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IN THE SUPREME COURT OF THE UNITED STATES
- - - - - - - - - - - - - - - - - x
DAVID KING, ET AL.,
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Petitioners
:
:
v.
SYLVIA BURWELL,
SECRETARY OF HEALTH AND
HUMAN SERVICES, ET AL.
- - - - - - - - - - - - - - - - - x
No. 14-114.
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Washington, D.C.
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Wednesday, March 4, 2015
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The above-entitled matter came on for oral
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argument before the Supreme Court of the United States
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at 10:09 a.m.
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APPEARANCES:
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MICHAEL A. CARVIN, ESQ., Washington, D.C.; on behalf of
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Petitioners.
DONALD B. VERRILLI, ESQ., Solicitor General, Department
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of Justice, Washington, D.C.; on behalf of
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Respondents.
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C O N T E N T S
ORAL ARGUMENT OF
MICHAEL A. CARVIN, ESQ.
PAGE
On behalf of the Petitioners
ORAL ARGUMENT OF
DONALD B. VERRILLI, ESQ.
On behalf of the Respondents
REBUTTAL ARGUMENT OF
MICHAEL A. CARVIN, ESQ.
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On behalf of the Petitioners
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P R O C E E D I N G S
(10:09 a.m.)
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CHIEF JUSTICE ROBERTS:
We'll hear argument
this morning in Case 14-114, King v. Burwell.
Mr. Carvin.
ORAL ARGUMENT OF MICHAEL A. CARVIN
ON BEHALF OF PETITIONERS
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MR. CARVIN:
Mr. Chief Justice, and may it
please the Court:
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This is a straightforward case of statutory
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construction where the plain language of the statute
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dictates the result.
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JUSTICE GINSBURG:
Mr. Carvin, will you
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please back up, because before we get to a question of
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statutory construction, as you know, each plaintiff, or
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at least one plaintiff, has to have a concrete stake in
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these questions.
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questions.
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They can't put them as ideological
And we have as -- four plaintiffs.
As to
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two of them, there is a declaration stating "I am not
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eligible for health insurance from the government," but
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there's a question of whether they are veterans eligible
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for coverage as veterans.
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MR. CARVIN:
Yes.
One of those is Mr. Hurst
who would have to, if -- I would refer you to Joint
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Appendix at PAGE 42, where this is the government's
recitation of facts where they make it clear that
Mr. Hurst would have to spend $750 of his own money as
a -- because of the IRS rule.
Mr. Hurst was a veteran for 10 months in
1970.
because if you've served such a short -- health
services.
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I -- I'll ask the
government if they agree that -MR. CARVIN:
And I should point out that the
government has never disputed this, and I'd also like --
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If you serve such a short -JUSTICE GINSBURG:
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He is not eligible for any veterans service
JUSTICE GINSBURG:
But the Court has an
obligation to look into it on its own.
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MR. CARVIN:
That's true, but of course
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there has been fact-finding by lower courts in an
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adversarial system.
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own --
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I don't believe the Court does its
JUSTICE GINSBURG:
I don't think it was ever
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brought up in the lower court that these -- these two
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people were veterans.
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MR. CARVIN:
If I could just make one
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further point on this, Justice Ginsburg.
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were technically eligible, which he is not, there is an
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IRS Rule 26 C.F.R. 1.36B-2(c)(ii), which says --
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JUSTICE SCALIA:
MR. CARVIN:
Ah, yes.
With the usual clarity of the
IRS code, making clear that you are only disabled from
receiving subsidies if you have actually enrolled in a
veteran's health services and it's undisputed that --
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JUSTICE GINSBURG:
That's the government
that's --
MR. CARVIN:
JUSTICE GINSBURG:
-- Mr. Hurst did not.
-- that's deposition to.
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And then there were the two women, I think one of them
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was going to turn 65 in June, which would make her
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Medicaid-eligible.
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MR. CARVIN:
She will turn 65 in late June.
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She's obviously subject to the individual mandate well
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in advance of that.
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would have to spend $1800 per year for health insurance
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by virtue of the IRS --
By virtue of the IRS rule, she
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JUSTICE GINSBURG:
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MR. CARVIN:
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JUSTICE GINSBURG:
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Excuse me?
MR. CARVIN:
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JUSTICE GINSBURG:
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But you said she will
turn 65 in June.
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Per year?
Late June, yes.
So that takes care of
2015.
MR. CARVIN:
No.
Right now she is obliged
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under the individual mandate to have insurance.
you have to have insurance for 9 months of the year and
so as of April 1st --
JUSTICE GINSBURG:
MR. CARVIN:
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You --
Then --
-- she will be subject to the
penalty which will be alleviated only by -JUSTICE GINSBURG:
Again, I'll ask the
government if they agree with you on that.
And then I think for the fourth plaintiff,
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there's a question whether she would qualify for a
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hardship -- hardship exemption from the individual
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mandate even if she received the tax credit, in which
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case the tax credits would be irrelevant.
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MR. CARVIN:
That's true.
Again, I'll refer
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you to the Joint Appendix at 41.
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government's argument below.
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a factual dispute about it because we had such clear
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standing with respect --
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JUSTICE GINSBURG:
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MR. CARVIN:
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JUSTICE GINSBURG:
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We didn't want to get into
Yeah, but you have to --
-- to -But you would have to
establish the standing, prove the standing.
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MR. CARVIN:
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JUSTICE GINSBURG:
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That was the
Well, as -If this gets beyond the
opening door.
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MR. CARVIN:
Fair enough, Your Honor, but --
but it's black-letter law that only one plaintiff needs
standing, and for the reasons I've already articulated,
both Plaintiff Hurst and Plaintiff Levy have.
JUSTICE GINSBURG:
Okay.
I don't want to
detain you on this any more but I will ask the
government what their position is on standing.
MR. CARVIN:
Returning to the merits, the only provision
Thank you.
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in the Act which either authorizes or limits subsidies
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says, in plain English, that the subsidies are only
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available through an exchange established by the State
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under Section 1311.
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JUSTICE BREYER:
If you're going to
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elaborate on that, I would appreciate your -- in your
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elaboration, I've read that, and this statute is like
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the tax code more than it's like the Constitution.
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There are defined terms, and the words you just used
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concern a defined term.
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As I read the definition, there's a section,
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Definitions, and it says, quote, The term "Exchange"
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means, quote, an exchange established under 1311.
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1311 says, An Exchange shall be a government agency,
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et cetera, that is established by a State.
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the definitions.
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So then you look to 1321.
And 1321 says, if
a State does not set up that Exchange, then the Federal,
quote, secretary shall establish and operate such
Exchange.
So it says, "The Secretary is to establish
and operate such Exchange," the only kind of Exchange to
which the Act refers, which is an -- quote, "an Exchange
established by a State under 1311."
definition.
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So the statute tells the Secretary, set up
such Exchange, namely, a 1311 State Exchange.
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MR. CARVIN:
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JUSTICE BREYER:
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Correct.
MR. CARVIN:
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JUSTICE BREYER:
they're talking about.
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And there's nothing else in
this statute.
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That's the
MR. CARVIN:
Correct.
So that's throughout what
So what's the problem?
As Your Honor just said, it
tells the Secretary to establish such Exchange.
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JUSTICE BREYER:
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MR. CARVIN:
Yes.
And what 36B turns on is
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whether the State or the Secretary has established the
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Exchange.
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JUSTICE BREYER:
No, it uses the same
terminology that it's used in -- 15 times in this
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statute, namely, the terminology in the definition is
"an Exchange established by a State."
MR. CARVIN:
JUSTICE BREYER:
MR. CARVIN:
Under -That's the phrase.
Well, under 1311, that is the
phrase.
section created some ambiguity as to whether HHS was
establishing a 1311 or 1321 Exchange, that is immaterial
because 36B does not say all 1311 Exchanges get
And if 1311 created some -- the definitional
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subsidies, it says Exchanges established by the State
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under Section 1311 --
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JUSTICE KAGAN:
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MR. CARVIN:
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-- not established by HHS under
Section 1311 --
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JUSTICE KAGAN:
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MR. CARVIN:
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Mr. Carvin.
Mr. Carvin.
-- so it eliminates any
potential ambiguity created by the definitional section.
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JUSTICE KAGAN:
Can -- can I offer you a
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sort of simple daily life kind of example which I think
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is linguistically equivalent to what the sections here
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say that Justice Breyer was talking about?
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So I have three clerks, Mr. Carvin.
Their
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names are Will and Elizabeth and Amanda.
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first clerk, I say, Will, I'd like you to write me a
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memo.
Okay?
So my
And I say, Elizabeth, I want you to edit Will's
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memo once he's done.
Will is too busy to write the memo, I want you to write
such memo.
And then I say, Amanda, listen, if
Now, my question is:
If Will is too busy to
write the memo and Amanda has to write such memo, should
Elizabeth edit the memo?
(Laughter.)
MR. CARVIN:
If you're going to create
moneys to Will for writing the memo and Amanda writes
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the memo and you say, the money will go if Will writes
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the memo, then under plain English and common sense, no,
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when Amanda writes the memo --
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JUSTICE KAGAN:
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MR. CARVIN:
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JUSTICE KAGAN:
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Gosh --
-- but now --- you -- you run a
different shop than I do if that's the way --
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(Laughter.)
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JUSTICE KAGAN:
Because in my chambers, if
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Elizabeth did not edit the memo, Elizabeth would not be
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performing her function.
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a substitute, and I've set up a substitute.
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I've given -- I've given instructions:
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write -- you edit Will's memo, but of course if Amanda
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writes the memo, the instructions carry over.
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knows what she's supposed to do.
In other words, there's a -And then
Elizabeth, you
Elizabeth
She's supposed to edit
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Amanda's memo, too.
MR. CARVIN:
And -- and in your chambers,
you're agnostic as to whether Will, Elizabeth or Amanda
writes it.
1311, Congress was not agnostic as to whether States or
HHS established the Exchange.
But the key point is here under Section
It's --
JUSTICE ALITO:
those clerks, I had the same clerks --
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Well, Mr. Carvin, if I had
(Laughter.)
JUSTICE ALITO:
-- and Amanda wrote the
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memo, and I received it and I said, This is a great
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memo, who wrote it?
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by Will, because Amanda stepped into Will's shoes?
Would the answer be it was written
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MR. CARVIN:
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(Laughter.)
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JUSTICE KAGAN:
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MR. CARVIN:
That was my first answer.
He's good, Justice Alito.
Justice Kagan didn't accept it,
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so I'm going to the second answer, which is you are
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agnostic as between Will and Amanda, but this --
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JUSTICE KAGAN:
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MR. CARVIN:
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Ah, but that's --
But Congress was not agnostic
as between State and Federal Exchanges.
JUSTICE KAGAN:
Yes.
That's a very
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important point, I think, because what you're saying is
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that the answer to the question really does depend on
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context, and it depends on an understanding of the law
as a whole and whether they were agnostic.
that.
I agree with
So it's not the simple four or five words
because the four or five words in my example, it's
obvious that Elizabeth should edit the memo.
whole structure and context of the provision that
suggests whether those instructions carry over to the
substitute, isn't it?
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MR. CARVIN:
It's the
We implore you to examine these
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words in the context of the Act as a whole because our
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argument becomes stronger for five reasons.
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To respond to Justice Breyer's point, he
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says such Exchange connotes that it's the same person
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doing it.
But look at the provision on territorial
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Exchanges.
It says, territories can establish such
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Exchanges and then it says, "and shall be treated as a
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State."
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So -- so -JUSTICE BREYER:
Yes, it does.
But you say
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connote.
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a question of denotation.
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means that the Federal government, the Secretary, is
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establishing a thing for the State.
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thing?
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is defined as an Exchange established by the State.
No, it's not a question of connotation; it is
Now what does that mean?
It
And what is the
The thing that it is establishing for the State
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MR. CARVIN:
JUSTICE BREYER:
To -Now, that person from Mars,
who's literal, which I usually am not, but a literalist,
I think would have to read it that way.
if you're not a literalist, well, at least you could
read it that way.
But if you --
Now you want to go into the context -- if
you want to go into the context, at that point it seems
to me your argument really is weaker.
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MR. CARVIN:
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JUSTICE BREYER:
Well, two points.
The Exchanges fall apart,
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nobody can buy anything on them.
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arguments.
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are no customers.
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as long as they use just people from Virginia, but one
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Maryland person comes -- you know all those arguments.
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So how does the context support you?
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You know the
You've read the briefs.
Nobody can -- there
Employers don't have to pay penalties
MR. CARVIN:
Well, again, under the
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literalist or nonliteralist interpretation, saying that
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HHS will establish such Exchange doesn't suggest that
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the State has established such Exchange if there was --
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JUSTICE SOTOMAYOR:
But the State, if made
the -MR. CARVIN:
-- if there was ambiguity in
that regard -- just if I could finish my answer to
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Justice Breyer -- you look at a parallel provision where
they use precisely the same language, and they said,
"and shall be treated as a State," that language which
is notably omitted from 1321 --
JUSTICE BREYER:
MR. CARVIN:
Correct.
-- and it's a basic principle
of statutory construction that you interpret the same
phrases the same way.
how to create equivalence between non-State Exchanges
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And it shows that Congress knew
and Exchanges if and when it wanted to.
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Sorry, Justice Sotomayor.
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JUSTICE SOTOMAYOR:
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(Laughter.)
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JUSTICE SOTOMAYOR:
Take a breath.
I'm -- I'm a little
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concerned with how you envision this provision working.
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You're saying that the HHS Exchange can't be for the
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State so that it's established by the choice of the
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State.
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The choice the State had was establish your
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own Exchange or let the Federal government establish it
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for you.
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you're saying, then we're going to read a statute as
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intruding on the Federal-State relationship, because
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then the States are going to be coerced into
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establishing their own Exchanges.
That was the choice.
If we read it the way
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they can't be coerced, but let's go back to what Justice
Breyer was talking about.
In those States that don't -- their citizens
don't receive subsidies, we're going to have the death
spiral that this system was created to avoid.
are obligated, insurers are obligated to make sure that
in their States, whether they're part of this program or
not, that they have guaranteed coverage, that 26 -- that
children are covered till they're 26, and that they base
States
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their costs on community ratings.
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that, then costs are going to rise on every insurance --
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every insurance plan offered in the country in those 34
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States, 3 or 6 of -- or 9 of your States will have
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tightened their Medicaid eligibility requirements in
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contravention of the Act, so they're taking money by
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breaking their compacts.
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their Medicaid money.
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So if they have to do
They would have to lose all of
Tell me how that is not coercive in an
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unconstitutional way?
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unconstitutional way, in Bond just -- I think it was
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last term, we said that that is a primary statutory
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command; that we read a statute in a way where we don't
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impinge on the basic Federal-State relationship.
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MR. CARVIN:
And if it is coercive in an
This Court has never suggested
outside the very unusual coercion context of the NFIB
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Medicaid that a funding condition somehow invades a
State police power.
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Obviously --
JUSTICE SOTOMAYOR:
Oh, we did it -- we said
it last year.
MR. CARVIN:
In an NF -- no, no.
In Bond,
there the Federal government was taking away a police
power.
saying you want billions of free Federal dollars.
That's hardly invading State sovereignty and it's the
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kind of routine the funding condition that this Court
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has upheld countless times.
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Here, all the Federal government is doing is
JUSTICE KENNEDY:
Let me say that from the
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standpoint of the dynamics of Federalism, it does seem
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to me that there is something very powerful to the point
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that if your argument is accepted, the States are being
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told either create your own Exchange, or we'll send your
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insurance market into a death spiral.
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pay mandated taxes which will not get any credit
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on -- on the subsidies.
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sky-high, but this is not coercion.
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under your argument, perhaps you will prevail in the
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plain words of the statute, there's a serious
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constitutional problem if we adopt your argument.
We'll have people
The cost of insurance will be
It seems to me that
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MR. CARVIN:
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One is the government's never made that
Two points, Justice Kennedy.
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argument.
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Number two, I'd like to think -JUSTICE KENNEDY:
Sometimes we think of
things the government doesn't.
(Laughter.)
MR. CARVIN:
Well, I certainly hope you do
in this case, but not -- not on this question.
What -- what I'm trying to, quite seriously, Justice
Kennedy, convey is if this was unconstitutional, then
the Medicaid statute that this Court approved in NFIB
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would be unconstitutional.
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JUSTICE SCALIA:
Mr. Carvin, where the --
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what would the consequence of unconstitutionality be?
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Very often you have an ambiguous provision, could be
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interpreted one way or another way.
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one way is unconstitutional, you interpret it the other
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way.
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MR. CARVIN:
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JUSTICE SCALIA:
If interpreting it
Correct.
But do we have any case
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which says that when there is a clear provision, if it
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is unconstitutional, we can rewrite it?
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MR. CARVIN:
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JUSTICE SCALIA:
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And that -- and that -Is there any case we have
that says that?
MR. CARVIN:
No, Your Honor.
really my point, Justice Kennedy.
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consequences when -- of the Medicaid deal as being
coercive.
That has created a bizarre anomaly in the law; that if
people making less than the poverty line are not
available to any Federal funds to help them with health
insurance.
22 states have said no to the Medicaid deal.
