Rural Alaska Community Action Program v. Smith

847 F.2d 535, 1988 WL 50125
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 23, 1988
DocketNo. 87-3887
StatusPublished
Cited by4 cases

This text of 847 F.2d 535 (Rural Alaska Community Action Program v. Smith) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rural Alaska Community Action Program v. Smith, 847 F.2d 535, 1988 WL 50125 (9th Cir. 1988).

Opinion

NORRIS, Circuit Judge:

Rural Alaska Community Action Program (“Rural Alaska”) appeals a summary judgment in favor of state and federal officials and agencies responsible for Alaska’s Community Services Block Grant (CSBG) program. Rural Alaska seeks a declaration that a 1986 amendment to Alaska’s CSBG program plan is void because the state failed to follow certain procedures in amending the plan. We affirm the summary judgment because the procedural requirements that Rural Alaska seeks to impose on Alaska’s CSBG program are not statutorily required.

I

The CSBG program was created by Congress in 1981 to provide federal funds to [536]*536states to use “to ameliorate the causes of poverty in communities within the State[s]42 U.S.C. § 9901(a). The block grant system, which permits the states to administer the programs with minimal federal involvement and few federal procedural requirements, replaced a large number of categorical social services grants programs previously administered directly by the federal government. See generally South Eastern Human Development Corp. v. Schweiker, 687 F.2d 1150, 1151 (8th Cir.1982); S.Rep. No. 139, 97th Cong., 1st Sess. 908, reprinted in 1981 U.S.Code Cong. & Admin.News 396, 932. To receive federal funds under the program, a state must annually submit to the Office of Community Services (OCS) of the United States Department of Health and Human Services (DHHS) an application certifying that the state will distribute the funds only for the purposes permitted by the statute and only to community services organizations deemed eligible under the statute. 42 U.S. C. § 9904. The state must also submit to DHHS a plan for the proposed use of the CSBG funds. 42 U.S.C. § 9904(d). When the state receives the funds, it distributes them to community action agencies that provide services to the poor.

There are two community action agencies in Alaska that are eligible to receive CSBG funds: Rural Alaska and Southeast Alaska Community Action Program (SEACAP). Prior to 1986, Alaska’s CSBG plans allocated 90 percent of available funds to Rural Alaska and ten percent to SEACAP. The 90 percent/10 percent formula for dividing the funds was based on the proportion of the state’s poor people living in the area served by each agency. Because SEACAP found it difficult to operate receiving only ten percent of the available funds, DCRA proposed in the 1986 CSBG plan to modify the formula to give each agency a base amount of $50,000 and to divide the remaining available funds according to the 90 percent/10 percent formula. Thus, the plan proposed to divide the $1,051,504 in CSBG funds that Alaska was estimated to receive in 1986 as follows: $250,180 would be allocated directly to native organizations,1 $80,132 would be retained by the state to cover administrative expenses, and the remaining $721,192 would be divided between Rural Alaska and SEACAP by allocating $50,000 to each and then giving Rural Alaska 90 percent of the remaining $621,192 ($560,998) and SEACAP 10 percent ($60,194). In April 1986, after a legislative hearing, the plan was adopted, signed by the state governor, and sent to DHHS, as required by 42 U.S.C. § 9904(d).

In July 1986, DHHS notified Alaska’s Department of Community and Regional Affairs (DCRA), the state agency responsible for administering Alaska’s CSBG program, that approximately $78,000 of the $250,180 that the 1986 plan had originally allocated to a native organization had been returned unspent to DHHS and was being reallocated to the state of Alaska. DCRA decided to distribute $55,000 of these funds to SEACAP to provide seed money for a new project, and $15,000 to Rural Alaska. Because this allocation differed from the allocation formula provided in the 1986 plan, DCRA proposed to amend the plan in accordance with the amendment procedure outlined in the plan. That procedure provides that “[djuring the program year, in consultation with local grantees, this plan may be amended, as appropriate. OCS will be notified of State Plan amendments.” After soliciting comments from SEACAP and Rural Alaska on the proposed amendment, DCRA submitted the plan amendment to OCS.

Rural Alaska promptly filed a complaint with OCS pursuant to 45 C.F.R. § 96.50 claiming that the plan amendment was invalid because it was adopted without the state having conducted a legislative hearing on it.2 In rejecting the complaint, OCS [537]*537decided that the federal statute governing the CSBG program permits a state to amend its plan without conducting a legislative hearing.

Thus rebuffed, Rural Alaska filed this suit in district court seeking declaratory and injunctive relief prohibiting the state from distributing the additional funds without first conducting a legislative hearing on the plan amendment.

II

We first address a dispute between the parties concerning the proper standard of review. The parties agree that the district court’s legal conclusions are reviewed de novo on appeal from a grant of summary judgment. Ashton v. Cory, 780 F.2d 816, 818 (9th Cir.1986). The dispute concerns whether we must defer to DCRA’s interpretation of the statutory provisions governing the CSBG program.

Appellees contend that Alaska’s interpretation of the statute must be upheld unless it is clearly erroneous. They rely on the federal regulation providing for OCS review of state agency decisions concerning block grants, which provides that “under the block grant programs the States are primarily responsible for interpreting the governing statutory provisions_ In resolving any issue raised by a complaint ... the Department will defer to a State’s interpretation of ... the provisions of the block grant statutes unless the interpretation is clearly erroneous.” 45 C.F.R. § 96.50(e) (1987). By its own terms, the regulation applies to OCS review of administrative complaints, not to federal court proceedings such as this. OCS review of administrative complaints typically involves an evaluation of the facts and state policies underlying the plan. A deferential standard of review appropriately protects the states’ autonomy under the block grant system and serves the express Congressional goal of minimizing federal administrative oversight of both substantive and procedural aspects of state block grant programs. See S.Rep. No. 139, 97th Cong., 1st Sess. 909, reprinted in 1981 U.S.Code Cong. & Admin.News 933 (“the committee intends that States be provided with the broadest possible latitude in the use of block grant funds and be free from all but the most minimal and necessary federal administrative and regulatory direction”). Such deference is inappropriate where, as here, a broader procedural question is presented and where an interpretation of the statute should be uniform among all states.

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Rural Alaska Community Action Program v. Jeff Smith
847 F.2d 535 (Ninth Circuit, 1988)

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Bluebook (online)
847 F.2d 535, 1988 WL 50125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rural-alaska-community-action-program-v-smith-ca9-1988.