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Full Opinion
When the General Assembly chooses to pass a special law, the State can preserve the law from constitutional infirmity by offering evidence of substantial justification if challenged in court. City of DeSoto v. Nixon, 476 S.W.3d 282, 287 (Mo. banc 2016). The State failed to offer any evidence in the trial court of a substantial justification for the special laws in Senate Bill 5 (“SB 5”) that were passed by the General Assembly in 2015. Consequently, the challenged provisions of SB 5 violate the Missouri Constitution’s special law prohibition.
Twelve municipalities in St. Louis County, along with two taxpayers (referred to collectively as “Plaintiffs”), filed a petition against the Governor, the Attorney General, the Auditor, and the Director of Revenue (referred to collectively as the “State”) for declaratory judgment alleging that provisions of SB 5 violate the Missouri Constitution, including the special laws provision in article III, section 40(30), the Hancock Amendment in article X, sections 16 and 21, and five other constitutional claims.
Of course, special laws like this may be passed by the General Assembly in the future and can survive a special law challenge as long as evidence of substantial justification is offered in the trial court. Because the State failed to present any evidence of substantial justification for enacting either section 67.287,
Section 479.359.2, insofar as it provides “except that any county with a charter form of government and with more than nine hundred fifty thousand inhabitants and any city, town, or village with boundaries found within such county shall be reduced from thirty percent to twelve and one-half percent,” is severed from the rest of section 479.359.2. By severing this language, section 479.359.2 imposes a uniform cap on fines, bond forfeitures, and court costs of 20 percent statewide.
This Court reverses the trial court’s judgment that sections 67.287 and 479.359.3 are Hancock violations as these claims are not ripe for review because the General Assembly has until August 28,
Pacts and Procedural Background
Over the last two decades, the General Assembly has passed various limitations on the amount of revenue municipalities may generate from traffic fines. The first limitation, known as the “Macks Creek Law,” was enacted in 1995. Sec. 302.341. It prohibited any city, town, or village from receiving more than 45 percent of its total annual revenue from fines for traffic violations. Id. Excess revenue would be remitted to the state’s department of revenue and distributed to the county’s schools. Id. The General Assembly reduced this cap from 45 to 35 percent in 2009 and to 30 percent in 2013. Sec. 302.341.2, RSMo Supp. 2009; sec. 302.341.2, RSMo Supp. 2013. The 2013 amendment further required. an accounting of the percentage of general operating revenue that came from traffic violations be included in the annual financial report. Id.
In 2015, the General Assembly passed SB 5 and the Governor signed it into law. The bill moved the Macks Creek Law from section 302.341.2 to section 479.359 and requires every county, city, town, and village to
annually calculate the percentage of its annual general operating revenue received from fines, bond forfeitures, and court costs for minor traffic violations, including amended charges for any municipal ordinance violations and minor traffic violations, whether the violation was prosecuted in municipal court, associate circuit court, or circuit court, occurring mthin the county, city, town, or village.
Sec. 479.359.1 (emphasized to show changes from the previous version). SB 5 also lowered the percentage cap from 30 to 20 percent. Sec. 479.359.2. The General Assembly created one exception to the new 20-percent cap: “any county with a charter form of government and with more than nine hundred fifty thousand inhabitants and any city, town, or village with boundaries found within such county shall be reduced from thirty percent to twelve and one-half percent.” Id. (emphasis added).
In addition, section 479.359.3 now requires all counties, cities, towns, and villages to submit an addendum with their annual financial report to the state auditor pursuant to section 105.145. This addendum must include an accounting of the political subdivision’s annual general operating revenue, “total revenues from fines, bond forfeitures, and court costs for minor traffic violations occurring within the county, city, town, or village, including amended charges, from any minor traffic violations,” and a calculation of the percent of the annual general operating revenue that the fines, bond forfeitures, and court costs for minor traffic violations represent. Sec. 479.359.3(l)-(3). Finally, “a representative with knowledge of the subject matter as to the accuracy of the addendum contents” must certify its accuracy and sign “under the penalty of perjury, and witnessed by a notary public.” Sec. 479.359.3(4).
SB 5 also enacted section 67.287, which lists “minimum standards” for certain municipalities. The statute defines such a “[mjunicipality” as “any city, town, or village located in any county with a charter form of government and with more than nine hundred fifty thousand inhabitants.”
