Lead Opinion
Governor Jim Hodges (“Governor Hodges”) initiated this action in the original jurisdiction of this Court pursuant to Rule 229, SCACR to clarify his authority to remove members of the Board of Directors of the South Carolina Public Service Authority (“Santee Cooper”) pursuant to S.C.Code Ann. § 1-3-240(B) (Supp.1998).
Facts/Procedural Background
In 1993, the South Carolina General Assembly adopted the Restructuring Act, which provided for a substantial reorganization of South Carolina state government. A key provision of the Restructuring Act was the grant to the Governor of broad discretionary authority to appoint and remove executive branch officials. These provisions allow the Governor the flexibility to assemble his or her management team. To this end, included in that act was section l-3-240(B), which allows the Governor to remove any appointed state officer at his or her discretion, notwithstanding that the officer’s term has not yet expired or that a substantial amount of time remains in the officer’s term. When Governor Hodges was elected in 1999, he chose not to issue a broad executive order removing all state officers appointed by past governors. Instead, he requested the resignation of certain members of state boards and commissions. Governor Hodges requested that John S. Rainey (“Rainey”) resign his .position as Chairman of the Board of Directors of Santee Cooper. When Rainey refused, Governor Hodges issued Executive Order 99-62 removing Rainey from the Board. On December 8, 1999, Rainey sent a letter to Governor Hodges in which he refused to relinquish his office on the grounds that the 1993 Restructuring Act
The sole issue before this Court is as follows:
Whether the Governor of South Carolina has the authority to remove a member of the Board of Directors of Santee Cooper upon the issuance of an executive order pursuant to S.C.Code Ann. § l-3-240(B) (Supp.1998)?
Law/Analysis
Governor Hodges argues that this Court should declare that the members of the Board of Directors of Santee Cooper are subject to the Governor’s discretionary removal power under the provisions of the 1993 Restructuring Act and, thus, the executive order removing Rainey is effective. We agree.
I. Statutory Construction
The cardinal rule of statutory construction is to ascertain and effectuate the intent of the legislature. Charleston County Sch. Dist. v. State Budget and Control Bd.,
The language of section l-3-240(B) and (C) is unambiguous and evidences the General Assembly’s intent to grant the Governor of South Carolina the power to remove appointed state officers at his or her discretion. Specifically, section 1-3-240(B) provides for the general power to remove as follows:
*86 (B) Any person appointed to a state office by a Governor, either with or without the advice and consent of the Senate, other than those officers enumerated in subsection (C), may be removed from office by the Governor at his discretion by an Executive Order removing the officer.
Immediately following is section 1-3-240(0) which provides for an enumerated list of agencies where the Governor’s power of removal is limited:
(C) Persons appointed to the following offices of the State may be removed by the Governor for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity:
(1) Workers’ Compensation Commission;
(2) Commission of the Department of Revenue;
(3) Ethics Commission;
(4) Election Commission;
(5) Professional and Occupational Licensing Board;
(6) Juvenile Parole Board;
(7) Probation, Parole and Pardon Board;
(8) Director of the Department of Safety;
(9) Board of the Department of Health and Environmental Control, excepting the Chairman;
(10) Chief of State Law Enforcement Division.
This Court has upheld the Restructuring Act and has applied the above set forth sections l-3-240(B) and (C) to other directors of state boards and commissions. See, e.g., Rose v. Beasley,
The canon of construction “expressio unius est ex-clusio alterius” or “inelusio unius est exclusio alterius” holds that “to express or include one thing implies the exclusion of another, or of the alternative.” Black’s Law Dictionary 602 (7th ed. 1999). Section l-3-240(C) does not specifically exempt the Santee Cooper Board of Directors from its operation, as it
The text of the Restructuring Act is certain — the Act grants the Governor the right to remove appointed state officers at his or her discretion, while specifically exempting ten boards and commissions. If the legislature’s intent is clearly apparent from the statutory language, a court may not embark upon a search for it outside the statute. Abell v. Bell,
While it is true that the purpose of an enactment will prevail over the literal import of the statute, this does not mean that this Court can completely rewrite a plain statute. According to this Court in South Carolina Board of Dental Examiners v. Breeland:
A choice of language in a act will not be construed with literality when to do so will defeat the lawmakers’ manifest intention, and a court will reject the ordinary meaning of words used in a statute when, to accept the ordinary meaning, will lead to a result so plainly absurd that it can not possibly have been intended by the legislature.
