Document: 507 U.S. 529 113 S.Ct. 1631 123 L.Ed.2d 245 UNITED STATES, et al., Petitionersv.TEXAS al. No. 91-1729. Argued March 1, 1993. Decided April 5, Syllabus * States participating in the Food Stamp Program receive from United Department of Agriculture coupons that they distribute to qualified individuals and households. If through mail, must reimburse Federal Government for part replacement cost any are lost or stolen. Texas, which contractually bound itself comply with all federal regulations governing program, incurred substantial mail issuance losses was informed prejudgment interest would begin accrue on its debt unless payment made within 30 days. After being denied administrative relief, Texas filed suit against States, arguing, inter alia, Debt Collection Act 1982 (Act) abrogated States' common law right collect debts owed it by States. The District Court granted summary judgment favor but Appeals reversed. Held: left place obligation pay Government. Pp. ____. (a) It is a longstanding rule party owing where underlying claim contractual money. Also principle statutes invading be read presumption favoring retention existing except when statutory purpose contrary evident. This not limited state maritime law. (b) silent as obligations interest. That applies only "person" establishes Congress' intent exempt accordance Act's mandatory provisions, an relieve them their obligation. Given differences between requires agencies at pre-established rate—and —which gives courts flexibility determining whether impose appropriate rate—it logical conclude intended reach private debtors leave alone. purpose—to enhance Government's collection ability—reinforces this reading plain language. Texas' proposed reading, however, give delinquent less incentive debts. Neither fact has mechanism nor Congress did see root problem passed indicates meant incorrectly argues reimbursement requirement subject because penalty rather than Rodgers v. 332 371, 374-376, 68 7-8, 92 L.Ed. 3, distinguished. 951 F.2d 645 (CA 5 1992), REHNQUIST, C.J., delivered opinion Court, WHITE, BLACKMUN, O'CONNOR, SCALIA, KENNEDY, SOUTER, THOMAS, JJ., joined. STEVENS, J., dissenting opinion. Thomas G. Hungar, Los Angeles, CA, petitioners. James C. Todd, Austin, TX, respondents. Chief Justice REHNQUIST Court. 1 In case we decide question open West Virginia 479 305, 312-313, n. 107 702, 707, 93 639 (1987): abrogate We hold not. 2 instant result participation Program, 78 Stat. 703, amended, 7 U.S.C. § 2011 seq. Under Nutrition Service (FNS) provides food stamp then §§ 2013(a), 2014. Regulations implementing permit either over-the-counter mail. CFR 274.3(a) (1986); 274.3(a)(3) (1992). While generally cheaper more convenient, choose use distribution method portion stolen coupons. 2016(f). Specifically, State such above "tolerance level" set regulation.1 3 Human Services, program. See 272.2(a)(2), 272.2(b)(1) (1986).2 losses, Postal employees stole stamps had been mailed Services Because those exceeded applicable tolerance level, excess losses. FNS notified amount $412,385, balance 4 sought relief form waiver liability. Board requested sued Western Texas. addition challenging Board's refusal grant liability, argued precluded imposition both issues. With respect issue, adopted approach taken Tenth Circuit Gallegos Lyng, 891 788 (1989), held survived enactment Act. Civ. Action Nos. A-87-CA-774, A-88-CA-820 (WD Tex., Nov. 13, 1990). Fifth affirmed Court's decision concerning waiver, reversed Relying language Act, "Act should specifically excludes states interest." Id., 651. specific provisions "during time period relevant case, Courts free 'supplement' enactment." Ibid. (quoting Mobil Oil Corp. Higginbotham, 436 618, 625, 98 2010, 2015, 56 581 (1978)). rejected argument abrogation inconsistent enhancing ability view, could enforce claims unpaid offset procedures built into split among question, certiorari, 506 ----, 50, 121 20 (1992), now reverse.3 6 "longstanding parties money." U.S., 310, S.Ct., 706 (citing Royal Indemnity Co. 313 289, 295-297, 61 995, 997-998, 85 1361 (1941)). Comm'rs Jackson County 308 343, 60 285, 84 (1939), extends local governments, cautioned court considering individual weigh interests involved. reaffirmed Virginia, supra, upheld assessment Just "[s]tatutes invade . thr long-established familiar principles, evident." Isbrandtsen Johnson, 343 779, 783, 72 1011, 1014, 96 1294 (1952); Astoria Savings & Loan Assn. Solimino, 501 111 2166, 2168-2170, 115 (1991). cases, does write upon clean slate. Astoria, 2167-2168. order principle, statute "speak directly" addressed 2015; Milwaukee Illinois, 451 304, 315, 101 1784, 1791, 114 (1981). 