Court Opinion

ID: 9788509
Source: CourtListenerOpinion
Date Created: 2023-08-31 00:55:28.582972+00
Date Added: 2024-06-11T07:37:11.601546
License: Public Domain

WINCHESTER, J.,
dissenting.
T 1 The case at bar involves the interpretation of Article 10, §§ 6C and 26 of the Oklahoma Constitution. The majority holds the tax increment financing plan adopted under the Local Development Act, 62 0.8. Supp. 1992, § 850, et seq., and § 6C, creates a prohibited debt within the meaning of § 26. For the reasons set forth herein, I would declare § 6C an exception to the debt limitations of § 26.
[ 2 When the people of Oklahoma voted to adopt § 6C, they authorized the Legislature to provide tax incentives for economic development. The implementing legislation (Local Development Act) vests the Legislature with the power to control numerous facets of local development projects, including incentives and exemptions from taxation, project procedures, limitations on the use of local taxes and fees, length of indebtedness, geographic area of the jurisdiction affected and percentage of tax base. See 62 O.S. Supp. 1997, § 861. In the instant case, a "governing body" as defined by 62 0.8. Supp.1997, § 853(7), passed Ordinance No. 19,875 to approve the Oklahoma Health Center Eeonomic Development Project Plan and establish Increment District Number One.
RULES OF CONSTRUCTION
T8 The more recent, specific provisions of § 6C adopted at the election held November 6, 1990, and its implementing legislation, adopted in 1992, must be given effect over the prior, general provisions of § 26. See Brown v. Marker, 1965 OK 172, ¶ 19, 410 P.2d 61, 66. Since § 6C provides local initiative power and referendum of the people, it adequately addresses the interests met by § 26 of voter assent to indebtedness that exceeds one year.
"In the construction of the statutes, harmony, not confusion, is to be sought. The true rule has often been said to be that, where two acts or parts of acts are reasonably susceptible of a construction that will give effect to both and to the words of each, without violence to either, it should be adopted in preference to one which, though reasonable, leads to the conclusion that there is a conflict."
*695Forston v. Heisler, 1959 OK 122, ¶ 10, 341 P.2d 252, 255.
{4 Construction of a constitutional provision must not be so strict as to defeat the purpose of its adoption. Lone Star Gas Co. v. Bryan County Excise Board, 193 Okla. 13, ¶ 3, 141 P.2d 83, 85. In its opinion, the majority so errs. In declaring Ordinance No. 19,875 unconstitutional, the majority ignores the purpose of § 6C that is stated in plain language: to allow the Legislature to grant "incorporated cities, towns, or counties the ability to provide incentives, exemptions and other forms of relief from taxation for historic preservation, reinvestment, or enterprise areas that are exhibiting economic stagnation or decline." We should follow the Legislature's practicable construction of § 6C to sustain constitutionality, since it will not do violence to the fair meaning of the words. By recognizing the exception provided in § 6C, we do this and we also harmonize the two constitutional provisions at issue.
15 Although the bonds in the instant case will be retired from the tax increment increase over the original base value used to calculate ad valorem taxes, it is important to note that the project expenditures will result in tangible assets such as parking facilities and the bio-medical and technological research and development park. These tangible assets will generate revenues, such as parking fees and office space rents, which also could be utilized to retire the bonds.
CONCLUSION
T6 Accordingly, I would hold that Article 10, § 6C of the Oklahoma Constitution constitutes an exception to the debt limitations of Article 10, § 26.