[Title 45 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2021 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          

                                  Title 45

                               Public Welfare

                           _______________________

                            Parts 200 to 499

                         Revised as of October 1, 2021

          Containing a codification of documents of general 
          applicability and future effect

          As of October 1, 2021
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 45:
    SUBTITLE B--Regulations Relating to Public Welfare
          Chapter I [Reserved]
          Chapter II--Office of Family Assistance (Assistance 
          Programs), Administration for Children and Families, 
          Department of Health and Human Services                    5
          Chapter III--Office of Child Support Enforcement 
          (Child Support Enforcement Program), Administration 
          for Children and Families, Department of Health and 
          Human Services                                           223
          Chapter IV--Office of Refugee Resettlement, 
          Administration for Children and Families, Department 
          of Health and Human Services                             347
  Finding Aids:
      Table of CFR Titles and Chapters........................     433
      Alphabetical List of Agencies Appearing in the CFR......     453
      List of CFR Sections Affected...........................     463

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                     ----------------------------

                     Cite this Code: CFR
                      To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 45 CFR 200.1 refers 
                       to title 45, part 200, 
                       section 1.

                     ----------------------------

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 2021), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
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instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
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PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
the revision date stated on the cover of each volume are not carried. 
Code users may find the text of provisions in effect on any given date 
in the past by using the appropriate List of CFR Sections Affected 
(LSA). For the convenience of the reader, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume. For changes to 
the Code prior to the LSA listings at the end of the volume, consult 
previous annual editions of the LSA. For changes to the Code prior to 
2001, consult the List of CFR Sections Affected compilations, published 
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not dropped in error.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
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alphabetical list of agencies publishing in the CFR are also included in 
this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.

[[Page vii]]

    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

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in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
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    For inquiries concerning CFR reference assistance, call 202-741-6000 
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Connect to NARA's website at www.archives.gov/federal-register.
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of the Federal Register and the Government Publishing Office. It is 
available at www.ecfr.gov.

    Oliver A. Potts,
    Director,
    Office of the Federal Register
    October 1, 2021







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                               THIS TITLE

    Title 45--Public Welfare is composed of five volumes. The parts in 
these volumes are arranged in the following order: Parts 1-139, 140-199, 
200-499, 500-1199, and 1200 to end. Volumes one and two (parts 1-139 and 
parts 140-199) contain all current regulations issued under subtitle A--
Department of Health and Human Services. Volume three (parts 200-499) 
contains all current regulations issued under subtitle B--Regulations 
Relating to Public Welfare, chapter II--Office of Family Assistance 
(Assistance Programs), Administration for Children and Families, 
Department of Health and Human Services, chapter III--Office of Child 
Support Enforcement (Child Support Enforcement Program), Administration 
for Children and Families, Department of Health and Human Services, and 
chapter IV--Office of Refugee Resettlement, Administration for Children 
and Families, Department of Health and Human Services. Volume four 
(parts 500-1199) contains all current regulations issued under chapter 
V--Foreign Claims Settlement Commission of the United States, Department 
of Justice, chapter VI--National Science Foundation, chapter VII--
Commission on Civil Rights, chapter VIII--Office of Personnel 
Management, chapter IX--Denali Commission, chapter X--Office of 
Community Services, Administration for Children and Families, Department 
of Health and Human Services, and chapter XI--National Foundation on the 
Arts and the Humanities. Volume five (part 1200 to end) contains all 
current regulations issued under chapter XII--Corporation for National 
and Community Service, chapter XIII--Administration for Children and 
Families, Department of Health and Human Services, chapter XVI--Legal 
Services Corporation, chapter XVII--National Commission on Libraries and 
Information Science, chapter XVIII--Harry S. Truman Scholarship 
Foundation, chapter XXI--Commission of Fine Arts, chapter XXIII--Arctic 
Research Commission, chapter XXIV--James Madison Memorial Fellowship 
Foundation, and chapter XXV--Corporation for National and Community 
Service. The contents of these volumes represent all of the current 
regulations codified under this title of the CFR as of October 1, 2021.

    For this volume, Ann Worley was Chief Editor. The Code of Federal 
Regulations publication program is under the direction of John Hyrum 
Martinez, assisted by Stephen J. Frattini.

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                        TITLE 45--PUBLIC WELFARE




                  (This book contains parts 200 to 499)

  --------------------------------------------------------------------

           SUBTITLE B--Regulations Relating to Public Welfare 

                                                                    Part
chapter i [Reserved]

chapter ii--Office of Family Assistance (Assistance 
  Programs), Administration for Children and Families, 
  Department of Health and Human Services...................         200

chapter iii--Office of Child Support Enforcement (Child 
  Support Enforcement Program), Administration for Children 
  and Families, Department of Health and Human Services.....         300

chapter iv--Office of Refugee Resettlement, Administration 
  for Children and Families, Department of Health and Human 
  Services..................................................         400

[[Page 3]]

           Subtitle B--Regulations Relating to Public Welfare



                          CHAPTER I [RESERVED]




[[Page 5]]



     CHAPTER II--OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), 
ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN 
                                SERVICES




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter II appear at 66 FR 
39452, July 31, 2001.
Part                                                                Page
200             Review of regulations (Eff. 3-22-22)........           7
201             Grants to States for public assistance 
                    programs................................           9
204             General administration--State plans and 
                    grant appeals...........................          20
205             General administration--public assistance 
                    programs................................          22
206             Application, determination of eligibility 
                    and furnishing assistance--public 
                    assistance programs.....................          42
211             Care and treatment of mentally ill nationals 
                    of the United States, returned from 
                    foreign countries.......................          45
212             Assistance for United States citizens 
                    returned from foreign countries.........          49
213             Practice and procedure for hearings to 
                    States on conformity of public 
                    assistance plans to Federal requirements          52
225             Training and use of subprofessionals and 
                    volunteers..............................          57
233             Coverage and conditions of eligibility in 
                    financial assistance programs...........          59
234             Financial assistance to individuals.........         105
235             Administration of financial assistance 
                    programs................................         114
237             Fiscal administration of financial 
                    assistance programs.....................         118
260             General temporary assistance for needy 
                    families (TANF) provisions..............         119
261             Ensuring that recipients work...............         131
262             Accountability provisions--general..........         149
263             Expenditures of State and Federal TANF funds         154
264             Other accountability provisions.............         160

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265             Data collection and reporting requirements..         168
270             High performance bonus awards...............         174
282            [Reserved]

283             Implementation of section 403(A)(2) of the 
                    Social Security Act bonus to reward 
                    decrease in illegitimacy ratio..........         181
284             Methodology for determining whether an 
                    increase in a State or territory's child 
                    poverty rate is the result of the TANF 
                    Program.................................         185
285            [Reserved]

286             Tribal TANF provisions......................         189
287             The Native Employment Works (NEW) Program...         214
288-299        [Reserved]

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PART 200_REVIEW OF REGULATIONS (Eff. 3-22-22)--Table of Contents



Sec.
200.1 Retrospective review of existing regulations.
200.2-200.5 [Reserved]

    Authority: 5 U.S.C. 301; 5 U.S.C. 610; 24 U.S.C. 321-329; 31 U.S.C. 
7501 et seq.; 42 U.S.C. 301; 42 U.S.C. 303; 42 U.S.C. 601; 42 U.S.C. 601 
note; 42 U.S.C. 602; 42 U.S.C. 602 (note); 42 U.S.C. 602(a)(44); 42 
U.S.C. 603; 42 U.S.C. 603(a)(4); 42 U.S.C. 604; 42 U.S.C. 605; 42 U.S.C. 
606; 42 U.S.C. 607; 42 U.S.C. 608; 42 U.S.C. 609; 42 U.S.C. 610; 42 
U.S.C. 611; 42 U.S.C. 612; 42 U.S.C. 613; 42 U.S.C. 613(i); 42 U.S.C. 
616; 42 U.S.C. 619; 42 U.S.C. 654; 42 U.S.C. 862a; 42 U.S.C. 1202; 42 
U.S.C. 1203; 42 U.S.C. 1301; 42 U.S.C. 1302; 42 U.S.C. 1306(a); 42 
U.S.C. 1308; 42 U.S.C. 1313; 42 U.S.C. 1316; 1320b-7: 42 U.S.C. 1973gg-
5; 42 U.S.C. 1337; 42 U.S.C. 1352; 42 U.S.C. 1353; 42 U.S.C. 1382 
(note); 42 U.S.C. 1383 (note); sections 1, 5, 6, and 7 of Reorganization 
Plan No. 1 of 1953, 67 Stat. 631; Secs. 1-11, 74 Stat. 308-310; Sec. 
302, 75 Stat. 142, sec. 1102, 49 Stat. 647; sec. 6 of Pub. L. 94-114, 89 
Stat. 579; Pub. L. No. 97-248, 96 Stat. 324, and Pub. L. No. 99-603, 100 
Stat. 3359; sec. 4 of Pub. L. 97-458, 96 Stat. 2513; sec. 2 of Pub. L. 
98-64, 97 Stat. 365; sec. 1883 of Pub. L. 99-514, 100 Stat. 2916; sec. 
15 of Pub. L. 100-241, 101 Stat. 1812; sec. 105(f) of Pub. L. 100-383, 
102 Stat. 908; sec. 206(d) of Pub. L. 100-383, 102 Stat. 914; sec. 
105(i) of Pub. L. 100-707, 102 Stat. 4693; sec. 1(a) of Pub. L. 101-201, 
103 Stat. 1795; sec. 10405 of Pub. L. 101-239, 103 Stat. 2489; sec. 
501(c) of Pub. L. 101-392, 104 Stat. 831; sec. 6(h)(2) of Pub. L. 101-
426, 104 Stat. 925; and sec. 471(a) of Pub. L. 102-325, 106 Stat. 606; 
Sec. 7102, Pub. L. 109-171, 120 Stat. 135; Public Law 111-5; Sec. 4004, 
Pub. L. 112-96, 126 Stat. 197; 49 Stat. 647.

    Source: 86 FR 5758, Jan. 19, 2021, unless otherwise noted.

    Effective Date Note: At 86 FR 5758, Jan. 19, 2021, part 200 was 
added, and at 86 FR 15404, Mar. 23, 2021, its effective date was delayed 
until Mar. 22, 2022.



Sec.200.1  Retrospective review of existing regulations.

    (a) This section applies to and shall be deemed to amend all 
regulations issued by the Secretary or his delegates or sub-delegates in 
this chapter.
    (b) For purposes of this section,
    (1) Assess shall refer to a determination by the Department, in 
consultation with other Federal agencies as appropriate, as to whether 
the Sections issued as part of the same rulemaking (and any amendments 
or additions that may have been added thereafter) currently have a 
significant economic impact upon a substantial number of small entities.
    (2) Review shall refer to a process conducted by the Department, in 
consultation with other Federal agencies as appropriate, the purpose of 
which shall be to determine whether Sections that were issued as part of 
the same rulemaking (and any amendments or additions that may have been 
issued thereafter) should be continued without change, or should be 
amended or rescinded, consistent with the stated objectives of 
applicable statutes, to minimize any significant economic impact of the 
Sections upon a substantial number of small entities.
    (3) Section (when capitalized) shall mean a section of the Code of 
Federal Regulations. For example, 42 CFR 2.13 is a Section, and 42 CFR 
2.14 is another Section (see 1 CFR 21.11).
    (4) Year of the Section's promulgation shall mean the year the 
Section first became effective, irrespective of whether it was 
subsequently amended.
    (5) Significant economic impact upon a substantial number of small 
entities shall have the meaning of that term in section 610 of title 5 
of the United States Code.
    (c)(1) Unless a Section expires earlier or is rescinded, all 
Sections issued by the Secretary or his delegates or sub-delegates in 
this chapter shall expire at the end of:
    (i) Five calendar years after the year that this section first 
becomes effective;
    (ii) Ten calendar years after the year of the Section's 
promulgation; or
    (iii) Ten calendar years after the last year in which the Department 
assessed and (if review of the Section is required pursuant to paragraph 
(d) of this section) reviewed the Section, whichever is latest.
    (2) The last year in which the Department assessed and (if review of 
the Section is required) reviewed the Section shall be the year during 
which the findings of the assessment and (if required) the review of a 
Section are published in the Federal Register pursuant to paragraph (f) 
of this section.
    (3)(i) If, prior to the expiration of a Section under paragraph 
(c)(1) of this section, the Secretary makes a written

[[Page 8]]

determination that the public interest requires continuation of the 
Section in force beyond the date on which the Section would otherwise 
expire under paragraph (c)(1), the Secretary may continue the Section in 
force one time for a period stated in the determination, which shall not 
exceed one calendar year.
    (ii) The Department shall promptly publish in the Federal Register 
any written determination under paragraph (c)(3)(i) of this section.
    (iii) The authority of the Secretary under paragraph (c)(3)(i) of 
this section is not delegable and may be exercised only by the Secretary 
or, when the office of the Secretary is vacant or the Secretary has 
become unable to perform the functions and duties of the office of the 
Secretary, by the individual acting as Secretary in accordance with the 
law.
    (d) The Department is required to review those rulemakings (and any 
amendments or additions that may have been added thereafter) that the 
Department assesses have a significant economic impact upon a 
substantial number of small entities. In reviewing rulemakings to 
minimize any significant economic impact on a substantial number of 
small entities in a manner consistent with the stated objectives of 
applicable statutes, the Department's review shall consider the 
following factors:
    (1) The continued need for the rulemaking, consideration of which 
shall include but not be limited to the extent to which the rulemaking 
defines terms or sets standards used in or otherwise applicable to other 
Federal rules;
    (2) The nature of complaints or comments received concerning the 
rulemaking from the public;
    (3) The complexity of the rulemaking;
    (4) The extent to which the rulemaking overlaps, duplicates or 
conflicts with other Federal rules, and, to the extent feasible, with 
State and local governmental rules;
    (5) The degree to which technology, economic conditions, or other 
factors have changed in the area affected by the rulemaking since the 
rulemaking was promulgated or the last time the rulemaking was reviewed 
by the Department; and
    (6) Whether the rulemaking complies with applicable law.
    (e) If the review concludes the Section should be amended or 
rescinded, the Department shall have two years from the date that the 
findings of the review are published in the Federal Register pursuant to 
paragraph (f) of this section to amend or rescind the Section. If the 
Secretary determines that completion of the amendment or rescission is 
not feasible by the established date, he shall so certify in a statement 
published in the Federal Register and may extend the completion date by 
one year at a time, no more than three times, for a total of not more 
than five years (inclusive of the initial two-year period).
    (f) The results of all assessments and reviews conducted in a 
calendar year, including the full underlying analyses and data used to 
support the results (subject to any applicable privilege, protections 
for confidential business information, or explicit legal prohibition on 
disclosure), shall be published in a single document in the Federal 
Register during that calendar year. The document shall be organized in a 
manner that enables both the Department and the public to readily 
determine which assessments and reviews were conducted during that 
calendar year. The document shall also specify the year by which the 
next assessment (and, if required, the next review) of the Section shall 
be completed.
    (g) Paragraph (c) of this section shall not apply to:
    (1) Sections that are prescribed by Federal law, such that the 
Department exercises no discretion as to whether to promulgate the 
Section and as to what is prescribed by the Section. For Sections 
described in this paragraph (g)(1) that are adopted after the effective 
date of this section, the Federal law described in this paragraph (g)(1) 
shall be cited in the notice of adoption.
    (2) Sections whose expiration pursuant to this section would violate 
any other Federal law.
    (3) This section.
    (4) Sections that involve a military or foreign affairs function of 
the United States.

[[Page 9]]

    (5) Sections addressed solely to internal agency management or 
personnel matters.
    (6) Sections related solely to Federal Government procurement.
    (7) Sections that were issued jointly with other Federal agencies, 
or that were issued in consultation with other agencies because of a 
legal requirement to consult with that other agency.
    (h) When the Department commences the process of performing an 
assessment or review, it shall state on a Department-managed website the 
Section(s) whose assessment or review it is commencing. It shall also 
announce once a month in the Federal Register those new assessments or 
reviews that it has commenced in the last month. The Department will 
create a docket on Regulations.gov for each assessment or review that 
the Department is conducting.The public will be able to submit comments 
to the dockets of each rulemaking being assessed or reviewed. Each 
docket shall specify the date by which comments must be received. There 
shall also be a general docket on Regulations.gov where the public can 
submit comments requesting that the Department assess or review a 
Section.
    (i) Any provision of this section held to be invalid or 
unenforceable by its terms, or as applied to any person or circumstance, 
shall be construed so as to continue to give the maximum effect to the 
provision permitted by law, unless such holding shall be one of utter 
invalidity or unenforceability, in which event the provision shall be 
severable from this section and shall not affect the remainder thereof 
or the application of the provision to persons not similarly situated or 
to dissimilar circumstances.



Sec. Sec.200.2-200.5  [Reserved]



PART 201_GRANTS TO STATES FOR PUBLIC ASSISTANCE PROGRAMS--
Table of Contents



Sec.
201.0 Scope and applicability.
201.1 General definitions.

      Subpart A_Approval of State Plans and Certification of Grants

201.2 General.
201.3 Approval of State plans and amendments.
201.4 Administrative review of certain administrative decisions.
201.5 Grants.
201.6 Withholding of payment; reduction of Federal financial 
          participation in the costs of social services and training.
201.7 Judicial review.

                       Subpart B_Review and Audits

201.10 Review of State and local administration.
201.11 Personnel merit system review.
201.12 Public assistance audits.
201.13 Action on audit and review findings.
201.14 Reconsideration under section 1116(d) of the Act.
201.15 Deferral of claims for Federal financial participation.
201.66 Repayment of Federal funds by installments.
201.67 Treatment of uncashed or cancelled checks.
201.70 Treatment of replacement checks.

    Authority: 42 U.S.C. 303, 603, 1203, 1301, 1302, 1316, 1353 and 1383 
(note).

    Source: 35 FR 12180, July 29, 1970, unless otherwise noted.



Sec.201.0  Scope and applicability.