II. Implied Repeal
Rainey argues that section l-3-240(B) is in conflict with Santee Cooper’s enabling legislation that allows for the removal of board members for cause, S.C.Code Ann. § 58-31-20 (Supp.1998)
The law does not favor the implied repeal of statute. Butler v. Unisun Ins.,
In the instant case, we find that the 1934 Santee Cooper enabling legislation and the 1993 Restructuring Act are not in conflict. On the contrary, section l-3-240(B) and (C) of the Restructuring Act can be reconciled with section 58-31-20 of the Santee Cooper legislation because both statutes provide alternative and complimentary means of removal.
Section l-3-240(B) of the Restructuring Act does not affect the advisory board’s removal power, it merely allows the Governor to remove a director at his or her discretion. As a matter of public policy, the Governor’s discretionary removal power is important because it allows the Governor to remove a director with whom he or she cannot work. Moreover, the Restructuring Act states that the Governor’s removal power is not in conflict with other removal provisions because it is merely additional to any removal powers conferred by other statutes. S.C.Code Ann. § 1-3-260 (1976) (“The power and procedure of removal conferred and provided for in §§ 1-3-240 and 1-3-250 are additional to any other removal powers or procedure authorized by statute.”) (emphasis added).
Governor Hodges argues that section l-3-240(B) applies to the Santee Cooper Board of Directors because Santee Cooper is a state agency and, therefore, the office of its board members is a “state office” for purposes of the statute. We agree.
Pursuant to section l-3-240(B), state officers can be removed by the Governor at his discretion. Rainey argues that section l-3-240(B) does not apply to Santee Cooper’s board members because Santee Cooper’s enabling legislation provides that they are not “public officers.” Section 58-31-60 of Santee Cooper’s 1934 enabling legislation provides:
The position of director of the Public Service Authority is not a public office, and the State shall in no way be responsible for the acts of the directors, but each director and his surety and the Public Service Authority shall be responsible for all acts of the director in connection with the functions herein provided for.
S.C.Code Ann. § 58-31-60 (1976) (emphasis added).
General law on this subject provides that public officers are “all officers of the State that have heretofore been commissioned and trustees of the various colleges of the State, members of various State boards and other persons whose duties are defined by law.” S.C.Code Ann. § 8-1-10 (1976). However, Santee Cooper’s directors have many indicia of public office holders. The directors are appointed by the Governor, they are commissioned, and their duties are defined by law. Santee Cooper is also considered a state agency under current statutory law.
The goal of statutory construction is to harmonize conflicting statutes whenever possible and to prevent an interpretation that would lead to a result that is plainly absurd. Ray Bell Constr. Co. v. School Dist. of Greenville Co.,
However plain the ordinary meaning of the words used in a statute may be, the courts will reject that meaning when to accept it would lead to a result so plainly absurd that it could not possibly have been intended by the Legislature or would defeat the plain legislative intention. If possible, the court will construe the statute so as to escape the absurdity and carry the intention into effect.
Id. (citing Kiriakides v. United Artists Communications, Inc.,
Furthermore, in 1934 when Santee Cooper’s enabling legislation was enacted, the State was protected by total sovereign immunity and could only be sued in tort or in contract when the State consented. The 1934 Act, therefore, offered Santee Cooper bondholders protection because it provided that although bondholders could not sue the State, they could sue both the directors and Santee Cooper on their bonds. S.C.Code Ann. § 58-31-60 (“... each director and his surety and the Public Service Authority shall be responsible for all acts of the director in connection with the functions herein provided for.”). We eliminated the State’s immunity from suit based upon its contractual obligation in 1978 in Kinsey Construction Co. v. South Carolina Department of Mental Health,
Rainey argues that Santee Cooper should be considered a state agency for some purposes and not for others. In South Carolina Pub. Serv. Auth. v. Citizens & South. Nat. Bank,
Rainey argues that section l-3-240(B) would be unconstitutional in application if used to remove a Santee Cooper board member because it would violate the Contract Clause of the United States and South Carolina Constitutions
A. Contractual Relationship
“When bonds are issued, there arises a contract between the purchaser and seller, the obligation of which cannot be impaired, as it would be in violation of article 1, § 10, Const. U.S., and of article 1, § 8, Const. S.C.” Welch v. Getzen,
B. Substantial Impairment
“For purposes of Contract Clause analysis, a statute can be said to substantially impair a contract when it alters the reasonable expectations of the contracting parties.” Ken Moorhead Oil,
The adverse effects proposed by Rainey do not rise to the level of a substantial impairment of contract.
Conclusion
We find that the members of Santee Cooper’s Board of Directors are subject to the Governor’s discretionary removal power under section l-3-240(B) of the 1993 Restructuring Act and, thus, Governor Hodges’ executive order removing Rainey is effective.
