Building Materials Corp. of America v. Board of Education

53 A.3d 347, 428 Md. 572, 2012 WL 4329334, 2012 Md. LEXIS 606
CourtCourt of Appeals of Maryland
DecidedSeptember 24, 2012
DocketNo. 71
StatusPublished
Cited by23 cases

This text of 53 A.3d 347 (Building Materials Corp. of America v. Board of Education) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Building Materials Corp. of America v. Board of Education, 53 A.3d 347, 428 Md. 572, 2012 WL 4329334, 2012 Md. LEXIS 606 (Md. 2012).

Opinion

McDonald, j.

The point of contention in this case is whether a local board of education has acted within its statutory authority. For some years, the Board of Education of Baltimore County (“Board of Education”), the Appellee, has belonged to a governmental group purchasing consortium — a sort of warehouse club for government entities — which competitively bid a roofing services contract on behalf of its members. The Board of Education has relied on that contract to fulfill its needs for roofing repair services. Appellant Building Materials Corporation of America, a nationwide manufacturer of roofing materials that does business under the name GAF Materials Corporation (“GAF”), questions the Board of Education’s authority for that practice under the pertinent statutes.

A local board of education derives its powers and responsibilities from the State education law. One section of that law [576]*576requires a local school system to conduct a competitive bidding process itself for procurement but explicitly authorizes the use of intergovernmental purchasing cooperatives for the purchase of “goods and commodities” — a phrase that ordinarily would not be understood to encompass construction services. In other parts of the education law, however, the Legislature has delegated substantial authority to the Board of Public Works and the Interagency Committee on School Construction to direct and oversee local school construction financed with State funds. Those agencies have endorsed the use of intergovernmental cooperatives in regulation and have specifically approved its use by the Board of Education for the acquisition of roofing services.

The Circuit Court for Baltimore County granted summary judgment in favor of the Board of Education. We affirm that judgment. When viewed in the context of the entire education law and regulations promulgated under that law, the competitive bidding statute does not bar the Board of Education from using its membership in an intergovernmental purchasing consortium for the procurement of roofing repair services.

Background

Public School Governance and Funding

In compliance with the constitutional directive to establish a “thorough and efficient” system of public education,1 the General Assembly has created a structure for the operation and maintenance of public schools that weaves together State and local responsibilities. Local boards of education, such as the Appellee in this case, operate school systems in each county, subject to oversight by the State Board of Education. Maryland Code, Education Article (“ED”), §§ 2-205, 4-101. Despite their local focus, county boards of education are State agencies that are funded in part by the State and in part by their respective counties. Chesapeake Charter, Inc. v. Anne Arundel County Board of Education, 358 Md. 129, 136, 747 A.2d 625 (2000); ED § 5-202 [577]*577(“foundation program” for financing local public schools with a combination of State, local, and federal funds). Similarly, while public school construction is very much a local affair, it is subsidized and supervised to a significant degree by the State. ED § 5-301 et seq.

Procurement by Local School Boards

General Requirement for Competitive Bidding—ED § 5-112

While local school boards are formally State agencies and receive a substantial proportion of their funding from the State, they are not subject to the State’s general procurement law. Chesapeake Charter, supra. Other State statutes, however, control procurement by a local board. Under ED § 5-112, a local board must ordinarily follow competitive bidding procedures when procuring buildings, improvements, supplies, or equipment costing more than $25,000.2 The statute has an exception to that requirement for “contracts for goods or commodities that are awarded by ... intergovernmental purchasing organizations if the lead agency for the contract follows public bidding procedures.” ED § 5-112(a)(3) (emphasis added).

Oversight of School Construction by Board of Public Works

In regards to the construction of a particular type of building3 — a school — the State Board of Public Works (“BPW”)4 has a preeminent role. The BPW determines [578]*578which school construction projects receive State funding. ED § 5—301(c); COMAR 23.03.02.03F. If a project receives State funding, it is subject to supervision and control by the BPW. Beka Industries, Inc. v. Board of Education, 419 Md. 194, 205, 18 A.3d 890 (2011); Chesapeake Charter, 358 Md. at 140 n. 5, 747 A.2d 625. In particular, the Legislature has directed the BPW to “adopt regulations for the administration of programs [of public school construction and capital improvements]” subsidized by State funds. ED § 5-301(d)(1). Pertinent to this controversy, those regulations:

... may contain requirements for:
(iv) The approval of sites, plans, and specifications for the construction of new school buildings or the improvement of existing buildings;
(vi) Competitive bidding;
(viii) The actual construction of school buildings or their improvements;
(ix) The relative roles of different State and local governmental agencies in the planning and construction of school buildings or capital improvements;
(x) School construction and capital improvements necessary or appropriate for the proper implementation of this section;
(xi) The award of contracts by school systems; ...

ED § 5-301(d)(2); see also ED § 5-301(b) (BPW to adopt regulations on eligible and ineligible costs); § 5-301(b-1) (BPW to adopt regulations on indoor air quality for classrooms); § 4-126(c), (g) (BPW to adopt regulations governing [579]*579alternative financing arrangements for school construction). In adopting regulations, the BPW is to provide for the “maximum exercise of initiative” by county school systems to ensure that school construction meets the needs of the community and is a prudent expenditure of State funds. ED § 5-301(d)(4).

County school boards are subject to the school construction regulations adopted by the BPW. ED § 5-301(g)(1). The Legislature has directed that, in the event of a conflict between those regulations and the “authority, responsibilities, powers and duties” of a county school board (or those of certain other State and local agencies), the BPW’s regulations prevail. ED § 5—301 (g)(2).5 Moreover, the Legislature has expressly made State funding of local school construction contingent on compliance with the BPW’s regulations. ED § 5-301(h).

Interagency Committee on School Construction

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Cite This Page — Counsel Stack

Bluebook (online)
53 A.3d 347, 428 Md. 572, 2012 WL 4329334, 2012 Md. LEXIS 606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/building-materials-corp-of-america-v-board-of-education-md-2012.