KIMBALL, C.J.
This matter is before us pursuant to this Court's appellate jurisdiction over cases in which a law has been declared unconstitutional by the district court. LA. CONST. art. V, § 5(D). The district court granted in part the Louisiana High School Athletic Association, Inc.'s (LHSAA's) Motion for Summary Judgment, declaring La. R.S. 17:176(F), La. R.S. 17:176(G), and La. R.S. 17:236.3 (Title 17 statutes) are unconstitutional because they are prohibited special laws under La. Const. art. III, § 12(A). The district court further denied in part the LHSAA's Motion for Summary Judgment to the extent the LHSAA requested a declaration it is not a "quasi public agency or body" as defined by La. R.S. 24:513(A)(1)(b)(v), and to the extent it requested a declaration La. R.S. 24:513(J)(4)(a) and (b) and La. R.S. 24:513(A)(1)(b)(v) (Title 24 statutes) are unconstitutional. For the reasons that follow, we affirm the district court's ruling insofar as it granted the LHSAA's Motion for Summary Judgment in part and found the Title 17 statutes are unconstitutional pursuant to La. Const. art. III, § 12(A)(7). We reverse the district court's ruling to the extent it denied the LHSAA's Motion for Summary Judgment and found the Title 24 statutes applicable and constitutional. We find La. R.S. 24:513(A) does not apply to the LHSAA because it is not a "quasi public body," as defined by the statute. We also find La. R.S. 24:513(J)(4)(a) and (b) are unconstitutional under the Equal Protection Clause.
On September 28, 1988, the LHSAA was formed as a Louisiana nonprofit corporation. Prior to its 1988 incorporation, the LHSAA was an unincorporated association, operating under the same name since 1920. The LHSAA was organized by a group of principals to promote and regulate interscholastic athletic competition. The LHSAA's membership consists of high schools within Louisiana, which apply and are approved for membership in accordance with its articles of incorporation, constitution, and bylaws. The member schools of the LHSAA include private and public schools, and the private schools include religious and nonreligious schools. Each school that joins the LHSAA does so voluntarily and is not compelled to join by any state law.
The LHSAA asserted it was not the only private athletic association of high schools operating in the State of Louisiana. According to the LHSAA, another association recognized and approved by the Louisiana Department of Education is the Mississippi Private High School Association (MPHSA), which consists of approximately thirty-one Louisiana high schools.
The LHSAA further asserted the LLA had claimed the authority to audit the LHSAA's financial records under La. R.S. 24:513(A)(1)(b)(v)
On June 1, 2011, the LHSAA filed a Motion for Summary Judgment, seeking a judgment as prayed for in its petition. Its motion was opposed by the State, BESE, and the LLA, but defendants chose not to file a cross-motion for summary judgment. The hearing on the Motion for Summary Judgment was held August 29, 2011, and the district court took the matter under advisement. On November 28, 2011, the district court issued a written ruling granting the LHSAA's summary judgment motion in part and denying it in part. On March 22, 2012, the district court signed a judgment, granting in part and denying in part the LHSAA's Motion for Summary Judgment for the reasons assigned on November 28, 2011. The district court granted the motion in part and declared the Title 17 statutes are unconstitutional because they violate Article III, § 12 of the Louisiana Constitution. The district court denied the LHSAA's Motion for Summary Judgment to the extent the LHSAA requested a declaration that it is not a "quasi public agency or body" as defined by La. R.S. 24:513(A)(1)(b)(v), and to the extent it requested a declaration that La. R.S. 24:513(J)(4)(a) and (b) and La. R.S. 24:513(A)(1)(b)(v) are unconstitutional.
In written reasons for judgment, the district court first addressed the Title 24 statutes, finding them applicable and constitutional in this case. The district court concluded the LHSAA is a "quasi public body" for the limited purpose of La. R.S. 24:513(A)(1)(a) and La. R.S. 24:513(J)(4)(a), as defined by La. R.S. 24:513(A)(1)(b)(v), because it is subject to the Open Meetings Law, La. R.S. 42:11 et seq.,
The district court also cited Property Insurance Association of Louisiana v. Theriot, which was decided after Spain and enumerated factors that must be considered when determining whether an entity is private or public. 09-1152 (La.3/16/10), 31 So.3d 1012 (PIAL). The district court concluded PIAL did not overrule Spain because Spain involved a specific statute that defined the conditions under which an entity may be deemed public for limited purposes and PIAL did not. The district court pointed out the Court in Spain held the LHSAA is partially funded by public money earned by state schools under their control at their athletic events and that there is a connexity between the regulatory functions of the LHSAA and a public body. The district court also found it "necessary to note" all employees of the LHSAA are allowed by legislative enactment to participate in the State of Louisiana Teacher's Retirement System,
The district court also denied the LHSAA's claims that the Title 24 statutes violate its right to equal protection and due process. The written reasons for judgment do not provide any reasoning for this conclusion except that the district court found the statutes "serve both a legitimate state purpose and a rational basis."
