`
`
`
`
`Samara Spence* (DC Bar No. 1031191)
`Jeffrey B. Dubner* (DC Bar No. 1013399)
`Sean A. Lev* (DC Bar. No. 449936)
`Democracy Forward Foundation
`P.O. Box 34553
`Washington, DC 20043
`sspence@democracyforward.org
`jdubner@democracyforward.org
`slev@democracyforward.org
`(202) 448-9090
`
`Counsel for Plaintiffs
`
`
`*pro hac vice application forthcoming
`
`
`
`
`
`
`
`
`
`
`
`James R. Williams (CA Bar No. 271253)
`Greta S. Hansen (CA Bar No. 251471)
`Douglas M. Press (CA Bar No. 168740)
`Lorraine Van Kirk (CA Bar No. 287194)
`Office of the County Counsel
`County of Santa Clara
`70 West Hedding Street, East Wing, 9th Fl.
`San José, CA 95110-1770
`lorraine.van_kirk@cco.sccgov.org
`(408) 299-5900
`
`Counsel for the County of Santa Clara
`
`Lisa S. Mankofsky* (DC Bar No. 411931)
`Matthew Simon* (DC Bar No. 144727)
`Center for Science in the Public Interest
`1220 L Street, NW, Ste. 300
`Washington, DC 20005
`lmankofsky@cspinet.org
`msimon@cspinet.org
`(202) 777-8381
`
`Counsel for Center for Science in the Public
`Interest
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`SAN JOSE DIVISION
`
`COUNTY OF SANTA CLARA, CALIFORNIA
`TRIBAL FAMILIES COALITION,
`NATIONAL ASSOCIATION OF PEDIATRIC
`NURSE PRACTITIONERS, AMERICAN
`LUNG ASSOCIATION, CENTER FOR
`SCIENCE IN THE PUBLIC INTEREST, and
`NATURAL RESOURCES DEFENSE
`COUNCIL,
`
`
`
`Case No. 5:21-cv-01655
`
`COMPLAINT FOR DECLARATORY
`AND INJUNCTIVE RELIEF
`
`Administrative Procedure Act Case
`
`
`
`Plaintiffs,
`
`
`
` vs.
`
`
`U.S. DEPARTMENT OF HEALTH AND
`HUMAN SERVICES and NORRIS
`COCHRAN, in his official capacity as Acting
`Secretary of Health and Human Services,
`Defendants.
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No. 5:21-cv-1655
`
`
`
`
`
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 2 of 50
`
`
`
`
`1
`
`2
`
`TABLE OF CONTENTS
`
`Page
`
`3
`
`INTRODUCTION ..................................................................................................................1
`
`PARTIES ................................................................................................................................4
`
`JURISDICTION AND VENUE .............................................................................................8
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`LEGAL AND STATUTORY BACKGROUND ...................................................................9
`I.
`The Administrative Procedure Act (“APA”)..................................................9
`II.
`The Regulatory Flexibility Act (“RFA”) .......................................................9
`FACTUAL ALLEGATIONS ...............................................................................................10
`I.
`HHS Regulates Healthcare, Disease Control, and Food and Drug Safety. ..10
`II.
