THE CITY OF CLEVELAND, APPELLEE, v. THE STATE OF OHIO, APPELLANT.
No. 2018-0097
SUPREME COURT OF OHIO
September 24, 2019
2019-Ohio-3820
KENNEDY, J.
Submitted March 6, 2019. APPEAL from the Court of Appeals for Cuyahoga County, No. 105500, 2017-Ohio-8882.
NOTICE
This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.
SLIP OPINION NO. 2019-OHIO-3820
THE CITY OF CLEVELAND, APPELLEE, v. THE STATE OF OHIO, APPELLANT.
[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Cleveland v. State, Slip Opinion No. 2019-Ohio-3820.]
Municipalities—Required contract terms concerning hiring city residents—
(No. 2018-0097—Submitted March 6, 2019—Decided September 24, 2019.)
APPEAL from the Court of Appeals for Cuyahoga County, No. 105500, 2017-Ohio-8882.
KENNEDY, J.
{¶ 1} In this discretionary appeal from a judgment of the Eighth District Court of Appeals, we consider whether the enactment of
{¶ 2} The appellate court affirmed the trial court‘s order permanently enjoining enforcement of
{¶ 3} We reject that analysis.
{¶ 4} Accordingly, we reverse the judgment of the court of appeals and remand this matter to the trial court to dissolve the injunction and enter judgment in favor of appellant, the state of Ohio.
Facts and Procedural History
{¶ 5} In 2003, the Cleveland City Council found that few of the employment opportunities created by the city‘s expenditures for public improvements were going to city residents. Seeking to help alleviate unemployment and poverty in Cleveland, the city council enacted the Fannie M.
{¶ 6} The Fannie Lewis Law requires public-construction contracts in an amount of $100,000 or more to include a provision mandating that city residents perform 20 percent of the total construction work hours under the contract. Cleveland Codified Ordinances 188.01(b), 188.02(a)(1). It also requires the construction contract to specify penalties for a contractor‘s failure to comply with this contractual term. Cleveland Codified Ordinances 188.02(a)(2), 188.05. Those penalties include damages of up to 2.5 percent of the final total amount of the contract as well as the possibility of the city withholding payments, terminating the contract, or disqualifying the contractor from future bids. Cleveland Codified Ordinances 188.05(b), 188.05(c).
{¶ 7} In 2016, the General Assembly enacted what is now
(B)(1) No public authority shall require a contractor, as part of a prequalification process or for the construction of a specific public improvement or the provision of professional design services for that public improvement, to employ as laborers a certain number or percentage of individuals who reside within the defined geographic area or service area of the public authority.
(2) No public authority shall provide a bid award bonus or preference to a contractor as an incentive to employ as laborers a certain number or percentage of individuals who reside within the defined geographic area or service area of the public authority.
{¶ 8} In uncodified language, the General Assembly recognized “[t]he inalienable and fundamental right of an individual to choose where to live,” 2016 H.B. No. 180, Section 3(A), and found that “it is a matter of statewide concern to generally allow the employees working on Ohio‘s public improvement projects to choose where to live,” id. at Section 4. It declared its intent “to provide for the comfort, health, safety, and general welfare of those employees” by enacting legislation to “prohibit public authorities from requiring contractors, as a condition of accepting contracts for public improvement projects, to employ a certain number or percentage of individuals who reside in any specific area of the state.” Id.
{¶ 9} The city of Cleveland brought this action seeking a temporary restraining order, injunctive relief, and a judgment declaring
{¶ 10} The trial court permanently enjoined enforcement of
{¶ 11} The Eighth District Court of Appeals affirmed, holding that ”
Positions of the Parties
{¶ 12} On appeal to this court, the state contends that the General Assembly exercised the power granted by
{¶ 13} The city asserts that
{¶ 14} We accepted two propositions of law for review:
(I)
R.C. 9.75 is a valid exercise of authority underArticle II, Section 34 , because it provides for the general welfare of employees by protecting them from local preferences. Thus, no home-rule analysis is needed.(II)
R.C. 9.75 satisfies home rule. Cleveland‘s ordinance is an exercise of police power designed to serve general-welfare interests by shifting work to local residents. The challenged law is a general law that counteracts the significant extraterritorial effectsresidency quotas have on Ohioans living outside the relevant local jurisdiction.
Our resolution of the first proposition of law makes it unnecessary to decide the second, and we decline to do so.