JUSTICE KENNEDY:
I -- I fully understand
that, but I think the Court and the counsel for both
sides should confront the proposition that your argument
10
raises a serious constitutional question.
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sure that the government would agree with that, but it
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-- it is in the background of how we interpret this --
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how we interpret this statute.
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MR. CARVIN:
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JUSTICE KENNEDY:
Now, I'm not
Your Honor -It may well be that you're
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correct as to these words, and there's nothing we can
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do.
I understand that.
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JUSTICE SOTOMAYOR:
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MR. CARVIN:
There are many --
A -- A, there's no savings
20
construction to echo Justice Scalia's point; but B, the
21
point I want to make on the straight-up
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constitutionality is, if this is unconstitutional, then
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all of the provisions in the U.S. Code that say to
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States if you do something for No Child Left Behind, we
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will --
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JUSTICE GINSBURG:
But this is -- this is
quite different.
JUSTICE KENNEDY:
In -- in South Carolina v.
Dole where -- where the matter of funding for the
highway, suppose Congress said, and if you don't build
the highways, you have to go 35 miles an hour all over
the State.
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We wouldn't allow that.
MR. CARVIN:
No.
Well, there, of course,
you would be interfering with a basic State prerogative
10
as to establish their limit, and they are -- the
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condition is not related to that.
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perfectly related to it.
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JUSTICE GINSBURG:
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MR. CARVIN:
15
Here the condition is
Mr. Carvin --
We want to create something new
--
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JUSTICE GINSBURG:
Mr. Carvin, here's a --
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you refer to the Medicaid example.
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a grant-in-aid says to the State, here's the Federal
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money and here's the conditions, take it or leave it.
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That's one pattern.
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flexible State.
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you want it, and if you don't, there's a fallback.
23
There's the Federal program.
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pattern.
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can have a State implementation plan, but State, if you
That's a familiar --
But this pattern that we have says
You can -- you can have your program if
I mean, that's a typical
It's the pattern of the Clean Air Act.
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don't get up your plan, there's a Federal implementation
plan.
if you take what the statute says you can have in 1321,
then you get these disastrous consequences.
I have never seen anything like this where it's
MR. CARVIN:
That's why this is much less
risky a deal for Congress.
from Medicaid as the dissenting opinion in NFIB pointed
out.
or leave it.
And what distinguishes it
In Medicaid, Congress is playing all in, take it
If they turn down the deal, then Medicaid
10
is completely thwarted.
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subsidy deal, they still get the valuable benefits of an
12
Exchange and there's not a scintilla of --
13
Here, if they turn down the
JUSTICE GINSBURG:
What -- what are those
14
benefits?
15
What are the insurers that will sell on it?
What are the customers that can buy on it?
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MR. CARVIN:
17
One is we know textually that they thought
Well, three points.
18
Exchanges without subsidies work, because again, they
19
have territorial Exchanges, but the government concedes
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no subsidies.
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JUSTICE KAGAN:
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MR. CARVIN:
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That's not --
We have legislative history
which -JUSTICE KAGAN:
Mr. Carvin, that's not --
that's not what you said previously when you were here
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last time in this never-ending saga.
(Laughter.)
JUSTICE KAGAN:
You said the -- you said
without the subsidies driving demand within the
Exchanges, insurance companies would have absolutely no
reason to offer their products through Exchanges.
then you said the insurance Exchanges cannot operate as
intended by Congress absent the subsidies.
MR. CARVIN:
That is entirely true.
And
They
10
wouldn't have operated as intended because Congress
11
intended all 50 States to take this deal.
12
So eliminating --
13
JUSTICE SOTOMAYOR:
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all?
Obviously, they thought that some States wouldn't.
MR. CARVIN:
Well, they thought it was
possible and --
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JUSTICE SOTOMAYOR:
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MR. CARVIN:
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JUSTICE SOTOMAYOR:
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So why create 1326 at
Very possible.
And then -Because they set up a
mechanism for that to happen.
MR. CARVIN:
And then they -- what happens?
22
You still get the Exchange.
23
where the entire Federal program is thwarted.
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the benefits that were lauded.
25
JUSTICE SOTOMAYOR:
It's not like Medicaid
You get
But nobody -- no one's
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going to visit the program if there are no subsidies
because not enough people will buy the programs to stay
in the Exchanges.
MR. CARVIN:
That is demonstrably untrue and
not reflected anywhere in the legislative history.
legislative history quite clearly contradicts that.
Many senators got up and said there are very valuable
benefits to the Exchange, one-stop shopping, Amazon, as
President Obama has said.
The
The government came in the
10
last case and told you these two things operate quite
11
independently.
12
subsidies.
13
legislative history suggesting that without subsidies,
14
there will be a death spiral.
15
We don't need Exchange without
In contrast, there's not a scintilla of
JUSTICE SOTOMAYOR:
Not a word.
Wait a minute.
That was
16
the whole purpose that drove this bill because States
17
had experimented with this, and those that didn't have
18
subsidies or other -- other provisions of the Act didn't
19
survive.
20
MR. CARVIN:
21
JUSTICE SOTOMAYOR:
22
They didn't have -You said it yourself in
the prior case.
23
MR. CARVIN:
24
the individual mandate.
25
the individual mandate is necessary to affect death
No.
The prior case was about
The government came in and said
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spirals.
anywhere else, suggested that subsidies were available.
Will subsidies reduce the number of people available on
the individual --
No one, in the findings in Congress or
JUSTICE SOTOMAYOR:
My problem -- my problem
is that -- the reverse.
how -- hiding, borrowing the phrase of one of my
colleagues, a -- a -- a huge thing in a mousetrap.
Okay?
You're talking about Congress,
Because do you really believe that States fully
10
understood that they were not going to get -- their
11
citizens were not going to get subsidies if they let the
12
Federal government?
13
hearings?
14
What senator said that during the
MR. CARVIN:
The same amount of senators who
15
said that subsidies were available on HHS Exchanges,
16
which is none.
17
legislative history just as they didn't deal with
18
Medicaid because the statute was quite clear.
19
They didn't deal with it in the
Let's talk about it in context again,
20
Justice Sotomayor.
21
in the Act establishing any limit on the subsidies is
22
found in 36B.
23
you'd expect to find it.
24
that limits subsidies to purchases made on Exchange.
25
The context is the only provisions
So it's not a mouse hole.
It's the place
It's the only place in the Act
JUSTICE GINSBURG:
But it's a --
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2
JUSTICE KAGAN:
I don't know think that's
quite right, Mr. Carvin.
CHIEF JUSTICE ROBERTS:
JUSTICE GINSBURG:
It's a tax code provision
that's an implementation provision.
you compute the individual amount.
MR. CARVIN:
JUSTICE GINSBURG:
9
10
It tells you how
It -It -- it's not in the
body of the legislation where you would expect to find
this.
11
12
Justice Ginsburg.
MR. CARVIN:
No.
Your Honor, if that's
true --
13
JUSTICE GINSBURG:
14
MR. CARVIN:
15
JUSTICE GINSBURG:
And if it --
Sorry.
Please.
What Justice Kagan just
16
read to you, you had the idea that the subsidies were
17
essential --
18
MR. CARVIN:
19
JUSTICE GINSBURG:
20
21
work.
No.
-- to have the thing
That's what you told us last time.
MR. CARVIN:
What I told you was it wouldn't
22
work as expected, and that's because they thought this
23
deal would work just like the Medicaid deal where all 50
24
States would say yes, so you would have both of
25
congressional purposes.
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JUSTICE GINSBURG:
Then why in the world
would they set up this whole extra thing if they didn't
think anybody was going to take it?
MR. CARVIN:
Well, that -- that was my
response to Justice Sotomayor.
completely unsupported empirical observation made post
hoc by amicus.
legislative history.
refutes it.
10
That -- that is
There's no reflection of that in the
Indeed, the legislative history
CHIEF JUSTICE ROBERTS:
11
heard talk about this other case.
12
other case?
13
(Laughter.)
14
CHIEF JUSTICE ROBERTS:
15
MR. CARVIN:
(Laughter.)
19
MR. CARVIN:
I'm really glad Your Honor said
And -- and if I could return to
20
context because I think --
21
JUSTICE KAGAN:
Carvin.
23
24
25
So maybe it makes
that.
18
22
Did you win that
sense that you have a different story today?
16
17
Mr. Carvin, we've
Please.
MR. CARVIN:
Kagan.
I mean -- I'm sorry, Mr.
Just very briefly, Justice
Very much appreciate it.
To -- to respond, we've already talked about
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context.
It says in the strongest possible terms we want States
to run these Exchanges.
subsidies, then, of course, there is absolutely no
incentive for States to do it, and you have
fundamentally undermined that distinct statutory
purpose.
accomplishes both of its goals.
plus State-run Exchanges.
10
Section 1311 is a key part of this context.
If you give unconditional
Whereas if you condition subsidies, Congress
Widespread subsidies,
In terms of terms of art, again, there is
11
language in the statute which says
12
"Exchanges," "Exchanges under the Act."
13
naturally encompass both HHS Exchanges and
14
State-established Exchanges.
15
Those phrases
And, yet, the Solicitor General is coming
16
here to tell you that a rational, English-speaking
17
person intending to convey subsidies available on HHS
18
Exchanges use the phrase "Exchanges established by the
19
State."
20
He cannot provide to you any rational reason
21
why somebody trying to convey the former would use the
22
latter formulation.
23
CHIEF JUSTICE ROBERTS:
Mr. Carvin, why
24
don't you take an extra ten minutes and maybe we'll give
25
you a little bit more of a chance to talk.
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MR. CARVIN:
JUSTICE KAGAN:
(Laughter.)
MR. CARVIN:
Fine.
Well, then, I'll ask a
question.
Okay.
Well, if you're going to ruin
my ten minutes.
JUSTICE KAGAN:
No.
I mean, let's go back
to this question of where -- where Congress put this
thing because putting aside constitutional issues, I
10
mean, there's at least a presumption, as we interpret
11
statutes, that Congress does not mean to impose heavy
12
burdens and Draconian choices on States unless it says
13
so awfully clearly.
14
And here -- and this goes back to what
15
Justice Ginsburg was saying -- there's really nothing
16
clear about this.
17
for anybody to even notice this language.
I mean, this took a year and a half
18
And as Justice Ginsburg said, it's -- it's
19
put in not in the place that you would expect it to be
20
put in, which is where it says to the -- the States,
21
here is the choice you have.
22
the statute defines who a qualified individual is or who
23
is entitled to get the subsidies.
24
in this technical formula that's directed to the
25
Department of the Treasury saying how much the amount of
It's not even put in where
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the subsidy should be.
And that seems to be -- it both makes no
sense from Congress's point of view, and in terms of our
own point of view, in terms of interpreting statutes,
that's not the clarity with which we require the
government to speak when it's upsetting Federal-State
relations like this.
8
9
MR. CARVIN:
I must respectfully disagree
for three reasons, Justice Kagan.
In the first place,
10
of course, you -- where else would you expect a tax
11
credit except in the tax code?
12
You wouldn't put it in 42 U.S.C., which has nothing to
13
do with taxes.
14
limitations placed.
15
It's the only place where Exchange is
You have three audiences here, not just
16
States.
17
entitled to.
18
these subsidies are available.
19
you have to put it in 36B.
20
That's where this was.
You have to tell taxpayers what they're
You have to tell insurance companies when
And you have States.
So
So the argument, I guess, the government is
21
making is what you should have done is put half of it in
22
36B and half it in 1321 which, of course, would have
23
confused everybody.
24
Then you'd go to 1321 and say, when we said Exchanges in
25
36B, we meant established by the State.
36B would say, Exchanges, period.
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JUSTICE ALITO:
Mr. Carvin, if I were a --
if I were a State official and I was trying to decide
whether my State should establish an Exchange, and I
wanted to know whether individuals who enrolled in a
plan on my possible State-established Exchange would get
a credit, where would I look?
MR. CARVIN:
Exactly.
The basic thesis here
is these Exchanges don't work without subsidies.
read 1311.
You've read 1321.
Now you're going to go
10
find out where the subsidies are.
11
hypothesizing State --
12
JUSTICE KAGAN:
You've
That's 36B.
They're
The -- I think not,
13
Mr. Carvin.
14
find out about my choices is in the provision of the
15
statute that talks about my choices.
I mean, I think the place I would look to
16
I think the last place I would look is a
17
provision of the statute that talks about -- what is
18
it -- coverage months for purposes of this subsection,
19
which, by the way, isn't even the right subsection, but
20
whatever.
21
is in where it talks about what a coverage month is?
22
That -- that's where I would look, is in --
MR. CARVIN:
But -- but, Your Honor, I've
23
already described the difficulties of putting it -- part
24
of it in 1321, right?
25
this bizarre tax credit provision which is only half
Because then you would create
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true, and you wouldn't tell taxpayers and insurance
companies.
So I believe that's the complete answer.
But the other practical point I'd like to
make is they had three years to implement this.
one thought the States were going to have to make a
decision overnight.
State would have been fully informed of the consequences
because presumably they've read 36B, and then they would
make an intelligent decision well in advance of the
10
And no
If the IRS had done its job, every
two -- 2013 deadline.
11
So there's a bizarre notion that States were
12
somehow unable to read a statute or to -- or to read a
13
regulation is simply --
14
JUSTICE BREYER:
I really want -- I really
15
want to hear what you're going to say in your 5 to
16
10 minutes.
17
be interested in your responses to the government's
18
brief, that if you read the words "established by the
19
State" without reference to the technical definition as
20
you wish, this isn't just about the taxes; it means
21
employers in Virginia don't have to make policy, don't
22
have to -- don't have to give policies, but if they have
23
one Maryland worker they do; it means that they never
24
can tighten up their Medicaid regulations, never, in 34
25
States -- but, of course, in the others they can; it
And if you want, only if you want, I would
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means that there's no qualified person ever to buy
anything on a -- an Exchange established by the
Secretary for the State, and they have two or three
other anomalies that have nothing to do with taxes, all
of which supports their argument that you have to read
this phrase technically according to the definition.
Now, that's their basic point.
to summarize it.
you to have 5 or 10 minutes to answer it.
10
11
Do it as you wish you.
MR. CARVIN:
Thank you.
I've tried
I just want
And -- and -- and
the first point is there are no anomalies.
12
JUSTICE SCALIA:
I'm going to clock that,
13
see if -- see if you get 5 minutes.
14
MR. CARVIN:
There are no -- the first point
15
I'd like to make is there are no anomalies stemming from
16
our interpretation of 36B.
17
that.
18
individuals point about how there would be nobody on HHS
19
Exchanges.
20
up here and tell you that if we prevail in our
21
interpretation of 36B, they would be obliged by the
22
logic of that opinion to empty out HHS Exchanges.
23
all agree that there's no connection between 36B and the
24
qualified individual.
25
The government agrees with
Their biggest anomaly is this qualified
The Solicitor General is not going to stand
So we
That's point one.
Point two is, if you want anomalies, their
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interpretation of the statute requires 34 States today
to lose all Medicaid coverage.
the provisions on 64a through 66a of the government's
brief, there are various requirements that the State, on
pain of losing all of its Medicaid funds, must
coordinate between the State-established Exchange, the
State agency for CHIP, and the State agency for Medicaid
in terms of secure interface and enrollment.
Why is that?
Because of
Now that makes perfect sense if "Exchange
10
established by the State" means what it says, but they
11
think it encompasses HHS Exchanges.
12
cannot ensure coordination between HHS Exchanges and the
13
State agencies, and none of the 34 are doing it today.
14
So under their atextual reading of the statute, 34
15
States will suffer the penalty that this Court found in
16
NFIB as unconstitutionally coercive.
Well, the State
17
As to this Medicaid maintenance anomaly, the
18
government agrees that the purpose of this provision was
19
to freeze Medicaid payments until you had an Exchange
20
with subsidies, which makes sense, right?
21
coordinate the two.
22
And that's exactly what this provision means
23
under our interpretation.
24
with subsidies, the States will be frozen.
25
You want to
Until you have an Exchange
The government says, that thing ended on
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January 1, 2014.
It's nowhere in the statute; plus which it makes no
sense.
an Exchange with subsidies, right?
So there was a 3-year freeze on Medicaid that they were
powerless to get out of.
That's a figment of their imagination.
Before 2014, the States were powerless to have
They couldn't do it.
After 2014, if they don't want to have their
Medicaid frozen, all they have to do is establish an
Exchange.
So it's a less harsh restriction on States,
10
plus which it gives them another incentive in addition
11
to the subsidies to create the State Exchange, which is
12
the purpose enunciated in 1311.
13
I don't know -- oh, as to, yeah, maybe
14
somebody would from another -- if you had an employee
15
that let -- lived in other State, maybe he would be
16
subject to the employer mandate.
17
anomaly?
18
course they wanted to expand it.
19
thought it would really happen because, again, what they
20
thought was going to happen was there wouldn't be
21
neighboring States without it because nobody was going
22
to turn down this extraordinarily generous deal.
23
Why is that an
Congress likes the employer mandate.
Of
They also never
I don't know if my 5 minutes are up, but
24
that -- that's -- that's my response to these anomalies.
25
I think that you --
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JUSTICE KAGAN:
MR. CARVIN:
JUSTICE KAGAN:
As I understand it --
I think if I could -Wow.
You've been talking a
long time.