`HHS Proposes Massive Deregulation of the Healthcare Industry in the
`Midst of a Pandemic, While Providing a Truncated Notice-and-Comment
`Period and Refusing to Consult with Indian Tribes. ....................................12
`a. HHS provides only 30 days for most comments, despite widespread
`concern that this was inadequate time to meaningfully respond to a
`proposal of this scope. ............................................................................15
`b. HHS refuses to consult with Indian tribes despite the proposal’s effect
`on tribal programs and tribal funding. ....................................................19
`Under the Final Sunset Rule, Approximately 17,200 Regulations Are Set to
`Expire in 2026, but the Rule Does Not Specify Which Ones. .....................20
`a. The final Rule requires that nearly all HHS regulations will expire
`unless HHS completes retrospective review for the thousands of
`affected regulations. ...............................................................................21
`b. The vague exceptions to the self-executing expirations make it
`impossible to determine which regulations have been amended and will
`expire without Assessment and Review. ................................................23
`The Sunset Rule is Unlawful, and the Department’s Purported Justifications
`Lack Basic Rationality. ................................................................................24
`a. The Sunset Rule schedules elimination of regulations regardless of their
`impact on small entities and without RFA review or considerations
`required under substantive statutes and the APA ...................................24
`b. The Sunset Rule is arbitrary and capricious because, among other
`reasons, it purports to “incentivize” the Department to review
`regulations at an infeasible pace HHS has never achieved by eliminating
`regulations relied upon by the general public. .......................................27
`The Sunset Rule Harms Plaintiffs and the General Public. . ........................32
`a. County of Santa Clara ............................................................................34
`b. California Tribal Families Coalition ......................................................35
`c. National Association of Pediatric Nurse Practitioners ...........................37
`
`III.
`
`IV.
`
`V.
`
`28
`
`
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`ii
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 3 of 50
`
`
`
`
`
`
`d. American Lung Association ...................................................................38
`e. Center for Science in the Public Interest ................................................40
`f. Natural Resources Defense Council .......................................................41
`
`CLAIMS FOR RELIEF .......................................................................................................43
`
`COUNT ONE ...........................................................................................................43
`
`COUNT TWO ..........................................................................................................44
`
`COUNT THREE ......................................................................................................44
`
`COUNT FOUR ........................................................................................................45
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`PRAYER FOR RELIEF .......................................................................................................46
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`iii
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 4 of 50
`
`
`
`
`1
`
`Plaintiffs the County of Santa Clara, California Tribal Families Coalition, National
`
`2
`
`Association of Pediatric Nurse Practitioners, American Lung Association, the Center for
`
`3
`
`Science in the Public Interest, and Natural Resources Defense Council (collectively,
`
`4
`
`“Plaintiffs”), by and through undersigned counsel, hereby allege as follows:
`
`5
`
`6
`
`INTRODUCTION
`
`1.
`
`Plaintiffs bring this action under the Administrative Procedure Act
`
`7
`
`(“APA”), 5 U.S.C. § 500 et seq., and the Regulatory Flexibility Act (“RFA”), 5 U.S.C.
`
`8
`
`§ 601 et seq., to challenge a final rule recently issued by the U. S. Department of Health
`
`9
`
`and Human Services (“HHS” or “Department”) entitled “Securing Updated and Necessary
`
`10
`
`Statutory Evaluations Timely,” 86 Fed. Reg. 5694 (Jan. 19, 2021) (“Sunset Rule” or
`
`11
`
`“Rule”). Under the guise of an RFA plan for periodically reviewing preexisting
`
`12
`
`regulations that significantly impact small entities, the Sunset Rule amends nearly all HHS
`
`13
`
`regulations to include self-executing expiration dates. The Rule’s impact is vast and
`
`14
`
`unprecedented. Absent separate Department action, approximately 17,200 regulations will
`
`15
`
`“expire” in 2026, with additional regulations automatically terminating afterward.
`
`16
`
`2.
`
`HHS, together with its subagencies—such as the Centers for Disease
`
`17
`
`Control and Prevention (“CDC”), the Food and Drug Administration (“FDA”), and the
`
`18
`
`Centers for Medicare and Medicaid Services—administers a broad range of statutory
`
`19
`
`programs that impact nearly every aspect of the American healthcare system, food and
`
`20
`
`drug manufacturing, and social services systems. These programs operate pursuant to
`
`21
`
`regulations that govern, for example, health insurance, hospitals and clinics,
`
`22
`
`pharmaceuticals and vaccines, mental health treatment, Medicare and Medicaid, public
`
`23
`
`health emergency prevention and preparedness, food safety, protections for children and
`
`24
`
`the elderly, and much more. The affected healthcare sector alone accounts for nearly one-
`
`25
`
`fifth of the U.S. economy.
