146 Me. 295 | Me. | 1951
House Order Propounding Questions
State of Maine
In House of Representatives
May 9, 1951
Whereas, there is now pending before the House of Representatives a bill, “An Act Creating the Maine School Building Authority” House Paper No. 1274, Legislative Document No. 824, a printed copy of which Document is hereto attached and made a part hereof and marked Exhibit A; and
Whereas, an Amendment identified as House Amendment “A” to said Bill has been proposed, a copy of which proposed amendment is hereto attached and made a part hereof and marked Exhibit C; and
Whereas, there is now pending before the House of Representatives “Resolve, Proposing an Amendment to the Constitution to Exempt Rental Agreements with the Maine School Building Authority from the Limitations of Municipal Indebtedness” House Paper No. 1082, Legislative Document No. 695, a printed copy of which Document is hereto attached and made a part hereof and marked Exhibit D; and
Whereas, an Amendment identified as Committee Amendment “A” has been reported by the Committee on Judiciary to the House of Representatives, a copy of which proposed Amendment is hereto attached and made a part hereof and marked Exhibit E; and
Whereas, grave doubt has arisen as to the constitutionality of said bill with relation to:
1. The pledging of the credit of the State, directly or indirectly;
2. Limitation of municipal indebtedness; and
8. Diversion of state school funds; and
Whereas, to the House of Representatives of the 95th Legislature it appears that the questions herein raised are important and that the occasion is a solemn one,
Now, therefore, be it
Question 1
Would Bill, “An Act Creating the Maine School Building Authority,” if enacted with or without amendments as proposed, pledge the credit of the State, directly or indirectly, contrary to the Constitution?
Question 2
If the “Resolve, Proposing an Amendment to the Constitution to Exempt Rental Agreements with the Maine School Building Authority from the Limitations of Municipal Indebtedness,” with or without the proposed amendment, were adopted by the people, would the provisions of Legislative Document No. 824, if enacted with or without amendments as proposed, violate any of the constitutional provisions relative to limitation of municipal indebtedness?
Question 8
If the Resolve were not adopted by the people, would the provisions of Legislative Document No. 824, if enacted with or without amendments as proposed, violate any of the provisions of the Constitution relative to limitation on municipal indebtedness?
EXHIBIT A
Legislative Document No. 824
H. P. 1274 House of Representatives, February 21, 1951
Referred to the Committee on Judiciary. Sent up for concurrence and 1250 copies ordered printed.
HARVEY R. PEASE, Clerk
Presented by Mr. Low of Rockland.
STATE OF MAINE
IN THE YEAR OF OUR LORD NINETEEN HUNDRED FIFTY-ONE
AN ACT Creating the Maine School Building Authority.
Be it enacted by the People of the State of Maine, as follows:
Sec. 1. R. S., c. 37, §§ 212-228, additional. Chapter 37 of the revised statutes is hereby amended by adding thereto 17 new sections, to be numbered 212 to 228, inclusive, to read as follows:
TVÍame School Building Authority
Sec. 212. Short title. Sections 212 to 228, inclusive, shall be known and may be cited as the “Maine School Building Authority Act.”
Sec. 213. Purpose. A general diffusion of the advantages of education being essential to the preservation of the rights and liberties of the people; to aid in the provision of public school buildings in the state, the “Maine School Building Authority,” herein created, is hereby authorized and
Sec. 214. Credit of state not pledged. Revenue bonds issued under the provisions of sections 212 to 228, inclusive, shall not be deemed to constitute a debt of the state of Maine nor a pledge of the credit of the state, but such bonds shall be payable solely from the funds herein provided therefor, and a statement to that effect shall be recited on the face of the bonds.
Sec. 215. Organization of authority. There is hereby created and established a body corporate and politic to be known as the “Maine School Building Authority.” The Authority is hereby constituted a public instrumentality of the state, and the exercise by the Authority of the powers conferred by the provisions of sections 212 to 228, inclusive, shall be deemed and held to be the performance of essential governmental functions. The Maine School Building Authority shall consist of 7 members, including the governor, the commissioner of education, the senate chairman of the committee on education, and 1 member of the state board of education to be appointed by the governor, to serve during their incumbency in said offices, and 3 members at large appointed by the governor for terms of 3, 4 and 5 years respectively, to hold offices as follows: 1 until the completion of the 3rd full fiscal year following his appointment; 1 until the completion of the 4th such full fiscal year and 1 until the completion of the 5th such full fiscal year. All other original appointments of such members shall be for a period of 5 years, and said Authority shall constitute a body corporate and politic. A vacancy in the office of an appointive member, other than by expiration, shall be filled in like manner as an original appointment, but only for the remainder of the term of the retiring member. Appointive members may
All members of the Authority shall be reimbursed for their actual expenses necessarily incurred in the performance of their duties and the appointive members shall receive, in addition, $10 per day for services actually rendered.
