AGO 98003.

• Court: Nebraska

Nebraska Attorney General Opinions 1998. AGO 98003. DATE: January 9, 1998SUBJECT: Constitutionality of Legislative Bill 650 Providing for Supplemental Retirement BenefitsREQUESTED BY: Senator D. Paul Hartnett, Nebraska State LegislatureWRITTEN BY: Don Stenberg, Attorney General Fredrick F. Neid, Assistant Attorney General You have inquired concerning the constitutionality of Legislative Bill 650 introduced in the 1997 legislative session. LB 650 would amend the provisions of the Nebraska State Patrol Retirement Act, Neb. Rev. Stat. §§ 81-2014 to 81-2036 (1994, Cum. Supp. 1996, and Supp. 1997), to provide supplemental retirement benefits for certain retired state patrol officers or surviving spouses in an amount equal to 3 percent for the years 1985 through 1991. From a constitutional viewpoint, an increase in retirement benefit amounts for retired public employees is viewed in the context of whether the supplemental benefit for certain retired employees would constitute special legislation in violation of Article III, § 18, of the Nebraska Constitution; and, secondly, whether the benefit increase would constitute a gratuity in violation of Article III, § 19, of the Nebraska Constitution. SPECIAL LEGISLATION Neb. Const. art. III, § 18 states in particular part: The Legislature shall not pass local or special laws in any of the following cases, that is to say: . . . . Granting to any corporation, association, or individual any special or exclusive privileges, immunity, or franchise whatever. . . . In all other cases where a general law can be made applicable, no special law shall be enacted. A legislative act constitutes special legislation under this constitutional provision if the act (1) creates an arbitrary and unreasonable method of classification or (2) creates a permanently closed class. See City of Ralston v. Balka, 247 Neb. 773, 530 N.W.2d 594 (1995); Henry v. Rockey, 246 Neb. 398, 518 N.W.2d 658 (1994). Accordingly, the first inquiry is whether the provisions of LB 650 would create an arbitrary and unreasonable method of classification. The purpose of LB 650 is to provide supplemental retirement benefits for a class of retirees under the State Patrol Retirement Act. We generally believe the classification is reasonable since the Legislature is accorded broad discretion as to the conditions of public employment and as to requirements...