Case 2:12-cv SLB Document 15 Filed 03/22/12 Page 1 of 21 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

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Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 1 of 21 FILED 2012 Mar-22 AM 08:40 U.S. DISTRICT COURT N.D. OF ALABAMA UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION STATE OF ALABAMA, by and through Luther Strange, Attorney General of the State of Alabama, LUTHER STRANGE, in his official capacity as Attorney General of the State of Alabama, Plaintiffs-Intervenors, ETERNAL WORD TELEVISION NETWORK, INC. Plaintiff, v. KATHLEEN SEBELIUS, Secretary of the United States Department of Health and Human Services, UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES, HILDA SOLIS, Secretary of the United States Department of Labor, UNITED STATES DEPARTMENT OF LABOR, TIMOTHY GEITHNER, Secretary of the United States Department of the Treasury, and UNITED STATES DEPARTMENT OF THE TREASURY, Defendants. 2:12-cv-00501-SLB THE STATE OF ALABAMA AND ATTORNEY GENERAL LUTHER STRANGE S MEMORANDUM OF LAW IN SUPPORT OF MOTION TO INTERVENE

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 2 of 21 INTRODUCTION The State of Alabama and its Attorney General Luther Strange request t o intervene as additional plaintiffs to prot ect and advance three compelling interests. First, the State seeks to preserve its ab ility to provide insurance coverage to its citizens in a mann er that is consistent with Alabama law and the right of conscience. Second, the State seeks to minimize the number of uninsured Alabama citizens for whom th e State bears the burden of providing healthcare. The federal regulation at the heart of this la wsuit thwarts both of these objectives. It mandates the type of health insurance that Al abama can offer on its state-run health insurance exchange and, if lawful, it pr eempts Alabama law guaranteeing citizens right of conscience. Moreover, the regul ation would force conscientious objectors to opt-out of the private health plans that currently cover them. The practical result of the regulation will thus be to increas e the num ber of persons that require healthcare from Medicaid and state-support ed hospitals. Lastly, t he Attorney General has statutory responsibilities to ensure that charitable institutions adhere to their purposes and bylaws and to advise state officers on how to conduct programs consistent with state and fe deral law. Because the federal mandate at issue in this lawsuit threatens to interfere with the mission of religious not-for-profits and because the result of this lawsuit will as a practical matter control the 2

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 3 of 21 administration of a state program, the Atto rney General has an interest in this litigation stemming from the prerogatives of his office. BACKGROUND Eternal World Television Network, Inc., ( EWTN, an Alabam a non-profit corporation with a charitable and religious purpose, filed this suit for declaratory and injunctive relief against certain o fficers and departm ents of the Federal Government. EWTN challenges the legality of regulations issued pursuant to the 2010 Affordable Care Act that require all group health plan[s] and... health insurance issuer[s] offering group or i ndividual health insurance coverage to provide all FDA-approved contraceptive methods and sterilization procedures. See 76 Fed. Reg. 46621 (published Aug. 3, 2011; 45 C.F.R. 147.130. EWTN argues that these regulations ( the Mandate v iolate the First Am endment to the United States Constitution, the Religious Freed om Restoration Act ( RFRA, 2 U.S.C. 2000bb et seq., and the Administrative Procedures Act, 5 U.S.C. 553. Alabama s government and people have a long tradition of respect for religious freedom and the right to cons cience. For the State s roughly 200-year history, Alabama s Constitution has declared in every iteration tha t the civil rights, privileges, and capacities of any citi zen shall not be in any manner affected by his religious principles. Ala. Const. art. I, sec. 3 (1901; Ala. Const. art. I, sec. 4 (1875; Ala. Const. art. I, sec. 4 (1865 ; Ala. Const. art I, sec. 6 (1861; Ala. 3

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 4 of 21 Const. art. I, sec. 6 (1819. And, in the 1998 election, Alabama voters ratified the Alabama Religious Freedom Amendment ( ARFA to the Constitution, which tracks the language and intent of the fe deral RFRA. Alabama is one of only a dozen states that have enacted such a la w, and it is the only state to have done so by an amendment to its constitution. Consistent with these principles, Alabama law does not mandate that insurers provide contraception or sterili zation coverage or th at any employer o r person purchase such covera ge. The pharmaceutical insurance coverag e article of the Alabama Code provides expressly that the article do[es] not mandate that any type of benefits for pharmaceutical services, including without limitation, prescription drugs, be provided by a health insurance policy or an employee benefit plan. Ala. Code 27-45-5. Instead, Al abama citizens enjoy the freedom to selfinsure, to contract for an insurance pl an that does not cover contraceptive and sterilization services, or to contract with a religious-affiliated insurer that does not offer coverage for these services in any of its available plans. The Patient Protection and Affordable Care Act of 2010 ( ACA provides for the creation of state-based Health Insurance Exchan ges that will allow consumers to acces s and evaluate hea lth insurance coverage options from commercial insurers, determine eligibility for federal subsidies, and enroll in health insurance coverage of their choice. Specifically, Section 1311 of the ACA requires 4

