Camerena v. Department of Public Welfare

ROBERT H. McGHEE,

Judge of the Superior Court (specially concurring).

I would reverse the judgment, but for a different reason. The Welfare Department in its notice of suspension of payments gave the reason that, “Mr. Antonio Valenzuela was found living in the house.” The State Welfare Department, by Regulation 3-403 (6) (D) provided as follows: “The Employable Unrelated Adult Male In The Home. When an employable unrelated adult male is known to be living in an ADC household and it is apparent he is acting as head of the household, the grant will be discontinued on the basis the children are no longer deprived of parental support. The grant will not be reinstated until ‘deprivation of parental support’ as an eligibility factor is again established and verified. When the caseworker establishes the presence of an unrelated adult male in the home of an ADC applicant or recipient, and as the result rejects the application or discontinues an active case, and the person whose application was rejected or grant discontinued makes a new application or requests reinstatement, on the basis the unrelated adult male is no longer in the home, the new investigation of deprivation of parental support must determine without doubt the man in question has removed himself completely from the household * * *

The United States Supreme Court in King v. Smith, 392 U.S. 309, 88 S.Ct. 2128, 20 L.Ed.2d 1118 (1968) had before it a similar regulation of the Alabama Department of Pensions and Security. The three-judge District Court found the regu*128lation to be inconsistent with both the Social Security Act and the Equal Protection Clause. Smith v. King, 277 F.Supp. 31 (D.C.M.D.Ala.1967). The Supreme Court affirmed without reaching the constitutional issue, although one judge, Justice Douglas, in a concurring opinion argued for the constitutional issue as set forth in the opinion of the three-judge District Court. In this particular case I feel that we should be no less hesitant in pioneering a new route through the eddies and undercurrents of the uncertain waters of constitutional law. This Court is bound by the United States Supreme Court’s construction of the Social Security Act, and for that reason the decision of the Superior Court should be reversed.

Appellant contends that since the regulations of the Welfare Department do not require a hearing prior to termination of benefits she has been deprived of her benefits without due process of law. The majority opinion agrees that to so deprive her without a prior hearing would be unconstitutional, but construes the statutes in question as requiring a prior hearing. Reliance is placed upon the cases cited, and particularly Schecter v. Killingsworth, 93 Ariz. 273, 380 P.2d 136 (1963).

Before considering Schecter we should first consider the nature of the interest of the State in the collection and expenditure of its revenue. The constitutionality of summary administrative procedures in collection of revenue has been the subject of cases before both the United States Supreme Court and the Arizona Supreme Court.

In Smotkin v. Peterson, 73 Ariz. 1, 236 P.2d 743 (1951), the Arizona Supreme Court cited with approval from Washington Nat. Bank v. Daily, 166 Ind. 631, 77 N.E. 53, 55, as follows: “* * * it is well to bear in mind that it is agreed on all hands that the power to tax is an attribute of sovereignty, and prerogative of the State that is indispensably necessary, not only to the public welfare, but to the maintenance of the government, and therefore yields to no limitation and no restriction by courts beyond what the people themselves have set up in the fundamental law.” The Court further cited with approval from State ex rel. Lane v. Superior Court, etc., 72 Ariz. 388, 236 P.2d 461, 463 as follows: “If there is some semblance of authority for the imposition of such tax, plaintiff’s remedy is to pay the tax under protest, then test its validity by suing for recovery of the amount so paid * * * ” and held that this furnishes him an adequate remedy at law and does not violate the due process clause of either the State or Federal Constitution.

Justice Brandéis in Phillips v. Commissioner of Internal Revenue, 283 U.S. 589, at 595, 51 S.Ct. 608, at 611, 75 L.Ed. 1289, stated : “The right of the United States to collect its internal revenue by summary administrative proceedings has long been settled. Where, as here, adequate opportunity is afforded for a later judicial determination of the legal rights, summary proceedings to secure prompt performance of pecuniary obligations to the government have been consistently sustained.”

Although the above cases deal with revenues, the underlying reasons of maintenance of the government and the public welfare should be just as applicable to expenditures. Due process should be accorded by subsequent review in one case just as logically as in the other. The State should have as much right to conserve its revenues as to levy them. The old adage that “a dollar saved is a dollar earned” should be as applicable to the government as to the private individual.

