Christensen v. Lightbourne
Christensen v. Lightbourne
Opinion
**87 *766 We granted review to decide whether a household member's income that is used to pay child support for a child living in another household counts as income "reasonably anticipated" to be "received" by the paying household within the meaning of Welfare and Institutions Code section 11265.2 for purposes of determining eligibility for state welfare benefits. The California Department of Social Services determined that it does, and we conclude that its determination was reasonable and therefore valid. We must also decide whether the policy of the California Department of Social Services treating court-ordered child support as "income" violates Welfare and Institutions Code section 11005.5 by counting the same funds as income twice: once to the paying household and once to the receiving household. We conclude that it does not. Accordingly, we affirm the judgment of the Court of Appeal.
I.
We begin with an overview of the relevant federal and state statutes governing *284 the provision of cash assistance to needy households and then describe the dispute in this case.
A.
For many years, the federal Assistance to Family with Dependent Children (AFDC) program provided cash aid to needy families. (
In 1996, Congress enacted the Personal Responsibility and Work Opportunity Reconciliation Act, which replaced the AFDC program with a program called Temporary Aid to Needy Families (TANF). ( Pub.L. No. 104-193,
To implement TANF, our Legislature undertook a "comprehensive review and overhaul of [the state's] welfare system" and enacted the California Work Opportunity and Responsibility to Kids (CalWORKs) program. (
Sneed
,
supra
, 120 Cal.App.4th at p. 1231,
To qualify for CalWORKs, a household's "reasonably anticipated income, less exempt
*285
income," must fall below the "maximum aid payment" for a household (sometimes called an "assistance unit") of its size. (§ 11450.12, subd. (b); Cal. Dept. of Social Services, Manual of Policy and Procedures § 44-207 (MPP).) The CalWORKs statute specifies that income is " 'reasonably anticipated' if the county is reasonably certain of the amount of income and that the income will be received" during the prospective, semiannual reporting period. ( § 11265.2, subd. (b).) Eligible applicants receive a cash grant equal to the difference between the family's income and the maximum aid payment. (§ 11450.)
*768
The California Department of Social Services (Department) is vested with "full power to supervise every phase of the administration of public social services." (§ 10600.) The Department promulgates rules and standards for the implementation of the statutes it enforces. These rules and standards are adopted in compliance with the procedures, including notice and comment requirements, set forth in the California Administrative Procedure Act ( Gov. Code § 11340 et seq. ), and they are published in the MPP. (§§ 10554, 11209; see
Smith v. Los Angeles County Bd. of Supervisors
(2002)
Eligibility determinations for CalWORKs aid are made by county welfare departments in accordance with the Department's rules and regulations. (§§ 10800, 11209.) The Department's implementing regulations direct counties to consider only income that the county is "reasonably certain that the recipient will receive" during the six-month budgeting period. (MPP § 44-101(c); see also MPP § 44-102.) From this amount, counties subtract income deemed "exempt" by statute or regulation. (§§ 11450.12, subd. (b), 11451.5; see MPP § 44-111.) Under the AFDC program, a family could exempt from its gross monthly income the first $30 of income and one-third of each additional dollar of earned income. CalWORKs replaced the AFDC exemption with a new income disregard of the first $225 of earned income or disability-based unearned income, plus 50 percent of each additional dollar of gross earnings. (§ 11451.5.) The greater income disregard under CalWORKs permits individuals to earn more income than was possible under the former AFDC program without risking a reduction in aid or becoming ineligible for aid, thereby effectuating the Legislature's purpose of promoting work and achieving "the greatest possible reduction of dependency." (§ 11207.) The CalWORKs statute does not specifically exempt any income that is garnished from a recipient's **89 paycheck, nor does the statute's definition of income exclude debts that must immediately be paid.