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 5 of 21 that [e]ach State shall, not later than January 1, 2014, establish an American Health Benefit Exchange ( Exchange that facilitates the p urchase of qualified health plans; [and] provides for the es tablishment of a Small Business Healt h Options Program ( SHOP Exchange that is designed to assist qualified employers in the State who are sm all employers in facilitating the enrollment of their employees in qualified health plans offered in the small group market in the State. Alabama is in the process of establis hing its Exchange. A working group of state officials made f ormal recommendations about the structure and nature of the Exchange to the Governor, which caused the Alabama Department of Insurance to establish an Office of the Alabama Health Insurance Exchange. See Gov. Bentley s Exec. Order No. 17 (June 2, 2011, att ached as Exhibit A; Alabama Health Insurance Exchange Study Co mmission Recommendations, Ala. Dept. of Ins. (Nov. 2011, attached as Exhibit B. The State is in the process of developing guidelines and regulations to govern the insurance plan s that will be listed on the anticipated Exchange. For exam ple, on February 23, 2012, the Office published a Request for Information to identify vendor s and contracting partners that can structure the program to best fit the State of Alabama. See Alabama Department of Insurance Office of t he Alabama Health Insurance Exchange (HIX, RFI Request Number: HIX2012-01 (Feb. 23, 2012, a ttached as Exhibit C. Additional legislative steps are being taken to esta blish the State s Exchange. House Bill 245 5

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 6 of 21 was recently introduced in the Alabama Legislature, and would create the Alabama Health Insurance Exchange. See Exhibit D. At the same ti me that the State is developing an Exchange, the State is experiencing budget shortfalls that lim it the amount and nature of healthcare that the State can provide to its citizens. Th e State currently funds hospitals that provide uncompensated care to indi viduals who are not covered by a health insurance plan. See 42 U.S.C. 1395dd (1 986 (requiring hospitals to provide emergency uncompensated care. For example, for the fiscal year of 2010 through 2011, the Hospital at the University of Alabama at Birmingham estimated that i t would receive $33,520,847 from state appropriations, but would spend much more than that, $246,130,722, prov iding uncompensated care. See The Un iversity of Alabama at Birm ingham FY 2010-2011 Oper ating Budget, at 43, attached as Exhibit E. Similarly, the State budgeted $502 million in fiscal year 2012 to provide health care to Alabama citizens who are eligible for Medicai d. See Alabama Dept. of Finance, State General Fund and Ea rmarked Funds Budget Summary, Medicaid Agency, attached as Exhib it F. For fiscal year 2013, however, the Governor proposed budget suggests that the Medicaid budget be reduced to $315 million. Id ARGUMENT The State of Alabama and its Attorn ey General should be perm itted to intervene in this lawsuit under Federal Ru le of Civil Procedure 24(a and (b. Rule 6

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 7 of 21 24(a provides the right to intervene when an applicant claims an interest relating to the property or transaction that is the subject of the action, and is so situated that disposing of the action may as a practical matter impair or impede the movant s ability to protect its interest, unless exis ting parties adequately represent that interest. Fed. R. Civ. P. 24(a. Rule 24(b provides permission to intervene when an applicant s claim or defense and the ma in action have a question of la w or fact in common and when the pending case tu administered by a federal or state govern rns on a statute or executive order mental officer or agency that seeks intervention. Fed. R. Civ. P. 24(b. I. The State Through Its Attorney General Has the Right To Intervene under Rule 24(a(2. The Court must permit a party to in tervene under Rule 24(a(2 when: (1 the motion is timely; (2 the party has an interest relating to the transaction which is the subject of the action; (3 the di sposition of the action may as a practical matter impair or impede the applicant s ability to protect that interest; and (4 the party s interest may not be adequately represented by existing parties. See Chiles v. Thornburgh, 865 F. 2d 1197, 1213 (11t h Cir. 1989. Rule 24(a is construed liberally in favor of potential interveners. Southwest Ctr. For Biological Diversity v. Berg, 268 F.3d 810, 818 (9th Cir. 2001. Any doubt concerning t he propriety of allowing interv ention should be resol ved in fa vor of the proposed 7

