Council of Organizations & Others for Education About Parochiaid, Inc. v. Governor

566 N.W.2d 208, 455 Mich. 557
CourtMichigan Supreme Court
DecidedJuly 30, 1997
DocketDocket 106092-106094, 106106-106111
StatusPublished
Cited by90 cases

This text of 566 N.W.2d 208 (Council of Organizations & Others for Education About Parochiaid, Inc. v. Governor) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Council of Organizations & Others for Education About Parochiaid, Inc. v. Governor, 566 N.W.2d 208, 455 Mich. 557 (Mich. 1997).

Opinions

Brickley, J.

This case concerns 1993 PA 362, the statute commonly known as the charter schools act, which authorized the creation of public school academies. The plaintiffs brought this suit to enjoin the distribution of public funds by challenging the constitutionality of the statute. Ingham Circuit Court Judge William Collette issued an opinion and order, declaring that the statute violated art 8, §§ 2 and 3 of the 1963 Michigan Constitution, and enjoined the distribu[561]*561tion of any public funds. The Court of Appeals affirmed. 216 Mich App 126; 548 NW2d 909 (1996).

i

On December 24, 1993, the Michigan Legislature passed enrolled SB 896. On January 14, 1994, Governor John Engler signed the bill into law (1993 PA 362). Act 362 amended part 6A of the School Code, MCL 380.501 et seq.) MSA 15.4501 et seq., and repealed all the sections created by 1993 PA 284.1

During the spring of 1994, Noah Webster Academy submitted an application to charter a public school academy to School District No. 3 Fractional of the Townships of Berlin and Orange. The application was accepted by the townships and the charter was authorized by the school district. During July and August of the same year, Ronald Helmer’s application to start Northlane Math and Science Academy was considered and approved by Central Michigan University. Noah Webster Academy and Northlane Math and Science Academy applied to the state for funding.

The Department of Education made a formal decision on October 17, 1994, to approve Northlane Math and Science Academy and seven other public school academies for state funding. Noah Webster was the [562]*562only applicant that was denied funding by the Department of Education because it did not meet the requirements of Act 362, as it was essentially a home-study school. Noah Webster has been operating since 1994 without funding.2

On August 18, 1994, the Council of Organizations and Others for Education About Parochiaid, Inc., two members of the State Board of Education, and others, filed suit in the Ingham Circuit Court, challenging the constitutionality of Act 362. Judge Collette dismissed the suit for lack of standing. On August 30, 1994, plaintiffs refiled the complaint, and a show cause hearing was scheduled. After several hearings, the parties filed cross-motions for summary disposition. On October 19, 1994, the trial court issued a preliminary injunction, preventing the Department of Treasury from issuing any state school aid payments to public school academies until a decision was made on the constitutionality of 1993 PA 362.

On November 1, 1994, the trial court determined that Act 362 was unconstitutional,3 finding that public school academies were not under the “immediate, [563]*563exclusive control of the state . . . .”4 The court further held that public school academies were not governed by publicly elected bodies; therefore, public school academies were not “public schools” under art 8, § 2 of the Michigan Constitution.5

Additionally, the trial court held that Act 362 divested the State Board of Education of its constitutional authority to provide “[leadership and general supervision” over public education as required by Const 1963, art 8, § 3,6 a finding that was based on a [564]*564comparison of 1993 PA 284 and 1993 PA 362. 7 Consequently, a permanent injunction was issued, prohibiting the dispersion of any state school funding.

On November 28, 1994, the Attorney General appealed in the Court of Appeals. Noah Webster, Northlane, New Branches, and CMU filed claims of appeal on November 29 and 30, respectively. The Court of Appeals, in a two-to-one decision by Judge Marilyn Kelly, affirmed the trial court’s finding that Act 362 was unconstitutional. 216 Mich App 135. The majority held that because the statute lacks a mechanism that mandates that a public body select the board of directors for the school, it does not meet the constitutional standard of Const 1963, art 8, § 2. Id. at 134-135. However, Judge O’CONNELL stated in his dissent that the majority was acting as a “super legislature,” that the majority employed an incorrect standard of review, and that the public school academy act was constitutional. Id. at 135, 160.

On December 13, 1994, the Legislature passed Act 416, which amended Act 362 by amending part 6A and establishing part 6B. The public school acad[565]*565emies currently operating in the state do so under part 6B. Many of the amendments of part 6A were made in response to the trial court’s rulings. The Legislature designed Act 416 so that, if a court found Act 362 to be constitutional, then part 6B of Act 416 would automatically repeal itself and only the provisions of 6A would apply.

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In order to determine the constitutionality of the statute, a review of its provisions is necessary. Under Act 362, a public school academy is organized as a nonprofit corporation under the Nonprofit Corporation Act. MCL 450.2101 et seq.\ MSA 21.197(101) et seq. Subsection 502(1). A public school academy is administered under the direction of a board of directors in accordance with Act 362 and the nonprofit corporation bylaws contained in the public school academy’s contract. Section 502.

To organize a public school academy, an applicant, either a person or an entity, must submit an application to an authorizing body. Act 362 contains specific information that must be included with every public school academy application. It must include at least the identification of the applicant, subsection 502(3)(a), a list of the proposed members of the board of directors or a description of the qualifications and method for appointment or election,8 and the articles of incorporation and the bylaws. The articles of incorporation are to include the names of the proposed public school academy and of the authorizing body, the purposes of the public school academy [566]*566corporation, and the proposed time that the articles of incorporation will be effective. Subsection 502(3)(c)(i)-(v). The proposed bylaws must include a copy of the governing structure of the public school academy, a copy of the education goals, curriculum to be offered, method of pupil assessment, and the admission policy,8 9 the school calendar and school day schedule, and the age or grade range of the pupils to be enrolled. Subsection 502(3)(d)(i)-(v).

Moreover, the application must include descriptions of the staff responsibilities as well as an agreement that “the public school academy will comply with the provisions of [part 6A of the School Code] and, subject to the provisions of this part, with all other state law applicable to public bodies and with federal law applicable to public bodies or school districts.” Subsection 502(3)(g). If the public school academy is authorized by a school district, there must be an assurance that the public school academy will be covered by the collective bargaining agreements that apply to other employees of the school district. Subsection 502(3)(h).

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Bluebook (online)
566 N.W.2d 208, 455 Mich. 557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/council-of-organizations-others-for-education-about-parochiaid-inc-v-mich-1997.