98-28840. Welfare-to-Work Data Collection

[Federal Register Volume 63, Number 209 (Thursday, October 29, 1998)]
[Rules and Regulations]
[Pages 57919-57929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28840]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 276

RIN 0970-AB92

Welfare-to-Work Data Collection

AGENCY: Administration for Children and Families, HHS.

ACTION: Interim final rule; request for comments.

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SUMMARY: The Administration for Children and Families is issuing an
interim final rule that specifies the reporting requirements applicable
to States and Indian tribes with respect to participants receiving
services under Welfare-to-Work (WtW) grants. The overall purpose of the
WtW program is to assist States, Tribes, and other grantees to provide
transitional employment assistance that moves hard-to-employ welfare
recipients, living in high poverty areas, into unsubsidized employment
and economic self-sufficiency. WtW grants are targeted to assist those
TANF (Temporary Assistance for Needy Families) recipients, and certain
noncustodial parents, who have experienced or have characteristics
associated with long-term welfare dependency. This regulation
implements portions of section 411 of the Social Security Act, 42
U.S.C. 611.

DATES: The interim final rule is effective October 29, 1998. However,
affected parties do not have to comply with this information collection
requirement until we receive approval from the Office of Management and
Budget and publish the control numbers assigned to it under the
Paperwork Reduction Act of 1995.
Comment period: You must submit comments by December 28, 1998. We
will not consider comments received after this date.

ADDRESSES: You may mail or hand-deliver comments to the Administration
for Children and Families, Office of Planning, Research and Evaluation,
7th Floor West, 370 L'Enfant Promenade, SW, Washington, DC 20447.
Attention: Patrick Brannen.
Comments that are less than 10 pages in length may be transmitted
via facsimile at (202) 205-3598, provided that submission of written
text follows.
You may also transmit written comments electronically via the
Internet. To transmit comments electronically, or download an
electronic version of the interim final rule, you should access the ACF
Welfare Reform Home Page at http://www.acf.dhhs.gov/news/welfare/ and
follow any instructions provided.
We will make all comments available for public inspection at the
Office of Planning, Research and Evaluation, 7th Floor West, 901 D
Street, SW, Washington, DC 20447, from Monday through Friday between
the hours of 9 a.m. and 4 p.m.EST. (This is the street address, as
opposed to the mailing address above.)
We will not acknowledge the individual comments we receive.
However, we will review and consider all that are germane and received
during the comment period.

FOR FURTHER INFORMATION, CONTACT: Patrick Brannen, Division of Data
Collection and Analysis, Office of Planning, Research and Evaluation,
ACF, at (202) 401-5096.
Deaf and hearing-impaired individuals may call the Federal Dual
Party Relay Service at 1-800-877-8339 between 8 a.m. and 7 p.m. Eastern
time.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. The Interim Final Rule and the Paperwork Reduction Act
II. Legislative and Regulatory Background
A. The Personal Responsibility and Work Opportunity
Reconciliation Act
B. Welfare-to-Work Grants
III. Welfare-to-Work Data Collection Requirements
A. Joint DHHS/DOL Information Collection Strategy
B. Section by Section Discussion of the Interim Final Rule
IV. Regulatory Impact Analyses
A. Executive Order 12866
B. Regulatory Flexibility Analysis
C. Paperwork Reduction Act
D. Unfunded Mandates Reform Act of 1995
E. Congressional Review
F. Effective Date and Absence of Notice and Comment

I. The Interim Final Rule and the Paperwork Reduction Act

The Balanced Budget Act of 1997, Pub. L. 105-33, amended title IV-A
of the Social Security Act (the Act) to authorize Welfare-to-Work (WtW)
grants to States and Tribes. The Department of Labor (DOL) and the
Department of Health and Human Services (DHHS) share responsibility for
the implementation of this program. In general, DOL has overall
responsibility for program administration, and DHHS has responsibility
for participant data collection and evaluation of the program.
The Department of Labor issued an interim final rule to implement
the WtW grants program on November 18, 1997 (62 FR 62124). This DHHS
interim final rule implements section 411 of the Act and specifies the
WtW participant data collection and reporting requirements that must be
submitted by those States and Indian tribes administering WtW grants.
We have determined that publication of an interim final rule is
necessary as WtW grants are authorized to be awarded only in FY 1998
and FY 1999. Information collection is required by statute to begin as
soon as States and Tribes begin implementing the program. In addition,
it is critical that information be available in order to conduct the
evaluation and submit the reports to Congress required by statute.
Section 413(j) of the Act requires DHHS to submit an interim report to
Congress in January 1999 and a final report in January 2001. These
reports must contain an evaluation of how the WtW grant funds have been
used, including specific outcome information on participants.
The WtW participant and expenditure data elements in this interim
final rule are designed to provide critical information for the WtW
evaluation and the reports to Congress. These data elements will also
help grantees manage and evaluate their programs. Although DHHS is
funding a national study of the WtW program, little information from
this study will be available for several years. States and Tribes
represent the primary source of information on individual participants
that will enable us to carry out our statutory responsibilities.
For these reasons, we believe an interim final rule is justified.
However, we are sensitive to the issue of reporting

[[Page 57920]]

burden on States and Tribes. We have limited the data elements to those
specified in section 411 of the Act, with a few necessary exceptions.
Although the information to be reported is specified in the statute, it
is not specified in the form of individualized data elements. Thus, a
regulation is necessary to convert the required data into a format
suitable for reporting. We will, however, consider all comments
received in response to this rule in determining what changes are
appropriate before issuing a final rule.
This interim final rule contains information collection activities
that are subject to review and approval by the Office of Management and
Budget (OMB) under the Paperwork Reduction Act of 1995. Under this Act,
no persons are required to respond to a collection of information
unless it displays a valid OMB control number.
As required by the Paperwork Reduction Act, we have submitted these
interim final data collection requirements to OMB for review and
approval and are concurrently using this rule as a vehicle for seeking
comments from the public on these information collection activities.

