WEBVTT - SCOTUS 2024, Immigration Crisis and Student Athletes

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

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<v Speaker 2>Next year at the Supreme Court promises to be a

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<v Speaker 2>tumultuous one with cases on abortion, the Second Amendment, and

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<v Speaker 2>the many legal issues involving former President Donald Trump. Joining

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<v Speaker 2>me for the second half of our look at what's

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<v Speaker 2>happening at the Court next year is Bloomberg Supreme Court

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<v Speaker 2>reporter Greg Store. Greg. There's going to be a sort

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<v Speaker 2>of showdown at the Court over agency power with two

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<v Speaker 2>cases involving the Chevron Doctrine, which is a thirty nine

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<v Speaker 2>year old precedent, and this will have major implications for

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<v Speaker 2>all kinds of government regulations.

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<v Speaker 3>Yeah, it is one of those cases that is cited

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<v Speaker 3>all the time in federal administrative law cases, meaning like

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<v Speaker 3>challenges to agency regulations. And basically what the Chevron Doctrine

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<v Speaker 3>says is, if there's a statute that is ambiguous, if

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<v Speaker 3>the agency interprets it that ambiguous statute in a certain way,

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<v Speaker 3>and if that's a reasonable interpretation, we the courts are

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<v Speaker 3>going to defer to the agency. And so it gives

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<v Speaker 3>agencies regulators a certain amount of power to define the

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<v Speaker 3>scope of their mission and their authority and the Supreme Court.

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<v Speaker 3>This very conservative Supreme Court has been expressly a good

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<v Speaker 3>deal skepticism about the Chevron doctrine and in fact has

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<v Speaker 3>been kind of narrowing it over the years, and now

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<v Speaker 3>they have a case where they might just overturn it.

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<v Speaker 3>It's a case that involves a fee that is charged

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<v Speaker 3>to herring fishermen or could be charged to herring fishermen

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<v Speaker 3>to pay for federal monitors aboard their vessels, and the

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<v Speaker 3>argument is that federal regulators didn't have the authority to

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<v Speaker 3>impose that fee. In they don't necessarily have to overturn

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<v Speaker 3>the Chevron doctrine in the case, but if they do,

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<v Speaker 3>it could really represent a major shift in terms of

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<v Speaker 3>what agencies are able to do, how authority they have

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<v Speaker 3>to enact new regulations, and it would really be kind

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<v Speaker 3>of a revolution in this arcane the very very important

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<v Speaker 3>world of federal administrative law.

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<v Speaker 2>And several conservative justices have written about their opposition to Chevron,

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<v Speaker 2>though the Court has never actually revisited it.

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<v Speaker 3>Right, so justices like Clarence Thomas Neil Gorsich, you expect

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<v Speaker 3>them to be very very skeptical when the Court considers it.

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<v Speaker 3>There's another aspect of this issue. In the case a

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<v Speaker 3>couple terms ago involving the EPA and regulation of climate change,

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<v Speaker 3>the Supreme Court said that not only are we not

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<v Speaker 3>going to give Chevron deference to the EPA when it

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<v Speaker 3>decides it has brought authority to impose regulations on power plants,

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<v Speaker 3>but we're actually going to start with the assumption that

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<v Speaker 3>Congress wouldn't have delegated this authority to the EPA unless

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<v Speaker 3>it was explicitly clear. Because this is a so called

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<v Speaker 3>major question. It is so important that we just aren't

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<v Speaker 3>going to be lead that Congress meant to give the

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<v Speaker 3>EPA authority over it unless it's crystal clear in the statute.

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<v Speaker 3>So this notion of deferring to agencies is already under

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<v Speaker 3>pressure from a lot of different angles.

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<v Speaker 2>And you've written about how it's sort of like the

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<v Speaker 2>dream of conservatives and critics of big government. How critics

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<v Speaker 2>of big government have organized to fight the Chevron doctrine

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<v Speaker 2>in ways similar to how anti abortion groups organized to

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<v Speaker 2>fight against Roe v. Wade.

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<v Speaker 3>Yeah, there was a massive pile of briefs on the

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<v Speaker 3>side of the fishermen in this case, all manner of

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<v Speaker 3>conservative groups weighing and in business groups to some degree

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<v Speaker 3>weighing in support. Kind of the interesting difference between Roe v.

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<v Speaker 3>Wade and Chevron is that early on when Chevron, when

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<v Speaker 3>the ruling came down in nineteen eighty four, it was

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<v Speaker 3>something that conservatives tended to like. That was a time

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<v Speaker 3>when Ronald Reagan was president Republican and conservatives tended to

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<v Speaker 3>like what agencies were doing, and so they were happy

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<v Speaker 3>to have courts deferring two agencies. Over time, particularly as

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<v Speaker 3>Democrats came into the White House, conservatives came to think

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<v Speaker 3>it was a bad idea. They wanted judges to have

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<v Speaker 3>more authority to decide how broad federal statutes are.

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<v Speaker 2>Although presidents of both parties have leaned on the Chevron doctrine.

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<v Speaker 2>So there are two cases. One that the Court decided

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<v Speaker 2>to take in May, the Loper Bright case, and then

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<v Speaker 2>a second case the Court decided to take in October, Relentless,

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<v Speaker 2>Perhaps since appropriately entitled Relentless versus Department of Commerce. Explain

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<v Speaker 2>why the justices may have taken that second case.

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<v Speaker 3>Yeah, So, first of one, I should say that they're

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<v Speaker 3>otherwise exactly the same, the exact same issue. It's both

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<v Speaker 3>about this see for monitors on Herring votes. The difference

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<v Speaker 3>is that in the first case, the lober Bright case,

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<v Speaker 3>Justice Katachi bron Jackson is recused from it. She had

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<v Speaker 3>been involved with it when she was a Federal Appeals

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<v Speaker 3>Court judge on the DC Circuit, And so by adding

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<v Speaker 3>the second case, the Court guarantees they will have nine

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<v Speaker 3>justices to decide it. Now, I'm given the conservative leanings

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<v Speaker 3>of this court, they may not need nine justices. They

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<v Speaker 3>may already have the five they need to overturn the

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<v Speaker 3>Chevran decision. But at least Justice Jackson will have a

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<v Speaker 3>chance to weigh in in the case.

