The opinion of the court was delivered by
MESSANO, P.J.A.D.
In this appeal, the Thoroughbred Breeders' Association of New Jersey (TBA) urges us to reverse Governor Chris Christie's veto of the minutes of the June 29, 2011 meeting of the New Jersey Racing Commission (the Commission), and remand to the Commission with instructions to reconsider distribution of $15 million to various stakeholders in New Jersey's horse racing and breeding industry. We set forth the Legislative and procedural history that led to this appeal.
On February 1, 2011, the Legislature enacted comprehensive legislation creating the Atlantic City Tourism District. See L. 2011, c. 18, § 1, now codified as N.J.S.A. 5:12-218 to -233. N.J.S.A. 5:12-223 specifically required: "the Division of Gaming Enforcement ... [to] determine the amount of cost savings effected by the reduction in fees paid by casino licensees"; the Commission, thereafter, to determine an amount, not to exceed $15 million for the first fiscal year, to be collected by the Casino Redevelopment Authority (CRDA) from these savings; and the CRDA to allocate that amount to the Commission "to support ... the horse racing industry in this State through the augmentation of purses." Ibid. The statute further provided:
N.J.S.A. 5:5-22.1, enacted by the Legislature in 2001, remained unchanged and provides:
The Standardbred Breeders and Owners Association of New Jersey (SBOA) stated it would "remain respectfully silent," because, based upon ongoing negotiations to lease the Meadowlands racetrack to a private investor, "we all agreed not to ask for the supplement to purses." However, the SBOA also stated that, "if the Commission d[id] decide to allocate any such monies, the SBOA ... [should be] treated fairly and an equitable split ... be made between Freehold and the Meadowlands."
The Thoroughbred Horsemen's Association (THA) sought $10 million for the "New Jersey Bred program[] and an unspecified amount to enhance purses at Monmouth Park." The THA, however, later revised its submission and asked that the Commission not allocate any subsidies in 2011. The THA stated that as a participant in negotiations for the lease of Monmouth Park racetrack, it agreed "to support the Governor's position that no money should be received by the Industry this year." Nonetheless, the THA further wrote that "if ... the Commission decide[d] to allocate any portion of the Purse Supplement," $7.5 million dollars should be distributed equally to Monmouth Park, the Meadowlands and the Atlantic City Race Course.
Appellant TBA requested $10 million "to augment purses for New Jersey-bred horses." The Atlantic City Race Course requested $800,000 to augment its purses, and Freehold Raceway requested $1,875,000 "to increase purses." On June 13, the New Jersey Sports and Exposition Authority (NJSEA) advised the Commission:
At its meeting of June 29, the Commission unanimously agreed:
This distribution plan was formally included in the Commission's minutes which were delivered to the Governor on June 30, 2011.
On appeal, TBA argues that: the Governor's veto pursuant to N.J.S.A. 5:5-22.1 was unconstitutional; alternatively, even if the veto was constitutional, the Governor's decision was arbitrary and capricious; and the Commission's decision was itself arbitrary and capricious because it provided no funds for the thoroughbred breeding industry. We have considered these arguments in light of the record and applicable legal standards. We affirm.
The TBA's constitutional challenge is multi-faceted. First, the TBA contends that the Governor's veto "circumvented the Legislature's delegation" of power to the Commission to appropriate funds to the horse racing industry for the augmentation of purses, and the statutory scheme "fails to provide for a legislative override of the Governor's veto as required by the State Constitution."
"The framers of the 1947 Constitution distributed powers among the three branches of State Government in a fashion that recognizes both the need for, on the one hand, primacy and clarity of governmental functions, but also, on the other hand, the importance of inter-branch accommodation." Commc'ns Workers of Am., AFL-CIO v. Christie, 413 N.J.Super. 229, 256, 994 A.2d 545 (App.Div.2010).
"[W]hen the Governor is acting consistently with express or implied authority from the Legislature, his or her action should be given the widest latitude of judicial interpretation, and the burden of persuasion... rest[s] heavily upon any who might attack it." Perth Amboy Bd. of Educ. v. Christie, 413 N.J.Super. 590, 601, 997 A.2d 262 (App.Div.2010) (quotations omitted). "Only when the challenged action impairs the essential integrity of another branch will a court step in to enforce the constitutional boundaries." Bullet Hole, Inc. v. Dunbar, 335 N.J.Super. 562, 574, 763 A.2d 295 (App.Div.2000) (quotation marks and citation omitted).
