Case Name: In the Matter of APPLICATION OF OKLAHOMA TURNPIKE AUTHORITY for a Determination of the Validity of the Trust Fund and the Earmarking of Revenues Thereto, the Validity of a Pledge Thereof By the Authority As Provided In Enrolled House Bill No. 932 of the 1959 Session of the Oklahoma Legislature and for a Determination As To the Constitutionality and Validity of Said Act And The Provisions Thereof
Court: Oklahoma Supreme Court
Jurisdiction: Oklahoma
Decision Date: 1960-01-08
Citations: 348 P.2d 510
Docket Number: No. 38845
Parties: In the Matter of APPLICATION OF OKLAHOMA TURNPIKE AUTHORITY for a Determination of the Validity of the Trust Fund and the Earmarking of Revenues Thereto, the Validity of a Pledge Thereof By the Authority As Provided In Enrolled House Bill No. 932 of the 1959 Session of the Oklahoma Legislature and for a Determination As To the Constitutionality and Validity of Said Act And The Provisions Thereof.
Judges: DAVISON, C. J., and HALLEY, JOHNSON and JACKSON, JJ., concur.
Reporter: Pacific Reporter 2d
Volume: 348
Pages: 510–534

Head Matter:
In the Matter of APPLICATION OF OKLAHOMA TURNPIKE AUTHORITY for a Determination of the Validity of the Trust Fund and the Earmarking of Revenues Thereto, the Validity of a Pledge Thereof By the Authority As Provided In Enrolled House Bill No. 932 of the 1959 Session of the Oklahoma Legislature and for a Determination As To the Constitutionality and Validity of Said Act And The Provisions Thereof.
No. 38845.
Supreme Court of Oklahoma.
Jan. 8, 1960.
Norman E. Reynolds, Oklahoma City, Robert L. Wheeler, Tulsa, Leon Shipp, Looney, Watts, Looney & Nichols, Oklahoma City, for the Turnpike Authority.
Leroy Powers, Oklahoma City, Hardin Ballard, Purcell, for protestant.

Opinion:
WELCH, Justice.
The Oklahoma Turnpike Act of 1959, enrolled House Bill 932, of the 1959 Legislature, became effective on the 16th day of July, 1959.
It was provided in the second paragraph of section 5 of the Act, 69 O.S. Supp. § 668, that:
"Immediately upon the passage and approval of this Act, the Oklahoma Turnpike Authority shall file an application with the Supreme Court, under the procedure set out above, for a determination of the validity of such Trust Fund and the earmarking of revenues thereto, the validity of a pledge thereof by the Authority as provided in this Act, and any other questions as to the constitutionality or validity of this Act that may be brought before the Supreme Court, and exclusive, original jurisdiction is hereby conferred upon the Supreme Court to hear and determine such application. »
The "procedure set out above" relates • to the giving and publishing of notice, advising of the unrestricted right of protest, fixing the time allowed therefor and naming the hearing date. This detail was set out in the first paragraph of section 5 and need not be copied herein.
The Legislature had authority to confer this additional jurisdiction on the Supreme Court by reason of the provisions of the Constitution of Oklahoma, Article 7, Section 2, which generally states the original jurisdiction of the Supreme Court and provides that the Supreme Court may exercise such other and further jurisdiction as may be conferred upon it by law.
Pursuant to the above quoted provision, the applicant, Authority, filed this application for the determinations stated. Due notice was given. Protest was filed by Perry J. Baker and hearing was had at which both Authority and protestant appeared and participated by counsel.
This 1959 Act generally followed Turnpike legislation which has been passed upon and construed by this court in several cases: Application of the Oklahoma Turnpike Authority for the Approval of Bonds, 1950, 203 Old. 335, 221 P.2d 795; Appli cation of Oklahoma Turnpike Authority for Approval of Bonds, 1952, 206 Old. 617, 246 P.2d 327, and Application of Oklahoma Turnpike Authority for Approval of Bonds, Old.1954, 277 P.2d 176.
