Childs v. Bane

194 A.D.2d 221, 605 N.Y.S.2d 488, 1993 N.Y. App. Div. LEXIS 11991
Appellate Division of the Supreme Court of the State of New York·Decided December 16, 1993·Published·Cited by 8 cases

Opinion

OPINION OF THE COURT

White, J.

A resident of this State who is faced with a shut-off of utility services may, if eligible, have his utility bills paid for a limited time by the county social services department in order to prevent a shut-off or to restore service (Social Services Law § 131-s). In 1992, the Legislature amended Social Services Law § 131-s to require persons whose household income exceeds the public assistance standard of need to sign an agreement to repay the assistance within one year as a condition to receiving assistance (L 1992, ch 41, § 128). The Legislature directed defendant State Commissioner of Social Services (hereinafter Commissioner) to promulgate emergency regulations to implement the statutory amendment (L 1992, ch 41, § 165 [p]).

Pursuant to this directive, the Commissioner promulgated an emergency amendment to 18 NYCRR 352.5 (d) and issued Administrative Directive 92 ADM-26. The amendment to 18 NYCRR 352.5 (d) states that assistance cannot be provided to an applicant whose gross household income exceeds the public assistance standard of need for the same sized household unless he or she signs a repayment agreement. It further states that an applicant who is in default on a repayment agreement is not eligible for subsequent assistance.

After this amended regulation went into effect, plaintiffs mounted this multipronged attack against it and 92 ADM-26. Thereafter, both sides moved for summary judgment. Supreme Court found that plaintiff Niagara Mohawk Power Corporation lacked standing but granted it amicus curiae status. It then proceeded to deny plaintiffs’ motion, grant the Commissioner’s cross motion and declare 18 NYCRR 352.5 (d) and 92 ADM-26 valid, enforceable and consistent with the Legisla[225] ture’s directive contained in Laws of 1992 (ch 41, § 128). This appeal ensued.*

The first issue we must resolve is whether Niagara Mohawk has standing. Under State Finance Law § 123-b, a citizen taxpayer has standing to bring an action for declaratory relief to prevent the "wrongful expenditure, misappropriation * * * or any other illegal or unconstitutional disbursement of state funds”. Although the promulgation of the amended regulation and 92 ADM-26 did not involve the expenditure of State funds, their implementation will. Inasmuch as Niagara Mohawk alleges that the expenditure of these funds will result in an unconstitutional disbursement and misapplication of State funds, we find it has standing to maintain this action (see, Community Serv. Socy. v Cuomo, 167 AD2d 168).

One of the prongs of plaintiffs’ attack is predicated upon NY Constitution, article XVII, § 1, which declares that the "aid, care and support of the needy are public concerns and shall be provided by the state”. Plaintiffs maintain that the amended regulation runs afoul of this provision because the denial of assistance to an applicant who has not complied with a repayment agreement constitutes a blanket elimination of benefits to persons in need of aid (see, Tucker v Toia, 43 NY2d 1, 9).

We find this argument unpersuasive for two reasons. First, while the Legislature may not refuse to aid the needy, it does have discretion in determining the amount of aid, in classifying recipients and in defining the term "needy” (see, Lovelace v Gross, 80 NY2d 419, 424). Here, the denial of benefits only applies to persons who do not fall within the statutory definition of needy because their household income exceeds the public assistance standard of need and, therefore, are not eligible to receive public assistance. Second, the record shows that when a person’s income diminishes to the point where he or she becomes entitled to public assistance, he or she may apply for and receive it even though they may have defaulted upon a previously executed repayment agreement. Accordingly, we find no violation of NY Constitution, article XVII, § 1. We find plaintiffs’ contention that the amended regulation denies them the equal protection of law similarly unpersuasive because Social Services Law § 131-s and 18 NYCRR 352.5 [226] (d) further the State’s legitimate goal of allocating limited public assistance resources to the neediest applicants (see, Matter of Jones v Blum, 101 AD2d 330, affd 64 NY2d 918).

