Capitol Notebook: Obamacare Bill Advances In Senate, Personal Finance Bill Filed

The state Senate approved a healthcare related bill as debate over the issue was going on nearly 1,000 miles away at the United States Supreme Court.

Meanwhile, a bill that would help high school students understand how to pay for healthcare insurance was filed Wednesday.

Senators voted 25-0 to approve Senate Bill 343, sponsored by Sen. Jim Hendren, R-Sulphur Springs.

Hendren’s bill would “prohibit the implementation through state law of a state-based health insurance exchange in this state under the Patient Protection and Affordable Care Act … and the Health Care and Education Reconciliation Act of 2010 before the United States Supreme Court issues a ruling in King v. Burwell.”

Justices met in Washington, D.C. to hear both sides in the case. The main focus in the case is whether or not tax subsidies that are received by people in 37 states to buy insurance is constitutional, The Washington Post reported Wednesday.

Debate over the issue has centered over the words, “Established by the State” and how they are interpreted.

Michael A. Carvin, an attorney for the plaintiffs, said in his brief that the words should be interpreted definitely, the paper reported.

“It would certainly be convenient, for an agency seeking to rewrite a statute, if an English phrase can become a term of art on the government’s mere say-so,” Carvin said. “It cannot.”

However, Solicitor General Donald Verrili said in his brief that the law’s intent should be considered.

“Determining the meaning of a statute duly enacted by Congress, particularly a statute as consequential as this one, by focusing on isolated phrases divorced from textual cross references, definitions and context – and with no regard for the statute’s structure and design – does not respect the rule of law,” Verrilli said.

Justices are expected to make a decision by the end of June, which coincidentally, is the end of the state’s current fiscal year.

INTENT OF BILL
In addition to the ban on implementing the exchange until a decision is made by justices, the bill also places a decision on the issue in the hands of the legislature.

“If a ruling in King v. Burwell modifies the eligibility requirements for subsidies in a health insurance exchange …., a state-based health insurance exchange should not be implemented in this state without the legal authority to establish and operate an exchange under state law and the approval of the General Assembly,” the bill noted.

The bill also has provisions if the court rules in favor of the Obama administration.

If the court allows for subsidies for a state exchange but not a federal one, the decision on implementing one would be decided by a “future act of the General Assembly.”

If the court allows for subsidies for “a state-based health insurance exchange and a health insurance exchange operated by the federal government, then the authority of the Arkansas Health Insurance Marketplace to implement a state-based health insurance exchange shall not be affected.”

Senate Bill 343 now heads to the House, where it was referred Wednesday to the House Insurance and Commerce Committee.

Hendren said Wednesday afternoon that he was happy to see the bill approved in the Senate.

Hendren, who also serves as Senate Majority Leader, called the bill a “responsible approach” and that the court case in the nation’s capital could have a huge effect on a large number of people.

However, Hendren said whatever happens, the bill “makes it clear” that the legislature will have a say on the issue.

PERSONAL FINANCE BILL FILED
The need for high school students to learn the basics of filling out a loan application or balancing a checkbook was the reason behind a bill that was filed Wednesday.

“It was the observation that our young people need some sort of financial literacy,” said Rep. Warwick Sabin, D-Little Rock, who filed House Bill 1622.

The bill would require students to have a course in personal finance as a requirement to graduate from high school; and would teach issues like creating a household budget, maintaining a checking account, consumer finance, debt and credit management as well as insurance and taxes.

The Department of Education, with the Department of Workforce Education, would be charged with creating the course content for the classes.

Sabin said he and his cosponsor, Sen. Alan Clark, R-Lonsdale, have worked on the issue on a non-partisan basis for several weeks to craft the bill.

Sabin, who has worked on economic development related issues in the past, said students often do not understand the real world once they receive their diploma.

He said students are often inundated with offers to get a credit card once they go to college and face student debt once they graduate.

A similar bill was introduced by Sabin in the 2013 session, but there was some resistance by education officials over adding another class to the school day.

Sabin said he believes those concerns have been addressed in the new bill.

The bill was referred to the House Education Committee Wednesday.

Sabin has also filed two bills this session that have become law.

One bill, House Bill 1235 or Act 164, would allow businesses to use converted debt for equity; while House Bill 1278, or Act 281, would redefine how the state considers experience in the bidding process for state projects.

Sabin said under Act 281, a person’s experience in an industry would also be considered.

“For instance, a person may have years of experience but the state would have required four or five years which is the age of the company,” Sabin said of the older law, noting a person who had 20 years of experience but only owned a company for three years would not have been eligible for projects.

FLOOR ACTION
The House voted 54-32 to approve a bill Wednesday that would allow the state to enter into a compact for a balanced budget.

Rep. Nate Bell, R-Mena, who sponsored House Bill 1006, said the bill was needed to help force federal lawmakers to control federal spending.

Bell cited the nation’s $18 trillion debt as a reason for the compact, which would have to be approved by 38 states before moving forward with the plan.

However, Rep. Jana Della Rosa, R-Rogers, said the bill was the wrong approach and did not take into account the issue of emergencies.

The bill now heads to the Senate.