Many of the questions which might ordinarily arise as to the construction and maintenance and financing of turnpike construction have been answered in these former decisions, and under those decisions turnpikes have been constructed and in operation for a number of years. However, this 1959 Act contains some other or new provisions as to financing, construction and operation of turnpikes. While this 1959 Act is based upon the same general plan and purpose to finance and build additional turnpikes, the new or additional details of plan present specific questions to be here determined.
Upon the application of Authority, and the contentions of protestants, the several questions here presented for consideration and determination are numbered and treated consecutively for convenience and to meet the method of presentation. First Question:
"May the Legislature apportion that portion of the tax collected from motor fuel consumed on the several Turnpikes in the State of Oklahoma to a Trust Fund to be used as a guarantee for the payment of interest upon Turnpike Bonds hereafter issued for the construction of additional Turnpikes as authorized by the Legislature or a vote of the people ?"
In former Turnpike legislation all money collected as tolls for travel upon the Turnpike was placed in a general Turnpike Trust Fund to be used to pay for construction and maintenance of the Turnpike. This 1959 Act would create a separate segregated trust fund to be created by and contributed to by allocation of a stated portion of the motor fuel tax collected on motor fuel consumed on all Oklahoma Turnpike Projects, with limitation on the aggregate amount of such allocations, and with contingent provisions for the use of this fund by Authority, and with provisions for repayment to this fund of any money so withdrawn therefrom by Authority.
That is accomplished by sections 1, 3 and 4 of the 1959 Act. Section 1 of the Act, 69 O.S.Supp.1959 § 680, is here quoted in full:
"(a) Beginning with the first apportionment of motor fuel taxes made after the passage and approval of this Act, and until all turnpike revenue bonds hereafter issued by the Oklahoma Turnpike Authority and the interest thereon shall have been paid, or a sufficient amount for the payment of all such bonds and the interest thereon shall have been set aside in trust for such purpose, the Oklahoma Tax Commission shall each month determine an amount equal to the motor fuel excise taxes computed on ninety-seven and one-half per cent (97⅛4%) of the total gallonage of all fuels consumed, during the calendar month in which the tax being apportioned accrued, on all Oklahoma Turnpike Projects and apportion a sum equal to said amount from all gasoline tax collections as follows:
"Ninety-seven per cent (97%) of such amount to the Oklahoma Turnpike Authority and three per cent (3%) to the Oklahoma Tax Commission Fund, after which apportionment all other apportionments of motor fuel excise taxes shall be made according to existing or subsequently enacted apportionment laws. Provided that ap-portionments herein required to be made to the Oklahoma Turnpike Authority shall not in any fiscal year exceed One Million Dollars ($1,000,000.-00), and shall be deducted exclusively from those funds which would otherwise be apportioned to the State Highway Department or Commission for expenditure on State Plighways, without affecting the amounts presently apportioned to the various cities and towns, counties, or for county roads.
"(b) If at the time of each monthly apportionment required herein there shall be a balance in the Trust Fund created by this Act equal to three (3) years annual interest on all Turnpike bonds on all turnpikes hereafter financed, or prior to the issuance of any such bonds there shall be a balance in the Trust Fund created by this Act in excess of Four Million Dollars ($4,000,000.00), the Oklahoma Tax Commission shall in said month make no apportionment to the Oklahoma Turnpike Authority of motor fuel taxes but shall apportion the same according to previously existing or subsequently enacted apportionment laws."
When a motor vehicle travels over the turnpike, the Authority and every one else observes the complete propriety and legality of collecting a toll to apply to pay for the Turnpike. Since the same trip necessarily consumes gasoline on which the traveler pays a specific tax per gallon, the Authority urges there is equal propriety and legality in applying a legislatively stated portion of that motor fuel tax for possible permissive use to pay for the Turnpike.
Section 3 of the 1959 Act, 69 O.S.Supp. § 682, provides the detailed method for determining the amount of motor fuel tax collected on motor fuel consumed on Turnpike Projects. This seems fairly adequate to accomplish the desired result and need not be fully set out here.
