Council of Organizations & Others for Ed v. State of Michigan
Opinions
Murphy, P.J.
*130In this appeal, we are called upon to judge whether MCL 388.1752b, which allocates money from the state's general fund "to reimburse actual costs incurred by nonpublic schools in complying with a health, safety, or welfare requirement mandated by a law or administrative rule of this state," MCL 388.1752b(1), violates Const. 1963, art. 8, § 2, which addresses the topic of education and prohibits the Legislature from appropriating public monies to aid nonpublic schools. On the strength of the Michigan Supreme Court's construction of Const. 1963, art. 8, § 2, in Traverse City Sch. Dist. v. Attorney General ,
I. BACKGROUND
A. MCL 388.1752b
The statute at issue, MCL 388.1752b, was first enacted by the Legislature pursuant to
The Department of Education (DOE) is tasked with publishing "a form for reporting actual costs incurred by a nonpublic school in complying with a health, safety, or welfare requirement mandated under state law containing each health, safety, or welfare requirement mandated by a law or administrative rule of this state applicable to a nonpublic school and with a reference to each relevant provision of law or administrative *133rule for the requirement." MCL 388.1752b(2).2 And "a nonpublic school *70seeking reimbursement for actual costs incurred in complying with a health, safety, or welfare requirement under a law or administrative rule of this state" must timely submit a completed reporting form published by the DOE. *134MCL 388.1752b(3). "The superintendent shall determine the amount of funds to be paid to each nonpublic school in an amount that does not exceed the nonpublic school's actual costs in complying with a health, safety, or welfare requirement under a law or administrative rule of this state." MCL 388.1752b(4). The DOE is then directed to distribute funds to each of the nonpublic schools that timely submitted a completed form.
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Murphy, P.J.
*130In this appeal, we are called upon to judge whether MCL 388.1752b, which allocates money from the state's general fund "to reimburse actual costs incurred by nonpublic schools in complying with a health, safety, or welfare requirement mandated by a law or administrative rule of this state," MCL 388.1752b(1), violates Const. 1963, art. 8, § 2, which addresses the topic of education and prohibits the Legislature from appropriating public monies to aid nonpublic schools. On the strength of the Michigan Supreme Court's construction of Const. 1963, art. 8, § 2, in Traverse City Sch. Dist. v. Attorney General ,
I. BACKGROUND
A. MCL 388.1752b
The statute at issue, MCL 388.1752b, was first enacted by the Legislature pursuant to
The Department of Education (DOE) is tasked with publishing "a form for reporting actual costs incurred by a nonpublic school in complying with a health, safety, or welfare requirement mandated under state law containing each health, safety, or welfare requirement mandated by a law or administrative rule of this state applicable to a nonpublic school and with a reference to each relevant provision of law or administrative *133rule for the requirement." MCL 388.1752b(2).2 And "a nonpublic school *70seeking reimbursement for actual costs incurred in complying with a health, safety, or welfare requirement under a law or administrative rule of this state" must timely submit a completed reporting form published by the DOE. *134MCL 388.1752b(3). "The superintendent shall determine the amount of funds to be paid to each nonpublic school in an amount that does not exceed the nonpublic school's actual costs in complying with a health, safety, or welfare requirement under a law or administrative rule of this state." MCL 388.1752b(4). The DOE is then directed to distribute funds to each of the nonpublic schools that timely submitted a completed form.
For purposes of this section, "actual cost" means the hourly wage for the employee or employees performing a task or tasks required to comply with a health, safety, or welfare requirement under a law or administrative rule of this state identified by the department ... and is to be calculated in accordance with the form published by the department ..., which shall include a detailed itemization of costs. The nonpublic school shall not charge more than the hourly wage of its lowest-paid employee capable of performing a specific task regardless of whether that individual is available and regardless of who actually performs a specific task. Labor costs under this subsection shall be estimated and charged in increments of 15 minutes or more, with all partial time increments rounded down. When calculating costs ..., fee components shall be itemized in a manner that expresses both the hourly wage and the number of hours charged. The nonpublic school may not charge any applicable labor charge amount to cover or partially cover the cost of health or fringe benefits. A nonpublic school shall not charge any overtime wages in the calculation of labor costs.