II. Legislative and Regulatory Background

A. The Personal Responsibility and Work Opportunity Reconciliation Act

The Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (PRWORA), or the welfare reform law (Pub. L. 104-193),
established the Temporary Assistance for Needy Families (TANF) program
in title IV-A of the Act. TANF is a block grant program designed to
make dramatic reforms in the nation's welfare system.
The TANF provisions substantially changed the nation's welfare
system from one in which cash assistance was provided on an entitlement
basis to a system in which the primary focus is on moving welfare
recipients to work and promoting family responsibility, accountability,
and self-sufficiency. The law limits federal assistance to a 60-month
period of time for most adult recipients of State TANF programs. Such
individuals are expected to become self-sufficient within that
timeframe. (The 60-month time limit is not applicable to recipients
under the Tribal TANF program.)
In support of this objective, the statute established an overall
work participation rate for all families and a work participation rate
for two-parent families that must be met by each State, beginning in
fiscal year 1997 and in each fiscal year thereafter. States that do not
meet the participation requirements face significant financial
penalties. The Secretary is authorized to establish the work
participation rates for Indian tribes. States may provide to
recipients, with TANF, WtW, or other funding, job-related education and
skills training as well as other services to ensure lasting employment
and the achievement of self-sufficiency.
TANF replaced the national welfare program known as Aid to Families
with Dependent Children (AFDC) which provided cash assistance to needy
families on an entitlement basis. It also replaced the related programs
known as the Job Opportunities and Basic Skills Training (JOBS) program
and the Emergency Assistance (EA) program.
The new TANF program went into effect on July 1, 1997, except in
States that elected to submit a complete plan and implement the program
at an earlier date. Indian tribes were also authorized to run their own
TANF programs and a number have elected to do so. We published a Notice
of Proposed Rulemaking to implement the work, penalties, and data
collection provisions of the TANF program in the Federal Register on
November 20, 1997 (62 FR 62124). On July 22, 1998, we published an NPRM
on the Tribal Work and TANF Programs (63 FR 39366).

B. Welfare-to-Work Grants

Following the enactment of PRWORA, the Administration and Congress
were concerned that those welfare recipients who have the least skills,
education, and employment experience, and who live within high poverty
areas, might need additional assistance to obtain lasting jobs and
become self-sufficient.
On August 5, 1997, the President signed the Balanced Budget Act of
1997. This legislation amended title IV-A of the Act to authorize the
Secretary of Labor to make Welfare-to-Work (WtW) grants to States,
Indian tribes, Private Industry Councils (PICs), local governments, and
other private entities to help move hard-to-employ TANF welfare
recipients and certain noncustodial parents into unsubsidized jobs
providing good career potential for achieving economic self-
sufficiency.
Among other responsibilities, DOL is authorized to--
make formula grants to States and Indian tribes;
make competitive grants to a wide range of local entities,
e.g., local governments, Private Industry Councils (PICs), community
development corporations, community action agencies, and other public
and private entities; and
award performance bonuses to those States which most
effectively place hard to employ individuals in lasting employment at
increased earnings.
These activities are described more fully below.
Formula Grants to States
Section 403(a)(5)(A) of the Act authorizes DOL to award 75 percent
of the funds available in each of fiscal years 1998 and 1999 as formula
grants to States. States are required to pass through 85 percent of the
formula grant funds to PICs. PICs (known as workforce development
boards in some areas) oversee and guide job training programs in
geographical jurisdictions called service delivery areas (i.e.,
generally one or more units of local government with a population of
200,000 or more). A State is allowed to retain 15 percent of the money
for WtW projects of its choice. Governors are responsible for
administering formula grant funds and for assuring that they are
coordinated with funds spent under the TANF block grant.
Formula Grants to Indian tribes
Sections 403(a)(5)(F) and 412(a)(3) of the Act authorize DOL to
award $15 million as grants to Indian tribes in each of fiscal years
1998 and 1999.
Competitive grants
Section 403(a)(5)(B) of the Act provides that DOL will distribute
approximately 25 percent of available WtW funds through a competitive
grant process. These funds provide targeted assistance needed to move
hard-to-employ TANF recipients and certain noncustodial parents into
lasting unsubsidized jobs. These grants also will help expand the base
of knowledge about programs which are successful in achieving program
goals.
Eligible competitive grant applicants include PICs; local
governments; and a range of private entities including community
development corporations, community action agencies, community-based
and faith-based organizations, disability community organizations, and
public and private colleges and universities.
Features Which Apply to Both Formula and Competitive Grants
Use of funds: Funds may be used to help move eligible individuals
into jobs by--job creation through public or private sector wage
subsidies; on-the-job training; contracts with public or private
providers of job readiness, job placement, and post-employment
services; job vouchers for similar

[[Page 57921]]

services; community service or work experience; or job retention and
supportive services (if such services are not otherwise available).
Participant eligibility: At least 70 percent of the grant funds
must be spent on TANF recipients or non-custodial parents of minor
children receiving TANF assistance who: face two of three specified
labor market deficiencies and who are long-term welfare recipients or
who face termination from TANF within 12 months. Labor market
deficiencies include a lack of a high school diploma or GED certificate
and low reading or math skills, requiring substance abuse treatment for
employment, and a poor work history.
Up to 30 percent of the grant funds may be spent on individuals who
are ``recent'' recipients of TANF assistance or noncustodial parents
who have characteristics associated with long-term dependence such as
school dropout, teen pregnancy, or poor work history.
Performance Bonuses
Section 403(a)(5)(E) of the Act specifies that DOL will award $100
million in performance bonuses in FY 2000 to those States which most
effectively place hard-to-employ individuals in lasting employment at
increased earnings.
Importance of Coordination
Coordination and cooperation among State/county TANF agencies,
Indian tribes, and the State and local WTW agencies will be a major
factor in the success of this program and of the national welfare
reform initiative. Hard-to-employ welfare recipients constitute a
significant portion of the TANF population, and it is this population
the WtW grants aim to serve.
State workforce development systems will help implement WtW and
assist welfare recipients to secure lasting employment. Key
stakeholders in these systems include the PICs, local governmental
entities, private sector employers, labor organizations, business and
trade associations, education agencies, housing agencies, community
development corporations, transportation agencies, community-based and
faith-based organizations, disability community organizations,
community action agencies, and colleges and universities. Cooperation
among these diverse entities and actors will be critical for both
program and data collection purposes.