Section 4 of the 1959 Act, 69 O.S.Supp. 1959 § 683, provides in subdivisions (a) and (b) as follows:
"(a) The Oklahoma Turnpike Authority shall segregate and hold such motor fuel excise taxes apportioned to it by this Act in trust for the uses and purposes herein provided.
"(b) The deposits in this Trust Fund, as the same accumulate, may be expended or pledged by the Oklahoma Turnpike Authority, as it may deem proper, either in whole or in part, for making up any deficiency in the moneys available to meet interest requirement on Turnpike Bonds hereafter issued and for the payment of necessary expenses in the financing of additional Turnpikes, provided, that such expenses of financing shall not exceed on the Southwest Turnpike the sum of Twenty-five Thousand Dollars ($25,000.00) or on the Eastern Turnpike the sum of Fifty Thousand Dollars ($50,000.00), not more than ten per cent (10%) of which sums shall be used as attorneys' fees, and provided, that any funds expended as permitted herein shall, upon payment of all interest and principal of all bonds issued hereunder, and before delivery of any Turnpike to the State of Oklahoma Department of Highways, be replaced in said trust fund by said authority, and upon the completion of said reimbursement, said trust shall terminate and the balance in said trust fund shall be delivered to the State of Oklahoma Department of Highways."
The protestant at first, and in his brief, misconstrues the effect of section one as to this apportionment of this portion of motor fuel tax. He thought the section provided for a permanent pledging of these motor fuel taxes for the future years to pay for the turnpikes of the State. He thought this plan extended beyond the present biennium, and undertook to bind the future Legislatures to maintain the same motor fuel tax, and that the section undertook to require the expenditure of the stated portion of such tax through all future years to pay interest and principal of turnpike bonds.
Based upon this erroneous construction of the 1959 Act the protestant contended that a debt was created against the State.
However, in reply brief Authority pointed out the above quoted provision of Section 4 of the Act as making it plain that neither the Act as a whole, nor Section 1, was subject to the construction placed thereon by protestant. Authority thus-pointed out that "the deposits in this trust fund as the same accumulate may be extended or pledged by the Oklahoma Turnpike Authority as it may deem proper, either in whole or in part, for making up any deficiency in-the moneys available to meet any such requirements etc., " Thus limiting such pledges or expenditures to funds actually accumulated by apportionment of motor fuel tax.
This makes applicable the ruling in Application of Oklahoma Ed. Television Authority, Okl., 272 P.2d 1027, that the legislative use or application of funds on hand does not amount to any creation of a debt against the State.
Furthermore, if any money is spent by Authority out of the trust fund created with or from motor fuel taxes, it will only be a temporary use or expenditure since provision is made for its repayment into the fund by Authority.
Turnpikes are public highways. Application of Oklahoma Turnpike Authority, 203 Okl. 335, 221 P.2d 795. The above use of the stated portion of motor fuel tax funds is a use for a public purpose, and in fact is a public highway use.
Upon public hearing and oral argument the protestant now admits that upon a more studied construction of the Act, this provision for the specific use of the stated portion of motor fuel tax does not amount to the creation of any debt against the State, or constitute any illegal use of such tax money. Nevertheless, it is this court's duty to consider and to determine such questions.
We deem further discussion unnecessary. It is plain from the provisions of the Act, and .from what we have said above, that this apportionment of part of the tax from motor fuel consumed on the several turnpikes into a segregated trust fund and the possible permissive use of such fund, and the possible making of expenditures therefrom does not constitute any illegal use of such tax money, nor does such provision create any debt against the State of Oklahoma. This conclusion seems to us to be in complete harmony with this court's' decisions in the several Turnpike cases heretofore decided and cited in an earlier paragraph of this opinion.
We answer this first question in the affirmative.
