SOUTH CAROLINA PUBLIC INTEREST FOUNDATION and Edward D. Sloan, Jr., individually, and on behalf of all others similarly situated, Petitioners, v. James H. “Jay” LUCAS, as Speaker of the S.C. House of Representatives, Henry D. McMaster, as President of the S.C. Senate, and The State of South Carolina, Respondents. Hugh K. Leatherman, Sr., in his capacity as President Pro Tempore of the South Carolina Senate, Intervenor.
Appellate Case No. 2015-001443. No. 27638.
Supreme Court of South Carolina.
Heard March 22, 2016. Decided May 18, 2016.
786 S.E.2d 124
Chief Justice PLEICONES.
Michael J. Anzelmo, and Blake Terence Williams, both of Nelson Mullins Riley & Scarborough; Richard L. Pearce, Patrick G. Dennis, and Charles Fennell Reid, all of Columbia, for respondent James H. “Jay” Lucas, Jr.; Attorney General, Alan McCrory Wilson and Deputy Solicitor General, J. Emory Smith, Jr., both of Columbia, for respondents State of South Carolina and Lieutenant Governor, Henry D. McMaster.
Kenneth M. Moffitt and Edward Houseal Bender, both of Columbia, for Intervenor Hugh K. Leatherman, Sr.
Chief Justice PLEICONES.
We agreed to hear this constitutional challenge to the 2015-16 Appropriations Act in our original jurisdiction.1 Petitioners
FACTS
The Governor shall appoint, with the advice and consent of the Senate, a Secretary of Transportation who shall serve at the pleasure of the Governor. A person appointed to this position shall possess practical and successful business and executive ability and be knowledgeable in the field of transportation. The Secretary of Transportation shall receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the general appropriations act.
The next section of 2007 Act No. 114 provided:
Unless extended by subsequent act of the General Assembly, the Governor‘s authority to appoint the Secretary of the
Department of Transportation pursuant to Section 57-1-410 terminates and is devolved upon the Department of Transportation Commission effective July 1, 2015. All other provisions regarding the rights, powers, and duties of the secretary shall remain in full force and effect.
2007 Act No. 114, § 6.
Proviso 84.18 purports to suspend the 2015 termination/devolution provision of 2007 Act No. 114, § 6, for the fiscal year, i.e., until June 30, 2016, thus leaving intact the appointment authority given to the Governor in § 5.
Petitioners seek a declaration that the inclusion of Proviso 84.18 in the appropriations act violates
§ 17. One subject.
Every Act or resolution having the force of law shall relate to but one subject, and that shall be expressed in the title.
Article III, § 17 has three objectives:
“(1) to apprise the members of the General Assembly of the contents of an act by reading the title; (2) to prevent legislative ‘log-rolling‘,4 and (3) to inform the people of the State of the matters with which the General Assembly concerns itself.” Am. Petroleum Inst. v. South Carolina Dep‘t of Revenue, 382 S.C. 572, 576, 677 S.E.2d 16, 18 (2009).
Sea Cove Dev., LLC v. Harbourside Comm. Bank, 387 S.C. 95, 101, 691 S.E.2d 158, 161 (2010).
“Log-rolling” is defined as a “legislative practice of including several propositions in one measure ... so that the Legislature ... will pass all of them, even though these propositions may not have passed if they had been submitted separately.” Am. Petroleum at 577, 677 S.E.2d at 18, citing Blacks Law Dictionary 849 (7th ed. 1999).
The crux of petitioners’
The Court has decided a number of cases involving a challenge to a provision of the annual appropriations act as violative of
- Giannini v. S.C. DOT, 378 S.C. 573, 664 S.E.2d 450 (2008) (reenactment of Tort Claims Act Caps are reasonably and inherently related to raising and spending of tax monies).
- Town of Hilton Head Island v. Morris, 324 S.C. 30, 484 S.E.2d 104 (1997) (requirement that local governments remit real estate transfer fees to the state).
