Soap & Detergent Ass'n v. Natural Resources Commission

330 N.W.2d 346, 415 Mich. 728
CourtMichigan Supreme Court
DecidedDecember 23, 1982
Docket66789, (Calendar No. 4)
StatusPublished
Cited by79 cases

This text of 330 N.W.2d 346 (Soap & Detergent Ass'n v. Natural Resources Commission) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Soap & Detergent Ass'n v. Natural Resources Commission, 330 N.W.2d 346, 415 Mich. 728 (Mich. 1982).

Opinions

Williams, J.

I

The issue we are asked to address in this case is whether the authority to promulgate 1979 AC, R 323.1173(4), which regulates the phosphorus content permitted in cleaning agents, was lawfully delegated to the Natural Resources Commission, the head of the Department of Natural Resources.

This issue includes three subissues. First, did the Legislature pre-empt the power to "further restrict the nutrient content * * * of cleaning agents” in 1971 PA 226, or did it grant this power to the Water Resources Commission? Second, did the Governor have the authority to transfer this power to "further restrict” from the WRC to the [732]*732NRC by reason of Const 1963, art 5, § 2, and the Executive Organization Act? Third, did Executive Order No. 1976-8 in fact and in law transfer the power to "further restrict” from the WRC to the NRC, or did it reserve that power to the WRC?1

We find (1) that the Legislature properly delegated the rulemaking authority to regulate the phosphorus content of cleaning agents to the WRC; (2) that the Governor was properly vested with authority to transfer power between executive agencies; and that (3) Executive Order No. 1976-8 did transfer the challenged rulemaking power to the NRC. Therefore, 1979 AC, R 323.1173(4) is a validly promulgated rule.

II. Facts

In 1971, the Michigan Legislature passed the cleaning agents act, 1971 PA 226, MCL 323.231-323.236; MSA 3.533(301)-3.533(306), to protect water quality by restricting the content of cleaning agents. The statute prohibits the sale or use of cleaning agents which contain phosphorus in excess of 8.7% by weight expressed as elemental phosphorus. MCL 323.232; MSA 3.533(302). The statute further provides that the WRC shall promulgate rules to effectuate this statute, and that the rules "may further restrict the nutrient content and other contents of cleaning agents and water conditioners”. MCL 323.233; MSA 3.533(303).

[733]*733In 1973, the Governor transferred all the statutory powers, duties and functions of the WRC to the Department of Natural Resources. Executive Order No. 1973-2. This executive reorganization was modified in 1976: the Governor reaffirmed the transfer of the WRC’s "statutory authority, powers, duties, functions and responsibilities” to the DNR, "except that the Water Resources Commission shall continue to exercise independent authority with respect to quasi-judicial functions, rule-making, and issuance of permits and orders in the water pollution control functions, as specified in Section 2, Section 5, subsection (1) of Section 7, and subsection (b) of Section 8 of Act No. 245 of Public Acts of 1929, as amended.” Executive Order No. 1976-8 (emphasis in original). The head of the DNR is the Natural Resources Commission.

On August 26, 1977, the NRC promulgated Rule 323.1173(4), under the authority of the cleaning agents act. The rule provides:

"After October 1, 1977, a person shall not sell or distribute for use in this state a household laundry detergent which contains phosphorus in any form in excess of 0.5% by weight, expressed as elemental phosphorus.”

Appellants — a manufacturer of cleaning agents and household detergents, a manufacturer of phosphates used in some detergents and cleaning agents, and their trade association — immediately filed suit seeking preliminary and permanent injunctions against the agencies and officials responsible for the rule’s enforcement and a judgment declaring the rule void. On September 21, 1977, the Wayne Circuit Court denied the injunction. Judge Theodore R. Bohn eloquently explained that [734]*734an injunction to prevent enforcement of the phosphorus limiting rule would not maintain the status quo; each day of continued pollution would add to the destruction of Michigan’s natural resources, a ravage that may be irreversible.2

Appellants then filed an application for emergency leave to appeal to the Court of Appeals, [735]*735which was denied. The NRC rule went into effect on October 1, 1977.3

Appellants proceeded to file a motion for summary judgment in circuit court challenging the authority of the NRC to promulgate the rule. On June 6, 1979, the circuit court denied the motion. In a final judgment entered on September 17, 1979, the court upheld the rule as a lawful exercise of the NRC’s authority. This decision was appealed to the Court of Appeals.

Upon review of the record and hearing of arguments, the Court of Appeals affirmed the circuit court’s denial of appellant’s motion for summary judgment. 103 Mich App 717; 304 NW2d 267 (1981). The Court of Appeals held that the Governor intended to transfer the WRC’s authority under the cleaning agents act to the NRC, and that he was empowered to make this transfer by the Const 1963, art 5, § 2, and the Executive Organization Act, MCL 16.109; MSA 3.29(9). The Court of Appeals further found that the cleaning agents act authorizes further, more stringent restrictions on the phosphorus content of detergents below the 8.7% ceiling set by statute. 103 Mich App 731.

This Court granted leave to appeal on November 25, 1981. 412 Mich 863. Oral arguments were had before this Court on June 9, 1982.

II. Legislative Pre-emption

The threshold inquiry which we must address is whether, in enacting a maximum limitation (8.7%) on the nutrient phosphorus content in cleaning agents, the Legislature intended to preclude an administrative agency from establishing further, [736]*736more stringent standards. Clearly, if the Legislature sought to reserve to itself the regulation of the nutrient phosphorus, and therefore declined to delegate this regulatory power to any agency, subsequent challenges to the rule promulgated by the NRC become moot. It is beyond debate that the sole source of an agency’s power is the statute creating it.4 If a certain power, e.g., regulation of phosphorus content in detergents, is withheld in the statute, the agency may not act. However, our reading of the cleaning agents act fails to disclose an intent by the Legislature to retain exclusive control over phosphorus pollution.

The cleaning agents act, which seeks to regulate the content of cleaning agents in order to protect water quality, is short and specific. Section 1 set forth the relevant definitions, including:

" 'Cleaning agent’ means a laundry detergent, dish-washing compound, household cleaner, metal cleaner, degreasing compound, commercial cleaner, industrial cleaner, phosphate compound or other substance intended to be used for cleaning purposes.
" 'Nutrient’ means a substance or combination of substances that, when added to any waters of the state in sufficient quantities, provides nourishment that promotes the growth of aquatic vegetation in the waters to such densities as to interfere with or be detrimental to their use by man or by any animal, fish or plant useful to man.” MCL 323.231; MSA 3.533(301).

Section 2 of the act establishes the maximum limit of the nutrient phosphorus in cleaning agents at 8.7%.

[737]

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Bluebook (online)
330 N.W.2d 346, 415 Mich. 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/soap-detergent-assn-v-natural-resources-commission-mich-1982.