Second Question:
"May the Oklahoma Turnpike Authority expend or pledge the deposits made to said Trust Fund, as the same accumulate, for the purpose of making up any deficiencies in the moneys available to meet interest requirements on Turnpike Bonds hereafter issued and for the payment of necessary expenses in financing additional Turnpikes limited by the provisions of said Act? "
Here again there is no pledging of motor fuel tax money for any period of time into the future, that is, for taxes collected during any future period. Here again the permissible use or expenditure of money out of this trust fund is for a public purpose, and on and in connection with public highways, and if the spending of this money is so used it would be legitimate and legal. This contingent permission to use money on hand in this fund of course cannot create any debt against the State. The provision does not create any obligation on the part of the State to pay any sum of money to any one, at any time. When we consider the component parts necessary to create a debt we see at once that no debt is here created. Based upon what we have said here, and what we said in answer to the first question, we likewise answer the second question in the affirmative.
Third Question:
"May the Oklahoma Turnpike Authority invest the moneys deposited in said Trust Fund not presently needed in Federal Accounts Receivable of the Department of Highways of the State of Oklahoma or in securities of the United States of America as provided in said Act ? "
Subdivisions (c) and (d) of Section 4 of the 1959 Act, 69 O.S.Supp. § 683, provide as follows:
"(c) Consistent with the provisions of Subsection (b) and so long as the same does not restrict the availability of such funds for the uses and purposes set forth in said Subsection (b), the Authority is authorized and directed to invest any funds in said Trust Fund in Federal Accounts receivable of the Department of Highways of the State of Oklahoma, by depositing not to exceed the amount of said Federal reimbursements in a Special Account in the State Highway Construction and Maintenance Fund in the State Treasury. Payments from such Special Account shall be made by the Department of Highways only for the payment of amounts which are to be reimbursed by the Federal Government. When such Federal reimbursement is actually received it shall be redeposited by the Department of Highways in such Special Account together with such additional State funds, if any, as may be necessary to make up any deficiency in the Federal reimbursement actually received. The Turnpike Authority is further authorized to withdraw from such Special Account at any time, any funds required to meet the commitments made under the terms of any Trust Agreement hereafter entered into for the purpose of financing a Turnpike Project or Projects."
"(d) The Oklahoma Turnpike Authority is hereby authorized to invest all or any part of such Trust Fund in securities of the United States of America."
The Federal Accounts Receivable mentioned in this portion of the 1959 Act come into existence in connection with numerous road and bridge construction projects handled by the State Highway Commission in cooperation with the proper agency of the Federal Government as Federal Aid programs. On those projects the Federal Government pays a percentage of the cost, but usually, if not always, only after the State Highway Commission has actually paid out the construction cost, and after specific agreement to participate has formerly been executed by the proper 'agency of the Federal Government. When that occurs on any given project then the Federal Agency is indebted to the State Highway Commission, and until collection is made the State Highway Commission sets up the amount due on and as a Federal Account Receivable in the agreed or calculated amount.
The investment of Turnpike Authority funds, on hand, but not presently needed for expenditure purposes, in these .Federal Accounts Receivable, or the deposit of such Turnpike Authority funds in the Special Account in the State Highway Commission Construction and Maintenance Fund in the State Treasury for such Federal Accounts Receivable in a sum equal to the amount deposited, can well be of benefit to the general highway purposes of the State, while such deposit of the money is no burden to the Turnpike Authority since the Authority may withdraw such funds from said Special Account at any time such funds are required to meet the commitments or requirements of the Turnpike Authority.
Since such funds of the Authority must be deposited somewhere pending the need to make expenditure, we see no reason why the Authority should not be given this statutory permission to make this particular investment or deposit. We construe this legislation as giving to the Turnpike Authority complete discretion in determining what portion of funds on hand could be considered as free from any present need for expenditure purposes, and therefore it seems to be left entirely to the discretion of the Turnpike Authority as to when or how much money it will invest or deposit in this particular Special Account for Federal Accounts Receivable.
