Mаtt SISSEL, Appellant v. UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES, et al., Appellees.
No. 13-5202.
United States Court of Appeals, District of Columbia Circuit.
Argued May 8, 2014. Decided July 29, 2014.
John C. Eastman and Anthony T. Caso were on the brief for amicus curiae Center for Constitutional Jurisprudence in support of appellant.
Lawrence J. Joseph was on the brief for amicus curiae Association of American Physicians аnd Surgeons in support of appellant.
Joseph E. Schmitz and Paul D. Kamenar were on the brief for amici curiae U.S. Representatives Trent Franks, et al. in support of appellant.
Alisa B. Klein, Attorney, U.S. Department of Justice, argued the cause for appellees. With her on the brief were Stuart F. Delery, Assistant Attorney General, Ronald C. Machen Jr., U.S. Attorney, Beth S. Brinkmann, Deputy Assistant Attorney General, and Mark B. Stern, Attorney.
Before: ROGERS, PILLARD and WILKINS, Circuit Judges.
Opinion for the Court filed by Circuit Judge ROGERS.
ROGERS, Circuit Judge:
Section 5000A of the Patient Protection and Affordable Care Act,
I.
A.
Section 5000A of the Affordable Care Act imposes a “[r]equirement to maintain minimum essential [health insurance] coverage.”
Subsection (d) limits who is an “applicable individual” subject to the coverage requirement. See
Subsection (e) enumerates when “[n]o penalty shall be imposed” for failure to obtain required health coverage.
B.
According to the complaint filed October 11, 2012, Matt Sissel is an “artist who works out of his studio” in Iowa and “also works part-time ... for the National Guard.” First Am. Compl. (“Compl.“) ¶ 5. “He is financially stable, has an annual income that requires him to file federal tax returns, and could afford health insurance if he wanted to obtain such coverage.” Id. He “does not have, need, or want health insurance.” Id. Further, “he is able to and does pay for any and all of his medical expenses out of pocket.” Id. Because “he cannot claim any of the exemptions,” id. ¶ 15, the Affordable Care “Act obligates [him] to purchase, at his own expense and against his will, federally approved health insurance, or pay the ‘shared responsibility payment,‘” id. Sissel seeks declaratory and injunctive relief against the mandate and the Affordable Care Act in toto.
First, Sissel alleges that the Affordable Care Act‘s “purchase requirement,” commonly known as the individual mandate, “is not a regulation of commerce, but purports to compel affected Americans, like [himself], to engage in сommerce.” Id. ¶ 34. Citing NFIB, 132 S.Ct. at 2600, where Chief Justice Roberts stated that “the Commerce Clause does not authorize such a command,” he alleges that Section 5000A violates the Commerce Clause. See id. Second, he alleges that Section 5000A‘s “shared responsibility payment’ is a tax that raises revenue to support Government generally,” id. ¶ 39, and violates the Origination Clause because it “originated in the Senate, not the House,” id. ¶ 40.
The district court dismissed the complaint pursuant to
II.
As a threshold matter, we must determine whether or not Sissel has standing under
Upon review of the requested supplementation, see Order (May 22, 2014), we hold that Sissel has Article III standing. By signed affidavit, Sissel attests that he does not fall within any of the exemptiоns under the Affordable Care Act,
Sissel‘s counsel has further attested that based on available information from the “Washington Healthplanfinder” website, the cost of the least expensive qualifying health plan in the region of the country where Sissel now lives is less than 8 percent of Sissel‘s projected 2014 income. See Sandefur Aff. ¶ 2 (June 2, 2014), Ex. A; Sissel Aff. ¶ 10. In his complaint and affidavit, Sissel states that the two sources of his annual income are his work as an artist and his part-time service as a Public Affairs Specialist for the National Guard. See Compl. ¶ 5; Sissel Aff. ¶ 10. Consequently, Sissel maintains he does not qualify for a low-income exemption under the Affordable Care Act,
Taking these factual representations as true, as we must for purposes of Article III standing, see Defenders of Wildlife, 504 U.S. at 561, and аbsent any basis to question Sissel‘s view of the legal obligation of the National Guard with respect to health care coverage, it appears certain that Sissel is subject to the Section 5000A mandate requiring him to purchase minimum essential health insurance coverage or else to pay the shared responsibility payment. The government does not challenge the affiants’ representations or otherwise claim that Sissel lacks Article III standing. See Appellees’ Supp. Br. 1. Even though Sissel is still а member of the National Guard and from time to time may be called to active duty, providing him temporary health insurance coverage by the Guard, the government has not suggested this circumstance would render exempt an individual otherwise subject to the requirements of Section 5000A, and we agree. Congress has included limited, specific ex
III.
