School District No. 1 in the City and County of Denver v. Masters
School District No. 1 in the City and County of Denver v. Masters
Opinion
*725
¶ 1 Teachers who work for Denver Public Schools ("DPS"), together with the Denver Classroom Teachers Association (collectively, "the teachers"), filed this suit, alleging that DPS invoked Senate Bill 10-191-which under certain circumstances allows a school district to place a nonprobationary teacher on unpaid leave-to remove hundreds of teachers from their positions in violation of both due process of law and the contracts clause of the Colorado Constitution. School District No. 1 and members of the Colorado Board of Education (collectively, "the District") moved to dismiss the suit, and the trial court granted that motion. A division of the court of appeals reversed, relying on our decisions interpreting predecessor statutes to the relevant, now-codified law-the Teacher Employment, Compensation, and Dismissal Act of 1990 ("TECDA")-and concluding due process violations occurred under those predecessor statutes.
Masters v. Sch. Dist. No. 1
,
¶ 2 We granted certiorari 1 and now reverse. We hold that TECDA did not create a *726 contractual relationship or vest nonprobationary teachers who are placed on unpaid leave with a property interest in salary and benefits.
I. Facts and Procedural History
¶ 3 The Teacher Employment, Dismissal, and Tenure Act of 1967 ("TEDTA"), ch. 435, sec. 1, §§ 123-18-1 to -18,
¶ 4 TEDTA laid out the procedure to dismiss a tenured teacher. This procedure included the filing of charges with the board of the employing school district, written notice to the teacher, entitlement to a hearing by an administrative law judge, and the opportunity for judicial review. See § 22-63-117(1)-(11), C.R.S. (1988). It also provided that a school district could cancel a tenured teacher's contract without penalty "when there is a justifiable decrease in the number of teaching positions." § 22-63-112(3), C.R.S. (1988).
¶ 5 TEDTA likewise provided for teacher transfer. A school district's chief administrative officer could transfer a teacher from one school to another within the school district, provided that the teacher was qualified for her new position:
A teacher may be transferred upon the recommendation of the chief administrative officer of a school district from one school, position, or grade level to another within the school district, if such transfer does not result in the assignment of the teacher to a position of employment for which he or she is not qualified by virtue of academic preparation and certification and if, during the then current school year, the amount of salary of such teacher is not reduced except as otherwise provided in subsections (2) and (3) of this section.
§ 22-63-114(1), C.R.S. (1988). The receiving school could not refuse to accept a transferred teacher.
¶ 6 In 1990, the General Assembly supplanted TEDTA by enacting the Teacher Employment, Compensation, and Dismissal Act of 1990 ("TECDA"). Ch. 150, sec. 1, §§ 22-63-101 to -403,
¶ 7 Despite removing tenure language, TECDA did retain some of TEDTA's provisions. Specifically, TECDA retained TEDTA's for-cause grounds for teacher dismissal, § 22-63-301, C.R.S. (1990), and its procedures to dismiss a teacher, with some differences not relevant for our purposes, see *727 § 22-63-302(1) - (10), C.R.S. (1990). And TECDA retained TEDTA's transfer language. Compare § 22-63-114(1), C.R.S. (1988), with § 22-63-206(1), C.R.S. (1990).
¶ 8 But in 2010, the General Assembly enacted Senate Bill 10-191 ("SB 191"), which amended requirements for teacher contracts and the transfer process. Ch. 241,
¶ 9 SB 191 also provides procedures for teachers who are unable to secure mutual-consent assignments. Nonprobationary teachers 4 who were deemed effective during the prior school year, but who have not secured a mutual-consent assignment, become members of a "priority hiring pool," ensuring them the first opportunity to interview for a "reasonable number of available positions for which [they are] qualified in the school district." § 22-63-202 (2)(c.5)(III)(A). But SB 191 does not promise an assignment. Instead, it provides that if a nonprobationary teacher fails to secure a position after the longer of twelve months or two hiring cycles, the teacher is placed on unpaid leave until he or she secures an assignment. § 22-63-202(2)(c.5)(IV).