    Titles I, X, XIV and XVI (as in effect without regard to section 301 
of the Social Security Amendments of 1972) shall continue to apply to 
Puerto Rico, the Virgin Islands, and Guam. The term State as used in 
such titles means Puerto Rico, the Virgin Islands, and Guam.

[39 FR 8326, Mar. 5, 1974]



Sec.201.1  General definitions.

    When used in this chapter, unless the context otherwise indicates:
    (a) Act means the Social Security Act, and titles referred to are 
titles of that Act;
    (b) Department means the Department of Health and Human Services;
    (c) Administrator means the Administrator, Family Support 
Administration;
    (d) Secretary means the Secretary of Health and Human Services;
    (e) Administration means the Family Support Administration;
    (f) Regional Administrator means the Regional Administrator of the 
Family Support Administration;

[[Page 10]]

    (g) State means the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American 
Samoa. The term ``State'' with respect to American Samoa applies to the 
programs set forth in title IV-A and IV-F of the Act;
    (h) State agency means the State agency administering or supervising 
the administration of the State plan or plans under title I, IV-A, IV-F, 
X, or XVI (AABD) of the Act;
    (i) The terms regional office and central office refer to the 
regional offices and the central office of the Family Support 
Administration, respectively.

[35 FR 12180, July 29, 1970, as amended at 39 FR 34543, Sept. 26, 1974; 
53 FR 36578, Sept. 21, 1988; 57 FR 30425, July 9, 1992]



      Subpart A_Approval of State Plans and Certification of Grants



Sec.201.2  General.

    The State plan is a comprehensive statement submitted by the State 
agency describing the nature and scope of its program and giving 
assurance that it will be administered in conformity with the specific 
requirements stipulated in the pertinent title of the Act, the 
regulations in subtitle A and this chapter of this title, and other 
applicable official issuances of the Department. The State plan contains 
all information necessary for the Administration to determine whether 
the plan can be approved, as a basis for Federal financial participation 
in the State program.

[35 FR 12180, July 29, 1970, as amended at 53 FR 36578, Sept. 21, 1988]



Sec.201.3  Approval of State plans and amendments.

    The State plan consists of written documents furnished by the State 
to cover each of its programs under the Act: Old-age assistance (title 
I); aid and services to needy families with children (part A of title 
IV); aid to the blind (title X); aid to the permanently and totally 
disabled (title XIV); or aid to the aged, blind or disabled (title XVI). 
The State may submit the common material on more than one program as an 
integrated plan. However, it must identify the provisions pertinent to 
each title since a separate plan must be approved for each public 
assistance title. A plan submitted under title XVI encompasses, under a 
single plan, the programs otherwise covered by three separate plans 
under titles I, X, and XIV. After approval of the original plan by the 
Administration, all relevant changes, required by new statutes, rules, 
regulations, interpretations, and court decisions, are required to be 
submitted currently so that the Administration may determine whether the 
plan continues to meet Federal requirements and policies.
    (a) Submittal. State plans and revisions of the plans are submitted 
first to the State governor or his designee for review in accordance 
with Sec.204.1 of this chapter, and then to the regional office. The 
States are encouraged to obtain consultation of the regional staff when 
a plan is in process of preparation or revision.
    (b) Review. Staff in the regional offices are responsible for review 
of State plans and amendments. They also initiate discussion with the 
State agency on clarification of significant aspects of the plan which 
come to their attention in the course of this review. State plan 
material on which the regional staff has questions concerning the 
application of Federal policy is referred with recommendations as 
required to the central office for technical assistance. Comments and 
suggestions, including those of consultants in specified areas, may be 
prepared by the central office for use by the regional staff in 
negotiations with the State agency.
    (c) Action. The Regional Administrator, exercised delegated 
authority to take affirmative action on State plans and amendments 
thereto on the basis of policy statements or precedents previously 
approved by the Administrator. The Administrator retains authority for 
determining that proposed plan material is not approvable, or that a 
previously approved plan no longer meets the requirements for approval, 
except that a final determination of disapproval may not be made without 
prior consultation and discussion by the Administrator with the 
Secretary. The Regional Administrator, or the Administrator formally

[[Page 11]]

notifies the State agency of the actions taken on State plans or 
revisions.
    (d) Basis for approval. Determinations as to whether State plans 
(including plan amendments and administrative practice under the plans) 
originally meet or continue to meet, the requirements for approval are 
based on relevant Federal statutes and regulations. Guidelines are 
furnished to assist in the interpretation of the regulations.
    (e) Prompt approval of State plans. Pursuant to section 1116 of the 
Act, the determination as to whether a State plan submitted for approval 
conforms to the requirements for approval under the Act and regulations 
issued pursuant thereto shall be made promptly and not later than the 
90th day following the date on which the plan submittal is received in 
the regional office, unless the Regional Administrator, has secured from 
the State agency a written agreement to extend that period.
    (f) Prompt approval of plan amendments. Any amendment of an approved 
State plan may, at the option of the State, be considered as a 
submission of a new State plan. If the State requests that such 
amendment be so considered the determination as to its conformity with 
the requirements for approval shall be made promptly and not later than 
the 90th day following the date on which such a request is received in 
the regional office with respect to an amendment that has been received 
in such office, unless the Regional Administrator, has secured from the 
State agency a written agreement to extend that period. In absence of 
request by a State that an amendment of an approved State plan shall be 
considered as a submission of a new State plan, the procedures under 
Sec.201.6 (a) and (b) shall be applicable.
    (g) Effective date. The effective date of a new plan may not be 
earlier than the first day of the calendar quarter in which an 
approvable plan is submitted, and with respect to expenditures for 
assistance under such plan, may not be earlier than the first day on 
which the plan is in operation on a statewide basis. The same applies 
with respect to plan amendments that provide additional assistance or 
services to persons eligible under the approved plan or that make new 
groups eligible for assistance or services provided under the approved 
plan. For other plan amendments the effective date shall be as specified 
in other sections of this chapter.

[35 FR 12180, July 29, 1970, as amended at 39 FR 34542, Sept. 26, 1974; 
42 FR 43977, Sept. 1, 1977; 53 FR 36579, Sept. 21, 1988]



Sec.201.4  Administrative review of certain administrative decisions.

    Pursuant to section 1116 of the Act, any State dissatisfied with a 
determination of the Administrator pursuant to Sec.201.3 (e) or (f) 
with respect to any plan or amendment may, within 60 days after the date 
of receipt of notification of such determination, file a petition with 
the Regional Administrator, asking the Administrator for reconsideration 
of the issue of whether such plan or amendment conforms to the 
requirements for approval under the Act and pertinent Federal 
requirements. Within 30 days after receipt of such a petition, the 
Administrator shall notify the State of the time and place at which the 
hearing for the purpose of reconsidering such issue will be held. Such 
hearing shall be held not less than 30 days nor more than 60 days after 
the date notice of such hearing is furnished to the State, unless the 
Administrator and the State agree in writing on another time. For 
hearing procedures, see part 213 of this chapter. A determination 
affirming, modifying, or reversing the Administrator's original decision 
will be made within 60 days of the conclusion of the hearing. Action 
pursuant to an initial determination by the Administrator described in 
such Sec.201.3 (e) or (f) that a plan or amendment is not approvable 
shall not be stayed pending the reconsideration, but in the event that 
the Administrator subsequently determines that his original decision was 
incorrect he shall certify restitution forthwith in a lump sum of any 
funds incorrectly withheld or otherwise denied.

[35 FR 12180, July 29, 1970, as amended at 42 FR 43977, Sept. 1, 1977; 
53 FR 36579, Sept. 21, 1988]

[[Page 12]]



Sec.201.5  Grants.

    To States with approved plans, grants are made each quarter for 
expenditures under the plan for assistance, services, training and 
administration. The determination as to the amount of a grant to be made 
to a State is based upon documents submitted by the State agency 
containing information required under the Act and such other pertinent 
facts, including title IV-A the appropriate Federal share of child 
support collections made by the State, as may be found necessary.
    (a) Form and manner of submittal. (1) Time and place: The estimates 
for public assistance grants for each quarterly period must be forwarded 
to the regional office 45 days prior to the period of the estimate. They 
include a certification of State funds available and a justification 
statement in support of the estimates. A statement of quarterly 
expenditures and any necessary supporting schedules must be forwarded to 
the Department of Health and Human Services, Family Support 
Administration, not later than 30 days after the end of the quarter.
    (2) Description of forms: ``State Agency Expenditure Projection--
Quarterly Projection by Program'' represents the State agency's estimate 
of the total amount and the Federal share of expenditures for 
assistance, services, training, and administration to be made during the 
quarter for each of the public assistance programs under the Act. From 
these estimates the State and Federal shares of the total expenditures 
are computed. The State's computed share of total estimated expenditures 
is the amount of State and local funds necessary for the quarter. The 
Federal share is the basis for the funds to be advanced for the quarter. 
The State agency must also certify, on this form or otherwise, the 
amount of State funds (exclusive of any balance of advances received 
from the Federal Government) actually on hand and available for 
expenditure; this certification must be signed by the executive officer 
of the State agency submitting the estimate or a person officially 
designated by him, or by a fiscal officer of the State if required by 
State law or regulation. (A form ``Certificate of Availability of State 
Funds for Assistance and Administration during Quarter'' is available 
for submitting this information, but its use is optional.) If the amount 
of State funds (or State and local funds if localities participate in 
the program), shown as available for expenditures is not sufficient to 
cover the State's proportionate share of the amount estimated to be 
expended, the certification must contain a statement showing the source 
from which the amount of the deficiency is expected to be derived and 
the time when this amount is expected to be made available.
    (3) The State agency must also submit a quarterly statement of 
expenditures for each of the public assistance programs under the Act. 
This is an accounting statement of the disposition of the Federal funds 
granted for past periods and provides the basis for making the 
adjustments necessary when the State's estimate for any prior quarter 
was greater or less than the amount the State actually expended in that 
quarter. The statement of expenditures also shows the share of the 
Federal Government in any recoupment, from whatever source, including 
for title IV-A the appropriate share of child support collections made 
by the State, of expenditures claimed in a prior period, and also in 
expenditures not properly subject to Federal financial participation 
which are acknowledged by the State agency, including the share of the 
Federal Government for uncashed and cancelled checks as described at 45 
CFR 201.67 and replacement checks as described at 45 CFR 201.70 in this 
part, or which have been revealed in the course of an audit.
    (b) Review. The State's estimates are analyzed by the regional 
office staff and are forwarded with recommendations as required to the 
central office. The central office reviews the State's estimate, other 
relevant information, and any adjustments to be made for prior periods, 
and computes the grant.
    (c) Grant award. The grant award computation form shows, by program, 
the amount of the estimate for the ensuing quarter, and the amounts by 
which the estimate is reduced or increased because of over- or under-
estimate for the prior quarter and for

[[Page 13]]

other adjustments. This form is transmitted to the State agency to draw 
the amount of the grant award, as needed, to meet the Federal share of 
disbursements. The draw is through a commercial bank and the Federal 
Reserve system against a continuing letter of credit certified to the 
Secretary of the Treasury in favor of the State payee. A copy of the 
grant award notice is sent to the State Central Information Reception 
Agency in accord with section 201 of the Intergovernmental Cooperation 
Act of 1968.
    (d) Letter of credit payment system. The letter of credit system for 
payment of advances of Federal funds was established pursuant to 
Treasury Department regulations (Circular No. 1075), published in the 
Federal Register on July 11, 1967 (32 FR 10201). The HEW ``Instructions 
to Recipient Organizations for Use of Letter of Credit'' was transmitted 
to all grantees by memorandum from the Assistant Secretary-Comptroller 
on January 15, 1968.
    (e) General administrative requirements. With the following 
exceptions, the provisions of part 74 of this title, establishing 
uniform administrative requirements and cost principles, shall apply to 
all grants made to States under this part:

                             45 CFR part 74

Subpart G--Matching and Cost Sharing.
Subpart I--Financial Reporting Requirements.

[35 FR 12180, July 29, 1970, as amended at 38 FR 26320, Sept. 19, 1973; 
46 FR 48003, Sept. 30, 1981; 53 FR 24269, June 28, 1988; 53 FR 36579, 
Sept. 21, 1988]



Sec.201.6  Withholding of payment; reduction of Federal financial
participation in the costs of social services and training.

    (a) When withheld. Further payments to a State are withheld in whole 
or in part if the Administrator, after reasonable notice and opportunity 
for hearing to the State agency administering or supervising the 
administration of an approved plan, finds:
    (1) That the plan no longer complies with the provisions of section 
2, 402, 1002, 1402, or 1602 of the Act; or
    (2) That in the administration of the plan there is failure to 
comply substantially with any such provision.
    A question of noncompliance of a State plan may arise from an 
unapprovable change in the approved State plan, the failure of the State 
to change its approved plan to conform to a new Federal requirement for 
approval of State plans, or the failure of the State in practice to 
comply with a Federal requirement, whether or not its State plan has 
been amended to conform to such requirement.
    (b) When the rate of Federal financial participation is reduced. 
Under title I, X, XIV, or XVI (AABD) of the Act, Federal financial 
participation in the costs of social services and training approved at 
the rate of 75 per centum is reduced to 50 per centum if the 
Administrator, after reasonable notice and opportunity for a hearing to 
the State agency, finds:
    (1) That the plan provision under such title for prescribed services 
no longer complies with the Federal requirements with respect to such 
prescribed services; or
    (2) That in the administration of the plan there is a failure to 
comply substantially with such plan provision.
    (c) Information discussions. Hearings with respect to matters under 
paragraph (a) or (b) of this section are generally not called, however, 
until after reasonable effort has been made by the Administration to 
resolve the questions involved by conference and discussion with State 
officials. Formal notification of the date and place of hearing does not 
foreclose further negotiations with State officials.
    (d) Conduct of hearings. For hearing procedures, see part 213 of 
this chapter.
    (e) Notification of withholding. If the Administrator makes a 
finding of noncompliance with respect to a matter under paragraph (a) of 
this section, the State agency is notified that further payments will 
not be made to the State (or, in his discretion, that payments will be 
limited to categories under or parts of the plan not affected by such 
failure), until the Administrator is satisfied that there will no longer 
be any such failure to comply. Until he is so satisfied, no further 
payments will be made to the State (or will be limited to categories 
under or parts of the plan not affected by such failure).

[[Page 14]]

    (f) Notification of reduction in the rate of Federal financial 
participation. If the Administrator makes a finding of noncompliance 
with respect to a matter under paragraph (b) of this section, the State 
agency is notified that further payments will be made to the State at 
the rate of 50 per centum of the costs of services and training, until 
the Administrator is satisfied that there will no longer be any failure 
to comply.

[35 FR 12180, July 29, 1970, as amended at 39 FR 34542, Sept. 26, 1974; 
53 FR 36579, Sept. 21, 1988]



Sec.201.7  Judicial review.

    Any State dissatisfied with a final determination of the Secretary 
pursuant to Sec.201.4 or Sec.201.6(a) may, within 60 days after it 
has been notified of such determination, file with the U.S. Court of 
Appeals for the circuit in which such State is located a petition for 
review of such determination. After a copy of the petition is 
transmitted by the clerk of the court to the Secretary, the Secretary 
thereupon shall file in the court the record of proceedings upon which 
such determination was based as provided in section 2112 of title 28, 
United States Code. The court is bound by the Secretary's findings of 
fact, if supported by substantial evidence. The court has jurisdiction 
to affirm the Secretary's decision, or set it aside in whole or in part, 
or, for good cause, to remand the case for additional evidence. If the 
case is remanded, the Secretary may thereupon make new or modified 
findings of fact, and may modify his previous determination. The 
Secretary shall certify to the court the transcript and record of the 
further proceedings. The judgment of the court is subject to review by 
the Supreme Court of the United States upon certiorari or certification 
as provided in 28 U.S.C. 1254.



                       Subpart B_Review and Audits



Sec.201.10  Review of State and local administration.

    (a) In order to provide a basis for determining that State agencies 
are adhering to Federal requirements and to the substantive legal and 
administrative provisions of their approved plans, the Administration 
conducts a review of State and local public assistance administration. 
This review includes analysis of procedures and policies of State and 
local agencies and examination of case records of individual recipients.
    (b) Each State agency is required to carry out a continuing quality 
control program primarily covering determination of eligibility in 
statistically selected samples of individual cases. The Service conducts 
a continuing observation of these State systems.
    (c) Adherence to other Federal requirements set forth in the 
pertinent titles of the Act and the regulations in this title is 
evaluated through review of selected case records and aspects of agency 
operations.

[35 FR 12180, July 29, 1970, as amended at 53 FR 36579, Sept. 21, 1988]



Sec.201.11  Personnel merit system review.

    A personnel merit system review is carried out by the Office of 
State Merit Systems of the Office of the Assistant Secretary for 
Administration of the Department. The purpose of the review is to 
evaluate the effectiveness of the State merit system relating to the 
public assistance programs and to determine whether there is compliance 
with Federal requirements in the administration of the merit system 
plan. See part 70 of this title.



Sec.201.12  Public assistance audits.

    (a) Annually, or at such frequencies as are considered necessary and 
appropriate, the operations of the State agency are audited by 
representatives of the Audit Agency of the Department. Such audits are 
made to determine whether the State agency is being operated in a manner 
that:
    (1) Encourages prudent use of program funds, and
    (2) Provides a reasonable degree of assurance that funds are being 
properly expended, and for the purposes for which appropriated and 
provided for under the related Act and State plan, including State laws 
and regulations.
    (b) Reports of these audits are released by the Audit Agency 
simultaneously to program officials of the Department, and to the 
cognizant State officials. These audit reports relate the

[[Page 15]]

opinion of the Audit Agency on the practices reviewed and the 
allowability of costs audited at the State agency. Final determinations 
as to actions required on all matters reported are made by cognizant 
officials of the Department.



Sec.201.13  Action on audit and review findings.

