[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67235-67241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32085]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
45 CFR Parts 301, 302, 303, 304, 306 and 307
RIN 0970-AB57
Child Support Enforcement Program; State Plan Approval and Grant
Procedures, State Plan Requirements, Standards for Program Operations,
Federal Financial Participation, Optional Cooperative Agreements for
Medical Support Enforcement and Computerized Support Enforcement
Systems
Agency: Office of Child Support Enforcement (OCSE), HHS.
Action: Final rule.
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Summary: This final rule revises or removes regulations, in part or
whole, in response to the President's Memorandum of March 4, 1995 to
heads of Departments and Agencies which announced a government-wide
Regulatory Reinvention Initiative to reduce or eliminate burdens on
States, other governmental agencies or the private sector. This rule
also implements Public Law 104-35 which extends the date from October
1, 1995 to October 1, 1997 by which States will have in effect, and
approved by the Secretary, an operational automated data processing and
information retrieval system meeting all requirements of Federal law
enacted on or before the date of enactment of the Family Support Act of
1988.
EFFECTIVE DATE: The final rule is effective December 20, 1996.
FOR FURTHER INFORMATION CONTACT: Division of Policy and Planning, OCSE,
specifically: Marilyn R. Cohen, (202) 401-5366.
[[Page 67236]]
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
This rule does not require information collection activities and,
therefore, no approvals are necessary under the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507(d)).
Statutory Authority
This regulation is issued under the authority granted to the
Secretary by section 1102 of the Social Security Act (The Act). Section
1102 of the Act requires the Secretary to publish regulations that may
be necessary for the efficient administration of the functions for
which she is responsible under the Act. In accordance with the
Presidential directive to executive branch regulatory agencies to
identify existing regulations that are redundant or obsolete, OCSE has
examined Chapter III of Title 45, Code of Federal Regulations to
evaluate those areas where regulations should be removed.
Background
The Child Support Enforcement Amendments of 1984 (Pub. L. 98-378)
featured provisions that required critical improvements in State and
local child support enforcement programs. We are continuing this
improvement by responding to the President's Memorandum of March 4,
1995 to heads of Departments and Agencies which announced a government-
wide Regulatory Reinvention Initiative to reduce or eliminate mandated
burdens on States, other governmental agencies or the private sector.
The Presidential Memorandum required Agencies, by June 1, 1995, to
conduct a page-by-page review of all regulations to eliminate or revise
those that are outdated or otherwise in need of reform. OCSE conducted
such a review, resulting in the revisions set forth in this document.
Both substantive and technical changes are made including
recodification such as renumbering and terminology revisions. We
consider the changes in this final rule as only the first part of our
response to the President's Regulation Reinvention Initiative. We are
working with our partners to identify additional regulations which
should be reevaluated given the new direction of regulatory
reinvention.
We deferred recommending any changes in existing rules which are
impacted by enactment of the Personal Responsibility and Work Act
Opportunity Reconciliation Act of 1996 (PRWORA). The deferred
regulations will be reviewed in light of the PRWORA. At such time we
will also determine whether the new requirements will be implemented by
regulation or by other means. Because of enactment of the PRWORA, we
have withdrawn the proposed changes in the requirements on making
information available to consumer reporting agencies. The requirements
in PRWORA on consumer reporting agencies supersede those in the NPRM
and will be implemented along with the other new requirements.
Description of Regulatory Provisions
This rule makes technical revisions, including recodification, to
the various regulations, governing the child support program, as
follows:
Section 301.1 General Definitions
We are removing the specified years for Applicable matching rate of
``1983 through 1987, 70 percent, FY 1988 and FY 1989, 68%,'' referenced
in section 301.1 as such dates have passed.
Section 301.15 Grants
We are making two technical revisions in this section. Part of the
mailing address in paragraph (a)(1) is updated by replacing, ``Social
and Rehabilitation Service, Attention: Finance Division, Washington, DC
20201'' with ``Administration for Children and Families, Office of
Program Support, Division of Formula, Entitlement and Block Grants, 370
L'Enfant Promenade, S.W., Washington, D.C. 20447.'' In addition, we are
replacing the phrase, ``Subpart G Matching and Cost Sharing'' with ``45
CFR 74.23 Cost Sharing or Matching'' and replacing the phrase ``Subpart
I Financial Reporting Requirements'' with ``45 CFR 74.52 Financial
Reporting'' in paragraph (e). This latter revision coincides with
substantial revisions of 45 CFR Part 74 by DHHS August 25, 1994 (59 FR
43760).