8 Although different standard analyzing effect legislation law, Milwaukee, 316-317, 1792-1793, there no support our cases proposition application distinction general regard. agree need "affirmatively proscribe" doctrine issue. Brief Respondents 3-4; 1791. But stated "courts may take given legislated expectation [common law] will apply 'when evident.' " 2170 Isbrandtsen, 1014). 9 speak directly "[t]he head executive legislative agency shall charge minimum annual rate outstanding person. ." 31 3717(a)(1) (emphasis added). Section 3701, turn, term 'person' include Government, government, unit government." 3701(c). exemption clearly disagree. 10 3701 exempts These stringent persons money Solicitor General "Congress's mere legislate prejudgment-interest governments falls far short expression supplant area." Petitioners 16.4 11 Our conclusion remain liability supported onerous 3717(a) specifies rate.5 duty under means automatic. Before imposing interest, competing interests. 309-311, 705-707; Comm'rs, 350, 288. And instead district retain discretion case. Unlike 3717 also imposes processing fees charges, 3717(e)(1), (e)(2). these differences, one subset potential debtors—persons —and other reasonable requirements keep flexible governments. 12 evident reinforces designed "[t]o increase efficiency Government-wide efforts provide additional States." 1749; S.Rep. 97-378, p. (1982) Code Cong. Admin. News pp. 3377, 3378. (the responded "increasing concern expressed elsewhere over increasing backlog government"). suggests strengthen hand collecting Yet Appeals, have anomalous placing position prior passage. 13 reasoned delay makes liable actual caused coupon shortages unauthorized issuances, permits recover off-set procedure. F.2d, 650. agencies, just FNS. Thus, existence allowing nothing encourage prompt government-wide. already possessed adequate sanctions compel reason generic generally. 14 concedes passing argues, concerned primarily persons. Accordingly, runs argument, were problem. 15 Part persuades; tightened screws, so speak, inferred former problems inspired follow tighten screws therefore entirely removed. place, untightened. 16 As last-ditch contends owes unilaterally imposed Congress. (1947) (penalties normally interest). fails quite involved Rodgers. There penalties Agricultural Adjustment farmers who production quotas; suggestion ever consented penalties. Here, hand, signed Federal/State Agreement, express terms act regulations. 272.2(a)(2) 2, supra. 274.3(c)(4) (1986), specified incorporated Agreement. certain penalty, assumed.6 17 For reasons, 18 accordingly 19 Reversed. dissenting. 21 correctly notes, common-law long standing. Ante, Over century ago recognized equally well-established exception rule: entitled State's consent binding contract. North Carolina, 136 211, 920, 34 336 (1890).1 sovereign immunity attributable State,2 venerable always ready, willing able discharge promptly.3 22 "always ready what owes"4 well fictional King do wrong, nevertheless firmly embedded law.5 Moreover, even today tradition according special whenever subjected coercive powers judicial tribunals very much alive. e.g., Puerto Rico Aqueduct Sewer Authority Metcalf Eddy, Inc., 684, 692, 605 (1993). ancient continuing recognition "the importance ensuring dignitary can fully vindicated," ibid., best explain why deliberately omitted provision enacted 1982.6 23 correct noting reluctant infer presume understands legal terrain operates, Cannon University Chicago, 441 677, 698-699, 99 1946, 1958-1959, 560 (1979), expect reshape terrain. reluctance abrogations determine was—or least how might perceived—when acted; cannot think necessary, it, exist. 24 When 1982, collected explicitly authorized undecided never demand State. Not until five years later, (1987), first some circumstances themselves. rewrites history predicates entire analysis creatively describes Only hindsight—or crediting prescience become—can find 97th intend exist.7 every writing "clean slate," ante, ____, decided exclude definition class occasion stood way. 25 suing behalf Native American, county though improperly taxes. "interest inter-governmental litigation roots history," id., 351, 288, out possibility unusual considerations fairness make agency. 352, 289. small extent, therefore, aspect "reaffirmed," 26 fact, balancing equities suggested basis charging interest.8 There, refused costs advanced Disaster Relief 1970. "any exempting own force cf. Library Shaw, 478 106 2957, 250 represent policy obliged further." 