MR. CARVIN:
JUSTICE KAGAN:
MR. CARVIN:
Yes.
Yes.
Sorry.
You have two more sentences.
Even if there were anomalies in
these other sections, you don't transport them to 36B
which is concededly neither absurd and furthers the
10
purposes of the Act, just like in Utility Air, because
11
the word pollutants didn't work with one section, you
12
don't spread it like a virus throughout the rest of the
13
Act.
You cure it in that provision --
14
15
JUSTICE KAGAN:
sentences --
16
17
Those were two long
MR. CARVIN:
-- if and when there's any
litigation.
18
JUSTICE KAGAN:
19
MR. CARVIN:
20
JUSTICE KAGAN:
I think -- I think --
Oh, it was a long sentence.
Yes.
I -- I think I'm right
21
that Justice Breyer's question about anomalies, which
22
are replete in the Act, under your interpretation, did
23
not talk about what I think is one of the most glaring
24
ones, which is this qualified individualist thing, that
25
you're essentially setting up a system in which these
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Federal Exchanges, that there will be no customers and,
in fact, there will be no products, because Section 1311
says that the Exchange shall make health plans available
to qualified individuals, and then the next section says
that qualified individual means an individual who
resides in the State that established the Exchange.
So under your theory, if Federal Exchanges
don't qualify as Exchanges established by the State,
that means Federal Exchanges have no customers.
10
MR. CARVIN:
Which, of course, is not the
11
reading that the government's giving to it because
12
they're not going to tell you --
13
14
JUSTICE KAGAN:
Well, that's -- that's
because they don't share your theory.
15
MR. CARVIN:
16
JUSTICE KAGAN:
17
MR. CARVIN:
18
JUSTICE KAGAN:
19
MR. CARVIN:
No, no.
Under your theory --
No.
-- that's the result.
Well, no.
Let me be as clear
20
as I can.
21
going to empty out the HHS Exchanges because they
22
understand that there are numerous defenses even if you
23
interpret "established by the State" literally in the
24
qualified individuals provision.
25
If we prevail in this case, they are not
Number one defense that they will use is, it
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says you have to be a qualified individual with respect
to an Exchange.
statutory definition of Exchange is a 1311 Exchange.
they're only talking about State Exchanges, not these
HHS Exchanges, and it is in Section 1312, which
immediately follows 1311, before 1321.
As Justice Breyer pointed out, the
So
Number two, "qualified individual" doesn't
mean that -- that means you're guaranteed access.
doesn't mean if you're not qualified, you're absolutely
10
denied access.
11
provision, which says illegal aliens are neither
12
qualified individuals nor eligible for subsidies.
13
It
We know that from the illegal alien
JUSTICE KAGAN:
Ah, but look at the -- look
14
at the prisoner provision, which says prisoners
15
shouldn't be treated as qualified individuals.
16
your theory, this statute effectively said that
17
prisoners should be able to enroll on Federal Exchanges?
18
That makes no sense.
19
MR. CARVIN:
So under
It makes perfect sense to say
20
the States get a choice.
21
prison in February, they're getting out in April,
22
they've got to buy insurance under the individual
23
mandate.
24
buy insurance, that means they wouldn't be able to buy
25
insurance during the relevant enrollment period.
Think about somebody who's in
So if you said nobody who's incarcerated can
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makes perfect sense to give States the flexibility to
say, as to those incarcerated principles, you can make
them available for Exchanges, but under illegal aliens
we don't want to, which is why we are saying they are
neither qualified nor eligible.
Even if Justice -- even if you don't find
that the most pristine logic to be applied to a statute,
remember, we are interpreting these statutes to avoid an
absurd result.
And it's a basic principle of statutory
10
construction that you will give a plausible, if not the
11
most persuasive, reading to a statute to avoid the
12
result.
13
JUSTICE KAGAN:
But we are interpreting a
14
statute generally to make it make sense as a whole,
15
right?
16
four words.
17
context, the more general context, try to make
18
everything harmonious with everything else.
19
said, even at the very beginning of this argument as we
20
were going back and forth about my hypothetical, that,
21
of course, context matters and context might make all
22
the difference with respect to what those five words
23
mean.
We look at the whole text.
We don't look at
We look at the whole text, the particular
I think you
24
And I think what we're suggesting is that,
25
if you look at the entire text, it's pretty clear that
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you oughtn't to treat those five words in the way you
are.
MR. CARVIN:
I've given you the contextual
points before.
convey to you, Justice Kagan, is Section 1311.
the -- the statute must work harmoniously.
provide a -- subsidies to HHS Exchanges, you have
essentially gutted Section 1311's strong preference for
State Exchanges.
10
I think the key one that I'd like to
You say
If you
What will happen is precisely what did
11
happen under the IRS rule, two-thirds of the States are
12
saying no, we're not going to undertake this thankless
13
task of running these Exchanges with no incentives to do
14
so.
15
statute means is 36B quite clearly saying Exchanges are
16
available only on States.
17
they limited subsidies to that.
18
contrary legislative history at all.
19
So yes, it -- what I have here in terms of what the
I have 1311 explaining why
And there is no
What do they have, an atextual reading of
20
36B, which they can't explain why anybody would have
21
used those words if they wanted to convey Exchanges, a
22
rule that completely undermines the purposes of -- of
23
1311 and no supporting legislative history.
24
all the legal materials that this Court normally used to
25
discern what statute means, we clearly prevail.
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CHIEF JUSTICE ROBERTS:
General Verrilli, you'll have extra ten
Thank you, counsel.
minutes as well.
ORAL ARGUMENT OF GENERAL DONALD B. VERRILLI, JR.
ON BEHALF OF THE RESPONDENTS
6
7
GENERAL VERRILLI:
Justice, and may it please the Court:
8
9
Thank you, Mr. Chief
Standing has been raised, so let me start by
telling you where we stand on
standing and then I'd
10
appreciate the opportunity after that to summarize what
11
I think are the two key points in this case.
12
Now, with respect to standing, the question
13
-- the case or controversy question turns on whether any
14
of the four Petitioners is liable for the tax penalty
15
for 2014.
16
Now, this case was litigated in -- in the
17
district court in 2013 based on projections on the part
18
of each of the four Petitioners that they would earn a
19
certain income in 2014.
20
that.
21
-- of their income were such that they would qualify for
22
the unaffordability exception and they wouldn't have
23
standing.
24
projections were such that they wouldn't qualify for the
25
unaffordability exception and they would have standing.
They filed declarations saying
With respect to 2 of the 4, the projections were
With respect to the other 2, their
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But those were projections in 2013 about their income in
2014.
don't know, but Petitioners know whether any of the 4
have, in fact -- are, in fact, liable for the tax
penalty and that will depend on whether their -- their
actual income in 2014 matched their projections.
2014 has now come and gone, and we know -- we
Now, Mr. Carvin said there was factfinding
about this.
Petitioners -- the Petitioners did file a motion for
I'm afraid that's not correct.
The -- the
10
summary judgment, but the case was decided on the basis
11
of the government's motion to dismiss before discovery
12
and without any factfinding.
13
I'm assuming because Mr. Carvin has not said
14
anything about the absence of a tax penalty, that, at
15
least, 1 of the 4 has and is, in fact, liable for a tax
16
penalty, but that's the key standing question.
17
Now, with respect to the veterans point,
18
Your Honor, if it is the case, as Mr. Carvin tells us,
19
that Mr. Hurst was a veteran for only 10 months, then I
20
think he's correct, he would not qualify for VA health
21
care because you generally have to serve two years.
22
that's where we are on standing.
23
Now, if I could turn to the merits.
24
JUSTICE GINSBURG:
25
So are you saying one
person does have standing?
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GENERAL VERRILLI:
No, no.
It will depend
on whether as a factual matter 1 of the 4 has and is, in
fact, liable for the tax penalty for 2014.
information that is not in the government's possession;
it is in the possession of Petitioners' counsel.
should make one more point, with respect to 2015, there
were no projections, there's nothing in the record about
the possible income of any of the Petitioners for 2015,
so there's really nothing that would establish a case of
10
11
And that's
And I
controversy for 2014.
CHIEF JUSTICE ROBERTS:
Well, you're surely
12
not raising a standing question with us here for the
13
first time at oral argument, are you?
14
GENERAL VERRILLI:
Well, Mr. Chief Justice,
15
as I said, that based on the projections, it is our --
16
it was our understanding that at least 1 of the 4 would
17
be liable for a tax penalty.
18
has been raised and I've tried to identify for the Court
19
what I think is the relevant question, which is whether
20
any one of the 4 has, in fact -- is, in fact, liable for
21
a tax penalty because --
22
23
24
25
The question of standing
CHIEF JUSTICE ROBERTS:
This is -- this is
on a motion to dismiss, right?
GENERAL VERRILLI:
Well, that's correct,
Your Honor, but it does also go to this Court's
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jurisdiction.
is liable for a tax penalty for 2014, there just isn't
the case or controversy.
there's no -- there's no injury.
that's ultimately the relevant question here and -- with
respect to standing.
about veteran status, but I do think that's the relevant
question.
Because if there's no -- if none of the 4
None of them is liable,
And so I do think
I don't think there's a question
JUSTICE ALITO:
Isn't the question before us
10
as to standing whether the district court correctly held
11
in the motion to dismiss context that there was
12
standing?
13
don't we have to -- isn't that what's before us?
That may not be the end of the matter, but
14
GENERAL VERRILLI:
Well, that -- that may be
15
-- yes.
16
think about this as a question of mootness, I guess, in
17
that, you know, based on the projection, there was a
18
case or controversy, but if the projection didn't come
19
to pass and none of the plaintiffs is liable for a tax
20
penalty, then the case or controversy no longer exists.
But then you -- and you might alternatively
21
JUSTICE ALITO:
22
suggesting?
23
here?
24
25
Well, what are you
Should we have a -- should we have a trial
GENERAL VERRILLI:
No, I'm not suggesting
anything of the kinds.
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2
JUSTICE ALITO:
-- on this issue and find
what the facts are?
GENERAL VERRILLI:
Justice Alito, I did not
raise standing affirmatively, the Court raised it.
I'm just doing my best to let the Court know what our
position is on standing.
7
8
JUSTICE GINSBURG:
And
Well, you -- would you
send it back then to -- to the district court?
GENERAL VERRILLI:
Well, I guess no.
10
guess what I've said is that -- that Mr. Carvin hasn't
11
suggested that there's no plaintiff liable for a tax
12
penalty.
13
of the Petitioners --
14
15
Based on that, I'm inferring that at least one
JUSTICE SOTOMAYOR:
--
16
GENERAL VERRILLI:
17
JUSTICE SOTOMAYOR:
18
19
20
21
Would you -- would you
-- has standing.
Why wouldn't we accept a
representation by him?
GENERAL VERRILLI:
There's no reason not to
and I'm not -JUSTICE SOTOMAYOR:
If he -- if he makes a
22
representation that at least 1 of the 4 is -- has -- was
23
liable in 2014 and is liable in 2000 -- or will be
24
liable in 2015 --
25
GENERAL VERRILLI:
So I guess what I'm
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saying --
2
3
JUSTICE SOTOMAYOR:
I mean, we know at least
one of them won't because that's --
GENERAL VERRILLI:
What I'm saying about
that is I'm actually going to step further than that,
Justice Sotomayor, given that there hasn't been -- I'm
willing to accept the absence of a representation as an
indication that there is a case or controversy here,
and -- and so that's why, Mr. Chief Justice, we haven't
10
raised standing and that's what it -- but I do think
11
that the key question is whether one of the four is
12
liable for a tax penalty.
13
a case or controversy in the case.
14
You have to have that to have
If I could now, let me please turn to the
15
merits that summarize what I think are the two key
16
points.
17
text of the Act's applicable provisions and it's really
18
the only way to make sense of Section 36B and the rest
19
of the Act.
20
incoherent statute that doesn't work; and second, our
21
reading is compelled by the Act's structure and design.
22
Their reading forces HHS to establish rump Exchanges
23
that are doomed to fail.
24
statute's express -- status express textual promise of
25
State flexibility.
First, our reading follows directly from the
Textually, their reading produces an
It makes a mockery of the
It precipitates the insurance market
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death spirals that the statutory findings specifically
say the statute was designed to avoid, and of course it
revokes the promise of affordable care for millions of
Americans.
intended.
That cannot be the statute that Congress
JUSTICE SCALIA:
Of course it could be.
mean it may not be the statute they intended.
question is whether it's the statute that they wrote.
mean, you know, there -- there -- there are no
The
10
provisions in the statute that turn out to be ill --
11
ill-considered and ill -- ill-conceived.
12
GENERAL VERRILLI:
So it's not the statute
13
that they wrote, and the reason it's not the statute
14
that they wrote, I think -- I want to actually start, if
15
I could, picking up I think on a variation of the
16
hypothetical that Justice Kagan ask -- asked.
17
Petitioners' brief they throw down the gauntlet with
18
respect to a hypothetical about airports, and that -- a
19
statute requires a State to construct an airport, it
20
says the Federal government shall construct such airport
21
if the State doesn't, and no one would think that the
22
Federal government's airport was an airport constructed
23
by the State.
24
25
In
Well, what I would say to that is that if
those statutory provisions were conjoined with a
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provision that said airplanes may only land at airports
constructed by the State, then you would conclude
immediately that what -- that -- that that Federally
constructed airport qualifies as an airport constructed
by the State, and the -- because otherwise the statute
would make no sense.
here.
8
9
And the same exact thing is true
JUSTICE SCALIA:
There are no statutes that
make no sense.
10
GENERAL VERRILLI:
11
JUSTICE SCALIA:
This one makes sense.
If that is the case, every
12
statute must make sense and we will -- we will twist the
13
words as necessary to make it make -- that can't be the
14
rule.
15
16
GENERAL VERRILLI:
That isn't the rule.
But
the rule --
17
JUSTICE SCALIA:
18
GENERAL VERRILLI:
Of course not.
-- is that you read --
19
that you don't read statutory provisions in isolation;
20
you read them in context.
21
them in order to ensure that the statute operates as a
22
harmonious whole.
23
render the statutory provisions ineffective.
24
them to promote --
25
The rule is that you read
You read them so that you don't
JUSTICE SCALIA:
You read
Where is that possible.
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GENERAL VERRILLI:
JUSTICE SCALIA:
-- you read --
I mean, you acknowledge
that all of what you're saying only applies where there
are alternative readings that are reasonable.
the one that will do all the things that you say.
6
7
GENERAL VERRILLI:
And there is -- there
is --
8
9
You pick
JUSTICE SCALIA:
But, but -- if -- if it can
only reasonably mean one thing, it will continue to mean
10
that one thing even if it has untoward consequences for
11
the rest of the statute.
12
No?
GENERAL VERRILLI:
With respect to this
13
statute, first, let me -- I want to make two points.
14
First --
15
JUSTICE SCALIA:
Answer me in principle.
16
mean, is it not the case that if the only reasonable
17
interpretation of a particular provision produces
18
disastrous consequences in the rest of the statute, it
19
nonetheless means what it says.
20
GENERAL VERRILLI:
Is that true or not?
I think there are --
21
there are a couple of limitations on that principle.
22
The first is if what you have is a situation in which
23
the -- that creates conflict within a statutory scheme,
24
then the Court's got to do its best to try to harmonize
25
and reconcile the provisions.
And secondly --
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JUSTICE SCALIA:
Well, I disagree with that.
You have a single case in which we have said the
provision is not ambiguous, it means this thing, but,
Lord, that would make a terrible statute, so we will
interpret it to mean something else.
case where we've ever said that?
GENERAL VERRILLI:
Do you have one
I think -- I think Brown
& Williamson is a good example of that.
Williamson, the Court said, look, the definition of drug
In Brown &
10
and drug delivery device would actually seem
11
unambiguously to cover tobacco, but when you read that
12
provision in context, and considering the full scope of
13
the regulatory regime, it can't possibly mean that.
14
But let me -- let me actually work through
15
the text here, because I do think I can show you that
16
there's a quite reasonable reading of this statutory
17
text that allows you to affirm and requires you to
18
affirm the government's position.
19
JUSTICE ALITO:
But, General Verrilli,
20
before we get too immersed in a number of provisions of
21
this, could you respond to a question that was asked
22
during Mr. Carvin's argument.
23
interpretation of this Act, is it unconstitutionally
24
coercive?
25
GENERAL VERRILLI:
If we adopt Petitioners'
So the -- here's what I
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would say about that, Justice Alito.
would be -- certainly be a novel constitutional
question, and I think that I'm not prepared to say to
the Court today that it is unconstitutional.
be my duty to defend the statute and on the authority of
New York v.
I don't think there's any doubt that it's a novel
question, and if the Court believes it's a serious
question --
10
11
I think that it
It would
United States, I think we would do so.
JUSTICE KENNEDY:
Is it a -- I was going to
say does novel mean difficult?
12
(Laughter.)
13
JUSTICE KENNEDY:
Because it -- it -- it
14
does seem to me that if Petitioners' argument is
15
correct, this is just not a rational choice for the
16
States to make and that they're being coerced.
17
GENERAL VERRILLI:
18
JUSTICE KENNEDY:
19
20
But
So what I -And that you then have to
invoke the standard of constitutional avoidance.