It is a fundamental principle of administrative law that agencies can only exercise those powers expressly delegated by the Legislature, together with those required by necessary implication (see, Matter of Beer Garden v New York State Liq. Auth., 79 NY2d 266, 276). Plaintiffs maintain that the amended regulation and 92 ADM-26 violate this principle because they create eligibility requirements and restrictions that exceed the statutory authority of Social Services Law § 131-s. They first contend that the denial of subsequent assistance to persons who have not complied with a repayment agreement is not authorized by Social Services Law § 131-s, which provides that repayment agreements are to be enforced through conventional creditors’ remedies. In our view, the Commissioner’s power to deny assistance is derived by implication from the statutory requirement which conditions the receipt of assistance upon the signing of a repayment agreement. Without the power to deny assistance, the repayment agreement would be rendered essentially meaningless as it could be ignored with impunity because the failure to abide by it would have no immediate consequences.

Plaintiffs next argue that the Commissioner impermissibly expanded the number of applicants required to sign repayment agreements by her amendment of the definition of "household” and "standard of need”. Whether this argument has validity depends upon whether the construction given Social Services Law § 131-s by the Commissioner is rational (see, Matter of Bates v Toia, 45 NY2d 460, 464). As amended, 18 NYCRR 352.5 (d) defines a household as consisting of all persons who occupy a housing unit, including related family members and all unrelated persons. We find this definition rational as it is in accord with the commonly understood meaning of "household” (Webster’s Third New International Dictionary 1096 [unabridged 1981 ed]).

Eligibility for public assistance is determined by measuring the countable income and resources of an individual or family against the State’s defined standard of need which is its view of the amount necessary to provide for the essential needs of a hypothetical family having the same composition as the family in question (see, Lovelace v Gross, supra, at 422). A person becomes eligible for public assistance when his or her income is below the standard of need (Social Services Law § 131-a). [227] The methodology for ascertaining standard of need is set forth in Social Services Law § 131-a and 18 NYCRR 352.1. The statute requires that certain regular recurring monthly needs must be included in the determination of standard of need. These items are set forth in 18 NYCRR 352.1 (a) and (b). The statute further provides that several special nonrecurring items of need may be considered. These items appear in 18 NYCRR 352.1 (c).

In promulgating the amendment to 18 NYCRR 352.5 (d), the Commissioner defined standard of need as including the items set forth in 18 NYCRR 352.1 (a) and (b) but not those contained in 18 NYCRR 352.1 (c). This effectively reduced the standard of need, thereby generating costs savings by increasing the number of applicants who will have to sign repayment agreements.

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

Childs v. Bane, 194 A.D.2d 221, 605 N.Y.S.2d 488, 1993 N.Y. App. Div. LEXIS 11991 (N.Y. Ct. App. 1993).

194 A.D.2d 221 (Childs v. Bane) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Matter of Logan v. New York City Health & Hospital Corp.
139 A.D.3d 1200 (Appellate Division of the Supreme Court of New York, 2016)
Dillenburg v. State
55 A.D.3d 1363 (Appellate Division of the Supreme Court of New York, 2008)
Golden v. Paterson
23 Misc. 3d 641 (New York Supreme Court, 2008)
New York State Ass'n of Small City School Districts, Inc. v. State
42 A.D.3d 648 (Appellate Division of the Supreme Court of New York, 2007)
DeJesus v. Roberts
296 A.D.2d 307 (Appellate Division of the Supreme Court of New York, 2002)
Cavallo v. Utica-Watertown Health Ins. Co., Inc.
3 F. Supp. 2d 223 (N.D. New York, 1998)
Goodwin v. Perales
669 N.E.2d 234 (New York Court of Appeals, 1996)
National Ass'n of Independent Insurers v. State
207 A.D.2d 191 (Appellate Division of the Supreme Court of New York, 1994)