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Physical therapist’s challenge of Mississippi certificate-of-need laws will move forward

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Physical therapist Charles “Butch” Slaughter helps Frances Champion with exercises at his clinic in Jackson, Miss., Tuesday, Feb. 1, 2022. Credit: Eric Shelton/Mississippi Today

A Jackson physical therapist challenging a state law and regulations preventing him from opening a home health care business will get his day in court, a federal judge ruled. 

Charles “Butch” Slaughter has been a physical therapist in Mississippi for decades and has developed a niche for ankle and foot injuries. During the pandemic, patients were canceling their appointments to avoid potentially being exposed to COVID-19. 

He decided then that he wanted to open a home health agency so he could take care of patients directly in their homes, and was excited about how he’d be able to better serve Jackson’s older population. 

“As people get older, they have a tendency to fall and break hips,” Slaughter said. “And if we can prevent that in the beginning, then they won’t have those big bills. We can keep people at home and they don’t have to go to a nursing home. And most people don’t want to go if they don’t have to.”

But what Slaughter soon realized was there was a mountain of red tape to overcome before he could expand his business. A 40-year-old law bans the Mississippi Department of Health from issuing certificates of need (CON) to new home health agencies. There are only 50 CONs for these providers statewide, so Slaughter would have to buy one from an existing provider. 

If he were to open a home health agency without a CON, he’d face misdemeanor charges and a fine of $500 per day. 

Physical therapist Charles “Butch” Slaughter helps Frances Champion with exercises at his clinic in Jackson, Miss., Tuesday, Feb. 1, 2022. Credit: Eric Shelton/Mississippi Today

Even if the ban on new CONs wasn’t in place, Slaughter would likely face resistance from existing providers, who could argue in court that a new home health agency isn’t needed.

CON laws became widespread in the 1970s after The National Health Planning and Resources Development Act of 1974 required states to adopt CON programs to receive federal funding. The theory was that restricting the supply of health care providers would help lower costs. 

The Mississippi legislature passed its CON law in 1979, and though Congress repealed the federal CON law in 1987, Mississippi’s is still on the books.

“These certificate of need laws are a relic of a failed experiment by the federal government to control health care costs that did not work,” Aaron Rice, director of the Mississippi Justice Institute and Slaughter’s attorney, said. 

Rice says that though there are 50 home health agency CONs, he estimates there are only around a dozen or so providers in the state that are actually using them, as many are owned by subsidiaries of a larger organization. 

In December 2020, Slaughter sued state health officials in federal court, arguing the ban on new CONs being issued, and the overall CON requirement for home health agencies, are unconstitutional. 

Though he didn’t rule on the constitutional challenges, U.S. District Judge Carlton Reeves agreed Slaughter had a valid argument in his order denying the state’s motion to dismiss the lawsuit. 

“It is no secret that significant financial interests are at stake when it comes to CON laws … In practice, plaintiff alleges, current operators do exactly that: expand their offerings to absorb any purported ‘need,’ and eliminate the opportunity for any new competitors to enter the market,” Reeves wrote.

Numerous studies have shown that CON laws have not improved. One study published in 2020 found the laws increase health care costs and elderly mortality rates. A 2016 joint report from the Federal Trade Commission and the U.S. Department of Justice said the laws “can prevent the efficient functioning of health care markets,” for reasons including that they “limit consumer choice, and stifle innovation.”

Now, just over a year after Slaughter filed his lawsuit, he’s feeling energized going into the discovery phase of the suit, and is eager to make his arguments at trial.

“This gives us hope that we can bring this about and solve it so that not only I can open a home health agency but that other people can throughout the state … This is for the people of Mississippi.”

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Senate unveils income tax cut plan, signaling battle among Capitol leaders

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The state Senate on Tuesday unveiled its proposal to cut the state income tax, not eliminate it altogether as the House and governor propose.

It would also reduce the tax on groceries, provide a tax rebate up to $1,000 for 2022 and reduce the cost of car tags.

It also sets up a potential tax cut battle at the Capitol — with Speaker Philip Gunn and Gov. Tate Reeves pushing for elimination of the state income tax over time, although they have disagreed on particulars.

