Moseley v. Department of Public Welfare

598 A.2d 317, 142 Pa. Commw. 9, 1991 Pa. Commw. LEXIS 554
CourtCommonwealth Court of Pennsylvania
DecidedAugust 1, 1991
DocketNo. 1589 C.D. 1990
StatusPublished
Cited by1 cases

This text of 598 A.2d 317 (Moseley v. Department of Public Welfare) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moseley v. Department of Public Welfare, 598 A.2d 317, 142 Pa. Commw. 9, 1991 Pa. Commw. LEXIS 554 (Pa. Ct. App. 1991).

Opinion

PALLADINO, Judge.

Mary Moseley (Recipient) appeals an order of the Secretary (Secretary) of the Department of Public Welfare (DPW) who, upon a request for reconsideration filed by the Philadelphia County Assistance Office (CAO), vacated a decision of the Director of the Office of Hearings and Appeals (Director) affirming a hearing officer’s decision that payments received by Recipient were improperly treated as income. The Secretary held that the payment was income. We vacate and remand.

Recipient owns a house in Philadelphia County on which she paid local real estate taxes in 1988. In January 1989, Recipient entered a nursing home and on February 15, 1989, began receiving supplemental medical assistance-nursing home care payments (MA). In July 1989, pursuant to the Senior Citizens Rebate and Assistance Act (Rebate Act),1 [12]*12the commonwealth sent Recipient a $500 rebate of the 1988 real estate taxes and an “inflation dividend” of $75.00.2 Recipient notified the CAO of the rebate. The CAO treated the rebate as income available to Recipient to pay for her nursing home care costs and adjusted the amount of her MA benefits.

Recipient appealed, and following a hearing before a hearing officer, the rebate was deemed improperly treated as income. The Director reviewed the decision and affirmed.

The CAO requested and received reconsideration by the Secretary,3 who, thereafter, issued the following order which we reproduce in its entirety, because the sufficiency of this order is in dispute.

AND NOW, this 27th day of June, 1990, having granted the CAO’s application for reconsideration of the decision entered by the Office of Hearings and Appeals in this matter, it is hereby ORDERED and DECREED that the Order entered by the Office of Hearings and Appeals in this matter on April 10, 1990, is VACATED and the appeal of the appellant is denied.
A review of the regulations and hearing record reveals that the action by the County Assistance Office to consider as income a rebate received by the appellant was correct.
The appellant may take issue with this Final Order and may appeal therefrom to the Commonwealth Court of [13]*13Pennsylvania within thirty (30) days from the date of this Final Order.

On appeal to this court,4 Recipient raises three issues: (1) whether the DPW regulation permitting the CAO to request reconsideration is preempted by federal regulations; (2) whether the Secretary’s decision is invalid because it was not issued within 90 days of Recipient’s request for a hearing; and (3) whether the Secretary’s order is invalid because it fails to set forth the reasons for the decision.

As to the first issue, Recipient argues that 55 Pa.Code § 275.4(h)(4)(h), which permits either party to a proceeding to request reconsideration by the Secretary, is preempted by federal regulations. Recipient states that the intent to preempt is demonstrated three ways: (1) the federal regulations expressly provide a recipient with the right to request reconsideration but do not provide a CAO with this right; (2) the federal regulation requiring “final administrative action” within 90 days after a request for a hearing conflicts with DPW regulations permitting a Secretary to reconsider Director decisions beyond the 90 day period; (3) the federal regulation, requiring a CAO to “promptly make corrective payments” following a State agency decision in a recipient’s favor, conflicts with a DPW regulation, staying payment to a recipient where a CAO requests reconsideration of a decision.

Recipient’s preemption argument is not premised on explicit preemptive language. Therefore, the following general law as to preemption by implication is instructive.

When there is no explicit preemptive language, an intent to preempt can be inferred where (1) the federal scheme of regulation is so pervasive as to create a reasonable inference that Congress left no room for the states to supplement the law in that area or (2) the [14]*14federal law pertains to an area in which “the federal interest is so dominant that the federal system will be assumed to preclude enforcement of state law on the same subject” or (3) the goal to be obtained by the federal law and “the character of obligations imposed by it may reveal the same purpose.”
Carolina Freight Carriers v. Pennsylvania Human Relations Commission, 99 Pa.Commonwealth Ct. 428, 433, 513 A.2d 579, 582 (1986) (citing and quoting Fidelity Federal Savings and Loan Association v. De La Cuesta, 458 U.S. 141, 153, 102 S.Ct. 3014, 3022, 73 L.Ed.2d 664 (1982)). Even when federal law has not completely displaced state law, state law is nullified if it either conflicts with federal law, an event which occurs when compliance with both state and federal law is impossible, or is an obstacle to the accomplishment and execution of the goals of the federal law. Fidelity Federal.

Burns International Security Services, Incorporated v. Pennsylvania Human Relations Commission, 119 Pa.Commonwealth Ct. 418, 424, 547 A.2d 818, 821 (1988) (emphasis added). Initially, we note Recipient does not argue that state regulation in this area is completely displaced by federal regulation. Recipient contends that the state regulation permitting a CAO to request reconsideration must be nullified because it conflicts with federal regulations. Based on the principles outlined above, we hold that we cannot nullify the DPW regulations because of an alleged conflict unless compliance with both federal regulations and DPW regulations is impossible.

Full consideration of the conflict issue requires a comparison of the federal regulation hearing requirements and the hearing requirements under DPW regulations. The federal regulations in issue5 require a state to provide either a [15]*15“hearing before the agency” or an “evidentiary hearing at the local level, with a right of appeal to a State agency hearing.” 42 C.F.R. § 431.205(b). Because this commonwealth provides the latter two level process, we will confine our discussion to the requirements of this system.

Under federal regulations, the first level of review consists of a “local evidentiary hearing,” at which a recipient and a local agency present evidence and argument. The local hearing officer must issue a decision summarizing facts and citing supporting regulations. Upon a decision adverse to a recipient, the recipient is entitled to a second level of review by the state agency.6 The state agency review may consist of an examination of the local hearing record to decide if the local hearing officer’s decision is supported by substantial evidence.

Under DPW regulations, an MA recipient, adversely affected by a CAO decision, can request and must receive a fair hearing before a local hearing officer.7

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598 A.2d 317, 142 Pa. Commw. 9, 1991 Pa. Commw. LEXIS 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moseley-v-department-of-public-welfare-pacommwct-1991.