Before the enactment of CalWORKs, a Department regulation allowed counties, "in [d]etermining [n]et [i]ncome," to "deduct[ ]" from gross income "actual payments made in support of a child or spouse not in the home, paid pursuant to a court order." (Cal. Dept. of Social Services, Manual Letter No. EAS-92-02: Standards of Assistance Income, former MPP § 44-113.9 (Mar. 1, 1992) p. 480 (Manual Letter No. EAS-92-02).) On October 14, 1997, *769 two months after CalWORKs became law, the Department published a new All County *286 Letter providing "counties with the instructions they requested for implementing the new grant structure and aid payment provisions of [Assembly Bill] 1542." (Cal. Dept. of Social Services, All County Letter No. 97-59: Implementation of Grant Structure and Aid Payment Provisions (Oct. 14, 1997) p. 1 (All County Letter No. 97-59).) In the letter, the Department concluded that the CalWORKs statute "eliminate[ed] the existing income disregards and replac[ed] them with new income disregards." ( Id. at p. 3.) Among the income disregards that CalWORKs eliminated in favor of the new exemption of the first $225 of income plus 50 percent of any remaining earned income was "court-ordered child/spousal support paid by family members to persons outside the home." ( Ibid. ) Consistent with its understanding of the changes in the law, the Department repealed the regulation that provided a deduction from income of court-ordered child support paid to a child not in the home. (Manual Letter No. EAS-92-02, supra , at p. 480.) During the rulemaking process, the Department explained that the former child and spousal support disregards "that were allowed previously under federal and state law have been replaced with disregards of $225 of disability based unearned income and/or earned income and then 50% of the remaining earned income as set forth in Welfare and Institutions Code Section 11451.5." (Cal. Dept. of Social Services, internal rulemaking file for CalWORKs Grant Structure and Aid Payment Regulations, Agency ORD No. 0498-11, Final Statement of Reasons for rulemaking under Assem. Bill 1542 (Stats. 1997, ch. 270) p. 10.) The Department has maintained this position for over 20 years.
B.
Angie Christensen (Christensen) lived with her husband, Bruce, their three children, and her three children from a prior marriage. She was ineligible for CalWORKs aid because she was receiving Supplemental Security Income benefits. (§ 11203, subd. (a).) Her three children with Bruce were ineligible for aid under the former "Maximum Family Grant Rule" statute, which provided that "the number of needy persons in the same family shall not be increased for any child born into a family that has received aid under this chapter continuously for the 10 months prior to the birth of the child." (Former § 11450.04, subd. (a), added Stats. 1994, ch. 196, § 1 and repealed Jan. 1, 2017, by Stats. 2016, ch. 25, § 18.) Bruce had three other children who did not live in the home and to whom he paid child support: one who received CalWORKs aid and lived with the child's mother, one who was an adult for whom child support was being paid for arrearages, and one who was not receiving CalWORKs aid. Bruce was employed part time and also received unemployment insurance benefits. Child support payments were garnished from Bruce's income to support his three noncustodial children.
*770 In October 2010, Christensen applied for CalWORKs aid to support herself and her family. San Mateo County concluded that her assistance unit for the purposes of calculating CalWORKs aid consisted of four people: Bruce plus Christensen's three children from her prior marriage. The county denied Christensen's application because her household's non-exempt income, including the amount deducted from Bruce's paychecks for child support for his noncustodial children, exceeded the maximum aid payment of $828 per month for a family of four. Had the garnished child support been excluded from Bruce's income, Christensen would have been eligible to receive CalWORKs aid.
Christensen requested an administrative hearing, arguing that the amounts garnished *287 **90 from her husband's wages and unemployment benefits as child support "could not be considered as 'reasonably anticipated to be received' and therefore should not be counted in either the eligibility or grant determination process." The administrative law judge agreed and instructed the county to recompute the family's eligibility for CalWORKs aid, omitting those amounts from Bruce's income.
The Director of the California Department of Social Services reversed and denied Christensen's claim. The Director reasoned that "no regulation ... exempts child support payments paid by or garnished from an [assistance unit] member's earned or unearned income." Citing to All County Letter No. 97-59, the Director concluded that "the child support payments garnished from the claimant's husband's earned income and [unemployment insurance benefits] was correctly included as nonexempt available income in determining [the assistance unit's] eligibility for CalWORKs benefits."
Christensen filed a combined petition for writ of mandate and administrative mandamus ( Code Civ. Proc. §§ 1085, 1094.5 ) as well as a complaint for declaratory relief in the superior court. The court ruled that the Department's policy of counting court-ordered child support payments as available income of CalWORKs applicants was contrary to the Department's own definition of income, which required that income be "currently available" to needy members of the family, and contravened section 11005.5 because it resulted in double-counting of aid. Accordingly, the court issued a writ of administrative mandate and declared the Department's policy invalid. The court denied the writ of mandate, and Christensen did not appeal that ruling.
The Court of Appeal reversed. It observed that "the CalWORKs statutes and regulations do not specifically prescribe how to treat child support paid by a noncustodial parent in determining the nonexempt income of the paying parent's assistance unit." (
Christensen v. Lightbourne
(2017)
The Court of Appeal also rejected Christensen's argument that the Department's policy of counting garnished child support as income resulted in double-counting of income in violation of section 11005.5. The court observed that "Christensen does not claim that any family's CalWORKs cash aid is being considered to deny another person or family CalWORKs aid." (
Christensen
,
supra
, 15 Cal.App.5th at p. 1258,
We granted review.