`
`26
`
`/ / /
`
`27
`
`/ / /
`
`28
`
`/ / /
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`1
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 5 of 50
`
`
`
`
`1
`
`3.
`
`HHS has issued regulations implementing its substantive statutes since its
`
`2
`
`inception in 1953. To date, HHS has approximately 18,000 regulations on the books,
`
`3
`
`covering everything from ventilators to the privacy of personal and heath information.
`
`4
`
`4.
`
`The Sunset Rule, which was proposed and finalized entirely during the
`
`5
`
`outgoing administration’s lame-duck period, amends nearly all HHS regulations to add
`
`6
`
`self-executing expiration dates. Under the Rule, the vast majority of the Department’s
`
`7
`
`existing regulations are set to expire automatically in 2026, with the remainder set to
`
`8
`
`expire over the following five years. The only way under the Rule to prevent expiration is
`
`9
`
`for HHS to conduct and finalize retrospective review of each regulation. This would
`
`10
`
`require a resource-intensive and time-consuming effort on par with full notice-and-
`
`11
`
`comment rulemaking, but at a pace 20 times faster than the Department has ever conducted
`
`12
`
`retrospective review in the past—all without any guarantee that the Department will
`
`13
`
`conduct such review. The Rule does not even specify which of the Department’s 18,000
`
`14
`
`existing regulations are exempted under the limited exceptions. In other words, the
`
`15
`
`outgoing administration planted a ticking timebomb set to go off in five years unless HHS,
`
`16
`
`beginning right now, devotes an enormous amount of resources to an unprecedented and
`
`17
`
`infeasible task.
`
`18
`
`5.
`
`The Rule creates incalculable costs and chaos. It schedules rescission of
`
`19
`
`thousands of the regulations that structure Plaintiffs’ highly technical operations and
`
`20
`
`obligations, delineate their and their members’ rights, and protect the populations they
`
`21
`
`serve. It directly harms Plaintiffs and the general public, including the elderly, children,
`
`22
`
`healthcare professionals, tribal governments and members, and anyone who needs medical
`
`23
`
`care, is affected by pandemics or disasters, or simply eats food.
`
`24
`
`6.
`
`The Sunset Rule, moreover, creates immediate uncertainty and instability
`
`25
`
`throughout the healthcare system at the very time that the public most needs clear
`
`26
`
`guidelines due to a global pandemic. Plaintiffs have no guarantee that HHS will complete
`
`27
`
`retrospective review on such a mass scale and must assume that any, or all, of the
`
`28
`
`regulations that affect them will disappear. Regulated entities and individuals, such as
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`2
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 6 of 50
`
`
`
`
`1
`
`hospitals and nurse practitioners, will be unable to plan their operations to the financial and
`
`2
`
`physical detriment of patients. All Plaintiffs will have to divert significant resources to
`
`3
`
`monitor the progress of each regulation that affects them and to attempt to stem the effects
`
`4
`
`of potential automatic expiration.
`
`5
`
`7.
`
`If the Rule takes effect, it will require substantial, and likely unachievable,
`
`6
`
`efforts on the part of HHS to prevent regulations from expiring. The resulting cost to
`
`7
`
`society is steep. To simply keep its existing regulatory framework, HHS and its
`
`8
`
`subagencies will need to redirect significant resources away from such vital work as
`
`9
`
`combatting the COVID-19 pandemic and protecting the country against future public
`
`10
`
`health emergencies.
`
`11
`
`8.
`
`The Sunset Rule violates the APA, the RFA, and the statutory authorities
`
`12
`
`underlying the Department’s original regulations.
`
`13
`
`9.
