Lead Opinion
Plaintiff appeals by leave the Court of Appeals’ opinion in Associated Builders & Contractors v City of Lansing.
Defendant, city of Lansing, enacted аn ordinance requiring contractors working on city construction contracts to pay employees a prevailing wage. The ordinance states in relevant part:
No contract, agreement or other arrangement for construction on behalf of the City and involving mechanics and laborers, including truck drivers of the contractor and/or subcontractors, employed directly upon the site of the work, shall be approved and executed by the City unless the contractor and his or her subcontractors furnish proof and agree that such mechanics and laborers so employed shall receive at least the prevailing wages and fringe benefits for corresponding classes of mechanics and laborers, as determined by statistics compiled by the United States Department of Labor and related to the Greater Lansing area by such Department.[4 ]
Plaintiff, a trade association, filed suit against Lansing, arguing that the ordinance is unconstitutional because municipalities do not have the authority to adopt laws regulating the wages paid by third parties, even where the relevant work is done on municipal contracts paid for with municipal funds. Plaintiff relies primarily on this Court’s 1923 Lennane decision, which held that, under this state’s 1908 Constitution, thе city of Detroit could not enact an essentially analogous ordinance and related city charter provision.
The Court of Appeals panel reversed the lower court in a published, split decision.
[T]he Court’s conclusion in Lennane that this is a matter of state concern has never been overruled. Therefore . .. defendant’s powers ... do not extend to this ordinance until and unless the Supreme Court revisits its conclusion in Lennane, or the Legislature explicitly grants cities the power to adopt prevailing wage ordinances.[11 ]
This appeal followed.
STANDARD OF REVIEW
This Court reviews de novo both questions of constitutional law and a trial court’s decision on a motion for summary disposition.
ANALYSIS
We take this opportunity to overrule Lennane. Len-nane’s conception of municipal power may or may not have been well-grounded in Michigan’s 1908 Constitution and the legal landscape of the time, but it is certainly incongruent with the state of our law as reflected in our current Constitution. We therefore conclude that Lennane has no continuing viability in light of the adoption of our 1963 Constitution.
Under such general laws, the electors of each city and village shall have power to frame, adopt, and amеnd its charter,. .. and, through its regularly constituted authority, to pass all laws and ordinances relating to its municipal concerns, subject to the Constitution and general laws of this state.[13 ]
Interpreting this constitutional provision, the Len-nane Court held that the regulation of wages paid to third-party employees working on municipal construction contracts was exclusively a matter of “state,” not “municipal,” concern.
“The charter provision, the ordinance, the argument made for the city, indeed, the suit itself, reflect a popular interest in, and, we conceive, a popular misunderstanding about, the subject of home rule, so-called, in cities. There is apparent a widely spread notion that lately, in some way, cities have become possessed of greatly enlarged powers, the right to exercise which may come from mere assertion of their existence and the purpose to exercise them. Whether these powers are really inherent in the community, but their exercise formerly was restrained, or are derived from a new grant of power by the State, or may be properly ascribed to both inherent right and to a new grant, are questions which do not seem to bother very much the advocates of the doctrine that they in any event exist. On the other hand, there is expression of grave doubt whether, in the view of the law, there has been any*185 enlargement or extension of the subjects of municipal legislation and control or of the powers of cities except as those subjects and powers are specifically enumerated and designated in the Constitution itself and in the home rule act.” [16 ]
By quoting Titus at such length, the Lennane Court appears to have been posing itself a question: under the 1908 Constitution, what, exactly, are the default powers of municipalities? Do municipalities have all powers relating to local concerns that are not expressly denied, or can they wield only those рowers expressly and explicitly granted? In concluding that a municipality’s powers did not include the power to enact laws regulating the wages paid to third-party employees working on municipal construction contracts, the Len-nane Court appears to have chosen the latter answer.