II.
The issue here is the validity of the Department's interpretation of the CalWORKs statutes. We review questions of statutory interpretation de novo. (
Reid v. Google, Inc.
(2010)
**91
[citation], but where the agency has special expertise and its decision is carefully considered by senior agency officials, that decision is entitled to correspondingly greater weight." (
Sharon S.
,
supra
, 31 Cal.4th at p. 436,
Although the classification of an agency's action as quasi-legislative or interpretive often guides our analysis, we have observed that "some rules defy easy categorization." (
Assn. of Cal. Ins. Cos. v. Jones
(2017)
A.
Section 11451.5 directs the Department to calculate "the income of the family" for the purposes of determining CalWORKs eligibility by calculating the sum of the applicant family's "earned income," meaning "gross income received as wages, salary, employer-provided sick leave benefits, commissions, or profits from activities such as a business enterprise or farming in which the recipient is engaged as a self-employed individual or as an employee," disability-based unearned income such as disability insurance benefits, and the family's "unearned income," which is any income that does not fall within the meaning of "earned" or "[d]isability-based unearned" income. ( § 11451.5, subds. (a), (b)(1)-(3).) CalWORKs aid is to be calculated as follows: "In determining the amount of aid paid ..., the family's income, exclusive of any amounts considered exempt as income ..., determined for the prospective semiannual period ..., and then calculated pursuant to Section 11451.5, shall be deducted from the sum specified in [a table provided in the statute], as adjusted for cost-of-living increases .... In no case shall the amount of aid paid for each month exceed the sum specified" in a table provided in the statute. (§ 11450, subd. (a)(1)(A).)
*289 The CalWORKs statute excludes from income the first $225 of income plus 50 percent of each additional dollar of gross earnings. ( § 11451.5.) The statute further provides that "[e]xcept as otherwise provided in this part, ... 'income' shall be deemed to be the same as applied under the Aid to Families with Dependent Children [AFDC] program on August 21, 1996," with several additional exemptions for income that is "received too infrequently to be reasonably anticipated," for income "from college work-study programs," and for academic or extracurricular awards or scholarships.
*773 (§ 11157, subd. (b).) Court-ordered child support is not among these statutory exemptions from income. The Department repealed its regulation providing for a deduction for "actual payments made in support of a child ... not in the home" (Manual Letter No. EAS-92-02, supra , at p. 480), and its Manual of Policies and Procedures now specifies that "[p]ayments which do not fall within the limitations specified in the foregoing subsections, represent nonexempt income to be considered in determining the recipient's grant" (MPP § 44-111.5).
Christensen argues that the funds used to pay Bruce's child support obligations cannot constitute "income" to her household because her family can never actually receive or benefit from those funds, and therefore the **92 funds are not "reasonably anticipated" to be "received" within the meaning of section 11265.2. Because the money used to pay child support is not actually available to her household, Christensen contends, that money cannot be counted as part of "the family's income" for purposes of calculating CalWORKs aid. (§ 11450, subd. (a)(1)(A).) We find this argument unpersuasive.
In
Heckler v. Turner
(1985)
We recognized a comparable principle in
Cooper v. Swoap
(1974)
Furthermore, section 11265.2, subdivision (b), which defines " 'reasonably anticipated' " income, is concerned not with whether income is actually or only theoretically available, but rather with an issue of timing, i.e., when income can be expected to be received. Specifically, the statute provides that "income shall be considered to be 'reasonably anticipated' if the county is reasonably certain of the amount of income and that the income will be received during the semiannual reporting period." ( § 11265.2, subd. (b).) This language was added to the CalWORKs statute in 2002, when the Legislature replaced counties' eligibility determinations, which were previously based on a monthly system, with a prospective budgeting system. Section 11265.2, subdivision (b) instructs the Department to count as gross income the amounts that it can expect an applicant will earn within a designated temporal period. The text of this provision, understood in light **93 of its enactment history, does not set forth a requirement that funds be actually available to the applicant household in order to count as income.
Christensen further argues that the CalWORKs scheme did not displace the Department's earlier regulation excluding child support payments from income. She reads section 11157, subdivision (b)'s directive that "[e]xcept as otherwise provided ..., 'income' shall be deemed to be the same as applied under the [AFDC] program on August 21, 1996" to preserve the Department's former policy (under AFDC) of deducting child support payments from income. In a related argument, amicus curiae Harriett Buhai Center for Family Law argues that the Legislature's decision to exempt a certain amount of earnings from income when calculating CalWORKs aid ( § 11451.5 ) was not intended to abrogate the Department's "child support allocation" policy under AFDC, which existed independently of the earned income exemption revised by CalWORKs.
