Shackelford v. Social Service Bd. of North Dakota

• Decision Date: 27 October 1980
• Docket Number: No. 9798,9798
• Citation: 299 N.W.2d 549
• Parties: Connie L. SHACKELFORD, Appellant, v. SOCIAL SERVICE BOARD OF NORTH DAKOTA, Appellee. Civ.
• Court: North Dakota Supreme Court

Page 549

299 N.W.2d 549

Connie L. SHACKELFORD, Appellant, v. SOCIAL SERVICE BOARD OF NORTH DAKOTA, Appellee.

Civ. No. 9798.

Supreme Court of North Dakota.

Oct. 27, 1980.

Edwin W. F. Dyer, III, Legal Assistance of North Dakota, Bismarck, for appellant.

Blaine L. Nordwall, Bismarck, for appellee Social Service Bd. of North Dakota.

VANDE WALLE, Justice.

Connie Shackelford appeals from a decision of the district court of Burleigh County upholding a determination of the Social Service Board of North Dakota (SSB) to terminate Shackelford's Aid to Families With Dependent Children (AFDC) benefits effective March 1, 1978. We affirm.

A detailed chronological account of the facts is vital to a determination of the issues raised on this appeal.

On January 4, 1978, Shackelford's application for AFDC was approved by the Ward County Social Service Board (WCSSB). Her eligibility was based upon a verified pregnancy. Her AFDC grant was approved effective January 1, 1978, and included coverage under the medical assistance program effective December 1, 1977. On February 12, 1978, Shackelford, as the result of a miscarriage, entered a Minot hospital. Due to complications, Shackelford remained hospitalized through March 29, 1978. The day after her hospitalization Shackelford notified an eligibility technician for WCSSB of the miscarriage and was informed that her eligibility for AFDC would expire at the end of February and her case would be closed effective March 1, 1978. On the same day she received the call from Shackelford, the eligibility technician prepared and sent to Shackelford an advance notice of the closing of the case as required by law.

On March 27, 1978, SSB received notice from Shackelford that she was exercising her right to appeal WCSSB's decision to close her case and requesting a hearing on the matter. In her notice of appeal, Shackelford stated as her only grounds "I was hospitalized on February 12, 1978 due to miscarriage, am still in the hospital due to complications arising from miscarriage, unable to work, feel that should be covered for medical expenses at least, since my confinement is as a direct result of pregnancy. This expense does not cease on March 1 and it has been one continuous confinement due to complications."

For a variety of reasons, including Shackelford's own request and her relocation from Minot to Bismarck, a fair hearing ¹ on the matter was set and postponed on three occasions. Finally, on May 4, 1978, the fair hearing was held in Bismarck. Among those in attendance were Shackelford, her attorney, and her mother. As is the practice when these hearings are held in counties other than the county in which the dispensing county's social service board is located, the WCSSB asked an employee of the county social service board in the county in which the hearing was to take place (Burleigh County, in this case) to represent WCSSB at the hearing. Before the issue cited in Shackelford's notice of appeal could be addressed, her attorney asked the Burleigh County Social Service Board employee if an advance notice of the closing of the case had been sent to Shackelford. The employee had a copy of the advance notice but could not testify regarding whether or not it had been properly mailed to Shackelford. Both Shackelford and her mother testified that the advance notice was never received by Shackelford, her mother, nor anyone on Shackelford's behalf. Because of this testimony, the appeals referee recommended to the SSB that the decision of WCSSB to close Shackelford's case be reversed. At its May 17-18, 1978, meeting the SSB acted in accordance with the appeals referee's recommendation.

On May 26, 1978, the eligibility supervisor for WCSSB wrote to counsel for the SSB. In her letter the supervisor stated that it was the WCSSB's position that Shackelford gave false testimony regarding advance notice at the hearing. The supervisor stated:

"... We are not in agreement with this decision and would like your legal opinion on what we can do to reconsider the decision. It is noted on the decision received that it states, 'You may request a rehearing within 15 days'. Does this apply only to the appellant or does the county have the same right?"

Shortly after the receipt of this letter, an appeals referee for SSB recommended to SSB that it grant WCSSB's "written request for a rehearing relative to the Social Service Board of North Dakota's May 19th, 1978, decision to reverse Ward County's proposed closing of appellant's case." In the meantime counsel for SSB telephoned the eligibility supervisor for WCSSB and informed her that SSB would take action at its June 1978 meeting relative to her May 26, 1978, letter of inquiry. Through some inadvertence the issue raised in the eligibility supervisor's letter was not presented at the June 1978 SSB meeting and was not acted upon until the July 1978 meeting. At the July meeting it was decided that "... the Ward County Social Service Board's request for a rehearing ... be granted."

