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No. 13082
I N THE SUPREME COURT O THE STATE OF M N A A F OTN

197 5

THE STATE OF MONTANA, EX REL, THE DEPARTMENT O SOCIAL AND REHABILITATION F SERVICES, Petitioner,

ROSE COLE and SHARON VJNGOM, I n d i v i d u a l l y and on b e h a l f o f a l l o t h e r s s i m i l a r l y s i t u a t e d , Respondents.

ORIGINAL PROCEEDING : Counsel o f Record: For P e t i t i o n e r : Thomas H. Mahan a r g u e d , Helena, Montana F o r Respondents : James Dorr Johnson a r g u e d , B u t t e , Montana Stephen L. Bunch a r g u e d , Helena, Montana

Submitted : Decided: Filed :

J u l y 1 6 , 1975

$lJ!,gX 1975

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M r . Chief J u s t i c e James T. Harrison d e l i v e r e d t h e Opinion of t h e Court.

This i s an o r i g i n a l proceeding i n which p e t i t i o n e r sought an a p p r o p r i a t e w r i t t o review t h e proceedings i n a c a s e pending i n t h e d i s t r i c t c o u r t of S i l v e r Bow County e n t i t l e d : Rose Cole, e t a l . , P l a i n t i f f s v. Theodore C a r k u l i s , D i r e c t o r , e t a l . , Defendants, wherein a temporary r e s t r a i n i n g o r d e r was i s s u e d on t h e 30th day of June, 1975, which o r d e r r e s t r a i n e d p e t i t i o n e r from implementing and o p e r a t i n g c e r t a i n emergency r u l e s u n t i l f u r t h e r o r d e r of t h e c o u r t , and a l s o provided t h a t n o t i c e be given by t h e p e t i t i o n e r t o a l l Medicaid p r o v i d e r s and r e c i p i e n t s t h a t t h e Medicaid program would o p e r a t e a t p r e - J u l y

1, 1975 l e v e l s u n t i l t h e f u r t h e r o r d e r of t h e c o u r t .
P e t i t i o n e r f u r t h e r a l l e g e d t h a t t h e 1975 L e g i s l a t u r e c u t t h e amount of money r e q u e s t e d by p e t i t i o n e r by t h e approximate sum of $1,600,000 f o r t h e biennium, and t o meet such budgetary c u t i t would be n e c e s s s a r y t o c u r t a i l some o f t h e programs which would be of l e a s t harm t o t h e w e l f a r e r e c i p i e n t s . F u r t h e r , t h a t d e l a y i n t h e f i n a l r e s o l u t i o n of t h i s m a t t e r would cause a s t a t e - w i d e emergency o f major p r o p o r t i o n s , . a n d t h a t s i n c e
i t was a l s o a l l e g e d t h a t no q u e s t i o n s of f a c t need b e determined,

an e x p e d i t i o u s c o n s i d e r a t i o n of t h e m a t t e r would b e i n t h e i n t e r e s t s of j u s t i c e and a l l e v i a t e continued hardship which may b e s u f f e r e d by a l l r e c i p i e n t s of w e l f a r e i n t h i s s t a t e . Counsel was heard ex p a r t e , t h e m a t t e r taken under advisement, and t h e r e a f t e r an o r d e r was i s s u e d c a l l i n g f o r an a d v e r s a r y h e a r i n g and v a c a t i n g t h e temporary r e s t r a i n i n g o r d e r of t h e d i s t r i c t c o u r t u n t i l t h e f u r t h e r o r d e r of t h i s Court. The a d v e r s a r y h e a r i n g was h e l d , b r i e f s f i l e d , counsel heard i n o r a l argument, and t h e m a t t e r submitted f o r d e c i s i o n .
I t i s n o t d i s p u t e d t h a t t h e 1975 L e g i s l a t u r e reduced

t h e amount of money r e q u e s t e d by p e t i t i o n e r i n t h e approximate

amount of $1,600,000 f o r t h e biennium and t h a t i t would be n e c e s s a r y t o make adjustments so t h a t t h e Department could l i v e w i t h i n i t s budget. Following c o n s u l t a t i o n s w i t h i t s a d v i s o r y c o u n c i l , t h e Department of Health, Education and Welfare of t h e F e d e r a l Government, w i t h persons i n t h e medical f i e l d , and t h e experience of t h e Department and i t s s t a f f , i t was determined t h a t i t would be necessary t o c u t approximately $300,000 per month from i t s programs t o s t a y w i t h i n t h e budget. To meet t h i s s i t u a t i o n t h e Department determined t o c u r t a i l t h e medically needy program i n Montana, a s s e t f o r t h i n s e c t i o n 71-1516, R.C.M.
R.C.M.