    (a) If the audit results in no exceptions, the State agency is 
advised by letter of this result. The general course for the disposition 
of proposed exceptions resulting from audits involves the submittal of 
details of these exceptions to the State agency which then has an 
opportunity to concur in the proposed exceptions or to assemble and 
submit additional facts for purposes of clearance. Provision is made for 
the State agency to appeal proposed audit exceptions in which it has not 
concurred and which have not been deleted on the basis of clearance 
material. After consideration of a State agency's appeal by the 
Administrator, the Administration advises the State agency of any 
expenditures in which the Federal Government may not participate and 
requests it to include the amount as adjustments in a subsequent 
statement of expenditures. Expenditures in which it is found the Federal 
Government may not participate and which are not properly adjusted 
through the State's claim will be deducted from subsequent grants made 
to the State agency.
    (b) If the Federal or State reviews reveal serious problems with 
respect to compliance with any Federal requirement, the State agency is 
required to correct its practice so that there will be no recurrence of 
the problem in the future.

[35 FR 12180, July 29, 1970, as amended at 53 FR 36579, Sept. 21, 1988]



Sec.201.14  Reconsideration under section 1116(d) of the Act.

    (a) Applicability. This section applies to any disallowance of any 
item or class of items for which FFP is claimed under title I, IV, X, 
XIV, XVI(AABD), or XX of the Act, with respect to which reconsideration 
was requested prior to March 6, 1978, unless the State by filing a 
written notice to that effect with the Executive Secretary, Departmental 
Grant Appeals Board (with proof of service on the head of the 
constituent agency), within 30 days after mailing of the confirmation of 
the disallowance by the agency head, elects to have the reconsideration 
governed by 45 CFR part 16.
    (1) Reduction of the Federal share of assistance payments under 
title IV-A, for failure to certify WIN registrants (section 402(e) of 
the Act);
    (2) Reduction by one per centum of the quarterly amount payable to a 
State for all expenditures under title IV-A for failure, in certain 
cases, to carry out the provisions of section 402(a)(15) of the Act 
which require the offering of and arrangement for the provision of 
family planning services (section 402(f) of the Act);
    (3)-(5) [Reserved]
    (6) Any other decision pursuant to sections 3, 403, 422, 455, 1003, 
1403, 1603, or 2003, of the Act.
    (b) Notice of disallowance determination. (1) When the Regional 
Administrator, determines that a State claim for FFP in expenditures for 
a particular item or class of items is not allowable, he shall promptly 
issue a disallowance letter to the State.
    (2) This disallowance letter shall include where appropriate:
    (i) The date or dates on which the State's claim for FFP was made;
    (ii) The time period during which the expenditures in question were 
made or claimed to have been made;
    (iii) The date and amount of any payment or notice of deferral;
    (iv) A statement of the amount of FFP claimed, allowed, and 
disallowed and the manner in which these amounts were calculated;
    (v) Findings of fact on which the disallowance determination is 
based or a reference to other documents previously or contemporaneously 
furnished to the State (such as a report of a financial review or audit) 
which contain the findings of fact on which the disallowance 
determination is based;
    (vi) Pertinent citations to the law, regulations, guides and 
instructions supporting the action taken; and

[[Page 16]]

    (vii) Notice of the State's right to request reconsideration of the 
disallowance under this section and the time within such request must be 
made.
    (c) Request for reconsideration. (1) To obtain reconsideration of a 
disallowance of an item or class of items for FFP, a State shall, within 
30 days of the date of the disallowance letter, request reconsideration 
by the Administrator, with copy to the Regional Administrator, and 
enclose a copy of the disallowance letter.
    (2) The request for reconsideration must be accompanied by a brief 
statement of the issues in dispute, including an explanation of the 
State's position with respect to each issue.
    (d) Reconsideration procedures. (1) The Administrator will promptly 
acknowledge receipt of a State's request for reconsideration.
    (2) Upon receipt of a copy of the request for reconsideration, the 
Regional Administrator, shall, within 30 days of the request, provide to 
the Administrator a complete record of all material which he believes to 
have a bearing on the reconsideration, including any reports of audit or 
review which were the basis for his decision.
    (3) The Administrator shall promptly forward to the State a list of 
all items currently in the record, including those received from the 
Regional Administrator, or with respect to the medical assistance 
program under title XIX, Regional Medicaid Director and make available 
for examination, inspection and copying any such items not previously 
received by the State.
    (4) Within 60 days from the date of the Administrator's transmittal 
to the State under paragraph (d)(3) of this section, the State shall 
submit in writing to the Administrator any new relevant evidence, 
documentation, or argument and shall simultaneously submit a copy 
thereof to the Regional Administrator, or with respect to the medical 
assistance program under title XIX, Regional Medicaid Director.
    (5) The Regional Administrator, or with respect to the medical 
assistance program under title XIX, Regional Medicaid Director shall, 
within 60 days of submittal by the State, submit to the Administrator 
(with a copy to the State) an analysis of the issues relevant to the 
disallowance including:
    (i) A restatement of the findings on which the disallowance was 
based;
    (ii) A response to each issue raised by the State with respect to 
such findings;
    (iii) A response to any other issues raised by the State, providing 
additional documentation when necessary; and
    (iv) Any additional documentation which he deems relevant.
    (6) The State may respond to the material submitted by the Regional 
Administrator, or with respect to the medical assistance program under 
title XIX, Regional Medicaid Director by submitting to the Administrator 
within 15 days any supplemental material the State wishes to have 
entered into the record.
    (7) At the time of submitting any additional material pursuant to 
paragraph (d)(4), the State may obtain, upon request to him, a 
conference with the Administrator, during which it may discuss with the 
Administrator its position on the issues. The State may, at its own 
expense, have such conference transcribed; the transcript shall become 
part of the administrative record.
    (8) In reconsidering the disallowance, the Administrator may request 
any additional information or documents necessary to his decision.
    (9) New relevant evidence received into the record by the 
Administrator pursuant to paragraph (d)(8) of this section which is not 
received from, or previously otherwise made available to, the State 
shall promptly be made available to the State for examination, 
inspection, and copying and the State will be given appropriate 
additional time for comment.
    (10) All documents, reports, correspondence, and other materials 
considered by the Administrator in reaching his decision shall 
constitute the record of the reconsideration proceedings.
    (11) After consideration of such record and the laws and regulations 
pertinent to the issues in question, the Administrator shall issue a 
written decision, based on the administrative record, which summarizes 
the facts and cites the regulations or statutes that

[[Page 17]]

support the decision. The decision shall constitute final administrative 
action on the matter and shall be promptly mailed to the head of the 
State agency.
    (12) Either the state or the Regional Administrator, or with respect 
to the medical assistance program under title XIX, Regional Medicaid 
Director may request from the Administrator, for good cause, an 
extension of any of the time limits specified in this section.
    (13) No section of this regulation shall be interpreted as waiving 
the Department's right to assert any provision or exemption in the 
Freedom of Information Act.
    (e) Implementation of the decision. If the decision requires an 
adjustment in the Federal share, either upward or downward, this will be 
reflected in subsequent grant awards.
    (f) For purposes of this section, the Administrator includes the 
Deputy Administrator, except that whichever official conducts the 
conference requested pursuant to paragraph (d)(7) of this section will 
also issue the final administrative decision pursuant to paragraph 
(d)(11) of this section.

Appendix--Reconsideration of Disallowances Under Section 1116 (d) of the 
                           Social Security Act

                          transfer of functions

    Under the authority of Reorganization Plan No. 1 of 1953, and 
pursuant to the authorities vested in me as Secretary of Health amd 
Human Services, I hereby order that, with respect to reconsiderations of 
disallowances imposed under titles I, IV, VI, X, XIV, XVI (AABD), XIX 
and XX of the Social Security Act, 42 U.S.C. 301 et seq., 601 et seq., 
801 et seq., 1201 et seq., 1351 et seq., 1381 et seq. (AABD), 1396 et 
seq. and 1397 et seq., all references to ``Administrator'' appearing in 
45 CFR 201.14 shall be deemed to read ``Chairman, Departmental Grant 
Appeals Board'' and all references to ``Deputy Administrator'' appearing 
therein shall be deemed to refer to one or more members of the 
Departmental Grant Appeals Board, designated by the Chairman to decide a 
reconsideration. States which have previously had or requested a 
conference pursuant to 45 CFR 201.14(d)(7) will be entitled to a 
conference with the Chairman of the Departmental Grant Appeals Board 
acting (as provided above) as successor to the Administrator of the 
Social and Rehabilitation Service (SRS), or with a member or members of 
the Board designated by the Chairman to decide the matter, acting as 
successor to the Deputy Administrator of SRS. The Chairman may, at his 
option, utilize a Grant Appeals Panel, designated pursuant to 45 CFR 
516.4(b), to decide the matter, and may supplement the Sec.201.14 
procedures by utilizing the procedures of 45 CFR part 16 including the 
authority provided in 45 CFR 16.51 to waive or modify any procedural 
provision upon a determination that no party will be prejudiced and that 
the ends of justice will be served.

[40 FR 34592, Aug. 18, 1975; 40 FR 44326, Sept. 26, 1975, as amended at 
41 FR 42205, Sept. 27, 1976; 42 FR 43977, Sept. 1, 1977; 42 FR 51583, 
Sept. 29, 1977; 43 FR 9266, Mar. 6, 1978; 51 FR 9202, Mar. 18, 1986; 53 
FR 36579, Sept. 21, 1988]



Sec.201.15  Deferral of claims for Federal financial participation.

    (a) Scope. Except as otherwise provided, this section applies to all 
claims for Federal financial participation submitted by States pursuant 
to titles I, IV, X, XIV, XVI (AABD), of the Social Security Act.
    (b) Definitions--(1) Deferral Action means the process of suspending 
payment with respect to a claim within the scope of paragraph (a) of 
this section, pending the receipt and analysis of further information 
relating to the allowability of the claim, under the procedures 
specified in this section.
    (2) Deferred claim means a claim within the scope of paragraph (a) 
of this section upon which a deferral action has been taken.
    (c) Procedures. (1) A claim or any portion of a claim for 
reimbursement for expenditures reported on the Quarterly Statement of 
Expenditures shall be deferred only when the Regional Administrator 
believes the claim or a specific portion of the claim is of questionable 
allowability. The deferral action will be taken within 60 days after 
receipt of a Quarterly Statement of Expenditures prepared in accordance 
with instructions issued by the Administration.
    (2) When deferral action is taken on a claim, the Regional 
Administrator or the Administrator will within 15 days send written 
notice to the State identifying the type and amount of the claim and the 
reason for deferral. In the written notice of the deferral action, the 
Regional Administrator or the Administrator will request the State to 
make available for inspection all documents

[[Page 18]]

and materials which the Regional office then believes necessary to 
determine the allowability of the claim.
    (3) Within 60 days of receipt of the notice of deferral action 
described in paragraph (c)(2) of this section the State shall make 
available to the Regional office, in readily reviewable form, all 
requested documents and materials, or when necessary, shall identify 
those documents and items of information which are not available. If the 
State requires additional time to make the documents and material 
available, it shall upon request be given an additional 60 days.
    (4) The Regional office will normally initiate the review within 30 
days of the date that materials become available for review.
    (5) If the Regional Administrator finds that the documents and 
materials are not in readily reviewable form or that supplemental 
information is required, he will promptly notify the State. The State 
will have 15 days from the date of notification to complete the action 
requested. If the Regional Commissioner or the Administrator finds that 
the documents necessary to determine the allowability of the claim are 
not made available within the allowed time limits, or that the documents 
are not made available in readily reviewable form, he shall promptly 
disallow the claim.
    (6) The Regional Administrator or the Administrator will have 90 
days after all documentation is available in readily reviewable form to 
determine the allowability of the deferred claim. If he is unable to 
complete the review within the time period the claim will be paid 
subject to a later determination of allowability.
    (7) It is the responsibility of the State agency to establish the 
allowability of a deferred claim.
    (8) The Regional Office or the Administrator will notify the State 
in writing of the decision on the allowability of the deferred claim.
    (9) If a deferred claim is disallowed, the Regional Administrator or 
the Administrator shall advise the State of its right to reconsideration 
pursuant to Sec.201.14.
    (10) A decision to pay a deferred claim shall not preclude a 
subsequent disallowance as a result of an audit exception or financial 
management review. If a subsequent disallowance should occur, the State, 
upon request shall be granted reconsideration pursuant to Sec.201.14.

[41 FR 7104, Feb. 17, 1976, as amended at 42 FR 51583, Sept. 29, 1977; 
47 FR 7669, Feb. 22, 1982; 53 FR 36579, Sept. 21, 1988]



Sec.201.66  Repayment of Federal funds by installments.

    (a) Basic Conditions. When a State has been reimbursed Federal funds 
for expenditures claimed under titles I, IV-A, X, XIV, XVI (AABD) which 
are later determined to be unallowable for Federal financial 
participation, the State may make repayment of such Federal funds in 
installments provided:
    (1) The amount of the repayment exceeds 2\1/2\ percent of the 
estimated annual State share for the program in which the unallowable 
expenditure occurred as set forth in paragraph (b) of this section; and
    (2) The State has notified the Regional Administrator in writing of 
its intent to make installment repayments. Such notice must be given 
prior to the time repayment of the total was otherwise due.
    (b) Criteria governing installment repayments. (1) The number of 
quarters over which the repayment of the total unallowable expenditures 
will be made will be determined by the percentage the total of such 
repayment is of the estimated State share of the annual expenditures for 
the specific program against which the recovery is made, as follows:

------------------------------------------------------------------------
                                                               Number of
   Total repayment amount as percentage of State share of      quarters
        annual expenditures for the specific program            to make
                                                               repayment
------------------------------------------------------------------------
2.5 pct. or less............................................           1
Greater than 2.5, but not greater than 5....................           2
Greater than 5, but not greater than 7.5....................           3
Greater than 7.5, but not greater than 10...................           4
Greater than 10, but not greater than 15....................           5
Greater than 15, but not greater than 20....................           6
Greater than 20 but not greater than 25.....................           7
Greater than 25, but not greater than 30....................           8
Greater than 30, but not greater than 47.5..................           9
Greater than 47.5, but not greater than 65..................          10
Greater than 65, but not greater than 82.5..................          11
Greater than 82.5, but not greater than 100.................          12
------------------------------------------------------------------------


The quarterly repayment amounts for each of the quarters in the 
repayment

[[Page 19]]

schedule shall not be less than the following percentages of the 
estimated State share of the annual expenditures for the program against 
which the recovery is made.

------------------------------------------------------------------------
                                                              Repayment
                                                             installment
                                                              may not be
             For each of the following quarters               less than
                                                                these
                                                             percentages
------------------------------------------------------------------------
1 to 4.....................................................          2.5
5 to 8.....................................................          5.0
9 to 12....................................................         17.5
------------------------------------------------------------------------


If the State chooses to repay amounts representing higher percentages 
during the early quarters, any corresponding reduction in required 
minimum percentages would be applied first to the last scheduled 
payment, then to the next to the last payment, and so forth as 
necessary.
    (2) The latest State Agency Statement of Financial Plan for AFDC 
submitted by the State shall be used to estimate the State's share of 
annual expenditures for the specific program in which the unallowable 
expenditures occurred. That estimated share shall be the sum of the 
State's share of the estimates (as shown on the latest State Agency 
Statement of Financial Plan for AFDC) for four quarters, beginning with 
the quarter in which the first installment is to be paid.
    (3) In the case of a program terminated by law or by the State, the 
actual State share--rather than the estimate--shall be used for 
determining whether the amount of the repayment exceeds 2\1/2\% of the 
annual State share for the program. The annual State share in these 
cases will be determined using payments computable for Federal funding 
as reported for the program by the State on its Quarterly Statement of 
Expenditures reports submitted for the last four quarters preceding the 
date on which the program was terminated.
    (4) Repayment shall be accomplished through adjustment in the 
quarterly grants over the period covered by the repayment schedule.
    (5) The amount of the repayment for purpose of paragraphs (a) and 
(b) of this section may not include any amount previously approved for 
installment repayment.
    (6) The repayment schedule may be extended beyond 12 quarterly 
installments if the total repayment amount exceeds 100% of the estimated 
State share of annual expenditures. In these circumstances, the criteria 
in paragraphs (b) (1) and (2) or (3) of this section, as appropriate, 
shall be followed for repayment of the amount equal to 100% of the 
annual State share. The remaining amount of the repayment shall be in 
quarterly amounts not less than those for the 9th through 12th quarters.
    (7) The amount of a retroactive claim to be paid a State will be 
offset against any amounts to be, or already being, repaid by the State 
in installments, under the same title of the Social Security Act. Under 
this provision the State may choose to:
    (i) Suspend payments until the retroactive claim due the State has, 
in fact, been offset; or
    (ii) Continue payments until the reduced amount of its debt 
(remaining after the offset), has been paid in full. This second option 
would result in a shorter payment period. A retroactive claim for the 
purpose of this regulation is a claim applicable to any period ending 12 
months or more prior to the beginning of the quarter in which the 
payment is to be made by the Administration.

[42 FR 28884, June 6, 1977, as amended at 47 FR 7669, Feb. 22, 1982; 52 
FR 273, Jan. 5, 1987; 53 FR 36579, Sept. 21, 1988]



Sec.201.67  Treatment of uncashed or cancelled checks.

    (a) Purpose. This section provides the rules to ensure that States 
refund the Federal portion of uncashed or cancelled (voided) checks 
under titles I, IV-A, X, XIV, and XVI (AABD).
    (b) Definitions. As used in this section--Check means a check or 
warrant that the State or local agency uses to make a payment.
    Cancelled (voided) check means a check issued by the State agency or 
local agency which prior to its being cashed is cancelled (voided) by 
State or local agency action, thus preventing disbursement of funds.