Section 11451.5, subdivision (a), specifies that "for purposes of subdivision (a) of section 11450" - that is, for purposes of calculating *775 CalWORKs aid - certain income shall be treated as exempt, including the first $225 of earned income or disability-based unearned income, plus 50 percent of each additional dollar of gross earnings. As noted, subdivision (b) of the same section defines earned income "[f]or the purposes of this section" (i.e., for the purposes of section 11451.5 ) as "gross income received as wages, salary, employer-provided sick leave benefits, commissions, or profits from activities such as a business enterprise *291 or farming in which the recipient is engaged as a self-employed individual or as an employee." This definition expressly applies to the determination of "the income of the family" under section 11450 for the purposes of calculating CalWORKs aid. Whatever aspects of the AFDC definition of income were preserved by section 11157, subdivision (b), the Legislature made clear in section 11451.5 that the definition of income and exemptions articulated in that section comprised a new scheme for calculating CalWORKs aid. (See § 11157, subd. (b) [retaining AFDC's definition of income "[ e ] xcept as otherwise provided " (italics added) ].)
Furthermore, the Department's former policy treated the sums used to pay child support as part of the gross income of the noncustodial parent, subject to an income deduction. (See MPP, former §§ 44-113.9, 44-113.24, 44-113.241; see also Cal. Dept. of Social Services, MPP, former § 44-113.242, eff. July 1, 1968 [providing that a "[d]eduction is made from income for" "support payments actually made to or for his dependents living elsewhere"].) Amicus's labeling of child support under the former policy as an "allocation" rather than an "exemption" appears inaccurate and in any event has no bearing on the meaning of the statutory text, which indicates that the definition of income and exemptions in section 11451.5 comprehensively replaced the former system of exemptions and deductions.
In sum, nothing in the text of the CalWORKs statute exempts or excludes funds used to pay child support from the definition of income. And the statute does not indicate that the Legislature intended to preserve the Department's prior policy of deducting such payments from income.
B.
Christensen's principal argument is that including child support paid by a noncustodial parent as part of the paying household's income "thwarts the primary purpose of both CalWORKs and child support." California's child support guideline "takes into account each parent's actual income and level of responsibility for the children," with the goal of placing "the interests of children as the state's top priority." ( Fam. Code, § 4053, subds. (c), (e).) The aim of the CalWORKs program is similarly to allow families "to provide sufficient support and protection of [their] children." ( § 11205.) According to
*776
Christensen, counting money paid under the child support scheme as income to the paying family under CalWORKs, thereby rendering children in the paying family ineligible for CalWORKs aid, risks undermining the programs' shared goals of supporting and prioritizing all children.
**94
Christensen further argues that counting child support as income could create a perverse incentive for families like Christensen's to live separately in order to obtain the CalWORKs aid they need to support their children. (See Amicus Br. of Alliance for Children's Rights at p. 12 ["Requiring parents to choose between feeding their children and living together as a family simply cannot be part of a system designed to protect an institution that the Legislature declared is 'of fundamental importance to society in nurturing its members, passing on values, averting potential social problems, and providing the secure structure in which citizens live out their lives ....' " (citing § 11205 ) ];
McCormick v. County of Alameda
(2011)
Christensen's arguments are not without force, and the exclusion she urges may have merit as a matter of policy. But the Legislature charged the Department with "full power to supervise every phase of the administration of public social services" (§ 10600), and this supervisory authority includes fact-specific determinations of eligibility for aid and application of the agency's judgment about how best to effectuate the purposes of the CalWORKs statute. (See
Given the lack of any indication in the statute compelling or prohibiting the deduction of child support payments from income, we agree that the Department's decision to include child support payments as income is properly characterized as quasi-legislative. We must therefore decide whether the Department acted "within the scope of the authority conferred" and whether its action was " 'reasonably necessary to effectuate the purpose of the statute.' " (
Yamaha
,
supra
, 19 Cal.4th at p. 11,
**95 We think the Department has the better argument. It is a fair inference that, in enacting CalWORKs and its expanded earned-income disregard, the Legislature sought a more streamlined approach to grant calculation as a means of improving the program's administrability. Moreover, although the elimination of the child support *293 disregard might not directly advance the Legislative purpose of encouraging families to work more, it may operate to do so indirectly. For example, families paying court-ordered child support whose earned income is insufficient to make ends meet may ultimately decide to seek more earned income. Thus, the replacement of the child-support disregard with an earned-income disregard may function as an incentive for families to increase their earned income.
