Michigan State Chamber of Commerce v. State

417 Mich. 409
Michigan Supreme Court·Decided October 17, 1983·No. Docket No. 70862·Published·Cited by 3 cases

Opinions

Boyle, J.

The issues of law in this case, as stipulated by the parties and as certified by the Ingham Circuit Court, are as follows:

"1. Where (a) an initiative proposal to amend a statute is placed on the ballot by petition of the electorate, pursuant to Const 1963, art 2, § 9 and (b) the Legislature enacts an amendment to the same statute, subject to Const 1963, art 4, § 34 after the initiative petitions have been filed and (c) there are conflicting provisions in both measures and (d) both measures are approved by the electors at the same election and (e) the legislative proposal receives a higher number of affirmative votes;
"(1) Does either the initiative or legislative proposal prevail in its entirety thereby rendering the other proposal inoperative; or
"(2) Where the provisions of the initiative proposal and the legislative proposal conflict, do the conflicting provisions of one proposal prevail thereby rendering conflicting provisions of the other inoperative; and
"(3) If the conflicting provisions of one proposal prevail over the other, must meaning and effect be given to the remaining provisions of both proposals?
"2. After petitions for an initiative proposal to amend a statute have been filed pursuant to Const 1963, art 2, §9, may the Legislature enact a statute, subject to referendum, to amend the same law to be voted on at the same election as the initiative proposal, and assuming an answer in the negative, does the decision of the courts in Michigan State Chamber of Commerce, et al v Secretary of State, et al, Michigan Court of Appeals No. 65841, * * * [lv den 414 Mich 913 (1982)] constitute a bar to a decision on such question?”

[414] We rephrase the second certified question as follows: was the legislative proposal properly submitted on the general election ballot; if it was not, can this Court consider the question in light of the previous decision of the Court of Appeals in Michigan State Chamber of Commerce; and, if this Court can consider the question and finds an impropriety, is invalidation of the legislative proposal permitted?

We answer as follows:

(1) The legislative proposal prevails over the initiative proposal in its entirety, having received the highest number of affirmative votes on the general election ballot; and

(2) The Legislature may enact a statute pursuant to Const 1963, art 4, § 34 after petitions for an initiative proposal have been filed; Proposal H was properly submitted on the ballot; and, therefore, we need not reach the issue whether the decision of the Court of Appeals in Michigan State Chamber of Commerce constitutes a bar to a decision on the question.

The matter was submitted to this Court upon a stipulated statement of facts certified by the Ingham Circuit Court. The instant controversy arose out of various attempts to reform the law governing utility rate regulation, MCL 460.6 et seq.; MSA 22.13(6) et seq. The initial proposal, Proposal D, was the result of a petition brought by registered voters pursuant to art 2, § 9, filed with the Secretary of State on May 26, 1982, certified by the Board of State Canvassers, submitted to both houses of the Legislature on July 22, 1982, and placed on the November 2, 1982, general election ballot.

After the initiative petition was filed with the Secretary of State, but before the petition was [415] received by the Legislature, a second proposal, Proposal H,1 was passed by the Legislature. This proposal, which was signed by the Governor on July 3, 1982, was explicitly made subject by the Legislature to voter approval at the November 2, 1982, general election, pursuant to Const 1963, art 4, § 34. A challenge was raised to the submission of Proposal H to the voters on the November ballot, which resulted in the Secretary of State’s refusal to place it on the ballot and in the commencement of litigation in the Court of Appeals. Michigan State Chamber of Commerce, supra. On September 3, 1982, the Court of Appeals ordered the Secretary of State to place Proposal H on the November ballot, and subsequently this Court denied leave to appeal. 414 Mich 913 (1982). Both proposals were placed on the ballot, and both received more affirmative votes than negative votes, with Proposal H receiving 197,939 more affirmative votes than Proposal D.2

On November 19, 1982, plaintiffs commenced the instant litigation in the Ingham Circuit Court and received a temporary restraining order which remains in effect at the present time. At the joint request of the parties, the Governor urged this Court to order the lower court to certify these questions directly to this Court, which this Court did on January 19, 1983. 417 Mich 1101 (1983).

A third proposal for utility rate regulation reform, 1982 PA 304, was passed by the Legislature, and became immediately effective when signed by the Governor on October 13,1982._

[416] The following chronology of relevant dates is necessary to a full understanding of the issues presented:

May 26, 1982 Proposal D initiative petitions filed with the Secretary of State.
July 3, 1982 Proposal H signed by the Governor, effective upon approval by the voters at the November 2, 1982, general election.
July 22, 1982 Proposal D initiative petitions certified by the Board of State Canvassers and Proposal D delivered to the Legislature.
October 13, 1982 1982 PA 304 signed by the Governor, effective immediately.
November 2, 1982 General election; Proposals D and H are approved by the voters; Proposal H receives the highest affirmative vote.
November 22, 1982 The Board of State Canvassers certifies that both Proposals D and H passed; Proposal H becomes effective (by its terms).
December 3, 1982 Proposal D becomes effective.

Before the certified questions themselves are addressed, a brief discussion of the substance of the various proposals and of the recent history of utility rate regulation is in order.

In response to the energy crisis of the 1970’s, the Legislature enacted 1972 PA 300, which permitted utility companies to unilaterally adjust the cost of fuel to utility consumers during the course of the year without having to await the general rate hearing before the Public Service Commission. The adjustment clause mechanism was strongly criticized by various consumer groups. In this milieu [417] the three proposals at issue in this litigation were drafted.

The key features of each proposal are as follows:

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Michigan State Chamber of Commerce v. State, 417 Mich. 409 (Mich. 1983).

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Related

People v. Broden
382 N.W.2d 799 (Michigan Court of Appeals, 1985)
In Re Proposals D & H
339 N.W.2d 848 (Michigan Supreme Court, 1983)