`
`First, the Rule was issued without procedures or tribal consultation required
`
`14
`
`by law. The Department promulgated the Rule after a rushed notice-and-comment period
`
`15
`
`that hundreds of commenters decried as providing inadequate time for them to
`
`16
`
`meaningfully participate. The limited public process was particularly problematic because
`
`17
`
`affected parties were asked to discern, and comment on (over the holidays, no less), the
`
`18
`
`impacts of a sweeping and vague proposal in the middle of a global pandemic, which was
`
`19
`
`appropriately the primary focus of their efforts. HHS also refused to consult with Indian
`
`20
`
`tribes, as required under HHS policy and the federal government’s tribal trust
`
`21
`
`responsibilities, despite the Rule’s significant and direct effects on tribes and funding for
`
`22
`
`tribal programs.
`
`23
`
`10.
`
`Second, the Sunset Rule is contrary to law and in excess of the
`
`24
`
`Department’s authority. It relies on the RFA, which by the Department’s own estimate
`
`25
`
`does not authorize review of 89% of the regulations amended. And it schedules
`
`26
`
`elimination of nearly all HHS regulations without consideration of the factors required by
`
`27
`
`that statute. It also expressly relies on the myriad HHS substantive statutes for authority,
`
`28
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`3
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 7 of 50
`
`
`
`
`1
`
`but in fact eliminates regulations required by those statutes and fails to address factors
`
`2
`
`mandated by those statutes and the APA.
`
`3
`
`11.
`
`Third, the Rule violates the APA’s prohibition against arbitrary and
`
`4
`
`capricious agency action. Among other things, the Department’s justification for the
`
`5
`
`Rule—to “incentivize” retrospective regulatory review—is irrational on its face. It
`
`6
`
`assumes without support that HHS can induce itself to increase its pace of review 20-fold
`
`7
`
`merely by imposing on the general public the severe consequence of losing needed
`
`8
`
`regulations. Moreover, the Department did not plausibly show that it can meet the
`
`9
`
`contemplated review schedule or meaningfully consider the harm and costs the “incentive”
`
`10
`
`would cause.
`
`11
`
`12.
`
`Plaintiffs respectfully request that the Court declare that the Sunset Rule
`
`12
`
`violates the APA because it was issued without procedures or consultation required by law,
`
`13
`
`is contrary to law, and is arbitrary and capricious. The Rule should be vacated and set
`
`14
`
`aside.
`
`15
`
`16
`
`13.
`
`Plaintiff County of Santa Clara (the “County”) is a charter county and
`
`PARTIES
`
`17
`
`political subdivision of the State of California, located in the Northern District of
`
`18
`
`California. The County is home to almost two million people who rely on the County to
`
`19
`
`provide essential healthcare services and to oversee regional public health. The County
`
`20
`
`owns and operates the County of Santa Clara Hospitals and Clinics, a network of safety-net
`
`21
`
`hospitals and medical clinics that provide specialized, preventative, primary, and routine
`
`22
`
`healthcare services, primarily to underserved patients. Together, the County’s public
`
`23
`
`hospitals and clinics serve nearly 200,000 individual patients per year. The County also
`
`24
`
`operates a Social Services Agency that provides a wide array of essential safety-net
`
`25
`
`services; an Emergency Medical Services Agency that accredits emergency responders and
`
`26
`
`oversees all 911 ambulance response countywide; a Behavioral Health Services
`
`27
`
`Department that provides mental health and substance use prevention and treatment
`
`28
`
`services to tens of thousands of patients each year; a health insurance plan called Valley
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`4
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 8 of 50
`
`
`
`
`1
`
`Health Plan; and a Public Health Department that is responsible for regional public health
`
`2
`
`services throughout Santa Clara County, including managing the County’s response to the
`
`3
`
`COVID-19 pandemic.
`
`4
`
`14.