GENERAL VERRILLI:
Well, what I was going to
21
say, Justice Kennedy, is to the extent the Court
22
believes that this is a serious constitutional question
23
and this does rise to the level of something approaching
24
coercion, then I do think the doctrine of constitutional
25
avoidance becomes another very powerful reason to read
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the statutory text our way.
do think with respect to the point that Your Honor's
making, remember, it's not just -- it's not just a
situation in which there is onerous conditions, onerous
consequences for State residents.
problem of notice here, that, you know, if you read
Petitioners' -- if you take Petitioners' reading of the
statute, then the idea that States were given added --
you can't possibly justify this as adequate notice to
10
Because I do think -- and I
It's also a profound
the States.
11
JUSTICE ALITO:
Well, Mr. -- General
12
Verrilli, let me ask you this about notice.
13
and lots of amicus briefs from States.
14
amicus briefs from States here; 34 states I think is --
15
that's the number of States that declined to or failed
16
to establish a State Exchange?
17
GENERAL VERRILLI:
18
JUSTICE ALITO:
We get lots
And we got two
Correct.
Now, if they were all caught
19
off guard and they were upset about this, you would
20
expect them to file an amicus brief telling us that.
21
But actually, of the 34, only 6 of them signed the brief
22
that was submitted by a number of States making that
23
argument.
24
brief; 17 of them are States that established State
25
exchanges.
23 States, 23 jurisdictions submitted that
Only 6 of the States that didn't establish
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State exchanges signed that brief, how do you account
for that?
GENERAL VERRILLI:
So, I -- I guess I'd make
two points about that, Justice Alito.
22 States there, States in both camps, all of whom told
you that they didn't understand the statute that way.
First, you've got
Now, with respect to the other 8 States that
filed the amicus brief on the other side, I actually
think there's quite an important point that goes to
10
their understanding of what this Act did.
11
this is an IRS rule that we're talking about here, and
12
the IRS put out a notice of proposed rulemaking saying
13
this is what we intend to do, and several of these
14
States -- Oklahoma, Indiana, Nebraska -- they filed
15
rulemaking comments in that -- in that proceeding.
16
if you look at those rulemaking comments you will see
17
that they address a number of issues, and they say
18
nothing, nothing about the -- the issue that's before
19
the Court now.
20
Remember,
And
So if they really understood the statute as
21
denying subsidies in States that did not set up their
22
own exchanges, that would have front and center in their
23
rulemaking comments, but they said nothing about it and
24
I think that tells you a good deal about where --
25
what -- what everybody understood that this statute
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was --
JUSTICE ALITO:
Well, there's another point
on notice on this Pennhurst argument that seems curious
to me.
signed up for a Federal program and then they say, oh,
my gosh, we didn't realize what we had gotten ourselves
into.
establish an exchange if we were to adopt Petitioners'
interpretation of the statute.
10
Usually when this argument comes up, a State has
But here, it's not too late for a State to
So going forward, there
would be no harm.
11
GENERAL VERRILLI:
Well, let -- let me
12
address that directly, and then I'd like to make a
13
broader point about statutory context in response.
14
directly, of course, I don't -- I don't think it's
15
possible to say there would be no harm.
16
will be cut off immediately and you will have very
17
significant, very adverse effects immediately for
18
millions of people in many States in their insurance
19
markets --
20
21
JUSTICE ALITO:
going forward.
GENERAL VERRILLI:
23
JUSTICE ALITO:
25
The tax credits
Well, I said -- I've said
22
24
Now
And then --
After -- after the current
tax year.
GENERAL VERRILLI:
And then going --
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JUSTICE ALITO:
Would it not be possible if
we were to adopt Petitioners' interpretation of the
statute to stay the mandate until the end of this tax
year as we have done in other cases where we have
adopted an interpretation of the constitutional -- or a
statute that would have very disruptive consequences
such as the Northern Pipeline case.
8
9
GENERAL VERRILLI:
Sure.
Northern Pipeline
is an example of doing that, and it will be up to the
10
Court to decide whether it has the authority to do that.
11
I will say, this does seem different than Northern
12
Pipeline to me, because this is about money going out of
13
the Federal treasury, which is a different scenario.
14
But if the Court -- obviously, if that's where the Court
15
is going and that's what the Court thinks the proper
16
disposition is, that would reduce the disruption.
17
But what I think is another important point
18
to make here just as a practical matter, the idea that a
19
number of States, all of these States or a significant
20
number are going to be able to in the 6 months between
21
when a decision in the this case would come out and when
22
the new -- the new year for insurance purposes will
23
begin we'll be able to set up Exchanges, get them up, up
24
and running and get all the approvals done I think is
25
completely unrealistic.
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JUSTICE GINSBURG:
How long has it taken --
GENERAL VERRILLI:
Well, for -- just to give
you an example of the current time line, Justice
Ginsburg, the -- in order to be -- in order to have an
exchange approved and insurance policies on the exchange
ready for the 2016 year, those approvals have to occur
by May of 2015.
the -- of the time line that HHS is operating under.
Okay.
So that gives you a sense of
JUSTICE SCALIA:
What about -- what about
10
Congress?
11
sit there while -- while all of these disastrous
12
consequences ensue.
13
You really think Congress is just going to
I mean, how often have we come out with a
14
decision such as the -- you know, the bankruptcy court
15
decision?
16
that takes care of the problem.
17
time.
18
19
Congress adjusts, enacts a statute that -It happens all the
Why is that not going to happen here?
GENERAL VERRILLI:
Well, this Congress, Your
Honor, I -- I --
20
(Laughter.)
21
GENERAL VERRILLI:
You know, I mean, of
22
course, theoretically -- of course, theoretically they
23
could.
24
25
JUSTICE SCALIA:
I -- I don't care what
Congress you're talking about.
If the consequences are
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as disastrous as you say, so many million people
without -- without insurance and whatnot, yes, I think
this Congress would act.
GENERAL VERRILLI:
And -- but the relevant
question -- and then I'm going to try to get back to
the point I was trying to make in response to Justice
Alito's question.
8
9
The relevant question here is:
What did the
Congress that enacted this statute in 2010 do?
Did they
10
really set up a system in which the States are subject
11
to the kind of onerous situation that the Petitioner
12
claims?
13
indications -- objective, textual indications that that
14
cannot possibly have been the statutory scheme that
15
Congress tried to set up.
And I think there are three textual
16
First is the existence of the Federal
17
Exchanges.
18
Congress to have provided for Federal Exchanges if,
19
as -- as Mr. Carvin suggests, the statutory design was
20
supposed to result in every State establishing its
21
Exchange.
It would make no sense, no sense for
22
Second --
23
JUSTICE KENNEDY:
Well, wouldn't it have
24
been -- again, talking about Federalism -- a mechanism
25
for States to show that they had concerns about the
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wisdom and the workability of the Act in the form that
it was passed?
GENERAL VERRILLI:
So, Justice Kennedy, I
think the Federalism values are promoted by our
interpretation, because if -- if that is, indeed, what a
State thought, if a State really would have preferred
that -- not to have the State government participate in
the implementation of this Act, for reasons that Your
Honor identified, the structure of the Act that Congress
10
put in place and that we're advocating for today fully
11
vindicates that concern.
12
participate without having any adverse consequences
13
visited upon the citizens of the State.
14
They can decide not to
And that's why our reading is the
15
pro-Federalism reading.
16
to me that is the anti-Federalism reading, and that's a
17
powerful reason to reject it.
18
It's their reading that seems
And if I could go to the second statutory
19
point, which is related to what we're talking about,
20
Justice Kennedy, which is Section 1321, says that this
21
statute is designed to afford State flexibility.
22
flexibility.
23
"flexibility" to use it in the manner that Petitioners
24
say the statute uses it, because it's the polar opposite
25
of flexibility.
State
It would be an Orwellian sense of the word
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And the third point, seems to me, is the
notice point, that if, indeed, the plan was, as Mr.
Carvin said, that every State was going to establish an
Exchange for itself and that that would cure all of the
massive statutory anomalies and textual anomalies and
absurdities and impossibilities that his reading
provides for, if that was really the plan, then the
consequence for the States would be in neon lights in
this statute.
10
11
You would want to make absolutely sure
that every State got the message.
But instead what you have is a subclause in
12
Section 36B, which is a provision that addresses the
13
eligibility of individual taxpayers for taxing purposes.
14
JUSTICE SCALIA:
This is not the most
15
elegantly drafted statute.
16
through on expedited procedures and didn't have the kind
17
of consideration by a conference committee, for example,
18
that -- that statutes usually do.
19
It was -- it was pushed
What -- what would be so surprising if --
20
if, among its other imperfections, there is the
21
imperfection that what the States have to do is not --
22
is not obvious enough?
23
inconceivable.
24
25
It doesn't strike me as
GENERAL VERRILLI:
So, Justice Scalia, I --
I'm going to answer that question by talking about the
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legislative process, because I think it is quite
relevant and I think it ought to be quite relevant even
to you with respect to the question you just asked.
The language here in 36B was not the product
of some last-minute deal, it wasn't the product of
scrambling at the end.
the statutory structure with the language of 36B about
tax credits, the language that's in 1311, the language
that's in 1321 was the product of the Senate Finance
10
Committee markup, which went on for weeks and weeks.
11
The language that emerged here,
It was a public -- it was a public hearing.
12
It -- frankly, it was covered by C-SPAN.
13
watch it on the C-SPAN archives if you want to; and you
14
will see coming out of that that the -- that the
15
understanding, the clear understanding was with this
16
statutory setup would result in subsidies being
17
available in every State.
18
JUSTICE SCALIA:
You can go
There were senators, were
19
there not, who were opposed to having the Federal
20
government run the whole thing, because they thought
21
that would lead to a single-payer system, which -- which
22
some people wanted.
23
provision is it prevents -- it prevents the -- the
24
Federalization of -- of the entire thing.
25
GENERAL VERRILLI:
And the explanation for this
No.
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2
JUSTICE SCALIA:
That's -- that's certainly
a plausible explanation --
GENERAL VERRILLI:
JUSTICE SCALIA:
No.
-- as to why the provision
is there.
GENERAL VERRILLI:
Mr. Carvin has floated
that as an explanation and he -- and he suggests that it
was Senator Ben Nelson who required it.
absolutely no contemporaneous evidence, none whatsoever,
We -- there is
10
that anybody thought that way, that the -- the solution
11
to the problem that Your Honor's identified is what
12
Congress did by having States have the option to set up
13
their own Exchanges with State-by-State Federal
14
fallbacks rather than a national system.
15
Senator Nelson has made clear, he has stated
16
that he had no intention of the kind.
17
contemporaneous evidence at all that anyone did.
18
do -- and what Mr. Carvin has suggested is that this was
19
the product of some deal to try to get votes so the Act
20
could get passed.
21
There's no
And I
What I would suggest to Your Honor is that
22
there is objective proof that that is not true.
23
the provisions in the Act that were negotiated at the
24
end to secure the necessary votes are in Title X of the
25
Act.
The --
And if you look in the -- in the Act, Pages 833 to
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924 -- that's Title X -- you can see all of the
amendments.
the statutory language before the Court now.
Not a single one has anything to do with
JUSTICE ALITO:
Well, the puzzle that's
created by -- by your interpretation is this:
Congress did not want the phrase "established by the
State" to mean what that would normally be taken to
mean, why did they use that language?
use other formulations that appear elsewhere in the Act?
If
Why didn't they
10
Why didn't they say, "established under the Act"?
11
didn't they say, "established within the State"?
12
didn't they include a provision saying that an Exchange
13
established by HHS is a State Exchange when they have a
14
provision in there that does exactly that for the
15
District of Columbia and for the territories?
16
that they are deemed to be States for purposes of this
17
Act.
18
GENERAL VERRILLI:
19
JUSTICE ALITO:
20
GENERAL VERRILLI:
Why
Why
It says
So --
So why would they do that?
So, of course, the
21
provision says -- doesn't say "established by the State"
22
with a period after State.
It says "established by the
23
State under Section 1311."
And our position textually
24
is -- and we think this is clearly the better reading of
25
the text -- that by cross-referencing Section 1311,
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effectively what Congress is doing is saying that
Exchanges established through whatever mechanism,
Exchanges set up by the States themselves, Exchanges set
up by --
JUSTICE KENNEDY:
So you're saying that
by -- by cross-reference to 1311, they really mean 1311
and 1321?
8
9
10
11
12
GENERAL VERRILLI:
that's true.
JUSTICE KENNEDY:
All right.
That -- that
seems to me to go in the wrong direction -GENERAL VERRILLI:
14
JUSTICE KENNEDY:
15
GENERAL VERRILLI:
16
JUSTICE KENNEDY:
18
Well, let me -- and
I do think that, and let me walk through why I think
13
17
Yes.
No, I think --- for your case -I think --- not the
right direction.
GENERAL VERRILLI:
No, I think it goes in
19
the right direction, if you'll just ride with me for a
20
little bit, Justice Kennedy, on this.
21
JUSTICE ALITO:
Well, before you -- before
22
you get on to that, that -- your answer doesn't explain
23
why -- why "by the State" is in there.
24
they say "established under 1311"?
25
GENERAL VERRILLI:
Then why didn't
Well, so the second point
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is that wherever this provision appears in the Act,
"established by the State under Section 1311," it's
doing work; and the work it's doing is saying, what
we're talking about is the specific Exchange established
in the specific State as opposed to general rules for
Exchanges.
Maintenance-of-Effort provision that -- it works the
same way.
If you look at the Medicaid
JUSTICE ALITO:
10
"in the State"?
11
the State."
12
Well, why didn't they say
That's the phrase you just used, "in
Why didn't they say "in the State"?
GENERAL VERRILLI:
Because -- I suppose they
13
could have, but it worked perfectly well this way.
14
you look at the qualified individual provision, it's
15
clearly how they're using it with respect to the
16
qualified individual provision.
17
that provision, it says a qualified individual is a
18
person who is located -- who resides in the State that
19
established the Exchange.
20
about is a geographical reference to the particular
21
State.
22
every time the -- the statute uses that phrase.
23
doing that work, and that's why it's in there.
24
25
If
And with respect to
Clearly, what they're talking
That's what's going on there and what's going on
So it's
But now if I could go back to your point,
Justice Kennedy, it says, "established by the State
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under Section 1311."
State shall establish an American Health Benefits
Exchange for the State."
an urging that States do it.
establish."
Section 1311(b)(1) says, "Each
It's not, as Mr. Carvin said,
It says, "Each State shall
Now, we know that when Congress used that
language, "each State shall establish," it must have
meant something more inclusive than each State
government shall itself set up the Exchange.
10
We know that because Congress is legislating
11
against the backdrop of the Tenth Amendment, and so it
12
couldn't impose that requirement.
13
because of Section 1321, because Section 1321 provides
14
the means by which the 1311(b)(1) requirement is
15
satisfied.
16
meet the Federal requirements for Exchanges, or it can
17
be satisfied in the event that a State doesn't or tries,
18
but comes up short by HHS stepping in and establishing
19
the Exchange.
20
And we know that
It will be satisfied by a State electing to
JUSTICE ALITO:
So when the statute says,
21
"each State shall establish," it really means the
22
Federal government shall establish if a State doesn't
23
establish.
24
GENERAL VERRILLI:
25
JUSTICE ALITO:
I think the right way --
And if that were the correct
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interpretation, you wouldn't 1321 at all.
GENERAL VERRILLI:
So -- no.
I think the
right way to think about this, Justice Alito, is that
what's going on here is that -- the right place to
focus, let me put it that way.
here is not on the who, but on the what; on the thing
that gets set up and whether it qualifies as an Exchange
established by the State, and these Exchanges do
qualify.
The right place to focus
10
And the reason they qualify is because they
11
fulfill the requirement in Section 1311(b)(1) that each
12
State shall establish an Exchange.
13
that because it says to the HHS that when a -- when a
14
State hasn't elected to meet the Federal requirements,
15
HHS steps in, and what the HHS does is set up the
16
required Exchange.
17
referring to the -- immediately prior to the required
18
Exchange where the only Exchange required in the Act is
19
an Exchange under Section 1311(b)(1).
20
And 1321 tells you
It says such Exchange, which is
So it has to be that that's -- that what HHS
21
is doing under the plain text of the statute is
22
fulfilling the requirement of the Section 1311(b)(1)
23
that each State establish an Exchange, and for that
24
reason we say it qualifies as an Exchange established by
25
the State.
That's reinforced, as Justice Breyer
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suggested earlier, by the definition which says that an
Exchange is an Exchange established under Section 1311.
1311, again, has 1311(b)(1) which says each State shall
establish an Exchange.
And it has to be that way because
Petitioners have conceded, and it's at page 22 of their
brief, that an Exchange that HHS sets up is supposed to
be the same Exchange that Petitioners say function just
like an Exchange that the State sets up for itself.
10
JUSTICE SCALIA:
Well, you're -- you're
11
putting a lot of weight on the -- on the -- one word,
12
such, such Exchange.
13
unrealistic interpretation of "such" to mean the Federal
14
government shall establish a State Exchange.
15
Such -- it seems to me the most
Rather, it seems to me "such" means an
16
Exchange for the State rather than an Exchange of the
17
State.
18
establish a State Exchange.