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<v Speaker 2>And the Supreme Court is going to delve into several

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<v Speaker 2>cases involving social media. They agreed to review Florida and

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<v Speaker 2>Texas laws that would sharply restrict the ability of the

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<v Speaker 2>largest social media platforms to police political misinformation. The laws

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<v Speaker 2>are a little bit different, but similar.

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<v Speaker 3>Yeah, So both of them basically restrict the editorial discretion

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<v Speaker 3>of social media companies. Restrict the ability of social media

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<v Speaker 3>companies to decide on their own whether certain posts should

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<v Speaker 3>be taken down or certain users kicked off the platform.

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<v Speaker 3>The argument that the states are making is that, oh,

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<v Speaker 3>these social media companies discriminate against conservative viewpoints and so

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<v Speaker 3>we need to pose some regulations. And the two laws

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<v Speaker 3>are different in terms of their exact provisions. The Texas law,

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<v Speaker 3>for example, includes a broader provision that essentially says that

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<v Speaker 3>social media companies have to be viewpoint neutral. They have

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<v Speaker 3>to treat conservative viewpoints and liberal viewpoints alike. The Florida

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<v Speaker 3>law has a provision in it that requires social media companies,

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<v Speaker 3>whenever they do something take down a post, to give

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<v Speaker 3>a detailed explanation of why they did that. So social

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<v Speaker 3>media companies their trade group are lodging a first Amendment

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<v Speaker 3>challenge to both laws, and the devil may be in

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<v Speaker 3>the detailed to some degree. For example, the Florida law,

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<v Speaker 3>a federal appeals court upheld part of it and blocked

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<v Speaker 3>part of it, So there may be some parsing that

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<v Speaker 3>the Supreme Court decides to do in terms of whether

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<v Speaker 3>these laws are constitutional, and that.

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<v Speaker 2>Appeals court, the Eleventh Circuit, is one of the most

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<v Speaker 2>conservative circuits in the country, but not as conservative as

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<v Speaker 2>the Fifth Circuit, which upheld the Texas law. Former President

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<v Speaker 2>Donald Trump filed a brief in support of the Florida law.

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<v Speaker 2>How much could this decision shape the rules online in

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<v Speaker 2>the run up to the twenty twenty four election.

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<v Speaker 3>That's a good question, and I think my answer is

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<v Speaker 3>perhaps not as much as I would have thought a

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<v Speaker 3>year ago, in that we've seen social media companies X

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<v Speaker 3>for example, the platform formally known as Twitter doing less

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<v Speaker 3>to combat misinformation disinformation on their platform, same thing with

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<v Speaker 3>other social media platforms. So to the extent that these

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<v Speaker 3>laws were trying to crack down on social media companies

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<v Speaker 3>when they were actively trying to remove inaccuracies, you know,

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<v Speaker 3>there's less of that going on anyway, and so the

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<v Speaker 3>practical effect of it might be a little less than

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<v Speaker 3>we thought it was going to be previously.

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<v Speaker 2>Greg looking at what's coming up, do you think that

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<v Speaker 2>this term could be as controversial as two terms ago.

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<v Speaker 3>Well, that's a pretty high bar to set the term

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<v Speaker 3>two years ago. That, of course, is the term where,

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<v Speaker 3>among other things, the Court overturned Roe v. Wade, sot

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<v Speaker 3>up a tough new test for gun regulations. This term

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<v Speaker 3>right now, we have a lot of very important cases,

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<v Speaker 3>but not historic cases in quite the same way as

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<v Speaker 3>we had that term. Now, the big caveat to all

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<v Speaker 3>that is Donald Trump is out there, and there are

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<v Speaker 3>all manner of Donald Trump related cases that are percolating,

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<v Speaker 3>including the question of whether he is immune from criminal

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<v Speaker 3>charges over things he did as president to try to

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<v Speaker 3>overturn the election results leading up to the January sixth

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<v Speaker 3>riot at the Capitol. There's also the question of whether

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<v Speaker 3>the Constitution's fourteenth amend and the insurrection clause in there

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<v Speaker 3>precludes him from becoming president again. Those are enormously big

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<v Speaker 3>issues with both legal and political significance, and so those

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<v Speaker 3>cases may end up being the things that power above

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<v Speaker 3>everything else that the Supreme Court has this term.

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<v Speaker 2>So I think you'll be quite busy next year. Greg,

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<v Speaker 2>Thanks so much for running it all down for us.

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<v Speaker 2>That's Bloomberg Supreme Court reporter Greg Store. Coming up next

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<v Speaker 2>on the Bloomberg Law Show, Top US officials are going

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<v Speaker 2>to be traveling to Mexico in an attempt to deal

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<v Speaker 2>with the record numbers of people crossing the southern border.

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<v Speaker 2>I'm June Gross. When you're listening to Bloomberg, the US

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<v Speaker 2>is facing an unprecedented surge of migrants at the southern border. Yesterday,

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<v Speaker 2>US Customs and Border Protection encountered more than twelve thousand

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<v Speaker 2>undocumented migrants crossing the border for the third straight day,

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<v Speaker 2>a new record. National Security Council official John Kirby said

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<v Speaker 2>President Joe Biden and the President of Mexico agreed during

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<v Speaker 2>a call today that more enforcement at the border between

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<v Speaker 2>the two countries is needed, as record numbers of people

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<v Speaker 2>trying to cross have disrupted trade.

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<v Speaker 4>One of the things that the President Lopez Overdoor and

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<v Speaker 4>the President talked about today was trying to work on

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<v Speaker 4>getting at the root causes of migration. We're seeing record

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<v Speaker 4>levels of people, more people are on the move in

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<v Speaker 4>this hemisphere than that has been the case since World

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<v Speaker 4>War Two.