III. Welfare-to-Work Data Collection Requirements

A. Joint DOL/DHHS Information Collection Strategy

Because the TANF and the WtW programs are closely related in terms
of statutory provisions, program goals, administrative
responsibilities, and the population being served, DOL and DHHS
established a working group to develop a coordinated implementation
strategy. The DOL interim final rule, published November 18, 1997, was
also coordinated with the Departments of Housing and Urban Development
and Transportation.
As a part of this coordinated effort, DOL and DHHS have developed a
joint WtW information collection strategy. The purpose of the strategy
is to assure an integrated approach to WtW data collection, develop a
common data format to facilitate data transmission and use, minimize
grantee reporting burden, and make the most effective use of Federal
resources.
Under this strategy--
DHHS will issue participant data reporting requirements,
through regulations, applicable to State and Tribal WtW formula grant
programs. The reporting requirements will apply to all WtW participants
in these formula grant programs and will be reported to DHHS by the
State and the Tribe in a format provided by DHHS. The data required to
be reported includes the disaggregated ``TANF'' data in sections
411(a)(1)(A)(i) through (xvii), the disaggregated ``WtW'' data in
section 411(a)(1)(A)(xviii), and the aggregated ``WtW'' data in
sections 411(a)(2) through (4) and (6). (For a discussion of the
specific data elements, see ``What data must States and Tribes file on
individual participants? (Sec. 276.3)'' below.)
DOL will specify participant reporting requirements
applicable to competitive grant programs. Like the requirements for
States and Tribes, the reporting requirements will apply to all
individuals enrolled in the WtW competitive grant program. The data
will be reported to DOL by the grantee unless the State agrees to
compile and transmit the data to DHHS. DHHS and DOL will jointly
develop a common data format and specifications to facilitate this
complementary reporting.
DOL will specify financial reporting requirements for both
formula and competitive grantees.
DOL will also specify additional targeting, eligibility,
and other data elements for both formula and competitive grantees under
its general administrative authority. These additional data elements
will provide data to verify that the eligibility and targeting
requirements in section 403(a)(5)(C)(ii) have been met.
The data elements in this interim final rule will be
consolidated with the data elements specified by DOL into a common
reporting form. DOL and DHHS will publish a Paperwork Reduction Act
Notice on the common reporting form in the Federal Register in the near
future.
DHHS and DOL will issue guidance and facilitate technical
assistance on the WtW data collection strategy, describing the
interface between the population served and the data reporting systems,
emphasizing the need to share information between service delivery
components and levels, and identifying options for State and Tribes in
reporting these data.

B. Section by Section Discussion of the Interim Final Rule

What Does This Part Cover? (Sec. 276.1)
This section specifies the scope and content of part 276, including
what information we will collect from certain States and Tribes on
individuals and families receiving services under WtW grants and the
electronic filing and sampling requirements. Although the WtW data
reporting provisions are a part of the overall data collection and
reporting requirements specified in section 411 of the Act, we have
published them on a temporary basis in a separate part of the
regulations (45 CFR part 276) in order to avoid confusion with the
provisions of the TANF Notice of Proposed Rulemaking that was published
on November 20, 1997. (45 CFR part 275.) The WtW data collection and
reporting requirements set forth in part 276 will be incorporated into
45 CFR part 275 (Data Collection and Reporting Requirements) when the
TANF regulations are finalized and into 45 CFR part 286 (Tribal Data
Collection and Reporting Requirements) when regulations are finalized
for Tribal TANF programs. We have included in this interim regulation
only those provisions which are necessary to implement the WtW
reporting requirements.
What Definitions Apply to This Part? (Sec. 276.2)
Three of the five definitions in this section are commonly used
acronyms such as ACF, TANF, and WtW. The term ``State'' and ``the Act''
are also defined.
For purposes of this regulation, WtW means only those services or
activities provided under a State formula grant

[[Page 57922]]

