Gilman v. Helms, Civ. No. 83-535-D.

• Court: United States District Courts. 1st Circuit. United States District Courts. 1st Circuit. District of New Hampshire
• Citation: 606 F. Supp. 644
• Docket Number: Civ. No. 83-535-D.
• Parties: Linda GILMAN, on her own behalf and on behalf of her two minor children, and Cathleen English, on her own behalf and on behalf of her two minor children, and all other similarly situated persons, and Victoria Perez, on her own behalf and on behalf of her two minor children and on behalf of all other persons similarly situated v. Edgar HELMS, Jr., in his official capacity as Commissioner of New Hampshire Department of Health and Welfare, and Richard A. Chevrefils, in his official capacity as Director of the New Hampshire Division of Welfare.
• Decision Date: 18 April 1985

606 F. Supp. 644

Linda GILMAN, on her own behalf and on behalf of her two minor children, and Cathleen English, on her own behalf and on behalf of her two minor children, and all other similarly situated persons, and Victoria Perez, on her own behalf and on behalf of her two minor children and on behalf of all other persons similarly situated
v.
Edgar HELMS, Jr., in his official capacity as Commissioner of New Hampshire Department of Health and Welfare, and Richard A. Chevrefils, in his official capacity as Director of the New Hampshire Division of Welfare.

Civ. No. 83-535-D.

United States District Court, D. New Hampshire.

April 18, 1985.

606 F. Supp. 645

Ronald B. Eskin, N.H. Legal Assistance, Manchester, N.H., for plaintiffs.

Marc R. Scheer, Asst. Atty. Gen., Concord, N.H., for defendants.

OPINION

DEVINE, Chief Judge.

This is a class action wherein plaintiffs, recipients of public assistance benefits, challenge the administration of the Aid to Families with Dependent Children ("AFDC"), food stamps, and Medicaid programs by defendants, officials of the New Hampshire Department of Health and Welfare. Plaintiffs, representing persons

606 F. Supp. 646

whose food stamps or Medicaid benefits are terminated as a result of an alleged failure to comply with AFDC monthly reporting requirements, challenge New Hampshire's public assistance program as violative of controlling federal statutes as well as the Due Process Clause of the Fourteenth Amendment to the United States Constitution. The parties have filed cross motions for partial summary judgment on the statutory issues alone: first, does the Federal Food Stamp Act, 7 U.S.C. §§ 2011, et seq. ("Food Stamp Act"), prohibit New Hampshire's policy of terminating food stamp benefits prior to a requested fair hearing where a recipient has allegedly failed to comply with AFDC/food stamp monthly reporting requirements?; and, second, does the federal Medicaid statute, 42 U.S.C. § 1396a, prohibit New Hampshire's policy of refusing to automatically redetermine the Medicaid eligibility of a recipient under the medically needy Medicaid program where that person is to be terminated from Medicaid benefits under the categorical assistance (AFDC) program for failure to comply with AFDC monthly reporting requirements

Before proceeding on the merits, the Court considers an important jurisdictional issue. Plaintiffs have founded jurisdiction upon both 28 U.S.C. § 1331, the federal question jurisdiction statute, and § 1343(3), the Civil Rights Act (42 U.S.C. § 1983) jurisdiction statute. However, section 1343(3) grants federal court jurisdiction over an action to redress the deprivation, under color of state law, of rights secured by the United States Constitution or by a federal statute providing for equal rights. The jurisdictional grant of section 1343(3) does not encompass a claim that a state welfare action is invalid because it conflicts with federal statutory entitlement programs, such as the Social Security Act. Chapman v. Houston Welfare Rights Organization, 441 U.S. 600, 602-03, 99 S.Ct. 1905, 1908, 60 L.Ed.2d 508 (1979). As the parties address only the federal statute consistency issue, the Court need only proceed to a determination that jurisdiction is properly founded upon 28 U.S.C. § 1331, and does not address the issue of whether jurisdiction may also be premised properly upon 42 U.S.C. § 1343(3).¹

For the reasons stated below, the Court finds that plaintiffs' motion for summary judgment must be granted because the State of New Hampshire's policies concerning payment of interim food stamp benefits pending a fair hearing and concerning redetermination of Medicaid eligibility prior to Medicaid benefits termination are inconsistent with federal statutory requirements. In ruling on the motion, the Court finds that there are no genuine issues of material fact requiring trial and that plaintiffs are entitled to judgment as a matter of law. Rule 56, Fed.R.Civ.P.

