the same to a state agency, the State Highway Department, is tantamount to the abolition of Franklin County. The argument recognizes our line of cases justifying the legislative reconstruction of county governments, but insists that such reconstruction should be within the framework of local self-government, and that the Legislature is not authorized to transfer matters of purely local concern to state agencies located outside the county. In our opinion, this argument is fully answered by our cases. In the case of Yeilding v. State ex rel. Wilkinson, 232 Ala. 292, 167 So. 580, 583, the late Mr. Justice Knight quoted with approval Judge Dillon in his treatise on Municipal Corporations, 5th Edition, Section 98, page 154, as follows:
Justice Knight said further:
In the case of Johnson v. Robinson, 238 Ala. 568, 192 So. 412, 416, this Court said:
It was said in the case of Atkin v. Kansas, 191 U.S. 207, 24 S. Ct. 124, 127, 48 L. Ed. 148, in speaking of political subdivisions and their powers over highways:
See also Robbins v. Limestone County, 114 Tex. 345, 268 S.W. 915.
From the foregoing authorities, it seems clear to us that the Legislature has not transgressed its powers in enacting the two laws involved, unless inhibited by specific constitutional provisions. In other words, the Constitution does not prohibit, either expressly or impliedly, the Legislature transferring matters of a local character, and ordinarily handled by local agencies, to a state agency, simply because such matters are local in nature.
Before discussing specific constitutional objections to the two acts involved, it may be well to here note some rules of construction laid down in our cases when acts of the Legislature are assailed on constitutional grounds. The rule is that except where the Constitution has imposed limits upon the legislative power, it must be considered as practically absolute, whether it operates according to natural justice or not in the particular case, Johnson v. Robinson, supra; and that in determining the validity of an enactment, the judiciary will not inquire into the motives or reasons of the Legislature or the members thereof. The Judicial Department cannot control legislative discretion. Morgan County v. Edmonson, 238 Ala. 522, 192 So. 274. Further, a statute will be sustained as not violative of constitutional limitations on legislative powers, if with the aid of all reasonable intendments, it can be given effect without violation of the letter and spirit of the Constitution. Byrd v. State ex rel. Colquett, 212 Ala. 266, 102 So. 223. In the case of McCall v. Automatic Voting Machine Corporation, 236 Ala. 10, 180 So. 695, 697, it was said:
We agree that the two local acts now in question are to be construed in pari materia. It is strenuously argued that the Todd Act violates Sections 104(15) and 105 of the Constitution of Alabama of 1901. Said Section 105 provides:
Section 104(15) provides that the Legislature shall not pass a special, private, or local law regulating either the assessment or collection of taxes, except in connection with the readjustment, renewal, or extension of existing municipal indebtedness created prior to the ratification of the Constitution of 1875.
In the case of Polytinsky v. Wilhite, 211 Ala. 94, 99 So. 843, 844, the court observed:
The foregoing was quoted with approval in the case of Morgan County v. Edmonson, supra. Edmonson's case is also clear authority for the proposition that Section 105 does not withdraw legislative discretion to prescribe or change the governing agencies of counties by local legislation suited to the various needs of counties of widely different conditions as to population, wealth and local requirements. It was there said [238 Ala. 522, 192 So. 275]:
We also quote the following from the case of Walker County v. Barnett, 247 Ala. 418, 24 So. 2d 665, 667:
In the light of the foregoing authorities, we are of the opinion, and hold, that the Todd Act does not violate Section 105 of the Constitution.
We have carefully examined the case of State ex rel. Norwood v. Goldsmith, Treasurer, 162 Ala. 171, 50 So. 394, and McWhorter v. Lowndes County, 167 Ala. 370, 52 So. 750. They are clearly distinguishable from the instant case.
Section 4 of the Todd Act makes it the duty of "the governing body of Franklin County and all officials of the county" to pay over to the State Highway Department "all funds collected or received as taxes * * * designated or to be used for the purpose of constructing, maintaining or repairing county roads or bridges." Section 215 of the Constitution of 1901 provides, inter alia, as follows:
It is argued by complainants that Section 215 of the Constitution means that only the county and not the State has control of the funds raised by the county by taxation, and that the Highway Department is claiming the motor vehicle license tax and the 2½ mill ad valorem tax (a county tax), and to allow the State to control these funds would be violative of Sections 104(15) and 105 of the Constitution.