pursuant to section 403(a)(5)(A) of the Act or under an Indian tribal
formula grant pursuant to section 412(a)(3) of the Act. See discussion
relative to Sec. 276.3.
What Data Must States and Indian Tribes File on Individuals
Participating in the WtW Program? (Sec. 276.3)
This section specifies what WtW participant and expenditure data
States and Indian tribes must collect and report to DHHS.
Section 276.3(a) requires States and Indian tribes receiving a WtW
formula grant to collect monthly, and submit quarterly, information on
all individuals and families participating in the States' or Tribes'
WtW formula grant program. ``All individuals and families participating
in the WtW program'' means those persons who--
1--Currently receive WtW and TANF assistance;
2--Currently receive WtW and formerly received TANF assistance;
3--Currently receive WtW and would be eligible for TANF assistance
except for the time limit on receipt of such assistance; and
4--Currently receive WtW and are non-custodial parents of a child
(children) receiving TANF assistance.
We have taken this approach based on our reading of section 411 of
the Act (data collection and reporting) and our interest in an
inclusive approach to assessing and evaluating this program. As
originally enacted, section 411(a) required States to report data on
participants ``receiving assistance under the State program funded
under this part* * *'', which in the TANF NPRM has been interpreted to
mean ``under the TANF program''. However, as amended by the Balanced
Budget Act, section 411(a) was also intended to require States to
report new data elements for WtW program participants.
Section 411 does not address formula or competitive grants or
grantees per se; it neither specifically includes or excludes them. One
interpretation of section 411 would require reporting of WtW data on
TANF recipients participating in any WtW program regardless of whether
they are receiving services from a formula grantee, a subgrantee, or a
competitive grantee. This interpretation, however, would exclude
information on a significant number of WtW participants, e.g., former
TANF recipients who continue to receive WtW services, non-custodial
parents, and persons who would be eligible to receive TANF assistance
except for the time limit on receipt of such assistance. Clearly,
exclusion of these populations makes a full evaluation of the WtW
grants more difficult and the findings less accurate or complete.
An alternate reading of the ``receiving assistance under the State
program funded under this part* * *'' language in section 411 would
provide for the collection of information on all State formula grant
WtW participants. This interpretation results from the fact that with
the passage of the Balanced Budget Act of 1997, there are now two State
grant programs funded under part IV-A of the Act. We believe the
references to State programs can be read to cover recipients of both
State TANF and WtW assistance. However, this interpretation would not
provide for reporting on all WtW participants, namely those served by
competitive grantees, since these grantees are not part of a State
program funded under part A of the Act.
We have determined that the second approach is a more preferable
reading of the statute since it would allow the collection of
information on all WtW participants in the State and Tribal formula
grant programs and, thus, will yield information most useful to States,
Tribes, and other grantees as well as DOL, DHHS and the Congress. Our
decision to adopt this more inclusive approach forms the basis of the
joint DOL/DHHS information strategy discussed above in which DHHS will,
among other activities, require WtW information from State and Tribal
formula grantees, and DOL will collect data from competitive grantees.
Thus, through this combined DHHS/DOL approach, we will be able to
collect data on all WtW participants while minimizing the burdens on
grantees.
In paragraph (b), we specify that only those Tribes administering
both TANF and WtW formula grants are required to report the information
in part 276. Although a wide range of Indian tribes are eligible to
receive WtW grants, section 412(g) of the Act requires only those
Tribes with an approved tribal assistance plan (TANF) to report the
data required in section 411.
Paragraph (c) of this section specifies the data elements that DHHS
is requiring States to report through this regulation. These data are
only the disaggregated participant information (not the aggregated
data) in the Emergency TANF Data Report (ACF Form 198, issued September
30, 1997, OMB Number 0970-0164, expires September 30, 1998) and the
information in the WtW Data Report specified in this interim final
rule. (As noted above, these DHHS data elements plus the additional
data elements specified by DOL will be collected through the use of a
common reporting form.)
Paragraph (d) of this section specifies the data elements that the
Tribes must report, i.e., only the disaggregated participant
information (not the aggregated data elements) in the Interim Tribal
TANF Data Report (ACF Form 343, issued May 6, 1998, OMB Number 0970-
0176, expires December 31, 1998) and the information in the WtW Data
Report specified in this interim final rule.
Paragraph (e) of this section describes the WtW Data Report. As a
specific resource and reference for this discussion, we have published
three appendices at the end of the regulation text: Appendix A contains
the specific data elements we will collect as well as the instructions
for coding these data; appendix B contains a summary of the applicable
sampling specifications; and appendix C contains a Statutory Reference
Table. These appendices will be published in the Federal Register as a
part of the final rule but will not be codified in the Code of Federal
Regulations.
Data Elements--Appendix A
The WtW Data Report consists of two sections; except for the eight
items discussed below, all elements are required by statute.
Section One consists of 21 disaggregated data elements. It
includes identifying information, such as the individual's Social
Security Number, and data on wages, employment activities, and
terminations.
Section Two consists of 10 aggregated data elements. It
includes information on the total number of participants, families,
noncustodial parents, and the total number of participants and families
terminated. These data are required by sections 411(a)(2) through (4)
and section 411(a)(6).
See the Statutory Reference Table in Appendix C which lists the
specific statutory authority for each data element.
Non-statutory Requirements--Appendix A
A. The following six data elements are not required by statute, but
they are necessary to, and implicit in, the administration of a data
collection system--

1. State FIPS Code
2. Tribal Code
3. Reporting Month
4. Stratum
5. Case Number--TANF
6. Disposition

B. The Social Security Number is readily available. States use
Social

[[Page 57923]]

Security Numbers to carry out the requirements of the Income and
Eligibility Verification System under sections 409 and 1137 of the Act.
States may use this number to share information between agencies. We
would use this information for statistical purposes only, e.g., for
evaluation of the WtW program as required in section 413(j) of the Act
and research as required in section 413(g) of the Act.
C. Section 411(a)(1)(A)(xviii)(III) requires reporting of the wages
paid to any participant in subsidized employment or on-the-job
training. For more accurate data, we have broken ``wages paid'' in two
elements: average hourly wages and average hours of work.
We recognize that requiring States and Tribes to report the
disaggregated Emergency TANF data elements on all WtW participants may
be viewed as burdensome and may appear somewhat duplicative without new
coordination efforts. However, section 411(a)(1) of the Act requires
that all enumerated data elements be reported for affected individuals
and families. Therefore, States and Tribes must report the
disaggregated Emergency TANF data elements in all WtW participants.
In addition, it should be noted that the ``TANF data elements'' in
the Emergency TANF Data Report will be superseded by the reporting
requirements in the TANF final rule. To the extent that these data
elements are revised in the final rule, States and Tribes may need to
amend their reporting systems to meet the modified requirements.
We have not specified how States and Tribes will collect and report
the data specified in this interim final rule which will be a part of
the common reporting form. After further discussion and consultation
with State TANF and workforce agencies, Tribes, PICs, and others, DHHS
and DOL plan to facilitate technical assistance in identifying
effective approaches to linking and merging TANF and WtW data.
Our expectation, however, is that one State or Tribal agency will
be responsible for reporting all of the data to us. Several preliminary
options have been identified:
A State may collect intake and WtW information from the
participant and obtain the TANF information from the TANF program.
How States report data offers an option for reduced
reporting burden. For example, States and Tribes which report universe
data on their TANF recipient population could report universe data on
WtW participants. DHHS would match these data sets at the federal
level.
In the early days of implementing the program, it may be
more feasible and efficient for States and Tribes to obtain both the
TANF and WtW data from the participant.
Must the Data be Filed Electronically? (Section 276.4)
This section requires that State and Tribes submit data
electronically. DHHS will develop and provide a pc-based software
package for State and Tribal use. This will facilitate electronic data
entry and transmission for each quarterly report.
We have included this requirement for the following reasons. OMB
requires Federal agencies to evaluate whether the burden on respondents
can be reduced by the use of automatic, electronic, mechanical, or
other technological collection techniques. DHHS, along with other
federal agencies, has for many years encouraged programs and grantees
to use such non-paperwork approaches to meet data collection
requirements. We believe all State and Tribes administering the WtW
program have electronic reporting capability.
Therefore, we conclude that electronic submission of these data
will not be a burden on States and that requiring electronic submission
of these reports will reduce paperwork and administrative burden, be
less expensive and time-consuming, and be more efficient for both
States and the Federal government.
May States and Tribes Use Sampling? (Section 276.5)
Section 411(a)(1)(B) of the Act permits States and Tribes to meet
the disaggregated data collection and reporting requirements by
submitting data based on the use of a scientifically acceptable
sampling method approved by DHHS. (States and Tribes may not submit
aggregated data based on a sample.)
We have provided a definition of ``scientifically acceptable
sampling method'' in paragraph (b) of this section. This definition
reflects generally acceptable statistical standards for selecting
samples and is consistent with existing ACF statistical policy. (See
appendix B for a summary of the WtW sampling specifications.)
Various options are available to States and Tribes if they choose
to provide data based on sampling. A State (or Tribe) may draw a WtW
sample independently from the TANF sample, or it may choose to use a
combined, stratified TANF-WtW sample in which WtW families are
identified by their individual stratum code, e.g., an integrated
sample. DHHS will approve a State's (Tribe's) sampling plan including
sample sizes, sampling frames, and use of stratified and non-stratified
samples. In addition, States and Tribes may wish to consider the
following:

