Justia Government & Administrative Law Opinion Summaries

Hospitals that are disadvantaged by their geographic location may reclassify to a different wage index area for certain Medicare reimbursement purposes by applying for redesignation to the Medicare Geographic Classification Review Board. Section 401 of the Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999, enacted 10 years after the Board was established, creates a separate mechanism by which qualifying hospitals located in urban areas “shall [be] treat[ed] . . . [as] rural” for the same reimbursement purposes. To avoid possible strategic maneuvering by hospitals, the U.S. Department of Health and Human Services issued a regulation providing that hospitals with Section 401 status cannot receive additional reclassification by the Board on the basis of that status, 42 C.F.R. 412.230(a)(5)(iii) (Reclassification Rule). Geisinger, a hospital located in an urban area, received rural designation under Section 401 but was unable to obtain further reclassification by the Board pursuant to the Reclassification Rule. Geisinger sued. The district court upheld the regulation. The Third Circuit reversed, finding that Section 401 is unambiguous: HHS shall treat Section 401 hospitals as rural for Board reclassification purposes, 42 U.S.C. 1395ww(d)(8)(E)(i) View "Geisinger Cmty. Med. Ctr. v. Sec'y United States Dep't of Health & Human Servs." on Justia Law

Appellants Larry Savage, Richard Pellegrino, and Tucker Hobgood challenged a trial court’s validation of revenue bonds that will be used to help finance a new stadium in Cobb County for the Atlanta Braves major league baseball team. The bonds for the stadium project were to be issued pursuant to an intergovernmental agreement between Cobb County and the Cobb-Marietta Coliseum and Exhibit Hall Authority, under which the Authority agreed to issue bonds to cover much of the cost of constructing the stadium and the County agreed to pay amounts sufficient to cover the bond payments not covered by the licensing fees paid by the team. In consolidated appeals, the Supreme Court concluded that the intergovernmental contract was valid; that the issuance of the bonds would not violate the Georgia Constitution’s debt limitation clause, gratuities clause, or lending clause or Georgia’s revenue bond laws; and that the process used to validate the bonds was not deficient. The Court therefore affirmed the trial court’s judgment validating the stadium project bonds. View "Savage v. Georgia" on Justia Law

The Georgia Supreme Court granted a discretionary appeal of Elbert County, its Board of Commissioners, and the County Manager (collectively, “the County”) of a superior court order that, inter alia, granted a declaratory judgment to the effect that the Elbert County Solid Waste Disposal Ordinance was unconstitutional, denied the County’s motion to dismiss, and issued a writ of mandamus requiring the County to reasonably consider the site proposed by Sweet City Landfill, LLC and its members for a solid waste landfill. Taking each of the County's contentions of error in turn, the Supreme Court concluded the trial court erred in its decision as to all. The case was remanded therefore for further proceedings. View "Elbert County v. Sweet City Landfill, LLC" on Justia Law

Greater Houston Partnership (GHP) is a nonprofit corporation providing economic development services to the City and other clients pursuant to quid pro quo contracts. A Houston area resident submitted to GHP a request seeking a copy of GHP’s check register. The resident claimed that GHP is an organization that spends or is supported in whole or in part by public funds, and therefore, GHP is subject to the Texas Public Information Act (TPIA) in the same manner as a governmental body. GHP did not disclose the requested information, claiming that it did not qualify as a “governmental body” under the TPIA because the public funds it received were compensation for services provided to the City of Houston pursuant to a contract. The Attorney General concluded that GHP was subject to the TPIA’s disclosure requirements. The trial court agreed, and the court of appeals affirmed the trial court. The Supreme Court reversed, holding that GHP is not a “governmental body” under the TPIA because it is not wholly or partially sustained by public funds. View "Greater Houston P’ship v. Paxton" on Justia Law

The Government Printing Office (GPO) received nine bids for a printing order. Colonial was the lowest bidder ($2,418,443.54); Fry was the second lowest ($2,502,545.05). Colonial was a small business. Under its Printing Procurement Regulation, GPO can award contracts only to “responsible” bidders. The contracting officer found Colonial non-responsible, considering previous late deliveries, and recommended an award to Fry. A purchase order issued to Fry. Colonial filed a protest with the Government Accountability Office, arguing that the responsibility determination should have been referred to the Small Business Administration (SBA) Certificate of Competency Program, 15 U.S.C. 637(b)(7), under which a “Government procurement officer” may not preclude a small business from being awarded a government contract due to non-responsibility without referring the matter to the SBA, which responded that “requirements of the COC program could, arguably, apply to GPO and other nonexecutive agencies.” The GAO found that GPO was not subject to the program and that the contracting officer had a reasonable basis for her determination of non-responsibility. The Claims Court held that GPO did not violate the referral requirements and that the GPO’s responsibility determination was not arbitrary. The Federal Circuit affirmed, holding that GPO is not required to refer responsibility determinations to the SBA. View "Colonial Press Int'l, Inc. v. United States" on Justia Law

Schell filed a qui tam suit under the False Claims Act, 31 U.S.C. 3729-3733, alleging Bluebird made false statements to the government to secure a three-year grant from the National Telecommunications and Information Administration of the U.S. Department of Commerce for increasing broadband accessibility in northern Missouri and retaliated against Schell, a former Bluebird employee, for reporting fraudulent or illegal conduct. The alleged fraud concerned a requirement for matching funds, changing the purpose of the grant, and disclosure of management. The Eighth Circuit affirmed the district court’s entry of summary judgment in Bluebird’s favor. Schell did not show that Bluebird knew that changes would be necessary and obscured the true information or otherwise presented their grant application with the mens rea the FCA requires. View "Schell v. Bluebird Media, LLC" on Justia Law