Law and Analysis
Standard of Review
{¶ 15} A statute cannot be enjoined unless it is unconstitutional. Toledo v. State, 154 Ohio St.3d 41, 2018-Ohio-2358, 110 N.E.3d 1257, ¶ 17. The power to enjoin a statute is “further ‘circumscribed by the rule[s] that laws are entitled to a strong presumption of constitutionality and that a party challenging the constitutionality of a law bears the burden of proving that the law is unconstitutional beyond a reasonable doubt.’ ” (Brackets added in Toledo.) Id. at ¶ 18, quoting Yajnik v. Akron Dept. of Health, Hous. Div., 101 Ohio St.3d 106, 2004-Ohio-357, 802 N.E.2d 632, ¶ 16. The determination whether a statute or ordinance is constitutional is a question of law that we review de novo. Crutchfield Corp. v. Testa, 151 Ohio St.3d 278, 2016-Ohio-7760, 88 N.E.3d 900, ¶ 16; Toledo, Columbus & Ohio River RR. Co. v. Miller, 108 Ohio St. 388, 140 N.E. 617, paragraph two of the syllabus (1923).
Constitutional Construction
{¶ 16} The purpose of our written constitution is to define and limit the powers of government and secure the rights of the people. It controls as written unless changed by the people themselves through the amendment procedures established by
Article II, Section 34
{¶ 18} Because the General Assembly is vested with the legislative power of this state, it may enact any law that is not in conflict with the Ohio or United States Constitutions. Toledo, 154 Ohio St.3d 41, 2018-Ohio-2358, 110 N.E.3d 1257, at ¶ 17. Additionally,
{¶ 19} What is now Article II, Section 34 was initially introduced as Proposal No. 122, relating “to employment of women, children and persons engaged in hazardous employment.” 1 Proceedings and Debates of the Constitutional Convention of the State of Ohio 106 (1912). See generally Rocky River v. State Emp. Relations Bd., 43 Ohio St.3d 1, 14-15, 539 N.E.2d 103 (1989) (providing a history of the debates regarding Article II, Section 34). On being reported out of the committee on labor, the amended proposal addressed “all employes.” 1 Proceedings and Debates at 755. The convention adopted Proposal No. 122, more broadly titled “Welfare of employees,” by a vote of 96 yeas and 5 nays. 2 Proceedings and Debates at 1786. Following its approval by the people of Ohio, the legislative authority to address the welfare of Ohio‘s working people is now enshrined in our Constitution as Article II, Section 34.
{¶ 20} We have described the language used in Section 34 as “so clear and unequivocal that resort to secondary sources, such as the constitutional debates, is actually unnecessary. * * * [I]t is the duty of courts to enforce the provision as written.” Rocky River at 15.
{¶ 21} In giving undefined words in the Constitution their usual, normal, or customary meaning, we rely on their dictionary definitions. E.g., State v. Carswell, 114 Ohio St.3d 210, 2007-Ohio-3723, 871 N.E.2d 547, ¶ 12; State ex rel. King v. Summit Cty. Council, 99 Ohio St.3d 172, 2003-Ohio-3050, 789 N.E.2d 1108, ¶ 35-36; State ex rel. Lake Cty. Bd. of Commrs. v. Zupancic, 62 Ohio St.3d 297, 300-301, 581 N.E.2d 1086 (1991); State ex rel. Saxbe v. Brand, 176 Ohio St. 44, 46-47, 197 N.E.2d 328 (1964); accord People v. Rea, 500 Mich. 422, 428, 902 N.W.2d 362 (2017); Venice HMA, L.L.C. v. Sarasota Cty., 228 So.3d 76, 81 (Fla.2017);
{¶ 22} The 1911 edition of Webster‘s New International Dictionary (1911) defines “comfort” to mean “[s]trengthening aid,” “[a]ssistance; relief: succor; support,” and “[s]tate or feeling of having relief, cheer, or consolation; specif., contented enjoyment in physical well-being, free from want or anxiety; mental ease or satisfaction or material well-being; freedom from pain, want, or anxiety.” Id. at 446. The same dictionary defines “welfare” as “[s]tate of faring, or doing, well; state or condition in regard to well-being; esp., condition of health, happiness, prosperity, or the like * * *.” These meanings persist today. See Webster‘s Third New International Dictionary 454, 2594 (2002) (defining “comfort” and “welfare“).
{¶ 23} The authority vested in the General Assembly by Article II, Section 34 to pass laws advancing employees’ comfort and general welfare therefore includes laws providing for the assistance, support, well-being, and prosperity of Ohio‘s working people. Because the language of Section 34 is plain and unambiguous, we may not resort to other forms of constitutional interpretation—arguments concerning the structure of the Constitution, canons of construction such as the doctrine of ejusdem generis and the rule against superfluities, and the historical record available—that are used when a provision‘s meaning is unclear.
