SAAD, J.
In these consolidated appeals, respondent school districts ask us to reverse a series of orders entered by the State Tenure Commission, which instructed administrative law judges to hear petitioners' suits. For the reasons stated below, we hold that the State Tenure Commission does not have jurisdiction to hear petitioners' claims, and accordingly, we reverse its administrative orders and dismiss petitioners' actions.
This case is about governmental power and authority, and who gets to make and review decisions about teacher layoffs in the public schools. Before the historic enactment of the four pieces of tie-barred
Because length of service, not merit, governed who would be laid off and who would be retained, a simple application of LIFO meant that few disputes arose in the implementation of layoff decisions. But if disputes occurred, the governmental agency that had (and has) exclusive authority over the enforcement of union-related public-sector labor laws,
In 2011, this all changed when, for the first time in Michigan history, the Legislature exercised its constitutional role and decided that the Legislature and local school boards, not the unions or administrative agencies, would decide which teachers should be retained and which should be laid off in the event of a reduction in force. The key to this historic change was to remove the subject of teacher layoffs from the realm of collective bargaining. Doing so had the twofold effect of (1) removing the unions as decision-makers on layoff-related issues and (2) by definition, making it unnecessary for MERC to review layoff-related cases because they no longer implicated public-sector labor laws.
To implement this dramatic shift in the law of teacher layoffs, the Legislature also mandated that Michigan's several hundred school boards make layoff decisions on the basis of merit, through the development of a mandated, comprehensive evaluation system for public school teachers. To make it perfectly clear that these decisions would be made by the local school boards, and not be sidetracked by administrative agencies, the Legislature took the additional and somewhat unusual precaution of explicitly saying how and by whom the layoff decisions could be reviewed.
As stated, MERC obviously would no longer have any reason to address this subject, and thus assert jurisdiction. And because the State Tenure Commission
In sum, the 2011 Amendments effected a massive redistribution of power in the realm of teacher layoffs—from teacher unions to the local school districts as decision-makers, and from administrative agencies to the courts as the only recourse to review challenged layoff decisions.
In these appeals, petitioners essentially seek to unmake the 2011 Amendments through a seldom used and nonbinding 1975 decision of our Court
Under the TTA, the STC had no legal authority to adjudicate layoff-related disputes because, as an administrative agency, the STC's powers are limited to those expressly granted by the Legislature.
The seasoned lawyers who act as administrative law judges (ALJs) for the state Department of Education adjudicated these cases, correctly, by holding what is obvious: the STC no longer has any warrant to address layoff-related disputes. However, the political appointees who made up the STC when it heard these appeals
By the simple expedient of claiming jurisdiction to adjudicate hundreds of layoff cases under a specious theory, the STC, if upheld, would surely preclude any school district from making the merit-based layoffs required under the 2011 Amendments. By this "legal" sleight of hand, the STC also attempted to ensure that it, not the courts, would review layoff-related cases,
We reject this unseemly power grab by the STC, and by doing so, reject its practical effect of overturning major, historic public-policy changes made by the people's representatives in the Legislature.
Petitioners, who initially numbered in the hundreds, are teachers who were laid off by respondents, their public-school-district employers. Respondents faced budgetary restrictions during 2011 and 2012, and accordingly reduced their staff sizes using the layoff method mandated by two sections of the Revised School Code
The petitioners in each case appealed the ALJs' decisions to the STC, and its political appointees (again, from a prior administration) rejected the ALJs' holdings in a series of orders entered in late 2012 and early 2013. The STC asserted that Michigan caselaw, which predated the 2011 Amendments, gave it jurisdiction over layoff claims that asserted "subterfuge" and that the 2011 Amendments did not revoke this jurisdiction. One commission member dissented and agreed with the conclusion of the ALJs that the STC did not possess jurisdiction over layoff cases.
Respondents appealed the STC orders in our Court in early 2013, and ask us to reverse the orders because the STC does not have jurisdiction over layoff-related cases. Petitioners assert that the STC has jurisdiction over layoff-related cases, and that our Court does not have jurisdiction to review these interlocutory orders of the STC. We consolidated petitioners' and respondents' appeals in April and May 2013 for administrative reasons.
These appeals therefore present two issues, both of which involve jurisdiction: (1) Does our Court have jurisdiction to review interlocutory orders of the STC and (2) did the STC wrongly assert that it has jurisdiction over layoff-related matters? The answer to both questions is clearly yes.
MCL 24.301, which, as part of the state Administrative Procedures Act, governs the judicial review of agency adjudications, states:
Accordingly, a Michigan court cannot review an interlocutory judgment of an administrative agency unless the agency's "final decision or order" will not "provide an adequate remedy." This exception to MCL 24.301's general prohibition on court review of interlocutory orders of administrative agencies is narrow.
