Aiken v. Obledo

480 F. Supp. 1314, 1979 U.S. Dist. LEXIS 8099
CourtDistrict Court, E.D. California
DecidedDecember 7, 1979
DocketCiv. No. S-75-76
StatusPublished
Cited by2 cases

This text of 480 F. Supp. 1314 (Aiken v. Obledo) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aiken v. Obledo, 480 F. Supp. 1314, 1979 U.S. Dist. LEXIS 8099 (E.D. Cal. 1979).

Opinion

MEMORANDUM

MacBRIDE, District Judge.

Two years ago, this court ruled that the defendant-Secretary of Agriculture had implemented certain rules governing eligibility for food stamps in violation of the publication requirements of 5 U.S.C. §§ 552 and 553. Aiken v. Obledo, 442 F.Supp. 628, 654 (E.D.Cal.1977). Having so ruled, this court then considered the prayer by plaintiffs and intervenors for compensation for those who lost benefits as a result of the illegal implementation of unpublished eligibility rules; compensation was requested in the form of forward adjustments in the cost of purchasing food stamps. After noting that other courts had approved such compensation, this court declared:

Forward adjustments are made by discounting the price paid for stamps by those families whose food stamp applications were unlawfully denied or delayed because of the implementation of the [illegal] rules. Although the state agencies were the instrument for the enforcement of these rules, the federal government should be the party compensating the applicants because it is responsible for the benefit costs of the program and the state was required by federal regulations to follow the instructions issued by the FNS [Food and Nutrition Service of the Department of Agriculture]. [T]he federal defendant will be required to submit a plan for compliance with this court’s order, which will contain a provision for compensation by forward adjustments.

Id. at 654r-55. Later in the opinion, this court granted summary judgment invalidating the state regulations adopted in conformity with the invalid federal rules. In holding the state regulations void, this court declared:

because the state agencies merely implemented the invalid state regulations pursuant to their obligation to comply with federal instructions, it is all the more appropriate that the federal government, and not the State of California, reimburse those who lost benefits because of the use of the [illegal] rules.

Id. at 655-56.

In conformity with this court’s orders, the federal defendants did submit a plan for compliance which was developed through lengthy negotiations among the parties. The plan for compliance was approved and implemented in two parts: the first part dealt with prospective notice to state agencies while the second provided for retroactive benefits. The first part of the plan was approved pursuant to a stipulation of the parties and order of the court on November 23, 1977. This order is included as Appendix I. Thereafter, the state defendants (the Secretary of the California Health and Welfare Agency and the Director of the California Department of Benefit Payments) filed objection to the second part of the proposed plan for compliance:

[1316]*1316Defendants note that the plan will require a substantial effort by state defendants and their agents to restore to affected individuals benefits lost as a result of federal defendants’ unlawful regulation. Nowhere in the plan, however, is it made clear that the entire cost of these restorative efforts is to be borne by federal defendants. It appears to state defendants that it was the intention of the court that federal defendants, having compelled the wrongful denial of benefits initially, should be burdened with the cost of now granting them.

State Defendants’ Brief, filed Dec. 5, 1977. Plaintiffs also filed objections, but these were resolved through negotiations. On December 16, 1977, the parties stipulated that part II of the plan for compliance, as amended after negotiations, should be implemented promptly and that the state defendants’ objections concerning the allocation of administrative costs could be reserved for resolution at a later date. On December 27, 1977, after hearing oral arguments on the matter, this court ordered that part II of the plan be implemented immediately. This order is included as Appendix II. The parties requested additional time in which to brief the question of allocation of administrative costs raised by the state defendants, so further briefing was ordered and the matter taken under submission. That briefing having been filed, the court is now prepared to rule on the matter.

Under the Food Stamp Act, the various states assume the responsibility for certification of qualified households, issuance of food stamp coupons, and control and accountability for the coupons. 7 U.S.C. § 2020. The federal government is responsible for funding the benefit payments themselves, that is, the dollars actually provided to recipients in the form of food stamp coupons. 7 U.S.C. §§ 2013, 2027. The administrative costs of the Program, however, are shared by the federal and state governments. Section 2025 of the Act provides:

The Secretary is authorized to pay to each State agency an amount equal to 50 per centum of all administrative costs involved in each State agency’s operation of the food stamp program, which costs shall include, but not be limited to, the cost of (1) outreach, (2) the certification of applicant households, (3) the acceptance, storage, protection, control, and accounting of coupons after their delivery to receiving points within the State, (4) the issuance of coupons to all eligible households, and (5) fair hearings .

7 U.S.C. § 2025(a). That section authorizes payment of a higher portion of the administrative costs associated with investigations and prosecutions and with administration of the Program on Indian reservations. In addition, the Secretary is authorized to increase the federal share of the administrative costs to 60 percent if a state agency’s performance meets specified quality standards, 7 U.S.C. § 2025(c), or to withhold the federal cost-sharing funds if a state fails to meet designated standards.

The United States does not dispute that it must pay the full amount of the benefits themselves which this court ordered must be retroactively reimbursed pursuant to part II of the plan for compliance. At issue instead are the administrative costs which the states incurred in effecting the reimbursement; these administrative costs include the salaries, travel expenses, building and equipment costs, data processing expenses, and other, similar costs allocable to the states’ compliance with the reimbursement order. The state defendants urge that the federal government should assume responsibility for 100 percent of these administrative costs because they were brought on by its mistake.

State defendants’ responsibility for administrative costs is . limited to the cost of performing the duties assigned to it under the Act. Nowhere in any provision in the Act is a state required to pay for the cost of administrative errors of the federal government. The activities required by the Plan of Compliance flow entirely from the failure of the federal government to comply with [1317]*1317its own requirements in issuing directives.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
480 F. Supp. 1314, 1979 U.S. Dist. LEXIS 8099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aiken-v-obledo-caed-1979.