The statute particularly identifies a few costs that qualify as "actual costs" subject to reimbursement, providing that "the actual *71cost incurred by a nonpublic school for taking daily student attendance shall be considered an actual cost in complying with a health, safety, or welfare requirement under a law or administrative *135rule of this state." MCL 388.1752b(10). Further, "[t]raining fees, inspection fees, and criminal background check fees are considered actual costs in complying with a health, safety, or welfare requirement under a law or administrative rule of this state."
B. LITIGATION IN THE COURT OF CLAIMS
The case has a fairly lengthy history in the Court of Claims, as well as in this Court. We, however, need not explore the history in any great detail, as much of it is not relevant for purposes of resolving this appeal. In March 2017, plaintiffs filed their original complaint, challenging the constitutionality of MCL 388.1752b under Const. 1963, art. 4, § 30 and Const. 1963, art. 8, § 2 and seeking various forms of equitable relief. In June 2017, plaintiffs filed a first amended complaint and later filed a second amended complaint in April 2018,3 with plaintiffs continuing to challenge the statute's constitutionality under the two constitutional provisions. Ultimately, the Court of Claims was faced with competing motions for summary disposition filed by the parties. In a written opinion and order, the Court of Claims granted plaintiffs' motion for summary disposition under MCR 2.116(C)(10) and denied defendants' motion.
The Court of Claims first rejected defendants' argument that plaintiffs lacked standing to file suit, determining that plaintiffs had an interest that was substantial and distinct from the citizenry at large, considering that the disbursement of public funds to nonpublic schools would result in a diversion of those funds away from the coffers of Michigan public schools. Turning to the substantive issue, the Court of Claims *136ruled that MCL 388.1752b violates Const. 1963, art. 8, § 2, because it authorizes the payment of public monies to aid or maintain nonpublic schools and to support the employment of persons at nonpublic schools. The Court of Claims struck down the entire statute and any and all possible disbursements no matter their nature, effectively declaring MCL 388.1752b facially unconstitutional. We shall delve into the particulars and reasoning behind the decision of the Court of Claims in our analysis. In light of the constitutional violation, the Court of Claims enjoined and restrained defendants from distributing any funds under the statute. Finally, the Court of Claims explained that, given its ruling, it was unnecessary to address plaintiffs' argument under Const. 1963, art. 4, § 30. Defendants appeal as of right.
II. ANALYSIS
A. STANDING
Defendants initially argue that plaintiffs lacked standing to bring suit, contending that they "did not demonstrate that they have a special injury, right, or substantial interest that would be detrimentally affected in a manner different from the citizenry at large, so their constitutional challenge should be dismissed." Accordingly, defendants maintain that the Court of Claims erred by denying their motion for summary disposition. We review de novo a trial court's ruling on a motion for summary disposition, as well as whether a party has standing to file suit. Groves v. Dep't of Corrections ,
In plaintiffs' amended complaint, they specifically alleged that they had standing *72under MCL 600.2041(3), MCR 2.201(B)(4), and *137Lansing Sch. Ed. Ass'n v. Lansing Bd. of Ed. ,
In Lansing Sch. Ed. Ass'n ,
Defendants, citing Mich. Ed. Ass'n v. Superintendent of Pub. Instruction ,
We hold that the standing doctrine adopted in Lee ..., and extended in later cases, such as Nat'l Wildlife ..., lacks a basis in the Michigan Constitution and is inconsistent with Michigan's historical approach to standing. Therefore, we overrule Lee and its progeny and hold that Michigan standing jurisprudence should be restored *73to a limited, prudential approach that is consistent with Michigan's long-standing historical approach to standing.
Mich. Ed. Ass'n , being a progeny of Lee , was effectively overruled by the Supreme Court in Lansing Sch. Ed. Ass'n . In sum, plaintiffs have standing under *139MCL 600.2041(3), MCR 2.201(B)(4)(a), and Lansing Schs. Ed. Ass'n , as alleged in their amended complaint. We therefore affirm the ruling of the Court of Claims on the issue of standing, albeit for different reasons. See Burise v. City of Pontiac ,
B. CONSTITUTIONALITY OF THE STATUTE
1. UNDERLYING PRINCIPLES
" 'Statutes are presumed to be constitutional, and courts have a duty to construe a statute as constitutional unless its unconstitutionality is clearly apparent.' " In re Request for Advisory Opinion Regarding Constitutionality of
With respect to whether a statutory provision is facially unconstitutional, as noted by the Court of Claims in this case, it must be established that no set of circumstances exists under which the statute would be constitutionally valid. Judicial Attorneys Ass'n v. Michigan ,
*74When reviewing and interpreting the Michigan Constitution, our objective is to effectuate the intent of the people who adopted it. In re Request for Advisory Opinion ,
