N.C. State Bd. of Educ. v. State

814 S.E.2d 54, 371 N.C. 149
Supreme Court of North Carolina·Decided June 8, 2018·No. 110PA16-2·Published·Cited by 7 cases

Opinions

MORGAN, Justice.

**150*56This appeal arises from proceedings instituted by the State Board of Education (the Board) seeking a declaratory ruling that laws requiring the Board to submit the rules and regulations it proposes to a statutorily created committee for review and approval are unconstitutional. We determine that the General Assembly lawfully delegated authority to the **151Rules Review Commission (the Commission) to review rules adopted by the Board. Therefore, we affirm the opinion of the Court of Appeals.

The Board's complaint listed seven challenges to the Commission's interpretation and application of N.C.G.S. § 150B-2(1a) (definition of "Agency") to the Board. The complaint alleged two as-applied challenges to the Commission's interpretation and application of N.C.G.S. § 150B-2(1a), one joint as-applied and facial challenge regarding the application of the Administrative Procedure Act (the APA), and four facial challenges to the Commission's enabling legislation. The complaint asserted that since the establishment of the Commission in 1986, the Commission "has objected to or modified every rule adopted by the Board and submitted to the [Commission] for approval." The Board claimed in its complaint that it had "declined to adopt a number of rules that it otherwise would have adopted" but for the Commission's actions and that the review process "typically takes a minimum of six months," which has "erode[d] the Board's ability to timely address critical issues facing our State in the area of education." In addition, the Board maintained that it would no longer voluntarily submit its rules to the Commission, and would instead independently deem its rules to have the force and effect of law.

On 12 January 2015, the State of North Carolina and the Commission moved to dismiss the Board's complaint. The Board voluntarily dismissed without prejudice five of its seven claims, leaving the two as-applied challenges for determination. The Board moved for summary judgment as to its remaining claims. In addition to their motion to dismiss the Board's action, the State and the Commission opposed the Board's motion for summary judgment and argued that they were entitled to summary judgment in their favor. On 2 July 2015, the trial court allowed summary judgment for the Board.

The State and the Commission appealed the trial court's summary judgment order to the North Carolina Court of Appeals. On 19 September 2017, the Court of Appeals filed a divided opinion reversing the trial court's order and remanding the matter to the trial court for entry of judgment in favor of defendants, the State and the Commission. N.C. State Bd. of Educ. v. State , --- N.C. App. ----, 805 S.E.2d 518 (2017). The majority determined that "[t]he General Assembly, by enacting laws adopting a uniform statutory scheme governing administrative procedure, including the establishment of the Commission to review administrative rules, has imposed the requirement that the Board's rules be reviewed and approved prior to becoming effective." Id. at ----, 805 S.E.2d at 529. After detailing the history surrounding the creation **152and evolution of the Board, the majority stated that the 1942 amendment to the North Carolina Constitution, which included the last substantive changes to the constitution pertaining to the Board, removed the Board's "full power to legislate" but authorized the Board to "make all needful rules and regulations in relation" to specific powers given to the Board, including the ability "generally to supervise and administer the free public school system of the State." *57Id. at ----, 805 S.E.2d at 523. The court's majority further noted that the 1942 amendment made the Board's exercise of its authority "wholly subject to laws enacted by the General Assembly" by stating that "[a]ll the powers enumerated in this section shall be exercised in conformity with this Constitution and subject to such laws as may be enacted ... by the General Assembly." Id. at ----, 805 S.E.2d at 527. The majority also concluded that the legislative delegation to the Commission of the review and approval process over the Board's administrative rules is exercised subject to proper limitations on the Commission's authority. Id. at ----, 805 S.E.2d at 531. Such limitations include a recognition that the "Commission's review is limited to determining whether a proposed rule" meets the four criteria listed in N.C.G.S. § 150B-21.9(a). Id. at ----, 805 S.E.2d at 531.

The Court of Appeals majority amplified this recognition by further noting that the "General Assembly has also expressly protected its legislative authority from encroachment by the Commission" via subsection 150B-21.9(a) by prohibiting the Commission from "consider[ing] questions relating to the quality or efficacy of the rule" at issue and limiting the Commission's review "to determination of the standards set forth in this subsection." Id. at ----, 805 S.E.2d at 532. Therefore, as found by the majority, the General Assembly has "restrict[ed] the Commission from providing substantive review of proposed rules." Id. at ----, 805 S.E.2d at 532. The majority observed that by allowing for judicial review of a Commission decision regarding an agency's proposed rule, "the General Assembly has provided adequate procedural safeguards" for agencies. Id. at ----, 805 S.E.2d at 532.

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N.C. State Bd. of Educ. v. State, 814 S.E.2d 54, 371 N.C. 149 (N.C. 2018).

814 S.E.2d 54 (N.C. State Bd. of Educ. v. State) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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