In this case, the Legislature expressly required the CRDA to provide funds as directed by the Commission for the purpose of supporting "the horse racing industry ... through the augmentation of purses." N.J.S.A. 5:12-223. At the same time, however, the Legislature required that the "amount of any funds authorized" by the Commission "be established... at a regular meeting" and the
"It is not the function of [a] [c]ourt to `rewrite a plainly-written enactment of the Legislature []or presume that the Legislature intended something other than that expressed by way of the plain language.'" DiProspero v. Penn., 183 N.J. 477, 492, 874 A.2d 1039 (2005) (quoting O'Connell v. State, 171 N.J. 484, 488, 795 A.2d 857 (2002)). In attempting to discern legislative intent, we must consider the entire statutory scheme. Perth Amboy Bd. of Educ., supra, 413 N.J.Super. at 602, 997 A.2d 262. When a statute is plainly-written and unambiguous, "it is not [our] task to decide whether a statute duly adopted by the Legislature is wise." In re Young, 202 N.J. 50, 73, 995 A.2d 826 (2010) (Rivera-Soto, J., dissenting). In short, applying these well-known axioms of statutory construction, the Governor's exercise of his veto power was not "in derogation of the Legislature's will." Perth Amboy Bd. of Educ., supra, 413 N.J.Super. at 607, 997 A.2d 262.
We realize that in this case, the statutory scheme produced an ostensibly inconsistent result, i.e., the Legislature intended that CRDA monies be specifically used at the Commission's direction to augment purse money, and the Governor's veto evidenced his desire not to augment purse money at all. The TBA argues that this inconsistency implies the Legislature's preservation of the Governor's veto power was intended to permit only the veto of the amount of allocations made, not the veto of all monies designated for purse augmentation. We are not persuaded that this potential for inconsistency requires our intervention, i.e., that we construe the statutes contrary to their unambiguous terms.
"The Legislature is presumed to be thoroughly conversant with its own legislation." State v. Galicia, 210 N.J. 364, 381, 45 A.3d 310 (2012) (internal quotation marks and citations omitted). In this case, however, we need not presume such familiarity because the Legislature specifically referred to N.J.S.A. 5:5-22.1 when enacting N.J.S.A. 5:12-223. Because the Legislature specifically referred to, and chose not to amend, N.J.S.A. 5:5-22.1 when it enacted N.J.S.A. 5:12-223, there is no conflict between the two statutes and no implication that the legislative intent was contrary to the plain language of the statutes. See, e.g., Brewer v. Porch, 53 N.J. 167, 173, 249 A.2d 388 (1969) (discussing the concept of "implied repealers" "when a later expression of legislative will is so clearly in conflict with an earlier statute on the same subject that the two cannot reasonably stand together").
Additionally, if the Legislature intended to circumscribe the Governor's veto power in any way, it would have known how to effectuate its purpose. See Zabilowicz v. Kelsey, 200 N.J. 507, 517, 984 A.2d 872 (2009) ("The Legislature knows how to draft a statute to achieve that result when it wishes to do so."). Lastly, any apparent inconsistency between the result of executive action otherwise authorized by the Legislature, and an express statutory provision, does not compel the conclusion that the executive action is unconstitutional. See Perth Amboy Bd. of Educ., supra, 413 N.J.Super. at 606-07,
The TBA also argues that the veto power preserved by N.J.S.A. 5:5-22.1 is per se unconstitutional because it fails to provide for any legislative override. The argument lacks sufficient merit to warrant extensive discussion. R. 2:11-3(e)(1)(E). We add only the following.
Our Constitution defines the veto powers of the Governor regarding any legislative enactment. N.J. Const., art. V, § 1, ¶ 14. Additionally, the Governor is authorized to exercise line item vetoes in any appropriation bill. N.J. Const., art. V, § 1, ¶ 15. However, the veto power exercised in this case does not spring from either of those constitutional provisions. Rather, the Governor's veto of the Commission's minutes was exercised pursuant to an express legislative grant of that power, something accorded to the Governor by the Legislature in literally dozens of other situations. See, e.g., N.J.S.A. 13:18A-5 (granting the Governor veto power over the minutes of the Pinelands Commission); N.J.S.A. 5:9-9 (same regarding the State Lottery Commission).
Finally, the TBA argues that the Governor's veto was unconstitutional because the Commission is a division of the Department of Law and Public Safety (DLPS), of which the Attorney General is the head. See N.J.S.A. 52:17B-2. Because the Attorney General occupies a unique position in the executive branch, the TBA contends that only he had the power to veto the Commission's minutes, and the delegation of this power to the Governor was unconstitutional. We again disagree.