`
`Plaintiff California Tribal Families Coalition (“CTFC”) is an Internal
`
`5
`
`Revenue Code (“IRC”) Section 501(c)(4) nonprofit membership association and an
`
`6
`
`“Indian organization” under the Indian Child Welfare Act. Its members are 42 federally
`
`7
`
`recognized sovereign tribes and 3 statewide tribal leader associations from across
`
`8
`
`California, and it is led by a 12-member Board of Directors chosen from among the duly
`
`9
`
`elected tribal leaders of CTFC’s member tribes. CTFC’s mission is to protect the health,
`
`10
`
`safety, and welfare of tribal children and families, which are inherent tribal governmental
`
`11
`
`functions and are at the core of tribal sovereignty and tribal governance. CTFC’s member
`
`12
`
`tribes are governments entitled under the Indian Self-Determination and Education
`
`13
`
`Assistance Act, Pub. L. No. 93-638, 88 Stat. 2203, to request that operation of, and funding
`
`14
`
`for, federal programs be transferred to tribal administration. CTFC’s member tribes are
`
`15
`
`affected by nearly all HHS programs. Among other things, they receive HHS funding for
`
`16
`
`operation of tribal health services and/or receive services directly from Indian Health
`
`17
`
`Services programs, substance abuse programs, and social programs, such as Temporary
`
`18
`
`Assistance for Needy Families. HHS regulations govern the member tribes’ funding for
`
`19
`
`and operation of such programs. One of CTFC’s core missions is to advocate for the
`
`20
`
`incorporation of tribal concerns into regulations, including HHS regulations of great
`
`21
`
`importance to its tribal members, such as regulations on healthcare, mental health,
`
`22
`
`substance abuse, programs for the elderly, child welfare, and foster care.
`
`23
`
`15.
`
`Plaintiff National Association of Pediatric Nurse Practitioners (“NAPNAP”)
`
`24
`
`is an IRC Section 501(c)(6) nonprofit professional membership association, representing
`
`25
`
`more than 8,000 healthcare practitioners, with 18 specialty practice issues groups and 53
`
`26
`
`chapters. It is the nation’s only professional association for pediatric nurse practitioners
`
`27
`
`and their fellow pediatric-focused advanced practice registered nurses, who are dedicated
`
`28
`
`to improving the quality of health care for infants, children, adolescents, and young adults.
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`5
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 9 of 50
`
`
`
`
`1
`
`NAPNAP’s members treat millions of patients a year in a wide variety of healthcare
`
`2
`
`settings, including pediatric offices, hospitals, specialty clinics, public or school-based
`
`3
`
`healthcare facilities, and others. They are regulated and affected by thousands of HHS
`
`4
`
`regulations under such programs as Medicaid and the Children’s Health Insurance
`
`5
`
`Program. NAPNAP’s mission is to empower pediatric-focused advanced practice
`
`6
`
`registered nurses and key partners to optimize child and family health.
`
`7
`
`16.
`
`Plaintiff American Lung Association (“ALA”) is an IRC Section 501(c)(3)
`
`8
`
`nonprofit voluntary health organization incorporated in the State of Maine, with its
`
`9
`
`principal place of business in Chicago, Illinois. One of ALA’s core missions is to advocate
`
`10
`
`for policies that improve the prevention and cure of lung disease and that improve the
`
`11
`
`quality of life of people living with lung disease. These include policies that reduce the
`
`12
`
`burden of asthma, expand access to affordable healthcare for patients with or at risk for
`
`13
`
`lung diseases, reduce tobacco use through tobacco regulation and cessation efforts, and
`
`14
`
`increase screening for those at high risk of lung cancer. ALA has spent substantial
`
`15
`
`resources advocating for such programs before HHS. For example, in 2015, ALA testified
`
`16
`
`at a hearing to urge HHS to expand Medicare coverage to include early detection computed
`
`17
`
`tomography (“CT”) scans for high-risk Medicare beneficiaries. ALA also works to
`
`18
`
`improve public education on HHS programs that benefit at risk populations. For example,
`
`19
`
`ALA generates and maintains a lung cancer screening toolkit that tracks coverage of and
`
`20
`
`barriers to low-dose computed tomography (“LDCT”) lung cancer screening under state
`
`21
`
`Medicaid fee-for-service programs. Similarly, ALA depends on HHS regulations
`
`22
`
`governing tobacco products, such as a 2016 regulation deeming e-cigarette subject to the
`
`23
`
`Tobacco Control Act, which significantly affects ALA’s Not On Tobacco program,
`
`24
`
`Freedom from Smoking program, and Lung Helpline cessation assistance service.