--If a State (or Tribe) transmits the Emergency TANF Data Report for
its entire caseload, it will not need to re-transmit these data for WtW
families.
--If a State (or Tribe) transmits the Emergency TANF Data Report based
on a separate sample of its monthly caseload, it must report the
disaggregated data from the Emergency TANF Data for all WtW families as
part of its WtW transmission.
--If a State (or Tribe) transmits data based on a combined TANF/WtW
sample design, it will not need to re-transmit the TANF data as it will
be a part of the combined transmission.
Applicability of Other Statutory Provisions
As mentioned earlier, we have addressed in this rule only those
topics specific to WtW and have not included items that were addressed
in the TANF Notice of Proposed Rulemaking, such as when reports are
due, requirements for complete and accurate data, and the penalty on
States for failure to submit timely reports.
Since WtW data collection is not separate from TANF data collection
activity, but is an integral part of such activity, the same statutory
time frames, compliance, and penalty provisions that apply to TANF also
apply to the WtW data collection activity. Currently, we are
considering the issues raised by the comments to the TANF NPRM and will
address them in the final TANF rule. It would be inappropriate for us
to impose policies now on an interim final basis.
Further, the statute in section 409 (a)(2) of the Act generally
provides enough authority to impose any necessary penalties (i.e., for
failure to submit quarterly reports within 45 days after the end of the
quarter) that might be required before the TANF rules are finalized.
(The penalty is taken against the State's family assistance grant.) We
will address these matters in the final WtW rule.
We welcome comments on any provisions of the TANF data collection
sections in the NPRM (part 275) that may be problematic and any
constructive suggestions that would improve the implementation of these
WtW data reporting requirements.
We are currently reviewing the comments on the TANF NPRM and plan
to publish a final rule. After the close of

[[Page 57924]]

the comment period on this interim final rule, we will publish a final
rule, the content of which will be codified in the Code of Federal
Regulations as a part of the TANF regulations. Part 276 will be
vacated.

IV. Regulatory Impact Analyses

A. Executive Order 12866

Executive Order 12866 requires that regulations be drafted to
ensure that they are consistent with the priorities and principles set
forth in the Executive Order. The Department has determined that this
interim final rule is consistent with these priorities and principles.
The Executive Order encourages agencies, as appropriate, to provide
the public with meaningful participation in the regulatory process.
With DOL, we have held consultations with national organizations
representing State and local government and PICs, representatives of
State agencies administering the WtW and the TANF programs, and other.
We have considered their comments and suggestions in preparing this
rule. Although this interim final rule is effective upon publication,
we are providing an opportunity for a comment period of 60 days. We
will consider all comments received in response to this rule in
determining what changes are appropriate before issuing a final rule.
We do not believe that this regulatory action will:
Have an annual effect on the economy of $100 million
dollars or more or any adverse effects on the efficient functioning of
the economy, private market (including productivity, employment, and
competitiveness), health, safety, the natural environment, individuals,
States, Indian tribes, and other entities;
Create a serious inconsistency or otherwise interfere with
an action taken or planned by another agency;
Materially alter the budgetary impact of entitlements,
grants, user fees, or loan programs or the rights and obligations of
recipients thereof; or
Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
Executive Order 12866.
The statute contains specific data collection requirements. The
data elements in the WtW Data Report do not go beyond those explicitly
stated in the statute, except for those necessary for the
administration of a data collection system, the individual's Social
Security Number, and one breakout item. The Social Security Number may
be helpful to States and Tribes in sharing participant data between the
TANF and the WtW programs.
Overall, our assessment of this interim final rule indicates that
it represents the least burdensome approach to the collection of these
data.

B. Regulatory Flexibility Analysis

The Regulatory Flexibility Act (5 U.S.C. Ch. 6) requires the
Federal government to anticipate and reduce the impact of rules and
paperwork requirements on small businesses and other small entities.
Small entities are defined in the Act to include small businesses,
small non-profit organizations, and small governmental entities. This
rule will affect only a maximum of 50 States, the District of Columbia,
certain Indian tribes, and certain territories. Therefore, the
Secretary certifies that this rule will not have a significant impact
on small entities.

