National Taxpayers Union (NTU) and State Senator Robin Titus have filed an appeal to the Nevada Supreme Court regarding a lower court’s decision on the ongoing litigation regarding the constitutionality of SB 420. They are asking the Court to review the case before its implementation in January 2026.
The lawsuit challenges the constitutionality of SB 420, a 2021 bill that provides for the establishment of a “Public Option” health insurance system controlled by the state government. Originally filed in Nevada’s First Judicial District Court, the lawsuit seeks declaratory and injunctive relief. It demonstrates that SB 420 violates three distinct provisions in the Nevada Constitution. The lawsuit explains, in part:
SB 420 violates three distinct provisions of the Nevada Constitution. First, it is at odds with Article IV, Section 18(2), which provides that a two-thirds majority in each legislative house is required to pass any bill that “creates, generates, or increases any public revenue in any form, including but not limited to taxes, fees, assessments and rates, or changes in the computation bases for taxes, fees, assessments, and rates.” The challenged bill plainly generates public revenue, but it was not passed by the required two-thirds vote in either the Assembly or the Senate.
Second, SB 420 is in direct conflict with Article IV, Section 19, which states that “[n]o money shall be drawn from the treasury but in consequence of appropriations made by law.” SB 420 purports to give the State Treasurer and DHHS Director nearly unlimited discretion to use unspecified amounts of funds from the state treasury for unspecified purposes that the legislature did not approve in passing SB 420.
Third, SB 420 violates the separation-of-powers principle in Article III, Section 1, which states that “no persons charged with the exercise of powers properly belonging to one of these departments shall exercise any functions appertaining to either of the others[.]” SB 420 impermissibly delegates lawmaking authority to executive branch agency directors without providing any suitable standard to govern the manner and circumstances under which that authority is exercised.
“NTU has long led the charge for constitutional tax and expenditure limits as well as pro-taxpayer health care policy,” said Pete Sepp, President of National Taxpayers Union. “SB 420 clashes with procedural safeguards for raising revenues, spends money outside the budget process, and violates separation-of-powers articles. Not only is it bad policy, but it’s also unconstitutional.”
“Having served as a family physician in rural Nevada, I’ve seen first-hand the shortfalls of our current health care system. Implementing SB 420 and a government-controlled Public Option will only exacerbate our provider shortage, driving out more doctors and nurses and raising costs for Nevada families, and could even result in damaging cuts to provider reimbursements,” said State Senator Robin L. Titus, MD. “SB 420 will cause direct harm to Nevadans’ access to quality health care. To make matters worse, it would reduce consumer choice in the insurance market and destabilize the Medicaid program. I urge the Supreme Court to reject this unconstitutional experiment to protect Nevadans.”
Read the Notice of Appeal and the Case Appeal.
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About NTU
National Taxpayers Union is a nonpartisan 501(c)(4) that advocates for taxpayer interests at the federal, state, and local levels. NTU is America’s oldest national-level taxpayer advocacy organization and has played major roles in signature taxpayer victories of the past five decades, including the Tax Reform Act of 1986, the IRS Restructuring and Reform Act of 1998, the Tax Cuts and Jobs Act of 2017, and more. NTU was a key participant in the push to enact Nevada’s Question 11, which enshrined the 2/3 supermajority requirement in Nevada’s constitution.
About Nevada Senator Robin L. Titus, MD
Dr. Robin Titus was elected to her first term in the Nevada Senate in 2022. She previously served four terms in the Nevada Assembly and as the Assembly Republican Leader from June of 2021 until her election to the Senate. In addition to her service in elected office, Dr. Titus has had a successful career as a family practice physician in Lyon County for over 35 years, including providing pre- and post-natal care and delivering countless babies. She also served as Chief of Staff at the Lyon County Hospital and on the State Board of Medical Examiners. Today, she is also the Lyon County Health Officer.