`
`25
`
`17.
`
`Plaintiff the Center for Science in the Public Interest (“CSPI”) is an IRC
`
`26
`
`Section 501(c)(3) nonpartisan nonprofit organization headquartered in Washington, DC,
`
`27
`
`with approximately 450,000 members. CSPI is independently owned and operated and is
`
`28
`
`not dominant in its field of public health advocacy. CSPI is a science-based consumer
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`6
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 10 of 50
`
`
`
`
`1
`
`advocacy organization that seeks to promote: (1) a healthy population with a reduced
`
`2
`
`burden of preventable disease, and (2) an equitable food system in which healthy,
`
`3
`
`sustainable food is accessible to all. CSPI values independence, scientific rigor, and
`
`4
`
`transparency. A core aspect of CSPI’s mission is ensuring that food, dietary supplements,
`
`5
`
`and drugs are safe and transparently labeled. The FDA, an HHS sub-agency, administers
`
`6
`
`several statutes relevant to this work, including the Federal Food, Drug and Cosmetic Act,
`
`7
`
`Pub. L. No. 75-717, 52 Stat. 1040 (codified as 21 U.S.C. § 301, et seq.); the Nutrition
`
`8
`
`Labeling and Education Act of 1990, Pub. L. No. 101-535, 104 Stat. 2353; the Dietary
`
`9
`
`Supplement Health and Education Act of 1994, Pub. L. No. 103-417, 108 Stat. 4325;
`
`10
`
`portions of the Patient Protection and Affordable Care Act (“ACA”), Pub. L. No. 111-148,
`
`11
`
`124 Stat. 119; the Food Safety Modernization Act, Pub. L. No. 111-353, 124 Stat. 3885;
`
`12
`
`and the Food Allergen Labeling and Consumer Protection Act of 2004, Pub. L. No. 108-
`
`13
`
`282, 118 Stat. 891.
`
`14
`
`18.
`
`Plaintiff Natural Resources Defense Council (“NRDC”) is an IRC Section
`
`15
`
`501(c)(3) national not-for-profit environmental and public health organization,
`
`16
`
`headquartered in New York City, with more than three million members and online
`
`17
`
`activists. One of NRDC’s core missions is to conduct advocacy and educate the public to
`
`18
`
`protect public health and the environment. In service of this mission, NRDC advocates for
`
`19
`
`health-protective regulations at FDA (including the regulation of food additives, 21 C.F.R.
`
`20
`
`§§ 170.3-180.37; bottled water, id. §§ 129.1-129.80; and antibiotics in animal agriculture,
`
`21
`
`id. §§ 556.1-556.770, 558.3-558.680) and HHS (including regulations that protect human
`
`22
`
`test subjects, 45 C.F.R. part 46). NRDC also educates its members and the public about
`
`23
`
`these and other HHS regulations.
`
`24
`
`19.
`
`Defendant United States Department of Health and Human Services
`
`25
`
`(“HHS” or “Department”) is a federal agency headquartered in Washington, DC, at 200
`
`26
`
`Independence Avenue, SW, Washington, DC 20201. HHS is an “agency” within the
`
`27
`
`meaning of the APA. 5 U.S.C. § 551(1). HHS is a cabinet-level department that
`
`28
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`7
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 11 of 50
`
`
`
`
`1
`
`encompasses several sub-agencies, including the CDC, FDA, Centers for Medicare and
`
`2
`
`Medicaid Services, Indian Health Service, and National Institutes of Health.
`
`3
`
`20.
`
`Defendant Norris Cochran is sued in his official capacity as the Acting U.S.
`
`4
`
`Secretary of Health and Human Services. His official address is 200 Independence
`
`5
`
`Avenue, SW, Washington, DC 20201.