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<v Speaker 2>Top US officials, including Secretary of State Anthony Blincoln and

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<v Speaker 2>Homeland Security Secretary Alejandro Majorcis, will travel to Mexico in

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<v Speaker 2>the coming days to meet with President Lopez Oberdoor on

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<v Speaker 2>the issue. My guest is immigration law expertly On Fresco,

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<v Speaker 2>a partner at Holland and Knight Leon. There was a

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<v Speaker 2>record number of so called migrant encounters on the southern

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<v Speaker 2>border this year, with two point four million migrants crossing

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<v Speaker 2>the border. Is a Biden administration doing everything it has

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<v Speaker 2>the legal power to do.

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<v Speaker 5>So here's the main point to take from this, which

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<v Speaker 5>is there is undoubtedly one thing that the Biden administration

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<v Speaker 5>is not doing that. The Trump administration was doing that.

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<v Speaker 5>It theoretically has the legal ability to do, which is

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<v Speaker 5>to remain in Mexico. Program. Now, that would require cooperation

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<v Speaker 5>from Mexico, which Mexico currently states that it wouldn't provide. Now,

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<v Speaker 5>if you remember President Trump obtaining that cooperation by saying

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<v Speaker 5>he would create massive paris on cars entering from Mexico,

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<v Speaker 5>which scared the Mexican government into cooperating. It's unclear if

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<v Speaker 5>President Biden would use similar toxics, but the point is

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<v Speaker 5>there is that one arsenal lest where theoretically President Biden

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<v Speaker 5>could create some sort of threats such as sarasun cars,

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<v Speaker 5>which would create an incentive for Mexico to allow remain

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<v Speaker 5>in Mexico and then have all of those individuals placed

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<v Speaker 5>into Mexico waiting for their asylum case to be heard.

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<v Speaker 5>And so you'd have to obviously spend lots of money

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<v Speaker 5>on resources and creating facilities in Mexico for people to

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<v Speaker 5>wait in, and perhaps in creating locations where people could

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<v Speaker 5>obtain legal assistance to do their asylum claim and things

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<v Speaker 5>of this nature. But nevertheless, it's possible, but they're choosing

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<v Speaker 5>not to go down that route. What if it appears

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<v Speaker 5>they're trying to invest in at the moment, are these

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<v Speaker 5>bipartisan negotiations in the Senate to try to come up

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<v Speaker 5>with some statutory authority to do different things by statutes

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<v Speaker 5>than what is currently permitted as opposed to using remaining

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<v Speaker 5>in Mexico.

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<v Speaker 2>What are the sticking points in the Senate between the

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<v Speaker 2>Democrats and the Republicans.

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<v Speaker 5>The problem is this is a basically conceptual disagreement about

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<v Speaker 5>what the problem is visa visa border. The Democrats are

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<v Speaker 5>focused on solving the narrow issue of what is the

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<v Speaker 5>standard that people have to articulate in order to be

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<v Speaker 5>permitted entry into the United States, and they want to

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<v Speaker 5>raise that standard. And what they want to do, which

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<v Speaker 5>is sort of a big concession, is to say if

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<v Speaker 5>a certain amount of people are still coming after we

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<v Speaker 5>raise that standard, then we will actually trigger some sort

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<v Speaker 5>of Title forty two, like automatic expulsion until the numbers

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<v Speaker 5>start coming down. And so even if you had a

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<v Speaker 5>legitimate claim, you'd still have to make it in Mexico.

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<v Speaker 5>That's pretty much where the Democrats want to go, and

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<v Speaker 5>they don't want to do anything more. The Republicans view

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<v Speaker 5>this as sort of a larger problem, which is not

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<v Speaker 5>just that, but also all of the parole groups that

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<v Speaker 5>President Biden is allowing to enter the country currently from Cuba, Venezuela, Nicaragua, Haiti.

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<v Speaker 5>They want to eliminate all of that and say and

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<v Speaker 5>Ukraine also and say that pretty much that whole flow

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<v Speaker 5>has to be shut down. And the problem is the

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<v Speaker 5>Biden administration thinks that those legal parole programs are actually

0:13:53.440 --> 0:13:58.200
<v Speaker 5>lowering the demand for illegal immigration, whereas the Republicans think, no,

0:13:58.400 --> 0:14:02.200
<v Speaker 5>the illegal crossers are coming and it's only the people

0:14:02.200 --> 0:14:06.320
<v Speaker 5>who would have come legally who are applying for the

0:14:06.440 --> 0:14:10.280
<v Speaker 5>legal parole program but that this isn't really reducing any

0:14:10.280 --> 0:14:15.000
<v Speaker 5>flow of illegal immigration. And so for the Republicans, unless

0:14:15.000 --> 0:14:18.320
<v Speaker 5>you end these parole programs, they are claiming they won't

0:14:18.360 --> 0:14:21.320
<v Speaker 5>reach any deal. And for the Democrats this is sort

0:14:21.320 --> 0:14:25.280
<v Speaker 5>of viewed as a non starter because the Democrats are saying,

0:14:25.280 --> 0:14:31.040
<v Speaker 5>we're already making enough concessions on the asylum claims themselves

0:14:31.360 --> 0:14:35.160
<v Speaker 5>without achieving anything to help any immigrants, that we're not

0:14:35.200 --> 0:14:37.960
<v Speaker 5>going to go this final route and limit the president's

0:14:37.960 --> 0:14:40.680
<v Speaker 5>ability to parole people into the country.

0:14:41.520 --> 0:14:45.960
<v Speaker 2>I mean the buying administration by itself could raise the

0:14:46.600 --> 0:14:49.200
<v Speaker 2>what's required in the credible fear interview.

