Holmes v. State Officers Compensation Commission

226 N.W.2d 90, 57 Mich. App. 255, 1974 Mich. App. LEXIS 693
CourtMichigan Court of Appeals
DecidedDecember 23, 1974
DocketDocket 21918
StatusPublished
Cited by5 cases

This text of 226 N.W.2d 90 (Holmes v. State Officers Compensation Commission) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmes v. State Officers Compensation Commission, 226 N.W.2d 90, 57 Mich. App. 255, 1974 Mich. App. LEXIS 693 (Mich. Ct. App. 1974).

Opinion

Per Curiam.

Plaintiffs are state senators and they have filed a complaint for mandamus contending that the defendant State Officers Compensation Commission exceeded its authority in certain portions of the 1974 determinations transmitted on August 23, 1974 for filing pursuant to MCLA 15.216; MSA 3.255(56).

The State Officers Compensation Commission was created by constitutional amendment in 1968. Prior thereto, Const 1963, art 4, § 12 read:

"The compensation and expense allowances of the members of the legislature shall be determined by law. Changes in compensation or expense allowances shall become effective only when legislators commence their terms of office after a general election.”

As amended pursuant to House Joint Resolution AAA and ratification at a special election on August 6,1968, Const 1963, art 4, § 12 now reads:

*260 "The state officers compensation commission is created which shall determine the salaries and expense allowances of the members of the legislature, the governor, the lieutenant governor and the justices of the supreme court. The commission shall consist of 7 members appointed by the governor. The commission shall determine the salaries and expense allowances of the members of the legislature, the governor, the lieutenant governor and the justices of the supreme court which determinations shall be the salaries and expense allowances unless the legislature by concurrent resolution adopted by 2/3 of the members elected to and serving in each house of the legislature reject them. The commission shall meet each 2 years for no more than 15 session days. The legislature shall implement this section by law.”

1968 PA 357, effective September 20, 1968, being MCLA 15.211 et seq.; MSA 3.255(51) et seq., was adopted to implement Const 1963, art 4, § 12 as amended. Sections 6 and 7 of 1968 PA 357 read:

"Sec. 6. The commission shall determine the salaries and expense allowance of the governor, lieutenant governor, the justices of the supreme court and the members of the legislature and file its determinations with the clerk of the house of representatives, the secretary of the senate and the director of the department of administration not later than December 1, of each even numbered year and shall furnish copies to the governor, the lieutenant governor, justices of the supreme court and members of the legislature.
"Sec. 7. The determinations of the commission shall be effective January 1 of the year following their filing and shall be the compensation and expense allowances of the governor, lieutenant governor, justices of the supreme court and members of the legislature unless the legislature, by concurrent resolution adopted by a 2/3 vote of the members elected to and serving prior to February 1 of the year following the filing of the determinations, rejects either the entire determinations or specific determinations for specific positions. In case *261 of rejection the existing salary and expense allowances shall prevail retroactive to January 1.”

It is the constitutional provision and implementing statute that authorize the State Officers Compensation Commission to determine the salaries and expense allowances of the members of the Legislature, the Governor, the Lieutenant Governor and the Justices of the Supreme Court.

By an opinion dated January 5, 1972 the State Attorney General in response to a request from the chairman of the State Officers Compensation Commission advised the commission that the authority of the commission was limited to determining salaries and expense allowances, and did not include the authority to determine fringe benefits. The commission chairman was again advised by the State Attorney General on August 3, 1972 that the commission was powerless to provide or to establish new fringe benefits for the state officers and justices whose salaries and expenses are governed by Const 1963, art 4, § 12 as amended. However, in Part I of its 1974 determinations, the commission specifically rejected the Attorney General’s legal opinion that its authority was limited to determining salaries and expense allowances, and stated its interpretation of its power as meaning it was authorized "to determine total compensation including fringe benefits”.

This Court holds that the State Officers Compensation Commission erred in its interpretation of its authority as including the right to determine compensation including fringe benefits. We base this holding primarily on the language and history of Const 1963, art 4, § 12, as amended, quoted above.

The word "compensation” has been used historically in this state in constitutional provisions pertaining to remuneration of legislators. Const 1835, *262 art 4, § 18; Const 1850, art 4, § 15; Const 1908, art 5, § 9; and Const 1963, art 4, § 12 as originally adopted. Significantly, House Joint Resolution AAA continued the use of the word "compensation” until during considerations by the Senate the word "salaries” was substituted for the word "compensation”. 1968 Senate Journal, Vol. II, p 1543.

According to defendant commission’s legal counsel, the State Attorney General, at the time the amendment to Const 1963, art 4, § 12 was proposed and ratified, some members of the Legislature were receiving in addition to a salary and an expense allowance, hospital insurance, life insurance and retirement benefits. This Court finds the substitution of the word "salaries” for the word "compensation” persuasive on the matter of intent, especially when considered in the context that legislators were receiving fringe benefits at the time and that the word "compensation” was the word previously used in this state’s constitutions. Therefore, we hold that the constitution limits the State Officers Compensation Commission’s authority to determination of salaries and expense allowances. The use of the word "compensation” in §7 of 1968 PA 357, quoted, supra, cannot increase the commission’s authority to include determination of fringe benefits because it is elementary law that constitutional provisions are superior to statutory provisions. 1 Sands, Sutherland Statutory Construction (4th ed), § 2.01, p 13. To grant this authority to the commission by statute would be an unlawful delegation of legislative power under the doctrine of separation of powers. Const 1963, art 3, § 2.

However, it does not follow that the commission cannot consider the value of fringe benefits in deliberating on and arriving at specific determina *263 tions of salaries of members of the Legislature, the Governor, the Lieutenant Governor and the Justices of the Supreme Court. On the contrary, we hold that fringe benefits such as insurance, pensions, and official residences, are sufficiently related to the subject of salaries to be relevant and, therefore, reasonable factors in the determination of salaries even though the commission lacks authority to establish the amount and type of fringe benefits.

Next, we discuss the commission’s position on expense allowances as set forth in Part I of its 1974 determinations.

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Bluebook (online)
226 N.W.2d 90, 57 Mich. App. 255, 1974 Mich. App. LEXIS 693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-v-state-officers-compensation-commission-michctapp-1974.