Soap & Detergent Ass'n v. Natural Resources Commission

Levin, J.

(dissenting). The executive order transferred to the Department of Natural Resources the statutory authority, powers, duties, functions and responsibilities of the Water Resources Commission created under § 1, 1929 PA 245, as amended, MCL 323.1; MSA 3.521. Section 1 provides for the establishment of the Water Resources Commission and for the appointment of its members. The executive order excepts rule-making and certain other functions under §§ 2 and 5, subsection 1 of § 7, and subsection (b) of § 8 of act 245, as amended, thereby indicating that it was intended to transfer all powers and duties with the exceptions indicated.1

*766The DNR justifies the regulation being challenged on the basis that it was thus the intent of *767the executive order to transfer to the DNR the Water Resources Commission’s authority under the cleaning agent act, 1971 PA 226, MCL 323.231; MSA 3.533(301), a separate act not adverted to in the executive order.

There is in our opinion an ambiguity whether it was intended to retain in the Water Resources Commission the rule-making functions under the cleaning agent act so retained in respect to the general enabling act, act 245. The Governor’s letter of October 6, 19762 and the DNR announce*768ment,3 both of which were issued contemporaneously with the executive order, some eight months *769before the challenged regulation was promulgated, suggest that it was.

If the Governor desired that the DNR exercise rule-making power under the cleaning agent act, all that needed to be done to make that clear was to amend the executive order to so specifically provide. Absent such specific statement, it would seem that the Governor’s letter of October 6, 1976, stating that the Water Resources Commission "will retain the essential adjudicative and rule-making functions”,4 should apply to the cleaning agent act, as well as to the general enabling act, act 245.

It is clear that the Governor did not confer on the DNR the Water Resources Commission’s rule-making powers under the general enabling act, act 245. No reason appears why the Governor would want to retain in the Water Resources Commission rule-making authority under the general enabling act and confer on the DNR the Water Resources Commission’s rule-making authority under other acts not specifically referred to in the executive order.

The argument that this was a Type II transfer and that, by the terms of the statute providing therefor (MCL 16.103[b]; MSA 3.29[3][b]), all statutory authority, powers, and duties were transferred, ignores the fact that all authority, powers, and duties were not transferred.

We would reverse.

Coleman, J., concurred with Levin, J. Riley, J., took no part in the decision of this case.

The challenged executive order, Executive Order No. 1976-8, reads in pertinent part as follows:

"1. Executive Order 1973-2a is hereby repealed and this order shall supersede the provisions of that order.
"2. Executive Order 1973-2 shall remain in full force and effect as amended in the following manner:
"a. Paragraph 2, page 1, as amended, reads as follows:
"The statutory authority, powers, duties, functions and responsibilities of the Water Resources Commission created under Section 1, Act 245, P.A. 1929, as amended, being Section 323.1 of the Compiled Laws *766of 1948, are hereby transferred to the Department of Natural Resources by a Type II transfer as defined by Section 3(b) of Act 380 of the Public Acts of 1965, except that the Water Resources Commission shall continue to exercise independent authority with respect to quasi-judicial functions, rule-making, and issuance of permits and orders in the water pollution control functions, as specified in Section 2, Section 5, subsection (1) of Section 7, and subsection (b) of Section 8 of Act No. 245 of the Public Acts of 1929, as amended. In all other areas it shall serve in an advisory capacity to the Natural Resources Commission and staff.”

Executive Order No. 1973-2a reads in pertinent part as follows:

"1. All of paragraph 2, page 2, of said executive order [1973-2] is stricken and in lieu thereof the following is hereby ordered:
" '2. The statutory authority, powers, duties, functions, responsibilities of the Water Resources Commission created under Section 1, Act 245, P.A. 1929, as amended, being Section 323.1 of the Compiled Laws of 1948, are hereby transferred to the Department of Natural Resources by a Type II transfer as defined by Section 3(b) of Act 380 of the Public Acts of 1965, except that the following powers, duties and responsibilities specifically related to that function shall be exercised by the Water Resources Commission independent of the Department of Natural Resources.
"a. Sections 2-6, 6(a), 6(b), 7-9 and 13 of Act 245, P.A. 1929 as amended; Sections 4, 8, and 10 of Act 167, P.A. 1970; Sections 4 and 5 of Act 211, P.A. 1956, as amended; Sections 3-5, 7, 10, 12, 14-17 of Act 329, P.A. 1966, as amended; Section 3 of Act 222, P.A. 1966; Sections 4, 5, 7, 11, 13, 14 and 15 of Act 347, P.A. 1972; and Section 423 of Act 40, P.A. 1956, as amended, by Act 298, P.A. 1972.
"b. The Water Resources Commission shall continue to exercise independent authority with respect to quasi-judicial functions in the rule-making, enforcement, and issuance of orders in the water pollution control functions. In all other areas it shall serve in an advisory capacity to the Natural Resources Commission and staff.
"c. All records, property, personnel and unexpended balances of appropriations and allocations and other funds used, held, employed, available, or to be made available to the Water Resources Commission are transferred to the Department of Natural Resources.’ ”