Turning next to the Title 17 statutes, the district court found that unlike the Title 24 statutes, defendants cite no specific underlying statutory authority that allows the Legislature to interfere with the internal operations of the LHSAA by enacting these statutes. The district court looked to the factors enumerated in PIAL to determine the status of the LHSAA and concluded it is a private entity. The district court subsequently found all three statutes are unconstitutional under La. Const. art. III, § 12 because they had the effect of changing, modifying or
Before the March 22, 2012, judgment was entered in conformity with the written ruling, the LHSAA filed a Motion to Clarify Court's Ruling and/or in the Alternative Motion for New Trial on December 6, 2011. The LHSAA sought clarification insofar as the district court declared it to be a "quasi public body" subject to the provisions of La. R.S. 24:513(A)(1)(b)(v), La. R.S. 24:513(J)(4)(a), and La. R.S. 24:513(A)(1)(a). The LHSAA asserted such a declaration was not requested in its Motion for Summary Judgment, nor did the defendants move for summary judgment on that issue. According to the LHSAA, the district court's ruling should have simply stated its Motion for Summary Judgment seeking a declaration it is not a "quasi public body" is denied. Following a hearing on February 13, 2012, the motion was denied by a judgment signed on February 16, 2012.
The State and BESE (collectively "appellants"), but not the LLA, filed a timely Motion for Suspensive Appeal on April 19, 2012.
In their brief to this Court, appellants assert the district court erred as a matter of law in declaring the Title 17 statutes are unconstitutional. Appellants contend the legislature had the authority to enact the statutes because education and athletics are within the regulatory scope of the State. See Spain, 398 So.2d 1386. Since the Title 17 statutes clarify certain eligibility rules, appellants maintain they are neither arbitrary nor capricious and are rationally related to the important state interests of education and promoting high school athletics. Appellants contend the statutes do not violate the Equal Protection Clause because they do not treat the LHSAA different from other similarly situated associations.
In the LHSAA's memorandum filed in support of its Motion for Summary Judgment, the LHSAA asserted the Title 17 statutes violate its right to equal protection because they do not apply to other similar organizations, such as the Mississippi Association of Independent Schools (MAIS), which is a high school athletic association that operates in Mississippi, Louisiana, and Arkansas, and has eighteen
Appellants further argue the Title 17 statutes do not offend La. Const. art. III, § 12(A)(7) because they are not special or local laws and they do not amend the charter of a private corporation. Appellants contend the statutes are general laws because they pertain to matters of significant interest to the entire state and affect all Louisiana residents, even if some only indirectly. See Polk v. Edwards, 626 So.2d 1128, 1134 (La.1993). The statutes also do not amend the charter of the LHSAA because they only affect certain eligibility rules and the definition of terms in the LHSAA's bylaws. According to appellants, Black's Law Dictionary defines "charter" as "an instrument that establishes a body politic or other organization, or that grants rights, liberties, or powers to its citizens or members." BLACK'S LAW DICTIONARY 250 (8th ed.2004). Another definition of "charter" is "a governmental act that creates a business or defines a corporate franchise; also, the document evidencing this act." A third definition of "charter" is "the organic law of an organization; loosely the highest law of any entity." A "corporate charter" is defined as the "certificate of incorporation." Id. Appellants argue the instrument that established the LHSAA is its articles of incorporation, not its bylaws. Thus, the LHSAA's charter was not unconstitutionally amended by the Title 17 statutes. Appellants point out the district court declared the "rules, regulations and bylaws" of the LHSAA were affected, but it did not mention the articles of incorporation. Since the statutes are susceptible of a meaning which would maintain their constitutionality, appellants assert the district court erred in not adopting that interpretation. See City of New Orleans v. Louisiana Assessors' Ret. & Relief Fund, 05-2548 (La. 10/1/07), 986 So.2d 1.
The LLA filed a separate brief, asserting the district court properly found the LHSAA was subject to the LLA's audit. The Title 24 statutes allow the LLA to "compile financial statements and to examine, audit, or review the books and accounts of ... public or quasi public agencies or bodies." La. R.S. 24:513(A)(1)(a). A "quasi public agency or body" includes "[a]ny organization, either not-for-profit or for profit, which is subject to the open meetings law and derives a portion of its income from payments received from any public agency or body." La. R.S. 24:513(A)(1)(b)(v). The LLA contends the LHSAA is a quasi public entity because it is subject to the Open Meetings Law and some of its membership dues come from public high schools. The LHSAA also receives a percentage of the gate receipts of many major tournaments, championships, playoff games, etc., and the proper use of those funds is a legitimate State interest or public concern. The LLA asserts the LHSAA's distinction between self-generated and appropriated funds is not supported by law because if the Legislature intended the LLA to audit only those entities which receive tax-appropriated funds, it would have written the statute differently.
The Department of Education and the Governor filed an amicus brief, arguing the LHSAA performs a major policymaking, advisory, and administrative function within public education, a subject under the Legislature's control. LA. CONST. art. VIII, § 1. The amici assert the LHSAA is a quasi public organization, carrying out activities which fall within the Legislature's authority. High school athletics are a matter of public interest due to the important role athletics play in the State's education system, and specifically because of the relationship between student eligibility and the State's education reform efforts. The amici assert the Title 17 and Title 24 statutes are sound education policy, enacted by the Legislature in an exercise of its constitutional authority to provide education for the people of the State. Having to forego participation in high school athletics would deter many parents of student-athletes from exercising school choice, including home schooling. Such a deterrent thwarts the Legislature's efforts to improve public schools by forcing them to face increased competition for students and parents choosing the best learning environment for their children. The amici point out other states have enacted similar legislation requiring state high school athletic associations to allow home school and private school students to participate in public school interscholastic sports.
