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David L. Wilkinson, Attorney General for the State of Utah, and Edward T

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David L. Wilkinson, Attorney General for the State of Utah, and Edward T Brigham Young University Law School BYU Law Digital Commons Utah Supreme Court Briefs 1986 David L. Wilkinson, Attorney General for the State of Utah, and Edward T. Alter Stater Treasurer for the State of Utah v. Utah Technology Finance Corporation, et al. : Brief of Appellant Utah Supreme Court Follow this and additional works at: https://digitalcommons.law.byu.edu/byu_sc1 Part of the Law Commons Original Brief Submitted to the Utah Supreme Court; digitized by the Howard W. Hunter Law Library, J. Reuben Clark Law School, Brigham Young University, Provo, Utah; machine-generated OCR, may contain errors. Alan L. Sulivan; Patrick J. O\'Hara; Van Cott, Bagley, Cornwall & McCarthy; Attorneys for Plaintiff. Rex E. Lee; Special Assistant Attorney General; Ralph L. Finlayson; Steven J. Sorenson; Assistant Attorney General. Recommended Citation Brief of Appellant, Wilkinson v. Utah Technology Finance Corporation, No. 860097.00 (Utah Supreme Court, 1986). https://digitalcommons.law.byu.edu/byu_sc1/875 This Brief of Appellant is brought to you for free and open access by BYU Law Digital Commons. It has been accepted for inclusion in Utah Supreme Court Briefs by an authorized administrator of BYU Law Digital Commons. Policies regarding these Utah briefs are available at http://digitalcommons.law.byu.edu/utah_court_briefs/policies.html. Please contact the Repository Manager at [email protected] with questions or feedback. IN THE SUPREME COURT OF THE STATE OF UTAH DAVID L. WILKINSON, Attorney General for the State of Utah, and EDWARD T. ALTER State Treasurer for the State of Utah, Plaintiffs-Appellant, Case : •• • :\ ."• ' vs. Category I 4 (Accel erar.s-:) UTAH TECHNOLOGY FINANCE CORPORATION, et al. Defendants-Respondents- BRIEF FOR PLAINTIFF-APPELLANT APPEAL FROM THE DECLARATORY JUDGK2N2 C THE THIRD JUDICIAL DISTRICT COURT REX E.. LEE UTAH Special Assistant Attorney General for the State of Utah UTAH 1722 Eye Streetf N.W- DOCUMEHf Washington, D. C. 200 06 KFU 45.9 RALPH L. FINLAYSON STEVEN J. SORENSON 59 j«a*©v> Assistant Attorneys General DOCKET NO for the State of Utah 236 State Capitol Salt Lake Cityr Utah 84114 .Alan L. Sullivan Patrick J. OfHara VAN COTT, BAGLEY, CORNWALL & MCCARTHY Attorneys for Plaintiff 50 South Main Street, Suite 1600 P.O. Box 45340 41935 Salt Lake Cityr Utah 84145 IN THE SUPREME COURT OF THE STATE OF UTAH DAVID L. WILKINSON, ] Attorney General for the ! State of Otahr and 1 EDWARD T. ALTER ] State Treasurer for ! the State of Utahf Plaintiffs-Appellant, )) Case No. 860097 vs. 1 Category 14 > (Accelerated) UTAH TECHNOLOGY FINANCE ! CORPORATION, et al. J Defendants-Respondents.) BRIEF FOR PLAINTIFF-APPELLANT APPEAL FROM THE DECLARATORY JUDGMENT OF THE THIRD JUDICIAL DISTRICT COURT REX E. LEE Special Assistant Attorney General for the State of Utah 1722 Eye Street, N.W. Washington, D. C. 200 06 RALPH L. FINLAYSON STEVEN J. SORENSON Assistant Attorneys General for the