California Department of Social Services - State Hearings
Division
Notes from the Training Bureau - June 20, 1996
| Item 96-06-03B AFDC -- Automobile Exemption -- Gamboa v. Rubin (1996) |
In Gamboa v. Rubin (1996) 80 F.3d 1338, the U.S. Court of Appeals, held that although the $1500 automobile equity limit in the AFDC program was valid when first adopted fifteen years ago, it is no longer valid because the Secretary of Health and Human Services (HHS) failed to adjust the $1500 figure for inflation since it was adopted. The court added:
"Thus, there is no question that a favorable ruling by this court will redress plaintiffs’ injury--their denial of AFDC benefits.... If plaintiffs prevail, the regulation will be struck down until the Secretary promulgates a new regulation. During this interim period, the rule in existence before the $1500 limit was set will govern--namely that AFDC recipients may own one car regardless of its value."
The Secretary of HHS has not promulgated a new regulation. Gamboa is being appealed. The California Department of Social Services (CDSS) is not following Gamboa at this time. Current regulations remain in effect until further notice.