The DeSoto County School District entered into a contract with a private entity called the Mississippi High School Activities Association (“MHSAA”). The terms of the contract allowed MHSAA to decide whether School District students were eligible to play high school sports. In making its decisions, MHSAA applied its own rules and regulations, and neither the School District nor its school board had input into the process. In 2012, R.T. was a star quarterback for Wynne Public School in Wynne, Arkansas. His parents, the Trails, decided that a change of school districts would be in R.T.’s best interests, so in January 2013 they bought a house in Olive Branch and enrolled R.T. in Olive Branch High School. Their daughter was to remain in Wynne until the school year ended. MHSAA determined that R.T. was eligible to compete in spring sports and allowed R.T. to play baseball. MHSAA conditioned R.T.’s continuing eligibility on the Trails’ daughter also enrolling in the School District at the start of the 2013-2014 school year. But, because the Trails’ daughter did not want to leave her friends behind in Arkansas, the family decided that one parent would stay in Arkansas with their daughter, as they had done during the spring semester, and the other parent would move to Mississippi and remain with R.T. On the eve of the 2013 football season, MHSAA notified the school and R.T. that, under its interpretation of its rules and regulations, R.T. was ineligible to play because it had determined that his family had not made a bona fide move to the School District. Neither the School District nor Olive Branch High School appealed through MHSAA’s internal procedure, so the Trails immediately filed a petition for a temporary restraining order (TRO) and preliminary injunction in the DeSoto County Chancery Court. The chancellor signed an ex-parte order granting the TRO and revoking MHSAA’s adverse eligibility determination. "While it generally is true that high school students have no legally protected right to participate in high school athletics,25 once a school decides to create a sports program and establish eligibility rules, the school—or as in this case, MHSAA—has a duty to follow those rules; and it may be held accountable when it does not do so. . . . And where, as here, the school delegates its authority to control student eligibility through a contract with a private entity, we hold that students directly affected by the contract are third-party beneficiaries of that contract. For us to say otherwise would run contrary to the very reason for extracurricular activities, which is to enrich the educational experience of the students." R.T. had standing to challenge MHSAA's eligibility decision that prevented him from playing high school sports. The Court affirmed the chancery court in this case, and remanded the case for further proceedings. View "Mississippi High School Activities Association, Inc. v. R.T." on Justia Law

PegaStaff, an agency that provides temporary staffing, provides staffing to Pacific Gas & Electric (PG&E), through a staffing agency with which PG&E directly contracted, initially Corestaff and later Agile. The California Public Utilities Commission (CPUC) adopted General Order 156 to implement Public Utilities Code Article 5, the purpose of which is to encourage and develop the use of women, minority and disabled veteran-owned business enterprises (WMDVBEs) within the public utility sector. PegaStaff is not a WMDVBE and after PG&E adopted a program to increase the utilization of WMDVBEs, its provision of staff to PG&E was substantially reduced. PegaStaff filed suit against the CPUC, PG&E, Corestaff and Agile, challenging the constitutionality of Article 5 and General Order 156. The trial court determined that it did not have subject matter jurisdiction, entered judgment in favor of the CPUC, and denied PegaStaff’s motion to transfer its claims. The court of appeal affirmed. PegaStaff was required to first exhaust its administrative remedies and it has not done so. View "PegaStaff v. Cal. Pub.Utils. Comm'n" on Justia Law

The National Institute on Drug Abuse (NIDA) within the National Institutes of Health issued Request for Proposal for the “NIH Pain Consortium Centers of Excellence in Pain Education Coordination Center.” NIDA initially issued the solicitation as a small business set-aside under North American Industry Classification System code 541712, “Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),” which limits offerors to small businesses with 500 employees or fewer. A prospective offeror appealed the NAICS code designation to the U.S. Small Business Administration Office of Hearings and Appeals, which ordered NIDA’s contracting officer to amend the solicitation to change the NAICS code designation to 541611, “Administrative Management and General Management Consulting Services.” Palladian sought to enjoin NIDA from accepting and evaluating proposals under the new code, which rendered Palladian ineligible to compete. The Court of Federal Claims granted Palladian’s motion for judgment on the administrative record, finding that the contracting officer’s NAICS code amendment was arbitrary and capricious because NAICS code 541611 did not best describe the statement of work for the solicitation. The Federal Circuit reversed, finding that Palladian failed to exhaust its administrative remedies. View "Palladian Partners, Inc. v. United States" on Justia Law

After Rio School District’s new school was completed, the District and its general contractor (FTR) engaged in a decade-long legal battle, resulting in a judgment for FTR exceeding $9 million. Public Contract Code section 7107 allows a public entity to withhold funds due a contractor when there are liens on the property or a good faith dispute concerning whether the work was properly performed. The trial court assessed penalties against District because it did not timely release the retained funds. The court of appeal affirmed in part. A dispute over the contract price does not entitle a public entity to withhold funds due a contractor; the doctrine of unclean hands does not apply to section 7107; the trial court properly rejected the District's action under the False Claims Act, Government Code section 12650 and properly assessed prejudgment interest, subject to adjustment for any extra work claims found untimely on remand. The trial court erred in its interpretation of a contract provision imposing time limitations to submit the contractor's claims for extra work as requiring a showing of prejudice and erred in awarding fees for work not solely related to FTR's section 7107 cause of action. View "East West Bank v. Rio School Dist." on Justia Law