Section 302.15 Reports and Maintenance of Records
This rule implements section 454(10) of the Act which does not
specify use of microfilm for record retention. We are removing
paragraph (b) ``Conditions for Optional Use of Microfilm Copies,''
because microfilm use is obsolete due to automatic case tracking and
electronic filing capability. This change results in the following:
Paragraph (a) is without designation, paragraphs (a)(1) and (a)(2) are
redesignated (a) and (b), and roman numerals (i) through (vii) are
redesignated as arabic numbers (1) through (7), respectively. Removal
of the microfilm reference does not preclude States from continuing to
use microfilm as an information storage medium.
Section 302.33 Services to Individuals Not Receiving AFDC or Title IV-
E Foster Care Assistance
We are removing paragraph (c)(1), Application Fee, as it refers to
requirements in effect prior to October 1, 1985, which date has passed.
Thus, paragraph (2) is renumbered as paragraph (1) and paragraph (3) is
renumbered as paragraph (2). In addition, we are removing paragraph
(e), Assignment, in order to eliminate unnecessary regulations. A State
is not required to take an assignment but has discretion to do so.
Removal of this subsection does not preclude a State from taking an
assignment of rights from a non-AFDC recipient of IV-D services if
necessary under State law or practice in order to deliver program
service.
Section 302.34 Cooperative Arrangements
The authorities for this rule are sections 1102 and 454(7) of the
Act. Paragraph (b) specifies that cooperative arrangements existing
prior to October 1, 1989, or entered into on or after October 1, 1989,
must meet the criteria prescribed under Sec. 303.107 of this chapter by
October 1, 1990. Therefore, we are removing paragraph (b) as the result
of the passage of time. This revision leaves paragraph (a) without
designation. We are also revising the first sentence of the remaining
paragraph by adding ``under Sec. 303.107'' after ``cooperative
arrangements.''
Section 302.36 Provision of Services in Interstate IV-D Cases
The authorities for this rule are section 454(9) of the Act which
addresses standards prescribed by the Secretary and section 1102 of the
Act which addresses the Secretarial authority to issue regulations
necessary for program administration. These requirements were
originally placed in regulation to clarify that States are required to
provide all necessary IV-D services in interstate cases. However, we
are removing paragraphs (a)(1) through (a)(5), to eliminate repetition
as Sec. 303.7(c)(7) also provides explicit provisions which specify the
various functional responsibilities by the responding State. This does
not alter the requirement for provision of services; it merely removes
unnecessary text referenced elsewhere. This revision also removes the
word, ``for:'' at the end of paragraph (a), thus leaving paragraph (a)
without designation and ending the paragraph with the word,
``chapter.''
[[Page 67237]]
Section 302.37 Distribution of Support Payments
This rule implements section 454(11) of the Act. We are removing
this section in an effort to reduce unnecessary rules because it
references Secs. 302.32 and 302.51 which duplicate this section.
Section 302.54 Notice of Collection of Assigned Support
This rule implements section 454(5) of the Act which does not
specify dates. We are removing paragraph (a) which is obsolete as it
specifies requirements in effect until December 31, 1992, which date
has now passed. Thus, paragraph (b) is redesignated paragraph (a) and
paragraph (c) is redesignated paragraph (b), respectively.
We are also revising redesignated paragraph (a)(2) by adding the
word, ``collected'' after the second mention of ``support'' to read as
follows: ``The monthly notice must list separately payments collected
from each absent parent when more than one absent parent owes support
to the family and must indicate the amount of current support
collected, the amount of arrearages collected and the amount of support
collected which was paid to the family.'' This addition is made to
clarify that it is the amount actually collected, not the amount owed
that must be included in the notice, and will be consistent with the
statutory language at section 454(5)(A) of the Act.
Redesignated section 302.54(b)(1)(i) specifies one of the grounds
upon which a State may be granted a waiver to permit the issuance of
quarterly, rather than monthly, notices of the amount of support
collected. Waivers granted under this criterion were based upon the
State's lack of a computerized support enforcement system consistent
with Federal requirements or the lack of an automated system that is
able to generate monthly notices. Such waivers were valid through
September 30, 1995.