{¶ 24} We reject the contention that authority to provide for the comfort and general welfare of employees is limited to regulating the workplace environment or workplace conditions and hazards. We must give effect to the broader language the framers used, not narrow it under the guise of constitutional construction. And tellingly, it has long been recognized that a constitutional grant of authority to provide for the “general welfare” represents a broad grant of discretion to the legislature. See, e.g., Agency for Internatl. Dev. v. Alliance for Open Soc. Internatl., Inc., 570 U.S. 205, 213, 133 S.Ct. 2321, 186 L.Ed.2d 398 (2013) (explaining that
{¶ 25} We understand that the authority to legislate for the comfort and general welfare of employees may overlap with other powers granted to the General Assembly in Section 34 and elsewhere in the Constitution. That does not render those other provisions meaningless. Instead, the words the framers deliberately chose remove any doubt that in addition to providing for employees’ comfort and general welfare, the General Assembly also has the specific authority to pass laws regulating wages, hours, health, and safety—as well as to create a workers’ compensation scheme (which relates to employee health, hours, and wages) and to set hours for work on public-work projects (which implicates the authority to fix and regulate the hours of labor). See Ali, 552 U.S. at 226, 128 S.Ct. 831, 169 L.Ed.2d 680 (unnecessary examples may be inserted out of an abundance of caution).
{¶ 26} We also recognize that the plain meaning of Section 34 permits the General Assembly to advance the general welfare of employees notwithstanding other protections secured by the Bill of Rights or the Home Rule Amendment. Section 34 states that “no other provision of the constitution shall impair or limit this power.” The framers were aware of the Bill of Rights, which predated the 1912 Constitution, as well as the home-rule provisions adopted at the 1912 convention, yet they nonetheless decided that the powers granted in Section 34 would override those other provisions. “[W]e must not ignore the words of our Constitution * * * in order to reach a result which we believe to be desirable in this particular case.
Caselaw Construing Article II, Section 34
{¶ 27} In more than a century since the adoption of Section 34, we have never suggested that its language is somehow ambiguous, unclear, or limited. Rather, we have explained that Article II, Section 34 of the Ohio Constitution is “a broad grant of authority to the General Assembly” to fix the hours of labor, establish a minimum wage, and provide for the comfort, health, safety, and general welfare of all employees. (Emphasis sic.) Am. Assn. of Univ. Professors, Cent. State Univ. Chapter v. Cent. State Univ., 87 Ohio St.3d 55, 61, 717 N.E.2d 286 (1999).
{¶ 28} Based on this constitutional grant of authority, we have upheld statutes that limited the number of consecutive hours that city firefighters could work, State ex rel. Strain v. Houston, 138 Ohio St. 203, 210, 34 N.E.2d 219 (1941), compelled employers and employees to respect a day of rest through Sunday closing laws, State v. Kidd, 167 Ohio St. 521, 527, 150 N.E.2d 413 (1958), and increased teaching hours at state universities, Am. Assn. of Univ. Professors at 61.
{¶ 29} We have also sustained laws that regulate the conditions of employment, including what minimum wage will be paid, Strain v. Southerton, 148 Ohio St. 153, 74 N.E.2d 69 (1947), what safety equipment must be used, Akron & Barberton Belt RR. Co. v. Pub. Util. Comm., 148 Ohio St. 282, 286, 74 N.E.2d 256 (1947) (cabooses), and what benefits the employee will receive, State ex rel. Bd. of Trustees of Police & Firemen‘s Pension Fund v. Bd. of Trustees of Police Relief & Pension Fund of Martins Ferry, 12 Ohio St.2d 105, 107, 233 N.E.2d 135 (1967) (state police and firefighter disability and pension fund); State ex rel. Mun. Constr. Equip. Operators’ Labor Council v. Cleveland, 114 Ohio St.3d 183, 2007-Ohio-3831, 870 N.E.2d 1174, ¶ 78 (statutory sick-leave benefits).
{¶ 31} And this court has consistently recognized that if a statute is enacted pursuant to Article II, Section 34, then it is not limited by the Home Rule Amendment‘s reservation of all powers of local self-government to municipalities. E.g., Lima at ¶ 1; Mun. Constr. Equip. Operators’ Labor Council at ¶ 78; Rocky River at paragraph two of the syllabus.