.After the enactment of SB 5, twelve municipalities in St. Louis County
In the trial court, Plaintiffs offered the testimony of two witnesses. Plaintiffs also introduced an affidavit from the certified public accountant who prepares the annual financial reports for both Normandy and Pagedale. The State conceded it did not offer any evidence, let alone any evidence to support a substantial justification. The trial court entered a judgment declaring (1) section 67.287’s provision of minimum standards for certain municipalities, in its entirety, and section 479.359.2, insofar as it creates a lower cap applicable to only municipalities in counties with a charter form of government and more than 950,000 inhabitants, are unconstitutional special laws and (2) the requirement in sections 67.287 and 479.359.3 that annual financial reports include an addendum certified under oath and penalty of perjury are unconstitutional unfunded mandates. The trial court also entered a permanent injunction enjoining the State from enforcing the provisions declared unconstitutional. Finally, the trial court dismissed Plaintiffs’ other constitutional claims for failure to state a claim.
The State appeals the trial court’s judgment declaring that SB 5 contained special laws and unfunded mandates and permanently enjoining the enforcement of those provisions. Plaintiffs appeal the trial court’s dismissal of their other claims.
Standard of Review
Challenges to a statute’s constitutional validity are questions of law, which this Court reviews de novo. Earth Island Inst. v. Union Elec. Co., 456 S.W.3d 27, 32 (Mo. banc 2015). Similarly, a trial court’s grant of a motion to dismiss is reviewed de novo. Conway v. CitiMortgage, Inc., 438 S.W.3d 410, 413 (Mo. banc 2014). A judgment awarding equitable relief “will be affirmed unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law.” St. Louis Police Officers’ Ass’n v. Bd. of Police Comm’rs of City of St. Louis, 259 S.W.3d 526, 528 (Mo. banc 2008).
Analysis
I. SB 5 Contains Special Laws in Violation of the State Constitution
Missouri’s first constitution in 1820 did not contain a prohibition against spe-
The test employed to determine if a statute is a special law is whether the statute’s applicability is based on open-ended or closed-ended characteristics. City of DeSoto, 476 S.W.3d at 287. A law based on closed-ended characteristics—e.g., historical facts, geography, or constitutional status—is facially special and presumed to be unconstitutional as others cannot come into the group nor can its members leave the group. Id. A law based on open-ended characteristics—e.g., population—on the other hand, is presumed to be constitutional. Id. “This ‘open-endedness’ allows the legislature to address the unique problems of size with focused legislation; it also permits those political subdivisions whose growth or decline brings them into a new classification the advantage of the legislature’s previous consideration of the issues facing similarly situated governmental entities.” Sch. Dist. of Riverview Gardens v. St. Louis Cnty., 816 S.W.2d 219, 222 (Mo. banc 1991).
Typically, population-based classifications are considered open-ended as others may fall into the classification and some current members may leave it. City of DeSoto, 476 S.W.3d at 287; see, e.g., State ex rel. Fire Dist. of Lemay v. Smith, 353 Mo. 807, 184 S.W.2d 593, 595 (Mo. banc 1945) (holding that a statute applying only to counties with 200,000 to 400,000 inhabitants was not a special law, despite only applying to St. Louis County at the time, because the act would apply to other counties that attain such a population in the future); Hull v. Baumann, 345 Mo. 159, 131 S.W.2d 721, 723 (1939) (“The classification of counties or cities according to population so that other counties and cities may come within the terms of the law in the future does not make the act a special law in violation of our Constitution, although such act applies only to one county or one city in the state at the time of its enactment because the population thereof is the only one within the limits fixed by the act at the time of its passage.”); State ex rel. Hollaway v. Knight, 323 Mo. 1241, 21 S.W.2d 767, 768 (Mo. banc 1929) (holding that a statute applying only to counties with more than 300,000 and less than 600,-000 inhabitants was not a special law because “[t]he classification of counties or cities according to population, so that other counties and cities may come within the terms of the law in the future, does not make the act a special law”).