On October 12, 1995, Public Law 104-35 was signed into law, which
revised section 454(24) of the Social Security Act. The revised statute
extends the date from October 1, 1995 to October 1, 1997 by which
States will have in effect, and approved by the Secretary, an
operational automated data processing and information retrieval system
meeting all requirements of Federal law enacted on or before the date
of enactment of the Family Support Act of 1988. Because operating
automated statewide systems are vital to a State's ability to issue
monthly notices, we are revising the date clause to read ``Until
September 30, 1997,'' in recognition of the additional time needed for
States to have operational systems. Any automated system developed to
meet the Federal requirements for a certified comprehensive Statewide
system must produce mandated monthly notices of collections.
States with previous waivers that expired September 30, 1995 can
apply for extension of the waiver if the State does not have a
computerized support enforcement system consistent with Federal
requirements or lacks an automated system that is able to generate
monthly notices. Extension of waivers will be granted as part of the
State plan approval process.
Section 302.80 Medical Support Enforcement
We are revising Sec. 302.80 by removing the reference to ``Part 306
of this chapter'' in paragraph (a) and replacing it with ``Secs. 303.30
and 303.31 of this chapter''. We are making this revision as Part 306
is being removed with this final regulation.
Section 302.85 Mandatory Computerized Support Enforcement System
On October 12, 1995, Public Law 104-35 was signed into law, which
revises section 454(24) of the Social Security Act. The revised statute
extends the date from October 1, 1995 to October 1, 1997 by which
States must have in effect, and approved by the Secretary, an
operational automated data processing and information retrieval system
meeting all requirements of Federal law enacted on or before the date
of enactment of the Family Support Act of 1988. Because the deadline by
which States must have operational automated systems has been changed,
we are removing the date in paragraph (a)(2) ``October 1, 1995'' and
replacing it with ``October 1, 1997.''
Section 303.10 Procedures for Case Assessment and Prioritization
This rule was issued under authority of section 1102 of the Act, as
part of implementation of the Child Support Enforcement Amendments of
1984 (Pub.L. 98-378). We are removing this section because case
assessment and prioritization procedures are permissive and standards
for an effective program at 45 CFR Part 303 require the State to
provide necessary IV-D services in all cases in an efficient and
effective manner. Therefore, it is not necessary to place this
information in regulation.
Section 303.31 Securing and Enforcing Medical Support Obligations
This rule implements section 452(f) of the Act. We are replacing
references to ``Sec. 306.50(a)'' with ``Sec. 303.30(a)'' in paragraphs
(b)(6) and (b)(7). This technical change is required to correct a
clerical error. Revisions to Secs. 303.30 and 303.31 set forth in the
final rule issued March 8, 1991 (56 FR 7988) did not make these
technical changes.
Section 303.73 Applications To Use the Courts of the United States To
Enforce Court Orders
This regulation is based on sections 452(a)(8) and 460 of the Act.
We are significantly streamlining this section in order to remove
unnecessary regulatory language. An Action Transmittal (AT) issued
February 6, 1976 (OCSE-AT-76-1) and revised May 12, 1976 (OCSE-AT-76-8)
covers paragraphs (a) and (b) of the regulation. Since the procedures
in this regulation are infrequently used, and their use is
discretionary, it is sufficient for users to follow guidance in the AT.
The AT, widely available to State child support agencies, gives express
instructions for submitting cases for consideration for referral to
Federal court. It is unnecessary to place paragraph (c) in regulation
as it merely specifies internal instructions to the Regional Office.
Therefore, we are revising the end of the introductory portion of
paragraph (a) by removing, ``to demonstrate that'' and completing the
paragraph by adding, ``in accordance with instructions issued by the
Office,'' thus deleting paragraphs (a)(1) through (c).
Section 303.100 Procedures for Wage or Income Withholding
In the administration of wage or income withholding,
Sec. 303.100(g)(3) requires that effective October 1, 1995, States must
be capable of receiving withheld amounts and accounting information
which are electronically transmitted by the employer to the State. This
effective date for electronic funds transfer capability was directly
linked to the date by which States are required to have operational
automated child support enforcement systems. On October 12, 1995,
Public Law 104-35 was signed into law, which revised section 454(24) of
the Social Security Act. The revised statute extends the date from
October 1, 1995 to October 1, 1997 by which States will have in effect,
and approved by the Secretary, an operational automated data processing
and information retrieval system meeting all requirements of Federal
law enacted on or before the date of enactment of the Family Support
Act of 1988. Because the deadline by which States must have operational
automated systems has been changed, we are revising the introductory
clause in
[[Page 67238]]
paragraph (g)(3) to remove the phrase ``Effective October 1, 1995,''
and replacing it with ``Effective October 1, 1997,''.