I do not contend that the Welfare Department should be arbitrary and in a routine manner cut off recipients from needed assistance without prior notice if there is sufficient time for a fair hearing prior to the time of the next scheduled payment. If there is a laxity on the part of the State Department of Public Welfare in providing well-defined procedures for an expeditious hearing, either the Department or the Legislature might better serve the public *129interest by improving those procedures. On the other hand, I do not feel that this Court should by judicial edict place the Department in the position of not being able to suspend payment when they have knowledge that an illegal payment is about to be made. And in this respect, we should note that this decision will affect not only the A.D.C. program, but also Old Age Assistance, Aid to Needy Blind, and General Assistance programs as well.

Schecter, in discussing the right of an administrative agency to suspend a driver’s license without a prior hearing, states the test to be the determination of whether or not there is a “compelling public interest” demanding immediate action. The Court determined that the use of the highways by the driver was in the nature of a right and not a privilege, and that there was no “compelling public interest” requiring that an uninsured driver surrender, prior to a hearing, his license if he did not post security.

I would agree that regardless of whether the receiving of A.D.C. is a right or a privilege, it should not be terminated without procedural due process. If the “compelling public interest” test is applicable, we should consider that the State has a “compelling public interest” in protecting the tax dollars levied to sustain welfare payments. As a practical matter it is unlikely that money can be recovered from welfare recipients who have improperly received money while waiting a prior hearing.

In view of the ever present shortage of money for welfare purposes it would seem that the State has a “compelling public interest” in conserving tax dollars to aid as many deserving persons in need as possible.

The question then arises as to whether the statute requires a prior hearing. In Schecter the statement is made that “where differing constructions are possible, it is our duty to construe it in such a manner that it will be constitutional,” citing State v. A. J. Bayless Markets, Inc., 86 Ariz. 193, 342 P.2d 1088 (1959). The actual statement in that case was that “* * * courts should give a sensible construction to statutes and uphold them if possible * * In construction of statutes a cardinal rule is to ascertain and give effect to the intention of the Legislature. Phoenix Title & Trust Company v. Burns, 96 Ariz. 332, 395 P.2d 532 (1964). While (1) courts are not controlled by the literal language of a statute if this leads to an absurdity and (2) the spirit of the law prevails, (City of Phoenix v. Superior Court, etc., 101 Ariz. 265, 419 P.2d 49) if the language is plain or unambiguous, courts should observe the obvious and natural import of the language used. Ernst v. Collins, 81 Ariz. 178, 302 P.2d 941 (1956). Words of a statute should be given their ordinary meaning unless it appears from their context that a different meaning is intended. State v. Miller, 100 Ariz. 288, 413 P.2d 757 (1966). A.R.S. § 1-213 provides that “words and phrases shall be construed according to the common and approved use of the language. Technical words and phrases and those which have acquired a peculiar and appropriate meaning in the law shall be construed according to such peculiar and appropriate meaning.” If there is no ambiguity in the statute, and the language used does not lead to an impossibility or an absurdity, there is no occasion to resort to rules of statutory construction. City of Mesa v. Killingsworth, 96 Ariz. 290, 394 P.2d 410 (1964); Marquez v. Rapid Harvest Co., 89 Ariz. 62, 358 P.2d 168 (1960).

In applying the above rules we should first ascertain the natural meaning of the language used and see if there is any ambiguity, and if any impossibility or absurdity results from applying their natural or ordinary meaning, when considered along with the spirit of the statute.

The language in A.R.S. § 46-204, subsec. B, at issue is: “when an application is rejected wholly or in part, or when modification is made, written notice shall be given to the applicant. Such notice shall inform the applicant or recipient of the right to a hearing on the rejection or modification.” *130(Emphasis added). The statute does not say that “when it is proposed to reject,” or that “when a modification is proposed” notice shall be given. Certainly the words “when an application is rejected” speak in terms of an accomplished fact. If there should be any ambiguity in the expression “when modification is made,” the maxim “noscitur a socius” should be applicable. “Associated words explain and limit each other. When a word used in a statute is ambiguous or vague, its meaning may be made clear and specific by considering the company in which it is found and the meaning of the terms which are associated with it.” Black on Interpretation of Laws, 2nd, as quoted in Southern Pacific Co. v. Corporation Commission, 39 Ariz. 1, 3 P.2d 518 (1931); also see City of Phoenix v. Yates, 69 Ariz. 68, 208 P.2d 1147 (1949).