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 8 of 21 intervenors because it allows the court to resolve all related disputes in a single action. Federal Sav. & Loan Ins. Corp. v. Falls Chase Special Taxing Dist., 983 F.2d 211, 216 (11th Cir.1993. The State of Alabama through its Attorney General has the right to intervene under Rule 24(a(2. A. The motion to intervene is timely. This case is still in its early stages and the m otion to intervene is timely. EWTN s complaint was filed on February 9, 2012, and the Defendants have not yet filed a responsi ve pleading. The tim ing of t he motion to intervene is wellwithin the time period in whic h the Eleventh Circuit has approved of intervention. See, e.g., Chiles v. Thornburgh, 865 F. 2d 1197, 1213 (11t h Cir. 1989 (m otion filed seven months after complaint, three months after defendants file d motion to dismiss, and before a ny discovery had begun; Diaz v. Southern Dril ling Corp., 427 F.2d 1118, 1125-26 (5th Cir. 1970 (motion to intervene more than a year after the action was co mmenced was timely when there had been no legally signi ficant proceedings other than the compl etion of discovery and motion would not cause any delay in the process of the overall litigation. None of the current parties to the lawsuit could be prejudiced by the State and Attorney General s intervention at this early time. Chiles, 865 F.2d at 1214. B. The State has an interest in the subject matter of the action. 8

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 9 of 21 The State has a direct, substantial, legally protectable interest in th e proceeding. Chiles, 865 F.2d at 1214. The inquiry on this issue is a flexible one, which focuses on the particular facts a nd circumstances surrounding each [motion for intervention]. United States v. Perry C ounty Board of Education, 567 F.2d 277, 279 (5th Cir.1978 (quoti ng United States v. Alle gheny-ludlum Indus., Inc., 517 F.2d 826, 841 (5th Cir.1975, cert. denied, 425 U.S. 944, 96 S.Ct. 1684, 48 L.Ed.2d 187 (1976. An interv enor s interests need not... be of a legal nature identical to that of the claims asserted in the mai n action. Chiles, 865 F.2d at 1214. And a party seeking to intervene need not demonstrate that he has standing in addition to m eeting the requirem ents of Rule 24 as long as there exists a justiciable case and controversy between the parties already in the lawsuit. Id. at 1213. Accord Dillard v. Chilton County Com'n 495 F.3d 1324, 1337 (11th Cir. 2007 (per curiam; Loyd v. Alabama Dept. of Corrections, 176 F.3d 1336, 1339 (11th Cir. 1999. 1. The State has two interests that require intervention to protect. The State s interest in the subject matter of the litigation arises out of its role in creating an insurance ex change and providing health care to uninsure d Alabamians. Because of the Mandate, the St ate will not be able to make insurance available to its citizens or list insurance on its exchange if that insurance excludes contraception and sterilization services, re gardless of the State s i nterest in 9

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 10 of 21 providing that opt ion to it s citizens and regardless of Alabama citizens conscientious objection to subsidizing contraception and sterilization services. The subject matter of this dispute will affect the State in two ways. First, the Mandate lim its the State s ab ility to offer insurance options to its citizens on its exchange and re quires the State to structure its insurance exchange in ways that are likely to violate Al abama and federal la w. Like the federal Religious Freedom Restoration Act with re spect to the Federal Governm ent, the Alabama Constitution prevents the State from enforcing a statute, regulation, ordinance, administrative provision, ruling gui deline, requirement, or any statement of law whatever th at burden[s] a person s freedom of religion unless it is in furtherance of a com pelling government interest; and [i] s the least restrictive means of furtheri ng that compelling governmental interest. A LA. CONST., AMEND. 622. The Mandate, however, nece ssarily excludes insurers from the State s exchange if they do not offer contraceptive coverage, even if such plans are motivated by the religious principles of the insurer or the insured. Federal law requires that a state-run exchange can not establish rules t hat conflict with or prevent the application of other regulations, such as the Mandate, promulgated by HHS under the Affordable Care Act. See 76 Fed. Reg. 136, 41914 (to be codified at 45 C.F.R. 155.120(a (July 15, 2011. If the State refuses to incorporate the Mandate into the criteria it sets for its he alth care exchange, the United States will 10