On July 27, 1978, an administrative deposition was taken. The purpose of this deposition was to gather information relevant to the mailing of the advance notice to Shackelford. The eligibility technician who spoke with Shackelford on the phone on February 13, 1978, testified as to the preparation and mailing of the advance notice.

After four rehearing dates were set and postponed because Shackelford's whereabouts could not be ascertained, a rehearing was held on October 16, 1978. At this rehearing, the July 27, 1978, testimony of the WCSSB eligibility technician was introduced. Also at this rehearing Shackelford again testified relative to the advance notice and this time changed her story to reflect the fact that her grandfather, who had been delivering her mail to her daily while she was hospitalized, delivered the advance notice to her. When asked when she received the notice she stated:

"It was two days before I was going to be dropped. I remember that for a fact."

On November 30, 1978, the SSB reviewed the testimony given at the October 16, 1978, rehearing and upon reconsideration decided to affirm and uphold the original action taken by the WCSSB on March 1, 1978, to close Shackelford's case.

On January 4, 1979, pursuant to the North Dakota Century Code Section 28-32-15, Shackelford appealed the SSB's November 30, 1978, decision to the district court in Burleigh County. In a memorandum opinion dated January 18, 1980, the district court affirmed the November 30, 1978, action of the SSB and dismissed the appeal.

Shackelford raises the following issues in this appeal:

1. Whether or not the SSB acted properly when it treated as a request for a rehearing the issues raised by the WCSSB relative to SSB's reversal of WCSSB's decision to terminate AFDC benefits to Shackelford.

2. Whether or not Shackelford was denied her due-process guarantees by the SSB's ex parte consideration of the matter of a rehearing.

3. Whether or not, without regard to the merits of her original appeal, the entire administrative process in question entitled Shackelford to receive benefits because it was not completed within 90 days as required by law.

Although the facts in this case might enable one to formulate and categorize issues in a variety of ways, there is only one question which must be addressed here: Notwithstanding the maze of procedural regulations regarding the granting and termination of AFDC benefits, may an AFDC recipient give conflicting statements to the SSB and then later claim that she is automatically entitled to benefits because her wrongdoing wasn't discovered and corrected until after a certain time period had expired? We answer in the negative.

Before we examine the issues raised by Shackelford, a brief explanation of the basic statutory and regulatory framework on which the AFDC program rests is in order. Title IV-A of the Social Security Act, codified at 42 U.S.C. § 601, et seq., provides the Federal statutory base for the AFDC program. The overall statutory structure of AFDC is set forth at 42 U.S.C. § 602. Because AFDC is designed to be funded jointly by the Federal and State governments, each participating State has its own statutory scheme as well. In North Dakota the statutory basis for AFDC is found in N.D.C.C. Chapter 50-09. The overall design for AFDC calls for each State participating in the Federal program to designate a State agency (in North Dakota the designated State agency is the Social Service Board of North Dakota) to administer the program. Each designated State agency is then required to design a comprehensive plan that conforms with Federal rules and regulations regarding disbursement of AFDC benefits. In North Dakota the SSB's State plan calls for distribution of AFDC benefits through county social service boards. Specific provisions for administration of AFDC benefits to needy families exist at both the Federal and State levels, with the Federal regulations found at 45 C.F.R. Parts 205, 206, 224, 232, 233, 234, 235, and 237, and State regulations found at Chapter 75-02-01 of the North Dakota Administrative Code. Pursuant to Title XIX of the Social Security Act, "medical assistance" must be made available to the AFDC recipients. 42 U.S.C. § 1396a(a)(10).

Of all the rules and regulations surrounding administration of assistance under the AFDC program, among the most important are those encompassing the right of applicants and recipients to a hearing when a county board determines that aid is to be denied or terminated. The SSB is required to provide hearings to these people under 42 U.S.C. § 602(a)(4), 45 C.F.R. § 205.10, and N.D.C.C. § 50-09-14.

North Dakota Administrative Code Chapter 75-01-03 provides regulations concerning complaints and hearings before the SSB. This particular Administrative Code chapter was not in effect at the time the hearings in the case at bar took place, although it does reflect the hearing process which was in...