The Constitution authorizes the Congress to “regulate Commerce ... among the several States,”
Sissel seeks to “enjoin[] the government from enforcing the individual mandate against him,” Reply Br. 3, because “the Commerce Clause does not authorize Congress to impose” the mandate, Appellant‘s Br. 6. He maintains that in NFIB the Supreme Court “did not sustain the individual mandate under the taxing power.” Id. at 7. “[I]ndeed,” he suggests, “the Supreme Court did not sustain the individual mandate at all.” Id. In Sissel‘s view, “[t]he NFIB opinion makes an essential constitutional distinction betwеen the individual mandate—which compels people to buy health insurance—and the shared responsibility payment—which imposes a tax on people who choose not to purchase health insurance,” and he maintains that only the latter was upheld by the Court. Id. at 7, 10. Unless this court declares the individual mandate invalid, he contends the mandate will “render[] [him] a violator of federal law if he fails to buy the prescribed insurance.” Id. at 12.
Sissel‘s Commerce Clause claim rests on a flawed understanding of thе Supreme Court‘s decision in NFIB. See Appellees’ Br. 7-8. In NFIB, the government “ask[ed] [the Court] to read the mandate not as ordering individuals to buy insurance, but rather as imposing a tax on those who do not buy that product.” NFIB, 132 S.Ct. at 2593 (emphasis added); see also
IV.
The Origination Clause,
In interpreting the Origination Clause, the Supreme Court has held from the early days of this Nation that “revenue bills are those that levy taxes in the strict sense of the word, and are not bills for other purposes which may incidentally create revenue.” Twin City Bank v. Nebeker, 167 U.S. 196, 202, 17 S.Ct. 766, 42 L.Ed. 134 (1897) (citing 1 J. STORY, COMMENTARIES ON THE CONSTITUTION § 880). The Court has adhered to this “strict” interpretation. See United States v. Munoz-Flores, 495 U.S. 385, 397, 110 S.Ct. 1964, 109 L.Ed.2d 384 (1990); Millard v. Roberts, 202 U.S. 429, 436, 26 S.Ct. 674, 50 L.Ed. 1090 (1906); United States v. Norton, 91 U.S. 566, 569, 23 L.Ed. 454 (1875). Necessarily, this court has followed suit. See Rural Cellular Ass‘n v. FCC, 685 F.3d 1083, 1090 (D.C.Cir.2012). Under this “strict” inter
The purposive approach embodied in Supreme Court precedent necessarily leads to the conclusion that Section 5000A of the Affordable Care Act is not a “Bill[] for raising Revenue” under the Origination Clause. The Supreme Court‘s repeated focus on the statutory provision‘s “object,” Nebeker, 167 U.S. at 203, and “primary purpose,” Munoz-Flores, 495 U.S. at 399, makes clear, contrary to Sissel‘s position, that the рurpose of a bill is critical to the Origination Clause inquiry. And after the Supreme Court‘s decision in NFIB, it is beyond dispute that the paramount aim of the Affordable Care Act is “to increase the number of Americans covered by health insurance and decrease the cost of health care,” NFIB, 132 S.Ct. at 2580, not to raise revenue by means of the shared responsibility payment. The Supreme Court explained: “Although the [Section 5000A] payment will raise considerable revenue, it is plainly designed to expand health insurance coverage.”