“This plan is simple, straightforward and sustainable — all the things you want addressed,” said Lt. Gov. Delbert Hosemann. “This addresses the inflation and cost of living increases hitting you at the grocery store and when you fill your gas tank, and it addresses teacher raises, infrastructure and health care needs we have as well.”

Gunn on Tuesday said he had not seen many details of the Senate plan, but said his support for eliminating, not just cutting, the income tax is firm. Gunn, the third-term speaker, has called his plan to eliminate the income tax the most important legislation of his political career.

“We are not interested in a token tax reduction that returns only a portion to our citizens without eliminating it,” Gunn said. “The governor has made similar statements. We will be coming forward soon with analysis showing the difference in the two plans. We still believe our plan is real, conservative tax relief.”

READ MORE: Speaker Gunn’s plan to eliminate income tax, reduce food tax

Unlike the House plan, the Senate income tax cuts would not be offset by an increase in sales or other taxes. Also unlike the House plan, the Senate plan would not require revenue growth “triggers” in order for the cuts to proceed.

The Senate’s $446 million tax cut proposal would:

  • Phase out the 4% state income tax bracket over four years. This, coupled with elimination of the 3% tax bracket effective last year, would mean people would pay no state income tax on their first $26,600 of income. This would cost $185 million a year at the end of the four years of cuts.
  • Reduce the state grocery tax from 7% to 5%, starting in July. This would cost about $118 million a year based on current revenue.
  • Provide up to a 5% income tax rebate in 2022 for those who paid taxes. The rebates would range from $100 to $1,000 and would probably be paid late this year, around November, Senate leaders said. This would be a one-time cost of about $130 million.
  • Eliminate the state fee on car tags going into the general fund. This would be a small reduction, as most of the cost of a car tag in Mississippi is county level taxes and other fees, which would not be eliminated. This would cost about $13 million a year.

Senate Finance Chairman Josh Harkins, R-Flowood, announced the plan to the Senate Finance Committee on Tuesday and provided a white page with broad details. He said the full bill will be out soon. Harkins and other Senate leaders have worked on a tax cut plan since last year, after the Senate killed Gunn’s first attempt at an income tax elimination plan.

READ MORE: Lawmakers hear from experts as they ponder eliminating income taxes

The House has already passed its income tax elimination plan on to the Senate. It includes cuts to the grocery tax and a 1.5-cents-on-the-dollar increase in the sales tax, which would bring the state sales tax to 8.5%. The plan would phase out the state income tax over a decade or so, depending on revenue growth.

The House plan has faced some criticism and skepticism from business and other leaders since Gunn introduced it last year, but he and other House leaders say they’ve tweaked it to address concerns. The sales tax increase was reduced from the original version, and other tax increases in the plan were eliminated.

“The House plan totally eliminates the income tax in a responsible way,” Gunn said. “It is our desire to put more money back into the pockets of our citizens. We have an opportunity right now like we’ve never had before and probably never will again to do this.”

READ MORE: Business leaders oppose Gunn’s income tax elimination-sales tax increase

Harkins told Finance Committee members the Senate tax plan is “aggressive,” but not foolhardy. He said the current state budget is flush with pandemic stimulus dollars that he called “cocaine from the federal government” that will dry up. He also noted lawmakers this session have already pledged hundreds of millions of dollars a year in new spending on things such as a large teacher pay raise.

“Mississippi has had a record year in terms of revenue, so it was imperative to me we develop a durable tax relief plan which returns taxpayer money to taxpayers without raising any rates,” Harkins said. “The most important thing we can do as conservatives is get this right — and this plan allows for a substantial cut while still balancing the budget.”

Reeves spokeswoman Bailey Martin in a statement on Tuesday said: “Governor Reeves is grateful for the Senate’s interest in cutting taxes on Mississippians. He looks forward to reviewing their plan and continues to believe the legislature should act boldly this session to transform our tax system by eliminating the income tax.”  