In response, the LHSAA contends the district court properly held the Title 17 statutes violate equal protection, due process, and La. Const. art. III, § 12. The LHSAA maintains all of the same arguments it raised at the district court, but primarily argues the Title 17 statutes violate La. Const. art. III, § 12 because they change the eligibility rules adopted by members of the LHSAA. The LHSAA asserts its articles of incorporation specifically state the organization will be governed by its constitution and bylaws, such that any change to its bylaws constitutes a change to its charter. In support, the LHSAA cites Trustees of Dartmouth College v. Woodward, (U.S.N.H.), 17 U.S. 518, 4 Wheat. 518, 4 L.Ed. 629 (1819), in which the Supreme Court held the school charter was a contract and the New Hampshire Legislature's amendment to the charter was unconstitutional because it impaired the obligation of the contract. The LHSAA argues that by changing its internal rules, the Louisiana Legislature has confiscated a private organization without notice or just compensation.
The LHSAA contends there is no merit to appellants' argument that the Title
The LHSAA also raises three assignments of error on appeal, asserting the district court erred in finding the Title 24
The LHSAA also contends the district court erred by not finding the Title 24 statutes are unconstitutional for the same reasons it found the Title 17 statutes are unconstitutional.
This appeal involves a review of the district court's ruling partially granting the LHSAA's Motion for Summary Judgment and declaring the Title 17 statutes are unconstitutional. It also requires our review of the district court's partial denial of the LHSAA's Motion for Summary Judgment regarding the applicability and constitutionality of the Title 24 statutes.
We will first conduct a constitutionality review of the Title 17 statutes. Statutes are generally presumed to be constitutional, and the party challenging the validity of the statute bears the burden of proving it is unconstitutional. State of Louisiana v. Hatton, 07-2377 (La.7/1/08), 985 So.2d 709, 719 (citing State v. Fleury, 01-0871, p. 5 (La.10/16/01), 799 So.2d 468, 472; State v. Brenner, 486 So.2d 101, 102 (La.1986); State v. Rones, 223 La. 839, 67 So.2d 99, 105 (1953)). Since the provisions of the Louisiana Constitution are not grants of power but instead are limitations on the otherwise plenary power of the people, exercised through the Legislature, the Legislature may enact any legislation the constitution does not prohibit. City of New Orleans v. Louisiana Assessors' Ret. & Relief Fund, 05-2548, pp. 11-12 (La. 10/1/07), 986 So.2d 1, 12 (citing Louisiana Mun. Ass'n v. State, 04-0227, p. 45 (La.1/19/05), 893 So.2d 809, 842; Polk v. Edwards, 626 So.2d 1128, 1132 (La.1993); Bd. of Comm'rs of Orleans Levee District v. Dept. of Natural Resources, 496 So.2d 281, 286 (La.1986)). This Court has consistently held legislative enactments are presumed valid and their constitutionality should be upheld when possible. Hatton, 07-2377 at 14, 985 So.2d at 719 (citing State v. Caruso, 98-1415, p. 1 (La.3/2/99), 733 So.2d 1169, 1170). Due to this presumption, a party challenging the constitutionality of a statute must cite the specific constitutional provision that prohibits the legislative action. State v. Granger, 07-2285, p. 8 (La.5/21/08), 982 So.2d 779, 786.
A different standard of review will apply to our review of the district court's partial denial of the LHSAA's Motion for Summary Judgment, since the district court did not declare the Title 24 statutes are unconstitutional. A motion for summary judgment may be granted if, and only if, "the pleadings, depositions, answers to interrogatories, and admissions, together with the affidavits, if any, show that there is no genuine issue as to material fact, and that the mover is entitled to judgment as a matter of law." La. C.C.P. art. 966(B). The summary judgment procedure is favored in Louisiana and is designed to secure the just, speedy, and inexpensive determination of actions. La. C.C.P. art. 966(A)(2). Appellate courts review a judgment granting or denying a motion for summary judgment de novo. Bonin v. Westport Ins. Corp., 05-0886, p. 4 (La.5/17/06), 930 So.2d 906, 910. Thus, appellate courts must ask the same questions the district court does in determining whether summary judgment is appropriate: whether there is any genuine issue of material fact, and whether the mover is entitled to judgment as a matter of law. Hood v. Cotter, 08-215, p. 9 (La.12/2/08), 5 So.3d 819, 824. The party seeking summary judgment has the burden of proving there is no genuine issue of material fact. If the movant satisfies the initial burden, the burden shifts to the party opposing summary judgment to present factual support sufficient to show he will be able to satisfy the evidentiary burden at trial. Suire v. Lafayette City-Parish Consolidated Government, 04-1459, pp. 26-27
Article III, Section 12 of the Louisiana Constitution prohibits the Legislature from passing a local or special law regarding certain enumerated subjects, including amending, renewing, extending, or explaining the charter of a private corporation. LA. CONST. art. III, § 12(A)(7). While the Constitution does not define "local or special law," in recent years this Court has made it clear that the terms are distinctive. Arshad v. City of Kenner, 11-1579, p. 6 (La.1/24/12), 95 So.3d 477, 482; Deer Enter., LLC v. Parish Council of Washington Parish, 10-0671, p. 4 (La.1/19/11), 56 So.3d 936, 941; Kimball v. Allstate Ins. Co., 97-2885, p. 4 (La.4/14/98), 712 So.2d 46, 50. The terms "local" and "special" are used in contradistinction to the term "general." Deer Enter., 10-0671 at 5, 56 So.3d at 942 (citing Louisiana Paddlewheels v. Louisiana Riverboat Gaming Comn., 94-2015, p. 7 (La.11/30/94), 646 So.2d 885, 889). General laws are those that operate "equally and uniformly upon all persons brought within the relations and circumstances for which they provide or that operate equally upon all persons of a designated class founded upon a reasonable and proper classification." Arshad, 11-1579 at 6, 95 So.3d at 482 (citing Deer Enter., 10-0671 at 5, 56 So.3d at 942 (quoting Polk, 626 So.2d at 1134)); Kimball, 97-2885 at 4, 712 So.2d at 50 (citations omitted). The ultimate distinction between general laws and local or special laws is that the former affect the community as a whole, whether throughout the State or one of its subdivisions; and the latter affect private persons, private property, private or local interests. Deer Enter., 10-0671 at 6, 56 So.3d at 942 (citing Louisiana Paddlewheels, 646 So.2d at 889 (citing Polk, 626 So.2d at 1135)).