`
`6
`
`7
`
`JURISDICTION AND VENUE
`
`21.
`
`This Court has subject matter jurisdiction over this action pursuant to 28
`
`8
`
`U.S.C. § 1331 because this action arises under federal law.1 The Court also has subject
`
`9
`
`matter jurisdiction pursuant to 5 U.S.C. § 611(a).
`
`10
`
`22.
`
`Venue is proper in this district pursuant to 28 U.S.C. § 1391(e)(1) because
`
`11
`
`Plaintiff County of Santa Clara resides in this district and there is no real property involved
`
`12
`
`in this action.
`
`13
`
`23.
`
`The Sunset Rule is a final agency action for which there is no other
`
`14
`
`adequate remedy in court. 5 U.S.C. § 704.
`
`15
`
`24.
`
`This Court has authority to grant the requested relief in this case pursuant to
`
`16
`
`the APA, 5 U.S.C. § 706, and the Declaratory Judgment Act, 28 U.S.C. §§ 2201-2202.
`
`17
`
`/ / /
`
`18
`
`/ / /
`
`19
`
`/ / /
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`
`1 Under 28 U.S.C. § 1331, this APA challenge is properly brought in the district courts
`because the vast majority of the regulations amended by the Sunset Rule fall under
`statutory provisions that have no specific direct-review provision. See Owner-Operators
`Indep. Drivers Ass’n v. Skinner, 931 F.2d 582, 585 (9th Cir. 1991) (district courts have
`jurisdiction over APA claims “unless Congress specifically maps a judicial review path”).
`However, Plaintiffs are also filing a “protective” petition for review in the U.S. Court of
`Appeals for the Ninth Circuit because certain regulations amended by the Rule are subject
`to provisions conferring initial jurisdiction on the courts of appeals. E.g., 21 U.S.C. § 360g
`(jurisdiction for challenges to the regulation of medical devices arises in the courts of
`appeals); see also Nat’l Fed’n of the Blind v. U.S. Dep’t of Transp., 827 F.3d 51, 58 (D.C.
`Cir. 2016) (parties should “file suit in both the court of appeals and the district court” when
`there is doubt as to the proper forum). Plaintiffs intend to ask the Ninth Circuit to hold the
`petition in abeyance pending the resolution of this case.
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`8
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 12 of 50
`
`
`
`
`1
`
`2
`
`3
`
`LEGAL AND STATUTORY BACKGROUND
`
`I.
`
`The Administrative Procedure Act (“APA”)
`
`25.
`
`The APA allows a person “suffering legal wrong because of agency action,
`
`4
`
`or adversely affected or aggrieved by agency action” to seek judicial review of that action.
`
`5
`
`5 U.S.C. § 702. Under the APA, courts must “hold unlawful and set aside agency action,
`
`6
`
`findings, and conclusions” that are “arbitrary, capricious, an abuse of discretion, or
`
`7
`
`otherwise not in accordance with law,” id. § 706(2)(A), “in excess of statutory jurisdiction,
`
`8
`
`authority, or limitations, or short of statutory right,” id § 706(2)(C), or “without observance
`
`9
`
`of procedure required by law,” id. § 706(2)(D).
`
`10
`
`11
`
`II.
`
`The Regulatory Flexibility Act (“RFA”)
`
`26.
`
`The RFA requires agencies to publish a “plan for the periodic review of the
`
`12
`
`rules . . . which have or will have a significant economic impact upon a substantial number
`
`13
`
`of small entities.” 5 U.S.C. § 610(a). The RFA does not authorize reviews of rules that
`
`14
`
`lack “a significant economic impact upon a substantial number of small entities.” See id.
`
`15
`
`§§ 602, 605, 610.
`
`16
`
`27.
`
`The purpose of RFA review is “to determine whether” covered regulations
`
`17
`
`“should be continued without change, or should be amended or rescinded, consistent with
`
`18
`
`the stated objectives of applicable statutes, to minimize any significant economic impact of
`
`19
`
`the rules upon a substantial number of []small entities.” Id. § 610(a).
