Cruz v. New Mexico Department of Human Services, Income Support Division

666 P.2d 1280, 100 N.M. 133
CourtNew Mexico Court of Appeals
DecidedJune 30, 1983
Docket6026
StatusPublished
Cited by5 cases

This text of 666 P.2d 1280 (Cruz v. New Mexico Department of Human Services, Income Support Division) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cruz v. New Mexico Department of Human Services, Income Support Division, 666 P.2d 1280, 100 N.M. 133 (N.M. Ct. App. 1983).

Opinion

OPINION

WOOD, Judge.

The appeal raises two issues: (1) the evidence to be considered as to the eligibility of a person to receive financial assistance; and (2) the sufficiency of the evidence to support the Department’s decision terminating assistance.

Cruz began receiving assistance under the AFDC (Aid to Families with Dependent Children) program in 1974. A “quality assurance” review by the Department determined that Chacon, Cruz’ mother, executed deeds purportedly conveying two tracts of real property to Cruz in 1976. After the Department informed Cruz of the Chacon deeds, Cruz executed deeds purportedly conveying the two tracts to her brother. The county office of the Department gave Cruz notice that it proposed to terminate Cruz’ financial assistance on the basis that she was ineligible for financial assistance. Cruz sought and received a “fair hearing” concerning the proposed termination. See NMSA 1978, § 27-3-3 (Repl.Pamp.1982). The ultimate decision was against Cruz, and was on the basis that while receiving assistance she transferred property without receiving a monetary return and, thus, became ineligible for assistance. The regulation relied upon by the Department was § 272.2 of the Department’s Income Support Division Program Manual (Vol. I, 1982). References to other regulations in this manual will be to section number only.

Evidence to be Considered

At the time the Department’s coum ty office gave notice to Cruz of the proposed termination of financial assistance, that office had information as to purported transfers of real estate from Chacon to Cruz, had Cruz' explanation that “she never wanted the property to begin with”, had Cruz’ admission that she had not reported receiving the property, and had Cruz’ admission that she had transferred the property to her brother. On the basis of this information the county office could properly conclude that Cruz “transferred the property knowingly and obviously for the purpose of retaining her assistance”, and could properly propose termination of her financial assistance. See § 221.831.

Evidence at the “fair hearing” presents a different view of the matter. That evidence raised substantive issues under the law of conveyancing. We discuss that evidence in the next issue.

The Department contends that the evidence at the fair hearing which raised the conveyancing issues should not be considered. It relies on the first paragraph of § 275.472 which reads:

All information presented or used by the county office (or its witnesses, if any) during the course of the hearing must be heard by or, if written, must be available to the claimant or his representative for examination prior to the hearing as well as during the hearing itself. No other information may be a part of the hearing record or used in making a decision on the case.

The Department states that the above-quoted section

indicates that the relevant subject matter of an HSD fair hearing is the information supplied to the client’s eligibility worker prior to the action taken by the worker which is subject to the appeal. Essentially, the scope of review is whether or not the eligibility worker made a correct decision on the information supplied to him/her before adverse action was taken.

The claim is that the review by this Court of a “fair hearing” decision is limited to whether the Department’s representative proceeded properly on the basis of information known prior to the “fair hearing”. The claim is frivolous, being contrary to § 27-3-3(C) and § 275.1. In making the claim, the Department disregards the context of the above-quoted paragraph from § 275.-472. That paragraph provides that information utilized at the hearing must be available to the claimant and that only information available to the claimant “may be a part of the hearing record or used in making a decision .... ” See Hillman v. Health and Soc. Services Dept., 92 N.M. 480, 590 P.2d 179 (Ct.App.1979).

That the quoted section is not to be read as the Department claims is shown by another paragraph in § 275.472, which reads:

The claimant may present his case in any way he desires including the telling of his story in his own way, having a representative, relative or friend present evidence for him or being represented by legal counsel. The claimant may give all of the evidence on the points at issue he believes necessary without undue interference, may request substantiation of statements made by other[s] and may present evidence in rebuttal.

The evidence that we consider is the evidence contained in the record of the “fair hearing”.

Sufficiency of the Evidence

The evidence refers to two tracts of real estate — 15.19 acres in or near Holman and 2 acres in or near Cleveland, New Mexico. Cruz conveyed the Holman tract to Chacon in 1974; no issue is raised concerning the propriety of this conveyance. The deeds by which Chacon purportedly conveyed both tracts to Cruz are not a part of the record of the “fair hearing”. The Department has attached to its brief what purports to be a deed conveying the Holman tract to Cruz. We do not consider this attachment. See the discussion under the first issue and Baca v. Swift & Company, 74 N.M. 211, 392 P.2d 407 (1964). Although the deeds are missing from the record, a permissible inference from the evidence is that Chacon executed deeds, describing the Holman and Cleveland properties, which purportedly conveyed these properties to Cruz, and that this occurred in 1976. This is the basis of the finding that Chacon “transferred her property” to Cruz in 1976. The conveyancing problem begins with this finding; what property interest was transferred?

Another finding is that Cruz “was not aware of the transfer” until February 1, 1982, the date when Cruz was informed of the “quality assurance” review. There is no dispute as to the propriety of this finding. The evidence is that Chacon executed the deeds and had them recorded. Nothing suggests that the deeds were ever in the possession of Cruz. After recording the deeds, Chacon paid the taxes assessed in Cruz’ name.

After being informed of the “transfer”, Cruz then executed deeds to these two tracts; the deeds named her brother as grantee. These deeds from Cruz to her brother are the basis for the termination of Cruz’ financial assistance.

This appeal does not determine what interest any person owns in the two tracts; we disclaim any such determination. Cruz’ assistance was terminated on the basis that she transferred property without receiving a monetary return. This, however, is pertinent only if this property transferred belonged to Cruz so that it was a “property resource” to be considered in determining Cruz’ eligibility for financial assistance. Section 221.831; Russell v. N.M. Human Services Dept., 99 N.M. 78, 653 P.2d 1224 (Ct.App.1982).

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Cite This Page — Counsel Stack

Bluebook (online)
666 P.2d 1280, 100 N.M. 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cruz-v-new-mexico-department-of-human-services-income-support-division-nmctapp-1983.