Generally, this Court applies a two-prong approach to determine whether a statute is unconstitutional under La. Const. art. III, § 12. The Court first considers whether the statute is a prohibited local or special law. If it is, the Court must then determine whether the statute concerns a prohibited subject matter listed in Article III, Section 12. As in Deer Enter., it is unclear in this case whether the district court found the Title 17 statutes are unconstitutional as special or local laws. The district court's judgment provides "plaintiff's Motion for Summary Judgment is granted in part declaring that La. R.S. 17:176(G), La. R.S. 17:176(F), and La. R.S. 17:263.3 are unconstitutional, as those statutes violate Article III, section 12 of the Louisiana Constitution." The district court's written reasons for judgment do not offer any clarity, merely stating, "[t]he State's conduct that modified, amended, extended, and/or explained the provisions of this private entity's bylaws is a violation of Article 3 Section 12 of the Louisiana Constitution, which prohibits the Legislature from passing any law that amends, changes, or explains the charters of any private corporation." Given the district court's ambiguity as to whether these statutes constitute local or special laws, we must analyze both possibilities.
When the operation of a law is limited to certain parishes, it is immediately suspect as a local law. Deer Enter., 10-0671 at 6, 56 So.3d at 942 (citing Kimball, 712 So.2d at 51) (internal citations omitted). A statute is generally considered to
It is evident from the plain language of the Title 17 statutes that their operation is not limited to a particular locality or localities within the state. Each statute concerns a specific eligibility rule of the LHSAA, thereby making it applicable solely to the LHSAA and its member schools throughout the state. To illustrate, La. R.S. 17:176(F) provides in pertinent part:
Similarly, La. R.S. 17:176(G) states:
Finally, La. R.S. 17:236.3(A) provides in pertinent part:
Thus, the statutes apply in every parish in which an LHSAA member school is located. According to the LHSAA's 2010-2011 Official Handbook, the LHSAA is composed of 396 member schools across the State of Louisiana. People throughout the state are affected by these laws because
A special law confers special privileges or imposes peculiar disabilities or burdensome conditions in the exercise of a common right upon a class of persons arbitrarily selected from the general body of those who stand in precisely the same relation to the subject of the law. Deer Enter., 10-0671 at 9, 56 So.3d at 943-44 (citing Kimball, 97-2885 at 6, 712 So.2d at 52). A law is special if it "affects only a certain number of persons within a class and not all persons possessing the characteristics of the class." Deer Enter., 10-0671 at 9, 56 So.3d at 944 (citing Teachers' Retirement System of Louisiana v. Vial, 317 So.2d 179, 183 (La.1975)). Moreover, a special law is "directed to secure some private advantage or advancement for the benefit of private persons." Id. (citing Teachers' Retirement System, 317 So.2d at 183). This Court has explained that the prohibition on special laws "represents an important safeguard against the abuse of legislative power on behalf of special interests." Deer Enter., 10-0671 at 9, 56 So.3d at 944 (citing Teachers' Retirement System, 317 So.2d at 183); Polk, 626 So.2d at 1135.
Appellants contend the Title 17 statutes are general laws because they pertain to a matter of significant interest to the entire state and affect all persons throughout the state, specifically all student-athletes, even if some only indirectly. We disagree. These statutes do not "operate equally and uniformly upon all persons brought within the relations and circumstances for which they provide" because they do not apply uniformly to all athletic associations or student-athletes in Louisiana. Arshad, 11-1579 at 6, 95 So.3d at 482. The statutes do not apply to other athletic associations operating in Louisiana, such as the MAIS, the LHSRA, or the LCSAA. While these other organizations are smaller than the LHSAA, they perform the same function of regulating interscholastic athletic competitions involving Louisiana high schools. By making these statutes applicable only to the LHSAA, the Legislature has effectively denied the LHSAA, a Louisiana corporation, the privilege of creating its own internal rules and regulations while preserving the rights of other athletic associations to do so. Thus, we conclude these Title 17 statutes are special laws.