R.C. 9.75 and the Fannie Lewis Law
{¶ 32}
{¶ 33} The Ohio Constitution entrusts the General Assembly with the power to pass laws fixing the hours of labor, establishing a minimum wage, and providing for the comfort, health, safety, and general welfare of all employees. Necessarily within that power is the authority to regulate public-improvement contracts that impose terms directly affecting the employment of Ohio workers, including city-specific requirements for hours of work, minimum wages, or health and safety protections. And Section 34 also authorizes the General Assembly to
{¶ 34} Contrary to the appellate court‘s conclusion, the General Assembly has not acted only to restrict the city of Cleveland‘s powers of local self-government over contracting. The Fannie Lewis Law does not simply set forth commercial terms on which the city is willing to bargain with contractors. Rather, the ordinance regulates the employment of workers hired under public-works contracts by requiring those contracts to exact binding promises dictating the eligibility of a worker to be hired on a construction project. By reserving work for Cleveland‘s residents, the Fannie Lewis Law directly impacts hiring, the most basic condition of employment, for workers on public-improvement projects. In doing so, the city of Cleveland has legislated within a field subject to regulation by the General Assembly pursuant to Article II, Section 34.
{¶ 35} Further,
{¶ 37} The city contends that “a contractor under the Fannie Lewis Law is free to hire whomever it wants,” because the maximum penalty for failing to give Cleveland residents 20 percent of the project‘s work hours is 2.5 percent of the value of the contract. But another possible penalty is disqualification from bidding on future city contracts. In any case, the question presented in this case is whether Article II, Section 34 authorizes the General Assembly to regulate public-works contracts that subject Ohio‘s workers to residency preferences or restrictions. And the answer to that question is necessarily the same, regardless of the size of the local-hiring quota or the penalty imposed for failing to meet it—the difference between a 20 percent hiring quota and a 100 percent hiring quota is not one of kind but of degree.
{¶ 38} Pursuant to
{¶ 39} Accordingly,
Conclusion
{¶ 40} It is a fundamental precept of our tripartite form of state government that the General Assembly is the ultimate arbiter of public policy. Kaminski v. Metal & Wire Prods. Co., 125 Ohio St.3d 250, 2010-Ohio-1027, 927 N.E.2d 1066, at ¶ 59. Our role “in reviewing legislative enactments is limited to interpreting the meaning of statutory provisions and determining whether they are in accord with the federal and state Constitutions.” Toledo, 154 Ohio St.3d 41, 2018-Ohio-2358, 110 N.E.3d 1257, at ¶ 31. Questioning the wisdom of the legislature‘s public-policy decisions does not fall within the scope of that review. See State ex rel. Ohio Congress of Parents & Teachers v. State Bd. of Edn., 111 Ohio St.3d 568, 2006-Ohio-5512, 857 N.E.2d 1148, ¶ 20.
{¶ 41}
{¶ 42} The General Assembly exercised that constitutional legislative authority to enact
{¶ 43} Accordingly, we reverse the judgment of the Eighth District Court of Appeals and remand this matter to the trial court to dissolve the injunction and enter judgment in favor of the state.
Judgment reversed and cause remanded.
FRENCH and FISCHER, JJ., concur.
DEWINE, J., concurs in judgment only, with an opinion joined in part by STEWART, J.
O‘CONNOR, C.J., dissents, with an opinion joined by DONNELLY and STEWART, JJ.
DEWINE, J., concurring in judgment only.
{¶ 44} I, too, would find that the state legislative enactment prevails over Cleveland‘s Fannie Lewis Law, but I arrive at the result by a different path than the lead opinion. In my view, the lead opinion dangerously misreads
{¶ 45} Nonetheless, unlike the dissenting justices, I do not believe that the state legislature violated the Home Rule Amendment to the Ohio Constitution.
I. Article II, Section 34
{¶ 46}
{¶ 47} The lead opinion reads
{¶ 48} Consider for a moment what that means.
{¶ 49} In the aforementioned examples, the federal constitution would likely provide protection for Ohio citizens despite the evisceration of the guarantees of the Ohio Constitution. But consider other examples in which no federal constitutional counterpart would apply. Even though the federal right to a jury trial in a civil case has not been incorporated against the states, see Gasperini v. Ctr. for Humanities, Inc., 518 U.S. 415, 432, 116 S.Ct. 2211, 135 L.Ed.2d 659 (1996),
{¶ 50} The list could go on and on. The point is that under the lead opinion‘s reading, the legislature is given carte blanche to disregard all other constitutional safeguards anytime it can plausibly say that something promotes the welfare of working Ohioans.