Some population-based statutory classifications may nonetheless be considered special laws if the presumption of their constitutional validity is overcome. The rationale for holding that population classifications are open-ended is defeated when.the classification is so narrow that “as a practical matter others could not fall into that classification.” 205 S.W.3d at 870. In Jefferson County, a population-based classification applying to counties with more than 198,000 but fewer than 199,200 inhabitants was held to be a special law
(1) a statute contains a population classification that includes only one political subdivision, (2) other political subdivisions are similar in size to the targeted political subdivision, yet are not included, and (3) the population range is so narrow that the only apparent reason for the narrow range is to target a particular political subdivision and to exclude all others. If all three circumstances exist, the law is no longer presumed to be general, but is presumed to be a special law, requiring those defending it to show substantial justification for the classification.
Id. at 870-71. When a statutory population classification is so narrow, to consider it open-ended “would contravene the purpose behind the constitutional prohibition against special legislation.” Id. at 870.
A. SB 5 satisfies the Jefferson County three-prong test
1. St. Louis County is the only political subdivision to meet the classification in the challenged sections of SB 5
The State agrees the population-based classification and the charter form of government requirement in sections 67.287 (requiring minimum standards for certain municipalities) and 479.359.2 (imposing a lower revenue cap for certain municipalities) meet the first prong of the Jefferson County test as the classifications only apply to one political subdivision. According to the 2010 census of the United States,
2. Other municipalities similar in size to those within St. Louis County are excluded from SB 5
Although the applicability of the next two prongs of the Jefferson County test are contested by the State, they are satisfied under the facts of this case. The State argues the second prong is not met because no county is similar in size to St. Louis County and is excluded from coverage. The most populous counties after St. Louis County, according to the 2010 census, are Jackson County with 674,158 inhabitants
This argument ignores the fact that the challenged statutes in SB 5 target not only St. Louis County but also the municipalities within it. Because of the special law provisions in SB 5, the 90 municipalities in St. Louis County are the only municipalities in the state that are required to enact minimum standards (section 67.287) and a lower cap on fines, bond forfeitures, and court costs (section 479.359.2). Populations of municipalities within St. Louis County range from 52,158 (the city of Florissant)
3. The only apparent reason for the challenged classifications in SB 5 was to target St. Louis County
The third prong of the Jefferson County test was recently clarified in City of DeSo-to. The statute at issue in City of DeSoto excluded from its coverage any city that met all of the following six criteria:
(1) operate[s] a city fire department, (2) [is] a third-class city, (3) [has] more than 6,000 but fewer than 7,000 inhabitants, (4) [is] located in any county with a charter form of government with (5) more than 200,000 but fewer than 350,-000 inhabitants, and (6) [is] entirely surrounded by a single fire protection district.
476 S.W.3d at 288. City of DeSoto rejected the State’s argument that the Court should look at each criterion individually, “asking itself whether any other city someday might meet any particular criterion.” Id. Because the statute required a city to meet all six criteria to be excluded from coverage, the Court considered “[t]he combined effect of the six criteria.” Id, at 288-89 (emphasis added).
To begin, De Soto was the only city that fell into the third-class city population window. Id. at 289. Both parties agreed Jefferson County was the only county that fell within the 200,000 to 350,000 county population range set out in the statute. Id. Neither party identified any other county that, “as a practical matter, is likely to fall within the range of 200,000 to 350,000 in the foreseeable future.” Id. (emphasis added).' The other four criteria solidified the Court’s decision that the statute was a special law because
[t]he likelihood of all of these factors converging and of another city coming within the scope of [the statute] is sufficiently unlikely that, in the words of Jefferson County, “the only apparent reason for the narrow range is to target a particular political subdivision and to exclude all the others.”
Id. at 290 (quoting Jefferson Cnty., 205 S.W.3d at 871).
While the statutes in this case do not involve as many criteria as the statute at issue in City of DeSoto, sections 67.287 and 479.359.2 nonetheless include two criteria: counties with a charter form of government and with more than 950,000 inhabitants.
Over the past 100 years, St. Louis County’s population has increased every census except in 2010, when its population dropped 1.7 percent from 1,016,300 in 2000 to 998,954.
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The United States Census Bureau further estimates St. Louis County’s population in 2016 to be 998,581.
Because the General Assembly is presumed to not have enacted meaningless provisions, Bachtel v. Miller Cnty. Nursing Home Diet, 110 S.W.3d 799, 805 (Mo. banc 2003), this Court can safely presume the General Assembly knew when it passed SB 5 in 2015 that St. Louis County was the only charter county with a population more than 950,000 and because it has been the only county to meet the criteria since 1970.