19
know, "such" must mean something different.
20
How can the government -- Federal government
That is gobbledygook.
GENERAL VERRILLI:
You
It isn't gobbledygook,
21
Justice Scalia.
22
something that Justice Alito asked earlier.
23
that -- if the language of 36B were exactly the same as
24
it is now, and the statute said in 1321 that an Exchange
25
set up -- set up by HHS shall qualify as an Exchange
And I think about it and I go back to
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established by the State for purposes of Section 1311,
you wouldn't change the language of 36B one iota, and
that wouldn't be any doubt in anyone's mind that
the -- that subsidies were available on Federal
Exchanges.
reading 1311 and 1321 together, that is what the statute
does.
8
9
And what we're saying is that effectively
And that is certainly -- that is a
reasonable reading of the statute.
It is really the
10
only reading of the statute that allows you to be
11
faithful to the text of 1311(b)(1), the word "shall,"
12
and to the Tenth Amendment.
In order for their --
13
JUSTICE SCALIA:
The word "such" means
14
not -- not just the Exchange that the State was supposed
15
to set up, but it means the State Exchange.
16
GENERAL VERRILLI:
It means an Exchange that
17
qualifies as satisfy -- as an exchange established by
18
the State because it satisfies the requirement of
19
1311(b)(1).
20
JUSTICE SCALIA:
No.
You -- you have to say
21
it means the State Exchange.
22
hinges on the fact that a Federal Exchange is a State
23
Exchange for purposes --
24
25
GENERAL VERRILLI:
You have to -- your case
It hinges on -- it hinges
on it qualifying as the State Exchange or being
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equivalent to the State Exchange for the purpose of the
operation of the statute.
of the particular textual provisions, and once you've
concluded that it's a reasonable reading of the
particular textual provisions, then you have to read it
the way that we say it needs -- it is to be read because
it is the only way to make sense of the statute as a
whole.
the Act's qualified individual and qualified health plan
That is a reasonable reading
It is the only way to bring it into harmony with
10
provisions which do lead to what they admit is an
11
absurdity under their reading under the law.
12
JUSTICE ALITO:
Would you agree that
13
there -- that there are provisions of the Act where the
14
exact same phrase, "established by the State," has to be
15
read to mean established by the State and not by HHS?
16
GENERAL VERRILLI:
17
JUSTICE ALITO:
18
I don't --
There are some provisions
like that.
19
GENERAL VERRILLI:
They've pointed out some,
20
but I think they're wrong about each one, and I don't
21
know what Your Honor has in mind.
22
JUSTICE ALITO:
All right.
Well, let's take
23
one -- let's take one.
24
to it.
25
that each State shall establish procedures to ensure
I'd be interested in your answer
42 U.S.C. Section 1396w-3(h)(1)(D) which says
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that an Exchange established by the State utilizes a
secure electronic interface.
is read to -- if "Exchange established by the State"
there is read to mean an HHS Exchange, that means that
the State in which that Exchange is established is
responsible for making sure that the Federal Exchange
has a secure electronic interface.
8
9
And they say that if that
GENERAL VERRILLI:
about that.
Yes.
They're just wrong
It's just completely wrong.
The statute
10
says that the State shall -- first of all, the statutory
11
obligation is addressed to the State Medicaid and CHIP
12
agencies.
13
procedures to ensure the coordination.
14
regulations setting forth what that statutory provision
15
requires of States in those circumstance.
16
where there is a federally facilitated Exchange has met
17
the requirements and fulfilled them, and it worked
18
perfectly fine.
What it says is they shall establish
HHS has issued
Every State
There's no anomaly there at all.
19
JUSTICE ALITO:
20
JUSTICE SCALIA:
And the State -It met -- it met the
21
requirements of the regulations you say, but do the
22
regulations track the statute?
23
GENERAL VERRILLI:
24
JUSTICE SCALIA:
25
Yes, they do.
Do -- do they give the
State authority to -- to say whether or not these --
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these conditions have been met?
GENERAL VERRILLI:
They -- the requirements
are imposed on the State Medicaid and CHIP end of the
relationship.
regulation to implement that statutory requirement, and
it's satisfied in every State.
That's what the statute does, and the
And, of course, as Your Honor reading it to
me said, it does say -- and I think that proves our
point.
The statute says each State shall.
It doesn't
10
say States that have set up Exchanges for themselves
11
shall.
12
there is going to be something that qualifies as an
13
Exchange established by the State in every State.
14
there's no anomaly there, and if Your Honor wants to ask
15
me about any of the other ones, you can, but I -- there
16
are no anomalies frankly.
It says each State shall.
17
JUSTICE ALITO:
It presupposes that
So
As I understand your answer
18
to be that there are Federal regulations telling the
19
States what they have to do here, and they've all done
20
it.
21
obligation under the regulations to make sure that there
22
is a proper interface with the Federal Exchange.
But the fact remains that the State has some
23
GENERAL VERRILLI:
24
the interface, yes.
25
agencies.
On the State's side of
But that's the CHIP and Medicaid
Those are State government agencies, and it's
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their side of the interface that the statute governs.
And, you know, as I said, I don't think
there are anomalies of our reading, but if they are,
they pale in comparison to the anomalies on the other
side.
about the qualified health plan and the qualified
individual, because the statute is quite clear in
Section 1311 that an Exchange, not an Exchange
established by the State, but an Exchange can only sell
I mean, I really do want to focus on this point
10
a qualified health plan.
11
health plan that is not a qualified health plan.
And
12
that's not an Exchange established by the State.
It is
13
an Exchange.
14
It is forbidden from selling a
Now, the statute also says that to certify a
15
health plan as qualified, the Exchange has to decide
16
that it is in the interest of qualified individuals.
17
Now, qualified individuals are persons who
18
reside in the State that established the Exchange.
19
if you read the statute, the language, the way
20
Mr. Carvin reads it instead of the way we read it, you
21
come to the conclusion and in a State in a federally
22
facilitated Exchange, there are no qualified
23
individuals.
24
qualified health plan as being in the interest of
25
qualified individuals because there aren't any, so there
So
Therefore, the Exchange cannot certify a
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aren't any qualified health plans that can lawfully be
sold on the Exchange.
JUSTICE ALITO:
What is the provision that
says that only a -- only a qualified individual can
be -- can enroll in a plan under an Exchange?
GENERAL VERRILLI:
So let -- the -- the -- I
will address that, but I just want to make clear the
provision I'm talking about with respect to the -- the
prohibition on selling a qualified health plan to
10
anybody on -- on anything other than a qualified health
11
plan on an Exchange is 1311(d)(2)(B), which is at page
12
8a of the appendix to our brief.
13
unambiguous.
14
by the State, an Exchange may not make available any
15
health plan that is not a qualified health plan.
16
It's absolutely
An Exchange, not an Exchange established
JUSTICE ALITO:
So --
Qualified health plan.
But
17
what's the provision you were referring to when you said
18
that an Exchange may enroll only a qualified individual?
19
GENERAL VERRILLI:
Well, I -- what they --
20
what the statute says throughout is that -- that
21
qualified individuals are eligible to purchase on
22
Exchanges, and it's the necessary meaning of that phrase
23
that if you are not a qualified individual, then you are
24
not eligible to purchase health care on an Exchange
25
because otherwise, the word qualified would not have any
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meaning.
is to distinguish between people who are eligible and
people who are ineligible.
wouldn't make any sense because think of the people who
are not qualified individuals.
live in the State, the people in prison, and they're
unlawfully documented.
The whole -- the meaning of the word qualified
8
9
And as a policy matter, it
The people who don't
JUSTICE SOTOMAYOR:
1312.
This is part of Section
A person qualified to purchase on an Exchange
10
must, quote, reside in the State that established the
11
Exchange.
12
GENERAL VERRILLI:
Right.
And there are no
13
such people in 34 States under Mr. Carvin's theory of
14
the statute.
15
run into a textual brick wall.
16
So it just doesn't -- it just -- you just
JUSTICE ALITO:
I understand your argument
17
is that it's a -- it's a logical inference from a number
18
of provisions that only a qualified individual may
19
purchase the policy, but I gather there is no provision
20
that you can point to that says that directly.
21
GENERAL VERRILLI:
It's -- well, that's what
22
qualified means, Justice Alito.
23
know, if you're not qualified, you're unqualified.
24
so, I mean, that's what it means.
25
reading the word "qualified" out of the statute if you
It means that, you
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read it that way.
JUSTICE ALITO:
"Qualified" is used in
the -- in the lay sense of the term, it's not a
technical term here.
GENERAL VERRILLI:
Well, I -- I think --
well, given the way it's defined, it's defined as a
person who resides in the State.
of State.
clear that you weren't going to be allowed to shop for
It excludes people out
It does that because the statute was quite
10
insurance policies across State lines because that would
11
infringe on traditional State prerogatives regulating
12
insurance.
13
doesn't make any sense to say that prisoners should be
14
able to get insurance.
15
because they get out of prison.
16
specific statutory provision that says when you face a
17
changed-life circumstance, such as getting out of
18
prison, you can sign up for insurance at that point.
19
makes the point about unlawfully present persons being
20
both unqualified and not being able to be covered, but
21
that's not -- that's not surplus, that's there for a
22
very important reason, which is that someone can be in
23
lawful status and, therefore, be eligible for health
24
care, but then lose lawful status and at that point,
25
they can no longer be covered.
And it -- and with respect to prisoners, it
Mr. Carvin says, yes, it does
Well, there's a
So, just none of that
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works for them.
None of that works for them.
And -- but to -- really, to get to the
fundamental point here that both at the level of text,
you have clear irresolvable conflicts so that the
statute can't work if you read it Mr. Carvin's way.
have, at the level of text --
7
8
JUSTICE KENNEDY:
You
Is -- is that a synonym
for ambiguity?
GENERAL VERRILLI:
I think so, exactly
10
right, Justice Scalia -- I mean, excuse me, Justice
11
Kennedy --
12
precisely because you have to -- you know, this is a
13
statute that's going to operate one way or the other.
14
And the question is how it's going to operate.
15
you read it their way, you --
16
that -- that you have ambiguity there
JUSTICE KENNEDY:
And when
Well, if it's -- if it's
17
ambiguous, then we think about Chevron.
18
me a drastic step for us to say that the Department of
19
Internal Revenue and its director can make this call one
20
way or the other when there are, what, billions of
21
dollars of subsidies involved here?
22
millions?
23
GENERAL VERRILLI:
But it seems to
Hundreds of
Yes, there are billions
24
of dollars of subsidies involved here.
25
about that --
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JUSTICE KENNEDY:
And it -- it seems to me
our cases say that if the Internal Revenue Service is
going to allow deductions using these, that it has to be
very, very clear.
GENERAL VERRILLI:
JUSTICE KENNEDY:
So -And it -- it seems to me a
little odd that the director of Internal Revenue
didn't -- didn't identify this problem if it's ambiguous
and advise Congress it was.
10
GENERAL VERRILLI:
So a few points about
11
that with respect to Chevron deference.
12
think Chevron deference clearly supports the government
13
here and I'll explain why.
14
you can resolve and should resolve this statute and the
15
statute's meaning in our favor even without resort to
16
Chevron deference.
17
statute as a whole to make it work harmoniously directs
18
you to do.
19
Federalism that we've been describing here direct you to
20
do.
21
the statute, it's what the doctrine of constitutional
22
avoidance directs you to do.
23
First, we do
But before you get to that,
That's what the canon of reading a
It's what the very important principles of
If you think there's a constitutional problem with
Now, with respect to Chevron, Section 36B(g)
24
of the statute expressly delegates to the IRS the
25
specific authority to make any decisions necessary to
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implement Section 36B.
Congress said the IRS should do this.
question, but as the Court said in City of Arlington two
terms ago, Chevron applies to big questions as well as
small.
clarity in -- in a tax deduction and IRS in the
statutory reading of tax deductions, there is a learned
treatise that describes that as a false notion.
is certainly not consistent with this Court's unanimous
So you don't have any ambiguity.
It is a big
Your Honor raised this point about the need for
And it
10
decision in Mayo two terms ago that Chevron applies to
11
the tax code like anything else.
12
And so --
CHIEF JUSTICE ROBERTS:
If you're right --
13
if you're right about Chevron, that would indicate that
14
a subsequent administration could change that
15
interpretation?
16
GENERAL VERRILLI:
I think a subsequent
17
administration would need a very strong case under step
18
two of the Chevron analysis that that was a reasonable
19
judgment in view of the disruptive consequences.
20
I said, I think you can resolve and should resolve this
21
case because the statute really has to be read when
22
taken as a whole to adopt the government's position.
23
But I do take --
24
JUSTICE SOTOMAYOR:
25
JUSTICE ALITO:
So as
General --
If there are any -- if there
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are any tax attorneys in the -- in the courtroom today,
I think probably they wrote down what you just said.
When we get future tax cases, the United States is going
to argue that we should not read them to -- you know,
there should be no presumption that a tax credit is
provided by that statute.
GENERAL VERRILLI:
You should -- you should
read it according to its terms.
provision according to its terms and you read it in
And when you read this
10
context and you read it against the background
11
principles of Federalism, you have to affirm the
12
government's interpretation.
13
14
Thank you.
CHIEF JUSTICE ROBERTS:
Thank you, General.
Four minutes, Mr. Carvin.
15
REBUTTAL ARGUMENT OF MICHAEL A. CARVIN
16
ON BEHALF OF THE PETITIONERS
17
MR. CARVIN:
18
Very quickly on standing.
Thank you, Mr. Chief Justice.
Mr. Hurst would
19
be subject to a penalty absent relief by this Court for
20
2014.
21
course, would face the same principle for 2015.
22
government is suggesting that their case has become moot
23
because of changed circumstances, under Cardinal
24
Chemical 508 U.S. 83, it's their burden to raise it, not
25
ours to supplement the record.
As I've discussed, both he and Mrs. Leevy, of
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In terms of the anomaly, in terms of all the
States losing -- 34 States losing their Medicaid funds,
the Solicitor General greatly distorted the statute.
It's printed at 64A of their exhibit.
shall establish procedures," so the notion that HHS
established them is obviously contrary to that.
says, "the State will identify people to enroll on their
Exchanges."
Exchanges if there are no such Exchanges in the State.
10
It says, "a State
It
Well, they can't enroll anybody on their
Therefore, by the plain language, if you
11
adopt the notion that "Exchange established by the
12
State" means established by HHS, all of them need to
13
lose their Medicaid funding.
14
JUSTICE SOTOMAYOR:
Could I follow up on
15
something the General ended with, which -- and Justice
16
Kennedy referred to, which is the need to read subsidies
17
limited.
18
need to ensure that exemptions from tax liability are
19
read in a limited way.
20
giving more exemptions to employers not to provide
21
insurance, more exemptions to States and others or to
22
individuals, how -- how does that work?
23
got two competing --
24
25
But so is -- in a limited way.
MR. CARVIN:
But so is the
And under your reading, we're
No, no.
I mean, you've
You do get more
exemptions for employers under our reading, but -- and
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the same principle applies.
undisputed that that one is unambiguous.
Is it unambiguous?
JUSTICE SOTOMAYOR:
MR. CARVIN:
It's
Well --
The dispute here is whether or
not if they win under ambiguity, and they don't because
the canon requires unambiguous statutes not to afford
the tax credit.
think that's very helpful in terms of Justice Kennedy's
concern about Federalism.
In terms of the employer mandate, I
Under their view of the
10
statute, the Federal government gets to unilaterally
11
impose on States -- there's an amicus from Indiana
12
describing this -- a requirement that States insure
13
their own individuals.
14
to States.
15
are absolutely helpless to stop this Federal
16
intervention into their most basic personnel practices.
17
Whereas under our theory, they are able to say, no.
18
actually, the more intrusive view of the statute is
19
theirs.
20
It implies the employer mandate
So their -- under their theory, the States
So
In terms of the funding condition, head on,
21
Your Honor, I think my short answer is as follows:
22
There's no way to view this statute as more coercive or
23
harmful than the Medicaid -- version of Medicaid that
24
was approved by this Court in NFIB and, indeed, the NFIB
25
dissenting opinion pointed to this provision as
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something that was an acceptable noncoercive
alternative.
constitutional doubt under a novel constitutional
question, as Justice Scalia pointed out, there's no
alternative reading of the statute that -- that avoids
that, because either way, you're intruding on State
sovereignty.
8
9
But in all events, even if there's a
In terms of the anomaly, in terms of
qualified individuals, as predicted, Solicitor General
10
did not come up here and tell you, yes, if we prevail
11
here under this theory, they're going to have to empty
12
out the HHS Exchanges.
13
argument that with respect to an Exchange under the
14
definitional section only applies to State Exchanges.
15
So I think we can view this as -- as a complete
16
tendentious litigation position and not a serious
17
statutory interpretation.
18
Nor did he even respond to my
In terms of the qualified health plan that
19
he discussed with you, Justice Alito, the complete
20
answer to that is that is in 1311.
21
1311 only is talking about State established
22
Exchanges.
23
therefore, it can't possibly create an anomaly with
24
respect to those HHS Exchanges.
25
It has no application to HHS Exchanges,
CHIEF JUSTICE ROBERTS:
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1
2
3
The case is submitted.
(Whereupon, at 11:34 a.m., the case in the
above-entitled was submitted.)