{¶ 51} Did the Ohio voters who ratified
A. The text of Article II, Section 34, its context, and the structure of the Constitution limit that provision to regulations of the workplace environment
{¶ 53} I have already touched upon one structural consideration—the incompatibility of the lead opinion‘s reading of
{¶ 54}
{¶ 55} Keeping in mind the implausibility of the lead opinion‘s reading given our Constitution‘s structure, let us turn next to the text of
Laws may be passed fixing and regulating the hours of labor, establishing a minimum wage, and providing for the comfort, health, safety and general welfare of all employes; and no other provision of the constitution shall impair or limit this power.
{¶ 56}
So, where in a statute terms are first used which are confined to a particular class of objects having well-known and definite features and characteristics, and then afterwards a term is conjoined having perhaps a broader signification, such latter term is, as indicative of legislative intent, to be considered as embracing only things of a similar character as those comprehended by the preceding limited and confined terms.
State v. Aspell, 10 Ohio St. 2d 1, 4, 225 N.E.2d 226 (1967). The principle “parallels common usage” in that “[w]hen the initial terms all belong to an obvious and readily identifiable genus, one presumes that the speaker or writer has that category
{¶ 57} Applying this principle of statutory construction suggests that the general catchall category—providing for the comfort, health, safety, and general welfare—was intended to authorize the legislature to enact legislation of the same genus as the first two categories, regulating hours and minimum wages. Because wage and hour regulations relate to the conditions of employment, the general-welfare clause should be read in a similarly constrained manner.
{¶ 58} That makes sense. Part of the justification for the canon is that when “the tagalong general term is given its broadest application, it renders the prior enumeration superfluous.” Scalia & Garner, Reading Law at 199-200. This court has long held that no part of an enactment “should be treated as superfluous unless that is manifestly required, and the court should avoid that construction which renders a provision meaningless or inoperative.” State ex rel. Myers v. Spencer Twp. Rural School Dist. Bd. of Edn., 95 Ohio St. 367, 373, 116 N.E. 516 (1917). But to read the comfort, health, safety, and general welfare provision in the broad manner of the lead opinion is to render the first two categories superfluous. After all, minimum-wage regulations and limitations on hours also promote employee welfare. Thus, to give each term in the provision a distinct role, the comfort, health, safety, and general-welfare clause must be read to exclude minimum-wage and hour regulations.
{¶ 59} One might read the general-welfare clause to allow regulation of the employer-employee relationship, but that would still make the hours and minimum-wage components of the provision unnecessary. Wages and hours are features of how employers and employees relate to one another. To give the minimum-wage and hours provisions an independent role in the provision, the comfort, health, safety, and general-welfare clause must be limited to laws governing the workplace environment.
{¶ 60} A similar point can be made about other parts of the constitutional scheme.
{¶ 61} The same goes for
{¶ 62} The records of the proceedings at the 1912 convention show that the delegates sought to avoid unnecessary duplication of constitutional provisions. For instance,
{¶ 63} No similar objection was raised in the debate on the Section 35 workers‘-compensation proposal, which occurred almost directly after debate over the Section 37 proposal concluded, or the Section 33 lien proposal, which occurred a couple of days later. Id. at 1346, 1412. Thus there is good reason to think that the delegates at the 1912 convention understood Sections, 33, 34, and 35 in a nonoverlapping way. Again, the only plausible reading that accomplishes this is to
B. The historical backdrop to Article II, Section 34 suggests that its reach was limited to the workplace environment
{¶ 64} Consideration of the text of
{¶ 65}
{¶ 66} The most famous case to which
{¶ 67} At the same time, courts were also limiting the liability of employers for industrial accidents. For instance, in Cincinnati, Hamilton & Dayton Ry. Co. v. Frye, 80 Ohio St. 289, 299, 88 N.E. 642 (1909). As Justice Wanamaker explained a few years after the 1912 convention, the 1909 decision in Frye, which limited liability of employers, was ” ‘had in mind’ by the constitutional convention when they proposed and adopted Section 34 as to safety.” Am. Woodenware Mfg. Co. v. Schorling, 96 Ohio St. 305, 344-345, 117 N.E. 366 (1917) (Wanamaker, J., dissenting). The convention transcripts also show that workplace conditions were on the mind of the delegates. One delegate, Mr. Dwyer, voiced a concern to provide “employes fair living wages, good sanitary surroundings during hours of labor, protection as far as possible against danger, [and] a fair working day” so as to “[m]ake his life as pleasant for him as you can consistent with his employment.” 2 Proceedings and Debates of the Constitutional Convention of the State of Ohio 1332-1333 (1912). Another, Mr. Lampson, noted that “one of the greatest evils in the industrial situation in this country today is what is known as sweatshop work.” Id. at 1332. The worry expressed at the convention was that cases like the “bake-shop case in New York,” i.e., Lochner, were overturning state laws aimed at worker protection. Id. at 1335. And the goal of the proposal that would become
