News/Events

Says, ‘without the individual mandate in place, Obamacare cannot be upheld and is unconstitutional’

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge applauded U.S. District Court Judge Reed O’Connor of Texas for agreeing with Arkansas, as part of a 20-state coalition, that the Affordable Care Act and its individual mandate are unconstitutional.

“The ruling is a big win for Arkansans,” said Attorney General Rutledge. “Without the individual mandate in place, Obamacare cannot be upheld and is unconstitutional. Now, it is time for Congress to increase options, lower costs and protect those with pre-existing conditions."

In February, the 20-state coalition filed a lawsuit challenging the constitutionality of Obamacare, explaining that Congress rendered all of Obamacare unconstitutional by doing away with the tax penalty in Obamacare’s individual mandate when it enacted President Donald J. Trump’s tax overhaul.

In 2012, a majority of the Supreme Court upheld Obamacare against a constitutional challenge and held that the individual mandate was a valid exercise of Congress’s Tax Power under Article I, § 8 of the U.S. Constitution. But a different majority also held that Congress did not have the power to create the Individual Mandate under the Commerce Clause of the U.S. Constitution, also in Article I, § 8. As Chief Justice Roberts explained, and the four-justice dissent agreed, the Commerce Clause gives Congress to regulate commerce – but not to compel it, which is what the individual mandate does.

In 2017, Congress eliminated the tax portion of the Individual Mandate. Because of this, Judge O’Connor ruled that it was no longer valid under Congress’s Tax Power. Applying the Supreme Court’s 2012 holding that the individual mandate violated the Commerce Clause, Judge O’Connor struck it down as unconstitutional. He then ruled that Congress would not have passed Obamacare without the individual mandate because it was an essential part of the law. So he also invalidated the entire law.

In its current unlawful form, Obamacare imposes and transfers rising costs on Arkansans and transferred an enormous amount of regulatory power to the federal government. Around 70 percent of U.S. counties present citizens with a noncompetitive situation, having only one or two health insurers.

In addition to Arkansas, the coalition – led by Texas and Wisconsin – includes the attorneys general of Alabama, Arizona, Florida, Georgia, Indiana, Kansas, Louisiana, Missouri, Nebraska, North Dakota, South Carolina, South Dakota, Tennessee, Utah and West Virginia, along with the governors of Maine and Mississippi.

Says, ‘This settlement has not been properly vetted’

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today announced she is asking the Arkansas Public Service Commission to review a pending settlement agreement between Entergy Arkansas LLC, the Sierra Club and the National Parks Conservation Association to determine if the settlement is in the public interest. The settlement agreement would require Entergy to speed up the closing of power plants that it co-owns with Arkansas Electric Cooperative Corporation and number of municipally-owned electric utilities. The early closure of these plants could raise rates and affect service for over 1.2 million Arkansans served by Entergy and by electric cooperatives, as well as tens of thousands of customers served by municipal electric utilities.

Attorney General Rutledge has also petitioned the U.S. District Court for the Eastern District of Arkansas to intervene in the case as a representative of Arkansas utility ratepayers, to protect the interest of ratepayers and inform the federal court that Entergy’s actions should first be reviewed by state regulatory authorities.

“The terms of the settlement between Entergy and the Sierra Club will directly impact Arkansans’ utility bills,” said Attorney General Rutledge. “This settlement has not been properly vetted by the Public Service Commission, my office or other agencies that have the public’s interest at heart. Because of the potential negative impacts on Arkansas citizens and businesses, I am seeking an investigation by Entergy’s state regulator, the PSC, and intervention in federal court to ensure that the State’s interest and those of its citizens and businesses are adequately protected.”

The complaint filed in Sierra Club v. Entergy alleges violation of the Clean Air Act at Independence Steam Electric Station and White Bluff Steam Election Station. The settlement agreement commits Entergy to a number of actions that would impact plant operations at both locations over the next decade. The costs of those actions will ultimately be borne by Arkansas utility ratepayers.

Says, ‘Identity theft is a scary reality for all of us’

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today announced that she has joined with 42 other states and the National Association of Attorneys General to send a letter to the Social Security Administration asking the acting commissioner to prioritize the implementation of a congressionally approved new database system that will help combat synthetic identity theft.

“As the enforcer of Arkansas’s privacy laws, every day I see the damage done to Arkansans who have been the victims of identity theft,” said Attorney General Rutledge. “I am pleased to join with my colleagues from across the country urging the Social Security Administration to accelerate the creation of a database that will be used by financial institutions to verify the consumer’s information and prevent identity theft. Identity theft is a scary reality for all of us, but this is a simple solution to close a loop hole for Americans.”

“We ask you to evaluate and make necessary modifications to the Social Security Administration database and systems to comply promptly with this new provision of federal law. As enforcers of the data breach laws in our jurisdictions, we see the impact that exposure of Social Security numbers can have. Our residents lose thousands of dollars a year and suffer from ruined credit scores, as well as a general sense of anxiety regarding their identities,” the attorneys general wrote in the letter.

Earlier this year, Congress passed a law directing the Social Security Administration to develop a revamped database that will verify consumer information at the time it is requested, with consumer consent. The improved database will help address “synthetic identity theft,” in which identity thieves use real Social Security numbers, along with fictitious names and birthdates, to manufacture identities. As the current system does not allow financial institutions to check identity on a real-time basis, the new database system would protect vulnerable consumers by preventing identity theft earlier.

Says, ‘More than 200 consumers have experienced financial losses’

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge obtained a judgment against NuCold Refrigeration Inc. and the owner, Jerry Collins of Plumerville, based on allegations that NuCold failed to provide goods or services after consumers had already paid, provided defective goods and failed to deliver goods or services by the promised date. NuCold also conducted business under the names of RV Fridge House and RV Icebox.

“More than 200 consumers have experienced financial losses by NuCold, Collins and his businesses,” said Attorney General Rutledge. “Impacted consumers can be relieved to know that Collins and NuCold are being held responsible for unacceptable business practices. As the chief legal officer in the state, I am dedicated to protecting Arkansans from these types of deceptive business practices."

The judgment, which was filed in Pulaski County Circuit Court, orders NuCold and Jerry Collins to pay $81,454.44 in restitution to consumers. Collins must also pay $10,000 in civil penalties for each violation, totaling $1,550,000. NuCold’s business license has been revoked and Collins has been barred from working in recreational vehicle refrigerator repair in the future.

Rutledge filed a consumer-protection lawsuit against NuCold in December 2016 after receiving a number of consumer complaints. This concludes a multi-year investigation into NuCold.

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today announced her support of President Donald J. Trump’s nominee for U.S. Attorney General William Barr.

“William Barr has a proven track record as the former Attorney General under President George H.W. Bush,” said Attorney General Rutledge. “Barr is a committed public servant. In addition to work with the Department of Justice, he served in the Central Intelligence Agency and on the domestic policy staff at the Reagan White House. Barr’s experience and values make him the right fit for Attorney General.”