- Keyserling v. Beasley, 322 S.C. 83, 470 S.E.2d 100 (1996) (provisions creating a committee to negotiate new contracts and fees for waste disposal and to repeal an earlier law thereby allowing landfill to continue to accept out-of-state waste and associated fees).
- State Farm Mut. Auto. Ins. Co. v. Smith, 281 S.C. 209, 314 S.E.2d 333 (1984) (insurance commission to collect a fee/tax from automobile insurers).
- Powell v. Red Carpet Lounge, 280 S.C. 142, 311 S.E.2d 719 (1984) (altering definition of machines subject to licensing fee).
- Hercules Inc. v. S.C. Tax Comm‘n, 274 S.C. 137, 262 S.E.2d 45 (1980) (suspension of tax assessment statute of limitations).
- Caldwell v. McMillan, 224 S.C. 150, 77 S.E.2d 798 (1953) (proviso permitting Highway Department to build a kitchen and lease the space to a restaurateur).
- State ex rel. Roddey v. Byrnes, 219 S.C. 485, 66 S.E.2d 33 (1951) (issuance of state bonds; school construction; sales and use tax).
Crouch v. Benet, 198 S.C. 185, 17 S.E.2d 320 (1941) (bonds to build additional facilities).
In the following cases, however, provisions of the appropriations act were found to violate
- Ex parte Georgetown Water & Sewer Dist., 284 S.C. 466, 327 S.E.2d 654 (1985) (permitting referendums in special purpose districts to decide method of electing members and/or nature of budget).
- Maner v. Maner, 278 S.C. 377, 296 S.E.2d 533 (1982) (amendments to act creating the Court of Appeals).
- S.C. Tax Comm‘n v. York Elec. Coop., 275 S.C. 326, 270 S.E.2d 626 (1980) (Uniform Disposition of Unclaimed Property Act giving state custody of certain unclaimed property).
We agree with petitioners that Ex parte Georgetown, supra, Maner, supra, and York Elec. Coop., supra, dictate that we hold that the inclusion of Proviso 84.18 in the 2015-16 Appropriations Act violates the log-rolling prohibition found in
Intervenor Leatherman argues, however, that because the Secretary necessarily has some discretion in making significant fiscal decisions on behalf of DOT, any legislation touching on the selection of the individual vested with this authority is properly included in the appropriations act.
Respondent Lucas takes a different approach and suggests a new analytical approach to
AN ACT TO MAKE APPROPRIATIONS AND TO PROVIDE REVENUES TO MEET THE ORDINARY EXPENSES OF STATE GOVERNMENT FOR THE FISCAL YEAR BEGINNING JULY 1, 2015, TO REGULATE THE EXPENDITURE OF SUCH FUNDS, AND TO FURTHER PROVIDE FOR THE OPERATION OF STATE GOVERNMENT DURING THIS FISCAL YEAR AND FOR OTHER PURPOSES.
First, we are not convinced that the title is susceptible of a reading that separates “operation of state government” from fiscal issues. Further, if Respondent Lucas were correct, and 2015 Act No. 91 embraces both appropriations and the entire “operation of state government,” it would ipso facto violate the “one subject” requirement of
Respondent Lucas next argues the Court should not read Proviso 84.18 “in isolation” but rather in the context of all of Proviso 84, citing Keyserling, supra. We find his reliance on this decision is misplaced. Keyserling was a challenge to two parts of a section of the 1995 Appropriations Act. See 1995 Act No. 145, Part II, § 79. Section 79, which addressed the Barnwell low-level radioactive waste landfill, contained four parts:
- added a statute imposing a tax on low-level out-of-state waste;
- amended a statute to create a committee to negotiate a new waste disposal compact, with the committee authorized to negotiate new fees;
required a part of all revenues generated by the landfill be remitted to the General Fund; and - repealed a statute which established the original waste disposal compact.
