Court Opinion

ID: 9847479
Source: CourtListenerOpinion
Date Created: 2023-09-24 04:00:20.19229+00
Date Added: 2024-06-11T09:17:15.647684
License: Public Domain

CORN, Justice
(dissenting).
In this case we are called upon to say whether the resolution of the Planning and Resources Board passed by it July 29th, 1954, is in violation of Section 23, Article *7110 of the State Constitution. The resolution is as follows:
"A Resolution authorizing the issuance of $25,000,000 State Park Improvement Bonds of the Oklahoma Planning and Resources Board for the purpose of making improvements to state parks and for the purpose of refunding certain bonds heretofore issued for such purpose; confirming the sale of such bonds; providing for the payment of principal thereof and interest thereon; providing for the security of such bonds, and entering into certain covenants and agreements in the above connection.”
“Whereas there now exist in the State of Oklahoma for the use and convenience of the inhabitants thereof recreational areas designated as ‘state parks’ all of which state parks are to be improved with the proceeds of the bonds herein authorized, and all state parks hereafter acquired by the State of Oklahoma prior to the issuance of the last of the bonds herein authorized will be similarly improved with the proceeds of such bonds. Accordingly, all parks and recreational properties now owned by the State of Oklahoma, together with all additions which may be made thereto and all additional park and recreational properties which may be hereafter acquired by the State of Oklahoma and by Oklahoma Planning and Resources Board and improved with any part of the proceeds of the bonds herein authorized, are hereinafter sometimes referred to as “the parks”; and
‘Whereas jurisdiction over the parks is imposed in the Oklahoma Planning and Resources Board, which board is sometimes hereinafter in this resolution referred to as “the board,” and it has been determined by the board to be necessary, in order to make available to the people of the state fuller benefit of the recreational opportunities afforded by the parks, to improve the parks through the acquisition and construction in the parks of recreational facilities, lodges, restaurants and cabins and to make such other improvements thereto as are contemplated by the plan of improvement heretofore approved by the board; and
"Whereas the board does not have funds available for such purposes, and it is therefore desired to pay the cost thereof through the issuance of the revenue bonds of the board, pursuant to authority contained in Chapter 12a of Title 74 of the Session Laws of Oklahoma, 1947, as amended; and
“Whereas the board has heretofore issued $850,000 revenue bonds for the purpose of improving Lake Murray State Park and as pledged to the payment of such bonds the revenue to be derived from the operation of Lake Murray State Park, and in order to make possible construction of additional improvements in Lake Murray State Park and in order to release for the payment of bonds issued to improve other parks, the revenue now pledged to the payment of the aforesaid revenue bonds, it is desired to refund said bonds into an issue of revenue bonds payable from the revenue of all of the parks, which bonds shall be issued for the combined purpose of improving all of the parks and refunding the aforesaid revenue bonds payable from the revenue of Lake Murray State Park, which bonds are under their terms subject to call for redemption on January 1, 1955, and can be so called for redemption and refunded;
"Now, Therefore, Be It Resolved by the Oklahoma Planning and Resources Board, as follows:
"Section 1. That the parks be improved as recited in the preamble hereto.
"Section 2. That for the purpose of paying the cost of improving the parks, and for the purpose of refunding $850,-000 State Park Improvement Bonds dated January 1, 1949, numbered 1 to 850, inclusive, due January 1, 1979, including the payment of reasonable *72legal, engineering and fiscal services incidental thereto, and to pay interest on each block of the bonds herein authorized for the period to be covered by the construction of the improvements to the parks to be acquired with the proceeds of such block, and for a period of six months thereafter, there shall be issued on the credit of the income and revenue to be diverted by the board from the operation of the parks, bonds in the principal amount of $25,-000,000. All revenue and income of every nature derived from the operation of the parks during the period while any of the bonds herein authorized remain outstanding, including specifically, but without limitation, money received as rentals or otherwise for the use of all buildings and facilities located in the parks, admission fees charged for entrance to the portion of each park hereinafter defined as the ‘Improved Area,’ fees and charges collected for the inspection of watercraft, money received for licenses and permits, including permits for the operation of water-craft, money received from concessionaires operating in the parks, charges made for the use of facilities owned ánd operated by the board within the boundaries 'of the parks, income from fishing licenses and permits (except to the extent that such revenue is now required by law to be used for some other purpose), fees received for the use of bridle paths in the parks, and generally, all revenues received by the board from' the operation of all facilities existing in the several parks, or from any lease- or other use of any or all of the parks or portion thereof, are collectively hereinafter in this resolution sometimes referred to as ‘the revenues’.