¶ 10 Respondents here are DPS teachers who had achieved nonprobationary status but were nevertheless placed on unpaid leave. 5 In 2014, the teachers filed this action, alleging that SB 191 violates the contract and due process clauses of Colorado's constitution, Colo. Const. art. II, §§ 11, 25, and seeking declaratory and injunctive relief, as well as back pay and attorney's fees. In their amended complaint, the teachers allege that DPS has invoked the mutual-consent provisions of SB 191 "to remove hundreds of teachers from their teaching positions." The teachers describe the mutual-consent provisions as allowing DPS to "effectively discharge many of those teachers altogether without cause, notice, or hearing," including many "experienced educators with excellent professional records who had earned nonprobationary status under TECDA before they were discharged."
¶ 11 The District moved to dismiss the action under C.R.C.P. 12(b)(5), and the trial court granted that motion. A division of the court of appeals reversed.
Masters
, ¶ 40. The division below relied on our decisions holding that TEDTA-TECDA's predecessor-created a contract, and it therefore determined that TECDA also created contractual rights.
Id.
at ¶¶ 20-23. Hence, it concluded that the trial court should not have dismissed the contract clause claim.
Id.
at ¶ 24. On the due process claim, the division determined that sections 22-63-301 to - 302"create a constitutionally protected property interest in continued employment" for nonprobationary teachers.
Id.
at ¶ 28 (citing
*728
Feldewerth v. Joint Sch. Dist. 28-J
,
¶ 12 The District asked us to review the court of appeals' decision. We granted certiorari and now reverse.
II. Standard of Review
¶ 13 We review a trial court's ruling on a motion to dismiss de novo, "applying the same standards as the trial court."
Bly v. Story
,
¶ 14 But we do not defer to a complaint's legal conclusions. Instead, we interpret statutes and determine their constitutionality de novo.
Justus v. State
,
III. Analysis
¶ 15 We first look to whether TECDA's language created a contract with the teachers such that the General Assembly was bound to maintain its forced-placement system. Considering that language in light of TECDA's predecessor statute, we hold that TECDA did not create a contractual relationship. Next, we turn to whether TECDA vests in teachers a property interest in salary and benefits. Because nonprobationary teachers who are placed on unpaid leave do not have a property interest in salary and benefits, as we concluded today in Johnson , ¶ 24, we conclude that the District has not violated the teachers' right to due process.
A. TECDA Did Not Create a Contract
¶ 16 The Colorado Constitution provides that "[n]o ... law impairing the obligation of contracts ... shall be passed by the general assembly." Colo. Const. art. II, § 11. Colorado's constitutional provision is "virtually identical" to the Contracts Clause in the United States Constitution, and Colorado courts apply the same three-part inquiry for claims brought under both: "(1) does a contractual relationship exist; (2) does the change in the law impair that contractual relationship; and if so, (3) is the impairment substantial?"
Justus
, ¶¶ 18-19,
¶ 17 We presume that the legislature did not intend to bind itself contractually without a "clear indication of the legislature's intent to be bound."
Id.
at ¶ 20,
¶ 18 The teachers rely heavily on
State of Indiana ex rel. Anderson v. Brand
,
¶ 19 Nothing in TECDA provides a "clear indication of the legislature's intent to be bound" sufficient to overcome the presumption that the legislature did not intend to bind itself contractually.
See
Justus
, ¶ 20,
¶ 20 The General Assembly's removal of key language from TECDA's predecessor statute confirms our conclusion. Whereas TEDTA made pervasive use of the term "tenure," TECDA omits it entirely. Compare §§ 22-63-101 and - 102, C.R.S. (1988), with §§ 22-63-101 and - 103, C.R.S. (1990). And whereas TEDTA provided that under certain circumstances a teacher is "entitled to a position of employment as a teacher," § 22-63-115(1), C.R.S. (1988), TECDA uses no such entitlement language.
¶ 21 The teachers' reliance on cases interpreting TECDA's predecessor statutes in which we found that their language evinced legislative intent to create a contract is therefore misplaced. As the trial court noted, the changes from previous iterations of the law indicate the General Assembly's intent not to be bound. Thus, our decisions regarding TECDA's predecessor statutes, including
Maxey v. Jefferson County School District No. R-1
,
¶ 22 In sum, TECDA does not clearly indicate the General Assembly's intent to be bound by a contractual relationship. In fact, it indicates the opposite, as it is devoid of the entitlement and durational language that its predecessor statute contained. Accordingly, we hold that TECDA did not create a contractual relationship. Because no such relationship exists, we need not reach the remaining two prongs of the contract clause analysis.