Subsections (B) and (D) were challenged as not related to revenue raising and therefore violative of
Respondent Lucas relies on language from Keyserling which “rejects Petitioners’ claim that we should read the provisions of Section 79 in isolation, requiring each provision to relate directly to appropriations.” Id. at 88, 470 S.E.2d at 103. (emphasis supplied). In Keyserling, subsection (B) did not directly relate to appropriations as it authorized the commission to negotiate the new fees, but did not itself set that amount, and subsection (D) did not directly set a fee, but by deleting a statute, permitted a fee to continue to be collected. While neither section directly raised revenue, both were nonetheless “reasonably and inherently” related to revenue raising, and were necessary to make the whole of Section 79 effective. Other examples of provisions in appropriations acts that did not directly relate to revenue raising or spending, but were nonetheless found to be reasonably and inherently related to this purpose, are: (1) a provision that defined the machines subject to a license fee but did not itself set that fee, Powell, supra; (2) a proviso that suspended a statute of limitations so as to permit a tax assessment to continue to be collected, Hercules, supra; and (3) a subsection which authorized the building of a cafeteria and a contract with a restaurateur, without directing the amount that could be spent. Caldwell, supra.
While a provision in the appropriations act need not directly relate to spending revenue, Keyserling, supra, it must “rea-
The issue is whether Proviso 84.18, suspending the termination of the Governor‘s appointment power, is reasonably and inherently related to the raising and spending of tax monies. See Town of Hilton Head, supra, 324 S.C. at 35, 484 S.E.2d at 107. We hold that it is not, and thus its inclusion in the Appropriations Act renders that Act violative of
Having determined that the inclusion of Proviso 84.18 in the Appropriations Act violates
It is well settled that the purpose of the appropriations act is the raising and spending of revenue. E.g., Crouch, supra (1941); State ex rel. Roddey, supra, (1951). The intent of the General Assembly in enacting an appropriations act is clear and we would not be in the position of usurping the General Assembly‘s prerogative to determine an act‘s “proper subject” when the legislation at issue is the appropriations act since the only items which are germane to that subject are those that “reasonably and inherently relate to the raising and spending of tax monies.” See Plowden v. Beattie, 185 S.C. 229, 240, 193 S.E. 651, 656 (1937) (“The appropriations act is the one ‘big piece’ of legislation to occupy the time of the legislature at each session of the General Assembly, and is probably the most studied bill....“). Accordingly, we modify our decision in Am. Petroleum, supra and now hold that when deciding an
CONCLUSION
We hold that the inclusion of Proviso 84.18 in 2015 Act No. 91 violates
PROVISO STRICKEN.
BEATTY, KITTREDGE and HEARN, JJ., concur.
FEW, J., dissenting in a separate opinion.
Justice FEW.
I respectfully do not join the majority opinion. In my view, this case does not present a question of sufficient public
This case is a companion to one in which the same petitioners contend the transfer of authority to appoint the Secretary of Transportation—from the Governor to the Department of Transportation—is unconstitutional under the separation of powers requirement set forth in
However, if Proviso 84.18 is effective, the transfer has not yet occurred, and Petitioners’ separation of powers challenge in the companion case is not ripe for judicial determination. Thus, by granting Petitioners the relief they seek here, we enable them to seek relief in the companion case that would otherwise not be ripe. That is what this case is about. While I do not suggest there is anything improper in Petitioners’ motives, Petitioners clearly did not bring this case to acceler-
In an unpublished opinion in the companion case—issued simultaneously with this opinion—we deny without explanation the relief Petitioners seek there. S.C. Pub. Interest Found. v. Rozier, Op. No. 2016-MO-019, 2016 WL 2944167 (S.C. Sup. Ct. filed May 18, 2016). In that opinion, the Court states only, “After careful consideration of the briefs, and after oral argument, we find no merit to petitioners’ challenge and therefore decline to issue the declaratory relief they seek.” Rozier, 2016 WL 2944167, at *1. Therefore, this Court issues its opinion in this case for the purpose of determining a companion case is ripe, so the Court may deny relief in the companion case without any explanation. This is not the type of “significant public interest” that warrants this Court‘s exercise of its original jurisdiction.