{¶ 68} In 1913, the year after the constitutional convention, the General Assembly passed the Industrial Commission Act of 1913, which put into effect the new laws that
{¶ 69} The most telling data point is that whenever the Industrial Commission Act speaks of worker “welfare” or “safety,” it is always in conjunction with the “place of employment.” See Industrial Commission Act at Sections 15-17, 20, 21. The specific duties imposed by the act also show a concern solely with the workplace environment. Section 15 of the act imposes a duty on employers to “furnish a place of employment which shall be safe for the employes therein, and for frequenters thereof,” the latter defined as nontrespassers who may go or be in the place of employment, id. at Section 13(5) (defining “frequenter“). Explicitly mentioned is a duty to use safety devices and safeguards and safe methods and processes. Id. at Section 15. In several provisions, the act also imposes a more general duty to “do every other thing reasonably necessary to protect the life, health, safety and welfare of such employes and frequenters.” Id. at Sections 15, 17; accord Section 16. And Section 20 allows the commission to inspect the place of employment in order to assess the “health, safety, and welfare of the employes therein.” In short, the act is concerned with protecting employees and frequenters from what we might colloquially call workplace hazards. Nothing in the act reaches outside the workplace environment to serve worker welfare in a more general sense.
{¶ 70} Cases interpreting
{¶ 71} In two other cases, Justice Wanamaker explained the relevance of Section 34. Patten v. Aluminum Castings Co., 105 Ohio St. 1, 50-55, 136 N.E. 426 (1922) (Wanamaker, J., dissenting from original opinion); Toledo Cooker Co. v. Sniegowski, 105 Ohio St. 161, 176, 136 N.E. 904 (1922) (Wanamaker, J. dissenting). In Patten, Justice Wanamaker described the evils that Ohio‘s new employment-related constitutional provisions aimed to ameliorate. Patten at 50. Those included “[a]n appalling number of industrial accidents, resulting in the death of thousands and the disability, partial or complete, of a still larger number of working men, working women, and working children.” Id.
{¶ 72} In Toledo Cooker, he explained that the comfort, health, safety, and general-welfare clause was a direct response to the Ohio Supreme Court‘s decision in Frye, 80 Ohio St. 289, 88 N.E. 642. Toledo Cooker at 176-177. As noted above, in Frye the court limited the legal duty of an employer to that of ordinary care—the court explicitly rejected the view that the employer had a duty to ensure that the place of employment was safe. Frye at 299. As Justice Wanamaker described it: “There is little wonder that the working men of Ohio demanded something better, something higher and more humane for their protection in the workshops and factories. Hence Section 34 of the Constitution and the legislation of 1913 [i.e., the Industrial Commission Act of 1913] followed.” Toledo Cooker at 177. It is telling that the comfort, health, safety, and general-welfare clause was a direct response to Frye, a case dealing with liability for injuries within the workplace environment.
{¶ 73} In sum, the historical evidence paints a uniform picture. The comfort, health, safety, and general-welfare clause was originally understood as ensuring that the General Assembly had the authority to protect workers in their place of work. There is absolutely no evidence that it reached any further than this,
C. Over the past few decades, this court has expanded the scope of the Section 34 powers
{¶ 74} Prior to 1967, this court‘s decisions invoking
{¶ 75} Then in 1967, in what can charitably be described as an under-reasoned opinion, this court held that a state law transferring the assets of local firefighter pension funds to a state fund was authorized by the Section 34 powers. State ex rel. Police & Firemen‘s Pension Fund Bd. of Trustees v. Police Relief & Pension Fund of Martins Ferry Bd. of Trustees, 12 Ohio St. 2d 105, 107, 233 N.E.2d 135 (1967). The floodgates opened. In 1989, over vigorous dissent, this court held that a statute requiring public employers to engage in binding arbitration with their employees was authorized by the “general welfare” portion of
D. R.C. 9.75 cannot be passed under Article II, Section 34
{¶ 76} While some of our case law has already expanded the Section 34 powers beyond the provision‘s original meaning, those cases can at least be categorized as all dealing with matters within the employer-employee relationship. The lead opinion, today, goes a step further and concludes that a law that does not govern the employer-employee relationship at all, but merely indirectly affects employee welfare, is a Section 34 law.
