California, Dept. of Social Services v. Shalala, CIV.S99-0335 FCD JFM.
| Decision Date | 01 September 2000 |
| Docket Number | No. CIV.S99-0335 FCD JFM.,CIV.S99-0335 FCD JFM. |
| Citation | 115 F.Supp.2d 1191 |
| Parties | State of CALIFORNIA, DEPARTMENT OF SOCIAL SERVICES, Plaintiff, v. Donna SHALALA, Secretary of Health and Human Services, Defendant. |
| Court | U.S. District Court — Eastern District of California |
Bill Lockyer, Charlton G. Holland III, Frank S. Furtek, Thomas R. Yanger, Attorney
General's Office of the State of California, Sacramento, CA, for the Plaintiff.
Marjorie Shelvy, Yolanda Arias, Silvia Argueta, Erin Shaffer, Legal Aid Foundation of Los Angeles, Los Angeles, CA, Barbara Jones, Legal Aid Foundation of Los Angeles, Los Angeles, CA, for the Intervenor.
Bruce Vignery, AARP Foundation Litigation, Michael Schuster, AARP, Washington, DC, for Amicus Curiae American Association of Retired Persons.
David W. Ogden, Sheila M. Lieber, W. Scott Simpson, United States Department of Justice, Washington, D.C., Paul L. Seave, Joseph E. Maloney, United States Attorney's Office, Sacramento, CA, for the Defendant.
Defendant Secretary of Health and Human Services Donna Shalala ("the Secretary" or "HHS") moves this court for an order dismissing this action pursuant to Federal Rule of Civil Procedure 12(b)(6), on the ground that plaintiff, the California Department of Social Services ("DSS"), fails to state a claim upon which relief may be granted. The DSS, intervenor Enedina Rosales ("Intervenor") and amicus curiae American Association of Retired Persons ("AARP") filed briefs in opposition to the Secretary's motion.
Also before the court is the Intervenor's motion for summary judgment. The DSS joins in the Intervenor's motion.
For the reasons stated below,1 the court GRANTS the Secretary's motion to dismiss and DENIES the motion of Intervenor and DSS for summary judgment.
This case concerns eligibility for benefits under the federal-state Aid to Families with Dependent Children-Foster Care Program ("AFDC-FC"). The AFDC-FC Program, enacted as Title IV-E of the Social Security Act, provides funds to assist with certain costs of foster care for dependent children. See 42 U.S.C. §§ 672, 674, 675(4)(A).2 The program is jointly funded by the federal and state governments, and the funds are disseminated by state agencies. See id. §§ 670-72, 674. To receive matching funds, states must have a foster care plan in place that meets federal requirements, and that disburses funds in accordance with that plan. See id. § 671(a). If the state plan complies with the mandatory federal requirements, the Secretary must approve the plan. See id. § 671(b).
The California Department of Social Services has a federally-approved foster care plan, and disseminates federal and state funds under that plan. The State's approved plan provides that, to be eligible for AFDC-FC, a child must have been eligible for AFDC with the parent or relative from whom she was removed. See Pltf's Complaint for Review of Admin. Action, filed Feb. 24, 1999, Exh. 1 (hereinafter "Complaint"). Thus, if the child was ineligible for AFDC benefits in the home of removal, she will remain ineligible for AFDC-FC benefits in the foster home, even if she would otherwise be eligible for AFDC in the foster home.
On May 20, 1997, the California Court of Appeal, Second District, issued a decision in Capitola Land, et al. v. Anderson, 55 Cal.App.4th 69, 63 Cal.Rptr.2d 717 (1997). Pending before the Land court were three separate cases granting writs of mandate, holding that the DSS regulations implementing the AFDC-FC Program were contrary to the plain meaning of Section 672(a). Section 672(a) provides as follows:
Each State with a plan approved under [AFDC] shall make foster care maintenance payments ... with respect to a child who would meet the requirements of [the AFDC program] but for his removal from the home of a relative ... if —
. . . . .
(4) such child —
(A) received aid under the State plan ... in or for the month in which [a voluntary placement] agreement was entered into or court proceedings leading to the removal of such child from the home were initiated, or
(B) (i) would have received such aid in or for such month if application had been made therefor, or (ii) had been living with a relative ... within six months prior to the month in which such agreement was entered into or such proceedings were initiated, and would have received such aid in or for such month if in such month he had been living with such a relative and application therefor had been made.
42 U.S.C. § 672(a) (1996). The DSS regulations mirrored the Secretary's interpretation of Section 672(a). Under the Secretary's interpretation of Section 672(a), AFDC "linkage" is established if the child was eligible for AFDC in the home of the parent during the month the petition for removal is filed, and either (1) was living in the home of the parent or relative from whom the child was removed; or (2) had been living with that parent or relative within the six months prior to the filing of the removal petition. However, if a child is living with a relative other than the one from whom the child is being removed, the child is ineligible for AFDC-FC payments if removal proceedings are initiated more than six months after the date the child is no longer living with the parent.