[[Page 20]]

    Uncashed check means a check issued by the State agency or local 
agency which has not been cashed by the payee.
    (c) Refund of Federal financial participation (FFP) for uncashed 
checks--(1) General provisions. If a check remains uncashed beyond a 
period of 180 days from the date it was issued, i.e., the date of the 
check, it will no longer be regarded as an amount expended because no 
funds have actually been disbursed. If the State agency has claimed and 
received FFP for the amount of the uncashed check, it must refund the 
amount of FFP received.
    (2) Report of refund. At the end of each calendar quarter, the State 
agency must identify those checks which remain uncashed beyond a period 
of 180 days after issuance. The State agency must report on the 
Quarterly Statement of Expenditures for that quarter all FFP that it 
received for uncashed checks. Once reported on the Quarterly Statement 
of Expenditures for a quarter, an uncashed check is not to be reported 
on a subsequent Quarterly Statement of Expenditures. If an uncashed 
check is cashed after the refund is made, the State agency may submit a 
new claim for FFP.
    (d) Refund of FFP for cancelled (voided) checks--(1) General 
provisions. If the State agency has claimed and received FFP for the 
amount of a cancelled (voided) check, it must refund the amount of FFP 
received.
    (2) Report of refund. At the end of each calendar quarter, the State 
agency must identify those checks which were cancelled (voided). The 
State agency must report on the Quarterly Statement of Expenditures for 
that quarter all FFP received by the State agency for these checks. Once 
reported on the Quarterly Statement of Expenditures for a quarter, a 
cancelled (voided) check is not to be reported on a subsequent Quarterly 
Statement of Expenditures.

[50 FR 37661, Sept. 17, 1985]



Sec.201.70  Treatment of replacement checks.

    (a) Purpose. This section provides the rules to ensure States do not 
claim Federal financial participation (FFP) for replacement checks under 
titles I, VI-A, X, XIV, XVI (AABD) except under the circumstances 
specified in paragraph (c) of this section.
    (b) Definitions. As used in this section--
    Check means a check or warrant that the State or local agency uses 
to make a payment.
    Replacement check means a check issued by the State or local agency 
to replace an earlier check.
    (c) Claiming of FFP for replacement checks. The State agency may not 
claim FFP for the amount of a replacement check unless:
    (1) It makes no claim for FFP for the earlier check;
    (2) The earlier check has been cancelled (voided) and FFP refunded, 
where claimed, pursuant to 45 CFR 201.67(d); or
    (3) The earlier check has been cashed and FFP has been refunded.
    The State agency shall report the amount of the refund of FFP for 
the earlier check on the Quarterly Statement of Expenditures for the 
quarter no later than the quarter in which the replacement check is 
issued.

[53 FR 24269, June 28, 1988]



PART 204_GENERAL ADMINISTRATION_STATE PLANS AND GRANT APPEALS--
Table of Contents



Sec.
204.1 Submittal of State plans for Governor's review.
204.2 State plans--format.
204.3 Responsibilities of the State.
204.4 Grant appeals.

    Authority: 42 U.S.C. 602(a)(44) and 1302 and sections 1, 5, 6, and 7 
of Reorganization Plan No. 1 of 1953, 67 Stat. 631.



Sec.204.1  Submittal of State plans for Governor's review.

    A State plan under title I, IV-A, IV-B, X, XIV, XVI(AABD) of the 
Social Security Act, section 101 of the Rehabilitation Act of 1973, or 
title I of the Mental Retardation Facilities and Community Mental Health 
Centers Construction Act, must be submitted to the State Governor for 
his review and comments, and the State plan must provide

[[Page 21]]

that the Governor will be given opportunity to review State plan 
amendments and long-range program planning projections or other periodic 
reports thereon. This requirement does not apply to periodic statistical 
or budget and other fiscal reports. Under this requirement, the Office 
of the Governor will be afforded a specified period in which to review 
the material. Any comments made will be transmitted to the Family 
Support Administration with the documents.

(Sec. 1102, 49 Stat. 647 (42 U.S.C. 1302))

[39 FR 34542, Sept. 26, 1974, as amended at 53 FR 36579, Sept. 21, 1988]



Sec.204.2  State plans--format.

    State plans for Federally-assisted programs for which the Family 
Support Administration has responsibility must be submitted to the 
Administration in the format and containing the information prescribed 
by the Administration, and within time limits set in implementing 
instructions issued by the Administration. Such time limits will be 
adequate for proper preparation of plans and submittal in accordance 
with the requirements for State Governors' review (see Sec.204.1 of 
this chapter).

(Sec. 1102, 49 Stat. 647, 42 U.S.C. 1302; sec. 7(b), 68 Stat. 658, 29 
U.S.C. 37(b); sec. 139, 84 Stat. 1323, 42 U.S.C. 2677(b))

[38 FR 16872, June 27, 1973, as amended at 53 FR 36579, Sept. 21, 1988]



Sec.204.3  Responsibilities of the State.

    The State agency shall be responsible for assuring that the benefits 
and services available under titles IV-A, IV-D, and IV-F are furnished 
in an integrated manner.

[57 FR 30425, July 9, 1992]



Sec.204.4  Grant appeals.

    (a) Scope. This section applies to certain determinations (as set 
forth in part 16, appendix A, section C of this title), made with 
respect to direct, discretionary project grants awarded by the Family 
Support Administration, and such other grants or grant programs as the 
Administrator, with the approval of the Secretary, may designate. The 
statutory authority for current grant programs to which this section 
applies appears in the appendix to this section. This section is also 
applicable to determinations with respect to grants which were made 
under authority which has expired or been repealed since the grants were 
made, even though such authority does not appear in the appendix.
    (b) Submission. (1) A grantee who has received notification, as 
described in Sec.16.3 (b) and (c) of this title, of a determination 
described in part 16, appendix A, section C of this title, may request 
reconsideration by informing the Grants Appeals Officer as identified in 
the final adverse determination or otherwise designated by the 
Administrator, Family Support Administration, Washington, DC 20201 of 
the grantee's intent to contest the determination. The grantee's request 
for reconsideration must be postmarked no later than 30 days after the 
postmark date of the written notification of such determination, except 
when the Grant Appeals Officer grants an extension of time for good 
cause.
    (2) Although the request need not follow any prescribed form, it 
shall clearly identify the question or questions in dispute and contain 
a full statement of the grantee's position with respect to such question 
or questions, and the pertinent facts and reasons in support of such 
position. The grantee shall attach to his submission a copy of the 
agency notification specified in Sec.16.3(b) of this title.
    (c) Action by the Administration on requests for reconsideration. 
(1) Upon receipt of such an application the Grant Appeals Officer will 
inform the grantee that:
    (i) His request is under review, and
    (ii) If no decision is received within 90 days of the postmark date 
of the grantee's request for reconsideration, the determination may be 
appealed to the Departmental Grant Appeals Board.
    (2) The Grant Appeals Officer will reconsider the determination 
appealed from, considering any material submitted by the grantee and any 
other material necessary.
    (3) If the response to the grantee is adverse to the grantee's 
position, the response will include notification of

[[Page 22]]

the grantee's right to appeal to the Departmental Grant Appeals Board.

                                Appendix

    This section is issued under sections 1, 5, 6, and 7 of 
Reorganization Plan No. 1 of 1953, 18 FR 2053, 67 Stat. 631 and is 
applicable to programs carried out under the following authorities:
    (1) Section 222(a) and (b) of the Social Security Amendments of 1972 
(Pub. L. 92-603).
    (2) Section 426 of the Social Security Act (42 U.S.C. 262).
    (3) Section 707 of the Social Security Act (42 U.S.C. 907).
    (4) Section 1110 of the Social Security Act (42 U.S.C. 1310).
    (5) Section 1115 of the Social Security Act (42 U.S.C. 1315).

(Secs. 1, 5, 6, 7 Reorganization Plan No. 1 of 1953, 67 Stat. 631)

[40 FR 51443, Nov. 5, 1975, as amended at 53 FR 36579, Sept. 21, 1988]



PART 205_GENERAL ADMINISTRATION_PUBLIC ASSISTANCE PROGRAMS--
Table of Contents



Sec.
205.5 Plan amendments.
205.10 Hearings.
205.25 Eligibility of supplemental security income beneficiaries for 
          food stamps or surplus commodities.
205.30 Methods of administration.
205.32 Procedures for issuance of replacement checks.
205.35 Mechanized claims processing and information retrieval systems; 
          definitions.
205.36 State plan requirements.
205.37 Responsibilities of the Administration for Children and Families 
          (ACF).
205.38 Federal financial participation (FFP) for establishing a 
          statewide mechanized system.
205.44 [Reserved]
205.45 Federal financial participation in relation to State emergency 
          welfare preparedness.
205.50 Safeguarding information for the financial assistance programs.
205.51 Income and eligibility verification requirements.
205.52 Furnishing of social security numbers.
205.55 Requirements for requesting and furnishing eligibility and income 
          information.
205.56 Requirements governing the use of income and eligibility 
          information.
205.57 Maintenance of a machine readable file; requests for income and 
          eligibility information.
205.58 Income and eligibility information; specific agreements required 
          between the State agency and the agency supplying the 
          information.
205.60 Reports and maintenance of records.
205.70 Availability of agency program manuals.
205.100 Single State agency.
205.101 Organization for administration.
205.120 Statewide operation.
205.130 State financial participation.
205.150 Cost allocation.
205.160 Equipment--Federal financial participation.
205.170 State standards for office space, equipment, and facilities.
205.190 Standard-setting authority for institutions.

    Authority: 42 U.S.C. 602, 603, 606, 607, 1302, 1306(a), and 1320b-7: 
42 U.S.C. 1973gg-5.



Sec.205.5  Plan amendments.

    (a) State plan requirements. A State plan under title I, IV-A, X, 
XIV, or XVI (AABD) of the Social Security Act must provide that the plan 
will be amended whenever necessary to reflect new or revised Federal 
statutes or regulations, or material change in any phase of State law, 
organization, policy or State agency operation.
    (b) Federal financial participation. Except where otherwise 
provided, Federal financial participation is available in the additional 
expenditures resulting from an amended provision of the State plan as of 
the first day of the calendar quarter in which an approvable amendment 
is submitted or the date on which the amended provision becomes 
effective in the State, whichever is later.

[39 FR 34542, Dec. 26, 1974, as amended at 53 FR 36579, Sept. 21, 1988]



Sec.205.10  Hearings.

    (a) State plan requirements. A State plan under title I, IV-A, X, 
XIV, or XVI(AABD) of the Social Security Act shall provide for a system 
of hearings under which:
    (1) The single State agency responsible for the program shall be 
responsible for fulfillment of hearing provisions which shall provide 
for:
    (i) A hearing before the State agency, or
    (ii) An evidentiary hearing at the local level with a right of 
appeal to a State agency hearing. Where a State agency adopts a system 
of evidentiary hearings with an appeal to a State

[[Page 23]]

agency hearing, it may, in some political subdivisions, permit local 
evidentiary hearings, and in others, provide for a single hearing before 
the State agency. Under this requirement hearings shall meet the due 
process standards set forth in the U.S. Supreme Court decision in 
Goldberg v. Kelly, 397 U.S. 254 (1970) and the standards set forth in 
this section.
    (2) Hearing procedures shall be issued and publicized by the State 
agency. Such procedures shall provide for a face-to-face hearing or, at 
State option, a hearing by telephone when the applicant or recipient 
also agrees. Under this provision, the State shall assure that the 
applicant or recipient is afforded all rights as specified in this 
section, whether the hearing is face-to-face or by telephone;
    (3) Every applicant or recipient shall be informed in writing at the 
time of application and at the time of any action affecting his claim:
    (i) Of his right to a hearing, as provided in paragraph (a)(5) of 
this section;
    (ii) Of the method by which he may obtain a hearing;
    (iii) That he may be represented by an authorized representative, 
such as legal counsel, relative, friend, or other spokesman, or he may 
represent himself.
    (4) In cases of intended action to discontinue, terminate, suspend 
or reduce assistance or to change the manner or form of payment to a 
protective, vendor, or two-party payment under Sec.234.60:
    (i) The State or local agency shall give timely and adequate notice, 
except as provided for in paragraphs (a)(4) (ii), (iii), or (iv) of this 
section. Under this requirement:
    (A) Timely means that the notice is mailed at least 10 days before 
the date of action, that is, the date upon which the action would become 
effective;
    (B) Adequate means a written notice that includes a statement of 
what action the agency intends to take, the reasons for the intended 
agency action, the specific regulations supporting such action, 
explanation of the individual's right to request an evidentiary hearing 
(if provided) and a State agency hearing, the circumstances under which 
assistance is continued if a hearing is requested, and if the agency 
action is upheld, that such assistance must be repaid under title IV-A, 
and must also be repaid under titles I, X, XIV or XVI (AABD) if the 
State plan provides for recovery of such payments.
    (ii) The agency may dispense with timely notice but shall send 
adequate notice not later than the date of action when:
    (A) The agency has factual information confirming the death of a 
recipient or of the AFDC payee when there is no relative available to 
serve as new payee;
    (B) The agency receives a clear written statement signed by a 
recipient that he no longer wishes assistance, or that gives information 
which requires termination or reduction of assistance, and the recipient 
has indicated, in writing, that he understands that this must be the 
consequence of supplying such information;
    (C) The recipient has been admitted or committed to an institution, 
and further payments to that individual do not qualify for Federal 
financial participation under the State plan;
    (D) The recipient has been placed in skilled nursing care, 
intermediate care or long-term hospitalization;
    (E) The claimant's whereabouts are unknown and agency mail directed 
to him has been returned by the post office indicating no known 
forwarding address. The claimant's check must, however, be made 
available to him if his whereabouts become known during the payment 
period covered by a returned check;
    (F) A recipient has been accepted for assistance in a new 
jurisdiction and that fact has been established by the jurisdiction 
previously providing assistance;
    (G) An AFDC child is removed from the home as a result of a judicial 
determination, or voluntarily placed in foster care by his legal 
guardian;
    (H) For AFDC, the agency takes action because of information the 
recipient furnished in a monthly report or because the recipient has 
failed to submit a complete or a timely monthly report without good 
cause. (See Sec.233.37);

[[Page 24]]

    (I) A special allowance granted for a specific period is terminated 
and the recipient has been informed in writing at the time of initiation 
that the allowance shall automatically terminate at the end of the 
specified period;
    (J) The agency has made a presumption of mismanagement as a result 
of a recipient's nonpayment of rent and provides for post hearings in 
such circumstances;
    (K) An individual's payment is suspended or reduced for failure to 
meet a payment after performance obligation as set forth at Sec.
233.101(b)(2)(iv) (B) or (C) of this chapter. In addition to the 
contents set forth in paragraph (a)(4)(i)(B) of this section, the 
adequate notice must advise the individual of the right to have 
assistance immediately reinstated retroactive to the date of action at 
the previous month's level pending the hearing decision if he or she 
makes a request for a hearing and reinstatement within 10 days after the 
date of the notice.
    (iii) When changes in either State or Federal law require automatic 
grant adjustments for classes of recipients, timely notice of such grant 
adjustments shall be given which shall be ``adequate'' if it includes a 
statement of the intended action, the reasons for such intended action, 
a statement of the specific change in law requiring such action and a 
statement of the circumstances under which a hearing may be obtained and 
assistance continued.
    (iv) When the agency obtains facts indicating that assistance should 
be discontinued, suspended, terminated, or reduced because of the 
probable fraud of the recipient, and, where possible, such facts have 
been verified through collateral sources, notice of such grant 
adjustment shall be timely if mailed at least five (5) days before 
action would become effective.
    (5) An opportunity for a hearing shall be granted to any applicant 
who requests a hearing because his or her claim for financial assistance 
(including a request for supplemental payments under Sec. Sec.233.23 
and 233.27) is denied, or is not acted upon with reasonable promptness, 
and to any recipient who is aggrieved by any agency action resulting in 
suspension, reduction, discontinuance, or termination of assistance, or 
determination that a protective, vendor, or two-party payment should be 
made or continued. A hearing need not be granted when either State or 
Federal law requires automatic grant adjustments for classes of 
recipients unless the reason for an individual appeal is incorrect grant 
computation.
    (i) A request for a hearing is defined as a clear expression by the 
claimant (or his authorized representative acting for him), to the 
effect that he wants the opportunity to present his case to higher 
authority. The State may require that such request be in written form in 
order to be effective;
    (ii) The freedom to make such a request shall not be limited or 
interfered with in any way. The agency may assist the claimant to submit 
and process his request;
    (iii) The claimant shall be provided reasonable time, not to exceed 
90 days, in which to appeal an agency action;
    (iv) Agencies may respond to a series of individual requests for 
hearing by conducting a single group hearing. Agencies may consolidate 
only cases in which the sole issue involved is one of State or Federal 
law or policy or changes in State or Federal law. In all group hearings, 
the policies governing hearings must be followed. Thus, each individual 
claimant shall be permitted to present his own case or be represented by 
his authorized representative;
    (v) The agency may deny or dismiss a request for a hearing where it 
has been withdrawn by the claimant in writing, where the sole issue is 
one of State or Federal law requiring automatic grant adjustments for 
classes of recipients, where a decision has been rendered after a WIN 
hearing before the manpower agency that a participant has, without good 
cause, refused to accept employment or participate in the WIN program, 
or has failed to request such a hearing after notice of intended action 
for such refusal, or where it is abandoned. Abandonment may be deemed to 
have occurred if the claimant, without good cause therefor, fails to 
appear by himself or by authorized representative at the hearing 
scheduled for such claimant.
    (6) If the recipient requests a hearing within the timely notice 
period:

[[Page 25]]