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 11 of 21 reject and take over the State s program. Id. at 41913 (to be codified at 45 C.F.R. 155.105(f (If a State elects not to establish an Exchange, or its Exchange is not approved by HHS, HHS m ust establish and operate such Exchange within the State.. Because the Mandate requires a ll insurers to offer contraception and sterilization coverage, it also prevents the State from allowing contrary plans to list on the exchange as a practical matter. Second, the Mandate will impose direct costs on the State s healthcare system. The Mandate will induce certain religiously-motivated individuals and organizations like EWTN to drop insurance coverage, causing a net increase in the number of un-insured Alabama citizens. [T]he decision by the uninsured to forego insurance results in a co st-shifting scenario. Florida ex rel. Atty. Gen. v. U.S. Dept. of Health and Human Services, 648 F.3d 1235, 1244 ( 11th Cir. 2011. Thi s decline in coverage will shift the cost of providing m edical care to these newly uninsured citizens onto Medicaid and State-financed hospitals such as UAB, which must provide emergency care re gardless of ability to pay. See 42 U.S.C. 1395dd (1986 (requiring hospitals to provide uncompensated emergency care. 2. These are precisely the kind of interests that warrant intervention. The State s interests in the control of its proposed exchange and in state resources spent to provi de healthcare to citizens ar e substantial and warrant intervention. Although the Eleventh Circu it has held that an intervener does no t 11

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 12 of 21 have to establish standing, [t]he standing cases... are relevant to help define the type of interest that the intervenor must assert. Chiles, 865 F.2d at 1213. It is, therefore, powerful evidence of the sufficiency of the States interests that they are sufficient to confer standing on the State t o sue federal officers. Because the States have a legally protected interest in the exercise of sovereign power over individuals and entities within the relev ant jurisdiction, Alfred L. Snapp & Son, Inc. v. Puerto Rico ex rel. Barez, 458 U.S. 592, 601, 102 S.Ct. 3260 (1982, federal regulatory action that preempts state re gulation causes an injury-in-fact that satisfies Article III. See Wyoming v. United States, 539 F.3d 1236 (10th Cir. 2008; Texas Office of Pub. Util. Co unsel v. FCC, 183 F.3d 393, 409 (5th Cir.1999; Alaska v. U.S. Dep't of Transp., 868 F.2d 441, 443 (D.C. Cir. 1989; Ohio ex rel. Celebrezze v. U.S. Dep't of Transp., 766 F.2d 228, 232-33 (6th Cir. 1985. Similarly, a state has standing to challe nge federal action that imposes additional costs on state program s. See, e.g., Chiles v. United States, 69 F.3d 1094, 1096 (11th Cir. 1995 (State of Fl orida had standing to sue United States Attorney General over her failure to enforce immigration laws which caused Florida to incur expenses in educating and providing other public services to unlawful aliens. Courts have specifically held that the governmental interests at issue here are sufficient to support a state s intervention in a suit like this one that challenges regulations promulgated by the HHS Secretary. In two cases in the 1980s, separate 12

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 13 of 21 district courts held that the states of New York and Massachusetts had the right t o intervene in private lawsuits against th e Secretary of HHS, which challenged the legality of a social security regulation. See Dixon v. Heckler, 589 F.Supp. 1512 (D.C.N.Y. 1984; Avery v. Heckler, 584 F.Supp. 312 (D. Mass. 1984. These courts explained that the regulation s effect on th e states social security programs was a sufficient basis for intervention: The first interest asserted by the Stat e arises out of its responsibility for making disability determinations and the t hreat of a possibl e federal take-over of the State s program if it refuses to follow regulations it believes to be illegal. Such an interest appears more than adequate to support intervention. Id. at 1515-16. Accord Avery, 584 F.Supp. at 316 (hol ding that Massachusetts could intervene to challenge regulations because the Secretary promulgates regulations, which the Co mmonwealth implements. The courts also held in the alternative that the states eco nomic interest in the proper adm inistration of the program was another interest sufficient to support intervention as of right: The State also relies upon its econom ic interest in the proper administration of the federal disa bility programs, contending that disabled individuals who are denied benefits because of the Secretary s unlawful regulations are compelled to turn to state and local public assistance program s upon which they would otherwise not have to depend.... [T]he Stat e s economic interest in the proper administration of federal disability benefits is adequate to support intervention. Id. Accord Avery, 584 F. Supp. at 316 ( the Co mmonwealth possesses such an interest, a proprietary interest, to wh ich we alluded above, in m inimizing the 13