Section 304.10 General Administrative Requirements
We have replaced the parenthetical phrase, ``(with the exception of
Subpart G, Matching and Cost Sharing and Subpart I, Financial Reporting
Requirements)'' with ``(with the exception of 45 CFR 74.23, Cost
Sharing or Matching and 45 CFR 74.52, Financial Reporting).'' This
revision is being made to coincide with substantial revisions of 45 CFR
Part 74 by DHHS August 25, 1994 (59 FR 43760).
Section 304.20 Availability and Rate of Federal Financial
Participation
We have made several technical revisions to update and correct this
section. In paragraph (b)(1)(iii), we are replacing the phrase
``Subpart P'' with ``... in accordance with the Procurement Standards
found in 45 CFR 74.40 et. seq.'' We are making this revision to
coincide with substantial revisions of 45 CFR Part 74 by DHHS August
25, 1994 (59 FR 43760) because the regulation is applicable to the
Child Support Enforcement program .
In paragraph (b)(1)(vi), we are changing the reference from
``Sec. 302.16'' to ``Sec. 304.15.'' We are making this technical
revision because Sec. 304.15 is a cross-reference to the DHHS
regulations on cost allocation at 45 CFR Part 95, Subpart E which
replaced 45 CFR 302.16. In paragraph (b)(3)(iv), we are replacing
``attachment'' with ``withholding'', in order to make the terminology
consistent with the enactment of the Child Support Enforcement
Amendments of 1984 (Pub. L. 98-378).
In paragraph (b)(8), we are correcting a clerical error by
replacing ``Sec. 302.2'' with ``Sec. 303.2.'' Finally, in paragraph
(b)(11), we are removing ``Part 306, Subpart B, of this chapter'' and
replacing it with ``Secs. 303.30 and 303.31 of this chapter''. We are
making this technical fix to update this section to reflect the
revision made in 1990 to redesignate Part 306 Subpart B as Secs. 303.30
and 303.31.
Section 304.23 Expenditures for which Federal Financial Participation
Is Not Available
In paragraph (g), we are removing ``Part 306 of this chapter'' and
replacing it with ``Secs. 303.30 and 303.31 of this chapter''.
Section 304.95 State Commissions on Child Support
This rule was required by section 15 of Public Law 98-378 to be
implemented by December 1, 1984 with a report of findings and
recommendations to the Governor by October 1, 1985. We are removing
this section as the requirement for a State to have a Commission on
Child Support as a condition of eligibility for Federal funding expired
on October 1, 1985. Although it is no longer mandatory, nothing
precludes a State from having such a Commission.
Part 306 Optional Cooperative Agreements for Medical Support
Enforcement; Section 306.0 Scope of This Part, Section 306.2
Cooperative Agreement, Section 306.10 Functions To Be Performed Under a
Cooperative Agreement, Section 306.11 Administrative Requirements of
Cooperative Agreements, Section 306.20 Prior Approval of Cooperative
Agreements, Section 306.21 Subsidiary Cooperative Agreements With
Courts and Law Enforcement Officials, Section 306.22 Purchase of
Service Agreements, and Section 306.30 Source of Funds
Cooperative agreements for medical support enforcement was first
added to the IV-D regulations (Part 306) in the February 11, 1980 joint
final rule by the Health Care Financing Administration (HCFA) and OCSE
implementing section 11 of Public Law 95-142 which added a new section
1912 to the Social Security Act. Section 1912 authorized the Third
Party Liability (TPL) program in the Medicaid agency and required the
State to require Medicaid recipients, as a condition of Medicaid
eligibility, to assign their support rights to any medical support and
to cooperate with the State in establishing paternity and obtaining
third party payments. Section 1912 also required the State plan to
provide for the State Medicaid agency to make cooperative agreements
with the State IV-D agency, and other appropriate agencies, courts, and
law enforcement officials to assist in the TPL program, with an
incentive payment to political subdivision, other State, or other
entity that makes the TPL collection.
As a result of an increasing degree of responsibility for IV-D
agencies to perform medical support functions, very few of the
functions listed in Sec. 306.10 continue to be optional. Many of the
requirements listed as ``optional'' for IV-D agencies to perform under
agreements with State Medicaid agencies have become mandatory under
title IV-D (e.g., obtain sufficient health insurance information,
Sec. 303.30; secure health insurance coverage, Sec. 303.31). This
leaves only two optional procedures in Sec. 306.10 ((f) file insurance
claims and (h) take direct action to recover TPL).
