Rossie v. State Rev. Dept.

395 N.W.2d 801, 133 Wis. 2d 341, 65 A.L.R. 4th 1191, 1 I.E.R. Cas. (BNA) 1048, 1986 Wisc. App. LEXIS 3814
CourtCourt of Appeals of Wisconsin
DecidedSeptember 12, 1986
Docket85-0609
StatusPublished
Cited by16 cases

This text of 395 N.W.2d 801 (Rossie v. State Rev. Dept.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rossie v. State Rev. Dept., 395 N.W.2d 801, 133 Wis. 2d 341, 65 A.L.R. 4th 1191, 1 I.E.R. Cas. (BNA) 1048, 1986 Wisc. App. LEXIS 3814 (Wis. Ct. App. 1986).

Opinion

SULLIVAN, J.

Appellants, collectively the Department of Revenue (DOR), appeal a judgment permanently enjoining the DOR from using its internal disciplinary system to enforce two DOR administrative directives that prohibit smoking in all DOR facilities. Richard Rossie, a DOR employee, cross-appeals from that portion of the judgment declaring the directives to be valid. We hold that the two directives were validly promulgated and are not “rules” for the purposes of sec. 227.01, Stats. We also hold, however, that the trial court abused its discretion in granting the injunction. Accordingly, we affirm that part of the judgment holding that the directives are valid, and we reverse those parts of the judgment holding that the DOR exceeded its legislative grant of power and enjoining enforcement of the directives through the DOR’s internal disciplinary system. 1

*345 The Clear Indoor Air Act became law in early 1984. Its pertinent parts are as follows:

101.123 Clean indoor air. (1) DEFINITIONS. In this section:
(d) “Person in charge” means the person who ultimately controls, governs or directs the activities aboard a public conveyance or within a place where smoking is regulated under this section, regardless of the person’s status as owner or lessee.
(2)REGULATION OF SMOKING, (a) Except as provided in sub. (3), no person may smoke in the following places:
10. Any enclosed, indoor area of a state, county, city, village or town building.
(3)EXCEPTIONS. The regulation of smoking in sub. (2) does not apply to the following places:
(a) Areas designated smoking areas under sub.
(4).
(4) DESIGNATION OF SMOKING AREAS, (a) A person in charge or his or her agent may designate smoking areas in the places where smoking is regulated under sub. (2) unless a fire marshal, law, ordinance or resolution prohibits smoking. Entire *346 rooms and buildings may be designated smoking areas.
(8) PENALTIES, (a) On and after April 1,1985, any person in charge or his or her agent who wilfully fails to comply with sub. (5) shall forfeit not more than $25.
(b) Sections 101.02(13)(a) and 939.61 (1) do not apply to this section.
(c) A violation of this section does not constitute negligence as a matter of law.
(9) INJUNCTION. After July 1, 1985, state or local officials or any affected party may institute an action in any court with jurisdiction to enjoin repeated violations of this section.

In September, 1984, the DOR issued the following two administrative directives:

ADMINISTRATIVE DIRECTIVE 325-1.1
Section 101.123, Wis. Stats., created by 1983 Wisconsin Act 211 (The Clean Air Act) states that except as provided in 101.123(3), “no person may smoke in any enclosed, indoor areas of a state... building.”
There will be no smoking in any areas within facilities controlled by the Department. All areas include by way of illustration and not of limitation, hallways, work area cubicles, aisles between cubicles, restrooms, private offices, reception areas, stairwells, and conference rooms.
In buildings that are owned by the state... smoking is permitted only in areas designated by the Department of Administration (generally the cafeteria/ lunch room)....
*347 [Repeated infractions (occurring beyond September 30, 1984) will result in the imposition of progressive disciplinary action.
ADMINISTRATIVE DIRECTIVE 360-1.2
The Department work rules are listed below. Violation of any of them will be considered sufficient grounds for disciplinary action ranging from reprimand to immediate discharge, depending upon the seriousness of the offense and/or the number of infractions.
Wisconsin Department of Revenue Work Rules:
All employes of the Department are prohibited from committing any of the following acts:
20. ...smoking in an area of either a State or Department of Revenue owned or controlled facility which is not designated as a smoking area.

Rossie works for the DOR in a state-owned building. He has been a DOR employee, and a pipe smoker, for eighteen years. He brought this action for declaratory judgment and injunctive relief, asserting four reasons why the DOR could not lawfully discipline him for smoking at work: (1) the two directives are “rules” under sec. 227.01, Stats., and the DOR’s failure to follow statutory rule-making procedures renders them invalid; (2) even if the directives are valid, the DOR exceeded its legislative grant of power under sec. 101.123, Stats., in issuing them; (3) enforcing sec. 101.123 against Rossie unconstitutionally denies him equál protection of the laws; and (4) sec. 101.123 unconstitutionally impairs Rossie’s right to contract with his employer.

*348 The trial court first ruled that the directives concerned the DOR’s internal management and did not affect private rights and interests. As such, they fit the exception of sec. 227.01(11), Stats., and were not “rules” under sec. 227.01(9). Thus, the DOR did not have to follow the rule-making procedures of ch. 227, Stats. The court then decided that the legislature intended the injunctive remedy of sec. 101.123(9), Stats., to be the only sanction for violating sec. 101.123 and that, consequently, the directives could not be enforced via the DOR’s internal disciplinary system. The court therefore permanently enjoined their enforcement through that system. The court did not reach Rossie’s constitutional claims.

The following four issues are before this court on appeal and cross-appeal:

(1) Whether DOR directives 325-1.1 and 360-1.2 are invalid because of the DOR’s failure to follow statutory procedures;
(2) Whether the trial court abused its discretion in enjoining the DOR’s enforcement of the directives through its internal disciplinary system;
(3) Whether sec. 101.123, Stats., deprives Rossie of equal protection of the law; and
(4) Whether sec. 101.123 unconstitutionally interferes with Rossie's right to contract.

The DOR raises the second issue; Rossie raises the others.

THE DIRECTIVES’ VALIDITY

Section 227.01(9), Stats., defines an agency rule, which must be promulgated under the procedures in ch. *349 227. According to sec. 227.01(ll)(a), however, "'[r]ule' as defined in sub. (9) does not include or mean...

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Bluebook (online)
395 N.W.2d 801, 133 Wis. 2d 341, 65 A.L.R. 4th 1191, 1 I.E.R. Cas. (BNA) 1048, 1986 Wisc. App. LEXIS 3814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rossie-v-state-rev-dept-wisctapp-1986.