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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A
$1800 5:16
$750 4:3
a.m 1:15 3:2
81:2
able 36:17,24
53:20,23 73:14
73:20 79:17
above-entitled
1:13 81:3
absence 40:14
44:7
absent 21:8
77:19
absolutely 21:5
26:4 36:9 57:9
59:9 71:12
79:15
absurd 34:9
37:9
absurdities 57:6
absurdity 67:11
accept 11:17
43:17 44:7
acceptable 80:1
accepted 16:15
access 36:8,10
accomplishes
26:8
account 51:1
acknowledge
47:2
act 7:10 8:7
12:11 15:15
19:24 22:18
23:21,23 26:12
34:10,13,22
44:19 48:23
51:10 55:3
56:1,8,9 59:19
59:23,25,25
60:9,10,17
62:1 64:18
67:13
Act's 44:17,21
67:9
actual 40:6
added 50:8
addition 33:10
address 51:17
52:12 71:7
addressed 68:11
addresses 57:12
adequate 50:9
adjusts 54:15
administration
76:14,17
admit 67:10
adopt 16:23
48:22 52:8
53:2 76:22
78:11
adopted 53:5
advance 5:15
30:9
adversarial 4:17
adverse 52:17
56:12
advise 75:9
advocating
56:10
affect 22:25
affirm 48:17,18
77:11
affirmatively
43:4
afford 56:21
79:6
affordable 45:3
afraid 40:8
agencies 32:13
68:12 69:25,25
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11:19,21 12:2
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agree 4:10 6:8
12:2 18:11
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agrees 31:16
32:18
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36:13
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airplanes 46:1
airport 45:19,20
45:22,22 46:4
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airports 45:18
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aliens 36:11
37:3
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29:1 42:9,21
43:1,3 48:19
49:1 50:11,18
51:4 52:2,20
52:23 53:1
60:4,19 61:21
62:9 63:20,25
64:3 65:22
67:12,17,22
68:19 69:17
71:3,16 72:16
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76:25 80:19
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alternatively
42:15
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11:3,10,13,19
Amanda's 11:1
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ambiguity 9:7
9:17 13:24
74:8,11 76:1
79:5
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17:13 48:3
74:17 75:8
Amendment
63:11 66:12
amendments
60:2
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Americans 45:4
amicus 25:7
50:13,14,20
51:8 79:11
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24:6 27:25
analysis 76:18
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31:17 32:17
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69:14 78:1
80:8,23
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30:2 31:9
47:15 57:25
61:22 67:23
69:17 79:21
80:20
anti-Federalism
56:16
anybody 25:3
27:17 38:20
59:10 71:10
78:8
anyone's 66:3
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appear 60:9
APPEARAN...
1:16
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appendix 4:1
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applicable 44:17
application
80:22
Alderson Reporting Company
applied 37:7
applies 47:3
76:4,10 79:1
80:14
appreciate 7:15
25:24 39:10
approaching
49:23
approvals 53:24
54:6
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April 6:3 36:21
archives 58:13
argue 77:4
argument 1:14
2:2,5,8 3:3,6
6:16 12:12
13:9 16:15,21
16:23 17:1
18:9 28:20
31:5 37:19
39:4 41:13
48:22 49:14
50:23 52:3,4
72:16 77:15
80:13
arguments
13:13,16
Arlington 76:3
art 26:10
articulated 7:3
aside 27:9
asked 45:16
48:21 58:3
65:22
assuming 40:13
atextual 32:14
38:19
attorneys 77:1
audiences 28:15
authority 49:5
53:10 68:25
75:25
authorizes 7:10
available 7:12
18:5 23:2,3,15
Official - Subject to Final Review
83
26:17 28:18
35:3 37:3
38:16 58:17
66:4 71:14
avoid 15:5 37:8
37:11 45:2
avoidance 49:19
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avoids 80:5
awfully 27:13
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bankruptcy
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41:15 42:17
43:12
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37:9 79:16
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behalf 1:17,20
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believe 4:17
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Ben 59:8
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22:8 63:2
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biggest 31:17
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billions 16:8
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50:13,14
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broader 52:13
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Brown 48:7,8
build 19:5
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71:24 73:24
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5:19,22,25 6:5
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8:21 9:3,5,12
9:13,15,16,22
10:8,14 11:2,7
11:14,17,21
12:10 13:1,10
13:18,24 14:6
15:24 16:5,24
17:5,11,17,21
17:24 18:14,19
19:8,13,14,16
20:5,16,22,24
21:9,15,18,21
22:4,20,23
23:14 24:2,7
24:11,14,18,21
25:4,10,16,19
25:22,23 26:23
27:1,5 28:8
29:1,7,13,22
31:10,14 34:2
34:5,7,16,19
35:10,15,17,19
36:19 38:3
40:7,13,18
43:10 55:19
57:3 59:6,18
63:3 70:20
73:14 77:14,15
77:17 78:24
79:4
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22:10,22,23
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40:10,18 41:9
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48:2,6 53:7,21
61:14 66:21
76:17,21 77:22
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77:3
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center 51:22
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chambers 10:18
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change 66:2
76:14
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changed-life
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76:4,10,13,18
Chief 3:3,8 24:3
25:10,14 26:23
39:1,6 41:11
41:14,22 44:9
76:12 77:13,17
80:25
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children 15:9
CHIP 32:7
68:11 69:3,24
choice 14:17,19
Alderson Reporting Company
14:21 27:21
36:20 49:15
choices 27:12
29:14,15
circumstance
68:15 73:17
circumstances
77:23
citizens 15:3
23:11 56:13
City 76:3
claims 55:12
clarity 5:2 28:5
76:6
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clear 4:2 5:3
6:17 17:19
23:18 27:16
35:19 37:25
58:15 59:15
70:7 71:7 73:9
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clerk 9:24
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28:11 76:11
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coercion 15:25
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32:16 48:24
79:22
colleagues 23:8
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come 40:2 42:18
53:21 54:13
70:21 80:10
comes 13:16
Official - Subject to Final Review
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27:23 52:4
63:18
coming 26:15
58:14
command 15:22
comments 51:15
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committee 57:17
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conceded 65:6
concededly 34:9
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conflicts 74:4
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11:21 14:8
19:5 20:6,8
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consequences
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53:6 54:12,25
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consideration
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Constitution
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13:17 15:25
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42:11 46:20
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contrary 38:18
78:6
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contravention
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42:3,18,20
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26:17,21 38:5
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correct 8:12,15
14:5 17:17
18:16 40:8,20
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correctly 42:10
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30:25 33:18
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60:20 69:7
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court 1:1,14 3:9
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17:9 18:8
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courtroom 77:1
courts 4:16
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coverage 3:23
15:8 29:18,21
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create 10:8 14:9
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21:13 29:24
33:11 80:23
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15:5 18:3 60:5
creates 47:23
credit 6:12
16:18 28:11
29:6,25 77:5
79:7
credits 6:13
52:15 58:8
Alderson Reporting Company
cross-reference
61:6
cross-referenc...
60:25
cure 34:13 57:4
curious 52:3
current 52:23
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death 15:4 16:17
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decide 29:2
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decided 40:10
decision 30:6,9
53:21 54:14,15
76:10
decisions 75:25
declaration 3:20
declarations
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declined 50:15
deduction 76:6
deductions 75:3
76:7
deemed 60:16
defend 49:5
defense 35:25
defenses 35:22
deference 75:11
75:12,16
Official - Subject to Final Review
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defined 7:18,19
12:25 73:6,6
defines 27:22
definition 7:20
8:9 9:1 30:19
31:6 36:3 48:9
65:1
definitional 9:6
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definitions 7:21
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delivery 48:10
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denotation
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depends 12:1
deposition 5:9
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describes 76:8
describing 75:19
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design 44:21
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designed 45:2
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detain 7:6
device 48:10
dictates 3:12
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difficulties
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direct 75:19
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directly 44:16
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director 74:19
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discussed 77:20
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disruption
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distinguish 72:2
distinguishes
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doubt 49:7 66:3
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drastic 74:18
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drove 22:16
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either 7:10
16:16 80:6
elaborate 7:15
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elected 64:14
electing 63:15
electronic 68:2,7
elegantly 57:15
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11:3 12:6
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empirical 25:6
employee 33:14
employer 33:16
33:17 79:7,13
employers 13:14
30:21 78:20,25
empty 31:22
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enacts 54:15
encompass
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encompasses
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enroll 36:17
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entire 21:23
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entirely 21:9
entitled 27:23
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enunciated
33:12
envision 14:15
equivalence
14:9
equivalent 9:20
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Alderson Reporting Company
essential 24:17
essentially 34:25
38:8
establish 6:22
8:3,5,19 12:16
13:20 14:19,20
19:10 29:3
33:8 41:9
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63:23 64:12,23
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67:25 68:12
78:5
established 7:12
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14:17 26:18
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66:1,17 67:14
67:15 68:1,3,5
69:13 70:9,12
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establishing 9:8
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event 63:17
events 80:2
everybody 28:23
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exact 46:6 67:14
exactly 29:7
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Official - Subject to Final Review
86
65:23 74:9
examine 12:10
example 9:19
12:5 19:17
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36:17 37:3
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38:21 44:22
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62:6 63:16
64:8 66:5
69:10 71:22
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80:14,22,22,24
excludes 73:7
excuse 5:19
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exemption 6:11
exemptions
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exhibit 78:4
existence 55:16
exists 42:20
expand 33:18
expect 23:23
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expected 24:22
expedited 57:16
experimented
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explain 38:20
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factfinding 40:7
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facts 4:2 43:2
factual 6:17
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failed 50:15
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fall 13:11
fallback 19:22
fallbacks 59:14
false 76:8
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February 36:21
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16:13 55:24
56:4 75:19
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Federalization
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federally 46:3
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figment 33:1