We must next turn our attention to whether the Title 17 statutes are special laws that concern a prohibited subject matter listed in La. Const. art. III, § 12(A). Pursuant to La. Const. art. III, § 12(A)(7), the legislature is prohibited from passing a local or special law "[c]reating private corporations, or amending, renewing, extending, or explaining the charters thereof." Although the defendants do not appear to contest the fact that the LHSAA is a private corporation, it is abundantly clear that the LHSAA is a private corporation under this Court's ruling in PIAL. The issue before the Court in PIAL was whether the Property Insurance Association of Louisiana is a public or
Applying the Smith factors to this case, it is clear the LHSAA is a private entity. The LHSAA was not created by the Legislature, but by a group of high school principals who wanted to better regulate and develop the high school interscholastic athletic program in Louisiana. The association was composed of Louisiana high schools who applied and were approved for membership, thereby agreeing to be bound by the rules and regulations promulgated by the LHSAA. The LHSAA's powers derive exclusively from the constitution and internal rules approved by its initial member schools. In 1988, the LHSAA received a corporate charter from the Secretary of the State of Louisiana, in compliance with general state corporation law. Thus, the powers of the LHSAA are now specified in its articles of incorporation, as filed with the Secretary of the State of Louisiana. The defendants do not contend the Legislature created or defined the powers of the LHSAA. Since all four of the Smith factors must be met and the first two factors have not been met in this case, we conclude the LHSAA is a private corporation.
Having determined the LHSAA is a private corporation, we must determine whether the Title 17 statutes "amend, renew, extend, or explain" the LHSAA's charter. Article XI of the LHSAA's articles of incorporation provides in pertinent part:
Pursuant to Article XI, the LHSAA's charter specifically states its bylaws can only be amended by a majority vote of its members present and voting at a regular meeting. The Official Handbook of the LHSAA, and the rules contained therein, constitute the LHSAA's bylaws.
We find the Title 17 statutes amend the LHSAA's bylaws because they specifically amend certain eligibility rules. More specifically, La. R.S. 17:176(G) amends the "Bona Fide Change of Residence" rule, Rule 1.15 in the 2010-2011 Official Handbook, because it defines the word "family," as used therein. Subsection F amends the bylaws because it creates an exception to the LHSAA's residence and transfer rules.
It is evident to this Court that by enacting these statutes, the Legislature has amended the bylaws of the LHSAA. The LHSAA's articles of incorporation, which constitute its charter from the State, specify that the bylaws can only be amended by a majority vote of the member schools. By changing the bylaws, the Legislature has amended the LHSAA's charter such that its bylaws can now be modified by a majority vote of its member schools or by the Legislature. Thus, the Title 17 statutes constitute prohibited special laws that amend or explain the charter of a private corporation. We therefore affirm the portion of the district court's judgment granting the LHSAA's Motion for Summary Judgment and declaring La. R.S. 17:176(F), La. R.S. 17:176(G), and La. R.S. 17:236.3 unconstitutional.
Since we have found the Title 17 statutes are unconstitutional under La. Const. art. III, § 12(A)(7), we need not address the LHSAA's equal protection or due process claims.
The portion of the district court's judgment denying the LHSAA's Motion for Summary Judgment regarding the applicability and constitutionality of the Title 24 statutes is generally a non-appealable, interlocutory judgment. La. C.C.P. arts. 968 and 2083. This Court has held, however, that an interlocutory ruling is reviewable on appeal of a final, appealable judgment in the case. People of the Living God v. Chantilly Corp., 251 La. 943, 207 So.2d 752, 753 (1968). In the instant case, the district court designated its judgment granting the LHSAA's Motion for Summary Judgment in part as a final judgment under La. C.C.P. art. 1915(b). Since the parties appealed a final judgment in this case, it is appropriate for this Court to review the correctness of the district court's denial in part of the LHSAA's Motion for Summary Judgment.
The main issue raised by the LHSAA's Motion for Summary Judgment is whether La. R.S. 24:513(A)(1)(b)(v), defining a "quasi public agency or body," is applicable to the LHSAA. The statute gives the LLA the authority to examine the books and accounts of "[a]ny organization, either not-for-profit or for profit, which is subject to the open meetings law and derives a portion of its income from payments received from any public agency or body." Thus, whether the statute applies to the LHSAA depends upon whether the LHSAA is subject to the Open Meetings Law and receives public funding. See La. R.S. 42:11 et seq. The district court's judgment does not answer this question, as it merely denied the LHSAA's motion "to the extent [the LHSAA] requests a declaration that it is not a quasi public agency or body as defined by La. R.S. 24:513(A)(1)(b)(v)." In written reasons for judgment, however, the district court reached the merits of this issue by writing:
Thus, the district court found both statutory requirements were met and denied the LHSAA's Motion for Summary Judgment in part because it found the LHSAA is a "quasi public body" under La. R.S. 24:513(A)(1)(b)(v).
At the outset, we must clarify that our previous finding that the LHSAA is a private entity under the factors set forth in PIAL does not affect our determination of whether the LHSAA is a "quasi public agency or body" pursuant to La. R.S. 24:513(A)(1)(b)(v). This Court recently explained in PIAL that it did not apply the Smith factors in Spain because "[W]e were solely concerned with whether the LHSAA was a public body as defined by statute." 09-1152 at 12, 31 So.3d at 1020. In Spain, this Court held that even though prior cases had stated the LHSAA is a private, voluntary association, those cases, "did not deal with a positive legislative pronouncement which defined the conditions under which an entity must be deemed `public' for a limited purpose. Since such a pronouncement is present in this case, the appellation `private, voluntary association' cannot preclude the application of the Open Meetings Law." 398 So.2d at 1390-91 (citing Seghers v. Cmty. Advancement, Inc., 357 So.2d 626 (La.App. 1 Cir.1978)). The Court in PIAL noted that there was no such positive legislative announcement at issue in the case. 09-1152 at 12, 31 So.3d at 1020.