Sissel contends, however, that the Supreme Court cases rejecting Origination Clause challenges merely embody “two exceptions” to the general “presumpt[ion]” that “[a]ll taxes” are subject tо the Clause. Appellant‘s Br. 14; Reply Br. 6-7. He maintains that the Affordable Care Act does not fall within either exception because the Section 5000A payment neither funds a particular governmental program, as was true in Munoz-Flores, 495 U.S. at 397-98, nor enforces compliance with a statute passed under some other (non-taxing) constitutional power, as in Millard, 202 U.S. at 433. Yet even assuming Sissel is correct that the precedent can be classified in one or both of his categories, neither the Supreme Court nor this court has held that a statute must be so classifiable to avoid the requirements of the Origination Clause. All Sissel has demonstrated is that the Affordable Care Act‘s mandate does not fall squarely within the fact patterns of prior unsuccessful Origination Clause challenges, not that his challenge should succeed.
Sissel‘s interpretation of the taxing power also fails to adhere to Supreme Court precedent. In emphasizing that in NFIB the Court upheld Section 5000A solely as an exercise of Congress‘s taxing power, see NFIB, 132 S.Ct. at 2600, Sissel contends that the Section 5000A tax is presumptively subject to the Origination Clause because it “serves no constitutional purpose other than to raise revenue pursuant to Congress‘s taxing power.” Reply Br. 7. This implicitly assumes that all exercises of the taxing power are necessarily aimed at raising revenue. In fact, “the taxing power is often, very often, applied for other purposes[] than revenue.” 2 JOSEPH STORY, COMMENTARIES ON THE CONSTITUTION OF THE UNITED STATES § 962, p. 434 (1833), cited in NFIB, 132 S.Ct. at 2596. In United States v. Sanchez, 340 U.S. 42, 71 S.Ct. 108, 95 L.Ed. 47 (1950), the Supreme Court stated:
It is beyond serious question that a tax does not cease to be valid [under the taxing рower] merely because it regulates, discourages, or even definitely deters the activities taxed. The principle applies even though the revenue obtained is obviously negligible, or the revenue purpose of the tax may be secondary. Nor does a tax statute necessarily fall because it touches on activities which Congress might not otherwise regulate.
Id. at 44 (emphasis added; citations omitted). That view was reiterated in United States v. Kahriger, 345 U.S. 22, 73 S.Ct. 510, 97 L.Ed. 754 (1953), where the Court upheld “a tax on persons engaged in the businеss of accepting wagers,” id. at 23, notwithstanding the argument that “the sole purpose of the statute is to penalize ... illegal gambling in the states through the guise of a tax measure,” id. at 28, abrogated on other grounds by Marchetti v. United States, 390 U.S. 39, 88 S.Ct. 697, 19 L.Ed.2d 889 (1968). Because not all of Congress‘s exercises of the taxing power are primarily aimed at raising revenue, and a measure is a “Bill[] for raising Revenue” only if its primary purpose is to raise general revenues, some exercises of the taxing power are not subject to the Origination Clause. The Supreme Court‘s decisions in Nebeker and Millard confirm this рoint: Not all “taxes” are “Bills for raising Revenue.” See Nebeker, 167 U.S. at 202; Millard, 202 U.S. at 436-37.
In sum, under Supreme Court precedent, the presence of another constitutional power does not suggest that a provision is not a “Bill[] for raising Revenue,” and the absence of another constitutional power does not, in itself, suggest that it is. Because the existence of another power is not necessary (or sufficient) to exempt a bill from the Origination Clause, the mere fact that Section 5000A may have been enacted solely pursuant to Congress‘s taxing power does not compel the conclusion that the entire Affordable Care Act is a “Bill[] for raising Revenue” subject to the Origination Clause. Where, as here, the Supreme Court has concluded that a prоvision‘s revenue-raising function is incidental to its primary purpose, see NFIB, 132 S.Ct. at 2596, the Origination Clause does not apply. The analysis is not altered by the fact that the shared responsibility payment may in fact generate substantial revenues. In light of the Supreme Court‘s historical commitment to a narrow construction of the Origination Clause, this court can only hold that the challenged measure—whose primary purpose “plainly” was not to raise revenue,
Accordingly, we affirm the dismissal of the complaint for failure to state a cause of action.
Ronnie PAYNE, Appellant v. Patricia STANSBERRY, Warden, Appellee.
No. 11-5300.
United States Court of Appeals, District of Columbia Circuit.
Argued April 16, 2014. Decided July 29, 2014.
