Charles A. Buschmann v. Richard S. Schweiker , Secretary of the United States Department of Health, Education and Welfare

676 F.2d 352
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 3, 1982
Docket80-3231
StatusPublished
Cited by96 cases

This text of 676 F.2d 352 (Charles A. Buschmann v. Richard S. Schweiker , Secretary of the United States Department of Health, Education and Welfare) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles A. Buschmann v. Richard S. Schweiker , Secretary of the United States Department of Health, Education and Welfare, 676 F.2d 352 (9th Cir. 1982).

Opinions

GOODWIN, Circuit Judge.

Charles Buschmann and a class consisting of himself and all present and future Supplemental Security Income (“SSI”) recipients in Region X appeal from a judgment of the district court upholding the validity of 20 C.F.R. § 416.1125(d).1 Buschmann raises two questions on appeal;

1. Does 20 C.F.R. § 416.1125(d) exceed the Secretary’s authority under 42 U.S.C. § 1382a(a)(2)(A) of the Social Security Act? 2
2. Can this regulation apply to any period prior to its publication as a final regulation on July 7, 1978, because the Secretary failed to comply with the Administrative Procedures Act, 5 U.S.C. § 553?3

[355]*355The facts are not in dispute. Charles Buschmann had been receiving $42.30 a month in SSI benefits. He lived alone in a house owned by his son for which he paid $80 a month rent. The Secretary determined that the current market rental value of the dwelling was $145 a month. Under 20 C.F.R. 416.1125(d) this generated $65 a month of unearned income to Buschmann, thus terminating his continued eligibility for SSI benefits.

Buschmann filed a class action claiming (1) that the regulation exceeded the Secretary’s authority, and (2) that the regulation could not apply to any period prior to the date of its final publication. The district court granted the Secretary’s motion for summary judgment on these issues, but reversed the Secretary’s determination of current market rental value as not being supported by substantial evidence.

Buschmann appeals the district court’s decision. The Secretary does not appeal.

1. Validity of the Regulation

Buschmann argues that 20 C.F.R. § 416.1125(d) violates SSI’s objective of guaranteeing minimum subsidies because the regulation counts as “income” savings that are not actually available to the recipients to meet their basic needs. This court upheld the validity of regulation 416.1125(d) in Antonioli v. Harris, 624 F.2d 78 (9th Cir. 1980):

“This regulation is clearly ‘reasonably related to the purposes of enabling legislation,’ Thorpe v. Housing Authority of the City of Durham, 393 U.S. 268, 280-81, 89 S.Ct. 518, 525, 21 L.Ed.2d 474 (1969), because it tends to equalize the status of SSI recipients who live in quarters owned by friends or relatives, paying little or no rent, and those who must obtain housing in the marketplace. See Mourning v. Family Publications Service, 411 U.S. 356, 369, 93 S.Ct. 1652, 1600, 36 L.Ed.2d 318 (1973); National Welfare Rights Organization v. Mathews, 533 F.2d 637, 645 (D.C. Cir.1976).” 624 F.2d at 81.

Antonioli also disposes of Buschmann’s argument that the imputed income was unavailable to him:

“The crux of appellant’s challenge to the decrease in benefits is that he did not have any unearned income. We disagree. Although appellant assumed some financial obligations, he did not pay rent to his father. He thus fared better and had more resources available than an SSI recipient forced to locate and finance housing in the open market. ...” 624 F.2d at 80. Accord: Usher v. Schweiker, 666 F.2d 652 (1st Cir. 1981); Kimmes v. Harris, 647 F.2d 1028 (10th Cir. 1981), cert. denied,- U.S.-, 102 S.Ct. 400, 70 L.Ed.2d 214.

Buschmann also claims that this regulation should be invalidated in that it is “arbitrary and capricious.” The decisions of Antionilo and Kimmes foreclose that claim. It should also be noted that the interpretation of an administrative regulation by the officers or agency charged with its administration is to be given controlling weight unless it is plainly erroneous or inconsistent with the regulation. Mourning v. Family Publications Service, Inc., 411 U.S. 356, 93 S.Ct. 1652, 36 L.Ed.2d 318 (1973); Udall v. Tallman, 380 U.S. 1, 85 S.Ct. 792, 13 L.Ed.2d 616 (1965); Bowles v. Seminole Rock Co., 325 U.S. 410, 65 S.Ct. 1215, 89 L.Ed. 1700 (1945). The interpretation of regulation 416.1125(d) is not plainly erroneous.

Thus we find that the assessment of in-kind support does not violate the purpose of the Social Security Act and is not arbitrary or capricious.

2. Noncompliance with the Administrative Procedures Act

A regulation is invalid if the agency fails to follow procedures required by the [356]*356Administrative Procedures Act, 5 U.S.C. § 553.4 U. S. Steel Corp. v. U. S. Environmental Protection, 595 F.2d 207, 210 (5th Cir. 1979); Anderson v. Butz, 550 F.2d 459, 462 (9th Cir. 1977); Hotch v. United States, 212 F.2d 280 (9th Cir. 1954); Carter v. Blum, 493 F.Supp. 368, 372 (S.D.N.Y.1980); Kelly v. United States Department of Interior, 339 F.Supp. 1095, 1100-1101 (E.D.Cal. 1972); City of New York v. Diamond, 379 F.Supp. 503, 518 (S.D.N.Y.1974).

Section 553(b) and (d) requires the agency to publish a substantive rule in the Federal Register no less than 30 days before the rule’s effective date, and to provide an opportunity for public comment. Section 553(b)(B) allows an exception “if the agency has ‘good cause’ to believe the process would ‘be impracticable, unnecessary, or contrary to the public interest’ and if the agency publishes reasons for thinking so along with the rules in question.” Western Oil & Gas v. United States E.P.A.,

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