As to subdivision (d) above quoted we think it is the universal practice to authorize various public agencies as well as others to make investments in securities of' the United States of America. This means of course in their discretion as to when and how much money may be so invested so as not to restrict the availability of such funds when they are needed by the Authority for proper expenditure purposes.
We answer question number three in the affirmative.
Fourth Question:
"May the Oklahoma Turnpike Authority construct and finance that part in Oklahoma of a Turnpike between a connection with the Turner Turnpike near the Oklahoma City Terminus and Wichita Falls, Texas, or any part of such Turnpike; and for that purpose enter into an agreement with the Oklahoma Department of Highways for the construction by the Department of Highways of a four-lane, divided, toll-free bridge on a United States or State Highway across the South Canadian River south or west of Will Rogers Airport and west of the north-south line of May Avenue, with !4th of the cost of said bridge and the approaches thereto to be paid by the Oklahoma Turnpike Authority and the remaining ¾ to be paid from1 State and Fé¿eral-Aid Funds?"
A very similar question was presented and decided in Application of Oklahoma Turnpike Authority, Old., 277 P.2d 176, where we answered the ninth question there presented in the affirmative.
In that case we held that the Turnpike Authority had authority to finance and Construct this particular Turnpike and that Authority could join with- the State of Texas and construct a toll-free bridge across Red River, each State paying one-half of the cost of constructing and maintaining said bridge. No more difficult question is presented by the inquiry here as to whether the Turnpike Authority could join with the State Highway Commission and the Federal Government in constructing a. toll-free bridge across the South Canadian River at the point in Oklahoma where the continuation of the Turnpike would run into or cross such river; one-fourth of the bridge cost to be paid by the Authority, and the remaining three-fourths to be paid from State and Federal Aid funds.
Since this matter is thoroughly discussed in the above referred to case, 277 P.2d at pages 192, 193 and 194, we need not repeat it nor discuss it further here. We approve that language of the former decision, and answer this fourth question in the affirmative.
Fifth Question:
"May the Oklahoma Turnpike Authority construct and finance a Turnpike, or any part or parts thereof, beginning at the Oldahoma-Texas State Boundary line, and extending North on a route lying East of the Cities and Towns of Wilson, Maysville, Norman and Oklahoma City, and West of the Eastern State Line of Oklahoma to a connection or connections between the Turner Turnpike and the south side of the Arkansas River in accordance with the terms of said Act?"
This 1959 Act expressly empowers the Authority to construct this Turnpike, referred to for convenience as the "Eastern Turnpike."
This court has heretofore approved similar legislation authorizing the construction of the "Turner Turnpike" 221 P.2d 795, and similar legislation authorizing the construction of the "Will Rogers Turnpike" and the "Southwestern Turnpike" 277 P.2d 176. The statements made in those two decisions furnish a complete answer to this question as to the general authority of the Turnpike Authority to construct this turnpike, provided of course, that the same is financed and constructed in accordance with the terms of this 1959 Act.
We therefore answer this fifth question in the affirmative.
Sixth Question:
"May the agreement or agreements for financing the two Turnpikes above referred to properly contain a provision that tolls shall continue to be charged on all Turnpikes until the bonds and the interest thereon, of all Turnpikes have been fully paid?"
Section seven of the 1959 Act, 69 O.S. Supp. § 655, subdivision (e) provides in paragraph numbered (2) for the construction of the "Southwestern Turnpike" and the bridge across South Canadian River, and in paragraph numbered (4) for the construction of the "Eastern Turnpike." The next paragraph of the Act provides as follows:
"The Agreement or Agreements for financing the Turnpikes authorized by Paragraphs (2) and (4) of this Section may contain a provision that tolls shall continue to be charged on all Turnpikes until the bonds, and the interest thereon, of all Turnpikes have been fully paid off, and provision that the revenues from any of the Turnpikes in excess of its operating and maintenance costs and sinking fund and other reserve requirements shall be used to pay the obligations of the other Turnpikes."