While Reeves in the past criticized Gunn’s plan as a “tax swap” because it increases sales taxes to offset elimination of the income tax, more recently he has praised Gunn and the House leadership for their efforts.

Fellow Republican Hosemann noted the Senate income tax cut plan is based on tax cuts then-Lt. Gov. Reeves and Gunn championed in 2016, which phased out the state’s 3% income tax bracket and continues to phase out the corporate franchise tax.

Hosemann said he and the Senate leadership plan to “enthusiastically” support their plan and he and Harkins both declined comment or analysis of the House plan.

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Federal board nears decision time on Gulf Coast Amtrak route

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Nearly a year after Amtrak first petitioned to run a passenger route through the Gulf Coast, the federal body that will decide the train’s future is holding a public meeting. 

The Surface Transportation Board, which is based in Washington, D.C., announced it will host a public hearing on Feb. 15 about the proposed route that would run between New Orleans and Mobile with stops in Mississippi. The meeting, which will be hosted on Zoom and then posted to YouTube, will allow for public comments. 

On March 9, the board will hold an evidence hearing over the railway dispute between Amtrak and the private companies that own and use the tracks. That hearing could be continued into the following day but will eventually result in the board making a decision on whether Amtrak will once again run along the Coast. 

READ MORE: The fate of Amtrak’s Gulf Coast return rests with a federal board

In March 2021, Amtrak filed a petition to access the railway tracks along the Gulf Coast. Those tracks are owned primarily by CSX, a freight company. Amtrak has been at odds with private industry over use of the tracks for years. 

Amtrak had hoped to start running the passenger route by Jan. 1, 2022. 

CSX has maintained more research on the capacity of tracks is needed before they are shared with Amtrak for public use. 

Those interested in making a public comment at this month’s hearing have to file a notice with the board by Feb. 7.

If the board makes a decision in favor of Amtrak, the new route would have four stops in Mississippi: Bay St. Louis, Gulfport, Biloxi and Pascagoula. It would stretch over 200 miles from start to finish and have two trains running both ways — once in the morning and once in the evening.

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Reeves, Hosemann post sizable 2021 campaign contribution totals

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Incumbent Republican Gov. Tate Reeves has an overwhelming campaign finance advantage over people who have been rumored as potential challengers to his 2023 re-election bid, just as he did at the same time four years ago.

In the annual 2017 campaign finance report released in January 2018, Reeves had $5.4 million in cash on hand. In the 2021 annual report filed earlier this week with Secretary of State’s Michael Watson’s office, Reeves has $4.8 million in cash on hand.

This time four years ago, then-Attorney General Jim Hood, the Democrat who ran unsuccessfully against Reeves in the November 2019 November general election, had $656,393 in cash on hand, according to the Secretary of State’s web site.

This year Northern District Public Service Commissioner Brandon Presley of Nettleton has been mentioned as a possible Democratic candidate against the Republican incumbent. Presley has $520,000 in cash on hand.

As far as potential Republicans who might challenge Reeves in a party primary, House Speaker Philip Gunn has $1.03 million in cash on hand.

In 2019, former state Supreme Court Chief Justice William Waller Jr. challenged Reeves in the Republican primary and forced a runoff. Four years ago in 2018, Waller was not raising funds for a potential gubernatorial bid.

Gov. Tate Reeves

Contributions: $2.4 million

Cash on hand: $2.9 million

Reeves’ legacy account: This account is grandfathered under state’s former, more lax campaign finance laws and candidates who keep a separate accounting of their old accounts can “cash in” and keep the money when they leave office. Reeves has “loaned” his new account money from his old account.