We start with some basic principles. All executive power in New Jersey resides with the Governor. See N.J. Const. art. V, § 1, ¶ 1 ("The executive power shall be vested in a Governor."). The 1947 Constitution intentionally strengthened the power of the Governor. Perth Amboy Bd. of Educ., supra, 413 N.J.Super. at 599, 997 A.2d 262 (citing Kenny v. Byrne, 144 N.J.Super. 243, 251, 365 A.2d 211 (App. Div.1976), aff'd o.b., 75 N.J. 458, 383 A.2d 428 (1978)). The Constitution also provides:
"Each principal department shall be under the supervision of the Governor." N.J. Const. art. V, § 4, ¶ 2. DLPS is one such department "established in the executive branch." N.J.S.A. 52:17B-1. In 1970, the Legislature transferred the Commission from the Department of the Treasury to DLPS and constituted the Commission as a division of that department. See L. 1970, c. 18, § 1 (now codified as N.J.S.A. 52:17B-95).
The TBA relies upon our recent decision in In re Plan for Abolition of Council on Affordable Housing, 424 N.J.Super. 410, 38 A.3d 620 (App.Div.), certif. granted, 211 N.J. 274, 48 A.3d 355 (2012), where we considered the limits of executive authority over a legislatively-created State agency, the Council on Affordable Housing (COAH). Specifically we were asked to
We examined the specific language adopted by the Legislature when it created COAH, i.e., "[t]here is established in, but not of, the Department of Community Affairs a Council on Affordable Housing...." Id. at 413, 38 A.3d 620 (quoting N.J.S.A. 52:27D-305). We further noted that "[t]his `in but not of' language is the most common means of identifying those agencies that the Legislature intended to be independent and outside the scope of Executive control ... while also abiding by the constitutional mandate allocating every agency, independent or otherwise, to an established department in the Executive Branch." Id. at 424, 38 A.3d 620. Based upon this, and other provisions of COAH's statutory framework, we held that the Governor did not have "the power to abolish a legislatively created, representative, independent authority that is `in but not of' the Executive Branch or any department in that branch of the government." Id. at 412, 38 A.3d 620.
In this case, however, the relevant statutory language does not support the conclusion that the Legislature intended the Commission "to be independent and outside the scope of Executive control." Id. at 424, 38 A.3d 620. Quite the opposite is true.
N.J.S.A. 5:5-22 provides:
The Legislature subsequently enacted N.J.S.A. 52:17B-95, which provided:
Neither statute reflects an intention to imbue the Commission with some independence from control by the executive branch. By enacting N.J.S.A. 5:5-22.1, the Legislature clearly intended to provide the Governor with direct executive control because it provided him with authority to veto the Commission's minutes, thereby nullifying any of its actions.
The TBA, however, argues that, despite the clear legislative mandate of N.J.S.A. 5:5-22.1, such control can only be exercised constitutionally by the Attorney General. We reject that contention.
The Attorney General is a constitutional officer within the executive branch, N.J. Const., art. V, § 4, ¶ 1, who is appointed by the Governor with the advice and consent of the Senate. N.J. Const., art. V, § 4, ¶ 3. Unlike other department heads, however, the Attorney General does not serve at the pleasure of the Governor, but rather serves a term that is co-existent with the Governor. Ibid.; see Morss v. Forbes, 24 N.J. 341, 369, 132 A.2d 1 (1957).
Despite this somewhat unique constitutional status, it has long-been recognized that "in the absence of constitutional limitations, [the Attorney General's functions]
In sum, we see no constitutional limitation upon the Legislature's decision to accord the Governor, not the Attorney General, veto power regarding the Commission's minutes. We therefore reject the TBA's constitutional challenge to the Governor's veto.
We address the other issues raised by the TBA. It contends that even if the Governor's veto was constitutional, we should reverse because the Governor's action was mistakenly based upon the conclusion that the Commission awarded some stakeholders monies even though they never made a request. Because the decision was unsupported by the facts before the Commission, the TBA argues the Governor's action should be set aside as arbitrary, capricious and unreasonable.