These appeals therefore present a textbook illustration of the rare circumstance when our Court may hear an interlocutory appeal from the judgment of an administrative agency. Petitioners' assertion that we lack jurisdiction over these cases is simply wrong—it is a practiced effort to subvert legislative amendments that remove (very questionable) jurisdiction from an agency they prefer (the STC) and transfer power to a system they find less amenable (the Michigan judiciary).
The Court of Appeals unquestionably has jurisdiction over these cases pursuant to MCL 24.301 because a "final decision or order" from the STC will not "provide [respondents] an adequate remedy"—such an order is incapable of addressing the jurisdictional issue at the heart of these appeals.
Matters of statutory interpretation are reviewed de novo. People v. Lewis, 302 Mich.App. 338, 341, 839 N.W.2d 37 (2013). When it interprets a statute, a reviewing court seeks to ascertain and implement the intent of the Legislature. Huron Mountain Club v. Marquette Co. Rd. Comm., 303 Mich.App. 312, 323, 845 N.W.2d 523 (2013). The Legislature's intent is best expressed through the plain meaning of the statute's language. Ter Beek v. City of Wyoming, 495 Mich. 1, 8, 846 N.W.2d 531 (2014). Although courts may consider legislative history to discern legislative intent, "not all legislative history is of equal value," and those types of legislative history that "do not necessarily reflect the intent of the Legislature as a body" are "significantly less useful" than those that do. People v. Gardner, 482 Mich. 41, 57-58, 753 N.W.2d 78 (2008) (quotation marks and citation omitted).
Though an administrative agency's interpretation of a statute is entitled to "respectful consideration" and, if persuasive, "should not be overruled without cogent reasons," the agency's interpretation
"Statutes that address the same subject or share a common purpose are in pari materia and must be read together as a whole." People v. Harper, 479 Mich. 599, 621, 739 N.W.2d 523 (2007). Statutes enacted by the Legislature on a later date take precedence over those enacted on an earlier date. Parise v. Detroit Entertainment, LLC, 295 Mich.App. 25, 28, 811 N.W.2d 98 (2011). "When two statutes are in pari materia but conflict with one another on a particular issue, the more specific statute must control over the more general statute." Id. at 27-28, 811 N.W.2d 98 (quotation marks and citation omitted).
The STC's "jurisdiction and administrative expertise is limited to questions traditionally arising under the [TTA]," and it does not possess jurisdiction over disputes that arise under and are governed by separate legislative acts. Ranta v. Eaton Rapids Pub. Sch. Bd. of Ed., 271 Mich.App. 261, 273, 721 N.W.2d 806 (2006) (quotation marks and citation omitted).
Though the TTA specifically mentions "discharge" and "demotion"
Nonetheless—in violation of this statutory distinction between "layoffs" and "discharges" and "demotions"—one appellate decision, Freiberg v. Big Bay De Noc Sch. Dist. Bd. of Ed.,
In sum, the STC's jurisdiction is limited to issues that arise under the TTA. Ranta, 271 Mich.App. at 273, 721 N.W.2d 806. It does not possess jurisdiction over issues that do not arise under the TTA. Id. As of 2011, the STC's dubious and rarely exercised jurisdiction over layoff-related claims was based on a single appellate case—which is now nonbinding and void under the 2011 Amendments—not any plain statutory language contained in the TTA.
During the economic crisis that befell Michigan in the last decade, Michigan schools had new, significant budgetary constraints and faced declining enrollments, and were accordingly forced to lay off teachers. In 2011, the Michigan Legislature enacted a package of tie-barred amendments to the TTA, the Revised School Code, and PERA that clearly out-lined a teacher's rights and a school district's responsibilities in the event that a layoff became necessary. 2011 PAs 100,
Among other things, 2011 PA 103 amended part of PERA to read:
As a result, any layoff decision made under MCL 380.1248 and MCL 380.1249 cannot be the subject of a collective-bargaining agreement. The removal of layoffs from the collective-bargaining process by 2011 PA 103 thus also bars MERC from adjudicating layoff disputes as an unfair labor practice under PERA. 2011 PA 103 clearly closes these adjudicative paths by removing layoff-related matters from the collective-bargaining process, and emphasizing that the Revised School Code—not PERA or the TTA—governs teacher layoffs.
Instead, an aggrieved teacher laid off pursuant to MCL 380.1248 and MCL 380.1249 must look to those specific sections of the Revised School Code for the proper forum in which to bring a claim. In addition to specifying that the Michigan judiciary is the only forum in which a laid-off teacher may seek redress, MCL 380.1248 and MCL 380.1249 also detail a specific method by which local school districts must select teachers to be laid off.