“Section 3. That said bonds shall be known as ‘State Park Improvement Bonds’ (hereinafter in this resolution sometimes referred to as ‘the bonds’), shall be dated July 1, 1954, shall be in, the denomination of $1,000 each, shall be numbered 1 to 25,000, inclusive, and shall be payable as to both principal and interest at The First National Bank and Trust Company and Oklahoma City, in the City of Oklahoma City, Oklahoma, or at the option of the holder thereof at United States Trust Company of New York, in the City of New York, New York. Bonds numbered 1 to 7200, inclusive, shall bear interest at the rate of four and one-half per cent (4½%) per annum from date until paid, and bonds numbered 7201 to 25,-000, inclusive, shall bear interest at such rate or rates as may be determined at the time of the sale therof, all of which interest is to be payable January 1, 1955 and semi-annually thereafter on January 1 and July 1 of each year. The bonds numbered 1 to 7200, inclusive, shall mature as to principal on July 1, 1984, and bonds numbered 7201 to 25,000, inclusive, shall mature on July 1 of the thirtieth year after issuance.
, “The bonds shall be callable for redemption prior to maturity at the option of the board, with the bonds to be so redeemed on each interest payment date to be selected by lot, on July 1, 1956 and on any payment date thereafter, but only if payment, therefor can be made from the revenues derived from the operation of the parks. The bonds shall also be callable for redemption prior to maturity at the option of the board, in part, by lot or as a whole, without regard to the source of payment, on July 1, 1964 and on any pay-' ment date thereafter. Any bond redeemed pursuant to either option of redemption so reserved, shall be redeemable at the principal amount thereof plus accrued interest to the date fixed for redemption and a premium of $50 if so redeemed on or prior to July 1, 1968, $40 if redeemed thereafter on or prior to July 1, 1972, $30 if redeemed thereafter on or prior to July 1, 1976, $20. if redeemed thereafter on or prior to July 1, 1980, and $10 .if redeemed thereafter prior to maturity. Notice of redemption shall be given not less *73than thirty days prior to the date fixed for redemption by notice sent by registered mail to the holder or holders of the bonds to be redeemed, directed to the addresses shown on the Registrar’s registration books. If any bond to be so redeemed is not registered as to principal at least thirty days notice shall' be given through publication of an appropriate notice in a financial newspaper or journal published in the City of New York, New York, and sent by registered mail to the banks at which the bonds are payable. * * * ”
Section 23, Article 10 of the State Constitution as amended on March 11, 1941, is as follows:
“The State shall never create or authorize the creation of any debt or obligation * * * against the State, or any department, institution or agency thereof, regardless of its form or the source of money from which it is to be paid * * *
The following tabulation shows the income of the various state parks for the past fiscal year from presently existing facilities:
1. Quartz .Mountain $19,157.14
2. Beavers Bend 14,946.64
3. Robbers Cave . 30,370.41
4. Osage Hills 6,235.27
5. Boiling Springs 3,080.43;
6. Sequoyah 22,366.90
7. Texoma 9,496.40
8. Roman Nose 17,112.77
9. Lake Wister 98.25
10. Alabaster Caverns 559.45
11. Greenleaf Lake 1,118.31
12. Tenkiller 6,216.01
Appropriations to the Oklahoma Planning and Resources Board are as follows:"
Fiscal Year Total Appropriation all functions, including Administration Park Operation Park Capitol Improvements
1943-44 $ 175,836.30 $ 38,900.00 $ 8,787.40
1944-45 122,640.00 37,900.00 Nil
1945-46 283,760.00 52,010.00 46,400.00
1946-47 243,760.00 52,010.00 11,400.00
1947-48 766,125.00 80,430.00 214,350.00
1948-49 . 378,845.00 80,690.00 7,350.00
1949-50 898,642.00 165,862.00 256,500.00
1950-51 628,790.00 150,462.00 Nil
1951-52 . 1,191,842.00 171,862.00 469,500.00
1952-53 631,990.00 156,462.00 Nil
1953-54 1,603,200.00 655,717.67 680,559.61
1954-55 1,371,800.00
In order for the bonds to be self-liquidating, and not in violation of Section 23, Article 10 of the State Constitution, the money to pay the interest and retire the bonds would necessarily have to come solely from the net proceeds derived from the operation of the buildings and facilities built by the money received from the sale of the bonds. I respectfully dissent,