In the instant case, like in Spain, there is a specific legislative pronouncement defining the conditions under which an entity will be deemed a "quasi public agency or body" for the limited purpose of being subject to the authority of the LLA. Thus, we must look to La. R.S. 24:513(A)(1)(b)(v) to determine whether the district court correctly concluded the LHSAA is a "quasi public body" for the limited purpose of La. R.S. 24:513(A).
It is clear from the district court's reasons for judgment that it relied heavily upon Spain in concluding the LHSAA is a "quasi public body" under La. R.S. 24:513(A)(1)(b)(v). The sole issue before the Court in Spain was whether the Open Meetings Law applied to the LHSAA, which at that time was an unincorporated association. 398 So.2d 1386. When Spain was decided, the Open Meetings Law provided that "every `meeting' of any `public body' shall be open to the public unless excepted by law." La. R.S. 42:5.
The Court began its analysis by looking at La. R.S. 42:4.1,
Spain, 398 So.2d at 1390. Recognizing that the term "public officials" was not defined in the Open Meetings Law, the Court concluded it is an "obvious reference" to the term "public officer" found in La. R.S. 42:1. The statute defines "public officer" as any person holding a public office in the state, and defines "public office" as, "any state, district, parish or municipal office, elective or appointive, or any position as member on a board or commission, elective or appointive, when the office or position is established by the constitution or laws of this state." The Court in Spain held, "[s]ince BESE and school board members are public officers and the boards are public bodies, R.S. 42:4.1 is clearly designed to insure that citizens be permitted to observe their deliberations." 398 So.2d at 1390. The Court further noted La. R.S. 42:5 provides that each public body shall be prohibited from utilizing any means to circumvent the intent of the act. To protect these goals, the Court held it must construe the terms "committee" and "subcommittee" liberally. Spain, 398 So.2d at 1390.
The Court in Spain ultimately concluded the LHSAA and its official committees and subcommittees in their then-existing form constituted collective committees or subcommittees of the parish school boards or BESE for the purposes of the Open Meetings Law. 398 So.2d at 1390. The Court explained:
Id. (internal citations omitted). The Court held the LHSAA was a public body and therefore, subject to the Open Meetings Law.
Since Spain has never been overruled, appellants argued, and the district court agreed, that the LHSAA is still a "public body" subject to the Open Meetings Law. We disagree, finding the reasoning
Instead, the Court focused on the "connexity between the regulatory functions of the LHSAA and the regulatory functions of a particular `public body' found in R.S. 42:4.2(A)(2)." The Court held the connexity, "is close since the LHSAA performs a major policy-making, advisory and administrative function in an area that is within the primary control of public bodies listed in the Open Meetings Law." 398 So.2d at 1390. This "connexity" factor, however, is absent from the statutory definition of "public body." The statutory definition includes "any other state, parish, municipal, or special district boards, commissions, or authorities, and those of any political subdivision thereof, where such body possesses policy making, advisory, or administrative functions, including any committee or subcommittee of any of these bodies enumerated in this Paragraph." The statute, however, does not set forth any specific factors to be used in determining whether a body is a committee or subcommittee of any of the bodies enumerated in the statute.
The appropriate starting point for statutory interpretation is the language of the statute itself. State v. Expunged Record (No.) 249,044, 03-1940, p. 4 (La.7/2/04), 881 So.2d 104, 107; In re Louisiana Health Service and Indemnity Company, 98-3034, p. 10 (La.10/19/99), 749 So.2d 610, 615. When a law is clear and unambiguous and does not lead to absurd consequences, the law shall be applied as written and no further interpretation may be made in search of the intent of the legislature. See La. R.S. 1:4. We find the Court in Spain erred in looking beyond the plain language of La. R.S. 42:4.2 in concluding the LHSAA is a committee or subcommittee of BESE or parish school boards. The Court relied upon other factors including the source of the LHSAA's funding, the LHSAA's functions, and the inclusion of LHSAA employees in the Teachers' Retirement System of Louisiana before concluding the LHSAA is a public body. Black's Law Dictionary defines "committee" as "[a] subordinate group to which a deliberative assembly or other organization refers business for consideration, investigation, oversight, or action." BLACK'S LAW DICTIONARY 273 (9th ed.2009). Under a plain reading of former La. R.S. 42:4.2, the phrase "committee or subcommittee of any of these bodies" refers to a committee formed by the public body itself.
In the instant case, there is no evidence to suggest the LHSAA was formed as a committee or subcommittee of BESE or any other parish school board. There is no evidence indicating BESE or the parish school boards have ever "referred business" to the LHSAA for its consideration, investigation, oversight or action. The parties agree in 1988, the LHSAA was formed as a Louisiana nonprofit corporation, the membership of which consists of high schools within Louisiana which apply and are approved for membership in accordance
For the above reasons, we overrule our decision in Spain and conclude the LHSAA is not a "public body" as defined by La. R.S. 42:13. Since we find the LHSAA is not a public body subject to the Open Meetings Law, the LHSAA cannot be considered a "quasi public agency or body," as defined by La. R.S. 24:513(A)(1)(b)(v). We need not address the second requirement of La. R.S. 24:513(A)(1)(b)(v), whether the LHSAA "derives a portion of its income from payments received from any public agency or body," because under the applicable provision, an organization must be subject to the Open Meetings Law and receive such funding to fall under the definition of "quasi public agency or body."
