Guardianship Estate of Keffeler v. Department of Social & Health Services

32 P.3d 267, 145 Wash. 2d 1
CourtWashington Supreme Court
DecidedOctober 11, 2001
DocketNo. 67680-1
StatusPublished
Cited by10 cases

This text of 32 P.3d 267 (Guardianship Estate of Keffeler v. Department of Social & Health Services) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guardianship Estate of Keffeler v. Department of Social & Health Services, 32 P.3d 267, 145 Wash. 2d 1 (Wash. 2001).

Opinions

Sanders, J.

The plaintiff class asks us to hold the Washington State Department of Social and Health Services (DSHS) violated that provision of the Social Security Act (the Act), 42 U.S.C. § 407(a) which forbids creditor access to Social Security benefits. Here DSHS acts as a representative payee under 42 U.S.C. § 405(j) for foster children and then applies the Social Security benefits to reimburse the state budget for payments made to foster parents for the basic needs of those children. We are also asked if DSHS’s actions deprived the foster children of their property absent due process and abridged their right to equal protection of the laws. Lastly the plaintiff class asserts entitlement to an award of reasonable attorney fees.

We hold DSHS as a representative payee violates § 407(a) of the Act when it applies Social Security benefits to the current maintenance needs of foster children for whom it acts as representative payee. Given this disposition we find it unnecessary to consider the due process and equal protection claims. We remand for further proceedings, including further consideration of the reasonable attorney fee award.

ISSUES

1. Does DSHS violate § 407(a) of the Social Security Act when, as a representative payee under § 405(j) of the Act, it uses Social Security benefits to pay current maintenance costs of children in foster care?

2. Is the class entitled to an award of reasonable attorney fees?

FACTS

Foster care in Washington is provided by an amalgam of [5]*5federal, state, and private funds, although the program is largely state-funded. In fiscal year 2000, for example, the total foster care budget was $37.4 million in state funds, plus approximately $12.9 million in federal funds. To be eligible for federal funding under the Social Security Act, a state must provide foster care services under a plan approved by the Secretary of Health and Human Services. 42 U.S.C. § 670.1 RCW 74.13.0312 authorizes DSHS to provide foster care services to children in Washington.

Foster care is generally provided in Washington to children who have been abused or neglected or have become the responsibility of the state through our juvenile justice laws, Title 13 RCW.3 On behalf of these children, the state pays a schedule of monthly allotments to foster parents who in turn pay for the basic necessities such as food, shelter, and [6]*6clothing for the children in their charge. As of September 1999, there were 10,578 foster children under DSHS’s supervision. An additional 2,352 children were in the custody of tribal authorities or child care agencies for whom DSHS paid support. Five hundred sixty-seven additional children received support through DSHS’s Division of Developmental Disabilities (DDD).

Although DSHS provides foster care for children who need it, it is Washington public policy to attempt to recover the costs of foster care from the parents of children in foster care who are primarily liable for the costs of that care:

It is declared to be the public policy of this state that this chapter be construed and administered to the end that children shall be maintained from the resources of responsible parents, thereby relieving, at least in part, the burden presently borne by the general citizenry through welfare programs.

RCW 74.20A.010 (support of dependent children act). See also In re Welfare of Feldman, 94 Wn.2d 244, 250, 615 P.2d 1290 (1980) (“It is true that parents bear the primary responsibility for the support of their children.”).

In the context of foster care, DSHS implemented the Legislature’s cost recovery policy by regulation:

Parents of children in foster care paid by the department satisfy their legal obligation to support their children when there is a superior court order for support by paying the amounts specified in the order or in the absence of a superior court order, by paying the amount determined under RCW 74.20A.055 and regulations promulgated in chapter 388-11 WAC.

Former WAC 388-70-075(1) (1976), repealed by St. Reg. 01-08-047 (Apr. 30, 2001).

If parents of a foster child are unavailable or unwilling to reimburse DSHS for the costs of foster care, DSHS may reimburse itself using “moneys and other funds” that come into its possession while the child is in its custody. RCW 74.13.060 provides, in pertinent part:

[7]*7The secretary [of the Department] or his designees or delegatees shall be the custodian without compensation of such moneys and other funds of any person which may come into the possession of the secretary during the period such person is placed with the department of social and health services pursuant to chapter 74.13 RCW. As such custodian, the secretary shall have authority to disburse moneys from the person’s funds for the following purposes only and subject to the following limitations:
(1) The secretary may disburse any of the funds belonging to such person for such personal needs of such person as the secretary may deem proper and necessary.
(2) The secretary may apply such funds against the amount of public assistance otherwise payable to such person. This includes applying, as reimbursement, any benefits, payments, funds, or accrual paid to or on behalf of said person from any source against the amount of public assistance expended on behalf of said person during the period for which the benefits, payments, funds or accruals were paid.

DSHS implemented RCW 74.13.060 with the following regulation:

(1) If a child in foster care is entitled to financial benefits the income received shall be used on behalf of the child to help pay for the cost of the foster care received, except for resources held in trust for an American Indian child according to provisions in WAC 388-28-650.
(a) Income includes SSI [Supplemental Security Income], RSDI [retirement survivors disability insurance], veteran’s benefits, railroad retirement benefits, inheritances, or any other payments for which the child is eligible, unless specifically exempted by the terms and conditions of the receipt of the income.
(b) Receipt of other income as described above shall not relieve the child’s responsible parent(s) of the liability for payment of child support in accordance with WAC 388-70-075 through 388-70-084.

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Guardianship Estate of Keffeler v. DSHS
32 P.3d 267 (Washington Supreme Court, 2001)

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Bluebook (online)
32 P.3d 267, 145 Wash. 2d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guardianship-estate-of-keffeler-v-department-of-social-health-services-wash-2001.