State of Utah 236 State Capitol Salt Lake City, Utah 84114 Alan L. Sullivan Patrick J. O'Hara VAN COTT, BAGLEY, CORNWALL & MCCARTHY Attorneys for Plaintiff 50 South Main Street, Suite 1600 P.O. Box 45340 Salt Lake City, Utah 84145 LIST OF ALL PARTIES UTAH TECHNOLOGY FINANCE CORPORATION, PIai ntiff-Respondent, vs. DAVID L. WILKINSON, Attorney General of Utah, Defendant-Appellant, DAVID L. WILKINSON, Attorney General for the State of Utah, and EDWARD T. ALTER State Treasurer for the State of Utah, Plaintiff s-Appellant, vs. UTAH TECHNOLOGY FINANCE CORPORATION, and its Board of Trustees, namely SYDNEY J. GREEN, EUGENE OVERFELT, WILLARD H. GARDINER, JAMES S. JARDINE, WARREN E. PUGH, ROBERT H. GARFF, and KARL N. SNOW, JR. and John Does I - X, Defendants-Respondents. TABLE OF CONTENTS Page TABLE OF AUTHORITIES ii STATEMENT OF ISSUES PRESENTED ON APPEAL 1 PROVISIONS WHOSE INTERPRETATION IS DETERMINATIVE 1 STATEMENT OF THE CASE 2 SUMMARY OF ARGUMENT 6 ARGUMENT 7 POINT I THE FEATURES OF THE UTIA WHICH AUTHORIZE PUBLIC TAXPAYER MONEY TO BE PUT AT RISK IN EQUITY INTERESTS, LOANS AND GRANTS IN DIRECT AID OF PRIVATE, START-UP BUSINESS VENTURES VIOLATE ARTICLE VI, SECTION 29 OF THE UTAH CONSTITUTION 7 A. The Plain Language of Article VI, Section 29 Controls 9 B. The History of Article VI, Section 29's Passage Is Clear 12 C. This Court's Cases Support the Appellant 22 D. A Ruling in Appellant's Favor on the Section 29 Issue Will Avoid Additional Constitutional Issues 27 E. The Legislature's Objectives Can Be Achieved through Alternative Means That Are Clearly Constitutional 30 POINT II UNDER ARTICLE VII, SECTION 16 OF THE UTAH CONSTITUTION, THE ATTORNEY GENERAL HAS THE EXCLUSIVE RIGHT TO REPRESENT UTFC 32 CONCLUSION 40 APPENDICES 43 TABLE OF AUTHORITIES CASES CITED Allen v. Tooele County. 21 Utah 2d 383, 445 P.2d 994 (1968) 24,25 Ashwander v. TVA, 297 u.s. 288 (1936) 27 Baird v. State. Utah 574 P.2d 713 (1978) 37 Berry v. Beech Aircraft Corp.P 29 Utah Adv. Rep. 3 (1985) 20,27,40 Feeney v. Commonwealth. 373 Mass. 359, 366 N. E.2d 1262 (1977) 39 Freeman v. Centerville Cityf Utah, 600 P.2d 1003 (197 9) 8 Gibson v. Florida Legislative Committeer 372 U.S. 539 (1963) 30 Hansen v. Barlow. 23 Utah 2d 47, 456 P.2d 177 (1969)... 39 Hansen v. Utah State Retirement Board. Utah, 652 P.2d 1332 (1982) 5,33 Harris v. Springville City. 27 Utah Adv. Rep. 7 (1986). 37 Hughes v. Oklahoma, 441 u.s. 322 (1979) 30 Jenkins v. Bishop, Utah, 589 p.2d 770 (1978) 9 Jenkins v. Swan. Utah, 675 P.2d 1145 (1983) 38 Jennings v. Mahoney. Utah, 4 85 P.2d 1404 (1971) 8 Kennecott Copper Corp^ v. Salt Lake County, Utah, 702 P.2d 451 (1985) 27,37 Lehi City v. Meiling. 87 Utah 237, 48 P.2d 530 (1935).. 23 Mai an v. Lewis. Utah, 693 P.2d 661 (1984) 27 Matheson v. Ferry. 641 P.2d 674 (1982) 41 Nebbia v. New York. 291 U.S. 502 (1934) 8 Municipal Bldg. Anth. of Iron County v. Lnwder. 23 Utah Adv. Rep. 10 (1985) 25 Nelson v. MrArthur. 38 Mich. 204 (1878) 30 -ii- N.L.R.B. v. Catholic Bishop. 440 U.S. 490 (1979) 27 Oregon Cascade Railroad Company v. Bailey. 3 Ore. 164 (1869).... 30 Oregon Railway and Navigation Company v. Oregonian Railway Company. 130 U.S. 1 (1889) 30 Rampton v. Barlow. 