As we have concluded La. R.S. 24:513(A)(1)(b)(v) does not apply to the LHSAA, we need not address whether the statute is constitutional as applied to the LHSAA.
In partially denying the LHSAA's Motion for Summary Judgment, the district court denied the LHSAA's request that La. R.S. 24:513(J)(4)(a) and (b) be declared unconstitutional. In written reasons for judgment, the district court merely denied the LHSAA's equal protection and due process claims, and found the statutes serve a legitimate state purpose and a rational basis. The statutory provisions read as follows:
The parties' arguments on this issue are minimal. The LHSAA contends the statutes should not apply because the fact that the Legislature adopts the LHSAA's scholastic rules as the minimum standard BESE must implement does not make the LHSAA a public entity. If the statutes do apply, the LHSAA asserts they are arbitrary and capricious because they single out one particular organization by description, the LHSAA, which violates the LHSAA's equal protection and due process rights. Appellants reject these arguments, claiming these statutes are constitutional under the Equal Protection and Due Process Clauses.
We agree with the LHSAA that these statutes violate its right to equal protection. Despite our above finding that the LHSAA is not subject to the LLA's
Since the challenged classification is based on grounds other than discrimination because of birth, race, age, sex, social origin, physical condition, or political or religious ideas, the party challenging the statute must show the statute fails to serve a legitimate government purpose. Beauclaire v. Greenhouse, 05-0765, p. 6 (La.2/22/06), 922 So.2d 501, 505-06 (citing State v. Expunged Record (No.) 249,044, 03-1940 at 10, 881 So.2d at 111; State v. Fleury, 01-0871, p. 7 (La.10/16/01), 799 So.2d 468, 473). We find the LHSAA has shown the statute does not further a legitimate state interest. Appellants contend the statute furthers the important state interest of ensuring state law is followed and funds are properly used. The problem with this argument, as the LHSAA points out, is that the State has no real, legitimate interest in looking at and publishing the LHSAA's financial information because it has no power to control the LHSAA's revenue collection or spending. The LHSAA has the sole power to raise money as it will and spend it as its governing authority, its Executive Committee, deems proper. Although the statute arguably concerns a legitimate state interest regarding how the LHSAA spends its revenue, since a portion of it comes from public high schools, we find this statute does not further that interest. If the LLA discovers discrepancies in the LHSAA's audit, it has no authority to regulate the revenue collection or spending of the LHSAA, a private, nonprofit corporation. In its brief to this Court, the LLA claims the audit statutes "allow the State to judge the performance of `quasi public entities' that receive public funds, deter corruption, assist in detecting possible violation of laws, ensure that public funds are handled in accordance with the law, and promote transparency and accountability." The LLA fails to allege, much less show, that it can take any action to regulate the LHSAA's revenue collection or spending.
Even assuming the statute furthers a legitimate state interest, we find La. R.S. 24:513(J)(4)(a) is not rationally related to the State's alleged interest because it authorizes an audit based upon whether an organization's scholastic rules are adopted by BESE. There is no explanation in the statute as to why the Legislature sought to tie an internal audit to an organization's scholastic rules. We find regulating an organization's revenue collection and spending is not rationally related to the organization's scholastic rules. One involves accounting and finances of an entity, while the other concerns the grade point average student-athletes must maintain to remain eligible for high school athletics. Appellants fail to show, and we fail to see, how this statute is rationally related
Since we have found La. R.S. 24:513(J)(4)(a) unconstitutional, we must also find La. R.S. 24:513(J)(4)(b) unconstitutional, as it cannot stand alone. La. R.S. 24:513(J)(4)(b) provides, "[t]he Legislative Audit Advisory Council may order an audit by the legislative auditor upon a finding of cause by the council." This is in reference to the requirement in La. R.S. 24:513(J)(4)(a) that the entity file an audit with the LLA and the Legislative Audit Advisory Council. Thus, La. R.S. 24:513(J)(4)(b) applies only if La. R.S. 24:513(J)(4)(a) applies. We find La. R.S. 24:513(J)(4)(b) cannot be severed from La. R.S. 24:513(J)(4)(a) and must also be struck down as unconstitutional.
For the above reasons, we reverse the district court's ruling to the extent it denied the LHSAA's Motion for Summary Judgment, which sought a declaration that La. R.S. 24:513(J)(4)(a) and (b) are unconstitutional. We find these statutes are unconstitutional under the Equal Protection Clause.