2. CONST. 1963, ART. 8, § 2 (PROPOSAL C) AND TRAVERSE CITY SCH. DIST.
"Religion, morality and knowledge being necessary to good government and the happiness of mankind, schools and the means of education shall forever be encouraged." Const. 1963, art. 8, § 1. In regard to Const. 1963, art. 8, § 2, the first paragraph provides:
The legislature shall maintain and support a system of free public elementary and secondary schools as defined by law. Every school district shall provide for the education of its pupils without discrimination as to religion, creed, race, color or national origin.
Originally, this paragraph constituted the full extent of Const. 1963, art. 8, § 2. See Traverse City Sch. Dist. ,
No public monies or property shall be appropriated or paid or any public credit utilized, by the legislature or any other political subdivision or agency of the state directly or indirectly to aid or maintain any private, denominational or other nonpublic, pre-elementary, elementary, or secondary school. No payment, credit, tax benefit, exemption or deductions, tuition voucher, subsidy, grant or loan of public monies or property shall be provided, directly or indirectly, to support the attendance of any student or the employment of any person at any such nonpublic school or at any location or institution where instruction is offered *142in whole or in part to such nonpublic school students. The legislature may provide for the transportation of students to and from any school.
We initially note that in Traverse City Sch. Dist. ,
*75Importantly, with respect to the construction of Proposal C overall, the Michigan Supreme Court in Traverse City Sch. Dist. determined that its language, "read in the light of the circumstances leading up to and surrounding its adoption, and the common understanding of the words used, prohibits the purchase, with public funds, of educational services from a non-public school." Id. at 406-407,
1. Proposal C above all else prohibits state funding of purchased educational services in the nonpublic school where the hiring and control is in the hands of the nonpublic school, otherwise known as "parochiaid." ....
2. Proposal C has no prohibitory impact upon shared time instruction wherever offered provided that the ultimate and immediate control of the subject matter, the personnel and the premises are under the public school system authorities and the courses are open to all eligible *143to attend the public school, or absent such public school standards, when the shared time instruction is merely "incidental" or "casual" or non-instructional in character, subject, of course, to the issue of religious entanglement .... [8 ]
3. Proposal C does not prohibit auxiliary services and drivers training, which are general health and safety services, wherever these services are offered except in those unlikely circumstances of religious entanglement. [ Id. at 435,185 N.W.2d 9 (emphasis added).][9 ]
The Supreme Court provided the following reasoning in support of these conclusions regarding Proposal C:
The prohibitions of Proposal C have no impact upon auxiliary services. Since auxiliary services are general health and welfare measures, they have only an incidental relation to the instruction of private school children. They are related to educational instruction only in that by design and purpose they seek to provide for the physical health and safety of school children, or they treat physical and mental deficiencies of school children so that such children can learn like their normal peers. Consequently, the prohibitions of Proposal C which are keyed into prohibiting the passage of public funds into private school hands for purposes of running the private school operation are not applicable to auxiliary services which only incidentally involve the operation of educating private school children.
In addition auxiliary services are similar to shared time instruction in that private schools exercise no control *144over them. They are performed by public employees under the exclusive direction of public authorities and are given to private school children by statutory direction, not by an administrative order from a private school.
However, we must voice one caveat and that is the possibility of excessive entanglement between church and state when auxiliary services are offered at *76the private school. Since auxiliary services are general health and safety measures rather than instructional measures, the possibility of excessive involvement of the state in religious affairs is, of course, at most, minimal. [ Id. at 419-420,185 N.W.2d 9 .]
According to the Court, "it is clear that health and safety measures only incidentally benefit religion and do not constitute state support of or excessive entanglement in religion."
