Church of St. Francis De Sales v. Public Serv. Comm’n, 447 N.Y.S.2d 395 (1982)
A parochial school that teaches both secular and religious subjects is considered ‘exclusively religious’ under Public Service Law § 76 and is entitled to the lower domestic utility rate because its primary purpose is religious education, even if secular subjects are part of the curriculum.
Summary
Several churches challenged the Public Service Commission’s (PSC) decision to deny them the lower ‘domestic’ utility rate for their parochial schools, arguing that their schools, which taught both secular and religious subjects, were ‘exclusively religious’ under Public Service Law § 76. The PSC argued that teaching secular subjects disqualified the schools. The Court of Appeals reversed the Appellate Division’s ruling, holding that the parochial schools were primarily religious because the teaching of religious beliefs pervaded all subjects, entitling them to the domestic utility rate. The court emphasized that the schools’ primary purpose was religious education, making them ‘exclusively religious’ despite the inclusion of secular subjects in the curriculum.
Facts
The petitioners were churches operating parochial schools where students received instruction in both religious tenets and secular subjects. These schools were located on church property and used classrooms for both types of instruction. Prior to 1979, the utility company billed the combined church and school operations at the lower ‘domestic rate,’ applicable to organizations conducted for religious purposes. In 1979, the utility informed the churches that the general service rate would be applied because the schools taught secular subjects, which the utility argued meant they were not ‘exclusively for religious purposes.’
Procedural History
The churches filed a complaint with the Public Service Commission (PSC), which ruled against them. The churches then commenced an Article 78 proceeding to annul the PSC’s determination. The Supreme Court granted relief to the churches. The Appellate Division reversed the Supreme Court’s decision and reinstated the PSC’s determination. The churches then appealed to the New York Court of Appeals.
Issue(s)
Whether parochial schools, which teach both secular and religious subjects, are operated ‘exclusively’ for religious purposes within the meaning of Public Service Law § 76, thus entitling them to the lower ‘domestic’ utility rate.
Holding
Yes, because the teaching of religious beliefs is the paramount objective and pervades all subjects, whether secular or religious, making the parochial schools primarily or ‘exclusively religious’ within the meaning of section 76 of the Public Service Law.
Court’s Reasoning
The Court of Appeals reasoned that while religious services are undoubtedly ‘exclusively religious,’ the term extends beyond just services. Religious organizations traditionally engage in various activities incidental to their religious goals. The court drew parallels to tax exemption statutes, which also use the term ‘exclusively religious’ and have been interpreted to include activities reasonably incidental to religious goals, such as a farm operated by a religious organization to feed its members. The court found that a school operated by a church to educate its children in a religious context is even more intimately related to religious objectives.
The court rejected the argument that including secular subjects meant the facilities were partly devoted to nonreligious purposes. Instead, it emphasized that the teaching of secular subjects by a religious school is an integral part of the church’s belief that knowledge of the world should be conveyed and considered in a religious context. The court stated, “Partial or part-time use of a religious facility for nonreligious purposes does not make it any less religious unless, of course, the secular use is the predominant one.” The court adopted the ‘primarily or principally used for religious purposes’ test. Because the record showed that the teaching of religious beliefs was the paramount objective pervading all subjects, the court concluded that the schools were primarily or ‘exclusively religious’ and entitled to the domestic utility rate. The court quoted NLRB v. Catholic Bishop of Chicago, 440 U.S. 490, 503, stating that parochial schools’ primary reason for existence is “the propagation of a religious faith.”