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STATE OF CAL. v. BLOCK

No. 78-3645.

663 F.2d 855 (1981)

STATE OF CALIFORNIA, et al., Plaintiffs-Appellees, v. John R. BLOCK, Secretary of the United States Department of Agriculture, et al., Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided November 18, 1981.

Attorney(s) appearing for the Case

Al J. Daniel, Washington, D. C., argued, for defendants-appellants; Leonard Schaitman, Washington, D. C., on brief.

John J. Klee, Jr., San Francisco, Cal., for plaintiffs-appellees.

Before KENNEDY and NORRIS, Circuit Judges, and McNICHOLS, District Judge.

KENNEDY, Circuit Judge:

This case involves an attempt by the Secretary of Agriculture to collect money from the State of California for alleged misadministration of the food stamps program. Section 10(g) of the Food Stamp Act of 1964 provided that if a state had been guilty of gross negligence or fraud in the administration of the program, the Secretary could demand return of monies to the federal government. The major issue for our consideration is whether a regulation...

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