Executive Order No. 1973-2 reads in pertinent part as follows:

"2. The statutory authority, powers, duties, functions, and responsibilities of the Water Resources Commission created under Section 1, Act 245 of Public Acts of 1929, as amended, being section 323.1 of the Compiled Laws of 1948, are hereby transferred to the Department of Natural Resources by a Type II transfer as defined by Section 3(b) of Act 380 of the Public Acts of 1965.
"a. The Water Resources Commission shall serve in an advisory capacity to the Natural Resources Commission and staff.
"b. All records, property, personnel and unexpended balances of appropriations and allocations and other funds used, held, employed, *767available, or to be made available, to the Water Resources Commission are transferred to the Department of Natural Resources.”

Executive Order No. 1973-2 was promulgated January 11, 1973, to become effective April 1, 1973. Executive Order No. 1973-2a was promulgated March 13, 1973, to become effective May 14, 1973. Executive Order No. 1976-8 was to become effective September 1, 1976; the effective date was extended by Executive Order No. 1976-8a to November 1, 1976.

"[Letterhead of the Governor of the State of Michigan]

"October 6, 1976

"Mr. Thomas L. Munson

2700 City National Bank Building

Detroit, Michigan 48226

"Dear Mr. Munson:

"Thank you for your letter expressing concern over Executive Order 1976-8 and 1976-8a which allow the reorganization of the Department of Natural Resources.

"The net result of this reorganization will be to shift the administration of certain functions from the Air Pollution Control Commission and the Water Resources Commission to the Natural Resources Commission. The Air and Water Commissions will retain the essential adjudicative and rule making functions. These commissions will, by rule, promulgate standards; and issue, revoke, and modify permits and orders to implement such standards while the investigative and prosecutorial functions are shifted to the Department of Natural Resources. Thus, the professional staff of the Department of Natural Resources, subject to supervision of the Director and Natural Resources Commission, will investigate the facts and institute proceedings in which the Air and Water Commissions will make any necessary administrative adjudications.

"By separating the functions of the administrative prosecutor and administrative judge, I believe we have improved the system of checks and balances which you referred to in your letter.

"With respect to your concern that all interested parties should be given time to comment on the proposed order; prior to receiving my *768signature, the order was reviewed by the interested commissions, department directors, and the Office of the Attorney General. Their comments and concerns were given full consideration. In addition, the Legislature has been given four, months, twice the amount of time required under the Constitution, to review the order. I believe that the opportunity for review has been adequate and fair.

"Kind personal regards.

"Sincerely,

/s/ William G. Milliken

Governor”

(Emphasis supplied.)

"Governor’s Order Reorganizing Department Takes Effect Michigan Department of Natural Resources News Bulletin

"Lansing — Governor William G. Milliken’s executive order which officially reorganizes the Department of Natural Resources under a centralization plan recommended last December by Director Howard A. Tanner takes effect November 1.

"The order (1976-8) repeals Executive Order 1973-2a and amends Executive Order 1973-2, under which the' Water Resources Commission and Air Pollution Control Commission were transferred to the department.

"The order transfers the enforcement functions of the commissions to the department central staff. However, the commissions retain their responsibilities for setting standards, issuing orders and adopting rules as required under their legislative mandates, Governor Milliken states.

“It also authorizes Tanner to appoint executive secretaries to the commissions — with the advice and consent of the commission members.

"The order officially eliminates the DNR’s two-branch organizational structure — with separate branches for natural resources management and environmental protection functions. It permits uniting those responsibilities into a more centralized organization designed for efficiency.

"The Governor says the order permits the placing of the DNR’s divisions with environmental protection mandates — air and water quality and resource recovery — under one roof: the Bureau of Environmental Protection.

"The order also permits the DNR to focus additional attention on the problems of land use and water management; included among the new divisions in the restructured department is a DNR Bureau of Land and Water Management.

" T am pleased that Director Tanner has taken special note of the rising importance of land use in his restructuring of the department,’ remarks Milliken. 'This is an important step toward coordinating functions previously scattered among many elements of the DNR.’

"The reorganization of the department also will help implement *769Milliken’s directive to the department that it do all it can to eliminate administrative delays in the permit-issuing process.”

(Emphasis supplied.)

See fn 2.