We therefore conclude the Department's interpretation was "reasonably necessary to implement the purpose of the statute." (
Yamaha
,
supra
, 19 Cal.4th at p. 11,
Christensen does not contend that the CalWORKs statute must be construed to provide exclusions from income for garnishments to pay other debts. Instead, she argues that court-ordered child support obligations are distinguishable from other debts because CalWORKs and child support obligations "operate together to implement the legislative intent that all children ... receive sufficient support"; because child support is a debt that has priority over debts owed to other creditors and cannot be modified without the consent of the local child support agency and the court ( Fam. Code, §§ 4011, 4065 ); because child support obligations cannot be discharged in bankruptcy (
We agree that the law in many ways treats child support obligations differently from other debts. But we do not agree that the conclusion to be drawn from this special treatment is that the Department's policy frustrates the statute's purpose. As discussed, no exclusion for child support appears in the statute's text. And although the absence of a statutory exclusion may render some households ineligible for CalWORKs or reduce the amount of aid, the Legislature in enacting CalWORKs declared that "[e]ach family unit has the right and responsibility to provide for its own economic security by full participation in the work force to the extent possible." ( § 11205.) The statute makes clear that the Legislature sought not only to provide *294 aid to needy families but also to encourage greater work effort by those families.
In sum, we hold that the Department's determination that funds garnished to pay child support for the benefit of a child living in another household are not exempt from the paying household's income for purposes of determining its eligibility for or amount of CalWORKs aid was a reasonable exercise of **96 its delegated lawmaking authority and was therefore valid. *779 III.
We now address Christensen's argument that the Department's policy of counting garnished child support as income to the paying household results in counting the same income twice in violation of section 11005.5.
Section 11005.5 says: "All money paid to a recipient or recipient group as aid is intended to help the recipient meet his individual needs or, in the case of a recipient group, the needs of the recipient group, and is not for the benefit of any other person. Aid granted under [Part 3 of Division 9 of the Welfare and Institutions Code, which now includes the CalWORKs program] ... to a recipient or recipient group and the income or resources of such recipient or recipient group shall not be considered in determining eligibility for or the amount of aid of any other recipient or recipient group." The Legislature enacted this statute in 1973 "to insure that aid paid (1) is for the individual needs of its recipient, (2) is not for the benefit of any other person, and (3) shall not be viewed or treated as income available to any other person. To treat one person's aid as a reason to deny eligibility or to reduce assistance to which another is entitled amounts to defiance of the legislative proscription." (
Rogers v. Detrich
(1976)
Christensen points to the second sentence of section 11005.5 and argues that the child support payment garnished from Bruce's "income or resources" is used to determine her household's CalWORKs aid eligibility as well as the receiving family's aid eligibility or amount. "Under the Department's policy," Christensen contends, "the garnished child support 'income' received by the custodial family is 'considered in determining eligibility or the amount of aid' to the paying family, in violation of § 11005.5." According to Christensen, the policy "results in counting the same income twice" because the same funds are "counted as available to the paying family when the paying family applies for or receives CalWORKs" and "counted as available to the receiving family when that family also receives CalWORKs."
But Christensen's "double counting" argument misapprehends the character of the child support payment. As the Attorney General explains, "there is a distinction between the child support received by Bruce's noncustodial child, and the funds used to pay that support obligation." The Attorney General illustrates this distinction by observing that if one CalWORKs recipient buys a car from another CalWORKs recipient and agrees to pay monthly installments, it is not double counting to treat the funds used by the
*780
buyer to make car payments as the buyer's income while treating the payments received by the seller as the seller's income. Similarly here, the funds used to pay child support are counted as part of Bruce's income; as such, the funds are considered
*295
in determining Christensen's aid eligibility. The child support payment is an
expenditure
by Bruce for the benefit of the receiving family; it is considered in determining the receiving family's aid eligibility. (§ 11454.5, subd. (a)(3).) It is Bruce's
expenditure
, not his "income or resources" ( § 11005.5 ), that is considered in determining the receiving family's eligibility for aid. This does not run afoul of section 11005.5. (Cf.
Cervantez v. Sullivan
(9th Cir. 1992)
IV.
We affirm the judgment of the Court of Appeal.
We Concur:
CANTIL-SAKAUYE, C.J.
CHIN, J.
CORRIGAN, J.
CUÉLLAR, J.
KRUGER, J.
GROBAN, J.
Reference
- Full Case Name
- Angie CHRISTENSEN, Plaintiff and Respondent, v. Will LIGHTBOURNE, as Director, Etc., Et Al., Defendants and Appellants.
- Cited By
- 22 cases
- Status
- Published