We are removing and reserving Part 306. This will give States
flexibility to enter into cooperative agreements with Medicaid agencies
to perform activities which are beyond the mandatory medical support
activities of the IV-D program. Cooperative agreements for medical
support enforcement is a statutory requirement mandated on the Health
Care Financing Administration (HCFA) which was placed in regulation at
42 CFR 433.152 but optional for IV-D. This removal will not affect the
continuation of existing cooperative agreements or formulation of
future agreements between State child support agencies and State
Medicaid agencies.
Section 307.5 Mandatory Computerized Support Enforcement Systems
On October 12, 1995, Public Law 104-35 was signed into law, which
revised section 454(24) of the Social Security Act. The revised statute
extends the date from October 1, 1995 to October 1, 1997 by which
States will have in effect, and approved by the Secretary, an
operational automated data processing and information retrieval system
meeting all requirements of Federal law enacted on or before the date
of enactment of the Family Support Act of 1988. Because the deadline by
which States must have operational automated systems has been changed,
we are removing the date in paragraph (a) ``October 1, 1995'' and
replacing it with ``October 1, 1997.''
Section 307.15 Approval of Advance Planning Documents for Computerized
Support Enforcement Systems
On October 12, 1995, Public Law 104-35 was signed into law, which
revised section 454(24) of the Social Security Act. The revised statute
extends the date from October 1, 1995 to October 1, 1997 by which
States will have in effect, and approved by the Secretary, an
operational automated data processing and information retrieval system
meeting all requirements of Federal law enacted on or before the date
of enactment of the Family Support Act of 1988. Therefore, we are
removing the date in paragraph (b)(2) ``October 1, 1995'' and replacing
it with ``October 1, 1997.''
Response to Comments
We have received over 55 comments from representatives of State and
local
[[Page 67239]]
agencies, national organizations, advocacy groups, and private citizens
on the proposed rule published January 29, 1996 in the Federal Register
(61 FR 2774). Comments received and our responses are as follows:
Services to Individuals Not Receiving AFDC or Title IV-E Foster Care
Assistance (Assignment)--Section 302.33(e)
1. Comment: We received one comment supporting removal of this
paragraph and a number of comments suggesting removal would allow
States to require assignments from non-AFDC cases which would violate
Federal policy. The commenters indicated that it would deter custodial
parents from requesting help.
Response: Having non-AFDC cases assign their right to support is a
State law issue, not a Federal issue. For non-AFDC cases, States cannot
require the kind of assignment that gives them the authority to retain
support, or any other assignment under State law as a condition of
eligibility for IV-D services. The type of assignment that was
specified in Sec. 302.33(e) is used by some States as an administrative
technique to provide services. In such States, legal authority must be
given to them in order to collect money on behalf of the family.
Assignment for this purpose is not the same as the usual definition of
assignment set forth in Federal regulations at 45 CFR 301.1. We are not
changing policy but merely removing the citation because it is
unnecessary.
2. Comment: A number of commenters took the position that by
deleting this paragraph, States would not be required to inform the
custodial parents that assignments are not required.
Response: We encourage States to inform custodial parents when such
assignment is required and clearly explain the reason for this type of
assignment. However, as indicated above, this is an issue of State law
and procedures, and this notice should not be a Federal mandate in the
current environment of having as few Federal regulations as possible.
Notice of Collection of Assigned Support (Grant a Waiver)--
302.54(b)(1)(i), Formerly (c)(1)(i)
1. Comment: One commenter supports us in extending the date for the
waiver to use a quarterly notice rather than a monthly notice to
October 1, 1997 and a number of commenters are against this extension.
Response: Congress provided authority for a waiver recognizing the
importance of an automated system to generate monthly notices. On
October 12, 1995, Public Law 104-35 was signed into law which revised
Section 454(24) of the Social Security Act. The revised statute extends
the date from October 1, 1995 to October 1, 1997 by which States will
have in effect, and approved by the Secretary, an operational automated
data processing and information retrieval system meeting all
requirements of Federal law enacted on or before the date of enactment
of the Family Support Act of 1988. Although most States have made
significant progress in their Statewide systems development efforts,
most States do not have certified systems and will be helped by this
extension. Because waivers available under this paragraph are linked to
the existence of an operational automated system, we extended this date
accordingly.
2. Comment: A few commenters urged that States who already have a
waiver should not have to reapply for a waiver but should have the
waiver extended automatically.
Response: States with previous waivers that expired September 30,
1995 can apply for extension of the waiver if the State does not have a
computerized support enforcement system consistent with Federal
requirements or lacks an automated system that is able to generate
monthly notices. Extension of waivers will be granted as part of the
State plan approval process.