*1453. ADVISORY OPINION RE CONSTITUTIONALITY OF
In Advisory Opinion re Constitutionality of
In my opinion the Court reached correct conclusions in the Traverse City School District case because the services examined therein were properly classified as "incidental" to a private school's establishment and existence. Such programs as shared time and auxiliary services, to be sure, do help a private school compete in today's harsh economic climate; but, they are not "primary" elements necessary for the school's survival as an educational institution. These incidental services are useful only to an otherwise viable school and are not the type of services that flout the intent of the electorate expressed through Proposal C.
A very different situation is presented, I find, in the case of the textbooks and supplies that would be made available to private schools under [the statute]. When we speak of textbooks and supplies we are no longer describing commodities "incidental" to a school's maintenance and support. Textbooks and supplies are essential aids that constitute a "primary" feature of the educational process and a "primary" element required for any school to exist. I quote from Bond v. Ann Arbor School Dist. ,383 Mich. 693 , 702,178 N.W.2d 484 ,41 A.L.R.3d 742 (1970) :
Applying either the "necessary elements of any school's activity' test" or the "integral fundamental part of the elementary and secondary education" test, it is clear that books and school supplies are an essential part of a *77system of free public elementary and secondary schools. *146However Proposal C is to be construed, I believe that if the will of the electorate is to be respected it must be read to bar public funding for primary and essential elements of a private school's existence. [ Advisory Opinion re Constitutionality of1974 PA 242 ,394 Mich. at 48-49 ,228 N.W.2d 772 (citation omitted).]
There are two important footnotes in Advisory Opinion re Constitutionality of
*1474. DISCUSSION AND RESOLUTION
The interpretation and constitutionality of a statute present issues of law that are reviewed de novo on appeal. Hunter v. Hunter ,
Consistently with these criteria, and as observed earlier, the Supreme Court in Traverse City Sch. Dist. ,
We conclude that the language utilized by the Legislature in MCL 388.1752b is generally consistent with the construction of Const. 1963, art. 8, § 2 by the Supreme Court in Traverse City Sch. Dist. and Advisory Opinion re Constitutionality of
Reimbursement for payments made to cover criminal-background-check fees is not an anomaly. For example, MCL 388.1752b13 provides authority for reimbursement of actual costs associated with disposing of instruments containing mercury. These actual costs incurred by a nonpublic school are for the purpose of protecting the health and welfare of its students, removing a hazard that could seriously jeopardize the health of a student. Disposing of instruments containing mercury located in a nonpublic school is merely incidental to teaching and providing educational services to nonpublic school students (noninstructional in nature); it does not constitute a primary function or element necessary for a nonpublic school's existence, operation, and survival, and it does not involve or result in excessive religious entanglement.
In another example, MCL 388.1752b(2) and (9) provide authority to allocate public funds to reimburse a nonpublic school for actual costs incurred in maintaining "2 epinephrine autoinjectors" in the school as *151mandated by MCL 380.1179a(2). Such actual costs sustained by a nonpublic school are for the purpose of safeguarding the health and welfare of its students, allowing for the quick access and use of the device to treat an emergency situation involving a student who is suffering an anaphylactic reaction. Maintaining epinephrine autoinjectors in a nonpublic school is merely incidental to teaching and providing educational services to nonpublic school students (noninstructional in nature); it does not constitute a primary function or element necessary for a nonpublic school's existence, operation, and survival, and it does not involve or result in excessive religious entanglement.