C. Paperwork Reduction Act

As required by the Paperwork Reduction Act, we have, under
emergency procedures, submitted these WtW data collection requirements
to OMB for review and approval for an initial 180 day period. We are
concurrently using this interim final rule as a vehicle for seeking
comment from the public on these information collection requirements as
part of the regular OMB review and approval process. This concurrent
review process will assure continuity of data collection and reporting
after expiration of the 180 day approval obtained under emergency
procedures. Affected parties do not have to comply with the information
collection requirements until we publish the control numbers assigned
to the requirements by OMB under the Paperwork Reduction Act of 1995.
This rulemaking requires that States report quarterly, on all WtW
participants, the WtW data elements in this rule and the disaggregated
TANF data elements in the Emergency TANF Data Report (Form ACF-198, OMB
Number 0970-0164, expires September 30, 1998). Indian tribes must also
report quarterly, on all WtW participants, the WtW data elements in
this rule and the disaggregated TANF data elements in the Interim
Tribal TANF Data Report (Form ACF-343, issued May 6, 1998, OMB Number
0970-0176, expires December 31, 1998). In order to facilitate the
review and public comment on the WtW reporting requirements, we have
published the WtW data elements for the quarterly report as appendix A.
The WtW Data Report consists of two sections: one section of 22
disaggregated case-record data elements and one section of 10
aggregated data elements. We need this information collection to meet
the requirements of section 5001(e) of the Balanced Budget Act of 1997,
which amended section 411(a) (Data Collection and Reporting) of the
Social Security Act.
We do not believe the requirement to report the TANF data elements
and the WtW data elements for individuals participating in the WtW
program necessarily creates a duplicate reporting burden. It does,
however, offer an opportunity for coordination between State and local
WtW formula grant agencies and TANF agencies. As a part of the joint
WtW information strategy, DHHS and DOL will issue guidance and
facilitate technical assistance to help States and Tribes meet these
requirements.
To assist grantees in reporting electronically, we will provide a
pc-based software package to facilitate data entry and transmission for
each quarterly report. We welcome comments on how the burden can be
further reduced.
The maximum number of respondents for this data collection are the
50 States of the United States, the District of Columbia, Guam, Puerto
Rico, and the United States Virgin Islands. (Note: Not all States have
currently elected to receive WtW formula grants.) We also expect
approximately seven Indian tribes to operate both a TANF program and a
Welfare-to-Work program and become respondents.
The estimated reporting burden in this rulemaking applies only to
the data elements specified in this regulation. DOL and DHHS will
estimate the total burden for the common reporting form in the
Paperwork Reduction Act Notice to be published in the new future.
In calculating the estimates of the reporting burden, we assumed
that most States (but no Indian tribes), would collect the data by
means of a sample.
The annual burden estimates include any time involved collecting
information, pulling records from files, abstracting information,
returning records to files, assembling any other material necessary to
provide the requested information, coordinating with other agencies,
and transmitting the information.
In developing the estimate of paperwork burden, we consulted with
knowledgeable Federal officials and researched the burden estimates for
similar data collections that OMB has approved or is considering.

[[Page 57925]]

----------------------------------------------------------------------------------------------------------------
Number of Average burden
Instrument or requirement Number of responses per hours per Total burden
respondents respondent response hours
----------------------------------------------------------------------------------------------------------------
Welfare-to-Work Data Report--Sec. 276.3 (e).... 61 4 164 40,048
Disaggregated data from the Emergency TANF Data
Report (ACF-198) and from the Interim Tribal
TANF Report (ACF-343)--Sec. 276.3 (c) and (d). 61 4 248 60,512
----------------------------------------------------------------------------------------------------------------

Estimated Total Annual Burden Hours: 100,560.
The estimate for reporting the disaggregated TANF data from the
Emergency TANF and the Interim Tribal TANF Data Reports (as specified
in Sec. 276.3 (c) and (d)) is more than one-third less than the burden
hours for reporting all data in these reports. Earlier, we estimated an
annual total of 97,416 hours to report the Emergency TANF data; since
we are requiring that States report only the disaggregated TANF data
(not the aggregated data) on WtW participants, we estimate the total
annual burden hours to be 60,512 hours.
We encourage State, Indian tribes, organizations, individuals, and
other parties to submit comments in writing regarding the information
collection requirements to the Administration for Children and
Families, Office of Information Services, Division of Information
Resource Management Services, 370 L'Enfant Promenade SW., Washington,
DC 20447, Attn: ACF Reports Clearance Officer.
To ensure that public comments have maximum effect in developing
the final regulations, we urge that each comment clearly identify the
specific section or sections of the interim final rule or the WtW data
collection form that the comment addresses and follow the same order as
the regulations and forms.
We will consider comments by the public on this collection of
information in:
evaluating whether the collections are necessary for the
proper performance of our functions, including whether the information
will have practical utility;
evaluating the accuracy of our estimate of the burden of
the collections of information, including the validity of the
methodology and assumptions used, and the frequency of collection;
enhancing the quality, usefulness, and clarity of the
information to be collected; and
minimizing the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technology, e.g., the
electronic submission of responses.
As discussed earlier, in order to expedite the collection of
information contained in this interim final rule, we have concurrently,
on a separate track, requested an initial 180 day approval under OMB's
emergency processing procedures. OMB is required to make a decision on
this emergency request within 15 days.
We encourage States, Indian tribes, organizations, individuals, and
other parties to submit comments in writing regarding the emergency
collection requirements to the Office of Information and Regulatory
Affairs, OMB, Room 3208, New Executive Office Building, 725 17th
Street, Washington, DC 20503, ATTN: Desk Officer for ACF.

D. Unfunded Mandates Reform Act of 1995

Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded
Mandates Act) requires that a covered agency prepare a budgetary impact
statement before promulgating a rule that includes any Federal mandate
that may result in the expenditure by State, local, and Tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year.
If a covered agency must prepare a budgetary impact statement,
section 205 further requires that it select the most cost-effective and
least burdensome alternative that achieves the objectives of the rule
and is consistent with the statutory requirements. In addition, section
203 requires a plan for informing and advising any small government
that may be significantly or uniquely impacted by the interim final
rule.
We have determined that the interim final rule will not result in
the expenditure by State, local, and Tribal governments, in the
aggregate, or by the private sector, of more than $100 million in any
one year. Accordingly, we have not prepared a budgetary impact
statement, specifically addressed the regulatory alternatives
considered, or prepared a plan for informing and advising any
significantly or uniquely impacted small government.

E. Congressional Review

This interim final rule is not a ``major'' rule as defined in 5
U.S.C., Chapter 8.

F. Effective Data and Absence of Notice and Comment

DOL has awarded WtW grants and State and Indian tribes have begun
implementing these grants. Pursuant to 5 U.S.C. 553(b)(B), we have
determined that the statutory mandate to begin information collection
as soon as States and Tribes begin implementing the grants constitutes
good cause for waiving notice and comment proceedings.
In addition we have determined, pursuant to 5 U.S.C. 553(d)(3),
that the WtW statutory mandate provides good cause for waiving the
customary requirement to delay the effective date of a final rule for
30 days following its publication. The short statutory duration of the
WtW grants program underscores the importance of beginning WtW
information collection at the earliest possible date.
Accordingly, the issuance of a proposed rule, rather than an
interim final rule, or delaying the effective date for 30 days, would
be contrary to the public interest. This interim final rule sets a
comment period to elicit any concerns raised by the rule. We have
limited this comment period to 60 days so that any input is received in
time for us to review it in considering any revisions to Part 276 while
the WtW grants program is still in its early stages of operation.