23 Utah 2d 383, 464 P.2d 378 (1970) 41 Revne v. Trade Comm'n.. 113 Utah 155, 192 P.2d 563 (1948) 29 Salt Lake City Firefighters v. I.A. of Firefighters, Utah 563 P.2d 786 (1977) 29 State v. Gallion. Utah, 572 P.2d 683 (1977) 29 State v. Rallas. 97 Utah 492, 94 P.2d 414 (1939) 30 Tite v. State Tax Comm'n.. 89 Utah 404, 57 P.2d 734 (1936) 29 Tribe v. Salt Lake City. Utah, 540 P.2d 499 (1975) 25 United States Trust CPt v. New Jersey, 431 U.S. 1 (1977) 30 Utah Farm Bureau Insurance Company v. Utah Insurance Guaranty Association. Utah, 564 P.2d 751 (1977) 30 Utah Housing Financing Agency v. Smart. Utah, 561 P.2d 1052 (1979) 22,24,25 Dtah State Land Board v. Utah State Finance Comm'n.. 12 Utah 2d 265, 365 P.2d 213 (1961) 22,23 Wpstern Leather & Finding Co. v. State Tax Comm'n.. 87 Utah 227, 48 P.2d 526 (1935) 29 CONSTITUTIONS Utah Constitution Article I, Section 2 28 Article V, Section 1 18,28 Article VI, Section 29 1, passim Article VII, Section 15 6,18 -iii- Article VII, Section 16 1,4,7,32, 33,34 Article XII, Section 1 28,30 STATUTES U.C.A., 1953, § 51-7-11(3) (Supp. 1985) 16 U.C.A., 1953, § 52-4-9 (1981) 39 U.C.A., 1953, § 63-60-1 through -6 (Supp. 1985) (Utah Technology and Innovation Act) 1, passim U.C.A., § 67-5-1(12) (Supp. 1985) 39 U.C.A., 1953 § 67-5-3 (Supp. 1985) 32 U.C.A., § 67-19-2(1) (Supp. 1985) 35 S. B. No. 254, 1986 General Session of the Utah Legislature 29 LEGISLATIVE RESOLUTION 1974 Utah Laws, S.J.R. No. 3 19 OTHER AUTHORITIES Bangerter, State of the State Message, Utah Senate Journal. January 13, 1986, 1986 General Session of the Forty-Sixth Legislature 26 Dun & Bradstreet Business Failure Rpcord for 1981. Dun & Bradstreet Corporation (1983) 26 Melman, The High Toch Dream Won't Come True. Inc. Aug., 1984 26 Shanklin & Ryans, Organizing for High-tech Marketing. 62 Harvard Business Review No. 6, 164 (1984) 26 Wall Street Journal, Dec. 31, 1985 26 -iv- BRIEF OP APPELLANT STATEMENT OF ISSUES PRESENTED FOR REVIEW 1. Whether the features of the UTIA which authorize UTFC to put public money at risk in aid of selected, private, start-up, high-technology business ventures violate the requirement of Article VI, Section 29 of the Utah Constitution that the Legislature shall not authorize the State to lend its credit or subscribe to stock in aid of any private enterprise? 2. Whether under Article VII, Section 16 of the Utah Constitution, the Attorney General has the exclusive right to represent UTFC? PROVISIONS WHOSE INTERPRETATION IS DETERMINATIVE Utah Constitution, Article VI, Section 29: Sec. 29. [Lending public credit forbidden.] The Legislature shall not authorize the State, or any county, city, town, township, district or other political subdivision of the State to lend its credit or subscribe to stock or bonds in aid of any railroad, telegraph or other private individual or corporate enterprise or undertaking. Utah Constitution, Article VII, Section 16: Sec. 16. [Duties of Attorney General.] The Attorney General shall be the legal adviser of the State officers, except as otherwise provided by this Constitution, and shall perform such other duties as provided by law.
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