This conclusion finds no support in the 1963 Constitution. Article 7, § 22 of the 1963 Constitution provides:
Under general laws the electors of each city and village shall have the power and authority to frame, adopt and amend its charter, and to amend an existing charter of the city or village heretofore granted or enacted by the legislature for the government of the city or village. Each such city and village shall have power to adopt resolutions and ordinances relating to its municipal concerns, property and government, subject to the constitution and law. No enumeration of powers granted to cities and villages in this constitution shall limit or restrict the general grant of authority conferred by this sectionl17 -1
Explaining these highlighted changes, the Address to the People states:
*186 This is a revision of Sec. 21, Article VIII, of the present [1908] constitution and reflects Michigan’s successful experience with home rule. The new language is a more positive statement of municipal powers, giving home rule cities and villages full power over their own property and government, subject to this constitutiоn and lawf[18 ]
The 1963 Constitution also contained a new provision, Article 7, § 34:
The provisions of this constitution and law concerning counties, townships, cities and villages shall be liberally construed in their favor. Powers granted to counties and townships by this constitution and by law shall include those fairly implied and not prohibited by this constitution.[19 ]
If it was ever the case, we conclude that, given the newly added language that expresses the people’s will to give municipalities even greater latitude to conduct their business, there is simply no way to read our current constitutional provisions and reach the conclusion that “there is . . . grave doubt whеther. . . there has been any enlargement or extension of the subjects of municipal legislation and control or of the powers of cities except as those subjects and powers are specifically enumerated and designated in the Constitution
But the wages paid to employees of contractors working on municipal contracts have a self-evident relationship to “municipal concerns, property, and government” if those words are even reasonably, if not liberally, construed. Those wage rates concern how a municipality acts as a market participant, spending its own money on its own projects.
Furthermore, Lennane’s holding appears to rеst on an implicit dichotomy: if something is a matter of “state concern,” it cannot also be a matter of “local concern.”
Thus, if Lennane’s holding was ever on firm constitutional ground, it no longer had sound footing after the people ratified the 1963 Constitution. We agree with the Court of Appeals majority that subsequent changes in the law have undercut Lennane’s foundations.
Nonetheless, we also agree with Court of Appeals dissent’s following assessment of the binding nature of Lennane before the instant decision:
[T]he Court’s conclusion in Lennane that this is a matter of state concern has never bеen overruled. Therefore, even if we apply a “liberal construction” to defendant’s powers, they do not extend to this ordinance until and unless the Supreme Court revisits its conclusion in Lennane, or the Legislature explicitly grants cities the power to adopt prevailing wage ordinances.[31 ]
While it is inarguable that developments over the past century have undercut the foundation upon which Lennane stood, its holding was never explicitly superseded by the ratifiers of the 1963 Constitution or by the Legislature, nor was it overruled by this Court. The Court of Appeals is bound to follow decisions by this Court except where those decisions have clearly been overruled or superseded
CONCLUSION
Lennane, whatever its merits when it was decided, has been undercut by the adoption of the 1963 Constitution. We therefore overrule Lennane. Under our Constitution, cities and villages may enact ordinances relating to “municipal concerns, property and government,” including ordinances and charter provisions regulating the wages paid to third-party employees working on municipal construсtion contracts, “subject to the constitution and law.”
The Court of Appeals erred, however, by disregarding precedent from this Court that has not been clearly overruled by the Court or superseded by subsequent legislation or constitutional amendment. “[I]t is the Supreme Court’s obligation to overrule or modify case law if it becomes obsolete, and until this Court takes such action, the Court of Appeals and all lower courts
Notes
Associated. Builders & Contractors v City of Lansing,
Attorney General ex rel Lennane v Detroit,
See Const 1963, art 7, §§ 22 and 34.
Lansing Ordinances, § 206.18a.
Lennane,
Most relеvant to our analysis, Article 7, § 22 of the 1963 Constitution provides:
Under general laws the electors of each city and village shall have the power and authority to frame, adopt and amend its charter, and to amend an existing charter of the city or village heretofore granted or enacted by the legislature for the government of the city or village. Each such city and village shall have power to adopt resolutions and ordinances relating to its municipal concerns, property and government, subject to the constitution and law. No enumeration of powers granted to cities and villages in this constitutiоn shall limit or restrict the general grant of authority conferred by this section.
MCL 117.4j. We decide this case under the Michigan Constitution, but the similar text of the Home Rule Act informs our decision. In relevant part, the Act states:
Each city may in its charter provide:
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For the exercise of all municipal powers in the management and control of municipal property and in the administration of the municipal government, whether such powers be expressly enumerated or not; for any act to advance the interests of the city, the good government and prosperity of the municipality and its inhabitants and through its regularly constituted authority to pass all laws and ordinances relating to its municipal concerns subject to the constitution and general laws of this state.
Associated Builders,
Id. at 411.