Sec. 216. Definitions. As used in sections 212 to 228, inclusive, the following words and terms shall have the following meanings, unless the context shall indicate another or different meaning or intent:
“Authority” shall mean the Maine School Building Authority created by sections 212 to 228, inclusive.
“Project” or the words “school project” shall mean a public school building or buildings or any extension or enlargement of the same, including land, furniture and equipment for use as a public school or public schools, together with all property, rights, easements and interests which may be acquired by the Authority for the construction or the operation of such project.
“Cost” as applied to a project shall embrace the cost of construction or acquisition, the cost of the acquisition of all land, rights-of-way, property, rights, easements and interests acquired by the Authority for such construction or
“School building” shall mean, but shall not be limited to, any structure used or useful for schools and playgrounds, including facilities for physical education.
“Town” or “towns” as used herein includes cities and plantations.
Sec. 217. General grant of powers. The Authority is hereby authorized and empowered:
I. To adopt by-laws for the regulation of its affairs and the conduct of its business;
II. To adopt an official seal and alter the same at pleasure;
III. To maintain an office at such place or places within the state as it may designate;
IV. To sue and be sued in its own name, plead and be implead; provided, however, that any and all actions at law or in equity against the Authority shall be brought only in the county in which the principal office of the Authority shall be located;
*302 V. To construct or acquire, extend, enlarge, repair or improve school projects at such locations within the state as may be determined by the Authority, when the superintending school committee on any town or the community school committee of a community school district has certified the need therefor to the municipal officers of such town or the trustees of such community school district together with their recommendation for the procurement of new, additional or different public school buildings, and such recommendation has been approved by such municipal officers, town or towns, and by the state board of education. This Authority may acquire the properties of a town, a school district or community school district, subject to the liabilities thereof and under conditions consistent with the provisions of sections 212 to 228, inclusive, and may issue revenue bonds in replacement of the outstanding liabilities.
VI. To issue revenue bonds of the Authority for any of its corporate purposes, payable solely from the rentals and revenues pledged for their payment, and to refund its bonds, all as provided in sections 212 to 228, inclusive; and to secure any issue of such bonds by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state;
VII. To make temporary loans to finance individual projects until such time as the Authority may deem it advantageous to issue revenue bonds on said projects.
VIII. To fix, alter, charge and collect rentals and other charges for use of school projects financed under the provisions of sections 212 to 228, inclusive, at reasonable rates to be determined by it for the purpose of providing for the payment of the expenses of the Authority, the improvement, repair and maintenance of such projects, the payment of the principal of and the interest on its*303 revenue bonds, and to fulfill the terms and provisions of any agreements made with the purchasers or holders of any such bonds;
IX. To acquire, hold and dispose of real and personal property in the exercise of its powers and the performance of its duties under the provisions of sections 212 to 228, inclusive.
X. To acquire in the name of the Authority, by purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, or by the exercise of the power of eminent domain, such lands or rights therein as it may deem necessary for carrying out the provisions of sections 212 to 228, inclusive.
XI. To make and enter into all contracts, leases and agreements necessary or incidental to the performance of its duties and the execution of its powers under the provisions of sections 212 to 228, inclusive;
XII. To utilize the services of agencies and departments of the state whenever feasible, and to employ such other persons and agents as may be necessary in its judgment, and to fix compensations;
XIII. To accept from any authorized agency of the federal government loans or grants for the planning, construction or acquisition of any project and to enter into agreements with such agency respecting any such loans or grants, and to receive and accept aid and contributions from any source of either money, property, labor or other things of value, to be held, used and applied only for the purpose for which such loans, grants or contributions may be made; and
XIV. To do all acts and things necessary or convenient to carry out the powers expressly granted in sections 212 to 228, inclusive.
Sec. 219. Revenue bonds. The Authority is hereby authorized to provide by resolution, at 1 time or from time to time, for the issuance of revenue bonds of the Authority for
The proceeds of the bonds shall be used solely for the payment of the cost of the projects and shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the resolution authorizing the issuance of such bonds or in any trust agreement securing the same.
Prior to the preparation of definitive bonds, the Authority may, under like restrictions, issue interim receipts, notes or temporary bonds, with or without coupons, which may be exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The Authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of sections 212 to 228, inclusive, without obtaining the consent of any departmental division, commission, board, bureau or agency of the state, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by sections 212 to 228, inclusive.