0:14:48.840 --> 0:14:53.160
<v Speaker 5>Right, Well, they've already done that visa the asylum. That's

0:14:53.160 --> 0:14:56.080
<v Speaker 5>certainly true. And like I said, what that's done is

0:14:56.120 --> 0:15:00.560
<v Speaker 5>it's sprinkled into withholding of removal, meaning now so everybody

0:15:00.600 --> 0:15:03.720
<v Speaker 5>has to use because of this asylum ban, the withholding

0:15:03.760 --> 0:15:06.600
<v Speaker 5>of removal. Though, remember the asylum ban is also being

0:15:06.640 --> 0:15:09.720
<v Speaker 5>litigated and the Ninth Circuit has shut that down for

0:15:09.720 --> 0:15:12.080
<v Speaker 5>a little while. The asylum ban, so it comes on

0:15:12.160 --> 0:15:15.160
<v Speaker 5>and it comes off. But even if the withholding of

0:15:15.240 --> 0:15:19.360
<v Speaker 5>removal standard is implemented, we're still talking about a standard

0:15:19.400 --> 0:15:23.320
<v Speaker 5>that permits something on average of fifty to sixty percent

0:15:23.360 --> 0:15:26.840
<v Speaker 5>of people to enter, as opposed to eighty percent, which

0:15:26.880 --> 0:15:31.400
<v Speaker 5>is the lower credible fear standard. And I think the

0:15:31.520 --> 0:15:34.920
<v Speaker 5>kinds of changes people are talking about implementing would bring

0:15:34.960 --> 0:15:38.680
<v Speaker 5>that number far lower and require far more evidence on

0:15:38.800 --> 0:15:42.120
<v Speaker 5>the upfront initial threshold, such that maybe you'd have a

0:15:42.200 --> 0:15:45.240
<v Speaker 5>twenty five to thirty percent chance of being able to

0:15:45.400 --> 0:15:48.400
<v Speaker 5>enter into the United States because you'd have to articulate

0:15:48.760 --> 0:15:53.400
<v Speaker 5>not just something that could eventually be a logical case

0:15:53.560 --> 0:15:57.640
<v Speaker 5>for asylum flash withholding of removal, but you'd actually have

0:15:57.760 --> 0:16:00.560
<v Speaker 5>to have some evidence on your person at the moment

0:16:00.920 --> 0:16:04.160
<v Speaker 5>when you arrive, or some other riight theory of a

0:16:04.280 --> 0:16:08.920
<v Speaker 5>well explained theory of your case such that that would

0:16:09.000 --> 0:16:10.760
<v Speaker 5>be the only way that would permit you to enter

0:16:10.800 --> 0:16:11.840
<v Speaker 5>the United States.

0:16:12.040 --> 0:16:17.080
<v Speaker 2>Because I was reading that three million people are awaiting

0:16:17.400 --> 0:16:21.080
<v Speaker 2>their immigration court hearings, so they're free to stay and

0:16:21.480 --> 0:16:25.240
<v Speaker 2>after six months legally work until they come before it judge.

0:16:25.560 --> 0:16:28.600
<v Speaker 2>And that's one of the reasons drawing so many people

0:16:28.960 --> 0:16:30.960
<v Speaker 2>to cross, because they know.

0:16:30.920 --> 0:16:34.920
<v Speaker 5>That that's absolutely right. The idea is a backlog. Begets

0:16:34.920 --> 0:16:38.600
<v Speaker 5>the backlog because the longer the backlog is, the more

0:16:39.000 --> 0:16:40.680
<v Speaker 5>you're going to have people wanting to come in to

0:16:40.760 --> 0:16:43.160
<v Speaker 5>exploit the backlog. Because if there's only a two month

0:16:43.240 --> 0:16:46.800
<v Speaker 5>backlog and you will have to spend twenty thousand dollars

0:16:46.840 --> 0:16:49.120
<v Speaker 5>to come into the US I legally and you'll get

0:16:49.200 --> 0:16:53.120
<v Speaker 5>deported in two months, that's not really encouraging people to come.

0:16:53.160 --> 0:16:55.880
<v Speaker 5>But if there's a five to six year backlog, which

0:16:55.920 --> 0:16:58.640
<v Speaker 5>is what we have now, people then can say, well,

0:16:58.680 --> 0:17:00.960
<v Speaker 5>even if I get ordered to poor five six years

0:17:01.000 --> 0:17:03.520
<v Speaker 5>from now, who cares, I was still able to come

0:17:03.520 --> 0:17:06.239
<v Speaker 5>and work for five or six years. I'll take that

0:17:06.400 --> 0:17:09.400
<v Speaker 5>risk and hopefully I won't even get supported in those

0:17:09.440 --> 0:17:11.800
<v Speaker 5>sext fights to six years. So that's one of the

0:17:11.840 --> 0:17:15.160
<v Speaker 5>problems is if the backlog begets the backlog, and at

0:17:15.160 --> 0:17:17.439
<v Speaker 5>some point people are gonna have to decide what to do,

0:17:17.520 --> 0:17:22.040
<v Speaker 5>because yes, it does seem very strange that you would

0:17:22.040 --> 0:17:24.840
<v Speaker 5>forgive those three to four million people and what could

0:17:24.880 --> 0:17:27.200
<v Speaker 5>end up being six million by the end of this year,

0:17:27.440 --> 0:17:29.880
<v Speaker 5>but it also seems very unlikely you're going to get

0:17:29.880 --> 0:17:33.240
<v Speaker 5>through those cases. And so at the end of the day,

0:17:33.320 --> 0:17:36.359
<v Speaker 5>you'd have to decide where are you gonna sort of

0:17:36.440 --> 0:17:39.600
<v Speaker 5>start from scratch so that we can make these cases

0:17:39.640 --> 0:17:42.640
<v Speaker 5>cases that can get done in a month or two

0:17:42.760 --> 0:17:46.000
<v Speaker 5>and not cases that take three, four or five six

0:17:46.119 --> 0:17:49.120
<v Speaker 5>years to do. And so that's the problem is there's

0:17:49.119 --> 0:17:52.119
<v Speaker 5>gonna have to be a realistic come to grips moment

0:17:52.560 --> 0:17:55.600
<v Speaker 5>with this system where people say, look, we can't have

0:17:55.720 --> 0:17:58.920
<v Speaker 5>backlogs that beget more backlog. We're gonna have to cut

0:17:58.960 --> 0:18:02.240
<v Speaker 5>some people off and say those people are not our priority,

0:18:02.280 --> 0:18:04.800
<v Speaker 5>and we're going to have to prioritize the people coming

0:18:04.840 --> 0:18:07.840
<v Speaker 5>in right this second and really focus on getting them

0:18:07.840 --> 0:18:09.080
<v Speaker 5>out as soon as possible.

