Council of Organizations & Others for Ed v. State of Michigan

931 N.W.2d 65, 326 Mich. App. 124
Michigan Court of Appeals·Decided October 16, 2018·No. 343801·Published·Cited by 3 cases

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 , 384 Mich. 390, 185 N.W.2d 9 (1971), and Advisory Opinion re Constitutionality of 1974 PA 242 , 394 Mich. 41, 228 N.W.2d 772 (1975), we hold that, without offending Const. 1963, art. 8, § 2, the Legislature may allocate public funds to reimburse nonpublic schools for actual costs incurred in complying with state health, safety, and welfare laws. But the reimbursement may only occur if the action or performance that must be undertaken to comply with a health, safety, or welfare mandate (1) is, at most, merely incidental to teaching and providing educational services to nonpublic school *131students (noninstructional in nature), (2) does not constitute a primary function or element necessary for a nonpublic school to exist, operate, and survive, and (3) does not involve or result in excessive religious entanglement. As we will elaborate upon later in this opinion, fitting cleanly within these criteria, as but one example, is a nonpublic school's payment to cover "criminal background check fees," *69which are identified in MCL 388.1752b(10) as reimbursable actual costs. The Court of Claims ruled, effectively, that MCL 388.1752b is unconstitutional on its face, meaning that under no set of circumstances is the statute constitutionally sound in relation to Const. 1963, art. 8, § 2. Given our example to the contrary, we reverse the ruling of the Court of Claims and remand for an examination, under the proper criteria outlined herein, of each of the "actual costs" for which a nonpublic school may be reimbursed under the challenged legislation. Furthermore, the Court of Claims, in light of its ruling, declined to address plaintiffs' contention that MCL 388.1752b also violates Const. 1963, art. 4, § 30, which provides that "[t]he assent of two-thirds of the members elected to and serving in each house of the legislature shall be required for the appropriation of public money or property for local or private purposes." This constitutional challenge must also be entertained by the Court of Claims on remand.

I. BACKGROUND

A. MCL 388.1752b

The statute at issue, MCL 388.1752b, was first enacted by the Legislature pursuant to 2016 PA 249 and made effective October 1, 2016. Pursuant to 2017 PA 108, the Legislature amended MCL 388.1752b, effective July 14, 2017, making some substantive *132changes to the statute. The amended version of the statute1 allocates general fund money "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). With respect to the Legislature's characterization of the appropriated funds, they "are for purposes related to education, are considered to be incidental to the operation of a nonpublic school, are noninstructional in character, and are intended for the public purpose of ensuring the health, safety, and welfare of the children in nonpublic schools and to reimburse nonpublic schools for costs described in this section." MCL 388.1752b(7). Additionally, the funds allocated under the statute "are not intended to aid or maintain any nonpublic school, support the attendance of any student at a nonpublic school, employ any person at a nonpublic school, support the attendance of any student at any location where instruction is offered to a nonpublic school student, or support the employment of any person at any location where instruction is offered to a nonpublic school student." MCL 388.1752b(8).

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. Id. And with respect to actual costs, MCL 388.1752b(9) provides:

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Council of Organizations & Others for Ed v. State of Michigan, 931 N.W.2d 65, 326 Mich. App. 124 (Mich. Ct. App. 2018).

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.

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