We are authorized by the Constitution to review executive agency action. See In re Senior Appeals Exam'rs, 60 N.J. 356, 363, 290 A.2d 129 (1972) ("[J]udicial review of administrative agency determinations has the support of a special constitutional provision (art. VI, sec. 5, para. 4) which largely immunizes it from legislative curbs."). But, our review is circumscribed, lest we violate the Constitution's separation of powers. See Texter v. Dep't of Human Servs., 88 N.J. 376, 382-83, 443 A.2d 178 (1982) ("This limited review prevents the courts from usurping policy decisions from other branches of government.") (citing Newark v. Natural Res. Counc. Dept. of Envtl. Prot., 82 N.J. 530, 542, 414 A.2d 1304 (1980)).
The standard of review that we apply to agency action recognizes this limited power. "Unless a Court finds that the agency's action was arbitrary, capricious, or unreasonable, the agency's ruling should not be disturbed." Brady v. Bd. of Review, 152 N.J. 197, 210, 704 A.2d 547 (1997).
As we recently noted in Vas v. Roberts, 418 N.J.Super. 509, 516, 14 A.3d 766 (App. Div.2011), Rule 2:2-3(a)(2) provides the right for our "review [of] final decisions or actions of any state administrative agency or officer," and "the Governor is the State's chief executive or administrative officer." Vas, supra, 418 N.J.Super. at 519, 14 A.3d 766. Indeed, we have frequently exercised our jurisdiction to review actions taken directly by the Governor, as opposed to executive action taken by or through an administrative agency. See, e.g., In re Plan for Abolition of Council on Affordable Hous., supra, 424
However, in each of those cases, we examined the Governor's actions only in light of Constitutional and statutory grants or limitations of his authority. In other words, we reviewed the executive action under the first two "inquiries" set forth above. We specifically did not address the third and fourth inquiries; that is, in all the cases cited, our review did not inquire as to whether the Governor's decision was supported by substantial evidence, and whether the conclusions reached upon those facts were consonant with reason and the legislative grant of authority. In short, we did not apply the usual standard of review — whether the Governor's decision was arbitrary, capricious or unreasonable. The TBA has cited no case, and our independent research has not revealed one, in which a court has applied the arbitrary, capricious or unreasonable standard of review to the discretionary actions of a Governor.
In this case, the Legislature clearly provided the Governor with the power to veto any action taken by the Commission. For reasons already discussed, the Governor's veto "did not offend[]" the Constitution nor did it "violate[] express or implied legislative policies." Taylor, supra, 158 N.J. at 656, 731 A.2d 35. The Legislature did not impose restrictions upon the Governor's use of the veto power, require that he explain his reasons for exercising the power accorded and otherwise did not inhibit the Governor's discretionary decision-making.
Under this legislative scheme, if we were to consider whether the Governor's stated reasons for exercising his veto were supported by substantial evidence, or whether his conclusions were reasonably reached based upon that evidence, ibid., we would tread dangerously close to the boundary line separating our Constitutional power to review executive action, and the statutory and constitutional power accorded another co-equal branch of government. In our view, consideration of whether the Governor's veto of the Commission's minutes was factually sound or good policy "presents a non[-] justiciable political question," and can play no part in our review. Gilbert v. Gladden, 87 N.J. 275, 282, 432 A.2d 1351 (1981). A non[-] justiciable political question arises when there is "a lack of judicially discoverable and manageable standards for resolving it," or the issue is impossible to "decide[e] without an initial policy determination of a kind clearly for nonjudicial discretion." Ibid. (quoting Baker v. Carr, 369 U.S. 186, 217, 82 S.Ct. 691, 710, 7 L.Ed.2d 663, 686 (1962)).
Here, there were intricate and somewhat competing policy decisions at play. The record reflects ongoing negotiations between the NJSEA, the Governor's office and private individuals to take over operations at two New Jersey racing venues. Those negotiations included efforts to minimize the use of public monies in an effort to make the industry self-sustaining. The Legislature, although indicating support
We hasten to add that our opinion should not be read too broadly. Perhaps a particular piece of legislation that placed reasonable and constitutional limits on the exercise of gubernatorial power through the application of well-defined standards would trigger application of our traditional standard of review. Because this is not such a case, we hazard no particular opinion on the issue.
In short, we reject the argument that the Governor's decision to veto the Commission's minutes was reviewable under our traditional "arbitrary, capricious or unreasonable" standard applicable to most executive agency actions.
Lastly, in light of our decision affirming the Governor's veto, we need not consider the third argument raised by the TBA, i.e., that the Commission's action was arbitrary, capricious and unreasonable because it made no award of money to the TBA.
Affirmed.