{¶ 77} In continuing to expand the scope of Section 34 in ways never countenanced by the people of 1912, this court is well on its way to transforming a coherent constitutional scheme into a confusing and unstable muddle. Instead of taking a further step down this misguided path, we should at least stop and find that
II. Home Rule
{¶ 78} The fact that
{¶ 79} The Home Rule Amendment reads: “Municipalities shall have authority to exercise all powers of local self-government and to adopt and enforce within their limits such local police, sanitary and other similar regulations, as are not in conflict with general laws.”
A. The Fannie Lewis Law is an Exercise of the Police Power
{¶ 80} The first question is whether the Fannie Lewis Law is an exercise of a power of local self-government or an exercise of the police power. The distinction is usually cashed out in terms of whether the ordinance relates solely to the government and administration of the internal affairs of the municipality or instead aims to protect the public health, safety or morals, or the general welfare. In re Complaint of Reynoldsburg, 134 Ohio St. 3d 29, 2012-Ohio-5270, 979 N.E.2d 1229, ¶ 25; Ohioans for Concealed Carry, Inc. v. Clyde, 120 Ohio St. 3d 96, 2008-Ohio-4605, 896 N.E.2d 967, ¶ 35.
{¶ 81} Paradigmatic of the powers of local self-government are laws that control how a local government will organize itself and make decisions, for instance, by settling on a method for electing municipal officers, see Fitzgerald v. Cleveland, 88 Ohio St. 338, 347, 103 N.E. 512 (1913). In contrast, our cases show that when an ordinance aims at controlling the behavior of third parties in service of public health, safety, or welfare, it is an exercise of the police power. For instance, in Clyde, this court held that a local ordinance prohibiting the carrying of concealed handguns in city parks was an exercise of the police power. Clyde at ¶ 1.
{¶ 82} What does this mean for the Fannie Lewis Law? The Fannie Lewis Law requires city contracts to include certain terms that impose a penalty on public-works contractors that do not employ a sufficient number of Cleveland residents. Cleveland Codified Ordinances Chapter 188. Cleveland argues that because the ordinance directly governs only the city‘s power to contract, it is not an exercise of the police power. And Cleveland notes that this court has held that at least some exercises of the power to contract fall squarely within the sphere of local self-government. See, e.g., Dies Elec. Co. v. Akron, 62 Ohio St. 2d 322, 327, 405 N.E.2d 1026 (1980).
{¶ 83} But it‘s not true that any time a city exercises its power to contract it is merely exercising a power of local self-government. As the United States Supreme Court has recognized in a different legal context, contracts are not always just a way to participate in a market; sometimes they function as market regulations. South-Central Timber Dev., Inc. v. Wunnicke, 467 U.S. 82, 97, 104 S.Ct. 2237, 81 L.Ed.2d 71 (1984). Thus, in Wunnicke, the Court held that a statutorily mandated contract term requiring that state timber be processed in Alaska was functionally a
{¶ 84} The Fannie Lewis Law is functionally a regulation of the behavior of contractors in their dealings with their employees and is not merely an innocent exercise of Cleveland‘s power to spend money as it sees fit. To see why, consider a city ordinance that imposes a fine on contractors that do not employ a sufficient number of local residents. That would unquestionably be an exercise of the police power; it imposes a penalty in order to control the behavior of third parties. But that is precisely what the Fannie Lewis Law does, albeit by way of contract rather than through an ordinance. To pretend that the Fannie Lewis Law is not an exercise of the police power because it achieves its result through contract rather than direct regulation is a blinkered kind of formalism that ignores reality. Powerful economic actors like Cleveland can effect regulatory ends through the power of contract. That is what Cleveland attempts to do with the Fannie Lewis Law.
B. R.C. 9.75 is a General Law
{¶ 85} In suggesting that
“A law framed in general terms, restricted to no locality, and operating equally upon all of a group of objects, which, having regard to the purposes of the legislation, are distinguished by characteristics sufficiently marked and important to make them a class by themselves, is not a special or local law, but a general law.”
Id. at 109, quoting State ex rel. Van Riper v. Parsons, 40 N.J.L. 123 (1878), paragraph one of the syllabus. Black‘s Law Dictionary contained the same definition at the time of the enactment of the Home Rule Amendment, Black‘s Law Dictionary 710 (2d Ed.1910).
{¶ 86} Is
{¶ 87} Many laws apply only to a subset of the population. For instance, laws regulating electricity producers apply only to electricity producers and not to ice-cream makers. But if a law aims to limit emissions, electricity producers are
{¶ 88} Are public authorities (as distinct from private contracting parties) distinguished by characteristics that are “sufficiently marked and important” to make them a relevant class for purposes of preventing discrimination in employment based on residency? The answer is yes. Public authorities have a history of favoring local residents and an incentive to do so. And it is sensible for a legislature to target a class when that class has a history of behavior that the state seeks to curtail. In contrast, it would be rather idiosyncratic for a private contractor to care about where its employees reside. The General Assembly need not legislate to solve a problem that doesn‘t exist in order for its solution to a problem that does exist to count as a general law.