3. Comment: One commenter asked that we clarify that a waiver from
monthly reporting will be available after October 1, 1997 for States
that include an Automated Voice Response System with their Statewide
system that provides the required notice information.
Response: We believe the regulation is clear at section
302.54(b)(1)(ii) that waivers may be granted indefinitely to provide
quarterly notices if a State has a toll-free automated voice response
system. In addition, as specified in the preamble to the final monthly
notice regulation issued July 10, 1992 (57 FR 30666), indefinite
waivers of the monthly notice requirement are allowed if States send
quarterly notices and have an automated voice response system which
provides all required information in Sec. 302.54(b)(2).
4. Comment: Another commenter thought notices were unnecessary for
former AFDC recipients when the State only has assigned arrears to
collect as they have no interest in this information and are difficult
to locate.
Response: Section 454(5) of the Act and the implementing
regulations at 45 CFR 302.54(a)(1) require that notice must be given to
any custodial parent who has made an assignment to the State under
section 402(a)(26) of the Act, and a collection applied to assigned
arrears was made during the month unless they cannot be located.
Procedures for Case Assessment and Prioritization--Section 303.10
1. Comment: We received several comments favoring removal of this
section as it is difficult to implement and removal will give State
programs the flexibility to manage their caseloads efficiently and
effectively. Other commenters indicated that retaining this section
would insure States know they can set priorities within the timeframes
if they wish and allow IV-D agencies to operate more efficiently. One
commenter indicated that removal would allow States to ignore cases in
certain status/priorities regardless of staff limitations.
Response: States are allowed discretion in the management of their
program and we do not believe that regulating such discretion offers a
benefit. IV-D agencies may set priorities without specific reference to
such discretion in Federal regulations. The Standards for Program
operations at 45 CFR Part 303 require the States to work all cases
within specified timeframes. States will continue to have discretion to
prioritize their work providing these program standards are met.
Applications to Use the Courts of the United States To Enforce Court
Order--303.73
1. Comment: A number of commenters indicated that removal of this
section would limit further the number of cases using this enforcement
technique as requestors would not have access to the Action Transmittal
(AT) and that ATs are less easily accessed than CFRs.
Response: Program instructions for this enforcement technique are
clearly laid out in Action Transmittals OCSE-AT-76-1 and OCSE-AT-76-8
which are accessible to the public on the Internet. AT-76-1 includes
the application form with instructions on how to fill out each blank
and AT-76-8 includes a corrected citation.
Procedures for Wage or Income Withholding--303.100
1. Comment: Several commenters requested that we do not extend the
deadline for accepting wage withholding collections through Electronic
Funds Transfer from October 1, 1995 to October 1, 1997 as wage
[[Page 67240]]
withholding is an important tool for collecting child support.
Response: Electronic Funds Transfer (EFT) is directly linked to
automation. Extension of the deadline for EFT does not delay wage
withholding, but rather delays the requirements for States to accept
wage withholding collections from employers through EFT. Because Public
Law 104-35 extends the date by which States must have in effect, and
approved by the Secretary, an operational automated data processing and
information retrieval system by two years, this conforming change
regarding the use of EFT is necessary.
Optional Cooperative Agreements for Medical Support Enforcement--Part
306
1. Comment: One commenter questioned where it would be stated in
regulations that a State IV-D agency may enter into a cooperative
agreement with a Medicaid agency to provide services not mandated by
title IV-D if section 306.10 is removed. The commenter further
questioned whether a IV-D agency may enter into cooperative agreements
to perform functions beyond those now listed in section 306.10.
Response: Cooperative agreements were never required under title
IV-D of the Act, and OCSE regulations. A IV-D agency may, at its
discretion, enter into cooperative agreements with Medicaid agencies to
perform functions beyond those mandated by title IV-D so long as the
Medicaid agency pays for the costs of such activities. Since the
optional cooperative agreements for medical support enforcement
activities are not required by the statute, and few States have entered
into these agreements, we are deleting these provisions from the
regulations.
2. Comment: A commenter asked whether FFP will become available for
all medical support enforcement services performed under a cooperative
agreement with Medicaid when section 306.30 is removed.
Response: According to section 304.23(g), medical support services
performed under cooperative agreement with title XIX Medicaid agencies
are not eligible for FFP from OCSE. Activities performed by the IV-D
agency under a cooperative agreement with the Medicaid agency must be
funded by the Medicaid agency.