List of Subjects in 45 CFR Part 276

Administrative practice and procedure, Employment, Manpower
training programs, Penalties, Public assistance programs, Reporting and
recordkeeping requirements, Vocational education.

(Catalogue of Federal Domestic Assistance Programs: 17.253
Employment and Training Assistance--Welfare-to-Work Grants to States
and Local Entities for Hard-to-Employ Welfare Recipient Programs;
93.558 TANF Programs-State Family Assistance Grants, Assistance
Grants to Territories, Matching Grants to Territories, Supplemental
Grants for Population Increases and Contingency Fund; 93.559-Loan
Fund; and 93.595-Welfare Reform Research, Evaluations and National
Studies)

[[Page 57926]]

Dated: June 4, 1998.
Olivia A. Golden,
Assistant Secretary for Children and Families.

Approved: July 28, 1998.
Donna E. Shalala,
Secretary, Department of Health and Human Services.
For the reasons set forth in the preamble, part 276 is added to 45
CFR chapter II as follows:

PART 276--DATA COLLECTION AND REPORTING REQUIREMENTS FOR STATES AND
INDIAN TRIBES UNDER WELFARE-TO-WORK GRANTS

Sec.
276.1 What does this part cover?
276.2 What definitions apply to this part?
276.3 What data must States and Indian Tribes file on individuals
and families participating in the WtW program?
276.4 Must the data be filed electronically?
276.5 May States and Indian tribes use sampling?

Authority: 42 U.S.C. 603 and 611.

Sec. 276.1 What does this part cover?

(a) This part explains what information we will collect from States
and Indian tribes on individuals and families participating in the
Welfare-to-Work (WtW) grants program.
(b) This part also specifies electronic filing and sampling
requirements.

Sec. 276.2 What definitions apply to this part?

The following definitions apply to this part:
ACF means the Administration for Children and Families.
Act means Social Security Act.
State means the 50 States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.
TANF means The Temporary Assistance for Needy Families Program.
WtW program means the Welfare-to-Work grants authorized by sections
403(a)(5)(A) or 412(a)(3) of the Act.

Sec. 276.3 What data must States and Indian tribes file on individuals
and families participating in the WtW program?

(a) Each State that receives a grant under section 403(a)(5)(A)
must collect on a monthly basis, and file on a quarterly basis,
information on all individuals and families participating in the WtW
program.
(b) Each Indian tribe that receives a grant under both section
412(a)(1) and section 412(a)(3) must collect on a monthly basis, and
file on a quarterly basis, information on all individuals and families
participating in the WtW program.
(c) States must file the disaggregated information in the Emergency
TANF Data Report (TANF-ACF-PI-97-6, issued September 30, 1997, OMB
Number 0970-0164, expires September 30, 1998) and the WtW Data Report.
(d) Indian tribes must file the disaggregated information in the
Interim Tribal TANF Data Report (ACF Form 343, issued May 6, 1998, OMB
Number 0970-0176, expires December 31, 1998) and the WtW Data Report.
(e) The WtW Data Report consists of two sections:
(1) Section One consists of disaggregated data on individuals. It
specifies identifying and demographic data, such as the individual's
Social Security Number and information on employment and terminations.
It also includes total dollar expenditures associated with an
individual's participation in specified work activities.
(2) Section Two consists of aggregated data on families
participating in the WtW program. This section also includes two items
of expenditure data.

Sec. 276.4 Must the data be filed electronically?

Each State and Indian tribe must file the information required in
this part electronically, based on format specifications we will
provide.

Sec. 276.5 May States and Indian tribes use sampling?

(a) Each State and Indian tribe may report the disaggregated data
on all WtW participants or on a sample of participants selected through
the use of a scientifically acceptable sampling method that we have
approved. States and Tribes may not use a sample to generate the
aggregate data.
(b) ``Scientifically acceptable sampling method'' means a
probability sampling method in which every sampling unit in the
population has a known, non-zero chance to be included in the sample,
and our sample size requirements are met.
Note: The following appendices will not appear in the Code of
Federal Regulations.

Appendices

Appendix A--Welfare-to-Work Data Report

Section One: Disaggregated Data Collection for Families and
Individuals Participating in the WtW Grant Program
Section Two: Aggregated Data Collection for Families and Individuals
Participating in the WtW Grant Program

Appendix B--WtW Sampling Specifications

Appendix C--Statutory Reference Table for the Welfare-to-Work Data
Report

Section One: Disaggregated Data Collection For Families and
Individuals Participating in the WtW Grant Program
Section Two: Aggregated Data Collection For Families and Individuals
Participating in the WtW Grant Program

WTW Interim Final Rule Appendix A--

Welfare-to-Work Data Report--Section One Disaggregated Data
Collection for Families and Individuals Participating in the
Welfare-to-Work Grant Program

Instructions and Definitions

General Instruction: Under the statute, States and certain
Indian Tribes are required to collect data on families and
individuals participating in the Welfare-to-Work (WtW) Program.
These data are to be collected on a monthly basis and reported on a
quarterly basis to the Secretary of the Department of Health and
Human Services. (DHHS). Quarterly reports are due 45 days after the
close of the quarter.
The State or Tribe should collect and report data for each data
element, unless explicitly instructed to leave the field blank.
State FIPS Code: Enter your two-digit State code from the
following listing. These codes are the standard codes used by the
National Bureau of Standards. Tribes should enter ``00'' for this
field.