    (i) Assistance shall not be suspended, reduced, discontinued or 
terminated (but is subject to recovery by the agency if its action is 
sustained), until a decision is rendered after a hearing, unless:
    (A) A determination is made at the hearing that the sole issue is 
one of State or Federal law or policy, or change in State or Federal law 
and not one of incorrect grant computation;
    (B) A change affecting the recipient's grant occurs while the 
hearing decision is pending and the recipient fails to request a hearing 
after notice of the change;
    (C) The recipient specifically requests that he or she not receive 
continued assistance pending a hearing decision; or
    (D) The agency has made a presumption of mismanagement as a result 
of a recipient's nonpayment of rent and provides for the opportunity for 
a hearing after the manner or form of payment has been changed for such 
cases in accordance with Sec.234.60 (a)(2) and (a)(11).
    (ii) The agency shall promptly inform the claimant in writing if 
assistance is to be discontinued pending the hearing decision; and
    (iii) In any case where the decision of an evidentiary hearing is 
adverse to the claimant, he shall be informed of and afforded the right 
to make a written request, within 15 days of the mailing of the 
notification of such adverse decision, for a State agency hearing and of 
his right to request a de novo hearing. Unless a de novo hearing is 
specifically requested by the appellant, the State agency hearing may 
consist of a review by the State agency hearing officer of the record of 
the evidentiary hearing to determine whether the decision of the 
evidentiary hearing officer was supported by substantial evidence in the 
record. Assistance shall not be continued after an adverse decision to 
the claimant at the evidentiary hearing.
    (7) A State may provide that a hearing request made after the date 
of action (but during a period not in excess of 10 days following such 
date) shall result in reinstatement of assistance to be continued until 
the hearing decision, unless (i) the recipient specifically requests 
that continued assistance not be paid pending the hearing decision; or 
(ii) at the hearing it is determined that the sole issue is one of State 
or Federal law or policy. In any case where action was taken without 
timely notice, if the recipient requests a hearing within 10 days of the 
mailing of the notice of the action, and the agency determines that the 
action resulted from other than the application of State or Federal law 
or policy or a change in State or Federal law, assistance shall be 
reinstated and continued until a decision is rendered after the hearing, 
unless the recipient specifically requests that continued assistance not 
be paid pending the hearing decision.
    (8) The hearing shall be conducted at a reasonable time, date, and 
place, and adequate preliminary written notice shall be given.
    (9) Hearings shall be conducted by an impartial official (officials) 
or designee of the agency. Under this requirement, the hearing official 
(officials) or designee shall not have been directly involved in the 
initial determination of the action in question.
    (10) When the hearing involves medical issues such as those 
concerning a diagnosis, an examining physician's report, or a medical 
review team's decision, a medical assessment other than that of the 
person or persons involved in making the original decision shall be 
obtained at agency expense and made part of the record if the hearing 
officer considers it necessary.
    (11) In respect to title IV-C, when the appeal has been taken on the 
basis of a disputed WIN registration requirement, exemption 
determination or finding of failure to appear for an appraisal 
interview, a representative of the local WIN manpower agency shall, 
where appropriate, participate in the conduct of the hearing.
    (12) The hearing shall include consideration of:
    (i) An agency action, or failure to act with reasonable promptness, 
on a claim for financial assistance, which includes undue delay in 
reaching a decision on eligibility or in making a payment, refusal to 
consider a request for or undue

[[Page 26]]

delay in making an adjustment in payment, and discontinuance, 
termination or reduction of such assistance;
    (ii) Agency decision regarding:
    (A) Eligibility for financial assistance in both initial and 
subsequent determinations,
    (B) Amount of financial assistance or change in payments,
    (C) The manner or form of payment, including restricted or 
protective payments, even though no Federal financial participation is 
claimed.
    (13) The claimant, or his representative, shall have adequate 
opportunity:
    (i) To examine the contents of his case file and all documents and 
records to be used by the agency at the hearing at a reasonable time 
before the date of the hearing as well as during the hearing;
    (ii) At his option, to present his case himself or with the aid of 
an authorized representative;
    (iii) To bring witnesses;
    (iv) To establish all pertinent facts and circumstances;
    (v) To advance any arguments without undue interference;
    (vi) To question or refute any testimony or evidence, including 
opportunity to confront and cross-examine adverse witnesses.
    (14) Recommendations or decisions of the hearing officer or panel 
shall be based exclusively on evidence and other material introduced at 
the hearing. The transcript or recording of testimony and exhibits, or 
an official report containing the substance of what transpired at the 
hearing, together with all papers and requests filed in the proceeding, 
and the recommendation or decision of the hearing officer or panel shall 
constitute the exclusive record and shall be available to the claimant 
at a place accessible to him or his representative at a reasonable time.
    (15) Decisions by the hearing authority shall:
    (i) In the event of an evidentiary hearing, consist of a memorandum 
decision summarizing the facts and identifying the regulations 
supporting the decision;
    (ii) In the event of a State agency de novo hearing, specify the 
reasons for the decision and identify the supporting evidence and 
regulations.

Under this requirement no persons who participated in the local decision 
being appealed shall participate in a final administrative decision on 
such a case.
    (16) Prompt, definitive, and final administrative action shall be 
taken within 90 days from the date of the request for a hearing.
    (17) The claimant shall be notified of the decision in writing and, 
to the extent it is available to him, of his right to appeal to State 
agency hearing or judicial review.
    (18) When the hearing decision is favorable to the claimant, or when 
the agency decides in favor of the claimant prior to the hearing, the 
agency shall promptly make corrective payments retroactively to the date 
the incorrect action was taken.
    (19) All State agency hearing decisions shall be accessible to the 
public (subject to provisions of safeguarding public assistance 
information).
    (b) Federal financial participation. Federal financial participation 
is available for the following items:
    (1) Payments of assistance continued pending a hearing decision.
    (2) Payments of assistance made to carry out hearing decisions, or 
to take corrective action after an appeal but prior to hearing, or to 
extend the benefit of a hearing decision or court order to others in the 
same situation as those directly affected by the decision or order. Such 
payments may be retroactive in accordance with applicable Federal 
policies on corrective payments.
    (3) Payments of assistance within the scope of Federally aided 
public assistance programs made in accordance with a court order.
    (4) Administrative costs incurred by the agency for:
    (i) Providing transportation for the claimant, his representative 
and witnesses to and from the place of the hearing;
    (ii) Meeting other expenditures incurred by the claimant in 
connection with the hearing;

[[Page 27]]

    (iii) Carrying out the hearing procedures, including expenses of 
obtaining an additional medical assessment.

[38 FR 22007, Aug. 15, 1973, as amended at 44 FR 17941, Mar. 23, 1979; 
45 FR 20480, Mar. 28, 1980; 47 FR 5673, Feb. 5, 1982; 47 FR 47827, Oct. 
28, 1982; 51 FR 9202, Mar. 18, 1986; 53 FR 36579, Sept. 21, 1988; 57 FR 
30425, July 9, 1992]



Sec.205.25  Eligibility of supplemental security income beneficiaries
for food stamps or surplus commodities.

    (a) In respect to any individual who is receiving supplemental 
security income benefits under title XVI of the Social Security Act, the 
State agency shall make the following determinations:
    (1) The amount of assistance such individual would have been 
entitled to receive for any month under the appropriate State plan in 
effect for December 1973, under title I, X, XIV, or XVI, and for such 
purpose such individual shall be deemed to be aged, blind, or 
permanently and totally disabled, as the case may be, under the 
provisions of such plan.
    (2) The bonus value of the food stamps (according to the Food Stamp 
Schedule effective for July 1973) such individual would have been 
entitled to receive for such month, assuming the individual were 
receiving the assistance determined under paragraph (a)(1) of this 
section.
    (3) The amount of benefits such individual is receiving for such 
month under Title XVI, plus supplementary payments as defined in section 
1616(a) of the Social Security Act and payments pursuant to section 212 
of Pub. L. 93-66, if any.
    (b) If the amount determined in paragraph (a)(1) of this section 
plus the amount determined in paragraph (a)(2) of this section exceeds 
the amount determined in paragraph (a)(3) of this section, such 
individual shall be eligible to participate in the food stamp program 
established by the Food Stamp Act of 1964 or surplus commodities 
distribution programs established by the Secretary of Agriculture 
pursuant to section 416 of the Agricultural Act of 1949, section 32 of 
Pub. L. 74-320, or any other law, in accordance with regulations and 
procedures established by the Secretary of Agriculture.
    (c) For purposes of paragraph (a)(3) of this section, the State 
agency shall obtain the amount of the title XVI payment and the amount 
of any Federally administered State supplementary payment from the 
Social Security Administration.
    (d) The State agency shall redetermine the eligibility of 
individuals to participate in the food stamp or surplus commodities 
distribution programs hereunder at such times as the Secretary of 
Agriculture requires re-certification for such stamps or commodities.

[38 FR 34324, Dec. 13, 1973]



Sec.205.30  Methods of administration.

    State plan requirements: A State plan for financial assistance under 
title I, IV-A, X, XIV or XVI (AABD) of the Social Security Act must 
provide for such methods of administration as are found by the Secretary 
to be necessary for the proper and efficient operation of the plan.

[45 FR 56684, Aug. 25, 1980]



Sec.205.32  Procedures for issuance of replacement checks.

    (a) State plan requirements. A State plan under title IV-A of the 
Social Security Act shall provide that (1) procedures are in effect to 
ensure that no undue delays occur in issuing a replacement check; and 
(2) when applicable, prior to the issuance of a replacement check, the 
State agency must:
    (i) Issue a stop payment order on the original AFDC check through 
appropriate banking procedures; and
    (ii) Require recipients to execute a signed statement attesting to 
the nonreceipt, loss, or theft of the original FDC check. However, if 
obtaining such a statement from the recipient will cause the issuance of 
the check to be unduly delayed, the statement may be obtained within a 
reasonable time after the check is issued.
    (b) State option. A State plan may provide that as a condition for 
issuance of a replacement check, a recipient is required to report a 
lost or stolen AFDC check to the police or other appropriate 
authorities. Under this provision, the State agency may require that the 
recipient verify that a report

[[Page 28]]

was made to the police or other appropriate authorities and, if so, the 
agency will establish procedures for such verification.

[51 FR 9203, Mar. 18, 1986]



Sec.205.35  Mechanized claims processing and information retrieval 
systems; definitions.

    Section 205.35 through 205.38 contain State plan requirements for an 
automated statewide management information system, conditions for FFP 
and responsibilities of the Administration for Children and Families 
(ACF). For purposes of Sec. Sec.205.35 through 205.38:
    (a) A mechanized claims processing and information retrieval system, 
hereafter referred to as an automated application processing and 
information retrieval system (APIRS), or the system, means a system of 
software and hardware used:
    (1) To introduce, control and account for data items in providing 
public assistance under the Aid to Families with Dependent Children 
(AFDC) State plan; and
    (2) To retrieve and produce utilization and management information 
about such aid and services as required by the single State agency and 
Federal government for program administration and audit purposes.
    (b) Planning means:
    (1) The preliminary project activity to determine the requirements 
necessitating the project, the activities to be undertaken, and the 
resources required to complete the project;
    (2) The preparation of an APD;
    (3) The preparation of a detailed project plan describing when and 
how the computer system will be designed and developed; and
    (4) The preparation of a detailed implementation plan describing 
specific training, testing, and conversion plans to install the computer 
system.
    (c) The following terms are defined at 45 CFR part 95, subpart F, 
Sec.95.605:

    Annually updated advance automatic data processing planning 
document;
    Design or System Design;
    Development;
    Initial advance automatic data processing planning document;
    Installation;
    Operation; and
    Software.

[51 FR 45330, Dec. 18, 1986, as amended at 53 FR 36579, Sept. 21, 1988; 
55 FR 4379, Feb. 7, 1990; 59 FR 30708, June 15, 1994]



Sec.205.36  State plan requirements.

    A State plan under title IV-A of the Social Security Act shall, at 
the option of the State, provide for the establishment and operation, in 
accordance with an (initial and annually updated) advance automated data 
processing planning document approved by SSA, of an automated statewide 
management information system designed effectively and efficiently, to 
assist management in the administration of an approved AFDC State plan. 
The submission process to amend the State plan is explained in Sec.
201.3. This system must be designed:
    (a) To automatically control and account for--
    (1) All the factors in the total eligibility determination process 
under the plan for aid, including but not limited to:
    (i) Identifiable correlation factors (such as social security 
numbers, names, dates of birth, home addresses, and mailing addresses 
(including postal ZIP codes), of all applicants and recipients of AFDC 
and the relative with whom any child who is an applicant or recipient is 
living).
    (A) To assure sufficient compatibility among the systems of 
different jurisdictions, and
    (B) To permit periodic screening to determine whether an individual 
is or has been receiving benefits from more than one jurisdiction.
    (ii) Checking records of applicants and recipients of such aid on a 
periodic basis with other agencies, both intra and inter-state, for 
eligibility determination, verification and payment as required by other 
provisions of the Social Security Act.
    (2) The costs, quality, and delivery of funds and services furnished 
to applicants for and recipients of such aid.
    (b) To notify the appropriate State officials of child support, food 
stamp, social service, and medical assistance programs approved under 
title XIX whenever a case/recipient for aid and services becomes 
ineligible or the amount of aid or services is changed.

[[Page 29]]

    (c) To electronically refer and exchange information with programs 
under titles IV-D and IV-F for purposes of assuring that benefits and 
services are provided in an integrated manner.
    (d) To provide for security against unauthorized access to, or use 
of, the data in the system.

[51 FR 13006, Apr. 17, 1986, as amended at 57 FR 47002, Oct. 14, 1992]



Sec.205.37  Responsibilities of the Administration for Children
and Families (ACF).

    (a) ACF shall not approve the initial and annually updated advance 
automatic data processing planning document unless the document, when 
implemented, will carry out the requirements of the law and the 
objectives of title IV-A (AFDC) Automated Application Processing and 
Information Retrieval System Guide. The initial advance automatic data 
processing planning document must include:
    (1) A requirements analysis, including consideration of the program 
mission, functions, organization, services, constraints and current 
support relating to such system;
    (2) A description of the proposed statewide management system, 
including the description of information flows, input data formats, 
output reports and uses;
    (3) The security and interface requirements to be employed in such 
statewide management system;
    (4) A description of the projected resource requirements including 
staff and other needs; and the resources available or expected to be 
available to meet these requirements;
    (5) A cost benefit analysis of alternative systems designs, data 
processing services and equipment in terms of qualitative and 
quantitative measures. The alternative systems considered should include 
the advantages of the proposed system over the alternatives and should 
indicate the period of time the system will be operated to justify the 
funds invested. ACF certified systems that are already in place in other 
States must be included in the alternatives to be considered and 
evaluated;
    (6) A plan for distribution of costs, containing the basis for 
rates, both direct and indirect, to be in effect under such a statewide 
management system;
    (7) An implementation plan with charts of development events, 
testing description, proposed acceptance criteria, and backup and 
fallback procedures to handle possible failure of a system; and
    (8) Evidence that the State's system will be compatible with those 
of the FSA to facilitate the exchange of data between the State and 
Federal system.
    (b) ACF shall on a continuing basis, review, assess, and inspect the 
planning, design, and operation of, statewide management information 
systems, with a view to determining whether, and to what extent, these 
systems meet and continue to meet the requirements under these 
regulations.
    (c) If ACF finds that any statewide management information system 
referred to in Sec.205.38 fails to comply substantially with criteria, 
requirements, and other undertakings prescribed by the approved advance 
automatic data processing planning document, approval of such document 
shall be suspended. The State will be given written notice of the 
suspension. The notice of suspension will state the reason for the 
suspension, whether the suspended system complies with the criteria for 
50 percent FFP under 45 CFR part 95, the actions required for future 
Federal funding, and the effective date of the suspension. The 
suspension shall be effective as of the date that the system failed to 
comply substantially with the approved APD. The suspension shall remain 
in effect until ACF makes a determination that such system complies with 
prescribed criteria, requirements, and other undertakings for future 
Federal funding. Should a State cease development of their approved 
system, either by voluntary withdrawal or as a result of Federal 
suspension, all Federal incentive funds invested to date that exceed the 
normal administrative FFP rate (50 percent) will be subject to 
recoupment.
    (d) ACF shall provide technical assistance to States as is deemed 
necessary to assist States to plan, design, develop, or install and 
provide for the security of the management information systems.

[[Page 30]]

    (e) Approvals of the systems by ACF under the provisions of this 
section will be undertaken only as a result of State applications for 
increased matching. The requirements of 45 CFR part 95, subpart E and 
subpart F apply.

[51 FR 13006, Apr. 17, 1986, as amended at 53 FR 36579, Sept. 21, 1988; 
55 FR 4379, Feb. 7, 1990; 56 FR 1493, Jan. 15, 1991; 59 FR 30709, June 
15, 1994]



Sec.205.38  Federal financial participation (FFP) for establishing
a statewide mechanized system.

    (a) Effective July 1, 1981 through March 31, 1994, FFP is available 
at 90 percent of expenditures incurred for planning, design, development 
or installation of a statewide automated application processing and 
information retrieval system which are consistent with an approved ADP. 
(Beginning April 1, 1994 the match rate available for development of 
title IV-A automated systems is 50 percent.) The 90 percent FFP includes 
the purchase or rental of computer equipment and software directly 
required for and used in the operation of this system.
    (b) ACF will approve the system provided the following conditions 
are met--
    (1) ACF determines that the system is likely to provide more 
efficient, economical, and effective administration of the AFDC program.
    (2) The system is compatible with the claims processing and 
information retrieval systems used in the administration of State plans 
approved under title XIX, and State programs where there is FFP under 
title XX.
    (3) The system meets the requirements referred to in Sec.205.36.
    (4) The system meets criteria established in the title IV-A (AFDC) 
Automated Application Processing and Information Retrieval System Guide 
issued by ACF and which provides specific standard requirements for 
major functions, such as automated eligibility determination, grant 
computation, verification, referral, management control, compability, 
and data security.
    (5) The State agency certifies that--
    (i) The State will have all ownership rights in software or 
modifications thereof and associated documentation designed or developed 
with 90 percent FFP under this section, except that the Department of 
Health and Human Services reserves a royalty-free, nonexclusive, and 
irrevocable license to reproduce, publish, or otherwise use, and to 
authorize others to use for Federal government purposes, such software, 
modifications, and documentation;
    (ii) Methods and procedures for properly charging the cost of all 
systems whether acquired from public or private sources shall be in 
accordance with Federal regulations in part 74 of this title and the 
applicable ACF title IV-A (AFDC) Automated Application Processing and 
Information Retrieval System Guide;
    (iii) The complete system planned, designed, developed, installed, 
and hardware acquired, with FFP under these regulations will be used for 
a period of time which is consistent with the advance planning document 
as approved, or which ACF determines is sufficient to justify the 
Federal funds invested;
    (iv) Information in the system will be safeguarded in accordance 
with applicable Federal law; and
    (v) Access to the system in all of its aspects, including design, 
development, and operation, including work performed by any source, and 
including cost records of contractors and subcontractors, shall be made 
available to the Federal Government by the State at intervals deemed 
necessary by ACF to determine whether the conditions for approval are 
being met and to determine its efficiency, economy and effectiveness.
    (c) If ACF suspends approval, as described in Sec.205.37, of the 
advance automated data processing planning document and/or system, FFP 
at the higher matching rate shall not be allowed for any costs incurred, 
until such time as the conditions for approval are met. Should the State 
fail to correct the deficiencies which led to the suspension within 90 
days of the date of notification of suspension or within a longer period 
of time agreed to by both the State and ACF, all Federal incentive funds 
invested to date that exceed the normal administrative FFP rate (50 
percent) will be disallowed.