It is our conclusion that from a fair and reasonable construction of the Todd Act in its entirety, these two funds could be used for roads and bridges only if, and when, the county governing body has first designated money from these funds to be used for road and bridge purposes, and that, therefore, the Highway Department is not entitled to receive these two funds from the county, or any money from said funds, until the county governing body has designated money from these funds to be used for road and bridge purposes. That construction was placed on the Todd Act by the trial *691 court, and with which we are in accord. So viewed, we are to the conclusion that the Todd Act does not violate Section 104(15).
Appellants also insist that the Todd Act violates Section 45 of the Constitution because:
In the case of Johnson v. Robinson, supra [238 Ala. 568, 192 So. 414], this Court stated:
The Todd Act title provides that the State Highway Department shall construct the roads and bridges for Franklin County, and it provides for the transfer by the county and its officials to the State Highway Department of all funds, including Franklin County's proportionate share of the State Gasoline Tax and all equipment, supplies, etc., for the construction of county roads and bridges. Regarding argument (a) above, the title itself clearly states that these particular funds are to be transferred. True, the Todd Act does provide that "the appropriate State official is authorized to pay over to it (the Highway Department), any funds or amounts to which Franklin County shall be entitled to from the proceeds of the State gasoline tax". Section 7. But we are clear to the conclusion that this provision is germane or cognate to the general subject of the act.
In regard to (b) and (c) above, the title states that certain funds, equipment, and duties are to be transferred to the State Highway Department. Certainly the provisions of the act providing for the payment of specific obligations directly connected therewith are allied to the subject expressed in the title and are germane or cognate to it. This is exemplified in the following quotation from the case of Alabama Great So. R. R. Co. v. Reed, 124 Ala. 253, 27 So. 19, 21:
We conclude that the Todd Act does not violate Section 45 of the Constitution.
It is next insisted by appellants that the Todd Act impairs the obligation of existing contracts in violation of Sections 95 and 22 of the Alabama Constitution of 1901, and Article I, Section 10, of the United States Constitution, and is, therefore, unconstitutional, null and void.
As we understand the record, there are only two classes of county obligations here involved. First, gasoline tax warrants, held by some of the appellees; and, second, general obligation county bonds, held by other appellees. The general obligation county bonds are refunding road and bridge bonds, which have the full faith and credit of Franklin County pledged to their payment.
Construing the Todd Act from its four corners, we think it clear enough that it was the intent of the Legislature that the county governing body turn over to the State Highway Department only those funds designated or to be used for county road and bridge purposes. We think it further clearly appears that the motor vehicle license tax was not intended to be so used unless and until the county governing body so designated it; this, for the reason that the motor vehicle license tax is general fund money, which automatically by law goes into the general fund of the county. Title 51, Section 713 of the 1940 Code, as last amended in 1951, and the county governing body by Section 2(a) of the Todd Act is authorized to appropriate money in the same manner and to the same extent as it may presently do so by law.
Since by law the state gasoline excise tax is earmarked to be used only for road and bridge purposes, the manner of handling that fund is clear from the act itself.
The 2½ mill ad valorem tax, a county tax, levied under Section 215 of the Constitution for public buildings, roads and bridges, is a general fund tax, and the county authorities still have the right to designate to which of the three uses it shall be put. Therefore, under the Todd Act, this fund does not have to be transferred to the State Highway Department unless and until it is designated by the county governing authorities to be used for road and bridge purposes.
The pertinent provision of the Todd Act is that the:
And that:
As to the gasoline tax warrants, these warrants are to be paid from certain designated funds; namely, the gasoline excise tax. The holders of these warrants will still look to the same funds for payment, and their payment can be enforced regardless of who has charge of the funds. In re Opinion of the Justices, 252 Ala. 465, 41 So. 2d 761.
It was said in Isbell v. Shelby County, 235 Ala. 571, 180 So. 567, 569:
We think it clear enough that the Todd Act in no way whatever impairs the obligation of any contract as to these gasoline tax warrants.
As to the refunding bonds, above mentioned, Section 6 of the Todd Act provides, in effect, that the State Highway Department shall pay all of such outstanding bonds which were issued prior to the adoption of the Todd Act for the construction, maintenance and repair of roads and bridges out of the fund to be paid over to the Highway Department under the provisions of the act, and, further, that nothing in the Todd Act shall be construed to relieve Franklin County of the responsibility of paying said outstanding bonds in the event the funds paid over to the Highway Department are insufficient for that purpose.
