State ex rel. Department of Human Services v. Palmer

2009 OK CIV APP 38, 212 P.3d 491, 2009 Okla. Civ. App. LEXIS 14
CourtCourt of Civil Appeals of Oklahoma
DecidedMarch 13, 2009
DocketNo. 105,059
StatusPublished
Cited by1 cases

This text of 2009 OK CIV APP 38 (State ex rel. Department of Human Services v. Palmer) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Department of Human Services v. Palmer, 2009 OK CIV APP 38, 212 P.3d 491, 2009 Okla. Civ. App. LEXIS 14 (Okla. Ct. App. 2009).

Opinion

LARRY JOPLIN, Judge.

4 1 Plaintiff/Appellant, State of Oklahoma, ex rel. Department of Human Services (DHS), Child Support Enforcement Division (CSED), seeks review of the district court's order which reversed an administrative ruling and directed the return of seized funds to Defendant/Appellee, Jayson Palmer (Palmer), in a child support enforcement action. DHS asserts the district court erred as a matter of fact and law.

1 2 Palmer received the money by virtue of the Energy Employees Occupational Illness Compensation Program, after the death of his father, who had been exposed to radiation poisoning as a result of his employment. 42 U.S.C. $ 7384 et seq. DHS seized the funds, totaling approximately $12,960.00, under the terms of the Debt Collection Improvement Act of 1996, 81 C.E.R. § 285.1, for the payment of delinquent child support owed on behalf of one of Palmer's three children. Palmer appeared before the Office of Administrative Hearings on the child support en-foreement matter after he requested return of seized funds.

13 At the hearing before the administrative law judge, Palmer asked the funds be distributed equally between his three children, due to the nature and source of the funds as an inheritance of sorts from his father. The administrative judge denied his request and applied the seized funds to the amount of child support Palmer owed for the one child at issue. Palmer appealed the agency decision to the district court, which reversed the agency decision and ordered the return of the seized funds to Palmer.

14 Under the Oklahoma Administrative Procedures Act (OAPA), the district court's review of the agency decision is limited to the record made before the agency below. 75 O.S.2001 § 321; Stipe v. State, ex rel. Bd. Tr. of Oklahoma Public Employees Retirement Sys., 2008 OK 52, ¶ 7, 188 P.3d 120, 122; City of Tulsa v. Public Employees Relations Board, 1998 OK 92, ¶ 12, 967 P.2d 1214, 1219. "An appellate court may not substitute its judgment for that of the agency on the latter's factual determinations," and "[aln agency's order will be affirmed if the record contains substantial evidence in support of the facts upon which the decision is based, and if the order is otherwise free of [493]*493error." Oklahoma Department of Public Safety v. McCrady, 2007 OK 39, ¶ 10, 176 P.3d 1194, 1200-1201. (Footnotes omitted). That is to say, the reviewing courts, whether district or appellate, must affirm the ageney decision if it is found to be valid and free from prejudicial error. 75 O.S.2001 § 322(8).

15 However, the appellate court, "may set aside or modify the order, or reverse it and remand it to the agency for further proceedings, if it determines that the substantial rights of the appellant or petitioner for review have been prejudiced because the agency findings, inferences, conclusions or decisions, are:

(a) in violation of constitutional provisions; or
(b) in excess of the statutory authority or jurisdiction of the ageney; or
(c) made upon unlawful procedure; or
(d) affected by other error of law[.]"

75 0.9$.2001 § 822(1)(a)-(d). On appeal, the district court below determined the issue before it was a matter of law and reversed the agency decision after a de novo review. For the following reasons, the order of the district court is reversed and this cause remanded.

Offset of Energy Employees Occupational Iliness Compensation Program is not listed under the exceptions outlined in Title 31 C.F.R. § 285.1

16 The offset provisions of the Debt Collection Improvement Act of 1996 are contained in 31 C.F.R. § 285.1. The federal payments which are not subject to offset under this section are contained in subsection 1):

(1) Payments subject to offset. Federal payments subject to offset under this seetion include all Federal payments except:
(1) Payments due to an individual under
(i) Title IV of the Higher Education Act of 1965;
(ii) The Social Security Act;
(ii) Part B of the Black Lung Benefits Act;
(iv) Any law administered by the Railroad Retirement Board; '
(2) Payments which the Secretary determines are exempt from offset in accordance with paragraph (k) of this section; 1
(3) Payments from which collection of past-due support by administrative offset is expressly prohibited by law;
(4) Payments made under the Internal Revenue Code of 1986 (except that tax refund payments are subject to offset under separate authority); and
(5) Payments made under the tariff laws of the United States.

31 CFR. § 285.10).

17 Palmer seeks application of the offset exception for the funds he received pursuant to the Energy Employees Occupational IIIness Compensation Program. In arguing for an exception, Palmer claims the funds he received by virtue of the Energy Employees program are essentially the same as those provided under the Part B Black Lung Benefits exception contained in § 285.1(@)(1)(iii). Palmer asserts the Energy Employees program contains a declaration of purpose which is virtually identical to the declaration articulated for the Black Lung Benefits Act. See 42 U.S.C. §$ 7884 (Energy Employees Occupational Iliness Compensation Program, Part A. Establishment of Compensation Program and Compensation Fund); 830 U.S.C. § 901 (Black Lung Benefits Act, general provisions).

T8 Despite the similar language and the similar cireumstances under which the two acts were created, we cannot find any authority for expanding the exceptions of § 285.1() [494]*494in the manner Palmer proposes. We can only assume Congress articulated the exeep-tions it intended to provide and cannot expand on the specific exceptions contained in the statute, absent some compelling authority permitting such an expansion. George E. Failing Co. v. Watkins, 2000 OK 76, ¶ 7, 14 P.3d 52, 56 (in statutory interpretation court presumes law making body expressed its intent and intended what it expressed).

T9 As a result, the Debt Collection Improvement Act of 1996 does not provide an offset exception for funds received pursuant to the Energy Employees Occupational IIIness Compensation Program.

Prohibition against the assignment of claims does not prevent child support enforcement from accessing funds ultimately realized

110 The Energy Employees Occupational IlIness Compensation Program contains a prohibition against the assignment or transfer of claims. 42 U.S.C. § 7385f. It is Palmer's position that this prohibition precludes the Child Support Enforcement Division from seizing the funds onee the claim has concluded and the money has been released for payment to Palmer.

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Related

STATE EX REL. DHS, CSED v. Palmer
2009 OK CIV APP 38 (Court of Civil Appeals of Oklahoma, 2009)

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Bluebook (online)
2009 OK CIV APP 38, 212 P.3d 491, 2009 Okla. Civ. App. LEXIS 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-human-services-v-palmer-oklacivapp-2009.