The State of New Hampshire participates in the food stamp,² AFDC,³ and Medicaid⁴ programs, which are federal-state cooperative public assistance programs. The food stamp program is designed to supplement low-income household food purchasing power in order to assure adequate levels of nutrition. 7 U.S.C. § 2011; Dupler v. City of Portland, 421 F.Supp. 1314, 1318 (D.Me. 1976). The AFDC program provides financial assistance to needy dependent children and the relatives who live with them. 42 U.S.C. § 601; Heckler v. Turner, ___ U.S. ___, ___, 105 S.Ct. 1138, 1141-42, 84 L.Ed.2d 138 (U.S.1985); Shea v. Vialpando, 416 U.S. 251, 254, 94 S.Ct. 1746, 1750,

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40 L.Ed.2d 120 (1974). The Medicaid program is designed to provide certain medical treatment costs to needy persons, including recipients of AFDC benefits. 42 U.S.C. § 1396; Schweiker v. Hogan, 457 U.S. 569, 571, 102 S.Ct. 2597, 2600, 73 L.Ed.2d 227 (1982). As a participating state, New Hampshire must comply with all requirements imposed by the Food Stamp and Social Security Acts and implementing regulations. 7 U.S.C. § 2014(b); 42 U.S.C. §§ 602 and 1396a. Schweiker v. Gray Panthers, 453 U.S. 34, 37, 101 S.Ct. 2633, 2636, 69 L.Ed.2d 460 (1981); Shea v. Vialpando, supra, 416 U.S. at 253, 94 S.Ct. at 1750; Massachusetts Association of Older Americans v. Sharp, 700 F.2d 749, 750 (1st Cir.1983); Dupler v. City of Portland, supra, 421 F.Supp. at 1318

Federal law requires that state food stamp and AFDC program plans include monthly reporting requirements for most households receiving these benefits. See 7 U.S.C. § 2015(c)(1) and 42 U.S.C. § 602(a)(14). In 1982 Congress amended the Food Stamp Act, 7 U.S.C. § 2015(c), to permit the Secretary of Agriculture to waive the § 2015(c) food stamp monthly reporting requirements for state plans to permit states to create a combined reporting program for households receiving both food stamps and AFDC benefits. Omnibus Budget Reconciliation Act of 1982, section 156, P.L. No. 97-253, 96 Stat. 763 ("OBRA-1982"). 7 U.S.C. § 2015(c) provides:

(5) The Secretary is authorized, upon the request of a State agency, to waive any provision of this subsection—to the extent necessary to permit the State agency to establish periodic reporting requirements for the purposes of this chapter which are similar to the periodic reporting requirements established under the State plan approved under part A of title IV of the Social Security Act (42 U.S.C. § 601, et seq.) in that State.

The legislative history accompanying OBRA-1982 indicates only that this waiver provision was designed to streamline redundant state assistance program reporting requirements.

Reporting requirements

Section 111 would amend section 6(c) of the Act to allow the Secretary to waive, upon request from the State agency, provisions of the Act concerning periodic reporting by households. Waivers would be granted as necessary to permit the State agency to establish periodic reporting requirements for purposes of the Act that are similar to the periodic reporting requirements established under the State plan under title IV-A of the Social Security Act for aid to families with dependent children. However, the Secretary would not be permitted to waive the provisions which exempt certain households from the requirement to submit periodic reports. These exempt households include migrant households and households with no earned income in which all members are elderly or disabled.

Sen.Rep. No. 504, 97th Cong., 2d Sess., U.S.Code Cong. & Admin.News 1982, pp. 1641, 1728. New Hampshire applied for and received a waiver from the Secretary of Agriculture permitting New Hampshire "to follow the AFDC procedure for response to the monthly report and termination of the case for non-reporting". In implementing this waiver, New Hampshire enacted the following five-step procedure for reporting by food stamp and AFDC benefit⁵ recipients and for hearings on disputes arising thereunder:

1. On or about the 30th of each month, the Division of Welfare mails a monthly report form to the recipient, which report advises "If your report is received incomplete or late you may not receive next monthly benefits.... If you do not report, you will not receive assistance next month and your case will be closed." Public Assistance Manual ("PAM") § 3414.6; Exhibit B, Defendants' September 4, 1984,

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Memorandum in Support of Defendants' Cross-Motion for Partial Summary Judgment (hereinafter "Defendants' Sept. 4 Memo")

2. If the recipient returns a completed form within ten days (approximately 10th of month), the recipient continues to receive uninterrupted benefits providing the form information indicates recipient remains eligible. PAM §§ 3414.7(a) and 3414.8(b).

3. If the reporting form is timely returned but is incomplete, the State returns the form to the recipient with a "Notice of Case Closing" advising him that unless a complete form is returned by the due date or the extended due date (approximately 20th of month), recipient's AFDC financial and medical assistance and food stamp benefits will be terminated as of the next month. The Notice further advises the recipient that he may request a fair hearing to contest the State's determination, but that such hearing request must be made within ten days, accompanied by a completed monthly report form in order that recipient's benefits may be continued pending hearing. (If recipient contests the State's determination concerning lack of good cause for late reporting, recipient need only submit a hearing request.) PAM § 3414.8(c) and (f); § 4600.24-.25; Exhibit C, Defendants' Sept. 4 Memo.

4. If a completed form is not received by the State by the extended due date (20th of month), the recipient's benefits are terminated immediately (absent waiver for good cause). A notice of decision and appeal rights are sent to the recipient. The recipient may request a fair hearing after the extended due date (20th of month), but will...