{¶ 89} Because
III. Conclusion
{¶ 90} In sum,
STEWART, J., concurs in Part I of the foregoing opinion.
O‘CONNOR, C.J., dissenting.
{¶ 91} Because
R.C. 9.75 does not fall under the General Assembly‘s authority in Article II, Section 34 of the Ohio Constitution
{¶ 92} The lead opinion concludes that the General Assembly is authorized under
{¶ 93} But
{¶ 94} It is true that in Lima, we upheld a state law that prohibited a political subdivision from imposing a residency requirement on its employees. We concluded that the law was validly enacted pursuant to
{¶ 95}
{¶ 96} The local-ordinance residency requirements that were declared invalid in Lima acted as a complete bar to city employment unless one resided within the municipality. Lima, 122 Ohio St. 3d 155, 2009-Ohio-2597, 909 N.E.2d 616, at ¶ 2, 4. They were local laws that directly affected workers’ choice of residency. The city of Cleveland‘s Fannie Lewis Law does no such thing. The Fannie Lewis Law is applicable only to contractors who are working on public contracts in excess of $100,000. Cleveland Codified Ordinances 188.01(b). An affected contractor can hire whomever it wishes. Resident and nonresident workers are eligible to work 100 percent of the labor hours. If the contractor chooses not to
{¶ 97} The lead opinion concludes that
R.C. 9.75 is not a general law
{¶ 98} If not authorized under
{¶ 99} A state statute controls if “(1) the ordinance is an exercise of the police power, rather than of local self-government, (2) the statute is a general law, and (3) the ordinance is in conflict with the statute.” (Emphasis added.) Mendenhall v. Akron, 117 Ohio St. 3d 33, 2008-Ohio-270, 881 N.E.2d 255, ¶ 17. A general law is one that (1) is part of a statewide and comprehensive legislative enactment, (2) applies to all parts of the state alike and operates uniformly throughout the state, (3) sets forth police, sanitary, or similar regulations, rather than purporting only to grant or limit legislative power of a municipal corporation to set forth police, sanitary, or similar regulations, and (4) prescribes a rule of conduct upon citizens generally. Canton v. State, 95 Ohio St. 3d 149, 2002-Ohio-2005, 766 N.E.2d 963, ¶ 21.
{¶ 100} At a minimum,
{¶ 101} Because
DONNELLY and STEWART, JJ., concur in the foregoing opinion.
Barbara A. Langhenry, Cleveland Director of Law, Gary S. Singletary, Chief Counsel, and L. Stewart Hastings and Elizabeth M. Crook, Assistant Law Directors, for appellee.
Dave Yost, Attorney General, Benjamin M. Flowers, State Solicitor, Stephen P. Carney, Deputy Solicitor, and Zachary P. Keller, Assistant Attorney General, for appellant.
Frost Brown Todd L.L.C., Philip K. Hartmann, and Yazan S. Ashrawi; and Garry E. Hunter, urging affirmance for amicus curiae Ohio Municipal League.
Scott & Winters Law Firm, L.L.C., and Joseph F. Scott, urging affirmance for amici curiae Campaign to Defend Local Solutions, Legal Scholars, and International Municipal Lawyers Association.
Eve V. Belfance, Akron Director of Law, and Brian D. Bremer, Assistant Law Director, urging affirmance for amicus curiae city of Akron.
Zach Klein, Columbus City Attorney, Lara N. Baker-Morrish, City Solicitor General, and Orly Ahroni, Assistant City Prosecutor, urging affirmance for amicus curiae Columbus City Attorney Zach Klein.
Graff and McGovern, L.P.A., and Luther L. Liggett Jr., urging reversal for amicus curiae AIA Ohio.
Ice Miller, L.L.P., and Patrick A. Devine, urging reversal for amici curiae Ohio Contractors Association, Associated General Contractors of Ohio, National Federation of Independent Business, and Ohio Chamber of Commerce.
Fadel & Beyer, L.L.C., Timothy R. Fadel, and Jonah D. Grabelsky, urging reversal for amicus curiae International Union of Operating Engineers, Local 18.
Weston Hurd, L.L.P., Frederick T. Bills, and David T. Patterson, urging reversal for amicus curiae American Council of Engineering Companies of Ohio.