Notes
. Rainey cites several examples where this Court has interpreted statutes in accord with legislative intent, despite the literal meaning of the statute. However, in none of these examples has this Court completely disregarded the plain meaning of the statute. In all of his examples this Court changed particular words to be more in line with the overall intent of the statute. None of his examples involve this Court disregarding the whole text of a statute because a contrary legislative intent can be ascertained from reading other earlier statutes, which is what Rainey argues this Court should do in the instant case. The examples provided by Rainey include where this Court has found: "July” to mean "June;” "attached” to mean "taxed;” “county” to mean "city;” and "hereinafter” to mean "hereinbefore.” See generally Fulghum v. Blealdey,
. "Members of the board of directors may be removed for cause by the advisory board or a majority thereof.” S.C.Code Ann. § 58-31-20 (1976).
. Even if the Restructuring Act was incompatible with Santee Cooper’s . enabling legislation, the Restructuring Act would prevail because it was enacted subsequent to the enabling legislation. The more recent and specific legislation controls if there is a conflict between two statutes. Porter v. South Carolina Pub. Serv. Comm'n,
. South Carolina case law also confirms that Santee Cooper is a state agency. See Cooper v. South Carolina Pub. Serv. Auth.,
. Article 1, section 10 of the United States Constitution provides:
No State shall • enter into any Treaty, Alliance, or Confederation; grant Letters or Marque and Reprisal; coin Money, emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
U.S. Const. art. I, § 10, cl. 1 (emphasis added). See S.C. Const. art. I, § 4.
. If the adverse effects cited by Rainey are considered an impairment, they certainly do not constitute a substantial impairment. In fact, the affidavits used by Rainey to support his claim of impairment do not describe substantial or highly detrimental effects as the result of a change in the composition of the Board of Directors. For example, in the affidavit of Walter T. Cox he states that the removal of the Chairman by the Governor is a threat to stability which "may result” in the bonds being less valuable if it affects the overall bond ratings. The affidavit of Alan Spen, who has rated Santee Cooper’s bond offerings, merely states that the possibility that the Board could be replaced by the Governor is "viewed as less than favorable.” Finally, the affidavit of Christopher Fink of Morgan Stanley & Company merely states that the possibility of removing the Chairman prior to the expiration of his term will lead to uncertainty which "could have a negative impact on the marketability of the outstanding Santee Cooper debt securities.” (emphasis added).
. Rainey attempts to compare the instant case with South Carolina Serv. Auth. v. Summers,
Concurrence Opinion
(concurring in part, dissenting in part):
I concur with Parts III and IV of the majority’s opinion. I disagree, however, with Parts I and II. In my opinion, the Governor does not have discretionary authority to remove a member of the Board of Directors of Santee Cooper.
Relying on the statutory construction maxim “expressio unius est exclusio alterius,” the majority concludes because Santee Cooper was not included in the list of exclusions noted in § l-3-240(C), the General Assembly intended the Gover
When Santee Cooper was created in 1934, the General Assembly enacted specific provisions for the removal of Santee Cooper’s Board members. Section 58-31-20 (1976) specifically provides: “[mjembers of the board of directors [of Santee Cooper] may be removed for cause by the advisory board or a majority thereof.” (Italic added). The advisory board is composed of five members, one of whom is the governor. § 58-31-20.
As recognized by the majority, the law does not favor the implied repeal of a statute. Butler v. Unisun Ins.,
As I read § l-3-240(B) and § 58-31-20, the two statutes are irreconcilable and cannot be reasonably harmonized. Allowing the Governor complete and sole discretion to remove a Board member without cause usurps the advisory board’s authority to remove a Board member for cause. Simply put, if the advisory board, of which the Governor is a member, fails to remove a Board member for cause, the Governor can effectively veto the action and remove the member at his own discretion. Contrary to the majority’s assertion, § l-3-240(B) impliedly repeals the advisory board’s removal power.
Because § 1-3-240(B) and § 58-31-20 are clearly in conflict, the latter, as the specific act, controls, even though it was passed before § 1-3-240(B). Atlas Food Systems and Services, Inc. v. Crane Nat’l Vendors,
Furthermore, the cardinal rule of statutory construction is to ascertain and effectuate the intent of the legislature. Mid-State Auto Auction of Lexington, Inc. v. Altman,
In my opinion, § 1-3-240 does not authorize the Governor to remove a member of the Santee Cooper Board at his sole discretion. Accordingly, I would vacate Executive Order 99-62 which removes Rainey from the Board. Rose v. Beasley,
. Expressio unius est exclusio alterius is a rule of statutory construction; it is not a rule of substantive law. Accordingly, the maxim "should be used with care.” Norman J. Singer, Sutherland Statutory Construction § 47.25 at 234 (5«> ed. 1992).