Id. It is because the panel below failed to give deference to the precedential authority of our opinions that we vacate the opinion of the Court of Appeals.
Id. at 421 (SAWYER, P.J., dissenting).
Dep’t of Transp v Tompkins,
Const 1908, art 8, § 21.
Lennane,
Kalamazoo v Titus,
Lennane,
The new language added is italicized.
2 Official Record, Constitutional Convention 1961, p 3393 (emphasis added).
Const 1963, art 7, § 34. The Address to the People for this provision explains:
This is a new section intended to direct the courts to give a liberal or broad construction to statutes and constitutional provisions concerning all local governments. Home rule cities and villages already enjoy a broad construction of their powers and it is the intention here to extend to counties and townships within the powers granted to them equivalent latitude in the interpretation of the constitution and statutes. [2 Official Record, Constitutional Convention 1961, p 3395 (emphasis added).]
Lennane,
Const 1963, art 7, § 22.
Const 1963, art 7, § 34.
Merriam-Webster’s Collegiate Dictionary (11th ed) defines “municipal” as “of, relating to, or characteristic of a municipality,” which is “a primarily urban political unit having corporate status and usu. powers of self-government.” The same dictionary defines “property” as “something owned or possessed” and defines “government” as “the act or process of governing . . . authoritative direction or control.” All three of these definitions are broad enough to encompass the conditions a municipality places in its municipality-funded construction contracts, including conditions as to what contractors on those projects pay their workers. These contracts clearly “relate to” the municipality in that they are public projects; they concern a municipality's own money and
Nothing in this opinion should be interpreted to imply that municipalities are sovereign entities with extraconstitutional powers or the ability to negate legislative action. See Const 1963, art 7, § 22 (“Each .. . city and village shall have power to adopt resolutions and ordinances relating to its municipal concerns, property and government, subject to the constitution and law”) (emphasis added).
It is somewhat difficult to parse this aspect of Lennane's holding, because the Lennane Court never explains precisely why the wages paid to third-party employees working on municipal construction contracts are matters of state concern.
Indeed, in this very area of prevailing wages, the Legislature explicitly omits municipalities from its list of affected governmental “contracting agents” in the state prevailing wage statute, MCL 408.551(c). This drafting decision strongly suggests an independent
Along with Lennane, several older cases appear to adopt this binary conception of state and local governance. See, e.g., People ex rel Bd of Detroit Park Commissions v Detroit Common Council,
Const 1963, art 7, § 34.
Thе Court of Appeals panel majority stated that “the foundation upon which Lennane stood has been rejected by our Supreme Court.” Associated Builders,
Robinson v Detroit,
Associated Builders,
Although one can determine with relative ease whether a case was overruled by this Court, we acknowledge that it is not always so easy to determine whether a case has been “clearly overruled or superseded” by intervening changes in the positive law. At one end of the spectrum are situations in which the Legislature has entirely repealed or amеnded a statute to expressly repudiate a court decision. In such situations, lower courts have the power to make decisions without being bound by prior cases that were decided under the now-repudiated previous positive law. The other end of the spectrum is harder to define; however, as it relates
“While the Court of Appeals may properly express its belief that a decision of this Court was wrongly decided or is no longer viable, that conclusion does not excuse the Court of Appeals from applying the decision to the case before it.” Boyd v W G Wade Shows,
Const 1963, art 7, § 22.
Boyd,
Const 1908, art 8, § 20.
Concurrence Opinion
(concurring in the result). I agree with the majority’s ultimate conclusion that the prevailing-wage ordinance is expressly authorized by Const 1963, art 7, § 22. I write separately to address the powers granted to municipalities by the 1963 Constitution.
Municipalities have never possessed inherent authority not expressly granted by the Constitution or laws of Michigan and do not have it today. It was not until the 1908 Constitution that municipalities were granted the power of self-governance, a concept known as “home rule.”