It might be argued that under the Todd Act Franklin County is relieved from liability of any of its present or hereafter incurred obligations to the extent of the funds paid over by the county to the Highway Department; but we think a more reasonable construction is that it was the intention of the Legislature to place a definite responsibility on the Highway Department to pay the present specific outstanding obligations of Franklin County and those hereafter incurred under the provisions of Section 2(b), as they become due, from the funds received by the Highway Department from the county before any of said funds can be expended for any other purpose. Moreover, the Todd Act specifically provides that nothing contained in this act, however, shall be construed to relieve Franklin County of the liabilities for paying any of its financial obligations now existing or hereafter incurred under the provisions of Section 2(b) hereof in the event funds paid over to the Highway Department are insufficient to do so. We find nothing in the Todd Act which relieves Franklin County from any financial obligation in which the full faith and credit of said county is pledged.
In our opinion, the State Highway Department is charged with the responsibility of constructing, maintaining and repairing county roads and bridges of Franklin County from the funds paid over to it *694 pursuant to the Todd Act. The phrase "from the funds paid over to it pursuant to Section 4 of this Act" is a definite limitation upon the State Highway Department, and the State Highway Department cannot financially obligate Franklin County beyond the amount of the funds received by it under the act, after the Highway Department has first paid the obligations that it is required to pay as they become due; and the State Highway Department can expend from the Franklin County funds only such money as remains in said funds after the payment of said obligations for the purpose of constructing, maintaining, and repairing Franklin County roads. In short, we think it clear from a reading of the entire Todd Act that it was the intention of the Legislature that certain funds are to be paid by or on behalf of Franklin County to the State Highway Department, and that from all such funds, the State Highway Department is to first pay all obligations specified by the Todd Act as they become due, after which the State Highway Department is to construct, maintain and repair roads and bridges of Franklin County, but cannot obligate Franklin County beyond the extent of said funds remaining in their possession. We do not construe the Todd Act to mean, as argued by appellants, that Franklin County shall be liable for the payment of these outstanding bonds, only "in the event the funds paid over to the State Highway Department are insufficient for that purpose." In fact, Section 6 of the Todd Act provides specifically to the contrary. In part, said Section 6 reads:
As we view it, Franklin County's liability continues in any event. We hold, therefore, that the Todd Act does not impair the obligations of any Franklin County contract here involved.
It is insisted that the Oden Act violates Section 104(29), which provides that the Legislature shall not pass a local law providing for the conduct of elections. The argument is without merit. The Oden Act does not purport to make provisions "for the `conduct of elections'". Dunn v. Dean, 196 Ala. 486, 71 So. 709, 714; State ex rel. Brown v. Slaughter, 196 Ala. 428, 71 So. 416; In re Opinion of the Justices, 253 Ala. 111, 43 So. 2d 3.
It is also argued that the Oden Act violates Section 281 of the Constitution in that it reduces the compensation of the Probate Judge of Franklin County during his term of office. This argument was met and fully refuted in the case of Morgan County v. Edmonson, supra, and we see no need to further elaborate on that proposition.
The point is also made in the bill as amended, that the Oden Act is offensive to that part of Section 190 of the Constitution which provides that all election laws shall be uniform throughout the State. In the case of Ex parte Owens, 148 Ala. 402, 42 So. 676, 677, 8 L.R.A.,N.S., 888, this Court said:
From the foregoing, it seems clear that the Oden Act is not offensive to that part of Section 190 of the Constitution mentioned above.
The Oden Act provides, inter alia, that:
The trial court by its decree struck down that part of the Oden Act quoted last above, for the reason that it attempts to make primary elections compulsory and is violative of Section 190 of the Constitution, which provides that the Legislature "shall not make primary elections compulsory." Appellees did not assign cross errors and that portion of the lower court's decree is not before us for review.
It is our opinion, and we hold, that the striking down of this provision of the Oden Act does not render the entire act unconstitutional in view of the severability clause in the Oden Act. The rule is that if the invalid section may be stricken from the act, leaving a statute complete within itself, sensible and capable of being executed, the striking of the invalid section does not overthrow the entire act. Dunn v. Dean, supra.
This cause was submitted in the court below and to this Court on appeal prior to November 4, 1952. We judicially know that on November 4, 1952, by a vote of the people and proclamation of the Governor, the Constitution of Alabama of 1901 was amended, so as to affect the motor vehicle license tax involved in this opinion. Therefore, what we have said with reference to the motor vehicle license tax applies to the status as it existed prior to the adoption of the amendment. See Special and Regular Sessions of the Legislature of 1951, page 1305.
We think that we have fully treated all of the questions raised and argued on this appeal. We find no error to reverse in the decree of the court below, and the same stands affirmed.
Affirmed.
LAWSON, STAKELY and MERRILL, JJ., concur.