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 14 of 21 number of terminated social security beneficiaries on its welfare rolls. Just as the states of Massachusetts and New York were authorized to intervene in private suits against HHS in the 1980s, the State of Al abama has an interest that justi fies intervention in this suit against the new HHS Mandate. C. The resolution of this lawsuit will affect the State s interests. The State s interests will be affected by the resolution of this suit. If a nonparty will be affected in a pra ctical sense by the determination made in an action, he should, as a general rule, be entitled to intervene. Fed. R. Civ. P. 24, advisory committee note to 1966 amendment. The judgment in this case will affect the State in several ways, the foremost of which is that the judgment will determine whether the employees of EWTN and or similarly situated parties will be able to remain on their current insurance or whether they will go uninsured. As explained above, an increase in the number of uninsured Alabam ians will directly affect the State s bottom line. See Chiles, 69 F.3d at 1096; Avery, 584 F. Supp. at 316. The judgment in this case is also likely, as a practi cal matter, to gove rn federal officials enforcement of the Mandate in Alabama. The potential negative stare decisis effect of an adverse judgment in this case supplies an additi onal practical disadvantage which warrants intervention of right. Stone v. First Union Corp., 371 F.3d 1305, 1310 (11t h Cir. 2004 (quoti ng Chiles, 865 F.2d at 1241. Although a[nother] dist rict court would not be bound t o follow [this] district 14

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 15 of 21 court s determination, the decision woul d have si gnificant persuasive effects, which are sufficiently signific ant to warrant intervention. Id. at 1310. The State has the right to intervene to protect its interests. D. The State s interest is not adequately represented by EWTN. Although EWTN is well-represente d by com petent attorneys who will vigorously pursue it s lawsuit, EWTN does not adequately represent the State s interests in this litigation. Rule 24 is satisfied if the applicant shows that the representation may be inadequate, so th at the applicant s burden on this matt er should be minimal. Trbovich v. United Mine Workers of America, 404 U.S. 528, 538 n.10 (1982. Since the rule is satisfied if there is a serious possibil ity that the representation may be inad equate, all reasonable doubts should be resolved i n favor of a llowing the absentee, who has an interest different from that of any existing party, to intervene so that the absentee may be heard in his own behalf. 7C Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure 1909 (3d ed. 2011. Even though EWTN and the State bot h oppose the Mandate, EWTN does not adequately represent the interests of the State. See Meek v. Metropolitan Dade County, Fla., 985 F.2d 1471, 1478 (11t h Cir. 1993 (private intervenor s interest not represented by governm ental party who was required t o balance a range of interests likely to diverge from those of the intervenors. EWTN has no interest in 15

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 16 of 21 protecting the publi c fisc from increasing num bers of uni nsured Alabamians nor does it have an interest in the State s freedom to operate its Exchange. This divergence in interests will have a v ery real effect on the difference between EWTN s and the State s litigation objectives. For example, EWTN s interest in the case may be satisfi ed if EWTN is given the freedom to refuse to sponsor an insurance plan that requires contraception coverage without also paying the ACA s penalties for failing to provide health insurance to its employees. But that judgment would not satisfy either of the State s interests. The State would still not be free to regulate its insurance exchange without complying with the Mandate. And, if EWTN were allowed to drop it s health insurance coverage without payi ng a fine, the State would still be faced with the cost of providing health care to the uninsured employees of EWTN and other similarly-situated persons in either Statesubsidized emergency room s or throug h Medicaid. EWTN does not adequately represent the State s interests. II. The State and Attorney General Should Be Permitted to Intervene under Rule 24(b. Even if this Court believes that the St ate is not entitled to intervene as of right, the State and Attorney General shoul d still be perm itted to intervene under Rule 24(b. A party seeking to i ntervene under Rule 24(b must show that: (1 his application to intervene is timely; and (2 his claim or defense and the main action have a question of law or fact in common. See Chiles, 865 F.2d at 1213. Rule 24(b 16

