Weisblatt, E., and S. Sear v. Gov. Wolf - No.

118 A.3d 1091, 632 Pa. 147
CourtSupreme Court of Pennsylvania
DecidedJune 19, 2015
Docket22 MAP 2013, 23 MAP 2013, 24 MAP 2013, 31 MAP 2013
StatusPublished
Cited by10 cases

This text of 118 A.3d 1091 (Weisblatt, E., and S. Sear v. Gov. Wolf - No.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weisblatt, E., and S. Sear v. Gov. Wolf - No., 118 A.3d 1091, 632 Pa. 147 (Pa. 2015).

Opinion

OPINION

Chief Justice SAYLOR.

These consolidated direct appeals concern Appellees’ efforts to resurrect a defunct state-run health insurance program.

*152 By way of essential background, this case involves challenges to amendments to the Fiscal Code, 1 which, inter alia, defines the powers and duties of the Department of Revenue and the Treasury Department relative to the disbursement or disposition of Commonwealth funds. See 72 P.S. § 2. In conjunction with annual appropriations processes, the General Assembly has employed omnibus amendments to the Fiscal Code, for many years, as the enabling mechanism for financing state government operations and various programs. See, e.g., Act of July 6, 2010, P.L. 279, No. 46 (encaptioned “Fiscal Code-Omnibus Amendments” and providing, inter alia,, for the implementation of the operating budget of the Commonwealth for the fiscal year 2010-2011).

Appellees were recipients of state-subsidized, low-cost health insurance via the adultBasic program, which was previously administered by the Department of Insurance and made available to certain qualifying adults in Pennsylvania. The program historically received the bulk of its funding from the proceeds of a 1998 multi-state master settlement agreement between forty-seven states—including the Commonwealth— and several major tobacco product manufacturers in the United States. 2

The allocation and distribution of funds received annually by the Commonwealth under this accord was initially administered outside of the Fiscal Code, via the Tobacco Settlement Act. 3 Per this enactment, such monies were deposited into a special fund denominated the Tobacco Settlement Fund (the “Fund”), see 35 P.S. § 5701.303(a) (repealed). The TSA also provided for appropriations calculated annually using defined formulas. See 35 P.S. § 5701.306(b) (repealed). As relevant here, thirty percent of the funds were allocated, collectively, to adultBasic and another health-related program which provides *153 medical assistance benefits for workers with disabilities, known as “MAWD.” See 35 P.S. § 5701.306(b)(1)(vi) (repealed).

Of particular significance to the present appeals, the TSA’s adultBasic provisions also specified:

Subsidization of the benefit package [of adultBasic] is contingent upon the amount of the appropriations to the program and limited to eligible adults.... Nothing under this section shall constitute an entitlement derived from the Commonwealth or a claim on any funds of the Commonwealth.

35 P.S. § 5701.1303(c) (emphasis added). 4

In the years after the passage of the TSA, in conjunction with the annual budget process and through the vehicle of the omnibus amendments to the Fiscal Code, the Legislature directed a series of one-time transfers of tobacco settlement monies from the Fund. 5 Such redirection was initially undertaken primarily in furtherance of health-related purposes, albeit ones outside the purview of the TSA. See supra note 5. 6 *154 As relevant to the present litigation, for purposes of fiscal years 2010-2011 and 2011-2012, the General Assembly again used modifications to the Fiscal Code to override the TSA’s requirements for tobacco settlement monies. The amendments in question were contained in the Act of July 6, 2010, P.L. 279, No. 46 (“Act 46”) (adding Sections 1715-M of the Fiscal Code, 72 P.S. § 1715-M), and the Act of June 30, 2011, P.L. 159, No. 26 (“Act 26”) (adding Section 1715-C of the Fiscal Code, 72 P.S. § 1715-C). One effect of the amendments was to divert tobacco settlement funds more generally to other fiscal priorities of the Commonwealth. For example, Act 46 required a transfer of $250,000,000 to the Commonwealth’s General Fund. See 72 P.S. § 1715-M(b)(5). 7 At least partially on account of the loss of essential funding, adultBasic ceased operations in February 2011. See N.T., Apr. 12, 2011, at Exh. P-5 (reflecting a termination notice provided to a previous adultBasic subscriber). 8

In March 2011, Appellees Cheryl Sears and seventy-four other former recipients of adultBasic (the “Sears Appellees”) filed an original-jurisdiction petition for review in the Commonwealth Court, styled as a class action. The petition and *155 amendments designated as respondents: the Governor of Pennsylvania and the Secretary of Budget (collectively, the “Executive Appellants”); the Senate, the House of Representatives, and various legislative leaders (the “Legislative Appellants”), and the Department of Treasury. As amended, the petition contended, inter alia, that the redirection of tobacco settlement monies under Acts 46 and 26 violated the TSA’s requirements for appropriation and allocation of tobacco settlement funds. See 35 P.S. § 5701.306. The petition also asserted that these enactments offended various provisions of the Pennsylvania Constitution governing legislative processes, including the general requirement that no bill shall be passed containing more than a single subject. See Pa. Const. art. III, § 3. Appellees sought declaratory, mandamus, and injunctive relief retroactively reestablishing the adultBasic program and reimbursing the program over two hundred million dollars.

In April 2011, Appellee Eric Weisblatt commenced a separate original-jurisdiction proceeding in the Commonwealth Court, also styled as a class action, proffering materially similar allegations and claims for relief, in the relevant respects. Appellee Weisblatt, however, named only executive-branch officials and agencies as defendants.

Appellees in both proceedings moved for a preliminary injunction to preclude the Treasury from disbursing the tobacco settlement monies which were due to be received that month as appropriated per Act 46. Relief was denied by the court, however, upon its finding that the harm asserted by Appellees was neither immediate nor irreparable. 9 See Sears v. Corbett, Nos. 121 & 157 M.D. 2011, slip op. at 11 (Pa.Cmwlth. Apr. 20, 2011) (single-judge memorandum). The court reasoned that the harm had already occurred, given the termination of the adultBasic program several months earlier, and moreover, the requested relief would not restore Appel-lees’ insurance or resurrect adultBasic. See Sears, Nos. 121 &

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118 A.3d 1091, 632 Pa. 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weisblatt-e-and-s-sear-v-gov-wolf-no-pa-2015.