Opinion No. (1996)

Oklahoma Attorney General Reports·Decided April 11, 1996·Published

Opinion

Dear Senator Hobson,

¶ 0 This office has received your request for an Attorney General Opinion in which you ask, in effect, the following questions:

1. May the Legislature constitutionally empower the Governor toextend the "hiring freeze" contemplated by the provisions of 74O.S.Supp. 1995, § 840-2.14[74-840-2.14] to public institutions of highereducation within the Oklahoma State System of Higher Education?

2. In implementing a "hiring freeze," under the provisions of74 O.S. Supp. 1995, § 840-2.14[74-840-2.14], may the Governor vest his orher cabinet secretaries with the authority to approve or denyrequests for exceptions to the hiring freeze?

I.
¶ 1 The gravamen of your first question is whether the Oklahoma Constitution prohibits the Legislature from authorizing the Governor to impose a "hiring freeze" on institutions in the Oklahoma State System of Higher Education. That system, as defined by Article XIII-A, § 1 of the Oklahoma Constitution, is composed of all institutions of higher education supported by legislative appropriations:

All institutions of higher education supported wholly or in part by direct legislative appropriations shall be integral parts of a unified system to be known as "The Oklahoma State System of Higher Education."

¶ 2 Within the Oklahoma State System of Higher Education are institutions managed and controlled by either boards of regents created by the Constitution or boards of regents or trustees created by statute.

APPLICATION OF THE HIRING FREEZE TO INSTITUTIONS GOVERNED BY CONSTITUTIONALLY CREATED BOARDS OF REGENTS
Board of Regents for the University of Oklahoma

¶ 3 Article XIII, § 8 of the Oklahoma Constitution establishes the Board of Regents for the University of Oklahoma and vests in that board the power of the government of the University:

The government of the University of Oklahoma shall be vested in the Board of Regents consisting of seven members to be appointed by the Governor by and with the advice and consent of the Senate.

Okla. Const. art. XIII, § 8 (emphasis added).

¶ 4 In Board of Regents University of Oklahoma v. Baker,638 P.2d 464 (Okla. 1981), the Oklahoma Supreme Court held that, in elevating the status of the Board of Regents "from a statutory to a constitutional entity the people intended to limit legislative control over University affairs." 638 P.2d at 467. The Board of Regents in Baker challenged a joint resolution enacted by the Legislature which directed that all State agencies, including the Board of Regents, increase the salaries of all employees by six percent for the coming fiscal year. Finding that the legislative establishment of employee raises impermissibly interfered with the Board of Regents' constitutional power over the University's general government, the Court stated:

We believe the finding by the trial court that the Legislature may fix and determine the manner in which raises are to be given to employees of the Board of Regents was erroneous. The determination of salary schedules and the compensation to be paid to the employees of the Board of Regents is an integral part of the general government of the University.

Baker, 638 P.2d at 468 (citation omitted).

¶ 5 In reaching this conclusion, the Oklahoma Supreme Court quoted with approval from a 1975 Montana case, Board of Regentsof Higher Education v. Judge, 543 P.2d 1323 (Mont. 1975). One of the legislatively imposed limits examined in Judge was a statute limiting the salary increases for university system presidents and the commissioner of higher education. Finding that such limitations indicated "a complete disregard for the Regents' constitutional power," the Judge court found that the Montana Constitution vested the board of regents with the power to determine priorities in higher education, and that one of the chief priorities is the hiring and keeping of competent personnel:

Inherent in the constitutional provision granting the Regents their power is the realization that the Board of Regents is the competent body for determining priorities in higher education. An important priority is the hiring and keeping of competent personnel. The [statutory] limitation . . . specifically denies the Regents the power to function effectively by setting its own personnel policies and determining its own priorities. The condition is, therefore, unconstitutional.

Board of Regents University of Oklahoma v. Baker,638 P.2d at 467 (quoting with approval from Judge, 543 P.2d at 1335) (emphasis added).

¶ 6 The Baker rationale has equal force in the case at hand. The provisions of 74 O.S.Supp. 1995, § 840-2.14[74-840-2.14] contain several subsections dealing with the State's management of the costs of human resources. Included within the statute is a provision authorizing the Governor to implement a hiring freeze:

As a further control of human resource costs, the Governor may declare a financial emergency or implement a freeze in hiring, by declaring this section to be in effect, provided, however, the University Hospitals Authority, including all hospitals or other institutions operated by the University Hospitals Authority, shall not be subject to the provisions of this subsection.

74 O.S.Supp. 1995, § 840-2.14[74-840-2.14](D).

¶ 7 The implementation of a hiring freeze, under this legislatively enacted provision, would directly interfere with an integral part of the general government of the University by the Regents. As in the case considered by the Montana Supreme Court in Judge, inherent in the Constitutional provisions granting the Board of Regents the power to provide for the government of the University is the Board's ability to determine priorities in higher education, and, as the Montana Supreme Court held inJudge, "[a]n important priority is the hiring and keeping of competent personnel." 543 P.2d at 1335. The hiring freeze provision of 74 O.S.Supp. 1995, § 840-2.14[74-840-2.14](D), if read to apply to institutions governed by the Board of Regents for the University of Oklahoma, would place the establishment of such priorities, by legislative direction, with the Governor, and not, as contemplated by Article XIII, § 8

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Opinion No. (1996), (Okla. Super. Ct. 1996).

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