[[Page 31]]

    (d) Should a State voluntarily withdraw its approved APD and cease 
development of the approved system, all Federal incentive funds invested 
to date that exceed the normal administrative FFP rate (50 percent) will 
be disallowed.
    (e) Once a State is certified as having met the requirements 
referred to in Sec.205.36 incentive funding will not be allowable for 
enhancements or other modifications unless these modifications are 
authorized by the Administation for Children and Families as a result of 
Federal legislative or regulatory change.

[51 FR 13007, Apr. 17, 1986, as amended at 53 FR 36579, Sept. 21, 1988; 
59 FR 30709, June 15, 1994]



Sec.205.44  [Reserved]



Sec.205.45  Federal financial participation in relation to State
emergency welfare preparedness.

    (a) Under title IV-A, Federal financial participation is available 
at the rate of 50 percent in expenditures for development and planning 
activities for emergency welfare preparedness. Such activities must 
relate to emergency welfare situations resulting from natural disasters, 
civil disorders, and enemy caused disasters, as prescribed in 
``Guidelines for the Preparation of State Emergency Welfare Services 
Plan'' issued by Social and Rehabilitation Service, DHHS publication No. 
(SRS) 72-23004. These activities include:
    (1) Safekeeping essential documents and records;
    (2) Planning and developing emergency operating capability for 
providing food, lodging, clothing, and welfare registration and inquiry;
    (3) Assuring that qualified individuals are responsible for the 
planning and operation of each welfare function essential under 
emergency conditions for care and services for public assistance 
recipients and potential recipients;
    (4) Coordinating with other government and voluntary welfare 
agencies, and welfare-related business and professional organizations 
and associations, in developing emergency operating plans and attaining 
operational readiness;
    (5) Preparing and maintaining data on kinds, numbers, and locations 
of essential welfare resources, including manpower;
    (6) Developing ability to assess emergency welfare resources and 
determining requirements necessary to care for public assistance cases 
in the event of disaster or attack;
    (7) Preparing plans for claiming and distributing the above 
resources;
    (8) Developing mutual aid agreements at State and local levels with 
neighboring welfare organizations;
    (9) Preparing and distributing written emergency operations plans 
for public assistance agencies and operating units;
    (10) Participating in preparedness exercises for the purpose of 
testing plans and determining the role of public assistance programs in 
relation to the overall preparedness program; and
    (11) Travel incidental to any of the above activities.
    (b) Federal financial participation is available at 50 percent under 
title IV-A for providing training in emergency welfare preparedness for 
all staff and for volunteers.
    (c) In Guam, Puerto Rico, and the Virgin Islands, Federal financial 
participation is available at the rate of 75 percent in expenditures for 
emergency welfare preparedness under titles I, X, XIV, XVI (AABD) of the 
Social Security Act.
    (d) The cost of these activities must be allocated to all programs 
benefited in accordance with part 74, subtitle A of title 45 of the Code 
of Federal Regulations.

[41 FR 23387, June 10, 1976, as amended at 51 FR 9203, Mar. 18, 1986]



Sec.205.50  Safeguarding information for the financial assistance 
programs.

    (a) State plan requirements. A State plan for financial assistance 
under title IV-A of the Social Security Act, must provide that:
    (1) Pursuant to State statute which imposes legal sanctions:
    (i) The use or disclosure of information concerning applicants and 
recipients will be limited to purposes directly connected with:

[[Page 32]]

    (A) The administration of the plan of the State approved under title 
IV-A, the plan or program of the State under title IV-B, IV-D, IV-E, or 
IV-F or under title I, X, XIV, XVI (AABD), XIX, XX, or the Supplemental 
Security Income (SSI) program established by title XVI. Such purposes 
include establishing eligibility, determining the amount of assistance, 
and providing services for applicants and recipients.
    (B) Any investigation, prosecution, or criminal or civil proceeding 
conducted in connection with the administration of any such plans or 
programs.
    (C) The administration of any other Federal or federally assisted 
program which provides assistance, in cash or in kind, or services, 
directly to individuals on the basis of need.
    (D) The verification to the Employment Security Agency, or other 
certifying agency that an individual has been an AFDC recipient for at 
least 90 days or is a WIN or WIN Demonstration participant pursuant to 
Pub. L. 97-34, the Economic Recovery Tax Act of 1981.
    (E) Any audit or similar activity, e.g., review of expenditure 
reports or financial review, conducted in connection with the 
administration of any such plan or program by any governmental entity 
which is authorized by law to conduct such audit or activity.
    (F) The administration of a State unemployment compensation program.
    (G) The reporting to the appropriate agency or official of 
information on known or suspected instances of physical or mental 
injury, sexual abuse or exploitation, or negligent treatment or 
maltreatment of a child receiving aid under circumstances which indicate 
that the child's health or welfare is threatened.
    (ii) The State agency has authority to implement and enforce the 
provisions for safeguarding information about applicants and recipients:
    (iii) Disclosure of any information that identifies by name or 
address any applicant or recipient to any Federal, State, or local 
committee or legislative body other than in connection with any activity 
under paragraph (a)(1)(i)(E) of this section is prohibited.
    (iv) Publication of lists or names of applicants and recipients will 
be prohibited. Exception. In respect to a State plan for financial 
assistance under title I, IVA, X, XIV, or XVI (AABD) of the Social 
Security Act, an exception to this restriction may be made by reason of 
the enactment or enforcement of State legislation, prescribing any 
conditions under which public access may be had to records of the 
disbursement of funds or payments under such titles within the State, if 
such legislation prohibits the use of any list or names obtained through 
such access to such records for commercial or political purposes.
    (v) The State or local agency responsible for the administration of 
the State plan has authority to disclose the current address of a 
recipient to a State or local law enforcement officer at his or her 
request. Such information is disclosed only to law enforcement officers 
who provide the name and Social Security number of the recipient and 
satisfactorily demonstrate that:
    (A) The recipient is a fugitive felon (as defined by the State);
    (B) The location or apprehension of such felon is within the law 
officer's official duties; and
    (C) The request is made in the proper exercise of those duties.
    (2) The agency will have clearly defined criteria which govern the 
types of information that are safeguarded and the conditions under which 
such information may be released or used. Under this requirement:
    (i) Types of information to be safeguarded include but are not 
limited to:
    (A) The names and addresses of applicants and recipients and amounts 
of assistance provided (unless excepted under paragraph (a)(1)(iv) of 
this section);
    (B) Information related to the social and economic conditions or 
circumstances of a particular individual including information obtained 
from any agency pursuant to Sec.205.55; information obtained from the 
Internal Revenue Service (IRS) and the Social Security Administration 
(SSA) must be safeguarded in accordance with procedures set forth by 
those agencies;
    (C) Agency evaluation of information about a particular individual;

[[Page 33]]

    (D) Medical data, including diagnosis and past history of disease or 
disability, concerning a particular individual.
    (ii) The release or use of information concerning individuals 
applying for or receiving financial assistance is restricted to persons 
or agency representatives who are subject to standards of 
confidentiality which are comparable to those of the agency 
administering the financial assistance programs.
    (iii) Except in the case of information requested pursuant to 
Sec. Sec.205.55 and 205.56, or in the case of an emergency situation 
when the individual's prior consent for the release of information 
cannot be obtained, the family or individual is informed whenever 
possible of a request for information from an outside source, and 
permission is obtained to meet the request. In an emergency situation 
when the individual's consent for the release of information cannot be 
obtained, the individual will be notified immediately.
    (iv) In the event of the issuance of a subpoena for the case record 
or for any agency representative to testify concerning an applicant or 
recipient, the court's attention is called, through proper channels to 
the statutory provisions and the policies or rules and regulations 
against disclosure of information.
    (v) The same policies are applied to requests for information from a 
governmental authority, the courts, or a law enforcement officer (except 
as provided for under paragraph (a)(1)(v) with respect to fugitive 
felons) as from any other outside source.
    (3)(i) The agency will publicize provisions governing the 
confidential nature of information about applicants and recipients, 
including the legal sanctions imposed for improper disclosure and use, 
and will make these provisions available to applicants and recipients 
and to other persons and agencies to whom information is disclosed.
    (ii) All information obtained pursuant to the income and eligibility 
verification requirements at Sec. Sec.205.55 and 205.56 will be stored 
and processed so that no unauthorized personnel can acquire or retrieve 
the information by any means.
    (iii) All persons with access to information obtained pursuant to 
the income and eligibility verification requirements under Sec. Sec.
205.55 and 205.56 will be advised of the circumstances under which 
access is permitted and the sanctions imposed for illegal use or 
disclosure of the information.
    (4) All materials sent or distributed to applicants, recipients, or 
medical vendors, including material enclosed in envelopes containing 
checks, will be limited to those which are directly related to the 
administration of the program and will not have political implications 
except to the extent required to implement the National Voter 
Registration Act of 1993 (NVRA), Pub. L. 103-31. Under this requirement:
    (i) Specifically excluded from mailing or distribution are materials 
such as ``holiday'' greetings, general public announcements, alien 
registration notices, and partisan voting information.
    (ii) Not prohibited from such mailing or distribution are materials 
in the immediate interest of the health and welfare of applicants and 
recipients, such as announcements of free medical examinations, 
availability of surplus food, and consumer protection information;
    (iii) Only the names of persons directly connected with the 
administration of the program are contained in material sent or 
distributed to applicants, recipients, and vendors, and such persons are 
identified only in their official capacity with the State or local 
agency.
    (iv) Under NVRA, the agency must distribute voter information and 
registration materials as specified in NVRA.
    (b) Voluntary voter registration activities. For States that are 
exempt from the requirements of NVRA, voter registration may be a 
voluntary activity so long as the provisions of section 7(a)(5) of NVRA 
are observed.
    (c) State plan requirements for programs of financial assistance in 
Puerto Rico, the Virgin Islands, and Guam. A State plan under title I, 
X, XIV, or XVI (AABD) of the Social Security Act must meet all the 
requirements of paragraph (a) of this section, with the exception of 
paragraphs (a)(1)(i) (D) and (E), of this section, and also provide for 
disclosure

[[Page 34]]

of information concerning applicants and recipients for use by public 
officials who require such information in connection with their official 
duties. Under this requirement, such information shall be available only 
to public officials who certify in writing that:
    (1) They are public officials as defined by State or Federal law of 
general applicability; and
    (2) The information to be disclosed and used is required in 
connection with their official duties.

[45 FR 56684, Aug. 25, 1980, as amended at 47 FR 46506, Oct. 19, 1982; 
49 FR 35599, Sept. 10, 1984; 51 FR 7214, Feb. 28, 1986; 51 FR 9203, Mar. 
18, 1986; 54 FR 42243, Oct. 13, 1989; 57 FR 30157, July 8, 1992; 58 FR 
49220, Sept. 22, 1993; 59 FR 26142, May 19, 1994; 61 FR 58143, Nov. 13, 
1996]



Sec.205.51  Income and eligibility verification requirements.

    (a) A State plan under title I, IV-A, X, XIV or XVI (AABD) of the 
Social Security Act must provide that there be an Income and Eligibility 
Verification System in the State. Income and Eligibility Verification 
System (IEVS) means a system through which the State agency:
    (1) Co-ordinates data exchanges with other Federally-assisted 
benefit programs covered by section 1137(b) of the Act;
    (2) Requests and uses income and benefit information as specified in 
section 1137(a)(2) of the Act and Sec. Sec.205.55 and 205.56; and
    (3) Adheres to standardized formats and procedures in exchanging 
information with the other programs and agencies and in providing such 
information as may be useful to assist Federal, State and local agencies 
in the administration of the child support program and the Social 
Security Administration in the administration of the title II and title 
XVI (SSI) programs. The State agency (UC) information from the State 
Wage Information Collection Agency, described in paragraph (b) of this 
section; from the agency administering the State's unemployment 
compensation program (UC) under section 3304 of the Internal Revenue 
Code; from agencies in other States cited in Sec.205.55(a)(5), as set 
forth by the Secretary; from SSA, as set forth by the Commissioner of 
Social Security; and from IRS, as set forth by the Commissioner of 
Internal Revenue.
    (b) A State plan under title I, IV-A, X, XIV or XVI (AABD) of the 
Social Security Act must provide that, as part of its Income and 
Eligibility Verification System, there be a State Wage Information 
Collection Agency in the State. State Wage Information Collection Agency 
(SWICA) means the State agency receiving quarterly wage reports from 
employers in the State (which may be the agency administering the 
State's unemployment compensation program), or an alternative system 
which has been determined by the Secretary of Labor, in consultation 
with the Secretary of Agriculture and the Secretary of Health and Human 
Services, to be as effective and timely in providing employment related 
income and eligibility information.
    (c) Wage information maintained by a SWICA which receives quarterly 
wage reports from employers but does not use these reports for 
computation of employment compensation shall:
    (1) Contain the social security number, first and last name and 
middle initial, wages earned for the period of the report, and an 
identifier of the employer (such as name and address) for each employee;
    (2) Include all employers covered by the State's UC law and require 
such employers to report wage information (as specified above) for each 
employee within 30 days from the end of each calendar quarter;
    (3) Accumulate earnings reported by employers for periods no longer 
than calendar quarters;
    (4) Be machine readable; i.e., maintained in a fashion that permits 
automated processing; and
    (5) Be available to other agencies in the State, to agencies in 
other States, and to Social Security Administration for establishing or 
verifying eligibility and benefit amounts under titles II and XVI of the 
Social Security Act, pursuant to agreements as required in Sec.205.58.
    (d) A State shall obtain prior written approval from the Department, 
where appropriate, in accordance with 45 CFR 95.611, for any new 
developmental costs

[[Page 35]]

for automatic data processing equipment and services incurred in meeting 
IEVS requirements.

[51 FR 7214, Feb. 28, 1986]



Sec.205.52  Furnishing of social security numbers.

    The State plan under title I, IV-A, X, XIV, or CVI (AABD) of the 
Social Security Act must provide that:
    (a) As a condition of eligibility, each applicant for or recipient 
of aid will be required:
    (1) To furnish to the State or local agency a social security 
account number, hereinafter referred to as the SSN (or numbers, if more 
than one has been issued); and
    (2) If he cannot furnish a SSN (either because such SSN has not been 
issued or is not known), to apply for such number through procedures 
adopted by the State or local agency with the Social Security 
Administration. If such procedures are not in effect, the applicant or 
recipient shall apply directly for such number, submit verification of 
such application, and provide the number upon its receipt.
    (b) The State or local agency will assist the applicant or recipient 
in making applications for SSNs and will comply with the procedures and 
requirements established by the Social Security Administration for 
application, issuance, and verification of social security account 
numbers.
    (c) The State or local agency will not deny, delay, or discontinue 
assistance pending the issuance or verfication of such numbers if the 
applicant or recipient has complied with the requirements of paragraph 
(a) of this section.
    (d) The State or local agency will use such account numbers, in 
addition to any other means of identification it may determine to 
employ, in the administration of the plan.
    (e) ``Applicant'' and ``recipient'' include for the purposes of this 
section the individuals seeking or receiving assistance and any other 
individual whose needs are considered in determining the amount of 
assistance.
    (f) The State or local agency shall notify the applicant or 
recipient that the furnishing of the SSN is a condition of eligibility 
for assistance required by section 1137 of the Social Security Act and 
that the SSN will be utilized in the administration of the program.
    (g) The State agency will submit all unverified social security 
numbers to the Social Security Administration (SSA) for verification. 
The State agency may accept as verified a social security number 
provided directly to the State agency by SSA or by another Federal or 
federally-assisted benefit program which has received the number from 
SSA or has submitted it to SSA for verification.

[51 FR 7217, Feb. 28, 1986]



Sec.205.55  Requirements for requesting and furnishing eligibility 
and income information.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) Except as provided in paragraph (b), the State agency will 
request through the IEVS:
    (1) Wage information from the SWICA for all applicants at the first 
opportunity following receipt of the application and for all recipients 
on a quarterly basis.
    (2) Unemployment compensation information from the agency 
administering the State's unemployment compensation program under 
section 3304 of the Internal Revenue Code of 1954 and section 303 of the 
Act as follows:
    (i) For applicants at the first opportunity following receipt of the 
application and in each of the first three months in which the 
individual is receiving aid, unless the individual is found to be 
receiving unemployment compensation, in which case the information will 
be requested until benefits are exhausted; and
    (ii) In each of the first three months following any recipient-
reported loss of employment, unless the individual is found to be 
receiving unemployment compensation, in which case the information will 
be requested until the benefits are exhausted.
    (3) All available information maintained by the Social Security 
Administration for all applicants at the first opportunity following 
receipt of the application in the manner set forth by the Commissioner 
of Social Security.