Sec. 46-204 should be considered in pari materia with Sec. 46-211 if there is any ambiguity. Home Owners’ Loan Corporation v. City of Phoenix, 51 Ariz. 455, 77 P.2d 818 (1938). Section 46-211, subsec. A, among other things, provides that, “The department may at any time cancel and revoke assistance or service for cause, and it may for cause suspend assistance or service for such period as it deems proper.” (Emphasis added). It is further provided that the Department may after investigation change the amount of service “as the department deems necessary.” If the Legislature had intended a prior hearing for change or termination of benefits, it seems unlikely that the words “at any time” and “as it deems proper” would have been used instead of language making such changes or termination contingent upon a prior hearing.

The provision of A.R.S. § 46-211, subsec. B providing that all decisions “shall be subject to review” should be considered in its ordinary use and meaning. A.R.S. § 1-213. The term “review” in its ordinary use and meaning has reference to the general appellate process, “* * * and which produces, or results in, the affirmance, modification, setting aside, or reversal of a judgment or final order.” (Emphasis added). State v. Dodge, 10 Ohio App.2d 92, 226 N.E.2d 156, 162; Western Drug of Great Falls v. Gosman, 141 Mont. 8, 374 P.2d 507, 510; Pavick v. Glen Alden Coal Co., 140 Pa.Super. 165, 14 A.2d 161, 163. There is no implication in the statute that it deals with an administrative process which must be reviewed before becoming effective.

Emphasis is added to the above view when the welfare statutes are considered in light of the Administrative Procedure Act which required a prior hearing when first adopted, but which was promptly amended one year later to exempt the State Department of Public Welfare from the provisions of the Act.

Section 12-901(2) of the Administrative Procedure Act provides that in all cases when a statute or rule provides for, or permits an application for a rehearing, or other method of administrative review, the decision is not final until the decision on review is rendered. This section remains the same as originally passed. Sec. 2, Ch. 101, 1954.

Section 12-902 as originally passed, Sec. 3, Ch. 101, 1954, provided for the application of the Act to every action to review, except when a different procedure was specifically provided for. However, on March 12, 1955, the Act was amended. (House Bill No. 127, Ch. 30, 1955, Session Laws of Arizona) to exempt, of all the administrative departments, only the State Department of Public Welfare from its provisions. The provisions of §§ 46-204 and 46-211 of the welfare law remain in substantially the same form as originally passed in 1948. Ch. 20, L.1948, 7th S.S. In 1954 the Department’s decision became subject to the administrative Procedure Act, only to be exempted one year later. If the Legislature had intended to provide for prior review of the administrative decisions of the Department when removing the Department from the provisions of the Administrative Procedure Act in 1955, it should seem that it would have made some provision for this.

*131There is a presumption that the Legislature hy statutory amendments intends to make a change in existing law, and that in dealing with separate statutes the Court should construe them so as to give meaning to both, if possible. Finch v. State Department of Public Welfare, 80 Ariz. 226, 229, 295 P.2d 846 (1956). One of the most substantial rights extended to a person seeking a review under the Administrative Procedure Act is the fact that, “* * * no administrative decision of such agency is final as to the party applying therefore until the rehearing or review is denied, or the decision on rehearing or review is rendered.” A.R.S. § 12-901(2). The Legislature must be presumed to have been aware of this at the time it removed the Welfare Department from provisions of the Act.

Therefore, I conclude that there is no ambiguity in the language used requiring the use of rules of construction. The language in its context and in its common use is in accord with the spirit of the law. It leads to no absurdities. The words of the statute in their ordinary use result in a constitutional enactment, and therefore there is no issue of an ambiguity requiring a construction of the statute to preserve its constitutionality.

Appellant argues that there is a denial of due process since there is no right of appeal to the courts provided in the welfare law. In addition to the reasoning of the majority, I would point out that this view has not been accepted by the United States Supreme Court, which in Application of Gault, 387 U.S. 1, 87 S.Ct. 1428, 1459, 1460, 18 L.Ed.2d 527, stated: “This Court has not held that a State is required by the Federal Constitution ‘to provide appellate courts or a right to appellate review.’ ” See Griffin v. People of State of Illinois, 351 U.S. 12, 76 S.Ct. 585, 100 L.Ed. 891.

I would reverse, but on the ground that the man-in-the-house regulation of the State Department of Welfare did not comply with the Social Security Act, as set out in King v. Smith, supra.

NOTE: Judge JAMES DUKE CAMl ERON having requested that he be relieved from consideration of this matter, Judge ROBERT E. McGHEE of the Superior Court was called to sit in his stead and participate in the determination of this cause.