We must speak to the definition of "actual cost" found in MCL 388.1752b(9), which provides, in part, that it "means the hourly wage for the employee or employees performing a task or tasks required to comply with a health, safety, or welfare requirement under a law or administrative rule of this state identified by the department...." Const. 1963, art. 8, § 2 prohibits any payment, directly or indirectly, to support "the employment of any person at *80any ... nonpublic school...." At first glance, the definition of "actual cost" appears to run afoul of Proposal C. Staying with the three examples, if an employee of a nonpublic school is tasked with preparing paperwork for submission to authorities as part of a criminal background check, tasked with locating and disposing of instruments containing mercury, or tasked with obtaining and maintaining epinephrine autoinjectors, payment of public funds to reimburse the nonpublic school for wages related to the work performed by the employee would appear to be a payment to support the employment of a nonpublic school employee. The Court of Claims rendered such a finding. However, the tasks being performed are for the health, safety, or welfare of *152schoolchildren and are merely incidental to providing educational services to the students; the tasks are noninstructional in nature. Accordingly, there is no violation of Proposal C. Our conclusion is buttressed by language in Traverse City Sch. Dist. ,
The Court of Claims posited that because the purpose of MCL 388.1752b is to reimburse nonpublic schools for the cost of actions mandated by law, the actions involved cannot be deemed incidental to the education of nonpublic school children or the operation of the school, but instead concern primary functions or elements necessary for a school's survival. We disagree. A state-law mandate on an issue concerning the health, safety, or welfare of a student almost by definition is "incidental" to teaching and providing educational services to a student. Indeed, the Supreme Court in Traverse City Sch. Dist. ,
*153Conducting criminal background checks, disposing of instruments containing mercury, and maintaining epinephrine autoinjectors, while mandatory, have nothing directly to do with teaching and educating students; these compliance actions are truly incidental to providing educational services and focus instead on a student's well-being, i.e., his or her health, safety, and welfare. Moreover, conducting criminal background checks, disposing of instruments containing mercury, and maintaining epinephrine autoinjectors are plainly not primary elements or functions necessary for a nonpublic school's operation, but are simply incidental to the school's operation. While textbooks and school supplies plainly and undoubtedly "constitute a 'primary' feature of the educational process and a 'primary' element required for any school to exist," Advisory Opinion re Constitutionality of
Additionally, the Court of Claims indicated that state or public school control over such matters as shared-time and auxiliary services is paramount to finding constitutional compliance and that MCL 388.1752b gives complete control to nonpublic schools. We disagree with this view and reasoning on two bases. First, considering the nature or character of the health, safety, and welfare laws at issue, the state, and not a nonpublic school, is effectively dictating and controlling the action or performance needed to comply with the law. Again staying with the three examples, and not foreclosing the possibility that the analysis may be different with respect to other mandates, there *154is little, if any, discretion or independent control that a nonpublic school can exercise when engaged in conducting criminal background checks, disposing of instruments containing mercury, and procuring epinephrine autoinjectors; colloquially speaking, you just do it as demanded by state statute or administrative rule. Second, the Supreme Court, as quoted earlier, stated that "Proposal C has no prohibitory impact upon shared time instruction wherever offered provided that the ultimate and immediate control of the subject matter, the personnel and the premises are under the public school system authorities and the courses are open to all eligible to attend the public school, or absent such public school standards , when the shared time instruction is merely 'incidental' or 'casual' or non-instructional in character ...." Traverse City Sch. Dist. ,
The Court of Claims determined that the "shared time" and auxiliary services approved in Traverse City Sch. Dist. do not constitute direct or indirect aid to *155nonpublic schools; rather, aid is directed solely to students, and MCL 388.1752b, in contravention of Proposal C, provides for direct aid to nonpublic schools. Assuming this is an accurate characterization, despite the fact that nonpublic school students certainly benefit from full and financially assisted compliance with health, safety, and welfare laws, the distinction does not warrant the conclusion that MCL 388.1752b violates Const. 1963, art. 8, § 2. As noted in Advisory Opinion re Constitutionality of
The partial dissent takes us to task for supposedly ignoring the plain language of Const. 1963, art. 8, § 2. Were we restricted to solely examining and contemplating the language of Const. 1963, art. 8, § 2, absent any other considerations and on a clean slate , we might very well agree with our colleague's position. But Traverse City Sch. Dist. and Advisory Opinion re Constitutionality of
In sum, with respect to the challenge under Const. 1963, art. 8, § 2, we reverse the ruling of the Court of *157Claims and remand for an examination, under the proper criteria outlined in this opinion, of each of the "actual costs" for which a nonpublic school may be reimbursed under the challenged legislation. We note that, should the Court of Claims conclude that a specific cost or action to comply with a mandate violates Const. 1963, art. 8, § 2, it may only strike or preclude reimbursement for that cost or action, without invalidating the entire statute. See MCL 8.5.15 *83Furthermore, the Court of Claims must also examine plaintiffs' contention that MCL 388.1752b violates Const. 1963, art. 4, § 30.16
Affirmed in part, reversed in part, and remanded to the Court of Claims for proceedings consistent with this opinion. We do not retain jurisdiction. We decline to award taxable costs under MCR 7.219.
Letica, J., concurred with Murphy, P.J.
Footnotes
931 N.W.2d 65 (Council of Organizations & Others for Ed v. State of Michigan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.