The State also contends St, Louis County voters could choose to opt out of both sections 67.287 and 479.359.2 by replacing them charter form of government. St. Louis County voters, however, adopted a charter form of government in 1950, and there was no evidence voters will decide to change their form of government in the foreseeable future.
The State further argues the population classifications in sections 67.287 and 479.359.2 fail the third prong of Jefferson County’s, special law test because there is no upper limit on the population classifications, and, as a result, the population classifications cannot be considered narrow. While the State is correct that this is an important distinction from prior cases, it is not dispositive here. There need not necessarily be a threshold coupled with a ceiling in a statutory population classification such that it creates a relatively small window into which a political subdivision must fit for a statute to be an unconstitutional special law. Like the statutes here, it is sufficient that the population classification is sufficiently high or low that it applies to only one political subdivision currently and will only apply to one political subdivision for the foreseeable future. In such a case, -the same reasoning set out in City of DeSoto and in Jefferson County applies if one substitutes the words “population minimum” for the words “narrow range”: “the only apparent reason for the [population minimum] is to target a particular political subdivision and to exclude all others.” See Jefferson Cnty., 205 S.W.3d at 871. Because the challenged sections of SB 5 clearly targeted St. Louis County and excluded all other political subdivisions, both sections 67.287 and 479.359.2 fall within the reasoning set out in the third prong of Jefferson County.
A The analysis of this opinion shall apply prospectively
As all three prongs of Jefferson County are satisfied here, the presumption of constitutional validity of sections 67.287 and 479.359.2, insofar as it creates a separate cap on counties with a charter form of government and more than 950,000 inhabitants, is overcome and the statutes are presumed special laws. See Jefferson Cnty., 205 S.W.3d at 871. Jefferson County applied its holding prospectively, as it was the first case to articulate that a narrow population range in a statute could be considered a special law.
B. The State offered no evidence of a substantial justification for the special law provisions of SB 5
When, as here, a challenged statute is presumed a special law, the State must show substantial justification for the special treatment. Id. This burden shifting was first established in 1993 in O’Reilly v. City of Hazelwood, 850 S.W.2d 96, 99 (Mo. banc 1993). O’Reilly, in analyzing the meaning of article III, section 40(30), found this provision does not bar special legislation; rather, it “requires the judiciary to determine whether a general law could have been made applicable ‘without regard to any legislative assertion on that subject.’” 850 S.W.2d at 99 (quoting Mo. Const. art. III, sec. 40(30)).
A special law can certainly survive constitutional infirmity if the State offers evidence of a substantial justification. In fact, since O’Reilly, this Court has upheld special laws when the party defending them presented evidence of substantial justification for the special treatment.
The State concedes it did not present any evidence of substantial justification in the trial court because it believed the statutes did not meet the Jefferson County presumption of special laws test. By presenting no evidence of substantial justification for the presumed special laws, the State failed to overcome the presumption of constitutional invalidity.
Of course, special laws like this may be passed by the General Assembly in the future and can survive a special law challenge as long as evidence of substantial justification is offered in the trial court. Because the State failed to present evidence of a substantial justification for the special treatment, portions of SB 5 passed in 2015 violate the Missouri Constitution. This Court cannot ignore article III, section 40(30)’s prohibition against special laws.
It is the duty of this Court to be faithful to the constitution. “[I]t cannot ascribe to it a meaning that is contrary to that clearly intended by the drafters. Rather, a court must undertake to ascribe to the words of a constitutional provision the meaning that the people understood them to have when the provision was adopted.”
Id. at 872 (quoting Farmer v. Kinder, 89 S.W.3d 447, 452 (Mo. banc 2002)).
City of DeSoto made clear that “the legislature may not defeat the purpose of the prohibition against special laws by adopting a provision that on its face appears general and open-ended, but which realistically applies only to a specific or narrow group of subjects.” Id. at 287. As the population classifications in sections 67.287 and 479.359.2 will only apply to St. Louis County for the foreseeable future and the State failed to provide evidence in the trial court to demonstrate substantial justification for the special treatment, this Court holds that both statutes are unconstitutional special laws. The trial court’s permanent injunction enjoining the State from enforcing these specific sections is affirmed.