2011 PA 102 amended the Revised School Code, which is a separate and distinct
2011 PA 102 is part of this broader legal framework and enacted a comprehensive revision of the Revised School Code's treatment of teacher layoffs through the addition of two new sections, MCL 380.1248 and MCL 380.1249. Section 1249 requires all Michigan school districts and intermediate school districts and the boards of directors of public school academies to adopt a "performance evaluation system" that assesses teacher effectiveness and performance and provides a detailed set of factors that any school district's performance evaluation system must include. Specifically, § 1249 requires that any performance evaluation system must rate its teachers in four classes, on the basis of their performance as a teacher: (1) "highly effective"; (2) "effective"; (3) "minimally effective"; or (4) "ineffective." MCL 380.1249(1)(c).
Section 1248 then mandates that all "policies regarding personnel decisions when conducting a staffing or program reduction"—i.e., layoffs—must be conducted on (1) the basis of the performance evaluation system the school district developed in compliance with § 1249; and (2) other specific factors listed in § 1248. See MCL 380.1248(1)(b)(i) through (iii) (emphasis added). "[L]ength of service or tenure status" cannot be a factor in making layoff decisions except in a tiebreaker context—i.e., when "all other factors distinguishing [two] employees from each other are equal, then length of service or tenure status may be considered as a tiebreaker." MCL 380.1248(1)(c).
In other words, if layoffs become necessary, § 1248 requires school districts to base their decision of which teachers to lay off on the effectiveness of each teacher. So, after conducting a performance evaluation using the criteria outlined in § 1249, a school district must rank its teachers in order, based on their success (or lack thereof) in the performance evaluation. The teachers who received the lowest performance ranking ("ineffective") will be laid off before those who received higher performance rankings. The statutory mandate anticipates that talented and more effective teachers will be retained, while mediocre and ineffective teachers will be laid off.
If a teacher challenges his employer's decision to lay him off, § 1248 provides him with a "sole and exclusive" remedy:
The use of the terms "sole and exclusive remedy" and "court" makes it clear beyond peradventure that administrative agencies, be it MERC or the STC, no longer have any role in reviewing layoff decisions made by school boards.
As noted, the STC only possesses jurisdiction over matters that arise under the TTA. Ranta, 271 Mich.App. at 273, 721 N.W.2d 806. It does not have jurisdiction over matters that arise under any other statute. Id. Accordingly, if a subject matter is not contained in the TTA, the STC does not have jurisdiction over that subject matter. Recall that even before the 2011 Amendments, the STC rarely exercised jurisdiction over cases involving layoffs, and had little statutory basis to do so. Whatever jurisdictional authority it had to address layoff-related claims came from the "subterfuge" doctrine, mentioned nowhere in the TTA, and advanced by a single appellate decision.
2011 PA 100 made it clear that if the STC ever had jurisdiction over layoffs, it no longer has jurisdiction over layoff-related claims. It is not possible to equate the "discharge" action mentioned in MCL 38.101 with a "layoff," as the two terms are separate and distinct. See Tomiak, 426 Mich. at 688, 397 N.W.2d 770. And to dispel any lingering suggestion that the word "demote" could include "layoffs," 2011 PA 100 revised the TTA's definition of "demote" to read as follows:
Thus, by definition, a school that lays off a teacher does not "demote" that teacher in the context of the TTA. The STC is therefore barred from using MCL 38.74 as a jurisdictional hook to hear layoff-related cases.
With MCL 38.74 accordingly modified, 2011 PA 101 repealed MCL 38.105, which governed "reductions in personnel"—the last remaining statutory section of the TTA that could conceivably (but wrongly) be seen as having anything to do with teacher layoffs. The TTA—which, again, never contained the word "layoff"—is now devoid of any reference to "reductions in personnel," meaning that it is beyond doubt that the STC lacks jurisdiction over cases that involve such issues.
The 2011 Amendments also revoked any jurisdictional basis that Freiberg provided the STC in so-called "subterfuge" cases. As noted, Freiberg based its dubious grant of jurisdiction to the STC on the following: (1) "the general purpose of the tenure act"; (2) MCL 38.121; (3) supposedly "analogous" decisions of the Michigan Supreme Court in cases involving layoffs of private-sector employees; and (4) MCL 38.105. See Freiberg, 61 Mich.App. at 412-414, 232 N.W.2d 718.
Collectively, the 2011 Amendments invalidate each of these alleged bases for
Accordingly, the statutory framework that Freiberg purported to interpret has been significantly modified, rendering that decision moot and void. See Detroit Trust Co. v. Allinger, 271 Mich. 600, 610, 261 N.W. 90 (1935) ("The repeal of a statute divests all inchoate rights which have arisen under the statute which it destroys.").