[[Page 36]]

The State agency will also request such information for all recipients 
as of the effective date of this provision for whom such information has 
not previously been requested.
    (4) Unearned income information from the Internal Revenue Service 
available under section 6103 (l)(7)(B) of the Internal Revenue Code of 
1954, for all applicants at the first opportunity following receipt of 
the application for all recipients on a yearly basis. The request shall 
be made at the time and in the manner set forth by the Commissioner of 
Internal Revenue.
    (5) As necessary, any income or other information affecting 
eligibility available from agencies in the State or other States 
administering:
    (i) An AFDC program (in another State) under title IV-A of the 
Social Security Act;
    (ii) A Medicaid program under title XIX of the Social Security Act;
    (iii) An unemployment compensation program (in another State) under 
section 3304 of the Internal Revenue Code of 1954;
    (iv) A Food Stamp program under the Food Stamp Act of 1977, as 
amended;
    (v) Any State program administered under plan approved under title 
I, X, XIV, or XVI (AABD) of the Social Security Act; and
    (vi) A SWICA (in another State).
    (b)(1) With respect to individuals who cannot furnish an SSN at 
application, information specified in paragraph (a) will be requested at 
the first opportunity provided by each source after the State agency is 
provided with the SSN.
    (2) For the purposes of this section, applicants and recipients 
shall also include any other individuals whose income or resources are 
considered in determining the amount of assistance, if the State agency 
has obtained the SSN of such individuals.
    (c) The State agency must furnish, when requested, income, 
eligibility and benefit information to:
    (1) Agencies in the State or other States administering the programs 
cited in paragraph (a)(5) of this section, in accordance with specific 
agreements as described in Sec.205.58;
    (2) The agency in the State or other States administering a program 
under title IV-D of the Social Security Act; and
    (3) The Social Security Administration for purposes of establishing 
or verifying eligibility or benefit amounts under title II and XVI (SSI) 
of the Social Security Act.
    (d) The Secretary may, based upon application from a State, permit a 
State to obtain and use income and eligibility information from an 
alternate source or sources in order to meet any requirement of 
paragraph (a) of this section. The State agency must demonstrate to the 
Secretary that the alternate source or sources is as timely, complete 
and useful for verifying eligibility and benefit amounts. The Secretary 
will consult with the Secretary of Agriculture and the Secretary of 
Labor prior to approval of a request. The State must continue to meet 
the requirements of this section unless the Secretary has approved the 
request.
    (e) The State agency must, upon request, reimburse another agency 
for reasonable costs incurred in furnishing income and eligibility 
information as prescribed in this section, including new developmental 
costs associated with furnishing such information, in accordance with 
specific agreements as described in Sec.205.58.

[51 FR 7215, Feb. 28, 1986]



Sec.205.56  Requirements governing the use of income and eligibility 
information.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) The State agency will use the information obtained under Sec.
205.55, in conjunction with other information, for:
    (1) Determining individuals' eligibility for assistance under the 
State plan and determining the amount of assistance. States wishing to 
exclude categories of information items from follow-up must submit for 
the Secretary's approval a follow-up plan describing the categories of 
information items which it proposes to exclude. For each category, the 
State must provide a reasonable justification that follow-up is not 
cost-effective. A formal cost-benefit analysis is not required. A State 
may exclude information items from

[[Page 37]]

the following data sources without written justification if followed up 
previously from another source: Unemployment compensation information 
received from the Internal Revenue Service, and earnings information 
received from the Social Security Administration. Information items in 
these categories which are not duplicative, but provide new leads, may 
not be excluded without written justification. A State may submit a 
follow-up plan or alter its plan at any time by notifying the Secretary 
and submitting the necessary justification. The Secretary will approve 
or disapprove categories of information items to be excluded under the 
plan within 60 days of its submission. Those categories approved by the 
Secretary will constitute an approved State follow-up plan for IEVS. For 
those information items not excluded from follow-up,
    (i) The State agency shall review and compare the information 
obtained from each data exchange against information contained in the 
case record to determine whether it affects the applicant's or the 
recipient's eligibility or the amount of assistance.
    (ii) The State agency shall verify that the information is accurate 
and applicable to case circumstances either through the applicant or 
recipient or through a third party, if such verification is determined 
appropriate based on agency experience or is required under paragraph 
(b) of this section.
    (iii) For applicants, if the information is received during the 
application period, the State agency shall use such information, to the 
extent possible, in making the eligibility determination.
    (iv) For individuals who are recipients when the information is 
received or for whom a decision could not be made prior to authorization 
of benefits, the State agency shall within forty-five (45) days of its 
receipt, initiate a notice of case action or an entry in the case record 
that no case action is necessary, except that: Completion of action may 
be delayed beyond forty-five (45) days on no more than twenty (20) 
percent of the information items targeted for follow-up, if:
    (A) The reason that the action cannot be completed within forty-five 
(45) days is the nonreceipt of requested third-party verification; and
    (B) Action is completed promptly, when third party verification is 
received or at the next time eligibility is redetermined, whichever is 
earlier. If action is completed when eligibility is redetermined and 
third party verification has not been received, the State agency shall 
make its decision based on information provided by the recipient and any 
other information in its possession.
    (v) The State agency shall use appropriate procedures to monitor the 
timeliness requirements specified in this subparagraph;
    (2) Investigations to determine whether recipients received 
assistance under the State plan to which they were not entitled; and
    (3) Criminal or civil prosecutions based on receipt of assistance 
under the State plan to which recipients were not entitled.
    (b)(1) State agencies shall not take any adverse action to 
terminate, deny, suspend or reduce benefits to an applicant or 
recipient, based on information produced by a Federal computer matching 
program that is subject to the requirements in the Computer Matching and 
Privacy Protection Act (CMPPA) unless (i) The information has been 
independently verified in accordance with the independent verification 
requirements set out in the State agency's written agreement as required 
by Sec.205.58 or (ii) The independent verification requirement has 
been waived by the Department's Data Integrity Board.
    (2) The CMPPA defines a matching program as any computerized 
comparison of (i) Two or more automated systems of records or a system 
of records with non-Federal records for the purpose of (A) Establishing 
or verifying the eligibility of, or continuing compliance with statutory 
and regulatory requirements by, applicants for, recipients or 
beneficiaries of, participants in, or providers of services with respect 
to, cash or in-kind assistance or payments under Federal benefit 
programs, or (B) Recouping payments or delinquent debts under such 
Federal benefit programs, or (ii) Two or more automated Federal 
personnel or payroll system of

[[Page 38]]

records or a system of Federal personnel or payroll record with non-
Federal records.
    (c) If the agency intends to reduce, suspend, terminate or deny 
benefits as a result of the actions taken pursuant to this section, the 
agency must provide notice and the opportunity for a fair hearing in 
accordance with Sec.205.10(a).

[51 FR 7215, Feb. 28, 1986, as amended at 53 FR 52712, Dec. 29, 1988; 57 
FR 53859, Nov. 13, 1992]



Sec.205.57  Maintenance of a machine readable file; requests for
income and eligibility information.

    A State plan under title I, IV--A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) The State agency will maintain a file which is machine readable, 
i.e., which is maintained in a fashion that permits automated 
processing, and which contains the first and last name and verified 
social security number of each person applying for or receiving 
assistance under the plan.
    (b) The State agency will use this file to exchange data with other 
agencies pursuant to Sec.205.55.

[51 FR 7216, Feb. 28, 1986]



Sec.205.58  Income and eligibility information; specific agreements
required between the State agency and the agency supplying the
information.

    (a) A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that, in carrying out the requirements 
of Sec. Sec.205.55 and 205.56, the State agency will enter into 
specific written agreements as described in paragraph (b) of this 
section with those agencies providing income and eligibility 
information. Agreements with Federal agencies are subject to the 
approval by the appropriate Federal Data Integrity Boards. The 
agreements will contain the procedure to be used in requesting and 
providing information.
    (b) These agreements will include, but need not be limited to, the 
following:
    (1) Purpose of the request;
    (2) Identification of all agency officials, by position with 
authority to request information;
    (3) Methods and timing of the requests for information, including 
the machine readable format to be used, the period of time needed to 
furnish the requested information and the basis for establishing this 
period. Agreements with the SWICA and the agency administering the 
Unemployment Compensation program in the State must provide that the 
State agency shall obtain information no less frequently than twice 
monthly;
    (4) The type of information and reporting periods for which 
information will be provided and the verification methodologies to be 
used;
    (5) Safeguards limiting release or redisclosure as required by 
Federal or State law or regulation, including the requirements of Sec.
205.50 and as may be required by guidelines issued by the Secretary; and
    (6) Reimbursement, if any, for the costs of furnishing the 
information requested by the State agency, including new developmental 
costs associated with furnishing such information.

[51 FR 7216, Feb. 28, 1986, as amended at 57 FR 53860, Nov. 13, 1992]



Sec.205.60  Reports and maintenance of records.

    A State plan under title I, IV--A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that:
    (a) The State agency will maintain or supervise the maintenance of 
records necessary for the proper and efficient operation of the plan, 
including records regarding applications, determination of eligibility, 
the provision of financial assistance, and the use of any information 
obtained under Sec.205.55, with respect to individual applications 
denied, recipients whose benefits have been terminated, recipients whose 
benefits have been modified, and the dollar value of these denials, 
terminations and modifications. Under this requirement, the agency will 
keep individual records which contain pertinent facts about each 
applicant and recipient. The records will include information concerning 
the date of application and the date and basis of its disposition; facts 
essential to the determination of

[[Page 39]]

initial and continuing eligibility (including the individual's social 
security number, need for, and provision of financial assistance); and 
the basis for discontinuing assistance.
    (b) The agency shall report as the Secretary prescribes for the 
purpose of determining compliance with the requirements of Sec. Sec.
205.55 and 205.56 and for evaluating the effectiveness of the Income and 
Eligibility Verification System.

[51 FR 7216, Feb. 28, 1986]



Sec.205.70  Availability of agency program manuals.

    State plan requirements. A State plan for financial assistance under 
title I, IV-A, IV-B, X, XIV, or XVI (AABD) of the Social Security Act 
must provide that:
    (a) Program manuals and other policy issuances which affect the 
public, including the State agency's rules and regulations governing 
eligibility, need and amount of assistance, and recipient rights and 
responsibilities will be maintained in the State office and in each 
local and district office for examination on regular workdays during 
regular office hours by individuals, upon request for review, study, or 
reproduction by the individual.
    (b)(1) A current copy of such material will be made available 
without charge or at a charge related to the cost of reproduction for 
access by the public through custodians who (i) request the material for 
this purpose, (ii) are centrally located and publicly accessible to a 
substantial number of the recipient population they serve, and (iii) 
agree to accept responsibility for filing all amendments and changes 
forwarded by the agency.
    (2) Under this requirement the material, if requested, must be made 
available without charge or at a charge related to the cost of 
reproduction to public or university libraries, the local or district 
offices of the Bureau of Indian Affairs, and welfare or legal services 
offices or organizations. The material may also be made available, with 
or without charge, to other groups and to individuals. Wide availability 
of agency policy materials is recommended.
    (c) Upon request, the agency will reproduce without charge or at a 
charge related to the cost of reproduction the specific policy materials 
necessary for an applicant or recipient, or his representative, to 
determine whether a fair hearing should be requested or to prepare for a 
fair hearing; and will establish policies for reproducing policy 
materials without charge, or at a charge related to cost, for any 
individual who requests such material for other purposes.

[38 FR 26378, Sept. 20, 1973, as amended at 44 FR 17941, Mar. 23, 1979; 
45 FR 56685, Aug. 25, 1980]



Sec.205.100  Single State agency.

    (a)(1) State plan requirements. A State plan for financial 
assistance under title I, IV-A, X, XIV, or XVI (AABD) of the Social 
Security Act must:
    (i) Provide for the establishment or designation of a single State 
agency with authority to administer or supervise the administration of 
the plan.
    (ii) Include a certification by the attorney general of the State 
identifying the single State agency and citing the legal authority under 
which such agency administers, or supervises the administration of, the 
plan on a statewide basis including the authority to make rules and 
regulations governing the administration of the plan by such agency or 
rules and regulations that are binding on the political subdivisions, if 
the plan is administered by them.
    (2) [Reserved]
    (b) Conditions for implementing the requirements of paragraph (a) of 
this section. (1) The State agency will not delegate to other than its 
own officials its authority for exercising administrative discretion in 
the administration or supervision of the plan including the issuance of 
policies, rules, and regulations on program matters.
    (2) In the event that any rules and regulations or decisions of the 
single State agency are subject to review, clearance, or other action by 
other offices or agencies of the State government, the requisite 
authority of the single State agency will not be impaired.
    (3) In the event that any services are performed for the single 
State agency

[[Page 40]]

by other State or local agencies or offices, such agencies and offices 
must not have authority to review, change, or disapprove any 
administrative decision of the single State agency, or otherwise 
substitute their judgment for that of the agency as to the application 
of policies, rules, and regulations promulgated by the State agency.

[45 FR 56685, Aug. 25, 1980]



Sec.205.101  Organization for administration.

    (a) A State plan for financial assistance under title I, IV-A, X, 
XIV, or XVI (AABD) of the Social Security Act shall include a 
description of the organization and functions of the single State agency 
and an organizational chart of the agency.
    (b) Where applicable, a State plan for financial assistance under 
title I, IV-A, X, XIV, or XVI (AABD) of the act shall identify the 
organizational unit within the State agency which is responsible for 
operation of the plan and shall include a description of its 
organization and functions and an organizational chart of the unit.

[45 FR 56685, Aug. 25, 1980]



Sec.205.120  Statewide operation.

    (a) State plan requirements. A State plan for financial assistance 
under title I, IV-A, X, XIV, or XVI (AABD) of the Social Security Act 
must provide that:
    (1) It shall be in operation, through a system of local offices, on 
a statewide basis in accordance with equitable standards for assistance 
and administration that are mandatory throughout the State;
    (2) If administered by political subdivisions of the State, the plan 
will be mandatory on such political subdivisions;
    (3) The State agency will assure that the plan is continuously in 
operation in all local offices or agencies through:
    (i) Methods for informing staff of State policies, standards, 
procedures and instructions; and
    (ii) Regular planned examination and evaluation of operations in 
local offices by regularly assigned State staff, including regular 
visits by such staff; and through reports, controls, or other necessary 
methods.
    (b) [Reserved]

[39 FR 16971, May 10, 1974, as amended at 44 FR 17942, Mar. 23, 1979; 45 
FR 56686, Aug. 25, 1980]



Sec.205.130  State financial participation.

    State plan requirements:
    (a) A State plan for financial assistance under title I, IV-A, X, 
XIV, or XVI (AABD) of the Social Security Act must provide that:
    (1) State (as distinguished from local) funds will be used in both 
assistance and administration; and
    (2) State and Federal funds will be apportioned among the political 
subdivisions of the State on a basis consistent with equitable treatment 
of individuals in similar circumstances throughout the State.
    (b) A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Act must provide further that State funds will be used to pay a 
substantial part of the total costs of the assistance programs.

[45 FR 56686, Aug. 25, 1980]



Sec.205.150  Cost allocation.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act must provide that the State agency will have an 
approved cost allocation plan on file with the Department in accordance 
with the requirements contained in subpart E of 45 CFR part 95. Subpart 
E also sets forth the effect on FFP if the requirements contained in 
that subpart are not met.

[47 FR 17508, Apr. 23, 1982]



Sec.205.160  Equipment--Federal financial participation.

    Claims for Federal financial participation in the cost of equipment 
for the cash assistance programs under titles I, IV-A, X, XIV, XVI 
[AABD] and for the separate administrative unit established under 
section 402(a)(19)(G) of the Social Security Act are to be determined in 
accordance with subpart G or 45 CFR part 95. Requirements concerning the 
management and disposition of equipment under these titles are also 
prescribed in subpart G of 45 CFR part 95.

[47 FR 41576, Sept. 21, 1982]

[[Page 41]]



Sec.205.170  State standards for office space, equipment, and facilities.

    State plan requirements: A State plan for financial assistance under 
title I, IV-A, X, XIV, or XVI(AABD) of the Social Security Act must 
provide that:
    (a) The State agency will establish and maintain standards for 
office space, equipment, and facilities that will adequately and 
effectively meet program and staff needs. Under this requirement, 
offices must be well marked and clearly identifiable in the community as 
a public service.
    (b) The State agency will assure that the standards are continuously 
in effect in all State and local offices or agencies, including agency 
suboffices, and special centers through:
    (1) Making information about the standards available to State and 
local staff and other appropriate persons;
    (2) Regular planned evaluation of housing and facilities by 
regularly assigned staff through visits, reports, controls and other 
necessary methods;
    (3) Methods for enforcement when necessary to secure compliance with 
State standards.

[36 FR 3862, Feb. 27, 1971, as amended at 45 FR 56686, Aug. 25, 1980]



Sec.205.190  Standard-setting authority for institutions.

    (a) State plan requirements. If a State plan for financial 
assistance under title I, X, XIV, or XVI(AABD) of the Social Security 
Act includes aid or assistance to individuals in institutions as defined 
in Sec.233.60(b) (1) and (2) of this chapter the plan must:
    (1) Provide for the designation of a State authority or authorities 
which shall be responsible for establishing and maintaining standards 
for such institutions;
    (2) Provide that the State agency will keep on file and make 
available to FSA, OFA upon request:
    (i) A listing of the types or kinds of institutions in which an 
individual may receive financial assistance;
    (ii) A record naming the State authority(ies) responsible for 
establishing and maintaining standards for such types of institutions;
    (iii) The standards to be utilized by such State authority(ies) for 
approval or licensing of institutions including, to the extent 
applicable, standards related to the following factors:
    (a) Health (dietary standards and accident prevention);
    (b) Humane treatment;
    (c) Sanitation;
    (d) Types of construction;
    (e) Physical facilities, including space and accommodations per 
person;
    (f) Fire and safety,
    (g) Staffing, in number and qualifications, related to the purposes 
and scope of services of the institution;
    (h) Resident records;
    (i) Admission procedures;
    (j) Administrative and fiscal records;
    (k) The control by the individual, or his guardian or protective 
payee, of the individual's personal affairs.
    (3) Provide for cooperative arrangements with the standard-setting 
authority(ies) in the development of standards directed toward assuring 
adequate quality of care; in upgrading of institutional programs and 
practice; in actions necessary to close institutions that mistreat or 
are hazardous to the safety of the patients; and in planning so that 
institutions may be geographically located in accordance with need.
    (b) Federal financial participation. (1) Federal financial 
participation is available in staff and related costs of the State or 
local agency that are necessary to discharge the responsibilities of the 
State agency under this section, including such costs for staff:
    (i) Participating with other agencies and community groups in 
activities to set up the authority(ies) and to advise on the formulation 
of policy for the establishment and maintenance of standards;
    (ii) On loan for a time limited period to work with the standard-
setting authority(ies) in upgrading institutional care;
    (iii) Engaged in the function of coordination in States where there 
is more than one authority; and
    (iv) Engaged in adjusting complaints and making reports and 
recommendations to the standard-setting authority(ies) on conditions 
which appear to be in violation of such standards.
    (2) Federal financial participation is not available in the costs 
incurred by the standard-setting authority(ies) in

[[Page 42]]

establishing and maintaining standards for institutions.