For the foregoing reasons, we affirm the district court's ruling to the extent it partially granted the LHSAA's Motion for Summary Judgment and declared La. R.S. 17:176(F), La. R.S. 17:176(G), and La. R.S. 17:236.3 unconstitutional pursuant to La. Const. art. III, § 12(A)(7). These Title 17 statutes constitute prohibited special laws that "amend, renew, extend or explain" the charter of a private corporation, the LHSAA. We find the district court erred, however, in partially denying the LHSAA's Motion for Summary Judgment, to the extent the LHSAA sought a declaration that it is not a "quasi public agency or body," as defined by La. R.S. 24:513(A)(1)(b)(v). We conclude the LHSAA is not a "quasi public agency or body" under the statute because it is not subject to the Open Meetings Law. We overrule our prior decision in Spain v. Louisiana High School Athletic Association, 398 So.2d 1386 (La.1981), in which the Court erred in concluding the former, unincorporated LHSAA was a "public body" for the limited purpose of La. R.S. 42:5, the Open Meetings Law, because it constituted a committee or subcommittee of BESE or parish school boards. We find the LHSAA is not a "public agency or body" for purposes of the Open Meetings Law and therefore, cannot be a "quasi public agency or body," as defined in La. R.S. 24:513(A)(1)(b)(v). The district court also erred in denying the LHSAA's Motion for Summary Judgment in part, to the extent the LHSAA sought a declaration that La. R.S. 24:513(J)(4)(a) and (b) are unconstitutional. We find these statutes are unconstitutional under the Equal Protection Clause because they are arbitrary and capricious and they are not rationally related to a legitimate state interest. We therefore reverse the portion of the district court's judgment denying the LHSAA's Motion for Summary Judgment and conclude La. R.S. 24:513(A)(1)(b)(v) does not apply to the LHSAA and La. R.S. 24:513(J)(4)(a) and (b) are unconstitutional.
WEIMER, Justice, concurs and assigns reasons.
VICTORY, Justice, dissents and assigns reasons.
WEIMER, J., concurring.
I concur in the results reached in this matter, but believe it is unnecessary to overrule Spain v. Louisiana High School Athletic Association, 398 So.2d 1386 (La.
VICTORY, J., dissenting.
I dissent from the majority opinion. I agree with the findings of the district court regarding the Title 24 statutes, because in my view, the Louisiana High School Athletic Association ("LHSAA") is a "quasi public body" for purposes of La. R.S. 24:513(A)(1)(a) and (J)(4)(a), as defined in La. R.S. 24:513(A)(1)(b)(v). These statutes allow the Louisiana Legislative Auditory ("LLA") to "compile financial statements and to examine, audit, or review the books and accounts of ... public or quasi public agencies or bodies." La. R.S. 24:513(A)(1)(a). A "quasi public agency or body" includes "[a]ny organization, either not-for-profit or for profit, which is subject to the open meetings law and derives a portion of its income from payments received from any public agency or body." La. R.S. 24:513(A)(1)(b)(v). I agree with our holding in Spain v. Louisiana High School Athletic Association, 398 So.2d 1386 (La. 1981), that the LHSAA is a quasi public body for the limited purpose of La. La. R.S. 42:5, the Open Meetings Law. Its incorporation in 1988 does nothing to change its status as such. Further, the LHSAA is a quasi public entity because some of its membership dues come from public high schools. The LHSAA also receives a percentage of the gate receipts of many major tournaments, championships, playoff games, etc., and the proper use of those funds is a legitimate State interest or public concern. If the Legislature intended the LLA to audit only those entities which receive tax-appropriated funds, it would have written the statute differently.
Further, I do not believe the LHSAA has met its burden of proving application of the Title 24 statutes violates its due process or equal protection rights. The LHSAA has not pointed out any person or association that is "similarly situated" because the associations cited in its Motion for Summary Judgment do not have any Louisiana public schools as members. In my view, the Title 24 statutes are not arbitrary and capricious and are rationally related to the legitimate interest of ensuring the proper use of State funds and promoting accountability and transparency in these organizations. Requiring quasi public entities like the LHSAA to be audited allows the Legislature to hold the entities accountable for the funds they receive and ensure they are performing their quasi public functions properly.
In addition, I believe the majority errs in declaring the Title 17 statutes unconstitutional. In my view, the legislature had the authority to enact the statutes because education and athletics are within the regulatory scope of the State. See Spain, 398 So.2d 1386. Since the Title 17 statutes clarify certain eligibility rules, they are neither arbitrary nor capricious and are rationally related to the important state interests of education and promoting high school athletics. The statutes do not violate the Equal Protection Clause because they do not treat the LHSAA different from other similarly situated associations. The MAIS and the LCSAA are not similarly situated to the LHSAA because neither have a public school as a member. Further, the Title 17 statutes do not offend La. Const. art. III, § 12(A)(7) because they do not amend the charter of the LHSAA, but only set out certain eligibility rules, some of which may conflict
In conclusion, I agree with the arguments of the Department of Education and the Governor, that the LHSAA performs a major policymaking, advisory, and administrative function within public education, a subject under the Legislature's control. LA. CONST. art. VIII, § 1. The LHSAA is a quasi public organization, carrying out activities which fall within the Legislature's authority. High school athletics are a matter of public interest due to the important role athletics play in the State's education system, and specifically because of the relationship between student eligibility and the State's education reform efforts. Title 17 and Title 24 statutes are sound education policy, enacted by the Legislature in an exercise of its constitutional authority to provide education for the people of the State. Having to forego participation in high school athletics would deter many parents of student-athletes from exercising school choice, including home schooling. Such a deterrent thwarts the Legislature's efforts to improve public schools by forcing them to face increased competition for students and parents choosing the best learning environment for their children. Other states have enacted similar legislation requiring state high school athletic associations to allow home school and private school students to participate in public school interscholastic sports.
For all of the above reasons, I respectfully dissent.