The effect of 2011 PA 100 and 101, then, is to make clear that the STC does not have jurisdiction over layoff-related claims, including those alleged to be a "subterfuge," because layoffs of teachers are explicitly governed by §§ 1248 and 1249 of the Revised School Code—not the TTA. Accordingly, a laid-off teacher must seek redress for violations of MCL 380.1248 and MCL 380.1249 with the judiciary, not administrative agencies.
Here, petitioners argue that the STC has jurisdiction over layoff-related claims. Their reasoning is as follows: the STC has exercised jurisdiction over a small number of layoff cases under the "subterfuge" doctrine created by Freiberg. Thus, whenever a teacher alleges that his layoff was a bad-faith attempt to terminate him without an administrative hearing, the STC can claim jurisdiction over the suit. The statutory basis for the STC's jurisdiction over these sorts of actions, as explained by Freiberg, is MCL 38.121, which permits teachers to "appeal to the [STC] any decision of a controlling board under this act, other than a decision governed by article
This argument is without merit because it fails to read MCL 38.121 in its post-2011 Amendments context. Again, MCL 38.121 states that tenured teachers may "appeal to the [STC] any decision of a controlling board under this act...." (Emphasis added.) As noted, layoffs are not (and never were) "under" the TTA—the 2011 Amendments systematically purged the act of references to any terms that could conceivably have had anything to do with layoffs, and created two new sections of the School Code (a statute wholly separate from the TTA) to govern layoff decisions. See MCL 380.1248 and 380.1249. MCL 380.1248 explicitly specifies a single remedy for laid-off teachers who contest their layoffs:
The STC cannot be such a "court of competent jurisdiction" because it only possesses jurisdiction over matters that arise under the TTA, which does not govern teacher layoffs—and, more importantly, most assuredly is not a court. Ranta, 271 Mich.App. at 273, 721 N.W.2d 806. Thus, the continued existence of MCL 38.121 does nothing to advance petitioners' argument. It states a truism—the STC has jurisdiction over decisions made by a "controlling board" on subjects that are governed by the TTA—that is inconsequential to this case.
As we pointed out earlier, petitioners' invocation of Freiberg is equally irrelevant, because Freiberg's interpretation of the TTA rested on statutory provisions that have since been repealed or modified. As noted, the 2011 Amendments repealed MCL 38.105, the slim statutory authority on which Freiberg based its holding. The "general purpose of the tenure act" that Freiberg cited has been radically altered because that act now makes clear that it does not govern teacher layoffs. MCL 38.121 is of no relevance to our case, as explained above, and Freiberg's reference to supposedly "analogous" Michigan Supreme Court cases is of equal irrelevance, because teacher layoffs are now governed by their own statutory framework, not unrelated Michigan statutes or common law.
In sum, the 2011 Amendments have rendered Freiberg's holding void. There is no better illustration of the Michigan Supreme Court's holding in Detroit Trust, 271 Mich. at 610, 261 N.W. 90: "The repeal of a statute divests all inchoate rights which have arisen under the statute which it destroys."
The STC thus improperly exercised jurisdiction over petitioners' suits. In so doing, it blatantly ignored the 2011 Amendments and contravened the will of
For the first time in Michigan's history, the Legislature decided to exercise its constitutional authority
Accordingly, we reject the STC's attempt to undo this landmark legislation and hold that (1) our Court has jurisdiction over respondents' appeals of the STC's interlocutory orders and (2) the STC does not have jurisdiction over claims related to the layoff of tenured teachers. We therefore reverse the orders of the STC and dismiss petitioners' suits.
DONOFRIO, P.J., and METER, J., concurred with SAAD, J.
See also Huggett, 232 Mich.App. at 192, 590 N.W.2d 747, and Citizens for Common Sense in Gov't v. Attorney General, 243 Mich.App. 43, 52-53, 620 N.W.2d 546 (2000).
For all intents and purposes, it appears that the phrase "necessary reduction in personnel" in MCL 38.105 meant "layoff." See Tomiak v. Hamtramck Sch. Dist., 426 Mich. 678, 688, 397 N.W.2d 770 (1986) (holding that a "necessary reduction in personnel" as used in MCL 38.105 is not a "discharge" or "demotion," and explicitly using the term "layoff" as a placeholder for "necessary reduction in personnel"). But again, this provision did not give the STC jurisdiction to adjudicate layoff-related disputes. And in any event, MCL 38.105 was repealed by 2011 PA 101, so it is of no relevance to these appeals.
Here, however, the Michigan precedent interpreting the old version of the statute at issue (Freiberg) was issued by our Court—not the Michigan Supreme Court. Vertical stare decisis is thus not implicated. Accordingly, we may disregard Freiberg's holding because (1) the statutory framework that it purported to interpret has been completely altered and (2) it is no longer binding on our panel.