311-312, 707 (footnotes omitted). statement suggesting brought And, came close saying available, go far. Even 1987—five after passed—it clear us, Congress, extend typical contract claim. 27 merely actually takes significant independent step toward equating case.9 if equation advised, be, say about know moving direction, arrived there. supports today's intention time. 28 My point, sum, absolute 1982; confirmed "left [it] place," "[F]avoring principles," (1952), mean rules yet fallen place. 29 I respectfully dissent. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber Co., 200 321, 337, 282, 287, 50 499. regulatory level .5% each reporting area's total issuances calendar quarter. 274.3(c)(4)(i) (1986). Title (1992) pertinent part: "The basic components Plan Operation Budget Projection Statement, Activity Statement. Agreement agreement Agriculture. elects operate administer program 1977, issued pursuant FNS-approved Operations." Subsection (b)(1) sets exact wording pre-printed dispute follows: ---- (FNS), (USDA), hereby Operation. (USDA) further changes modified mutual written parties. agrees to: 1. Administer contained manner prescribed Act; implement Operation." holds (1989). Second, Third Eighth Circuits contrary. Perales 751 95 (CA2 1984) (per curiam); Pennsylvania Dept. Public Welfare 781 334 (CA3 1986); Arkansas Scott Block, 825 1254 (CA8 1987). Both rely authority statutes, Medicaid 42 1396b(d)(5), Social Security 418(j) (1982 ed.), extinguished codified rate. Like changed obvious desire specific, well-defined situations signal extinguish situations. relies recent amendment 2022 adding requiring arising 1977. Pub.L. 100-435, 602, 102 1674 (1988). "subsequent 'hazardous inferring earlier' Congress." Pension Benefit Guaranty LTV Corp., 496 633, 650, 110 2668, 2678, 579 (1990) Price, 361 313, 80 326, 332, (1960)). because, like 1977 codify without change. Rather, contains required average investment Treasury tax loan accounts 12-month ending September year, rounded nearest whole percentage point." 3717(a)(1). Pennhurst School Hospital Halderman, 1531, 67 694 (1981), neither expressly require reliance misplaced. Pennhurst, conditions receipt funds, unambiguously. 17, 1539-1540. sense voluntarily knowingly condition expressed. existed before created, apply. Bell New Jersey, 461 773, 790, 103 2187, 2197, 76 312 (1983). "Interest, stipulated contract, statute, allowed damages detention property, compensation, plaintiff entitled; and, settled grounds public convenience, awarded manifested legislature, lawful officers. Sherman, 565, [25 235 (1878) ]; Angarica Bayard, 127 251, 260, [8 1156, 1160-1161, 32 159] (1888); authorities collected; re Gosman, Ch. D. 771." 216, 922. 143 621, 488, 36 285 (1892). "Judgments, true, South legislation, declared bear Such government. recovered. accrues recovery had. default debtor. attributed presumed owes." 567-568, (1879) American Transportation Trading 253 330, 336, 40 518, 521, 64 935 (1920). See, Attorney Cape Fear Navigation 37 N.C. 444, 454 (1843) ("[T]he is, pays she engages so"); Thompson, Ark. (1849). government official "on person," 3701(c) purposes section So going credit post hoc understanding refer comments author amendment, Senator Percy: "Prior 27, Senate bill 1249 House 4613 entity Several groups, presented view sections fraud evident, applied constituted debtor suffer great harm attempted assess offsets them. same concerns hearings Committee Judiciary during House's consideration 1981, H.R. 4614. "In response concerns, S. 1249. UP 1299, amended Sections stating 'the government.' effectively took retained sufficient legislatively pick circumstances, entities exempted enacted, appears point. anticipated attempt invoke authority, which, exists 10(e)(2) 11(e)(8) Act." Letter November 21, 1983 Charles H. Percy Comptroller 645, 649-650 (CA5 1992); 334, 341, 1986). Of course, significance comment legislator discounted 'after passage Act,' Bread Political FEC, 455 577, 582, 1235, 1238, 71 432 (1982). 1987 describe similarly discounted. teach recovered rigid theory compensation withheld, fairness. exaction inequitable. Sanborn, 135 271, 281 [10 812, 815, 112; (1890) Billings 232 261 [34 421, 58 596 (1914) ]." Commr's (1939). "whether paid depended parties." 311, 706, 3. Whatever says reserving imposed, rate, tacitly extension relied affirming strict loss-spreading Program.

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