file 40:9 50:20
filed 39:19 51:8
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Finance 58:9
find 23:23 24:9
29:10,14 37:6
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findings 23:1
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fine 27:1 68:18
finish 13:25
first 9:24 11:14
28:9 31:11,14
41:13 44:16
47:13,14,22
51:4 55:16
68:10 75:11
five 12:4,5,12
37:22 38:1
flexibility 37:1
44:25 56:21,22
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floated 59:6
focus 64:5,5
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follow 78:14
follows 36:6
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forbidden 70:10
forces 44:22
form 56:1
former 26:21
formula 27:24
formulation
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formulations
60:9
Alderson Reporting Company
forth 37:20
68:14
forward 52:9,21
found 23:22
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four 3:19 12:4,5
37:16 39:14,18
44:11 77:14
fourth 6:9
frankly 58:12
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frozen 32:24
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fulfilled 68:17
fulfilling 64:22
full 48:12
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function 10:20
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fundamental
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funding 16:1,10
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funds 18:5 32:5
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further 4:23
44:5
furthers 34:9
future 77:3
G
G 3:1
gather 72:19
gauntlet 45:17
general 1:19
26:15 31:19
37:17 39:2,4,6
41:1,14,24
Official - Subject to Final Review
87
42:14,24 43:3
43:9,16,19,25
44:4 45:12
46:10,15,18
47:1,6,12,20
48:7,19,25
49:17,20 50:11
50:17 51:3
52:11,22,25
53:8 54:2,18
54:21 55:4
56:3 57:24
58:25 59:3,6
60:18,20 61:8
61:13,15,18,25
62:5,12 63:24
64:2 65:20
66:16,24 67:16
67:19 68:8,23
69:2,23 71:6
71:19 72:12,21
73:5 74:9,23
75:5,10 76:16
76:24 77:7,13
78:3,15 80:9
generally 37:14
40:21
generous 33:22
geographical
62:20
getting 36:21
73:17
Ginsburg 3:13
4:9,13,19,23
5:6,9,18,20,23
6:4,7,19,21,24
7:5 19:1,13,16
20:13 23:25
24:3,4,8,13,15
24:19 25:1
27:15,18 40:24
43:7 54:1,4
give 26:3,24
30:22 37:1,10
54:2 68:24
given 10:22,22
38:3 44:6 50:8
73:6
gives 33:10 54:7
giving 35:11
78:20
glad 25:16
glaring 34:23
go 10:10 13:7,8
15:1 19:6 27:7
28:24 29:9
41:25 56:18
58:12 61:12
62:24 65:21
goals 26:8
gobbledygook
65:18,20
goes 27:14 51:9
61:18
going 5:11 7:14
10:8 11:18
14:22,24 15:4
15:11 22:1
23:10,11 25:3
27:5 29:9 30:5
30:15 31:12,19
33:20,21 35:12
35:21 37:20
38:12 44:5
49:10,20 52:9
52:21,25 53:12
53:15,20 54:10
54:17 55:5
57:3,25 62:21
62:21 64:4
69:12 73:9
74:13,14 75:3
77:3 80:11
good 11:16 48:8
51:24
gosh 10:13 52:6
gotten 52:6
government
3:21 4:10,12
5:6 6:8 7:7,23
12:22 14:20
16:6,7 17:3
18:11 20:19
22:9,24 23:12
28:6,20 31:16
32:18,25 45:20
56:7 58:20
63:9,22 65:14
65:17,17 69:25
75:12 77:22
79:10
government's
4:1 6:16 16:25
30:17 32:3
35:11 40:11
41:4 45:22
48:18 76:22
77:12
governs 70:1
grant-in-aid
19:18
great 11:11
greatly 78:3
guaranteed 15:8
36:8
guard 50:19
guess 28:20
42:16 43:9,10
43:25 51:3
gutted 38:8
head 79:20
health 1:7 3:21
4:7 5:5,16 18:5
35:3 40:20
63:2 67:9 70:6
70:10,11,11,15
70:24 71:1,9
71:10,15,15,16
71:24 73:23
80:18
hear 3:3 30:15
heard 25:11
hearing 58:11
hearings 23:13
heavy 27:11
held 42:10
help 18:5
helpful 79:8
helpless 79:15
HHS 9:7,13 11:6
13:20 14:16
23:15 26:13,17
31:18,22 32:11
32:12 35:21
36:5 38:7
44:22 54:8
60:13 63:18
H
64:13,15,15,20
half 27:16 28:21
65:7,25 67:15
28:22 29:25
68:4,13 78:5
happen 21:20
78:12 80:12,22
33:19,20 38:10
80:24
38:11 54:17
hiding 23:7
happens 21:21
highway 19:5
54:16
highways 19:6
hardship 6:11
hinges 66:22,24
6:11
66:24
harm 52:10,15
history 20:22
harmful 79:23
22:5,6,13
harmonious
23:17 25:8,8
37:18 46:22
38:18,23
harmoniously
hoc 25:7
38:6 75:17
hole 23:22
harmonize
Honor 7:1 8:18
47:24
17:24 18:14
harmony 67:8
24:11 25:16
harsh 33:9
29:22 40:18
Alderson Reporting Company
41:25 54:19
56:9 59:21
67:21 69:7,14
76:5 79:21
Honor's 50:2
59:11
hope 17:5
hour 19:6
huge 23:8
HUMAN 1:8
Hundreds 74:21
Hurst 3:24 4:3,5
5:8 7:4 40:19
77:18
hypothesizing
29:11
hypothetical
37:20 45:16,18
I
idea 24:16 50:8
53:18
identified 56:9
59:11
identify 41:18
75:8 78:7
ideological 3:17
ill 45:10,11
ill-conceived
45:11
ill-considered
45:11
illegal 36:10,11
37:3
imagination
33:1
immaterial 9:8
immediately
36:6 46:3
52:16,17 64:17
immersed 48:20
imperfection
57:21
imperfections
57:20
impinge 15:23
implement 30:4
Official - Subject to Final Review
88
69:5 76:1
implementation
19:25 20:1
24:5 56:8
implies 79:13
implore 12:10
important 11:24
51:9 53:17
73:22 75:18
impose 27:11
63:12 79:11
imposed 69:3
impossibilities
57:6
incarcerated
36:23 37:2
incentive 26:5
33:10
incentives 38:13
include 60:12
inclusive 63:8
incoherent
44:20
income 39:19,21
40:1,6 41:8
inconceivable
57:23
independently
22:11
Indiana 51:14
79:11
indicate 76:13
indication 44:8
indications
55:13,13
individual 5:14
6:1,11 22:24
22:25 23:4
24:6 27:22
31:24 35:5,5
36:1,7,22
57:13 62:14,16
62:17 67:9
70:7 71:4,18
71:23 72:18
individualist
34:24
individuals 29:4
31:18 35:4,24
36:12,15 70:16
70:17,23,25
71:21 72:5
78:22 79:13
80:9
ineffective 46:23
ineligible 72:3
inference 72:17
inferring 43:12
information
41:4
informed 30:7
infringe 73:11
injury 42:4
instructions
10:22,24 12:8
insurance 3:21
5:16 6:1,2
15:11,12 16:17
16:19 18:6
21:5,7 28:17
30:1 36:22,24
36:25 44:25
52:18 53:22
54:5 55:2
73:10,12,14,18
78:21
insure 79:12
insurers 15:6
20:15
intelligent 30:9
intend 51:13
intended 21:8
21:10,11 45:5
45:7
intending 26:17
intention 59:16
interest 70:16
70:24
interested 30:17
67:23
interface 32:8
68:2,7 69:22
69:24 70:1
interfering 19:9
Internal 74:19
75:2,7
interpret 14:7
17:15 18:12,13
27:10 35:23
48:5
interpretation
13:19 31:16,21
32:1,23 34:22
47:17 48:23
52:9 53:2,5
56:5 60:5 64:1
65:13 76:15
77:12 80:17
interpreted
17:14
interpreting
17:14 28:4
37:8,13
intervention
79:16
intruding 14:23
80:6
intrusive 79:18
invades 16:1
invading 16:9
invoke 49:19
involved 74:21
74:24
iota 66:2
irrelevant 6:13
irresolvable
74:4
IRS 4:4,25 5:3
5:15,17 30:6
38:11 51:11,12
75:24 76:2,6
isolation 46:19
issue 43:1 51:18
issued 68:13
issues 27:9
51:17
J
January 33:1
job 30:6
Joint 3:25 6:15
45:6,16 46:8
JR 39:4
46:11,17,25
judgment 40:10
47:2,8,15 48:1
76:19
48:19 49:1,10
June 5:11,13,21
49:13,18,21
5:22
50:11,18 51:4
jurisdiction 42:1
52:2,20,23
jurisdictions
50:23
53:1 54:1,3,9
54:24 55:6,23
Justice 1:20 3:3
56:3,20 57:14
3:8,13 4:9,13
57:24 58:18,25
4:19,23 5:1,6,9
5:18,20,23 6:4
59:1,4 60:4,19
61:5,11,14,16
6:7,19,21,24
61:20,21 62:9
7:5,14 8:13,16
62:25 63:20,25
8:20,24 9:4,12
64:3,25 65:10
9:15,18,21
65:21,22 66:13
10:13,15,18
66:20 67:12,17
11:7,10,16,16
67:22 68:19,20
11:17,20,23
68:24 69:17
12:13,19 13:2
71:3,16 72:8
13:11,22 14:1
72:16,22 73:2
14:5,11,12,14
74:7,10,10,16
15:1 16:3,12
75:1,6 76:12
16:24 17:2,7
76:24,25 77:13
17:11,18,22,25
77:17 78:14,15
18:7,15,18,20
79:3,8 80:4,19
19:1,3,13,16
80:25
20:13,21,24
21:3,13,17,19 justify 50:9
21:25 22:15,21
K
23:5,20,25
24:1,3,3,4,8,13 Kagan 9:12,15
9:18 10:13,15
24:15,15,19
10:18 11:16,17
25:1,5,10,14
11:20,23 20:21
25:21,23 26:23
20:24 21:3
27:2,7,15,18
24:1,15 25:21
28:9 29:1,12
25:24 27:2,7
30:14 31:12
28:9 29:12
34:1,3,6,14,18
34:1,3,6,14,18
34:20,21 35:13
34:20 35:13,16
35:16,18 36:2
35:18 36:13
36:13 37:6,13
37:13 38:5
38:5 39:1,7
45:16
40:24 41:11,14
Kennedy
16:12
41:22 42:9,21
16:24
17:2,8
43:1,3,7,14,17
17:25 18:7,15
43:21 44:2,6,9
Alderson Reporting Company
Official - Subject to Final Review
89
19:3 49:10,13
49:18,21 55:23
56:3,20 61:5
61:11,14,16,20
62:25 74:7,11
74:16 75:1,6
78:16
Kennedy's 79:8
key 11:4 26:1
38:4 39:11
40:16 44:11,15
kind 8:6 9:19
16:10 55:11
57:16 59:16
kinds 42:25
King 1:3 3:4
knew 14:8
know 3:15 13:12
13:16 20:17
24:1 29:4
33:13,23 36:10
40:2,3,3 42:17
43:5 44:2 45:9
50:6 54:14,21
63:6,10,12
65:19 67:21
70:2 72:23
74:12 77:4
knows 10:25
54:20
law 7:2 12:1
18:3 67:11
lawful 73:23,24
lawfully 71:1
lay 73:3
lead 58:21 67:10
learned 76:7
leave 19:19 20:9
Leevy 77:20
Left 18:24
legal 38:24
legislating 63:10
legislation 24:9
legislative 20:22
22:5,6,13
23:17 25:8,8
38:18,23 58:1
let's 15:1 23:19
27:7 67:22,23
level 49:23 74:3
74:6
Levy 7:4
liability 78:18
liable 39:14 40:4
40:15 41:3,17
41:20 42:2,3
42:19 43:11,23
43:23,24 44:12
life 9:19
L
lights 57:8
land 46:1
likes 33:17
language 3:11
limit 19:10
14:2,3 26:11
23:21
27:17 58:4,6,7 limitations
58:8,8 60:3,8
28:14 47:21
63:7 65:23
limited 38:17
66:2 70:19
78:17,17,19
78:10
limits 7:10 23:24
last-minute 58:5 line 18:4 54:3,8
late 5:13,22 52:7 lines 73:10
lauded 21:24
linguistically
Laughter 10:7
9:20
10:17 11:9,15 listen 10:1
14:13 17:4
literal 13:3
21:2 25:13,18 literalist 13:3,5
27:4 49:12
13:19
March 1:11
market 16:17
44:25
markets 52:19
markup 58:10
Mars 13:2
Maryland 13:16
30:23
massive 57:5
matched 40:6
materials 38:24
matter 1:13 19:4
41:2 42:12
53:18 72:3
matters 37:21
Mayo 76:10
mean 12:21
19:23 25:21
27:7,10,11,16
29:13 36:8,9
37:23 44:2
45:7,9 47:2,9,9
47:16 48:5,13
49:11 54:13,21
60:7,8 61:6
65:13,19 67:15
68:4 70:5
72:24 74:10
78:22
meaning 71:22
72:1,1 75:15
means 7:22
M
12:22 30:20,23
maintenance
31:1 32:10,22
32:17
35:5,9 36:8,24
Maintenance-...
38:15,25 47:19
62:7
48:3 63:14,21
making 5:3 18:4
65:15 66:13,15
28:21 50:3,22
66:16,21 68:4
68:6
72:22,22,24
mandate 5:14
78:12
6:1,12 22:24
meant 28:25
22:25 33:16,17
63:8
36:23 53:3
mechanism
79:7,13
21:20 55:24
mandated 16:18
61:2
manner 56:23
Medicaid 15:14
literally 35:23
litigated 39:16
litigation 34:17
80:16
little 14:14
26:25 61:20
75:7
live 72:6
lived 33:15
located 62:18
logic 31:22 37:7
logical 72:17
long 13:15 34:4
34:14,19 54:1
longer 42:20
73:25
look 4:14 8:1
12:15 14:1
29:6,13,16,20
36:13,13 37:15
37:15,16,25
48:9 51:16
59:25 62:6,14
Lord 48:4
lose 15:16 32:2
73:24 78:13
losing 32:5 78:2
78:2
lot 65:11
lots 50:12,13
lower 4:16,20
Alderson Reporting Company
15:17 16:1
17:9 18:1,2
19:17 20:7,8,9
21:22 23:18
24:23 30:24
32:2,5,7,17,19
33:5,8 62:6
68:11 69:3,24
78:2,13 79:23
79:23
Medicaid-eligi...
5:12
meet 63:16
64:14
memo 9:25 10:1
10:2,3,5,5,6,9
10:10,11,12,19
10:23,24 11:1
11:11,12 12:6
merits 7:9 40:23
44:15
message 57:10
met 68:16,20,20
69:1
MICHAEL 1:17
2:3,9 3:6 77:15
miles 19:6
million 55:1
millions 45:3
52:18 74:22
mind 66:3 67:21
minute 22:15
minutes 26:24
27:6 30:16
31:9,13 33:23
39:3 77:14
mockery 44:23
money 4:3 10:10
15:15,17 19:19
53:12
moneys 10:9
month 29:21
months 4:5 6:2
29:18 40:19
53:20
moot 77:22
mootness 42:16
Official - Subject to Final Review
90
morning 3:4
motion 40:9,11
41:23 42:11
mouse 23:22
mousetrap 23:8
N
N 2:1,1 3:1
names 9:23
national 59:14
naturally 26:13
Nebraska 51:14
necessary 22:25
46:13 59:24
71:22 75:25
need 22:11 76:5
76:17 78:12,16
78:18
needs 7:2 67:6
negotiated 59:23
neighboring
33:21
neither 34:9
36:11 37:5
Nelson 59:8,15
neon 57:8
never 4:12 15:24
16:25 20:2
30:23,24 33:18
never-ending
21:1
new 19:14 49:6
53:22,22
NF 16:5
NFIB 15:25 17:9
20:7 32:16
79:24,24
non-State 14:9
noncoercive
80:1
nonliteralist
13:19
normally 38:24
60:7
Northern 53:7,8
53:11
notably 14:4
notice 27:17
50:6,9,12
51:12 52:3
57:2
notion 30:11
76:8 78:5,11
novel 49:2,7,11
80:3
number 17:1
23:3 35:25
36:7 48:20
50:15,22 51:17
53:19,20 72:17
numerous 35:22
O
O 2:1 3:1
Obama 22:9
objective 55:13
59:22
obligated 15:6,6
obligation 4:14
68:11 69:21
obliged 5:25
31:21
observation
25:6
obvious 12:6
57:22
obviously 5:14
16:2 21:14
53:14 78:6
occur 54:6
odd 75:7
offer 9:18 21:6
offered 15:12
official 29:2
oh 14:25 16:3
33:13 34:19
52:5
Okay 7:5 9:23
23:9 27:1 54:7
Oklahoma
51:14
omitted 14:4
once 10:1 67:3
one's 21:25
passed 56:2
59:20
pattern 19:20,20
19:24,24
pay 13:14 16:18
payments 32:19
penalties 13:14
penalty 6:6
32:15 39:14
40:5,14,16
41:3,17,21
42:2,20 43:12
44:12 77:19
Pennhurst 52:3
people 4:21
13:15 16:17
18:4 22:2 23:3
52:18 55:1
58:22 72:2,3,4
72:5,6,13 73:7
78:7
perfect 32:9
36:19 37:1
perfectly 19:12
62:13 68:18
performing
10:20
period 28:23
36:25 60:22
person 12:14
P
13:2,16 26:17
P 3:1
31:1 40:25
page 2:2 4:1
62:18 72:9
65:6 71:11
73:7
Pages 59:25
personnel 79:16
pain 32:5
persons 70:17
pale 70:4
73:19
parallel 14:1
persuasive
part 15:7 26:1
37:11
29:23 39:17
Petitioner 55:11
72:8
Petitioners 1:4
participate 56:7
1:18 2:4,10 3:7
56:12
39:14,18 40:3
particular 37:16
40:9,9 41:5,8
47:17 62:20
43:13 45:17
67:3,5
48:22 49:14
pass 42:19
50:7,7 52:8
one-stop 22:8
onerous 50:4,4
55:11
ones 34:24 69:15
opening 6:25
operate 8:3,6
21:7 22:10
74:13,14
operated 21:10
operates 46:21
operating 54:8
operation 67:2
opinion 20:7
31:22 79:25
opportunity
39:10
opposed 58:19
62:5
opposite 56:24
option 59:12
oral 1:13 2:2,5
3:6 39:4 41:13
order 46:21 54:4
54:4 66:12
Orwellian 56:22
ought 58:2
oughtn't 38:1
outside 15:25
overnight 30:6
Alderson Reporting Company
53:2 56:23
65:6,8 77:16
phrase 9:4,6
23:7 26:18
31:6 60:6
62:10,22 67:14
71:22
phrases 14:8
26:12
pick 47:4
picking 45:15
Pipeline 53:7,8
53:12
place 23:22,23
27:19 28:9,13
29:13,16 56:10
64:4,5
placed 28:14
plain 3:11 7:11
10:11 16:22
64:21 78:10
plaintiff 3:15,16
6:9 7:2,4,4
43:11
plaintiffs 3:19
42:19
plan 15:12 19:25
20:1,2 29:5
57:2,7 67:9
70:6,10,11,11
70:15,24 71:5
71:9,11,15,15
71:16 80:18
plans 35:3 71:1
plausible 37:10
59:2
playing 20:8
please 3:9,14
24:14 25:22
39:7 44:14
plus 26:9 33:2
33:10
point 4:11,23
11:4,24 12:13
13:8 16:14
17:25 18:20,21
28:3,4 30:3
Official - Subject to Final Review
91
31:7,11,14,18
31:24,25 40:17
41:6 50:2 51:9
52:2,13 53:17
55:6 56:19
57:1,2 61:25
62:24 69:9
70:5 72:20
73:18,19,24
74:3 76:5
pointed 20:7
36:2 67:19
79:25 80:4
points 13:10
16:24 20:16
38:4 39:11
44:16 47:13
51:4 74:24
75:10
polar 56:24
police 16:2,6
policies 30:22
54:5 73:10
policy 30:21
72:3,19
pollutants 34:11
position 7:7 43:6
48:18 60:23
76:22 80:16
possession 41:4
41:5
possible 21:16
21:17 26:2
29:5 41:8