As to the merits of the majority opinion, I do not agree that this Court should adopt a new rule in this case that “when deciding an art[icle] III, [section] 17 challenge to the annual appropriations act, we have the authority to excise any provision that is not germane to fiscal issues.” Such a broad proclamation of law is not necessary to resolve the controversy before the Court. See generally In re McCracken, 346 S.C. 87, 92, 551 S.E.2d 235, 238 (2001) (reciting “this Court‘s firm policy to decline to rule on constitutional issues unless such a ruling is required“); Fairway Ford, Inc. v. Cty. of Greenville, 324 S.C. 84, 86, 476 S.E.2d 490, 491 (1996) (reciting the “firm policy of declining to reach constitutional issues unnecessary to the resolution of the case before us“). See also Wash. State Grange v. Wash. State Republican Party, 552 U.S. 442, 450--51, 128 S.Ct. 1184, 1191, 170 L.Ed.2d 151, 161 (2008) (reciting “the fundamental principle of judicial restraint that courts should neither ‘anticipate a question of constitutional law in advance of the necessity of deciding it’ nor ‘formulate a rule of constitutional law broader than is required by the precise facts to which it is to be applied’ ” (quoting Ashwander v. TVA, 297 U.S. 288, 346-347, 56 S.Ct. 466, 483, 80 L.Ed. 688, 711 (1936) (Brandeis, J., concurring))).
The new rule the Court adopts is not necessary because this case poses a narrow question: whether the transfer of authority to appoint the Secretary occurred on July 1, 2015—as originally contemplated by section 6 of Act 114 of 2007—or has been delayed to July 1, 2016—as provided in Proviso 84.18. The question can be further narrowed into two sub-issues: (1) whether Petitioners have proven a violation of article III, section 17, and (2) if so, the remedy this court should impose for the violation. The majority makes this point, stating, “Once the Act is found to violate the Constitution, the question of the appropriate remedy for that constitutional violation is necessarily before the Court.” See supra note 3. Here, the majority determined a constitutional violation occurred. Turning then to remedy, the “appropriate remedy for that constitutional violation” should be narrowly tailored to fit the question before the Court. In my opinion, the Court may fully answer the question before it and completely resolve the controversy Petitioners presented by merely stating the Proviso did not extend the transfer of authority. It is not appropriate to consider the remedy of invalidating the entire 2015-2016 Appropriations Act because answering that broad legal question is not necessary to resolve the narrow controversy before us.
Moreover, Petitioners’ complaint does not seek a declaration as to the constitutionality or enforceability of the entire Appropriations Act. Generally, if a plaintiff asks only for a narrow remedy, there is no reason for a court to decide whether to grant a more drastic remedy. Petitioners ask in their complaint only that we “declare that Proviso 84.18 violates [article III, section 17], and therefore is null and void.”6 Thus, it is not necessary in this case to decide whether the remedy should include a declaration that the entire Appropriations Act is unconstitutional. No party has requested such a remedy, and such a remedy is not necessary
The importance of the restraint I propose is illustrated by what the majority considers the necessity to “modify our decision” of only seven years ago in American Petroleum Institute v. South Carolina Department of Revenue, 382 S.C. 572, 677 S.E.2d 16 (2009), an opinion that describes itself as a “depart[ure] from recent precedent” of only one year before that—South Carolina Public Interest Foundation v. Harrell, 378 S.C. 441, 663 S.E.2d 52 (2008). Am. Petroleum, 382 S.C. at 579, 677 S.E.2d at 19-20. In my opinion, even the rule announced in American Petroleum was unnecessary to resolve the controversy before the Court in that case.7 I believe this Court should adhere in this case to its “firm policy of declining to reach constitutional issues unnecessary to the resolution of the case before us.” Fairway Ford, 324 S.C. at 86, 476 S.E.2d at 491. By doing so, we might find it unnecessary to change the law so frequently.
For the reasons explained, I respectfully dissent.
