Our Lady of Victory Catholic Church and Our Lady of Victory Preschool v. DHS

153 A.3d 1124, 2016 Pa. Commw. LEXIS 460
CourtCommonwealth Court of Pennsylvania
DecidedOctober 31, 2016
Docket294 C.D. 2016
StatusPublished
Cited by5 cases

This text of 153 A.3d 1124 (Our Lady of Victory Catholic Church and Our Lady of Victory Preschool v. DHS) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Our Lady of Victory Catholic Church and Our Lady of Victory Preschool v. DHS, 153 A.3d 1124, 2016 Pa. Commw. LEXIS 460 (Pa. Ct. App. 2016).

Opinion

OPINION BY

SENIOR JUDGE COLINS

This matter is a petition for review filed by Our Lady of Victory Catholic Church (Petitioner) 1 appealing a final order of the Department of Human Services (Departs ment) upholding the dismissal of Petitioner’s appeal from an order directing it to cease and desist operating an uncertified child care facility. For the reasons set forth below, we affirm the order insofar as it ruled that the Department had authority to issue the cease and desist order, but vacate the dismissal of Petitioner’s religious liberty defense to the cease and desist order and remand this matter for a hearing limited to that defense.

Petitioner, a nonprofit religious organization, owns and operates a preschool, Our Lady of Victory Preschool (Preschool), in State College, Pennsylvania. Department regulations require that any person or entity operating a child day care center that provides care for seven or more children unrelated to the operator must obtain a certificate of compliance before commencing operations. 55 Pa. Code §§ 3270.3(c), 3270.11(a); see also 55 Pa. Code § 3270.4. On July 17, 2015, the Department sent Petitioner a letter notifying it that the Department had determined that Petitioner was operating a child day care center providing care to 26 children without a certificate of compliance, in violation of Department regulations, and ordering Petitioner to cease and desist operating Preschool without a certificate of compliance. (Administrative Law Judge (ALJ) Adjudication Findings of Fact (F.F.) ¶ 2, Reproduced Record (R.R.) at 19a; Cease and Desist Order, R.R. at 13a.)

Petitioner timely appealed the cease and desist order. Petitioner did not dispute that it had not obtained or applied for a certificate of compliance to operate Preschool and did not dispute that Preschool constitutes a child day care center providing care for seven or more children. (ALJ Adjudication at 4, R.R. at 21a; Petitioner’s Appeal of Cease and Desist Order, R.R. at 8a-10a.) Rather, Petitioner challenged the cease and desist order on the grounds 1) that the Department lacks authority to issue cease and desist orders to enforce its regulations governing nonprofit child day care centers and 2) that requiring a certificate of compliance for Preschool, which Petitioner contends is part of its religious ministry, violates Petitioner’s religious freedom in violation of the First Amendment to the United States Constitution, Article 1, Section 3 of the Pennsylvania Constitution and Pennsylvania’s Religious *1127 Freedom Protection Act. 2 (Petitioner’s Appeal of Cease and Desist Order, R.R. at 8a-10a.) On August 19, 2015, the Department’s Bureau of Hearings and Appeals (BHA) issued a rule to show cause why Petitioner’s appeal should not be dismissed as legally insufficient and a telephonic, non-evidentiary hearing was held by an ALJ. (ALJ Adjudication F.F. ¶ 5, R.R. at 19a; Hearing Transcript (H.T.), R.R. at 35a-60a.) At this hearing, Petitioner and the Department fully argued the question of whether the Department has authority to issue a cease and desist order to a nonprofit child day care provider for failure to obtain a certificate of compliance. (H.T. at 9-19, R.R. at 43a-53a.) Counsel for Petitioner, however, asserted that he was unaware from BHA’s rule to show cause that Petitioner’s religious liberty defense was to be addressed at the telephonic hearing and stated that he was therefore not in a position to argue that issue. (Id. at 15, 19-24, R.R. at 49a, 53a-58a.) Counsel for Petitioner requested that a further hearing on the merits be held for argument and introduction of evidence on Petitioner’s religious liberty defense. (Id. at 22-24, R.R. at 56a-58a.)

Following the telephonic hearing, the ALJ issued a proposed adjudication recommending dismissal of Petitioner’s appeal. The ALJ rejected Petitioner’s claims that the Department lacked authority to issue a cease and desist order on the ground that the Department’s statutory supervisory authority over nonprofit child care facilities and its regulations give the Department implicit power to issue a cease and desist order. (ALJ Adjudication at 5, R.R. at 22a.) The ALJ also stated that if the Department lacked authority to issue cease and desist orders, BHA would lack jurisdiction to hear an appeal of a cease and desist order because the Department’s regulations “do not explicitly allow for an appeal of a cease and desist order.” (Id. at 4-5, R.R. at 21a-22a.) The ALJ rejected Petitioner’s religious freedom claims as premature because Petitioner had not applied for a certificate of compliance and also on the ground that Petitioner had not shown that the Department’s regulations on their face infringed its religious freedom. (Id. at 5-6, R.R. at 22a-23a.) On December 30, 2015, BHA issued an order adopting the ALJ’s proposed adjudication. (BHA Order, R.R. at 16a.) Petitioner filed a request for reconsideration by the Secretary of the Department on the questions of whether the Department has authority to issue cease and desist orders and whether BHA has jurisdiction to hear appeals of cease and desist orders. The Secretary granted reconsideration, but upheld the BHA order dismissing Petitioner’s appeal “for the reasons stated by the Bureau of Hearings and Appeals.” (R.R. at 33a.)

In this appeal, 3 . Petitioner argues that the Department lacked authority to issue the cease and desist order and that the dismissal of its appeal without an evi-dentiary hearing was error. We address each of these issues in turn.

*1128 The Department’s Authority to Issue the Cease and Desist Order

Article IX of the Human Services Code (formerly the Public Welfare Code), 4 governs the Department’s authority to regulate nonprofit child day care centers, including those run by religious organizations. Section 902 provides that the Department “shall have supervision over ... [a]ll children’s institutions within this Commonwealth,” and “children’s institutions” are defined as including “any incorporated or unincorporated organization, society, corporation or agency, public or private, which may receive or care for children,” other than family child care homes and for-profit child care facilities governed by Article X of the Human Services Code. 62 P.S. §§ 901-902. Section 911 of the Human Services Code provides:

(a) The department shall have the power, and its duty shall be:
(1) To make and enforce rules and regulations for a visitation, examination and inspection of all supervised institutions and said visitation, examination or inspection may occur both before and after the beginning of operation of the supervised facility.
(2) To visit and inspect, at least once in each year, all state and supervised institutions; to inquire and examine into their methods of instruction, discipline, detention, care or treatment, ...

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Cite This Page — Counsel Stack

Bluebook (online)
153 A.3d 1124, 2016 Pa. Commw. LEXIS 460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/our-lady-of-victory-catholic-church-and-our-lady-of-victory-preschool-v-pacommwct-2016.