See
Justus
, ¶ 37,
B. Nonprobationary Teachers Who Are Placed on Unpaid Leave Do Not Have a Property Interest in Salary and Benefits
¶ 23 Colorado's constitution guarantees that "[n]o person shall be deprived of life, liberty or property, without due process of law." Colo. Const. art II, § 25. The teachers argue that a nonprobationary teacher who, pursuant to SB 191's paragraph (c.5), is placed on unpaid leave without a hearing is deprived of a property interest without due process. We disagree.
¶ 24 In
Johnson
, also announced today, we concluded that nonprobationary teachers who are placed on unpaid leave do not have a property interest in salary and benefits under TECDA. ¶ 24. Because the state constitution protects property interests
*730
that are "defined by existing rules or understandings that stem from an independent source such as state law,"
Dove Valley Bus. Park Assocs. v. Bd. of Cty. Comm'rs
,
¶ 25 Thus, regardless of the changes that SB 191 made to TECDA's teacher-transfer process, a nonprobationary teacher who is placed on unpaid leave pursuant to section 22-63-202(2)(c.5)(IV) has not suffered any violation of her right to due process.
See
Williams v. White Mountain Constr. Co.
,
IV. Conclusion
¶ 26 We hold that TECDA did not create a contractual relationship or vest nonprobationary teachers who are placed on unpaid leave with a property interest in salary and benefits. Thus, we conclude that the General Assembly has not impaired a contractual obligation by enacting SB 191, and that the teachers have not suffered a violation of their right to due process and thus have failed to prove that SB 191 is unconstitutional beyond a reasonable doubt. We therefore reverse the judgment of the court of appeals and remand the case to that court with instructions to return the case to the trial court for dismissal.
This opinion was originally assigned to another Justice but was reassigned to Justice Boatright on November 3, 2017.
We granted certiorari to review these four issues:
1. Whether promises made in now-repealed tenure statutes passed in the 1950s and 1960s contractually bind the General Assembly, preventing it from altering the policy of "forced placement" for current schoolteachers.
2. Whether, in debating and voting on S.B. 191, the General Assembly satisfied due process for teachers who were previously entitled to "forced placement."
3. Whether, given this Court's modern contract clause precedent, the court of appeals erred in finding that a legislative contract exists that prevents the Legislature from amending the statute regulating public school teachers' employment.
4. Whether the court of appeals erred in holding that Howell v. Woodlin School District ,198 Colo. 40 ,596 P.2d 56 (1979) mandates that Plaintiffs-Respondents were due additional process beyond the legislative process.
We cite to the 1988 Colorado Revised Statutes when discussing TEDTA because in that year, as today, the relevant provisions were codified in title 22, whereas in some earlier years they were codified elsewhere.
Specifically, TECDA required that a committee to study teacher employment and compensation issues include as a member "[o]ne person from the business community knowledgeable about teacher employment and tenure issues." § 22-63-104(III)(E), C.R.S. (1990).
As we noted, before SB 191, a probationary teacher was "a teacher who has not completed three full years of continuous employment with the employing school district and who has not been reemployed for the fourth year." § 22-63-103(7), C.R.S. (1990). Today, a probationary teacher is "a teacher who has not completed three consecutive years of demonstrated effectiveness or a nonprobationary teacher who has had two consecutive years of demonstrated ineffectiveness, as defined by rule adopted by the general assembly pursuant to section 22-9-105.5."§ 22-63-103(7), C.R.S. (2017). The teachers do not challenge this change.
Respondents also include two DPS teachers who have achieved nonprobationary status and who have not been placed on unpaid leave, as well as the Denver Classroom Teachers Association, which represents nearly 3,000 teachers employed by DPS.
Reference
- Full Case Name
- SCHOOL DISTRICT NO. 1 IN the CITY AND COUNTY OF DENVER ; And Valentina Flores, Debora Scheffel, Pam Mazanec, Steve Durham, Jane Goff, Joyce Rankin, and Angelika Schroeder, in Their Official Capacities as Members of the Colorado State Board of Education, Petitioners v. Cynthia MASTERS, Michelle Montoya, Mildred Anne Kolquist, Lawrence Garcia, Paula Scena, Jane Harmon, Lynne Rerucha, and Denver Classroom Teachers Association, Respondents.
- Cited By
- 11 cases
- Status
- Published