1947, under a u t h o r i t y of s e c t i o n 71-1517,

1947.

A emergency r u l e was adopted and s t e p s taken n The Department f e l t t h a t t h e emer-

t o establish a regular rule.

gency r u l e was n e c e s s a r y because i t could n o t exceed 120 days i n d u r a t i o n and i t would g i v e t h e Department an o p p o r t u n i t y t o complete t h e a c t i o n n e c e s s a r y t o e s t a b l i s h a r e g u l a r r u l e , without l o s s of funds. The h e a r i n g on t h e r e g u l a r r u l e i s s e t f o r

August 15, 1975, a t Helena, Montana, a t which time a l l persons and groups a f f e c t e d can be heard and such evidence w i l l be cons i d e r e d by t h e Department b e f o r e f i n a l adoption of a r e g u l a r r u l e . Respondents contend t h e "emergency" claimed by t h e Department i s n o t a l e g i t i m a t e b a s i s f o r an emergency r u l e and t h i s was t h e reason f o r t h e commencement of t h e a c t i o n i n t h e d i s t r i c t court. Amicus Curiae, A d m i n i s t r a t i v e Code Committee of t h e Montana L e g i s l a t u r e , t a k e s no p o s i t i o n on t h e r e s p e c t i v e m e r i t s of t h e p a r t i e s ' p o s i t i o n s h e r e i n , b u t r e q u e s t s t h i s Court t o e s t a b l i s h precedents a s g u i d e l i n e s under t h e A d m i n i s t r a t i v e Procedure Act. However, i t does n o t appear t h a t t h i s o r i g i n a l

proceeding i s a proper forum and being aware of t h e n e c e s s i t y f o r immediate a c t i o n we d e c l i n e t o do so.

The s t a t u t e d e a l i n g with an emergency r u l e i s s e c t i o n 82-4204, R.C.M. 1947, which provides i n s u b s e c t i o n (2) :

"(2) I f an agency f i n d s t h a t an imminent p e r i l t o the public health, s a f e t y o r welfare requires adoption of a r u l e upon fewer than twenty (20) days' n o t i c e and s t a t e s i n w r i t i n g i t s reasons f o r t h a t f i n d i n g , i t may proceed, without p r i o r n o t i c e o r h e a r i n g o r upon any a b b r e v i a t e d n o t i c e and h e a r i n g t h a t i t f i n d s p r a c t i c a b l e , t o adopt an emergency r u l e . The r u l e may be e f f e c t i v e f o r a p e r i o d n o t longer than one hundred and twenty (120) days, b u t t h e adoption of an i d e n t i c a l r u l e under s u b s e c t i o n s (1) ( a ) and (1) (b) of t h i s s e c t i o n i s n o t precluded. The s u f f i c i e n c y of t h e reasons f o r a f i n d i n g of imminent p e r i l t o the public health, s a f e t y o r welfare s h a l l be s u b j e c t t o j u d i c i a l review. 11 W have been favored w i t h voluminous b r i e f s and e x t e n s i v e e arguments a s t o what i s "an imminent p e r i l t o t h e p u b l i c h e a l t h , safety o r welfare.
II

Upon review of t h e admitted f a c t s , t h e s t a t u t o r y law, c o n s i d e r a t i o n of t h e b r i e f s , and arguments of c o u n s e l , i t i s our holding t h a t t h e circumstances e x i s t i n g h e r e e n t i t l e d t h e Department t o e n a c t an emergency r u l e .
I t i s t h e r e f o r e ORDERED t h a t t h e temporary r e s t r a i n i n g

o r d e r of t h e d i s t r i c t c o u r t i s s u e d on June 30, 1975, which by t h i s C o u r t ' s o r d e r of J u l y 7 , 1975, was vacated u n t i l t h e f u r t h e r o r d e r of t h i s Court, i s now permanently vacated and s e t aside. action. Further,

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Justices.

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Montana Law