Sec. 220. Trust funds. Notwithstanding the provisions of any other law, all moneys received pursuant to the authority of sections 212 to 228, inclusive, whether as proceeds
Sec. 221. Remedies. Any holder of bonds issued under the provisions of sections 212 to 228, inclusive, or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by such trust agreement, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder or under such trust agreement or the resolution authorizing the issuance of such bonds, and may enforce and compel the performance of all duties required by sections 212 to 228, inclusive, or by such trust agreement or resolution to be performed by the Authority or by any officer thereof.
Sec. 222. Revenue refunding bonds. The Authority is hereby authorized to provide by resolution for the issuance of revenue refunding bonds of the Authority for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of sections 212 to 228, inclusive, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds; and, if deemed advisable by the Authority, for the additional purpose of constructing enlargements, extensions or improvements of the project or projects in connection with which the bonds to be refunded shall have been issued or constructing or acquiring
Sec. 223. Transfer to towns. When the bonds issued under the provisions of sections 212 to 228, inclusive, in connection with any project and the interest thereon shall have been paid or a sufficient amount for the payment of such bonds and the interest thereon to the maturity thereof shall have been set aside in trust for the benefit of the bondholders, such project shall be conveyed by the Authority to the lessee town or community school district.
Sec. 224. Preliminary expenses. The state board of education is hereby authorized in its discretion and with the approval of the Authority to expend out of any funds available for the purpose, such moneys as may be necessary for any preliminary expenses of the Authority, including architectural and other services, and all such expenses incurred by the board prior to the issuance of revenue bonds under the provisions of sections 212 to 228, inclusive, shall be paid by the board and charged to the appropriate project or projects and the board shall keep proper records of accounts showing each amount so charged. Upon the issuance of revenue bonds for any project or projects, the funds so expended by the board in connection with such project or projects shall be reimbursed to the board from the proceeds of such bonds.
Sec. 225. Bonds eligible for investment. Revenue bonds and revenue refunding bonds issued under the provisions of sections 212 to 228, inclusive, are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, trust companies and their commercial departments, banking associ
Sec. 226. Additional method. Sections 212 to 225, inclusive, shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby, and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing; provided, however, that the issuance of revenue bonds or revenue refunding bonds under the provisions of sections 212 to 228, inclusive, need not comply with the requirements of any other law applicable to the issuance of bonds.
Sec. 227. Liberally construed. The provisions of sections 212 to 228, inclusive, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof.
Sec. 228. Exemption from taxation. As the exercise of the powers granted by sections 212 to 228, inclusive, will be in all respects for the benefit of the people of the state and for the improvement of their educational facilities, and as projects constructed under the provisions of said sections constitute public property, the Authority shall not be required to pay any taxes or assessments upon any bonds issued under the provisions of sections 212 to 228, inclusive, their transfer and the income therefrom including any profit
Sec. 2. Appropriation. In order to provide for the necessary expenditures in the administration of the Authority created by section 1 of this act, for the fiscal years ending June 30, 1952 and June 30, 1953, there are hereby appropriated the sums of $15,000 for such use in each of said fiscal years, or so much thereof as shall severably be found necessary, out of any moneys in the general fund not otherwise appropriated.
EXHIBIT B
Committee Amendment “A” to H. P. 1274, L. D. 824, Bill “An Act Creating the Maine School Building Authority.”
Amend said Bill by adding at the end of that part designated “Sec. 218.” thereof the following underlined paragraph :
‘No contract or agreement between a town or towns or community school district and the Authority shall be valid unless first approved by the inhabitants of the town or towns involved either individually or as members of a community school district.’
Further amend said Bill by adding, after the underlined word “Authority” in the 3rd line of that part designated “Sec. 219.” thereof, the following underlined words and figures : ‘but not to exceed $15,000,000 outstanding’
Further amend said Bill by inserting, before the underlined words “any project” in the 6th line of that part designated “Sec. 228.” thereof, the following underlined words: ‘any of its property or’
Reported by a Majority of the Committee on Judiciary.
House Amendment “A” to H. P. 1082, L. D. .695, “Resolve, Proposing an Amendment to the Constitution to Exempt Rental Agreements with the Maine School Building Authority from the Limitations of Municipal Indebtedness.”
Amend said Resolve by striking out the 2nd paragraph thereof and inserting in place thereof the following paragraph :
‘Constitution, Art. IX, Section 15, amended. Section 15 of Article IX of the constitution, as amended, is hereby further amended by adding at the end thereof a new sentence, to read as follows:’
Filed by Mr. Low of Rockland.