0:18:09.720 --> 0:18:13.879
<v Speaker 2>And lawmakers went home over the holidays without the Senate

0:18:13.920 --> 0:18:16.640
<v Speaker 2>negotiations over immigration resolved.

0:18:16.960 --> 0:18:20.040
<v Speaker 5>Everybody's very pessimistic that there will be a deal made

0:18:20.240 --> 0:18:23.879
<v Speaker 5>because there's different factors. There's the factor of that the

0:18:23.920 --> 0:18:27.560
<v Speaker 5>Democrats aren't getting anything pro immigration in exchange for these

0:18:27.560 --> 0:18:31.720
<v Speaker 5>immigration enforcement provisions. So there's some segment of the Democratic

0:18:31.720 --> 0:18:34.119
<v Speaker 5>Party that says, well, what do I care about Ukraine funding?

0:18:34.240 --> 0:18:36.520
<v Speaker 5>That doesn't do anything for me? Why am I trading

0:18:36.960 --> 0:18:40.280
<v Speaker 5>Ukraine funding for immigration? It needs to be immigration for immigration.

0:18:40.880 --> 0:18:44.840
<v Speaker 5>So that's number one. Number two is the Republican fear

0:18:45.280 --> 0:18:48.680
<v Speaker 5>that whatever the agreement they will come to will immediately

0:18:48.760 --> 0:18:52.399
<v Speaker 5>be rejected by President Biden, such that then there's no

0:18:52.520 --> 0:18:55.080
<v Speaker 5>point because if he says this is a terrible agreement

0:18:55.440 --> 0:18:58.920
<v Speaker 5>and it doesn't do anything, then everybody will fall off

0:18:58.960 --> 0:19:01.520
<v Speaker 5>and all that work will be well. And so that

0:19:01.640 --> 0:19:05.480
<v Speaker 5>seems to be the double problem. Everybody's thought of company.

0:19:05.840 --> 0:19:09.920
<v Speaker 2>Well, we'll see if anything changes after the holiday. Thanks

0:19:09.960 --> 0:19:13.240
<v Speaker 2>so much, Leon, as always, that's Leon Fresco of Holland

0:19:13.320 --> 0:19:16.840
<v Speaker 2>and Knight. Coming up next the NC Double A on trial.

0:19:17.160 --> 0:19:20.760
<v Speaker 2>You're listening to Bloomberg Opening statements kicked off Monday in

0:19:20.800 --> 0:19:23.680
<v Speaker 2>a case that may shape the future of college sports.

0:19:24.119 --> 0:19:28.320
<v Speaker 2>A National Labor Relations Board administrative law judge is considering

0:19:28.400 --> 0:19:32.879
<v Speaker 2>whether the NCAA, the PAC twelve Conference, and the University

0:19:32.880 --> 0:19:38.600
<v Speaker 2>of Southern California violated federal law by misclassifying student football

0:19:38.640 --> 0:19:43.520
<v Speaker 2>and basketball players as non employees. N LRB attorneys say

0:19:43.560 --> 0:19:48.480
<v Speaker 2>that student athletes should legally be considered employees. The defendants

0:19:48.520 --> 0:19:52.560
<v Speaker 2>have denied all wrongdoing, and an attorney for the university

0:19:52.720 --> 0:19:56.760
<v Speaker 2>said that student athletes are not in service to the university.

0:19:57.119 --> 0:20:02.000
<v Speaker 2>To the contrary, the students are beneficial of USC services.

0:20:02.680 --> 0:20:05.720
<v Speaker 2>The case is one part of a patchwork of litigation

0:20:05.880 --> 0:20:09.720
<v Speaker 2>against the NCAA, which has come under heavy fire for

0:20:09.800 --> 0:20:13.720
<v Speaker 2>preventing players from sharing in the billions that universities make

0:20:13.800 --> 0:20:18.480
<v Speaker 2>on college athletics every year. Joining me is Martiney Dell,

0:20:18.680 --> 0:20:23.280
<v Speaker 2>co chair of Gulsen and Stores Sports law practice in

0:20:23.320 --> 0:20:27.720
<v Speaker 2>this trial. Is the NCAA's business model at stake?

0:20:29.320 --> 0:20:32.639
<v Speaker 1>You bet so. The whole purpose of the trial is

0:20:32.720 --> 0:20:37.840
<v Speaker 1>to challenge whether or not student athletes a term that

0:20:38.040 --> 0:20:43.280
<v Speaker 1>the National Liberations Board does not like our employees and

0:20:43.680 --> 0:20:48.040
<v Speaker 1>therefore not students for classification purposes under the National Labor

0:20:48.080 --> 0:20:52.240
<v Speaker 1>Relations Act. It ultimately held to be employees. This changes

0:20:52.280 --> 0:20:56.280
<v Speaker 1>the whole model of amateurism in very significant ways.

0:20:57.160 --> 0:21:00.719
<v Speaker 2>So why is it the NLRB that's bringing the lawsuit

0:21:01.320 --> 0:21:04.000
<v Speaker 2>instead of, you know, the individual players.

0:21:04.680 --> 0:21:07.800
<v Speaker 1>So there's a group of players. So it's actually both

0:21:08.040 --> 0:21:12.639
<v Speaker 1>a group of players complained under the title of a

0:21:12.920 --> 0:21:19.040
<v Speaker 1>concerned students and the National Labor Relations Board Region number

0:21:19.080 --> 0:21:23.080
<v Speaker 1>thirty one, which is Southern California, looked into it and

0:21:23.359 --> 0:21:27.359
<v Speaker 1>issued what they call an unfair labor practice. So this

0:21:27.480 --> 0:21:31.880
<v Speaker 1>trial is over the unfair labor practice issued by the

0:21:31.920 --> 0:21:36.480
<v Speaker 1>local district of the National Labor Relations Board against USC,

0:21:37.320 --> 0:21:40.040
<v Speaker 1>the PAC twelve Conference, and the NCAA.

