A.Z. v. Higher Education Student Assistance Authority

48 A.3d 1151, 427 N.J. Super. 389, 2012 N.J. Super. LEXIS 136
CourtNew Jersey Superior Court Appellate Division
DecidedAugust 8, 2012
StatusPublished
Cited by5 cases

This text of 48 A.3d 1151 (A.Z. v. Higher Education Student Assistance Authority) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.Z. v. Higher Education Student Assistance Authority, 48 A.3d 1151, 427 N.J. Super. 389, 2012 N.J. Super. LEXIS 136 (N.J. Ct. App. 2012).

Opinion

The opinion of the court was delivered by

OSTRER, J.S.C.

(temporarily assigned).

This appeal requires us to construe the provisions of New Jersey’s student financial aid laws that define who is eligible to receive a Tuition Aid Grant (TAG). N.J.S.A. 18A:71B-2; N.J.S.A. 18A:71B-20(c)(1). A.Z., a United States citizen and a resident of New Jersey since 1997, appeals from the determination of the Higher Education Student Assistance Authority (HESAA or Authority) that she is ineligible to receive a TAG “because [her] parents are not legal New Jersey residents[.]” We conclude the Authority’s decision is based upon a misapplication of law, and a regulation that alters the terms of the governing statute. We therefore reverse.

I.

A.Z. is a citizen of the United States. She was born in New York City in 1994. She has been supported by her mother who was, and continues to be, an undocumented immigrant from Guatemala. Her father does not provide for her support and is not a part of her life.

A.Z. moved to New Jersey with her mother in 1997. A.Z. attended public school here and graduated from a New Jersey high school in 2011. In February 2011, she applied for a TAG to assist her in attending college in New Jersey.1 She also submitted the required Free Application for Federal Student Aid (FAF-[393]*393SA). In completing the parent information section of the FAFSA, A.Z. and B.Z. entered XXX-XX-XXXX for B.Z.’s Social Security Number, as directed by the FAFSA instructions. They also provided B.Z.’s Individual Taxpayer Identification Number (ITIN), issued by the IRS, which B.Z. used to file state and federal tax returns. A.Z. reported income of $800 in 2010, and disclosed that her mother’s adjusted gross income was $4950.

In March, HESAA sent A.Z. an “Application Information Request” that stated: “You are ineligible because your parents are not legal residents. If this is incorrect, return this form with copies of their 2010 NJ Resident Income Tax Return and their NJ Driver Licenses issued before September 16, 2010.” A.Z. responded by providing copies of her mother’s federal and state income tax returns, and county identification card. B.Z. was ineligible to obtain a New Jersey driver’s license. See N.J.S.A. 39:3-10; N.J.A.C. 13:21-8.2(a)(7).

On April 25, 2011, HESAA denied AZ.’s application. It sent a Student Eligibility Notice for the 2011-2012 academic year that stated: “Ineligible for the 2011-2012 academic year at the College of New Jersey because your parents are not legal New Jersey residents!.]” A note on the Applicant Information Request worksheet stated “mother has SS# for IRS purposes only!.] Not elig.”

AZ. appealed from the agency’s decision on June 9, 2011. We denied HESAA’s subsequent motion to dismiss for failure to exhaust administrative remedies and lack of final agency action.2

A.Z. argues she is eligible to receive a TAG under the statute, which HESAA has misconstrued. Alternatively, she argues if HESAA has correctly construed the statute, then the agency’s decision should be reversed because it violates her right to equal [394]*394protection of the laws under U.S. Const. amend. XIV, ¶ 1 and N.J. Const. art. I, § 1.

II.

We shall reverse an agency decision that “violate[s] express or implied legislative policies[.]” Shim v. Rutgers—The State Univ. of N.J., 191 N.J. 374, 384, 924 A.2d 465 (2007). Although we generally defer to an agency’s interpretation of its own statute, we are not bound by the agency’s interpretation. Ibid. Oar deference is grounded in the “recognition that agencies have the specialized expertise necessary to enact regulations dealing with technical matters[.]” N.J. State League of Municipalities v. Dep’t of Cmty. Affairs, 158 N.J. 211, 222, 729 A.2d 21 (1999). However, where technical or specialized expertise is not implicated, and the issue is one of statutory interpretation, we owe no deference to the agency. See Mayflower Sec. Co. v. Bureau of Sec., 64 N.J. 85, 93, 312 A.2d 497 (1973) (“An appellate tribunal is, however, in no way bound by the agency’s interpretation of a statute or its determination of a strictly legal issue.”).

The presumed validity of an agency regulation “does not attach if the regulation on its face reveals that the agency exceeded the power delegated to it by the Legislature.” In re N.J. Individual Health Coverage Program’s Readoption of N.J.A.C. 11:20-1 et seq., 179 N.J. 570, 579, 847 A.2d 552 (2004). “Administrative regulations ‘cannot alter the terms of a statute or frustrate the legislative policy.’ ” Ibid. (quoting Medical Soc’y of N.J. v. N.J. Dep’t of Law and Pub. Safety, Div. of Consumer Affairs, 120 N.J. 18, 25, 575 A.2d 1348 (1990)). See also Kingsley v. Hawthorne Fabrics, Inc., 41 N.J. 521, 528, 197 A.2d 673 (1964) (“An administrative agency may not under the guise of interpretation extend a statute to include persons not intended, nor may it give the statute any greater effect than its language allows.”).

To decide AZ.’s appeal, we confine ourselves to AZ.’s argument that HESAA’s decision violated the statute governing eligibility for a TAG. We need not, and therefore do not, reach her eonstitu[395]*395tional claims. See, e.g., Randolph Town Ctr., L.P. v. Cnty. of Morris, 186 N.J. 78, 80, 891 A.2d 1202 (2006) (“Courts should not reach a constitutional question unless its resolution is imperative to the disposition of litigation.”). We are persuaded that HESAA has misinterpreted the governing statute, and applied a regulation that alters the statutory terms.

A.

We begin with a review of the statute. The Legislature established the TAG program as, essentially, an entitlement program of tuition assistance for eligible needy students. The Legislature “created State tuition aid grants which shall be maintained by the State, awarded and administered pursuant to the act, and used by the holders thereof for undergraduate study in eligible institutions.” N.J.S.A. 18A:71B-18. The statute mandates grant awards to eligible students: “A State tuition aid grant shall be awarded annually to each eligible, qualified full-time undergraduate student enrolled in a curriculum leading to a degree or certificate in an eligible institution!.]” N.J.S.A. 18A:71B-20(a) (emphasis added). The size of the grants is subject to appropriations. N.J.S.A. 18A:71B-21.

In addition to residency requirements, the statute conditions eligibility on, among other things, attendance at an eligible institution as defined by N.J.S.A.

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Bluebook (online)
48 A.3d 1151, 427 N.J. Super. 389, 2012 N.J. Super. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/az-v-higher-education-student-assistance-authority-njsuperctappdiv-2012.