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 17 of 21 also provides that the court may permit a federal or state governmental officer or agency to intervene if a party s claim or defense is based on (A a statute or executive order administered by the officer or agency; or (B any regulation, order, requirement, or agreement issued or m ade under t he statute or executive order. Fed. R. 24(b(2. In other words, a publ ic official may intervene when an aspect of the public interest with w hich he is officially concerned is involved in the litigation. Nuesse v. Camp, 385 F.2d 694, 706 (D.C. Cir. 1967. Alabama s complaint in intervention poses numerous questions of law and fact that are in common with the main action. The constitutionality of the Mandate and whether it co mplies with the federa l RFRA and the Ad ministrative Procedure Act are two such common leg al issues. That these common questions are of broad public concern strongly favors intervention. See Meek v. Metropolitan Dade County, Fla., 985 F.2d 1471, 1479-80 (11th Cir. 1993 ( T he substantial public interest at stake in the case is an unusual circum stance militating in favor of intervention.. Moreover, the State s officers must c onform the state-run Exchange to the Mandate consistent with the federal RFRA and the C onstitution of Alabama. Th e Attorney General is charged with advisi ng state agencies about how to accomplish that task, which will require the Attorney General to determine whether state law allows active participation in a federal pr ogram that does not respect the right to 17

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 18 of 21 conscience. The Attorney Gene ral also has a special interest in the effect of th Mandate on religious not-for-profits becaus e he is charged by state law with th e e supervision of such charities. See, e.g., ALA. CODE 10A-3-7.07, 08, 09; 19-3B- 110(d; 19-3C-6(c; Neal v. Neal, 856 So.2d 766, 780 (A la. 2002( the Alabama attorney general was the proper party and the only proper party to enforce the charitable or otherwi se beneficent purposes of the trust in the case before us ; Thurlow v. Berry, 247 Ala. 631, 639, 25 So.2d 726, 733 (Ala. 1946( It is assumed the Attorney General was p ermitted to intervene on the theory that [the] will provided for a publi c charity. ; 1 Relig ious Organizations and the Law 5:36 ( Today all states, either by statute or by case law, follow the rule that the Attorney General, or another similar state official, such as a county attorney, has supervisory powers over charitable entities.. As a c onsequence of the obligation of th e Attorney General to resolve those questi ons with the aid of this Court, he should be permitted to intervene. Miami Health Studios, Inc. v. City of Miami Beach, 491 F.2d 98, 100 (5th Cir. 1974 (reversing lower court for denying motion of Attorney General to intervene on behalf of people of the State of Florida. CONCLUSION The State and Attorney General s m otion to intervene should be granted under either Rule 24(a or Rule 24(b. 18

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 19 of 21 Respectfully submitted, LUTHER STRANGE (ASB-0036-G42L Attorney General BY: s/ Andrew L. Brasher Andrew L. Brasher (ASB-4325-W73B Deputy Solicitor General William G. Parker, Jr. (ASB-5142-I72P Joshua K. Payne (ASB-1041-A55P Assistant Attorneys General Attorneys OFFICE OF THE ATTORNEY GENERAL 501 Washington Avenue Montgomery, Alabama 36130 Telephone: (334 242-7300 Facsimile: (334 353-8440 abrasher@ago.state.al.us wparker@ago.state.al.us jpayne@ago.state.al.us for the State of Alabama and Attorney General Strange 19

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 20 of 21 CERTIFICATE OF SERVICE I hereby certify that on this the 22nd day of March, 2012, I filed the foregoing document via the CM/ECF system which will send electronic notice of such filing to the following counsel of record: Kyle Duncan Eric N. Kniffin The Becket Fund For Religious Liberty 3000 K Street NW, Suite 220 Washington, DC 20007 Telephone: (202 955-0095 Facsimile: (202 955-0090 kduncan@becketfund.org ekniffin@becketfund.org I further certify that I mailed the foregoing document to the following parties for whom no counsel has appeared: Secretary Kathleen Sebelius U.S. Department of Health and Human Services 200 Independence Avenue, SW Washington, DC 20201 Agent for Service of Process U.S. Department of Health and Human Services 200 Independence Avenue, SW Washington, DC 20201 Secretary Hilda Solis U.S. Department of Labor Frances Perkins Building 200 Constitution Avenue, NW Washington, DC 20210 20

Case 2:12-cv-00501-SLB Document 15 Filed 03/22/12 Page 21 of 21 Agent for Service of Process U.S. Department of Labor Frances Perkins Building 200 Constitution Avenue, NW Washington, DC 20210 Secretary Timothy Geithner U.S. Department of Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 Agent for Service of Process U.S. Department of Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 s/ Andrew L. Brasher Of Counsel 21