New York Ex Rel. New York State Office of Children & Family Services v. United States Department of Health & Human Services' Administration for Children & Families

556 F.3d 90, 2009 U.S. App. LEXIS 2850, 2009 WL 350697
CourtCourt of Appeals for the Second Circuit
DecidedFebruary 13, 2009
DocketDocket 07-3858-cv
StatusPublished
Cited by30 cases

This text of 556 F.3d 90 (New York Ex Rel. New York State Office of Children & Family Services v. United States Department of Health & Human Services' Administration for Children & Families) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Ex Rel. New York State Office of Children & Family Services v. United States Department of Health & Human Services' Administration for Children & Families, 556 F.3d 90, 2009 U.S. App. LEXIS 2850, 2009 WL 350697 (2d Cir. 2009).

Opinion

*92 REENA RAGGI, Circuit Judge:

Plaintiff State of New York sued defendants United States Department of Health and Human Services (“HHS”) Administration for Children and Families (“ACF”) and HHS Acting Secretary Charles E. Johnson in the United States District Court for the Northern District of New York (Lawrence E. Kahn, Judge) for failing to reimburse the state for certain foster care maintenance payments as provided by federal law. See 42 U.S.C. §§ 670-679b (Part E, “Federal Payments for Foster Care and Adoption Assistance”). Invoking the Administrative Procedure Act (“APA”), 5 U.S.C. §§ 701-706, New York asserts that defendants cannot rely on the state’s undisputed failure to satisfy the “judicial determination” condition outlined in 45 C.F.R. § 1356.21(b)(2) to justify the challenged reimbursement refusal because that regulation is in conflict with the statute it implements, 42 U.S.C. § 672(a)(1). 3 Having failed to persuade the district court of this argument, New York now appeals a judgment entered on July 17, 2007, which dismissed its complaint pursuant to Fed.R.Civ.P. 12(b)(6) for failure to state a claim upon which relief can be granted.

We conclude that the state’s case was properly dismissed because it rests on a misconstruction of § 672(a)(1). That statute conditions federal reimbursement for foster care maintenance payments on a demonstration that a child’s removal to foster care “was the result of a judicial determination to the effect ... that reasonable efforts of the type described in section 671(a)(15) of this title for a child have been made.” 42 U.S.C. § 672(a)(1). The quoted language plainly signals Congress’s intent to incorporate the full range of “reasonable efforts” required by § 671(a)(15). Thus, when Congress expanded § 671(a)(15) through a provision of the 1997 Adoption and Safe Families Act, Pub.L. No. 105-89, § 101(a), 111 Stat. 2115, 2116-17, that expanded definition of “reasonable efforts” was incorporated in § 672(a)(l)’s “judicial determination” requirement. Because we construe § 672(a)(1) to incorporate § 671(a)(15) as amended, and because 45 C.F.R. § 1356.21 is based on that amended statute’s definition of “reasonable efforts,” New York cannot demonstrate that the regulation is inconsistent with the law and, thus, cannot state a claim under the APA for which relief can be granted. Accordingly, we affirm the judgment of dismissal.

I. Background

A. Statutory Background

Preliminary to discussing the particular facts giving rise to this case, we review the statutory scheme at issue.

In 1980, as part of the Adoption Assistance and Child Welfare Act, Pub.L. No. *93 96-272, § 101, 94 Stat. 500, 501-13 (1980), Congress amended the Social Security Act by creating Title IV-E, which provides for “reimbursement to the states” of part of the “foster care maintenance and adoption assistance payments made by the states on behalf of eligible children” when the states satisfy the requirements of the Act. 4 Vermont Dep’t of Soc. & Rehab. Servs. v. U.S. Dep’t of Health & Human Servs., 798 F.2d 57, 59 (2d Cir.1986) (discussing amendment); see Suter v. Artist M., 503 U.S. 347, 351, 112 S.Ct. 1360, 118 L.Ed.2d 1 (1992) (same). To participate in the federal reimbursement program, a state must create a plan for payment that meets the requirements of 42 U.S.C. § 671(a), and that plan must be approved by the Secretary of HHS pursuant to § 671(b). The § 671(a) requirement relevant to this appeal demands that a state plan “provide[ ] for foster care maintenance payments in accordance with section 672 of this title.” 42 U.S.C. § 671(a)(1). Under § 672(a)(1), foster care maintenance payments are to be made only if a child’s parents or legal guardian entered into a voluntary agreement for foster placement, or “the removal ... was the result of a judicial determination to the effect [1] that continuation [in the home from which the child was removed] would be contrary to the welfare of such child and [2] (effective October 1, 1983) that reasonable efforts of the type described in section 671(a)(15) of this title for a child have been made.” Id. § 672(a)(1) (2003). It is § 672(a)(l)’s requirement that a state obtain a “judicial determination” that it has made “reasonable efforts of the type described in section 671(a)(15)” that is at issue in this case.

Prior to 1997, the “reasonable efforts” requirement of § 671(a)(15) was reflected in the following language:

In order for a State to be eligible for payments under this part, it shall have a plan approved by the Secretary which
(15) effective October 1, 1983, provides that, in each case, reasonable efforts will be made (A) prior to the placement of a child in foster care, to prevent or eliminate the need for removal of the child from his home, and (B) to make it possible for the child to return to his home.

42 U.S.C. § 671(a) (1983). Thus, prior to 1997, if a child’s removal to foster care was not voluntary, a state was required to obtain a judicial determination that (1) continuation of the child in the home from which he was removed was contrary to his welfare, and (2) the state had made reasonable efforts (a) to prevent or eliminate the need to remove the child from his home, and (b) to make it possible for the child to return to his home. New York does not dispute that, prior to 1997, it was obliged to satisfy these requirements to qualify for federal reimbursement of its foster care maintenance payments.

In 1997, with the enactment of the Adoption and Safe Families Act, Congress *94 expanded the description of “reasonable efforts” in § 671(a)(15), placing the original language in subpart (B), while providing for the whole to read as follows:

In order for a State to be eligible for payments under this part, it shall have a plan approved by the Secretary which
(15) provides that—

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556 F.3d 90, 2009 U.S. App. LEXIS 2850, 2009 WL 350697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-ex-rel-new-york-state-office-of-children-family-services-v-ca2-2009.