Raised $8,000 (in interest)

Cash on hand: $1.9 million

House Speaker Philip Gunn

Contributions: $655,000

Cash on hand: $1.03 million

Lt. Gov. Delbert Hosemann

Contributions: $1.23 million

Cash on hand: $2.6 million

Attorney General Lynn Fitch

Contributions: $639,000

Cash on hand: $556,000

Auditor Shad White

Contributions: $395,000

Cash on hand: $603,000

Secretary of State Michael Watson

Contributions: $394,000

Cash on hand: $351,000

Insurance Commissioner Mike Chaney

Contributions: $13 (interest)

Cash on hand: $105,000

Treasurer David McRae

Contributions: $62,000

Cash on hand: $60,000

PSC Commissioner Brandon Presley

Contributions: $474,000

Cash on hand: $520,000

PSC Commissioner Brent Bailey

Contributions: $15,650

Cash on hand: $15,900

PSC Commissioner Dane Maxwell

Contributions: $11,500

Cash on hand: $228

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Mississippi HBCUs receive bomb threats on first day of Black History Month

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At least five historically Black colleges and universities in Mississippi received bomb threats early Tuesday morning, prompting lockdowns and virtual classes on the first day of Black History Month. 

Among the schools that reported receiving threats were Jackson State University, Alcorn State University, Mississippi Valley State University, Tougaloo College and Rust College. Hinds Community College closed its locations in Hinds County which also received threats this morning, according to its Facebook page.  

The only HBCU in Mississippi that did not receive a bomb threat Tuesday morning was Coahoma Community College. Marriel Hardy, chief communications officer at Coahoma, wrote in an email that the college has discussed the possibility of a bomb threat and revisited its emergency preparedness plans in precaution. 

“Since these occurrences started several weeks ago, we’ve been ever vigilant,” Hardy wrote. 

This is the latest in a series of bomb threats reported at HBCUs across the country. Schools that reported receiving threats yesterday include: Howard University in Washington D.C.; Delaware State University in Dover; and Bethune-Cookman University in Daytona Beach, Florida. All those schools issued all-clears by late Monday afternoon, the Washington Post reported

It is still unclear if these threats are connected, according to multiple news outlets. 

Mississippi Congressman Bennie Thompson, who chairs the House Committee on Homeland Security, said in a statement Tuesday that he has “engaged with the FBI and DHS about these threats to HBCUs” and is “committed to working with HBCU leaders to get them the answers they deserve.” 

In Lorman, Alcorn State University received a bomb threat at 3:59 a.m., Maxine Greenleaf, the chief communications officer, told Mississippi Today. The administration placed the main campus under lockdown and is working to issue an all-clear, she said. 

“Our students are safe,” Greenleaf wrote. “As soon as law enforcement declares an all clear, we will send an update to the campus community.” 

Administration at Rust College issued an all-clear at 10 a.m. after sweeping the campus with “bomb detection canines,” according to a press release. The administration discussed the bomb threat on a call this morning, Mary LeSueur, director of public relations, told Mississippi Today, and plans to resume normal campus operations tomorrow.

Valley State moved classes virtual after a sweep by campus police deputies from the Leflore and Washington county sheriff’s departments found the bomb threat to be unsubstantiated, Donell Maxie, MVSU’s communications director, told the Greenwood Commonwealth. Valley State’s guardhouse had received the bomb threat this morning, the university wrote on its Facebook page around 7 a.m. Officials had issued a shelter-in-place order.

Tougaloo College and Jackson State both gave the all-clear this morning. Tougaloo is keeping classes virtual for Tuesday and has instructed students and employees not to commute to campus, according to its website. On Twitter, Jackson State said the campus would remain open “with a heightened presence of law enforcement as a precautionary measure.” Officials postponed on-campus COVID-19 vaccinations until next Tuesday.

“Jackson State University takes any threats to the campus community’s safety seriously and remains vigilant in maintaining the safety and protection of the JSU community,” the university wrote on Twitter. 

On social media, students, parents and alumni noted these threats came on the first day of Black History Month and at a time when HBCUs are gaining prominence. In an article in the Chronicle of Higher Education, the president of the National Association of Diversity Officers in Higher Education called the bomb threats “one of the clearest examples of hate crimes based on race.”

Editor’s note: This story has been updated to reflect that Valley State and Rust College issued an all-clear Tuesday mid-morning. After publishing, Hinds Community College, which initially said it did not receive a specific threat, announced its four locations in Hinds County had received bomb threats.