Pursuant to this Court’s authority under section 1.140, RSMo 2000, section 479.359.2, insofar as it provides “except that any county with a charter form of government and with more than nine hundred fifty thousand inhabitants and any city, town, or village with boundaries found within such county shall be reduced from thirty percent to twelve and one-half percent,” is severed from the rest of section 479.359.2, resulting in a 20-per-cent cap on fines, bond forfeitures, and court costs applying statewide.
The State also appeals the trial court’s judgment that SB 5, as codified in sections 67.287 and 479.359.8, included unfunded mandates for the cities of Normandy and Pagedale
The Hancock Amendment to the Missouri Constitution prohibits the General Assembly “from requiring any new or expanded activities by counties and other political subdivisions without full state financing.” Mo, Const, art. X, sec. 16. It also provides that the General Assembly shall not impose a new activity or service on a political subdivision or increase a political subdivision’s level of activity or service “unless a state appropriation is made and disbursed to pay the county or other political subdivision for any increased costs.” Id. sec. 21.
There is a two-prong test for determining whether a statute is an unconstitutional unfunded mandate, “The first prong ... is established when the State requires local entities to begin a new mandated activity or to increase the level of an existing activity beyond the level required on November 4, 1980.” Breitenfeld v. Sch. Dist. of Clayton, 399 S.W.3d 816, 826 (Mo. banc 2013). The second prong is satisfied when “the State provides insufficient funding to offset the full costs of compliance” and political subdivisions experience increased costs in performing the new activity or service.’ Id. at 827. A Hancock Amendment challenge “is not ripe without specific proof of new or increased duties and increased expenses, and these elements cannot be established by mere ‘common sense,’ or ‘speculation and conjecture.’” Brooks v. State, 128 S.W.3d 844, 849 (Mo. banc 2004) (emphasis added). The second prong further requires proof that political subdivisions have actually experienced an increase in costs.
Here, the evidence presented concerned speculative costs of complying with some of the mandates of SB 5. Of all of the new statutory obligations required by section 67.287.2, Plaintiffs offered evidence in regard to only section 67.287.2(6), municipal police department accreditation. Their sole evidence was testimony from a former municipal police chief about the potential cost of obtaining and maintaining accreditation for Pagedale’s police department.
Plaintiffs’ other Hancock Amendment claim concerned the amended Macks Creek Law, section 479.359.3, which requires an addendum be submitted with the annual financial report to the state auditor detailing (1) the political subdivision’s annual general operating revenue; (2) the total revenue collected from fines, bond forfeitures, and minor traffic violation court costs; and (3) the percent of the annual general operating revenue derived from fines, bond forfeitures, and minor traffic violation court costs.
Many of the requirements of section 479.359.3 are found in the previous version of the Macks Creek Law, such as requiring political subdivisions to include an accounting of the percentage of their annual general operating revenue from fines and court costs. Sec. 302.341.2. The only neio activity Plaintiffs challenged is the obligation to attach an addendum to their annual financial reports showing the figures used in calculating the percent of their annual general operating revenue derived from fines, bond forfeitures, and court costs for minor traffic violations.
Plaintiffs argue the new requirement under section 479.359.3(4) requiring the addendum be “certified and signed by a representative with knowledge of the subject matter as to the accuracy of the addendum contents, under oath and under the penalty of perjury, and witnessed by a notary public” is more than de minimis because of the potential criminal implications. Plaintiffs offered evidence of only the cost of calculating the annual general operating revenue and court costs, which was not challenged. There was no evidence presented about any additional cost—either financial or time spent—needed for a municipality to certify and sign an accurate addendum. Although the State concedes that, under SB 5, municipalities are required to calculate more items than under the previous law, this increased duty is de minimis.
The trial court’s judgment declaring that sections 67.287 and 479.359.3 violate the Hancock Amendment is reversed, and the claims are dismissed.
III. SB 5 Does Not Violate the Separation of Powers Doctrine
Plaintiffs’ cross-appeal challenges the trial court’s dismissal of Counts V, VI, VII, and VIII in their petition.
Article II, section 1 of the constitution provides for the separation of powers among the legislative, executive, and judicial branches of state government and prohibits one branch from exercising powers belonging to another. Plaintiffs assert provisions in SB 5 shift this Court’s inherent authority to supervise municipal courts as found in article V, section 4 of the Missouri Constitution to the director