3. Comment: A number of commenters pointed out two additional
references to be deleted with this removal (i.e. 45 CFR Part 306 from
sections 302.80 and 304.23(g)) in addition to our proposed removal from
section 304.20(b)(11).
Response: We appreciate this being brought to our attention and
have deleted these references.
Regulatory Flexibility Analysis
The Secretary certifies, under 5 U.S.C. 605(b), as enacted by the
Regulatory Flexibility Act (Pub. L. 96-354), that this final rule will
not result in a significant impact on a substantial number of small
entities. The primary impact is on State governments and individuals
and results from restating the provisions of the statute. State
governments are not considered small entities under the Act.
Executive Order 12866
Executive Order 12866 requires that regulations be reviewed to
ensure that they are consistent with the priorities and principles set
forth in the Executive Order. The Department has determined that this
rule is consistent with these priorities and principles. No costs are
associated with this rule as it merely ensures consistency between the
statute and regulations.
List of Subjects
45 CFR Part 301
Child support, Grant programs/social programs.
45 CFR Part 302
Child support, Grant programs/social programs, Reporting and
recordkeeping requirements.
45 CFR Parts 303 and 304
Child support, Grant programs/social programs, Reporting and
recordkeeping requirements.
45 CFR Part 306
Child support, Grant programs/social programs, Medicaid.
45 CFR Part 307
Child support, Grant programs/social programs, Computerized support
enforcement systems.
(Catalog of Federal Domestic Assistance Programs No. 93.563, Child
Support Enforcement Program)
Dated: November 22, 1996.
Olivia A. Golden,
Acting Assistant Secretary for Children and Families.
For the reasons discussed above, title 45 chapter III of the Code
of Federal Regulations is amended as follows:
PART 301--STATE PLAN APPROVAL AND GRANT PROCEDURES
1. The authority citation for Part 301 continues to read as set
forth below:
Authority: 42 U.S.C. 651 through 658, 660, 664, 666, 667, 1301,
and 1302.
2. Section 301.1 is amended by revising the definition for
``applicable matching rate'' to read as follows:
Sec. 301.1 [Amended]
* * * * *
Applicable matching rate means the rate of Federal funding of State
IV-D programs' administrative costs for the appropriate fiscal year.
The applicable matching rate for FY 1990 and thereafter is 66 percent.
* * * * *
Sec. 301.15 [Amended]
3. In 301.15, paragraph (a)(1) is amended by revising ``Social and
Rehabilitation Service, Attention: Finance Division, Washington, DC
20201'' to read ``Administration for Children and Families, Office of
Program Support, Division of Formula, Entitlement and Block Grants, 370
L'Enfant Promenade, S.W., Washington, DC 20447'' and paragraph (e) is
amended by revising ``Subpart G Matching and Cost Sharing'' with ``45
CFR 74.23 Cost Sharing or Matching'' and revising ``Subpart I Financial
Reporting Requirements'' to read ``45 CFR 74.52 Financial Reporting.''
PART 302--STATE PLAN REQUIREMENTS
4. The authority citation for Part 302 continues to read as
follows:
Authority: 42 U.S.C. 651 through 658, 664, 666, 667, 1302,
1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), 1396(k).
Sec. 302.15 [Amended]
5. In Sec. 302.15, paragraph (b) is removed and paragraphs (a),
introductory text, (a)(1) introductory text, (a)(1) (i) through (vii)
and (2) are redesignated as Sec. 302.15, introductory text, (a)
introductory text, (a)(1) through (7) and (b) respectively.
Sec. 302.33 [Amended]
6. In Sec. 302.33, paragraph (c)(1) is removed, paragraphs (c)(2)
and (c)(3) are redesignated as (c)(1) and (c)(2), and paragraph (e) is
removed.
Sec. 302.34 [Amended]
7. In Sec. 302.34, paragraph (b) is removed, paragraph (a) is
amended by removing the paragraph designation and the first sentence is
amended by adding ``under Sec. 303.107'' after ``cooperative
arrangements'' in the first sentence.
Sec. 302.36 [Amended]
8. In Sec. 302.36, paragraph (a) introductory text is amended by
removing ``for:'' and inserting a period
[[Page 67241]]
in its place at the end of the paragraph and removing paragraphs (a)(1)
through (a)(5).
Sec. 302.37 [Removed and Reserved]
9. Section 302.37 is removed and reserved.
10. In Sec. 302.54, paragraph (a) is removed, paragraphs (b) and
(c) are redesignated (a) and (b), respectively, the reference to
``Until September 30, 1995'' in newly designated paragraph (b)(1)(i) is
revised to read ``Until September 30, 1997'', and newly designated
paragraph (a)(2) is revised to read as follows:
Sec. 302.54 Notice of collection of assigned support.