The 1908 Constitution required the Legislature to enact a general law for the incorporation of cities and villages:
The legislature shall provide by a general law for the incorporation of cities, and by a general law for the incorporation of villages; such general laws shall limit their rate of taxation for municipal purposes, and restrict their powers of borrowing money and contracting debts.[1 ]
Section 21 of the 1908 Constitution also provided the first “charter” provision, vesting in municipalities the power of home rule. This provision allowed municipalities to frame, adopt, and amend their chаrters, and states:
*194 Under such general laws, the electors of each city and village shall have power and authority to frame, adopt and amend its charter, and to amend an existing charter of the city or village heretofore granted or passed by the legislature for the government of the city or village and, through its regularly constituted authority, to pass all laws and ordinances relating to its municipal concerns, subject to the constitution and general laws of this state.[2 ]
The Address to the People accompanying the 1908 Constitution explained the addition of constitutional provisions pertaining to home rulе—a concept not found in prior constitutions—in detail:
The provisions herein contained are designed to meet the modern conditions affecting municipal affairs; to authorize through appropriate legislation that which has heretofore been denominated “Home Rule.”
These provisions constitute a marked advance from the present constitutional provisions relating to cities and villages by doing away with the principle of classification and with special charters, granted and subject to amendment only by the state legislature. The purpose is to invest the legislature with power to enаct into law such broad general principles relative to organization and administration as are or may be common to all cities and all villages, each city being left to frame, adopt and amend those charter provisions which have reference to their local concerns. The most prominent reasons offered for this change are that each municipality is the best judge of its local needs and the best able to provide for its local necessities; that inasmuch as special charters and their amendments are now of local origin, the state legislature will become much mоre efficient and its terms much shorter if the labor of passing upon the great mass of detail incident to municipal affairs is taken from that body and given into the hands of the people primarily interested.
*195 Under these provisions, cities and villages, as under the present [1850] constitution, will remain subject to the constitution and all the general laws of the state.[3 ]
Thus, under the 1908 Constitution, municipalities had for the first time the power to govern their own affairs. But this constitutional change did not grant municipalities inherent authority based solely on the assertion of their existence. Instead, this was a specific but limited grant of the power of home rulе that was “subject to the constitution and general laws of this state.”
The 1963 Constitution contains a similar charter provision to that found in the 1908 Constitution that specifically grants the power of home rule. The 1963 Constitution also added a provision that states, “[n]o enumеration of powers granted to cities ... in this constitution shall limit. . . the general grant of authority conferred by [Const 1963, art 7, § 22] ,”
“[Local governments] have no inherent jurisdiction to make laws or adopt regulations of government; they are governments of enumerated powers, acting by a delegated authority; so that while the State legislature may exercise such powers of government coming within a proper designation of legislative power as are not expressly or impliedly prohibited, the local authorities can exercise those only which are expressly or impliedly conferred, and subject to such regulations or restrictions as arе annexed to the grant.” [9 ]
The 1963 Constitution provided another rule of construction not found in previous constitutions that proves helpful to the disposition of this case. Article 7, § 34 of the 1963 Constitution directs that the laws and constitutional provisions relating to the specific grant of municipal powers be liberally construed:
*197 The provisions of this constitution and law concerning counties, townships, cities and villages shall be liberally construed in their favor. Powers granted to counties and townships by this constitution and by law shall include those fairly implied and not prohibited by this constitution.[10 ]
Applying this rule of construction to the present case, thе city of Lansing’s prevailing-wage ordinance survives constitutional challenge. This ordinance requires that private employers pay their employees the local prevailing wage when contracting with Lansing for municipal projects.
In sum, I agree with the majority that under the 1963 Constitution, the city of Lansing’s prevailing-wage ordinance is a valid exercise of the specific grant
Const 1908, art 8, § 21.
Official Record, Constitutional Convention 1907-1908, pp 42-43.
Const 1908, art 8, § 21.
Attorney General ex rel Lennane v Detroit,
Const 1963, art 7, § 22.
See, e.g., Const 1963, art 7, § 23 (“Any city or village may acquire . . . parks, boulevards, cemeteries, hospitals and all works which involve the public health or safety.”); Const 1963, art 7, § 24 (“Subject to this constitution, any city or village may acquire .. . public service facilities . . . .”).
See Bivens v Grand Rapids,
City of Taylor v Detroit Edison Co,
Const 1963, art 7, § 34.
Lansing Ordinances, § 206.18(a).
I also agree with the Court of Appeals’ conclusion that preemption does not apply. Neither the Minimum Wage Law, MCL 408.381 et seq., which was repealed in 2014, nor the Michigan prevailing wage act, MCL 408.551 to MCL 408.558, prohibits municipalities from setting prevailing wage rates for municipal contracts or agreements. Additionally, no state law occupies the entire field of establishing prevailing wages. See Associated Builders & Contractors v City of Lansing,