This combining of sources of revenue to pay for Turnpikes has much to commend itself in reason and in principle. All Turnpikes, as we have noticed, are public highways. By this provision the revenue from all Turnpikes will be or may be applied to pay for all Turnpikes which seems in principle to be quite sound and better for many reasons than merely to have each Turnpike to stand alone on its own base. Furthermore, this principle as applied to Turnpikes is quite similar to the combining of State Park facilities revenue to pay for all park facilities improvements. Application of Oklahoma planning and Resources Board case, Okl., 274 P.2d 61. •
In that case, similar to the situation here, we had a very valuable state park facility already a sound going concern, standing alone on its own base, that is, relying upon its own state park facilities income to retire its bonds, and thus to pay for constructing the facility. Then the Legislature provided for the issuance of bonds for the construction of various facilities in numerous other state parks, with the provision that income from all State Parks would be applied into the bond retirement fund until bonds for building of all such state park facilities were paid or fully financed. That authority would be sufficient to justify and require that we approve this provision of the 1959 Turnpike Act.
When tolls collected for travel on a Turnpike are used for construction and maintenance of that same Turnpike such funds are exclusively used for public highway purposes. When such tolls are so used for the benefit of other Turnpikes there is similar exclusive use for public highway purposes.
This plan will benefit the State by hastening the time when all Turnpikes may be finally turned over to the State Highway Department and will extend the time of maintenance of Turnpikes from tolls without payment thereof by Highway Copi-mission out of general highway funds. This will leave more of the general highway funds for use on other public highways while the Turnpikes will continue to be well maintained.
It is a matter of common knowledge that the first Turnpike, like the first substantial State Park facility, is prosperous and will quite likely pay out on its own separate bonds sooner than some other one or more of the Turnpikes or State Park facilities. It would seem that the similar plan, adjudged to be legal in reference to all Park facilities, available to all upon payment of the required charges, should also be found to be legal as applied to our Turnpikes likewise available to all.
We answer this sixth question in the affirmative.
Seventh Question:
"May the Act referred to properly cancel a contract previously entered into relating to Turnpikes not now financed or under construction?"
On this point Sec. 2 of the 1959 Act,' 69 O.S.Supp.1959 § 681, provides as follows:
"It is hereby declared to be the intent of the legislature, and the Oklahoma-Turnpike Authority is therefore directed to hold payments for engineering and legal services to the barest minimum, and it is further the intent of the Legislature that in regard to bonds hereafter issued, so far as possible, the service of the Chief Engineer of the Turnpike Authority be utilized as the Consulting Engineer and the service of the Attorney General be utilized as legal counsel for the Authority; that any contract, express or implied, heretofore entered into relating to turnpikes not now financed or under construction shall be a nullity, as far as bonds sold under this Act are concerned; and the Oklahoma Turnpike Authority is hereby directed to file with the presiding officer of each House of the Legislature at its next session a full and complete public report on all such fees paid or contracted to be paid, stating the reasons why the same were necessary and could not be reduced."
As a general economy measure or declaration for frugality and prudence this provision is wholesome. The express directions to Authority must be followed and in general the intent of the Legislature is well stated.
However, we cannot approve the stated "intent of the Legislature that any contract, express or implied, heretofore entered into relating to turnpikes not now financed or under construction shall be a nullity, as far as bonds sold under this Act are concerned."
This (7th) is a rather difficult question to consider or to comprehensively answer. We have no official information as to how far the efforts to finance or the commencement of construction of other turnpikes has progressed, so that we have no right to say in this connection which turnpikes are "not now financed or under construction." Furthermore, we have no contracts before us and we could have no thought as to how many contracts or which contracts the Legislature had in mind. If there are any such contracts, we do' not have the contracting parties before us and could therefore make no binding declaration affecting them. Of course if there are such former contracts which are invalid for any reason, then they would remain invalid without recourse or reference to this legislative Act. On the other hand, if the Authority had the power to enter into former contracts and did so, and if said contracts were fully valid when entered into, and if they continued as subsisting valid contracts up to the passage of this 1959 Act, then it is obvious that our Constitution would prohibit the Legislature from impairing the validity of such contracts merely by the quoted declaration in this 1959 Act. Const. Art. 2, Sec. 15. Even the approval of this legislation by the Court could not effectively vacate or invalidate any such former valid contracts.