* * * * *
(a) * * *
(2) The monthly notice must list separately payments collected from
each absent parent when more than one absent parent owes support to the
family and must indicate the amount of current support collected, the
amount of arrearages collected and the amount of support collected
which was paid to the family.
* * * * *
Sec. 302.80 [Amended]
11. Section 302.80 is amended by revising the reference to ``Part
306 of this chapter'' in paragraph (a) to read ``Secs. 303.30 and
303.31 of this chapter.''
Sec. 302.85 [Amended]
12. In section 302.85, reference to ``October 1, 1995'' in
paragraph (a)(2) is revised to read ``October 1, 1997.''
PART 303--STANDARDS FOR PROGRAM OPERATIONS
13. The authority citation for Part 303 continues to read as
follows:
Authority: 42 U.S.C. 651 through 658, 660, 663, 664, 666, 667,
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and 1396(k).
Sec. 303.10 [Removed and Reserved]
14. Section 303.10 is removed and reserved.
Sec. 303.31 [Amended]
15. In Sec. 303.31, reference to ``Sec. 306.50(a)'' is revised to
read ``Sec. 303.30(a)'' in paragraphs (b)(6) and (b)(7).
16. Section 303.73 is revised to read as follows:
Sec. 303.73 Applications to use the courts of the United States to
enforce court orders.
The IV-D agency may apply to the Secretary for permission to use a
United States district court to enforce a support order of a court of
competent jurisdiction against an absent parent who is present in
another State if the IV-D agency can furnish evidence in accordance
with instructions issued by the office.
Sec. 303.100 [Amended]
17. In Sec. 303.100, reference to ``October 1, 1995'' in paragraph
(g)(3) is revised to read ``October 1, 1997.''
PART 304--FEDERAL FINANCIAL PARTICIPATION
18. The authority citation for Part 304 continues to read as
follows:
Authority: 42 U.S.C. 651 through 655, 657, 1302, 1396a(a)(25),
1396b(d)(2), 1396b(o), 1396(p), and 1396(k).
Sec. 304.10 [Amended]
19. In Sec. 304.10, the parenthetical phrase ``(with the exception
of Subpart G, Matching and Cost Sharing and Subpart I, Financial
Reporting Requirements)'' is replaced with ``(with the exception of 45
CFR 74.23, Cost Sharing or Matching and 45 CFR 74.52, Financial
Reporting).''
Sec. 304.20 [Amended]
20. In Sec. 304.20, paragraph (b)(1)(iii) introductory text is
amended by replacing ``Subpart P, Procurement Standards, 45 CFR Part
74'' with ``in accordance with the Procurement Standards found in 45
CFR 74.40 et seq.'', paragraph (b)(1)(vi) is amended by revising
reference to ``Sec. 302.16 of this chapter'' to read ``Sec. 304.15'',
paragraph (b)(3)(iv) is amended by revising the term ``attachment'' to
read ``withholding;'', paragraph (b)(8) is amended by revising the
reference ``Sec. 302.2'' to read ``Sec. 303.2'' and, paragraph (b)(11)
is amended by revising ``Part 306, Subpart B, of this chapter'' with
``Secs. 303.30 and 303.31 of this chapter''.
Sec. 304.23 [Amended]
21. In Sec. 304.23, paragraph (g) is amended by replacing ``Part
306 of this chapter'' with ``Secs. 303.30 and 303.31 of this chapter''.
Sec. 304.95 [Removed and Reserved]
22. Section 304.95 is removed and reserved.
PART 306--OPTIONAL COOPERATIVE AGREEMENTS FOR MEDICAL SUPPORT
ENFORCEMENT [REMOVED AND RESERVED]
23. Part 306 is removed and reserved.
PART 307--COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS
24. The authority citation for part 307 continues to read as
follows:
Authority: 42 U.S.C. 652 through 658, 664, 666, 667, and 1302.
Sec. 307.5 [Amended]
25. In Sec. 307.5, reference to ``October 1, 1995'' in paragraph
(a) is revised to read ``October 1, 1997.''
Sec. 307.15 [Amended]
26. In Sec. 307.15, reference to ``October 1, 1995'' in paragraph
(b)(2) is revised to read ``October 1, 1997.''
[FR Doc. 96-32085 Filed 12-19-96; 8:45 am]
BILLING CODE 4184-01-P