------------------------------------------------------------------------
State Code
------------------------------------------------------------------------
Alabama........................................................ 01
Alaska........................................................ 02
American Samoa................................................. 60
Arizona........................................................ 04
Arkansas....................................................... 05
California..................................................... 06
Colorado....................................................... 08
Connecticut.................................................... 09
Delaware....................................................... 10
Dist. of Columbia.............................................. 11
Florida........................................................ 12
Georgia........................................................ 13
Guam........................................................... 66
Hawaii......................................................... 15
Idaho.......................................................... 16
Illinois....................................................... 17
Indiana........................................................ 18
Iowa........................................................... 19
Kansas......................................................... 20
Kentucky....................................................... 21
Louisiana...................................................... 22
Maine.......................................................... 23
Maryland....................................................... 24
Massachusetts.................................................. 25
Michigan....................................................... 26
Minnesota...................................................... 27
Mississippi.................................................... 28
Missouri....................................................... 29
Montana........................................................ 30
Nebraska....................................................... 31
Nevada......................................................... 32
New Hampshire.................................................. 33
New Jersey..................................................... 34
New Mexico..................................................... 35
New York....................................................... 36
North Carolina................................................. 37
North Dakota................................................... 38
Ohio........................................................... 39
Oklahoma....................................................... 40
Oregon......................................................... 41
Pennsylvania................................................... 42
Puerto Rico.................................................... 72
Rhode Island................................................... 44
South Carolina................................................. 45

[[Page 57927]]

South Dakota................................................... 46
Tennessee...................................................... 47
Texas.......................................................... 48
Utah........................................................... 49
Vermont........................................................ 50
Virgin Islands................................................. 78
Virginia....................................................... 51
Washington..................................................... 53
West Virginia.................................................. 54
Wisconsin...................................................... 55
Wyoming........................................................ 56
------------------------------------------------------------------------

Tribal Code: For Indian Tribes, enter the three-digit Tribal
code that represents your Tribe (See attached appendix for a
complete listing of Tribal Codes.) States should leave this field
blank.
Reporting Month: Enter the four-digit year and two-digit month
code that identifies the year and month for which the data are being
reported.
Stratum: Guidance: States and Tribes may submit data for their
entire caseload or for a sample of families (cases). If a State or
Tribe opts to provide data for its entire caseload, enter the same
stratum code (any two-digit number) for each WtW family. All WtW
families selected in a sample from the same stratum must be assigned
the same stratum code. Valid stratum codes may range from ``00'' to
``99''. States and Tribes with stratified samples should provide the
ACF Regional Office with a listing of the numeric codes utilized to
identify any stratification.
Instruction: Enter the two-digit stratum code.
Case Number--TANF: Enter the number assigned by the State TANF
agency or Tribal TANF grantee to uniquely identify the family
participating in the WtW Programs. If the WtW participant is no
longer a member of a TANF family, use the case number previously
assigned to the TANF family. For a non-custodial parent
participating in the WtW Program, use the TANF case number for the
family that includes his(her) child.
Disposition--WtW: Guidance: A family that did not have any
family member participating in the WtW Program for the reporting
month but was included in the monthly sample frame is ``listed in
error.''
Instruction: Enter one of the following codes for the WtW
family.
1 = Data collection completed
2 = Not subject to data collection/listed in error

Person Level Data

This section allows for coding up to six family members
participating in the WtW Program. If, for the reporting month, a
noncustodial parent is participating in WtW activities funded under
section 403(a)(5)(A) or 412 (a)(3), the noncustodial parent must
also be reported in this section as a member of the related TANF
family.
7. Social Security Number: Enter the participant's nine-digit
Social Security Number in the format nnnnnnnnn.

Employment Data

For participants who are employed during the reporting month,
complete this section.
8. Average Hourly Wages: If the family member is engaged in
subsidized employment or on-the-job training under the WtW Program
or if the family member's participation in the WtW activity was
terminated during the reporting month due to obtaining employment,
enter the average hourly wages paid (e.g., $9.50 per hour) for the
reporting month.
9. Average Hours of Work: If the family member is engaged in
subsidized employment or on-the-job training under the WtW Program,
enter the average hours of work per week for the reporting month.
10. Wage Subsidy: If the family member is engaged in subsidized
employment or on-the-job training under the WtW Program, enter the
total amount of any wage subsidy provided from Federal or State
(Tribal) funds for the reporting month.

Data on Amount Expended by Type of Activity

Enter the total dollar expenditures for the reporting month that
are associated with the individual's participation in each of the
WtW activities listed below. Estimates based on ``Generally Accepted
Accounting Principles'' for cost allocation processes are
acceptable. These costs must include Federal and State expenditures
and are exclusive of administrative costs.
11. Community Service:
12. Work Experience Program:
13. Public Sector Employment Wage Subsidy:
14. Private Sector Employment Wage Subsidy:
15. On-the-Job Training:
16. Job Readiness:
17. Job Placement Services:
18. Post-Employment Services:
19. Job Retention Services:
20. Supportive Services:

Termination Data

If the family member's participation in the WtW activity was
terminated during the reporting month, complete the questions in
this section. Otherwise, leave these data elements blank.
21. Reason for Termination of Participation in Welfare-to-Work
Activity: If the family member's participation in the WtW activity
was terminated during the reporting month, enter the one-digit code
that indicates the reason for termination.

1 = Obtained unsubsidized employment
2 = Obtained subsidized employment
3 = Engaged in another work activity (as defined under Section
407(d) of Act for the TANF Program)
4 = Engaged in other training
5 = Increased wages
9 = Other

Welfare-to-Work Data Report--Section Two Aggregated Data Collection
for Families and Individuals Participating In the Welfare-to-Work
Grant Program

Instructions and Definitions

1. State FIPS Code: Enter your two-digit State code. Tribes
should enter ``00'' for this field.
2. Tribal Code: For Indian Tribes only, enter the three-digit
Tribal code that represents your Tribe. States should leave this
field blank.
3. Calendar Quarter: The four calendar quarters are as follows:

First quarter--January--March
Second quarter--April--June
Third quarter--July--September
Fourth quarter--October--December

Enter the four-digit year and one-digit quarter code (in the
format YYYYQ) that identifies the calendar year and quarter for
which the data are being reported (e.g., second quarter of 1997 is
entered as ``19972''.)

Participating Families

For purposes of completing this report, include all families and
individuals participating in services under the Welfare-to-Work
(WtW) Program. All counts of families and individuals should be
unduplicated monthly totals.
4. Total Number of Families: Enter the number of families that
participated in the State (Tribal) WtW Programs for each month of
the quarter.