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Wildlife, Fisheries and Parks director retiring after nearly 30 years

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Mississippi Department of Wildlife Fisheries and Parks Director Sam Polles, the longest tenured director in the agency’s history, has announced his retirement after 29 years.

“The department is one of a very few agencies that touches the lives of citizens all across this state every single day,” Polles said in a message to MDWFP employees on Monday.

MDWFP Director Sam Polles

Polles, appointed by Gov. Kirk Fordice in 1992, has served under five governors.

In his message, Polles said: “Our Wildlife Management Areas now offer the sporting public high quality hunting opportunities unlike any in the Southeast, and our state lakes system and other public waterways provide anglers with storied fishing experiences which no doubt will be shared with families and friends for generations.”

Polles said his resignation is effective Tuesday.

Deputy Director Lynn Posey said that he will temporarily oversee agency operations until an interim — then permanent — director is named.

“This is an end of an era over here,” Posey said of Polles’ retirement. “I think he’s done an excellent job.”

MDWFP is governed by a five-member commission, with members appointed by the governor. When choosing a director, the commission sends a list of three people to the governor, who chooses one, subject to approval by the state Senate.

Commissioner Leonard Bentz said: “Dr. Polles has been a great leader for that department over the last 29 years. He brought that department to the professional organization it is today because of his leadership.”

Polles’ accomplishments with the agency include expanding wildlife management areas and state lakes system providing more hunting and fishing opportunities, implementing new systems for purchase of licenses and registrations, and construction of the new Mississippi Museum of Natural Science and MDWFP state headquarters.

But not everyone was pleased with his leadership. Mississippi Sierra Club Director Louie Miller said, “Sadly under Dr. Polles’ tenure, state parks have been allowed to deteriorate from what was once a showcase for Mississippi, into the dilapidated condition they are currently in.”

READ MORE: Lawmakers consider privatizing Mississippi’s dilapidated, underfunded state parks

“To add insult to injury, while Mississippians were celebrating the Christmas holiday, Dr. Polles was busy executing plans to hand over our state parks to private, out-of-state, for-profit corporations for the next 30 years … We hope the next Director will serve the public’s best interest in managing our cherished natural resources rather than yielding to special interests.”

READ MORE: Move to privatize state parks halted – for now – amid heated debate

MDWFP recently put out a request for proposals for private companies to manage operations of Hugh White, John Kyle, John P. Cossar and Wall Doxey state parks. Miller and other opponents of this move said it is ill timed because the state has billions of dollars in federal stimulus money that could be used to improve the state’s dilapidated parks.

MDWFP has faced budget cuts over many years and said it didn’t have the money to maintain and upgrade the state’s 25 parks.

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Funeral service for Lusia “Lucy” Harris set for Feb. 5

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Delta State University has announced funeral arrangements for Lusia “Lucy” Harris Stewart, the basketball legend who led the university to three consecutive national championships and became the first Black woman inducted into the Naismith Basketball Hall of Fame. 

A funeral service will be held on Saturday, Feb. 5 at 11 a.m. in the Walter Sillers Coliseum at Delta State University. Visitation will be held the day prior from 5 p.m. to 8 p.m. at the Bethesda Five Points Center in Greenwood. 

Harris, a native of Minter City, Miss., was the only Black woman on Delta State’s Lady Statesmen when she led the team to its first national title in 1975. A year later, the 6-foot-3 center scored the first basket in Olympic womens’ basketball history at the Montreal Games. 

“Now that’s a record that’ll never be broken,” Harris said in “The Queen of Basketball,” a 2021 documentary about her life. 

There was no WNBA league when Harris graduated from Delta State in 1977, so she married her high school sweetheart, George Stewart. She turned down an offer to play with the New Orleans Jazz and took a job coaching basketball at Amanda Elzy High School in Greenwood, where she had learned to play the game. 

“Lucy was truly the first superstar of the women’s game,” Langston Rogers, the Delta State sports information director in the 1970s, told Mississippi Today’s Rick Cleveland. “She just dominated. Nobody could dominate a game like Lucy could.”

Harris passed away at age 66 on Wednesday, Jan. 18, in a therapy facility in Mound Bayou.