However, in view of this definite statement of the "intent of the Legislature" the parties to any pre-existing contract, if any there be, should carefully check their contracts as to validity before proceeding thereon or undertaking any legal enforcement thereof, and if any such contracts should come before the courts for consideration, they should be carefully checked there for validity. We are really satisfied that nothing more than this could have been intended by the Legislature, in view of the well known constitutional prohibition against the authority of the Legislature to pass a law that would cancel an existing valid contract.
In effect this provision is directory to the Turnpike Authority directing it to assert the invalidity of any invalid or ineffective contracts, and directing the Authority, if the contracts are invalid or ineffective, to utilize the services of the Attorney General, and to use the Chief Engineer of Authority as their consulting engineer when and where not in conflict with any existing valid contracts.
Therefore, in general, the answer to this seventh question is that this Act, by the language here involved, is not effective to properly cancel any existing valid contracts for the reasons above stated.
Eighth Question:
"May an insurance company invest not to exceed 10 per cent of its assets in Turnpike Revenue Bonds of any one Turnpike ?"
The original Turnpike Act adopted in 1947, 69 O.S.1951, § 651 et seq., provided that all insurance associations, and insurance companies, as well as banks, trust companies, trust and loan associations, and investment companies could legally and properly invest funds in Turnpike Revenue Bonds, and it is understood as a historical fact that many such named entities, including insurance companies, did purchase turnpike bonds.
Thereafter, in 1957, when the Legislature adopted the Oklahoma Insurance Code, the long and comprehensive Act, S.L.1957, pp. 215 to 408, 36 O.S.Supp.1957 § 101 to 5301, provided in Secs. 1606 to 1626 that insurance companies could invest only in securities described in that Act. That Act omitted or did not refer to turnpike bonds, however, there is not evident any reason why that Legislature should have desired or intended to prevent such investment; or to change the existing law in that respect. At any rate, this 1959 Act provides in Section 8 thereof as follows:
"Section 1606,- paragraph A. House Bill No. 501, 1957 Session Laws, page 286, (Title 36, O.S.1957, Supplement, § 1606, paragraph (A) is hereby amended to read as follows:
"Section 1606. A. Every insurer shall invest and maintain invested funds to the amount of the minimum paid-in capital required under this code of a like domestic stock insurer transacting like kinds of insurance, only in cash and the securities described in the following sections of this Article: Section 1607 (Securities of or guaranteed by the United States) ; Section 1608 (Securities of states, counties, municipalities, school districts) ; and Section 1622 (Mortgage loans on real estate); and in bonds of the Oklahoma Turnpike Authority. Provided such investment in the bonds of any one Turnpike shall not at any one time aggregate an amount exceeding ten per cent (10%) of the insurer's assets."
The clear purpose of this Act is to authorize insurance companies to invest in Turnpike Bonds up to the percentage extent stated. Insurance Companies are not compelled so to do, but they may do so in their discretion. No objection is made to this permissive authority being granted to insurance companies, and it seems to us that there logically could not be any such question.
It has long been a legislative policy to put some limitation on investments by insurance companies. This result has been attained by listing certain bonds of determined stability and soundness as bonds worthy of being placed in such list. No reason is presented why Turnpike Bonds should not have a place along with securities of states, counties, municipalities and school districts for permissive insurance company investments.
We answer the eighth question in the affirmative.
Ninth and Last Question:
"May the Legislature properly designate the Oklahoma Turnpike Authority an instrumentality of the State and make the exercise of its powers in the construction, operation and maintenance of Turnpike Projects an essential governmental function of the State with all of the attributes thereof?"