`
`20
`
`28.
`
`In conducting review under the RFA, the agency “shall consider” five
`
`21
`
`statutory factors. Id. § 610(b). Those are: (1) the “continued need for the rule”; (2) the
`
`22
`
`“nature of complaints or comments” concerning the rule; (3) the “complexity of the rule”;
`
`23
`
`(4) the “extent to which the rule overlaps, duplicates or conflicts” with other rules; and (5)
`
`24
`
`the “length of time since the rule has been evaluated or the degree to which technology,
`
`25
`
`economic conditions, or other factors” affecting the rule have changed. Id.
`
`26
`
`/ / /
`
`27
`
`/ / /
`
`28
`
`/ / /
`
`
`
`
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`9
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 13 of 50
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`FACTUAL ALLEGATIONS
`
`I. HHS Regulates Healthcare, Disease Control, and Food and Drug Safety.
`
`29.
`
`HHS was established as a cabinet level department in 1953, when it was
`
`called the Department of Health, Education, and Welfare. Its name was changed to the
`
`Department of Health and Human Services in 1980. The mission of HHS is to provide
`
`services that benefit the health and well-being of Americans and by fostering advances in
`
`the science underlying medicine, public health, and social services.2
`
`30.
`
`HHS contains dozens of sub-agencies and offices, including the CDC, FDA,
`
`Centers for Medicare and Medicaid Services, Indian Health Service, Administration on
`
`10
`
`Community Living, Administration for Children and Families, and National Institutes of
`
`11
`
`Health.
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`31.
`
`HHS operates programs that affect every aspect of the U.S. healthcare
`
`system. These include, for example, the Medicare and Medicaid programs, which insure
`
`139 million Americans, including 36.6 million children; the Children’s Health Insurance
`
`Program, which insures over 7 million children; and the Healthcare.gov Insurance
`
`Marketplace, which enrolled nearly 8.3 million people in insurance plans in 2020 alone.
`
`32.
`
`HHS administers almost every major federal statute governing healthcare,
`
`including, for example, the Medicare and Medicaid provisions of the Social Security Act,
`
`Pub. L. No. 74-271, 49 Stat. 620, which include hospital health and safety requirements;
`
`the ACA, which governs health insurance; the Health Insurance Portability and
`
`Accountability Act (“HIPAA”), Pub. L. No. 104-191, 110 Stat. 1936, which governs
`
`privacy and portability of health information; and the Health Information Technology for
`
`Economic and Clinical Health Act, Pub. L. No. 111-5, 123 Stat. 115, which establishes
`
`programs for securing health information; in addition to the countless supplements and
`
`amendments to these statutes.
`
`26
`
`/ / /
`
`27
`
`28
`
`
`
`
`
`
`2 About HHS, https://www.hhs.gov/about/index.html (last visited Mar. 5, 2021).
`
`COMPLAINT FOR DECLARATORY AND
`INJUNCTIVE RELIEF - Case No 5:21-cv-01655
`
`
`10
`
`
`
`Case 5:21-cv-01655 Document 1 Filed 03/09/21 Page 14 of 50
`
`
`
`
`1
`
`33.
`
`Other HHS-administered statutes regulate the safety and contents of food,
`
`2
`
`medications, vaccines, and medical devices, and protect the public from tobacco products,
`
`3
`
`such as the Nutrition Labeling and Education Act; the Dietary Supplement Health and
`
`4
`
`Education Act; the Food Safety Modernization Act; the Food Allergen Labeling and
`
`5
`
`Consumer Protection Act; the Federal Food, Drug and Cosmetic Act, Pub. L. 75-717, 52
`
`6
`
`Stat. 1040; and the Family Smoking Prevention and Tobacco Control Act, Pub. L. No.
`
`7
`
`111-31, 123 Stat. 1776.
`
`8
`
`34.
`
`HHS agencies operate programs that for prepare for, respond to, and help
`
`9
`
`