Klaips v. Bergland

715 F.2d 477
Court of Appeals for the Tenth Circuit·Decided August 19, 1983·No. No. 80-2100·Published·Cited by 9 cases

Opinion

HOLLOWAY, Circuit Judge.

This is a class action brought for welfare recipients of the State of Utah to adjudicate their rights under the Food Stamp Act of 1964, as amended, 7 U.S.C. § 2011 et seq. (1970). Plaintiffs represent all persons in Utah who have been, are, or will be participants in the food stamp program while at the same time participating in a Work Experience and Training project (WEAT) as a condition of eligibility for General Assistance (GA) monies or Aid to Families with Dependent Children (AFDC).1 The defendants are Robert Bergland, Secretary of Agriculture; Anthony Mitchell, individually, and as Executive Director of the Utah Department of Social Services; and Norman Angus, individually, and as Deputy Director of the Utah Department of Social Services. Defendants were at all times pertinent to this action the officials with ultimate responsibility for the administration of the food stamp program.

Plaintiffs argue that a wrongful denial to them of the benefit of the Earned Income Deduction, 7 C.F.R. § 271.3(c)(1)(iii)(a) (1978), resulting from refusal to treat WEAT income as earned income, caused them to receive fewer food stamp benefits than those to which the regulations under the Food Stamp Act entitled them. Plaintiffs sought both a declaratory judgment as to the proper classification of such income and retroactive food stamp benefits equal to those which they had been wrongly denied.

The case was considered on stipulated facts, briefs and argument and the trial court entered findings and conclusions, and granted partial relief to the plaintiffs. (IR. 153-56).2 The court found that it was possible for the State to identify substantially all of the potential class members with eligibility retroactive to June 20, 1978; that a declaratory judgment may be entered for the plaintiff class that under the Food Stamp Act of 1977, in light of the Secretary’s clarifying order of June 20, 1978, the class was entitled to relief retroactively to June 20, 1978; and that claims for [479]*479any relief after April 1, 1980, are moot.3 The court found further that the State should identify those who would have been eligible for increased stamps from June 21, 1978, to April 1, 1980, but for the State’s failure to adopt a policy in conformity with the June 20, 1978, clarifying regulation; that the State should make payment of a retroactive benefit to the claimants; that the Federal Government should reimburse the State for the stamps issued retroactively and one-half of the administrative cost thereof; but that because of the difficult practical problems of identification, the uncertainty of entitlement prior to June 20, 1978, and other reasons stated, earlier reimbursement should not be ordered. The judgment entered held that after June 20, 1978, the denial of the earned income deduction to plaintiffs who participated in the food stamp program and also the WEAT Project violated plaintiffs’ rights under the Food Stamp Act.

Plaintiffs bring this timely appeal from the district court’s judgment only insofar as it denied their claims for retroactive benefits prior to June 20, 1978. Defendants appeal no portion of the court’s order.

I

Congress passed the Food Stamp Act in 1964 to “safeguard the health and well-being of the Nations [sic] population and raise levels of nutrition among low-income households.” 4 Pursuant to the Act, the United States Department of Agriculture (USDA) instituted a program to provide food assistance to those who cannot afford to purchase a nutritionally adequate diet. The USDA administers the program at the national level, and participation by each state is voluntary.

For a household to be eligible for the program the state of the household’s residence must have elected to participate. In administering the program, the federal government, through the USDA, pays 100 percent of the program’s benefits and all administrative costs at the national level. Should a state decide to participate, state agencies, usually those responsible for public assistance programs, administer the program at the state and local levels and pay their own administrative expenses. Participating states must submit to the USDA for approval, plans for the operation of state programs in accordance with statutory and USDA standards. The State of Utah participates in the food stamp program through its Department of Social Services (UDSS), and that department submitted such a plan to the USDA. (I R. 104).

The program is designed to operate through the normal channels of trade. An eligible low income household pays a certain amount of money, that amount depending upon the household income and number of persons in the household, and it then receives food stamp coupons of a greater face value than the amount paid. The coupons are redeemable at face value at participating retail stores authorized by the USDA. Federal and state regulations define “income” for purposes of the program, and they provide for certain deductions from income to arrive at net household income. A household’s net income is the figure used to determine the amount an eligible household must pay for its food stamps. Applicable deductions work to decrease a household’s net income for food stamp purposes and thereby to increase its food stamp benefits.

One such deduction is the “Earned Income Deduction.”5 Until March 1, 1979, this deduction was in the amount of:

[480]*480Ten per centum of income from compensation for services performed as an employee or training allowance not to exceed $30.00 per household per month.

7 C.F.R. § 271.3(c)(l)(iii)(a) (1978). The Utah regulations incorporated this deduction, together with an. explanation of its purpose:

The ten percent deduction is intended to cover those expenses incidental to employment and/or training and includes transportation, meals away from home, special clothing and other incidentals necessary for such employment or training including placement fees paid to employment agencies, etc. necessary for such employment and/or training.

Vol. IV UDSS Assistance Payments Administration Manual 401.41.

On May 2, 1978, the Federal Register published notice by the USDA of a proposed rulemaking involving the food stamp program.6 The notice set forth an extensive overhaul of the regulations implementing the program to comport with the provisions of the Food Stamp Act of 1977.7 The proposed regulations outlined a revised definition of “income” for purposes of the program, including a definition of “earned income”:

(b) Definition of income. Household income shall mean all income from whatever source.... (1) Earned income shall include: (i) All wages and salaries of an employee. Assistance payments from programs which require, as a condition of eligibility, the actual performance of work without compensation other than the assistance payments themselves, shall be considered earned income to the extent that the payments actually substitute for wages or salaries.

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

Klaips v. Bergland, 715 F.2d 477 (10th Cir. 1983).

715 F.2d 477 (Klaips v. Bergland) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Stone v. McGowan
308 F. Supp. 2d 79 (N.D. New York, 2004)
United States v. City Of New York
359 F.3d 83 (Second Circuit, 2004)
Johns v. Stewart
57 F.3d 1544 (Tenth Circuit, 1995)
Johns v. Stewart
898 F. Supp. 824 (D. Utah, 1994)
West v. Bowen
879 F.2d 1122 (Third Circuit, 1989)
Lynch v. Min
684 F. Supp. 498 (M.D. Tennessee, 1988)
Klaips v. Bergland
715 F.2d 477 (Tenth Circuit, 1983)