On this point section six of the 1959 Act amended 69 O.S.1951 § 653 as amended, and completely restated that entire section as here amended. Subdivision (a) of section 6 of the 1959 Act takes the place of the first paragraph of 69 O.S.1951 § 653, and reads as follows:
"(a) There is hereby created a body corporate and politic to be known as the 'Oklahoma Turnpike Authority', and by that name the Authority may sue and be sued, and plead and be im-pleaded. The Authority is hereby constituted an instrumentality of the State, and the exercise by the Authority of the powers conferred by this Act in the construction, operation, and maintenance of turnpike projects shall be deemed and held to be an essential governmental function of the State with all the attributes thereof. Provided, however, the Turnpike Authority is authorized to carry and shall carry liability insurance to the same extent and in the same manner as the State Highway Commission, and in addition thereto it shall be subject to the Workman's Compensation Laws of the State the same as a private construction project."
The protestant does not make any attack on this provision. No objection has been made to it whatever, and we do not see how or why any objection could be made to it. This exact question was stated in both application and brief filed August 29, 1959, herein and although due public notice was given of the application and of the allowed protest period and of the date of hearing, no protest of the provision has been made.
Surely it is within the discretion of the Legislature to provide that the Authority may sue and be sued; that it is constituted an instrumentality of the state; that the exercise of its powers shall be deemed and held to be an essential governmental function of the state; that it is required to carry liability insurance the same as the State Highway Commission, and that Authority shall be subject to the Workman's Compensation Laws of the State.
: Generally, this provision rather closely analogizes Turnpikes, their construction :and operation, to the construction and operation of other public highways constructed and maintained by the State Highway Commission. Both types of roads are public highways, though they are constructed by different and separate state instru-mentalities, and are so separately maintained until the Turnpike is finally freed of all bond obligations and is taken over by the State Highway Commission.
There appears much reason why close similarity should generally prevail between the two as regards the details and items included in subdivision (a) here involved. Persons dealing with the Authority should have as much protection of all rights as if they so dealt with Highway Commission. Persons traveling over either type of highway should have equal rights and protection, except of course each traveler on the Turnpike must pay the toll and comply with the rules for entering and leaving and driving on the Turnpike, which in some details differ from similar use of some other public highway. We see no reason why such persons should have more or less of protection of rights as to either instance of travel. Generally, of course, there is similarity in the risk of highway travel, or the chance the motorist takes, ,on whatever type of public highway he travels. However, that risk should be substantially less on the Turnpikes where gradecrossings are eliminated, and there are other features of Turnpike travel which make for increased safety.
Liability insurance is carried by the State Highway Commission. Why not let the Legislature require Authority to do the same? We see no reason why not. And if the Legislature sees fit to extend the wholesome benefits of the Workmen's Compensation Laws to the employees of Authority, the same as to other workers engaged in employment classified as hazardous, we see nothing therein but rational legislation with no illegality or unvalidity. We here note that the Legislature applies this law to workers engaged in a great many stated employments. There is no expressed limitation on this power to legislatively classify and list those employments deemed to be hazardous. The effect of this provision is to so classify employment on Turnpikes.
Here, as in other questions, there is no protest or objection, but we took it as our duty under the Act to' consider the entire Act and to answer each specific question presented.
We answer this ninth question in the affirmative.
Pursuant to the authority and duty of the Court in this matter the validity and constitutionality of this Act is in general approved, except as to question number seven. The answer heretofore stated to all nine questions are so adjudicated.
This we deem to be a complete discharge of the Court's duty under the Act and pursuant to a consideration of the Application and Protest. If either party has further question, or if we have not clearly spoken on a question, either party may so state in petition for rehearing.
The Court hereby fixes a period of ten (10) days in which a petition for rehearing may he filed herein.
DAVISON, C. J., and HALLEY, JOHNSON and JACKSON, JJ., concur.
BERRY, J., concurs in part and dissents in part.
WILLIAMS, V. C. J., and BLACKBIRD and IRWIN, JJ., dissent.