46:25 52:15
53:1
possibly 48:13
50:9 55:14
80:23
post 25:6
potential 9:17
poverty 18:4
power 16:2,7
powerful 16:14
49:25 56:17
powerless 33:3,6
practical 30:3
53:18
practices 79:16
precipitates
44:25
precisely 14:2
38:10 74:12
predicted 80:9
preference 38:8
preferred 56:6
prepared 49:3
prerogative 19:9
prerogatives
73:11
present 73:19
President 22:9
presumably
30:8
presumption
27:10 77:5
presupposes
69:11
pretty 37:25
prevail 16:21
31:20 35:20
38:25 80:10
prevents 58:23
58:23
previously 20:25
primary 15:21
principle 14:6
37:9 47:15,21
77:21 79:1
principles 37:2
75:18 77:11
printed 78:4
prior 22:22,23
64:17
prison 36:21
72:6 73:15,18
prisoner 36:14
prisoners 36:14
36:17 73:12,13
pristine 37:7
pro-Federalism
56:15
probably 77:2
problem 8:17
16:23 23:5,5
50:6 54:16
59:11 75:8,20
procedures
57:16 67:25
68:13 78:5
proceeding
51:15
process 58:1
produces 44:19
47:17
product 58:4,5,9
59:19
products 21:6
35:2
profound 50:5
program 15:7
19:21,23 21:23
22:1 52:5
programs 22:2
prohibition 71:9
projection 42:17
42:18
projections
39:17,20,24
40:1,6 41:7,15
promise 44:24
45:3
promote 46:24
promoted 56:4
proof 59:22
proper 53:15
69:22
proposed 51:12
proposition 18:9
prove 6:22
proves 69:8
provide 26:20
38:7 78:20
provided 55:18
77:6
provides 57:7
63:13
provision 7:9
12:7,15 14:1
14:15 17:13,19
24:4,5 29:14
29:17,25 32:18
32:22 34:13
35:24 36:11,14
46:1 47:17
48:3,12 57:12
58:23 59:4
60:12,14,21
62:1,7,14,16
62:17 68:14
71:3,8,17
72:19 73:16
77:9 79:25
provisions 18:23
22:18 23:20
32:3 44:17
45:10,25 46:19
46:23 47:25
48:20 59:23
67:3,5,10,13
67:17 72:18
public 58:11,11
purchase 71:21
71:24 72:9,19
purchases 23:24
purpose 22:16
26:7 32:18
33:12 67:1
purposes 24:25
29:18 34:10
38:22 53:22
57:13 60:16
66:1,23
pushed 57:15
put 3:17 27:8,19
27:20,21 28:12
28:19,21 51:12
56:10 64:5
putting 27:9
29:23 65:11
puzzle 60:4
Q
qualified 27:22
31:1,17,24
34:24 35:4,5
35:24 36:1,7,9
36:12,15 37:5
Alderson Reporting Company
62:14,16,17
67:9,9 70:6,6
70:10,11,15,16
70:17,22,24,25
71:1,4,9,10,15
71:16,18,21,23
71:25 72:1,5,9
72:18,22,23,25
73:2 80:9,18
qualifies 46:4
64:7,24 66:17
69:12
qualify 6:10
35:8 39:21,24
40:20 64:9,10
65:25
qualifying 66:25
question 3:14,22
6:10 10:4
11:25 12:20,21
17:6 18:10
27:3,8 34:21
39:12,13 40:16
41:12,17,19
42:5,6,8,9,16
44:11 45:8
48:21 49:3,8,9
49:22 55:5,7,8
57:25 58:3
74:14 76:3
80:4
questions 3:17
3:18 76:4
quickly 77:18
quite 17:7 19:2
22:6,10 23:18
24:2 38:15
48:16 51:9
58:1,2 70:7
73:8
quote 7:21,22
8:3,7 72:10
R
R 3:1
raise 43:4 77:24
raised 39:8
Official - Subject to Final Review
92
41:18 43:4
44:10 76:5
raises 18:10
raising 41:12
ratings 15:10
rational 26:16
26:20 49:15
read 7:16,20
13:4,6,13
14:21,22 15:22
24:16 29:9,9
30:8,12,12,18
31:5 46:18,19
46:20,20,22,23
47:1 48:11
49:25 50:6
67:5,6,15 68:3
68:4 70:19,20
73:1 74:5,15
76:21 77:4,8,8
77:9,10 78:16
78:19
reading 32:14
35:11 37:11
38:19 44:16,19
44:21,22 48:16
50:7 56:14,15
56:15,16 57:6
60:24 66:6,9
66:10 67:2,4
67:11 69:7
70:3 72:25
75:16 76:7
78:19,25 80:5
readings 47:4
reads 70:20
ready 54:6
realize 52:6
really 11:25
13:9 17:25
23:9 25:16
27:15 30:14,14
33:19 41:9
44:17 51:20
54:10 55:10
56:6 57:7 61:6
63:21 66:9
70:5 74:2
76:21
reason 21:6
26:20 43:19
45:13 49:25
56:17 64:10,24
73:22
reasonable 47:4
47:16 48:16
66:9 67:2,4
76:18
reasonably 47:9
reasons 7:3
12:12 28:9
56:8
REBUTTAL
2:8 77:15
receive 15:4
received 6:12
11:11
receiving 5:4
recitation 4:2
reconcile 47:25
record 41:7
77:25
reduce 23:3
53:16
refer 3:25 6:14
19:17
reference 30:19
62:20
referred 78:16
referring 64:17
71:17
refers 8:7
reflected 22:5
reflection 25:7
refutes 25:9
regard 13:25
regime 48:13
regulating 73:11
regulation 30:13
69:5
regulations
30:24 68:14,21
68:22 69:18,21
regulatory
48:13
reinforced 64:25
reject 56:17
related 19:11,12
56:19
relations 28:7
relationship
14:23 15:23
69:4
relevant 36:25
41:19 42:5,7
55:4,8 58:2,2
relief 77:19
remains 69:20
remember 37:8
50:3 51:10
render 46:23
replete 34:22
representation
43:18,22 44:7
require 28:5
required 59:8
64:16,17,18
requirement
63:12,14 64:11
64:22 66:18
69:5 79:12
requirements
15:14 32:4
63:16 64:14
68:17,21 69:2
requires 32:1
45:19 48:17
68:15 79:6
reside 70:18
72:10
residents 50:5
resides 35:6
62:18 73:7
resolve 75:14,14
76:20,20
resort 75:15
respect 6:18
36:1 37:22
39:12,20,23
40:17 41:6
42:6 45:18
47:12 50:2
51:7 58:3
62:15,16 71:8
73:12 75:11,23
80:13,24
respectfully
28:8
respond 12:13
25:25 48:21
80:12
Respondents
1:21 2:7 39:5
response 25:5
33:24 52:13
55:6
responses 30:17
responsible 68:6
rest 34:12 44:18
47:11,18
restriction 33:9
result 3:12
35:18 37:9,12
55:20 58:16
return 25:19
Returning 7:9
Revenue 74:19
75:2,7
reverse 23:6
revokes 45:3
rewrite 17:20
ride 61:19
right 5:25 24:2
29:19,24 32:20
33:4 34:20
37:15 41:23
61:11,17,19
63:24 64:3,4,5
67:22 72:12
74:10 76:12,13
rise 15:11 49:23
risky 20:6
ROBERTS 3:3
24:3 25:10,14
26:23 39:1
41:11,22 76:12
77:13 80:25
routine 16:10
Alderson Reporting Company
ruin 27:5
rule 4:4,25 5:15
38:11,22 46:14
46:15,16,20
51:11
rulemaking
51:12,15,16,23
rules 62:5
rump 44:22
run 10:15 26:3
58:20 72:15
running 38:13
53:24
S
S 2:1 3:1
saga 21:1
satisfied 63:15
63:15,17 69:6
satisfies 66:18
satisfy 66:17
savings 18:19
saying 11:24
13:19 14:16,22
16:8 27:15,25
37:4 38:12,15
39:19 40:24
44:1,4 47:3
51:12 60:12
61:1,5 62:3
66:5
says 4:25 7:11
7:21,23 8:1,5
9:10 12:14,16
12:17 17:19,23
19:18,20 20:3
26:2,11 27:12
27:20 32:10,25
35:3,4 36:1,11
36:14 45:20
47:19 56:20
60:15,21,22
62:17,25 63:1
63:4,20 64:13
64:16 65:1,3
67:24 68:10,12
69:9,11 70:14
Official - Subject to Final Review
93
71:4,20 72:20
73:14,16 78:4
78:7
Scalia 5:1 17:11
17:18,22 31:12
45:6 46:8,11
46:17,25 47:2
47:8,15 48:1
54:9,24 57:14
57:24 58:18,25
59:1,4 65:10
65:21 66:13,20
68:20,24 74:10
80:4
Scalia's 18:20
scenario 53:13
scheme 47:23
55:14
scintilla 20:12
22:12
scope 48:12
scrambling 58:6
second 11:18
44:20 55:22
56:18 61:25
secondly 47:25
secretary 1:7 8:3
8:5,10,19,22
12:22 31:3
section 7:13,20
9:7,11,14,17
11:4 26:1
34:11 35:2,4
36:5 38:5,8
44:18 56:20
57:12 60:23,25
62:2 63:1,1,13
63:13 64:11,19
64:22 65:2
66:1 67:24
70:8 72:8
75:23 76:1
80:14
sections 9:20
34:8
secure 32:8
59:24 68:2,7
see 31:13,13
51:16 58:14
60:1
seen 20:2
sell 20:15 70:9
selling 70:10
71:9
Senate 58:9
senator 23:12
59:8,15
senators 22:7
23:14 58:18
send 16:16 43:8
sense 10:11
25:15 28:3
32:9,20 33:3
36:18,19 37:1
37:14 44:18
46:6,9,10,12
54:7 55:17,17
56:22 67:7
72:4 73:3,13
sentence 34:19
sentences 34:6
34:15
serious 16:22
18:10 49:8,22
80:16
seriously 17:7
serve 4:8 40:21
served 4:7
service 4:6 75:2
services 1:8 4:8
5:5
set 8:2,10 10:21
21:19 25:2
51:21 53:23
55:10,15 59:12
61:3,3 63:9
64:7,15 65:25
65:25 66:15
69:10
sets 65:7,9
setting 34:25
68:14
setup 58:16
share 35:14
shoes 11:13
shop 10:16 73:9
shopping 22:8
short 4:7,8
63:18 79:21
show 48:15
55:25
shows 14:8
side 51:8 69:23
70:1,5
sides 18:9
sign 73:18
signed 50:21
51:1 52:5
significant
52:17 53:19
simple 9:19 12:4
simply 30:13
single 48:2 60:2
single-payer
58:21
sit 54:11
situation 47:22
50:4 55:11
sky-high 16:20
small 76:5
sold 71:2
Solicitor 1:19
26:15 31:19
78:3 80:9
solution 59:10
somebody 26:21
33:14 36:20
sorry 14:11
24:14 25:21
34:5
sort 9:19
Sotomayor
13:22 14:11,12
14:14 16:3
18:18 21:13,17
21:19,25 22:15
22:21 23:5,20
25:5 43:14,17
43:21 44:2,6
72:8 76:24
78:14 79:3
South 19:3
sovereignty 16:9
80:7
speak 28:6
specific 62:4,5
73:16 75:25
specifically 45:1
spend 4:3 5:16
spiral 15:5
16:17 22:14
spirals 23:1 45:1
spread 34:12
stake 3:16
stand 31:19 39:9
standard 49:19
standing 6:18,22
6:22 7:3,7 39:8
39:9,12,23,25
40:16,22,25
41:12,17 42:6
42:10,12 43:4
43:6,16 44:10
77:18
standpoint
16:13
start 39:8 45:14
State 7:12,24 8:2
8:8,11,22 9:2
9:10 11:22
12:18,23,24,25
13:21,22 14:3
14:17,18,19
16:2,9 19:7,9
19:18,21,25,25
26:19 28:25
29:2,3,11 30:7
30:19 31:3
32:4,7,7,10,11
32:13 33:11,15
35:6,8,23 36:4
38:9 44:25
45:19,21,23
46:2,5 50:5,16
50:24 51:1
52:4,7 55:20
56:6,6,7,13,21
56:21 57:3,10
Alderson Reporting Company
58:17 60:7,11
60:13,21,22,23
61:23 62:2,5
62:10,11,11,18
62:21,25 63:2
63:3,4,7,8,15
63:17,21,22
64:8,12,14,23
64:25 65:3,9
65:14,16,17,18
66:1,14,15,18
66:21,22,25
67:1,14,15,25
68:1,3,5,10,11
68:15,19,25
69:3,6,9,11,13
69:13,20,25
70:9,12,18,21
71:14 72:6,10
73:7,8,10,11
78:4,7,9,12
80:6,14,21
State's 69:23
State-by-State
59:13
State-establis...
26:14 29:5
32:6
State-run 26:9
stated 59:15
states 1:1,14
11:5 14:24
15:3,5,7,13,13
16:15 18:2,24
21:11,14 22:16
23:9 24:24
26:2,5 27:12
27:20 28:16,18
30:5,11,25
32:1,15,24
33:3,9,21
36:20 37:1
38:11,16 49:6
49:16 50:8,10
50:13,14,14,15
50:22,23,24,25
51:5,5,7,14,21
Official - Subject to Final Review
94
52:18 53:19,19
55:10,25 57:8
57:21 59:12
60:16 61:3
63:4 68:15
69:10,19 72:13
77:3 78:2,2,21
79:11,12,14,14
stating 3:20
status 42:7
44:24 73:23,24
statute 3:11 7:16
8:10,14 9:1
14:22 15:22
16:22 17:9
18:13 20:3
23:18 26:11
27:22 29:15,17
30:12 32:1,14
33:2 36:16
37:7,11,14
38:6,15,25
44:20 45:2,4,7
45:8,10,12,13
45:19 46:5,12
46:21 47:11,13
47:18 48:4
49:5 50:8 51:6
51:20,25 52:9
53:3,6 54:15
55:9 56:21,24
57:9,15 62:22
63:20 64:21
65:24 66:6,9
66:10 67:2,7
68:9,22 69:4,9
70:1,7,14,19
71:20 72:14,25
73:8 74:5,13
75:14,17,21,24
76:21 77:6
78:3 79:10,18
79:22 80:5
statute's 44:24
75:15
statutes 27:11
28:4 37:8 46:8
57:18 79:6
statutory 3:10
3:15 14:7
15:21 26:6
36:3 37:9 45:1
45:25 46:19,23
47:23 48:16
50:1 52:13
55:14,19 56:18
57:5 58:7,16
60:3 68:10,14
69:5 73:16
76:7 80:17
stay 22:2 53:3
stemming 31:15
step 44:5 74:18
76:17
stepped 11:13
stepping 63:18
steps 64:15
stop 79:15
story 25:15
straight-up
18:21
straightforward
3:10
strike 57:22
strong 38:8
76:17
stronger 12:12
strongest 26:2
structure 12:7
44:21 56:9
58:7
subclause 57:11
subject 5:14 6:5
33:16 55:10
77:19
submitted 50:22
50:23 81:1,3
subsection 29:18
29:19
subsequent
76:14,16
subsidies 5:4
7:10,11 9:10
15:4 16:19
20:18,20 21:4
21:8 22:1,12
22:13,18 23:2
23:3,11,15,21
23:24 24:16
26:4,7,8,17
27:23 28:18
29:8,10 32:20
32:24 33:4,11
36:12 38:7,17
51:21 58:16
66:4 74:21,24
78:16
subsidy 20:11
28:1
substitute 10:21
10:21 12:9
suffer 32:15
suggest 13:20
59:21
suggested 15:24
23:2 43:11
59:18 65:1
suggesting 22:13
37:24 42:22,24
77:22
suggests 12:8
55:19 59:7
summarize 31:8
39:10 44:15
summary 40:10
supplement
77:25
support 13:17
supporting
38:23
supports 31:5
75:12
suppose 19:5
62:12
supposed 10:25
10:25 55:20
65:7 66:14
Supreme 1:1,14
sure 15:6 18:11
53:8 57:9 68:6
69:21
surely 41:11
surplus 73:21
surprising 57:19
survive 22:19
SYLVIA 1:6
synonym 74:7
system 4:17 15:5
34:25 55:10
58:21 59:14
taxing 57:13
taxpayers 28:16
30:1 57:13
technical 27:24
30:19 73:4
technically 4:24
31:6
tell 15:18 26:16
28:16,17 30:1
31:20 35:12
T
80:10
T 2:1,1
telling 39:9
take 14:12 19:19
50:20 69:18
20:3,8 21:11
tells 8:10,19
25:3 26:24
24:5 40:18
50:7 67:22,23
51:24 64:12
76:23
ten 26:24 27:6
taken 54:1 60:7
39:2
76:22
tendentious
takes 5:23 54:16
80:16
talk 23:19 25:11 Tenth 63:11
26:25 34:23
66:12
talked 25:25
term 7:19,21
talking 8:17
15:21 73:3,4
9:21 15:2 23:6 terminology
34:3 36:4
8:25 9:1
51:11 54:25
terms 7:18 26:2
55:24 56:19
26:10,10 28:3
57:25 62:4,19
28:4 32:8
71:8 80:21
38:14 76:4,10
talks 29:15,17
77:8,9 78:1,1
29:21
79:7,8,20 80:8
task 38:13
80:8,18
tax 6:12,13 7:17 terrible 48:4
24:4 28:10,11 territorial 12:15
29:25 39:14
20:19
40:4,14,15
territories 12:16
41:3,17,21
60:15
42:2,19 43:11 text 37:15,16,25
44:12 52:15,24
44:17 48:15,17
53:3 58:8 76:6
50:1 60:25
76:7,11 77:1,3
64:21 66:11
77:5 78:18
74:3,6
79:7
textual 44:24
taxes 16:18
55:12,13 57:5
28:13 30:20
67:3,5 72:15
31:4
textually 20:17
Alderson Reporting Company
Official - Subject to Final Review
95
44:19 60:23
Thank 7:8 31:10
39:1,6 77:12
77:13,17 80:25
thankless 38:12
theirs 79:19
theoretically
54:22,22
theory 35:7,14
35:16 36:16
72:13 79:14,17
80:11
thesis 29:7
thing 12:23,24
12:24 23:8
24:19 25:2
27:9 32:25
34:24 46:6
47:9,10 48:3
58:20,24 64:6
things 17:3
22:10 47:5
think 4:19 5:10
6:9 9:19 11:24
13:4 15:20
17:1,2,25 18:8
24:1 25:3,20
29:12,13,16
32:11 33:25
34:2,18,18,20
34:23 36:20
37:18,24 38:4
39:11 40:20
41:19 42:4,6,7
42:16 44:10,15
45:14,15,21
47:20 48:7,7
48:15 49:1,3,6
49:7,24 50:1,2
50:14 51:9,24
52:14 53:17,24
54:10 55:2,12
56:4 58:1,2
60:24 61:9,9
61:13,15,18
63:24 64:2,3
65:21 67:20
69:8 70:2 72:4
73:5 74:9,17
75:12,20 76:16
76:20 77:2
79:8,21 80:15
thinks 53:15
third 57:1
thought 20:17
21:14,15 24:22
30:5 33:19,20
56:6 58:20
59:10
three 9:22 20:16
28:9,15 30:4
31:3 55:12
throw 45:17
thwarted 20:10
21:23
tighten 30:24
tightened 15:14
till 15:9
time 21:1 24:20
34:4 41:13
54:3,8,17
62:22
times 8:25 16:11
Title 59:24 60:1
tobacco 48:11
today 25:15 32:1
32:13 49:4
56:10 77:1
told 16:16 22:10
24:20,21 51:5
track 68:22
traditional
73:11
transport 34:8
treasury 27:25
53:13
treat 38:1
treated 12:17
14:3 36:15
treatise 76:8
trial 42:22
tried 31:7 41:18
55:15
tries 63:17
true 4:15 6:14
21:9 24:12
30:1 46:6
47:19 59:22
61:10
try 37:17 47:24
55:5 59:19
trying 17:7
26:21 29:2
55:6
turn 5:11,13,21
20:9,10 33:22
40:23 44:14
45:10
turns 8:21 39:13
twist 46:12
two 3:20 4:20
5:10 13:10
16:24 17:1
22:10 30:10
31:3,25 32:21
34:6,14 36:7
39:11 40:21
44:15 47:13
50:13 51:4
74:24 76:3,10
76:18 78:23
two-thirds 38:11
typical 19:23
U
U.S 18:23 77:24
U.S.C 28:12
67:24
ultimately 42:5
unable 30:12
unaffordability
39:22,25
unambiguous
71:13 79:1,2,6
unambiguously
48:11
unanimous 76:9
unconditional
26:3
unconstitutio...
15:19,20 17:8
17:10,15,20
18:22 49:4
unconstitutio...
17:12
unconstitutio...
32:16 48:23
undermined
26:6
undermines
38:22
understand 18:7
18:17 34:1
35:22 51:6
69:17 72:16
understanding
12:1 41:16
51:10 58:15,15
understood
23:10 51:20,25
undertake 38:12
undisputed 5:5
79:2
unilaterally
79:10
United 1:1,14
49:6 77:3
unlawfully 72:7
73:19
unqualified
72:23 73:20
unrealistic
53:25 65:13
unsupported
25:6
untoward 47:10
untrue 22:4
unusual 15:25
upheld 16:11
upset 50:19
upsetting 28:6
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