Arrowood v. N.C. Department of Health & Human Services

535 S.E.2d 585, 140 N.C. App. 31, 2000 N.C. App. LEXIS 1091
CourtCourt of Appeals of North Carolina
DecidedSeptember 19, 2000
DocketNo. COA99-940
StatusPublished
Cited by2 cases

This text of 535 S.E.2d 585 (Arrowood v. N.C. Department of Health & Human Services) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrowood v. N.C. Department of Health & Human Services, 535 S.E.2d 585, 140 N.C. App. 31, 2000 N.C. App. LEXIS 1091 (N.C. Ct. App. 2000).

Opinions

MARTIN, Judge.

Petitioner-appellant David Arrowood (“petitioner”) appeals from an order of the superior court upholding a decision by respondent-appellee North Carolina Department of Health and Human Services (“respondent”) to terminate his public assistance benefits.

Petitioner and his family began receiving public assistance from respondent in January 1996 under the federal Aid to Families with [33]*33Dependent Children program (“AFDC”), 42 U.S.C. § 601, et seq. Under the AFDC program, the federal government partially reimbursed states for welfare programs that were either in compliance with the federal program, or if modified from federal prescriptions, for programs where the state applied for and received a waiver from the United States Department of Health and Human Services (“HHS”) under § 1115 of the Social Security Act. 42 U.S.C. § 1315(a).

In 1995, respondent requested such a waiver in order to implement a “demonstration” of its “Work First Program” which contained welfare reform concepts that differed from those under the AFDC program, including a 24-month limitation on the receipt of public assistance. In February 1996, HHS granted respondent’s waiver request to implement the proposed provisions of respondent’s Work First Program, and respondent subsequently took measures to implement the provisions, including the 24-month limitation. Respondent compiled a Work First Program Manual outlining the procedures for instituting the new policies, and developed a contract for beneficiaries of the program (the “Work First Personal Responsibility Contract-Part II”). According to respondent’s manual, beneficiaries were required to sign the contract in order to continue receiving benefits, and a signed contract signified commencement of the 24-month time limitation. Petitioner signed such a contract on 3 May 1996. Respondent did not, however, take any formal action to promulgate rules regarding the Work First policies, and at the time respondent instituted the 24-month time limitation, neither federal law nor state law or regulation contained any such time limit.

In August 1996, the United States Congress repealed the AFDC program and replaced it with a federal block grant entitled Temporary Assistance to Needy Families (“TANF”), 42 U.S.C. § 601, et seq., in which Congress granted states greater flexibility to design and operate their own welfare programs. Thereafter, on 28 August 1997, the North Carolina General Assembly formally enacted the Work First Program, which met the minimum requirements of TANF and included the 24-month limitation on receipt of benefits. N.C. Gen. Stat. § 108A-25(bl). Prior to this enactment, North Carolina statutes simply required compliance with the AFDC program, and contained no time limitation on the receipt of benefits. Following the enactment, on 6 October 1997, respondent requested that petitioner sign a second contract wherein he acknowledged that he had received 15 months of public assistance and was entitled to only 9 more months of participation in the program.

[34]*34Effective 31 July 1998, the Rutherford County Department of Social Services terminated petitioner’s benefits in accordance with the Work First Program Manual, following a determination that petitioner and his family had been receiving benefits for over 24 months. On 19 November 1998, respondent conducted an evidentiary hearing on the termination of petitioner’s benefits in which it determined that in April 1996 HHS granted North Carolina’s request for waiver authority to institute the Work First Program; that the waiver gave North Carolina the ability to deny AFDC benefits to adults who had received such benefits for 24 months; that the waiver had the force and effect of federal law; that North Carolina lawfully implemented the Work First Program, including the 24-month limitation, in August 1996; and that petitioner’s household had received public assistance prior to August 1996 through July 1998. Accordingly, respondent upheld the termination of petitioner’s benefits, which termination was reviewed and affirmed by respondent’s Chief Hearing Officer.

On 12 March 1999 petitioner filed a Petition for Judicial Review of respondent’s decision with the Superior Court of Rutherford County, and on 27 May 1999 the superior court entered an order affirming respondent’s decision “as being made upon lawful procedure and not affected by error of law.” Petitioner appeals.

Petitioner brings forth two assignments of error on appeal: (1) that the superior court erred in failing to find that respondent acted contrary to law in enforcing the 24-month time limitation on public assistance prior to the limit’s proper promulgation pursuant to the Administrative Procedure Act, N.C. Gen. Stat. § 150B, et seq.; and (2) that the superior court erred in failing to find that respondent acted contrary to law in enforcing an unpromulgated provision of general applicability to limit petitioner’s public assistance prior to authority from the North Carolina General Assembly or federal government.

The Administrative Procedure Act (“APA”) governs both trial and appellate review of decisions rendered by an administrative agency such as respondent. N.C. Gen. Stat. § 150B, et seq.; Living Centers-Southeast, Inc. v. N.C. Dept. of Health and Human Services, Div. of Facility Services, Certificate of Need Section, 138 N.C. App. 572, 532 S.E.2d 192 (2000). Pursuant to the APA, an agency decision is first reviewed in superior court, which court may affirm or remand the decision, or may modify or reverse the decision if “the substantial rights of the petitioner may have been prejudiced because the agency’s findings, inferences, conclusions or decisions” are any of the following:

[35]*35(1) In violation of constitutional provisions;
(2) In excess of the statutory authority or jurisdiction of the agency;
(3) Made upon unlawful procedure;
(4) Affected by other error of law;
(5) Unsupported by substantial evidence admissible under G.S. 150B-29(a), 150B-30, or 150B-31 in view of the entire record as submitted; or
(6) Arbitrary or capricious.

N.C. Gen. Stat. § 150B-51(b).

“In reviewing a superior court order regarding an agency decision, our scope of review consists of the two-fold task of ‘(1) determining whether the trial court exercised the appropriate scope of review and, if appropriate, (2) deciding whether the court did so properly.’ ” Avant v. Sandhills Center for Mental Health, Developmental Disabilities & Substance Abuse Services, 132 N.C. App. 542, 545, 513 S.E.2d 79, 82 (1999) (quoting ACT-UP Triangle v. Com’n for Health Serv., 345 N.C. 699, 706, 483 S.E.2d 388, 392 (1997)). The applicable standard of review depends upon the errors alleged, Dorsey v.

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Stogsdill v. South Carolina Department of Health & Human Services
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Bluebook (online)
535 S.E.2d 585, 140 N.C. App. 31, 2000 N.C. App. LEXIS 1091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrowood-v-nc-department-of-health-human-services-ncctapp-2000.