0:21:40.480 --> 0:21:43.320
<v Speaker 2>It's very hard to keep track of what's going on

0:21:43.520 --> 0:21:48.280
<v Speaker 2>with college athletes as they're called at this point. I mean,

0:21:48.320 --> 0:21:52.200
<v Speaker 2>it seems like there's litigation going on here and there.

0:21:52.680 --> 0:21:54.520
<v Speaker 2>Is that true or is it just seen that way?

0:21:55.040 --> 0:21:58.439
<v Speaker 1>What it seems like is the reality. So let me

0:21:58.440 --> 0:22:00.399
<v Speaker 1>see if I can unpack that just the little bit.

0:22:00.440 --> 0:22:05.359
<v Speaker 1>There are antitrust suits flying around principally now in the

0:22:05.400 --> 0:22:10.399
<v Speaker 1>Northern District of California as to whether student athletes ought

0:22:10.440 --> 0:22:13.520
<v Speaker 1>to be paid to play. This is an outgrowth of

0:22:13.600 --> 0:22:17.959
<v Speaker 1>what we've previously talked about. The Olston case. Also in

0:22:18.119 --> 0:22:21.040
<v Speaker 1>the Northern District of California, there has been a class

0:22:21.080 --> 0:22:29.080
<v Speaker 1>certification of students for monetizing their image and likeness rights

0:22:30.040 --> 0:22:33.280
<v Speaker 1>during the period they were excluded from monetizing their name,

0:22:33.320 --> 0:22:38.560
<v Speaker 1>image and likeness rights. So those are two separate movements

0:22:38.600 --> 0:22:42.919
<v Speaker 1>going on. Third, we have the National Labor Relations Board

0:22:43.280 --> 0:22:47.560
<v Speaker 1>proceeding here, and fourth we have in the Third Circuit

0:22:47.600 --> 0:22:52.080
<v Speaker 1>Court of Appeals an appeal from the denial of a

0:22:52.200 --> 0:22:57.000
<v Speaker 1>motion to dismiss by the District Court judge in which

0:22:57.080 --> 0:23:00.720
<v Speaker 1>the District Court judge essentially held that the Fairly Standards

0:23:00.760 --> 0:23:03.400
<v Speaker 1>Act ought to apply to student athletes.

0:23:04.560 --> 0:23:09.640
<v Speaker 2>The NCAA recently changed the rules governing whether students can

0:23:09.680 --> 0:23:13.439
<v Speaker 2>profit from their names, images, and likenesses. Is that at

0:23:13.480 --> 0:23:14.800
<v Speaker 2>all an issue in this case?

0:23:15.280 --> 0:23:19.320
<v Speaker 1>So only marginally, And what I mean by that is

0:23:19.840 --> 0:23:24.760
<v Speaker 1>that the National Labor Relations Board uses the concept that

0:23:24.960 --> 0:23:28.480
<v Speaker 1>students can now monetize their name, image and likeness rights

0:23:29.040 --> 0:23:32.879
<v Speaker 1>as further evidence of the fact that they are more

0:23:33.080 --> 0:23:37.440
<v Speaker 1>like employees who are seeking to get part of that

0:23:37.600 --> 0:23:41.399
<v Speaker 1>revenue pot that the universities hold than they are as students.

0:23:41.760 --> 0:23:43.720
<v Speaker 1>But it's not directly impacted.

0:23:44.359 --> 0:23:48.520
<v Speaker 2>Let's talk about opening statements which took place on Monday,

0:23:49.160 --> 0:23:51.879
<v Speaker 2>tell us what the NLRB's position is.

0:23:52.760 --> 0:23:55.760
<v Speaker 1>So I think there needs to be a little bit

0:23:55.840 --> 0:23:59.760
<v Speaker 1>of background here as to what's going on. And it's

0:23:59.800 --> 0:24:02.639
<v Speaker 1>not a long history, but it goes back about nine

0:24:02.720 --> 0:24:06.760
<v Speaker 1>years here. So nine years ago, in twenty fourteen, the

0:24:06.840 --> 0:24:10.919
<v Speaker 1>National Labor Relations Board brought a case against Northwestern seeking

0:24:10.920 --> 0:24:13.960
<v Speaker 1>to declare student athletes as employees within the meaning of

0:24:14.000 --> 0:24:18.600
<v Speaker 1>the National Labor Relations Act. At the level we're talking

0:24:18.600 --> 0:24:21.879
<v Speaker 1>about now, which is the administrative ward judge level, the

0:24:22.000 --> 0:24:26.560
<v Speaker 1>NLRB was successful. According to the administrative law judge, the

0:24:27.359 --> 0:24:32.600
<v Speaker 1>NLRB successfully had shown that student athletes were working for

0:24:32.680 --> 0:24:37.040
<v Speaker 1>the university. This is the Northwestern football players upwards of

0:24:37.080 --> 0:24:42.560
<v Speaker 1>sixty hours per week during the season and upwards of

0:24:43.080 --> 0:24:48.280
<v Speaker 1>forty hours per week during off season periods doing football

0:24:48.400 --> 0:24:53.040
<v Speaker 1>that gave them less and less time for things like studies,

0:24:53.080 --> 0:24:59.399
<v Speaker 1>attending classes, and the other types of activities that college

0:24:59.440 --> 0:25:03.639
<v Speaker 1>students might partake in. Then, at the National Labor Relations

0:25:03.680 --> 0:25:06.880
<v Speaker 1>Board level, that is the top level, the National Labor

0:25:06.920 --> 0:25:12.040
<v Speaker 1>Relations Board vacated the award because it found that this

0:25:12.160 --> 0:25:18.320
<v Speaker 1>might destabilize labor relations. Reason for that is Northwestern is

0:25:18.359 --> 0:25:22.280
<v Speaker 1>a private university. It was at that point the only

0:25:22.359 --> 0:25:26.760
<v Speaker 1>private university in the Big Ten Conference, and the other

0:25:27.359 --> 0:25:31.120
<v Speaker 1>schools in the Big Ten Conference being public universities, were

0:25:31.119 --> 0:25:35.080
<v Speaker 1>not subject to the National Labor Relations Act, so therefore

0:25:35.119 --> 0:25:40.920
<v Speaker 1>a differential impact. That issue became dormant from twenty fifteen

0:25:41.000 --> 0:25:45.280
<v Speaker 1>until twenty twenty one. In twenty twenty one, we had

0:25:45.320 --> 0:25:50.760
<v Speaker 1>a cacophony of events. One was, as you noted just earlier,

0:25:51.520 --> 0:25:56.200
<v Speaker 1>you had name, image, and likeness monetization a number of states.

0:25:56.200 --> 0:25:58.679
<v Speaker 1>I think it was upwards of thirty past laws that

0:25:58.840 --> 0:26:03.440
<v Speaker 1>became effective in twenty twenty one, allowing student athletes to

0:26:03.480 --> 0:26:09.240
<v Speaker 1>monetize their name, image, and likeness rights without being penalized

0:26:09.280 --> 0:26:16.760
<v Speaker 1>by the NCAA. The NCAA dropped its prohibition against athletes

0:26:16.800 --> 0:26:20.919
<v Speaker 1>monetizing their name, image and likeness rights in late June

0:26:21.080 --> 0:26:23.800
<v Speaker 1>of twenty twenty one. In June of twenty twenty one,

0:26:24.040 --> 0:26:27.800
<v Speaker 1>the Supreme Court decided the Alston case, which found, among

0:26:27.880 --> 0:26:31.840
<v Speaker 1>other things, that the NCAAA could violate the antitrust laws,

0:26:32.080 --> 0:26:35.879
<v Speaker 1>had violated the anti trust laws and enjoyed certain provisions

0:26:35.960 --> 0:26:40.240
<v Speaker 1>of its compensation rules as being an antitrust violation. In addition,

0:26:41.040 --> 0:26:44.439
<v Speaker 1>President Biden appointed a new General Council for the National

0:26:44.520 --> 0:26:50.960
<v Speaker 1>Labor Relations Board, Jennifer Abruso and Miss Bruso issued in

0:26:51.000 --> 0:26:55.440
<v Speaker 1>September twenty twenty one an advisory stating that the view

0:26:55.520 --> 0:26:58.399
<v Speaker 1>that student athletes are employees within the meaning of the

0:26:58.480 --> 0:27:03.600
<v Speaker 1>National Labor Relations Act was one that she hoped would

0:27:03.600 --> 0:27:06.800
<v Speaker 1>be litigated and she was looking for a test case.

0:27:07.560 --> 0:27:11.639
<v Speaker 1>And in the wake of that, these USC student athletes

0:27:12.400 --> 0:27:17.200
<v Speaker 1>filed a petition which was adopted by the Region thirty

0:27:17.240 --> 0:27:20.520
<v Speaker 1>one director, and that'smuth subject of the hearings this week.

0:27:21.359 --> 0:27:25.600
<v Speaker 1>In short, the National Labor Relations Board is claiming that

0:27:25.640 --> 0:27:31.119
<v Speaker 1>the student athletes are employees. By calling them student athletes,

0:27:31.640 --> 0:27:35.199
<v Speaker 1>the school is misclassifying their status and they should be

0:27:35.400 --> 0:27:39.520
<v Speaker 1>entitled therefore to all the rights and benefits of the

0:27:39.600 --> 0:27:44.960
<v Speaker 1>National Labor Relations Act, including the right to unionize, the

0:27:45.080 --> 0:27:49.440
<v Speaker 1>right to file unfair labor practice charges, and the right

0:27:49.520 --> 0:27:52.879
<v Speaker 1>to seek and use the economic weapons of the National

0:27:52.960 --> 0:27:56.280
<v Speaker 1>Labor Relations Act, including the right to strike.

0:27:57.280 --> 0:28:02.359
<v Speaker 2>And what is the response of u USC. What's USC's case.

0:28:03.240 --> 0:28:09.120
<v Speaker 1>First, the students are students and primarily and not employees.

0:28:09.520 --> 0:28:12.320
<v Speaker 1>They go to school, they get an education, they're giving

0:28:12.359 --> 0:28:16.320
<v Speaker 1>grant and aids to get an education. Secondly, that USC

0:28:16.359 --> 0:28:18.960
<v Speaker 1>should not be classified as an employer. Within the meeting

0:28:19.080 --> 0:28:20.080
<v Speaker 1>of the Act.

0:28:20.560 --> 0:28:25.760
<v Speaker 2>The first witnesses were former USC football players, and they

0:28:26.280 --> 0:28:33.000
<v Speaker 2>described how the program officials basically controlled their lives almost

0:28:33.000 --> 0:28:34.719
<v Speaker 2>all year, not just at school.

0:28:35.240 --> 0:28:37.880
<v Speaker 1>That's not a surprise if we look back to the

0:28:37.920 --> 0:28:42.800
<v Speaker 1>Northwestern case, that is the same proof the NLRB adduced,

0:28:43.160 --> 0:28:47.160
<v Speaker 1>and it shows that students who are athletes, particularly in

0:28:47.240 --> 0:28:51.800
<v Speaker 1>the football program, in the basketball program, the revenue generating sports,

0:28:51.880 --> 0:28:55.280
<v Speaker 1>are required to spend a lot of time upwards of

0:28:55.440 --> 0:28:59.200
<v Speaker 1>forty to sixty hours per week throughout the school year

0:28:59.600 --> 0:29:05.000
<v Speaker 1>on revenue generating activities that is, their sport for the university,

0:29:05.360 --> 0:29:09.240
<v Speaker 1>without reaping any of the benefits of creating those revenues.

0:29:09.720 --> 0:29:12.520
<v Speaker 2>You know, to an outside observer, it sounds like the

0:29:12.560 --> 0:29:16.840
<v Speaker 2>student athletes have the best end of this argument. Does

0:29:16.840 --> 0:29:18.040
<v Speaker 2>it appear that way to you?

0:29:19.280 --> 0:29:23.640
<v Speaker 1>I think there is a very distinct argument which the

0:29:23.760 --> 0:29:27.200
<v Speaker 1>NLRB is putting to the side, which is what are

0:29:27.240 --> 0:29:31.840
<v Speaker 1>the educational benefits that these students are getting. If you

0:29:31.960 --> 0:29:34.719
<v Speaker 1>are a student athlete, you're not going to the school

0:29:34.920 --> 0:29:39.920
<v Speaker 1>simply because of its football or basketball program. Hopefully you're

0:29:39.920 --> 0:29:42.840
<v Speaker 1>going there because of the opportunity to get an education too.

0:29:43.320 --> 0:29:47.320
<v Speaker 2>This is a hearing before an administrative law judge. What

0:29:47.520 --> 0:29:49.280
<v Speaker 2>happens next? What's the sequence?

0:29:50.000 --> 0:29:53.400
<v Speaker 1>So once the administrative law judge completes the hearings, which

0:29:53.440 --> 0:29:56.960
<v Speaker 1>is going to take several months given the schedule, the

0:29:57.000 --> 0:30:00.480
<v Speaker 1>administrative law judge issues of decision. The decision can then

0:30:00.520 --> 0:30:05.000
<v Speaker 1>be appealed to the full National Labor Relations Board in Washington, DC,

0:30:05.720 --> 0:30:09.960
<v Speaker 1>which then issues its own decision, and that may be appealed,

0:30:09.960 --> 0:30:12.880
<v Speaker 1>I believe, to a federal circuit Court of Appeals.

0:30:13.160 --> 0:30:18.080
<v Speaker 2>NCAA President Charlie Baker. Earlier this month, there was a

0:30:18.080 --> 0:30:23.200
<v Speaker 2>proposal to directly compensate student athletes. He floated that concept

0:30:23.200 --> 0:30:26.560
<v Speaker 2>in a letter. Would that solve this problem? And is

0:30:26.600 --> 0:30:27.560
<v Speaker 2>that going anywhere?

0:30:29.360 --> 0:30:32.400
<v Speaker 1>Let me take that in reverse order. Okay, I do

0:30:32.480 --> 0:30:35.400
<v Speaker 1>not know if it is going anywhere. It's an intriguing

0:30:35.560 --> 0:30:40.120
<v Speaker 1>proposal because there's an additional part to that, which is

0:30:40.640 --> 0:30:45.320
<v Speaker 1>that Governor Baker has floated the idea of creating a

0:30:45.480 --> 0:30:49.000
<v Speaker 1>new power division, maybe out of the Power five, but

0:30:49.080 --> 0:30:54.280
<v Speaker 1>a new power division which would compensate athletes. It does

0:30:54.320 --> 0:30:58.320
<v Speaker 1>not provide for compensation of all athletes. In all sports

0:30:58.640 --> 0:31:00.120
<v Speaker 1>at all schools.

0:31:00.480 --> 0:31:03.160
<v Speaker 2>And tell us what it would look like if the

0:31:03.280 --> 0:31:10.000
<v Speaker 2>National Labor Relations Board had jurisdiction over student athletes as employees.

0:31:10.840 --> 0:31:13.000
<v Speaker 1>I think what we need to look at here are

0:31:13.600 --> 0:31:17.880
<v Speaker 1>that a system in which the National Labor Relations Board

0:31:17.960 --> 0:31:22.040
<v Speaker 1>would assume jurisdiction over students as employees would have the

0:31:22.360 --> 0:31:26.880
<v Speaker 1>ability to create differential impacts on students and schools in

0:31:26.960 --> 0:31:29.920
<v Speaker 1>three ways. One, different roles for schools in the same

0:31:29.960 --> 0:31:33.200
<v Speaker 1>conference because you have schools in the same conference which

0:31:33.200 --> 0:31:36.440
<v Speaker 1>are private and some which are public. USC, for example,

0:31:36.520 --> 0:31:39.480
<v Speaker 1>is joining the Big Ten. The Big Ten will now

0:31:39.560 --> 0:31:42.920
<v Speaker 1>have two private schools, USC and Northwestern, and the rest

0:31:42.920 --> 0:31:45.560
<v Speaker 1>of all public schools which are not subject to the

0:31:45.680 --> 0:31:51.400
<v Speaker 1>National Labor Relations Board jurisdiction. Second is differential impact on frankly,

0:31:51.480 --> 0:31:55.000
<v Speaker 1>all economically challenged students who look to college athletics as

0:31:55.000 --> 0:31:59.040
<v Speaker 1>means to get a higher education by possibly having the

0:31:59.040 --> 0:32:02.600
<v Speaker 1>schools get rid of anton aid programs for them because

0:32:02.600 --> 0:32:05.880
<v Speaker 1>they can't afford it under a new regime. And third

0:32:06.040 --> 0:32:10.960
<v Speaker 1>is a potential differential impact on women who may find

0:32:11.000 --> 0:32:14.360
<v Speaker 1>their sports downsized as a result of schools not being

0:32:14.400 --> 0:32:17.440
<v Speaker 1>able to afford a full college program thanks Marty.

0:32:17.720 --> 0:32:20.800
<v Speaker 2>That's Martiny Dell, coacher of the sports law practice at

0:32:20.800 --> 0:32:23.680
<v Speaker 2>Gulston and Stores. And that's it for this edition of

0:32:23.680 --> 0:32:26.320
<v Speaker 2>The Bloomberg Law Show. Remember you can always get the

0:32:26.400 --> 0:32:29.640
<v Speaker 2>latest legal news on our Bloomberg Law Podcast. You can

0:32:29.680 --> 0:32:33.880
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0:32:33.920 --> 0:32:38.080
<v Speaker 2>Bloomberg dot com, slash podcast, Slash Law, And remember to

0:32:38.120 --> 0:32:41.160
<v Speaker 2>tune into The Bloomberg Law Show every weeknight at ten

0:32:41.240 --> 0:32:45.000
<v Speaker 2>pm Wall Street Time. I'm June Grosso and you're listening

0:32:45.120 --> 0:32:45.760
<v Speaker 2>to Bloomberg