READ MORE: Why did an NBA team draft Lucy Harris? A Mississippi guy was involved.

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House committee makes first move to restore ballot initiative process

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The right for Mississippians to bypass the Legislature and place issues on the election ballot would be restored under a proposal approved Monday by the House Constitution Committee.

Mississippi has been without a ballot initiative process since May 2021, when the state Supreme Court struck down the medical marijuana initiative passed by voters in November 2020 and the entire ballot initiative process. The court ruled the process invalid because language in the state Constitution mandated that the required number of signatures necessary to place an issue on the ballot be gathered equally from five congressional districts. Mississippi has had only four congressional districts since losing one as a result of the 2000 Census.

READ MORE: Mississippi Supreme Court overturns medical marijuana program and ballot initiative process

While the state has lost a congressional district, various entities in state government are still configured based on the five districts, such as the board that oversees the state’s 15 community colleges. And other initiatives that remain in state law have been approved based on the five districts.

The proposal passed Monday, Constitution Chair Fred Shanks, R-Brandon, pointed out, would require a pro rata share of signatures be gathered from whatever number of congressional districts the state has.

It would allow for citizens to amend general law, not the Constitution. The process ruled invalid last May by the Supreme Court allowed solely for the amending of the Constitution. Shanks and various other legislative leaders said they would prefer the process be used to amend general law because amending the Constitution requires the approval of voters.

But after a citizen-sponsored initiative is approved by voters under the proposal, the Legislature cannot change it for two years unless in case of an emergency, and even then it would take a two-thirds vote of each chamber to do so.

The proposal is expected to be considered in the coming two weeks by the full House. It will require a two-thirds vote of both the House and the Senate, and if it passes through the Legislature, Mississippi voters would have to approve it at the ballot box for it to go into effect.

Both House Speaker Philip Gunn and Lt. Gov. Delbert Hosemann have expressed support for restoring the initiative process. But Hosemann has assigned the Senate bill that would restore the process to two committees, making it more difficult to pass.

Importantly, the House proposal passed out Monday does not allow for legislators to place a competing alternative to the citizen-sponsored initiative on the ballot. In recent years, initiative sponsors have complained that legislators have placed alternatives to the citizen-sponsored initiative on the ballot, creating a convoluted voting process that many said caused confusion at the ballot box.

READ MORE: Will lawmakers be willing to give up some of their power by restoring ballot initiative?

Legislators placed an alternative to a medical marijuana initiative on the ballot in 2020 and in 2015 had an alternative to an initiative that sought to place a greater commitment to public education in the state Constitution.

“As long as we are doing away with the legislative alternative measure, I am good with it,” Rep. Jeramey Anderson, D-Escatawpa, said in the House Constitution Committee hearing.

Feb. 1 is the deadline to pass bills and constitutional amendments out of committee in their originating chamber, and the Senate proposal had not been considered in either chamber as of late Monday evening. But even if the Senate legislation to restore the initiative is not passed out of the committees by Tuesday’s deadline, the issue will remain alive in the legislative process because the House proposal is alive.

The House proposal, like in the version overturned by the Supreme Court, would require signatures be gathered equaling 12% of the total in the last gubernatorial election to place an issue on the ballot. And sponsors still would have 12 months to collect the signatures.

The proposal would create a database in the Secretary of State’s office to allow citizens to check whether they are listed as signers of a petition to place an issue on the ballot. Shanks said there have been complaints by some that they were listed as signing an initiative petition when they did not.

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Marshall Ramsey: Wicker Wordle

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Mississippi’s senior Senator Roger Wicker recently said on the Paul Gallo radio show, “The irony is that the Supreme Court is at the very time hearing cases about this sort of affirmative racial discrimination while adding someone who is the beneficiary of this sort of quota,” and has received national criticism for it. Vowing to choose from a particular pool of qualified candidates is nothing new for presidential candidates. Both President Ronald Reagan and Donald Trump pledged to nominate women to the Supreme Court. And I am not sure why having a Supreme Court that looks like the face of America is a bad thing.

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