The Land court concluded that AFDC linkage could be established if the child was living with a relative, other than the one from whom the child was removed, and was eligible for AFDC in the home of that relative in the month the petition for removal was filed. See Capitola Land, 55 Cal.App.4th at 84, 63 Cal.Rptr.2d 717. Accordingly, it held that the DSS requirement violated the AFDC-FC statute.3
On December 23, 1997, DSS submitted a proposed State Plan Amendment to HHS. See Complaint, Exh. 1. The proposed change consisted of an All-County Letter intended to implement the Land decision, along with representations that DSS would subsequently amend and submit for review its state regulations implementing Land. On February 10, 1998, DSS received notice from the regional office of HHS that the State Plan Amendment was being forwarded to the central office with a recommendation that the Amendment be disapproved. See id. Exh. 2. On April 3, 1998, the HHS regional administrator notified DSS it was disapproving the Amendment. See id. Exh. 3.
After being notified of HHS' disapproval of its proposed State Plan Amendment implementing the Land decision, DSS filed a petition for review directly with the Ninth Circuit. On February 2, 1999, the Ninth Circuit dismissed the appeal for lack of jurisdiction. See California v. Shalala, 166 F.3d 1019 (9th Cir.1999). The court observed, however, that a district court would have jurisdiction to review of the Secretary's actions pursuant to the Administrative Procedure Act, 5 U.S.C. §§ 701-06 ("APA"). See id. at 1020.
On August 13, 1997, Linda Allen filed a petition for writ of mandate in California state court, seeking to compel the State to provide AFDC-FC benefits. See Linda Allen v. Eloise Anderson, Case No. BS046627 (LA Cty. Sup.Ct., filed August 13, 1997). On February 23, 1998, DSS filed a cross-petition and cross-complaint against the Secretary in order to secure matching funds for any payments that might become owing due to court order. The Secretary then removed the action to the district court for the Central District of California. See Linda Allen v. Eloise Anderson, Case No. 98-2128 CBM (C.D. Cal., filed May 1, 1998).
On October 5, 1998, the district court granted the Secretary's motion to dismiss the cross-claim and cross-petition. DSS filed a notice of appeal with the Ninth Circuit on December 4, 1998. The Ninth Circuit dismissed the appeal as moot on October 13, 1999, in light of the August 21, 1998 enactment of California Welfare and Institutions Code section 11402.1.4
The DSS, on behalf of the State of California, filed this action on February 24, 1999, seeking administrative review of the Secretary's disapproval of the State Plan Amendment. See 5 U.S.C. § 702. Enedina Rosales, a court-appointed foster parent for her grandson Anthony, intervened in this action by order filed June 24, 1999.
On October 13, 1999, the parties stipulated to stay this action during the pendency of the Allen appeal. On November 1, 1999, the parties notified this court of the outcome of the Allen appeal, but requested that the stay continue, given DSS's plan to move to vacate the district court judgment in Allen. The DSS so moved, and on March 17, 2000, the motion to vacate was granted by the Allen court.
The parties then submitted a Joint Status Report on April 3, 2000, requesting that the stay be lifted in this matter. The court approved the request, and re-calendared the Secretary's previously-filed motion to dismiss. Subsequently, on April 14, 2000, Intervenor Rosales filed a motion for summary judgment, in which the DSS joined. Accordingly, this court now addresses the merits of the two pending cross-motions.
This court's review of the Secretary's decision is governed by the Administrative Procedure Act ("APA"). See 5 U.S.C. §§ 701-06. The APA provides that the court may review a final agency action to determine if such action was "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law." 5 U.S.C. § 706(2)(A); Citizens to Preserve Overton Park v. Volpe, 401 U.S. 402, 414, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971); Regents of the Univ. of Calif v. Shalala, 82 F.3d 291, 294 (9th Cir.1996) (quotation omitted). "Review under the `arbitrary and capricious' standard is narrow, and a court may not substitute its judgment for that of the agency." Sierra Pacific Indus. v. Lyng, 866 F.2d 1099, 1105 (9th Cir.1989) (citation omitted).
In questions of statutory interpretation, a federal...
To continue reading
Request your trial
-
Com. of Pa., Dept. of Public Welfare v. U.S.
...concluded that HHS' interpretation of section 672(a) was reasonable and granted its motion for summary judgment. California v. Shalala, 115 F.Supp.2d 1191 (E.D.Cal. 2000). On appeal, the Ninth Circuit Court of Appeals reversed the district court's decision; it assumed without deciding that ......
-
State of Cal. Dept. of Social Servs. v. Thompson, 00-17266.
...dismissed Allen as moot, DSS successfully moved to have the district court opinion in Allen vacated. California v. Shalala, 115 F.Supp.2d 1191, 1194 (E.D.Cal.2000)[hereinafter "California"]. The parties in this action then requested that the stay be lifted, and Ms. Rosales filed a motion fo......