EXHIBIT D
NINETY-FIFTH LEGISLATURE
Legislative Document No. 695
H. P. 1082 House of Representatives, February 14, 1951
Referred to the Committee on Judiciary. Sent up for concurrence and ordered printed.
HARVEY R. PEASE, Clerk
Presented by Mr. Senter of Brunswick.
IN THE YEAR OF OUR LORD NINETEEN HUNDRED FIFTY-ONE
RESOLVE, Proposing an Amendment to the Constitution to Exempt Rental Agreements with the Maine School Building Authority from the Limitations of Municipal Indebtedness.
Constitutional amendment. Resolved: Two-thirds of each branch of the legislature concurring, that the following amendment to the constitution of this state be proposed :
Constitution, Art. XXII, amended. Article XXII of the constitution, as amended by article XXXIV, is hereby further amended by adding at the end thereof a new sentence, to read as follows:
‘Long term rental agreements under contracts with the Maine School Building Authority shall not be considered debts or liabilities within the provisions of this article.’
Form of question and date when amendment shall be voted upon. Resolved: That the aldermen of cities, the selectmen of towns and the assessors of the several plantations of this state are hereby empowered and directed to notify the inhabitants of their respective cities, towns and plantations to meet in the manner prescribed by law for calling and holding biennial meetings of said inhabitants for the election of senators and representatives at the next general or special state-wide election, to give in their votes upon the amendment proposed in the foregoing resolution, and the question shall be: “Shall the constitution be amended as proposed by a resolution of the legislature to exempt rental agreements with the Maine School Building Authority from the limitations of municipal indebtedness?”
Secretary of state shall prepare ballots. Resolved: That the secretary of state shall prepare and furnish to the several cities, towns and plantations ballots and blank returns in conformity with the foregoing resolve, accompanied by a copy thereof.
EXHIBIT E
Committee Amendment “A” to H. P. 1082, L. D. 695, Resolve, Proposing an Amendment to the Constitution to Exempt Rental Agreements with the Maine School Building Authority from the Limitations of Municipal Indebtedness.
Amend said resolve by inserting after the underlined word “agreements” in the fourth line thereof, the underlined words and figures ‘not exceeding 40 years.’
Further amend said resolve by striking out in the fifth line thereof the underlined word “considered.”
Reported by a Majority of the Committee on Judiciary.
To the Honorable House of Representatives of the State of Maine:
The undersigned Justices of the Supreme Judicial Court, in accordance with the provisions of the Constitution, respectfully answer herein the questions propounded by the House of Representatives in an order dated May 9, 1951 passed May 10, 1951 relative to House Paper No. 1274, Legislative Document No. 824 entitled “An Act Creating the Maine School Building Authority,” with proposed amendment identified as Committee Amendment “A” together with “Resolve, Proposing an Amendment to the Constitution to Exempt Rental Agreements with the Maine School Building Authority from the Limitations of Municipal Indebtedness,” House Paper No. 1082, Legislative Document No. 695, and proposed amendments identified as Committee Amendment “A” and House Amendment “A.”
Question 1
The Bill “An Act Creating the Maine School Building Authority” if enacted with or without amendment, as proposed, would not pledge the credit of the State contrary to the Constitution.
Question 2
If the “Resolve, Proposing an Amendment to the Constitution to Exempt Rental Agreements with the Maine School Building Authority from the Limitations of Municipal Indebtedness,” with or without amendment, as proposed, be adopted by the people, the provisions of Legislative Document No. 824, if enacted, with or without amendment, as proposed, will not violate the constitutional provisions relative to limitation of municipal indebtedness.
If the resolve be not adopted by the people, the provisions of Legislative Document No. 824, if enacted, with or without amendment, as proposed, will not violate the provisions of the Constitution relative to limitation on municipal indebtedness. Any action taken under the act, however, would violate the provisions of the Constitution if the municipal indebtedness in any particular instance or instances is thereby increased beyond constitutional debt limits. The declaration in Section 218, of the proposed act, that “all rentals or other charges provided by any such contract to be paid for the lease or use of such project shall be deemed to be current operating expenses of the town or the community school district” neither controls nor determines the nature of the liability created by the lease. So long as Section 15 of Article IX of the Constitution (as now codified) remains unchanged, the liabilities of municipalities must be determined in accordance with the principles declared in Reynolds v. City of Waterville, 92 Me. 292; and in Opinions of the Justices, 99 Me. 515, and 146 Me. 183, 79 Atl. (2nd) 753.
Dated at Augusta, Maine, this tenth day of May, 1951.
Respectfully submitted: