Opinion ID: 2016681
Heading Depth: 1
Heading Rank: 10

Heading: multiple subjects in one act

Text: The plaintiff also argues that L.B. 829 is unconstitutional because it contains more than one subject, in violation of article III, § 14, of the Nebraska Constitution. The plaintiff points out that the act includes provisions relating to property taxes, which exist as a revenue source for political subdivisions only, as well as provisions regarding the sales and use tax and the corporate income tax, which exist as revenue sources for the State. See 1991 Neb.Laws, L.B. 829, §§ 7, 21, 22, and 24. The plaintiff also notes the inclusion of provisions governing such diverse topics as the procedure for obtaining a tax refund and the retroactive application of judicial decisions declaring a tax or penalty unconstitutional. Id. at §§ 13, 14, and 15. A statute does not violate article III, § 14, if it can fairly be said that the title calls attention to the subject matter of the bill. Blackledge v. Richards, 194 Neb. 188, 231 N.W.2d 319 (1975). In Anderson v. Tiemann, 182 Neb. 393, 155 N.W.2d 322 (1967), appeal dismissed, 390 U.S. 714, 88 S.Ct. 1418, 20 L.Ed.2d 254 (1968), the plaintiffs challenged a bill providing for a sales tax, a use tax, an income tax, and a franchise tax as violating the constitutional prohibition against including more than one subject in a single bill. In rejecting the plaintiffs' claim, the court stated: If an act has but one general object, no matter how broad that object may be, and contains no matter not germane thereto, and the title fairly expresses the subject of the bill, it does not violate Article III, section 14, of the Constitution. [Citation omitted.] ... This court holds that the provisions of [the challenged statute] contain but one general subject, taxation, and that it does not violate the Constitution of Nebraska. Id. 182 Neb. at 408-09, 155 N.W.2d at 332. The title of L.B. 829 discloses that it relates to taxation and revenue. All of the provisions in the bill relate and are germane to the general subject of taxation. Blackledge and Anderson make clear that this is enough. We cannot say the bill violates article III, § 14, of the Nebraska Constitution. Finally, in connection with his argument that L.B. 829 contains more than one subject, the plaintiff argues that § 14 of the act violates the doctrine of separation of powers contained in Neb. Const. art. II, § 1. Section 14 vests the Tax Commissioner with authority to determine whether judicial decisions holding a tax or penalty unconstitutional should apply prospectively, subject only to review by the court rendering the decision in the same manner as a motion for rehearing. 1991 Neb.Laws, L.B. 829, § 14 (codified at Neb.Rev.Stat. § 77-1736.04 (Supp.1991)). The provision further vests exclusive jurisdiction in the Supreme Court to determine the constitutionality of tax laws of statewide application. Id. The Nebraska Constitution firmly establishes that the judicial power in Nebraska is vested solely in the courts. Transport Workers of America v. Transit Auth. of City of Omaha, 205 Neb. 26, 286 N.W.2d 102 (1979), citing Neb. Const. art. II, § 1, and art. V, § 1. As a general rule administrative agencies have no general judicial powers, notwithstanding they may perform some quasi-judicial duties. Moreover, unless permitted by the Constitution, the Legislature may not authorize administrative officers or bodies to exercise powers which are essentially judicial in their nature, or to interfere with the exercise of such powers by the courts. Transport Workers of America, 205 Neb. at 34, 286 N.W.2d at 107. In Transport Workers of America, the court held that the entry of declaratory judgments and the ordering of accountings are clearly judicial functions which the Legislature may not delegate to the Commission of Industrial Relations. Davis v. General Motors Acceptance Corp., 176 Neb. 865, 127 N.W.2d 907 (1964), involved a series of statutes passed by the Legislature relating to installment sales contracts and installment loans. One of these statutes included a provision that any declaration of unconstitutionality as to the statutes would apply prospectively only. This court held that the provision violated the doctrine of separation of powers. The court reasoned: It is a settled principle of constitutional law that the construction and interpretation of the Constitution is a judicial function and it is the duty of the judicial branch of our government to determine whether an act of the Legislature contravenes the provisions of the Constitution. [Citation omitted.] This power and duty necessarily include the authority to determine what effect if any an unconstitutional statute shall have upon the rights of parties which may have been affected by it. Id. at 871, 127 N.W.2d at 912. The State seeks to avoid the effect of Davis by noting that L.B. 829 provides for judicial review of the Tax Commissioner's determination in the same manner as a motion for rehearing. Cf. Anderson v. Tiemann, supra (delegation of quasi-judicial functions to the Tax Commissioner is allowable when the duties relate to matters peculiarly within the public interest and provision is made for appeal to the courts). Anderson, however, involved only a challenge to the general rulemaking authority of the Tax Commissioner. Davis makes clear that determination of the prospective or retroactive effect of a judgment of unconstitutionality is essentially judicial in nature, as opposed to merely a quasi-judicial function, and therefore may not be delegated to an administrative agency. For the same reasons discussed above in relation to § 5 of L.B. 829, we find that § 14 is severable from the remainder of the act. Therefore, in addition to declaring § 7 of L.B. 829 unconstitutional as it relates to tax year 1991, we also declare § 14 of L.B. 829 unconstitutional as a violation of the separation of powers doctrine contained in Neb. Const. art. II, § 1. JUDGMENT FOR PLAINTIFF.