[36 FR 3862, Feb. 27, 1971, as amended at 45 FR 56686, Aug. 25, 1980; 53 
FR 36580, Sept. 21, 1988]



PART 206_APPLICATION, DETERMINATION OF ELIGIBILITY AND FURNISHING 
ASSISTANCE_PUBLIC ASSISTANCE PROGRAMS--Table of Contents



    Authority: Sections 402 and 1102 of the Social Security Act (42 
U.S.C. 602 and 1302) and Pub. L. No. 97-248, 96 Stat. 324, and Pub. L. 
No. 99-603, 100 Stat. 3359.



Sec.206.10  Application, determination of eligibility and furnishing
of assistance.

    (a) State plan requirements. A State plan under title I, IV-A, X, 
XIV, or XVI(AABD), of that Social Security Act shall provide that:
    (1) Each individual wishing to do so shall have the opportunity to 
apply for assistance under the plan without delay. Under this 
requirement:
    (i) Each individual may apply under whichever of the State plan 
plans he chooses;
    (ii) The agency shall require a written application, signed under a 
penalty of perjury, on a form prescribed by the State agency, from the 
applicant himself, or his authorized representative, or, where the 
applicant is incompetent or incapacitated, someone acting responsibly 
for him. When an individual is required to be included in an existing 
assistance unit pursuant to paragraph (a)(1)(vii), such individual will 
be considered to be included in the application, as of the date he is 
required to be included in the assistance unit;
    (iii) An applicant may be assisted, if he so desires, by an 
individual(s) of his choice (who need not be a lawyer) in the various 
aspects of the application process and the redetermination of 
eligibility and may be accompanied by such individual(s) in contacts 
with the agency and when so accompanied may also be represented by them.
    (iv)-(v) [Reserved]
    (vi) Every recipient in a State which provides a supplemental 
payment under Sec.233.27 of this chapter shall have an opportunity to 
request that payment without delay.
    (vii) For AFDC only, in order for the family to be eligible, an 
application with respect to a dependent child must also include, if 
living in the same household and otherwise eligible for assistance:
    (A) Any natural or adoptive parent, or stepparent (in the case of 
States with laws of general applicability); and
    (B) Any blood-related or adoptive brother or sister; Exception: 
needs and income of disqualified alien siblings, pursuant to Sec.
233.50(c), are not considered in determining the eligibility and payment 
of an otherwise eligible dependent child.
    (2)(i) Applicants shall be informed about the eligibility 
requirements and their rights and obligations under the program. Under 
this requirement individuals are given information in written form, and 
orally as appropriate, about coverage, conditions of eligibility, scope 
of the program, and related services available, and the rights and 
responsibilities of applicants for and recipients of assistance. 
Specifically developed bulletins or pamphlets explaining the rules 
regarding eligibility and appeals in simple, understandable terms are 
publicized and available in quantity.
    (ii) Procedures shall be adopted which are designed to assure that 
recipients make timely and accurate reports of any change in 
circumstances which may affect their eligibility or the amount of 
assistance.
    (iii) All applicants for and recipients of assistance shall be 
notified in writing at the time of application and on redetermination 
that eligibility and income information will be regularly requested from 
agencies specified in Sec.205.55 and will be used to aid in 
determining their eligibility for assistance.
    (3) A decision shall be made promptly on applications, pursuant to 
reasonable State-established time standards not in excess of:
    (i) 45 days for OAA, AFDC, AB, AABD (for aged and blind); and
    (ii) 60 days for APTD, AABD (for disabled). Under this requirement, 
the applicant is informed of the agency's time standard in acting on 
applications

[[Page 43]]

which covers the time from date of application under the State plan to 
the date that the assistance check, or notification of denial of 
assistance or change of award is mailed to the applicant or recipient. 
The State's time standards apply except in unusual circumstances (e.g., 
where the agency cannot reach a decision because of failure or delay on 
the part of the applicant or an examining physician, or because of some 
administrative or other emergency that could not be controlled by the 
agency), in which instances the case record shows the cause for the 
delay. The agency's standards of promptness for acting on applications 
or redetermining eligibility shall not be used as a waiting period 
before granting aid, or as a basis for denial of an application or for 
terminating assistance.
    (4) Adequate notice shall be sent to applicants and recipients to 
indicate that assistance has been authorized (including the amount of 
financial assistance) or that it has been denied or terminated. Under 
this requirement, adequate notice means a written notice that contains a 
statement of the action taken, and the reasons for and specific 
regulations supporting such action, and an explanation of the 
individual's right to request a hearing.
    (5)(i) Financial assistance and medical care and services included 
in the plan shall be furnished promptly to eligible individuals without 
any delay attributable to the agency's administrative process, and shall 
be continued regularly to all eligible individuals until they are found 
to be ineligible. Under this requirement there must be arrangements to 
assist applicants and recipients in obtaining medical care and services 
in emergency situations on a 24-hour basis, 7 days a week.
    (ii) Assistance will not be denied, delayed, or discontinued pending 
receipt of income or other information requested under Sec.205.55, if 
other evidence establishes the individual's eligibility for assistance.
    (6) Assistance shall begin as specified in the State plan, which:
    (i) For financial assistance.
    (A) Must be no later than:
    (1) The date of authorization of payment, or
    (2) Thirty days in OAA, AFDC, AB, and AABD (as to the aged and 
blind), and 60 days in APTD and AABD (as to the disabled), from the date 
of receipt of a signed and completed application form, whichever is 
earlier: Provided, That the individuals then met all the eligibility 
conditions, and
    (B) For purposes of Federal financial participation in OAA, AB, 
APTD, and AABD, may be as early as the first of the month in which an 
application has been received and the individual meets all the 
eligibility conditions; and
    (C) In AFDC, for purposes of Federal financial participation, may be 
as early as the date of application provided that the assistance unit 
meets all the eligibility conditions; and
    (D) In AFDC, States that pay for the month of application must 
prorate the payment for that month by multiplying the amount payable if 
payment were made for the entire month including special needs in 
accordance with Sec.233.34 by the ratio of the days in the month 
including and following the date of application (or, at State option, 
the date of authorization of payment) to the total number of days in 
such month. The State plan may provide for using a standard 30-day month 
to determine the prorated amount.
    (7) In cases of proposed action to terminate, discontinue, suspend 
or reduce assistance, the agency shall give timely and adequate notice. 
Such notice shall comply with the provisions of Sec.205.10 of this 
chapter.
    (8) Each decision regarding eligibility or ineligibility will be 
supported by facts in the applicant's or recipient's case record. Under 
this requirement each application is disposed of by a finding of 
eligibility or ineligibility unless:
    (i) The applicant voluntarily withdraws his application, and there 
is an entry in the case record that a notice has been sent to confirm 
the applicant's notification to the agency that he does not desire to 
pursue his application; or
    (ii) There is an entry in the case record that the application has 
been disposed of because the applicant died or could not be located.

[[Page 44]]

    (9) Where an individual has been determined to be eligible, 
eligibility will be reconsidered or redetermined:
    (i) When required on the basis of information the agency has 
obtained previously about anticipated changes in the individual's 
situation;
    (ii) Promptly, after a report is obtained which indicates changes in 
the individual's circumstances that may affect the amount of assistance 
to which he is entitled or may make him ineligible; and
    (iii) Periodically, within agency established time standards, but 
not less frequently than every 12 months in OAA, AB, APTD, and AABD, on 
eligibility factors subject to change. For recipients of AFDC, all 
factors of eligibility will be redetermined at least every 6 months 
except in the case of monthly reporting cases or cases covered by an 
approved error-prone profiling system as specified in paragraph 
(a)(9)(iv) of this section. Under the AFDC program, at least one face-
to-face redetermination must be conducted in each case once in every 12 
months.
    (iv) In accordance with paragraph (a)(9)(iii) of this section, under 
an alternative redetermination plan based on error-prone profiling, 
which has been approved by the Secretary, and includes:
    (A) A description of the statistical methodology used to develop the 
error-prone profile system upon which the redetermination schedule is 
based;
    (B) The criteria to be used to vary the scope of review and to 
assign different types of cases; and
    (C) A detailed outline of the evaluation system, including 
provisions for necessary changes in the error-prone output, such as 
types of cases, types of errors, frequencies of redeterminations and 
corrective action.
    (10) Standards and methods for determination of eligibility shall be 
consistent with the objectives of the programs, and will respect the 
rights of individuals under the United States Constitution, the Social 
Security Act, title VI of the Civil Rights Act of 1964, and all other 
relevant provisions of Federal and State laws.
    (11) [Reserved]
    (12) The State agency shall establish and maintain methods by which 
it shall be kept currently informed about local agencies' adherence to 
the State plan provisions and to the State agency's procedural 
requirements for determining eligibility, and it shall take corrective 
action when necessary.
    (b) Definitions. For purposes of this section:
    (1) Applicant is a person who has, directly, or through his 
authorized representative, or where incompetent or incapacitated, 
through someone acting responsibly for him, made application for public 
assistance from the agency administering the program, and whose 
application has not been terminated.
    (2) Application is the action by which an individual indicates in 
writing to the agency administering public assistance (on a form 
prescribed by the State agency) his desire to receive assistance. The 
relative with whom a child is living or will live ordinarily makes 
application for the child for AFDC. An application is distinguished from 
an inquiry, which is simply a request for information about eligibility 
requirements for public assistance. Such inquiry may be followed by an 
application. When an individual is required to be included in an 
existing assistance unit pursuant to paragraph (a)(1)(vii), such 
individual will be considered to be included in the application, as of 
the date he is required to be included in the assistance unit.
    (3) Date of Application is the date on which the action described in 
paragraph (b)(2) of this section occurs.
    (4) Redetermination is a review of factors affecting AFDC 
eligibility and payment amount; e.g. continued absence, income 
(including child and spousal support), etc.
    (5) Assistance Unit is the group of individuals whose income, 
resources and needs are considered as a unit for purposes of determining 
eligibility and the amount of payment.

[48 FR 28407, June 21, 1983, as amended at 49 FR 35599, Sept. 10, 1984; 
51 FR 7217, Feb. 28, 1986; 51 FR 9203, Mar. 18, 1986; 52 FR 48689, Dec. 
24, 1987; 53 FR 30433, Aug. 12, 1988; 57 FR 30157, July 8, 1992]

[[Page 45]]



PART 211_CARE AND TREATMENT OF MENTALLY ILL NATIONALS OF THE 
UNITED STATES, RETURNED FROM FOREIGN COUNTRIES--Table of Contents



Sec.
211.1 General definitions.
211.2 General.
211.3 Certificates.
211.4 Notification to legal guardian, spouse, next of kin, or interested 
          persons.
211.5 Action under State law; appointment of guardian.
211.6 Reception; temporary care, treatment, and assistance.
211.7 Transfer and release of eligible person.
211.8 Continuing hospitalization.
211.9 Examination and reexamination.
211.10 Termination of hospitalization.
211.11 Request for release from hospitalization.
211.12 Federal payments.
211.13 Financial responsibility of the eligible person; collections, 
          compromise, or waiver of payment.
211.14 Disclosure of information.
211.15 Nondiscrimination.

    Authority: Secs. 1-11, 74 Stat. 308-310; 24 U.S.C. 321-329.

    Source: 39 FR 26546, July 19, 1974, unless otherwise noted.



Sec.211.1  General definitions.

    When used in this part:
    (a) Act means Pub. L. 86-571, approved July 5, 1960, 74 Stat. 308, 
entitled ``An Act to provide for the hospitalization, at Saint 
Elizabeths Hospital in the District of Columbia or elsewhere, of certain 
nationals of the United States adjudged insane or otherwise found 
mentally ill in foreign countries, and for other purposes'';
    (b) The term Secretary means the Secretary of Health and Human 
Services;
    (c) The term Department means the Department of Health and Human 
Services;
    (d) The term Administrator means the Administrator, Family Support 
Administration, Department of Health and Human Services;
    (e) The term eligible person means an individual with respect to 
whom the certificates referred to in Sec.211.3 are furnished to the 
Administrator in connection with the reception of an individual arriving 
from a foreign country;
    (f) The term Public Health Service means the Public Health Service 
in the Department of Health and Human Services;
    (g) The term agency means an appropriate State or local public or 
nonprofit agency with which the Administrator has entered into 
arrangements for the provision of care, treatment, and assistance 
pursuant to the Act;
    (h) The term State includes the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, and Guam;
    (i) The term residence means residence as determined under the 
applicable law or regulations of a State or political subdivision for 
the purpose of determining the eligibility of an individual for 
hospitalization in a public mental hospital;
    (j) The term legal guardian means a guardian, appointed by a court, 
whose powers, duties, and responsibilities include the powers, duties, 
and responsibilities of guardianship of the person.

[39 FR 26546, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988]



Sec.211.2  General.

    The Administrator shall make suitable arrangements with agencies to 
the end that any eligible person will be received, upon request of the 
Secretary of State, at the port of entry or debarkation upon arrival in 
the United States from a foreign country and be provided, to the extent 
necessary, with temporary care, treatment, and assistance, pending 
transfer and release or hospitalization pursuant to the Act. The 
Administrator shall also make suitable arrangements with appropriate 
divisions of the Public Health Service, with Saint Elizabeths Hospital 
in the District of Columbia, with Federal hospitals outside of the 
Department, or with other public or private hospitals to provide the 
eligible person with care and treatment in a hospital. The Administrator 
shall maintain a roster setting forth the name and address of each 
eligible person currently receiving care and treatment, or assistance, 
pursuant to the Act.



Sec.211.3  Certificates.

    The following certificates are necessary to establish that an 
individual is an eligible person:

[[Page 46]]

    (a) Certificates as to nationality. A certificate issued by an 
authorized official of the Department of State, stating that the 
individual is a national of the United States.
    (b) Certificate as to mental condition. Either (1) a certificate 
obtained or transmitted by an authorized official of the Department of 
State that the individual has been legally adjudged insane in a named 
foreign country; or (2) a certificate of an appropriate authority or 
person stating that at the time of such certification the individual was 
in a named foreign country and was in need of care and treatment in a 
mental hospital. A statement shall, if possible, be incorporated into or 
attached to the certificate furnished under this paragraph setting forth 
all available medical and other pertinent information concerning the 
individual.
    (c) Appropriate authority or person. For the purpose of paragraph 
(b)(2) of this section a medical officer of the Public Health Service or 
of another agency of the United States, or a medical practitioner 
legally authorized to provide care or treatment of mentally ill persons 
in the foreign country, is an ``appropriate authority or person,'' and 
shall be so identified in his execution of the certificate. If such a 
medical officer or practitioner is unavailable, an authorized official 
of the Department of State may serve as an ``appropriate authority or 
person,'' and shall, in the execution of the certificate, identify 
himself as serving as such person due to the unavailability of a 
suitable medical officer or practitioner.



Sec.211.4  Notification to legal guardian, spouse, next of kin, 
or interested persons.

    (a) Whenever an eligible person arrives in the United States from a 
foreign country, or when such person is transferred from one State to 
another, the Administrator shall, upon such arrival or transfer (or in 
advance thereof, if possible), provide for notification of his legal 
guardian, or in the absence of such a guardian, of his spouse or next of 
kin, or in the absence of any of these, of one or more interested 
persons, if known.
    (b) Whenever an eligible person is admitted to a hospital pursuant 
to the Act, the Administrator shall provide for immediate notification 
of his legal guardian, spouse, or next of kin, if known.



Sec.211.5  Action under State law; appointment of guardian.

    Whenever an eligible person is incapable of giving his consent to 
care and treatment in a hospital, either because of his mental condition 
or because he is a minor, the agency will take appropriate action under 
State law, including, if necessary, procuring the appointment of a legal 
guardian, to ensure the proper planning for and provision of such care 
and treatment.



Sec.211.6  Reception; temporary care, treatment, and assistance.

    (a) Reception. The agency will meet the eligible person at the port 
of entry or debarkation, will arrange for appropriate medical 
examination, and will plan with him, in cooperation with his legal 
guardian, or, in the absence of such a guardian, with other interested 
persons, if any, for needed temporary care and treatment.
    (b) Temporary care, treatment, and assistance. The agency will 
provide for temporary care, treatment, and assistance, as reasonably 
required for the health and welfare of the eligible person. Such care, 
treatment, and assistance may be provided in the form of hospitalization 
and other medical and remedial care (including services of necessary 
attendants), food and lodging, money, payments, transportation, or other 
goods and services. The agency will utilize the Public Health Service 
General Hospital nearest to the port of entry or debarkation or any 
other suitable public or private hospital, in providing hospitalization 
and medical care, including diagnostic service as needed, pending other 
appropriate arrangements for serving the eligible person.



Sec.211.7  Transfer and release of eligible person.

    (a) Transfer and release to relative. If at the time of arrival from 
a foreign country or any time during temporary or continuing care and 
treatment the Administrator finds that the best interests of the 
eligible person will be

[[Page 47]]

served thereby, and a relative, having been fully informed of his 
condition, agrees in writing to assume responsibility for his care and 
treatment, the Administrator shall transfer and release him to such 
relative. In determining whether his best interest will be served by 
such transfer and release, due weight shall be given to the relationship 
of the individuals involved, the financial ability of the relative to 
provide for such person, and the accessibility to necessary medical 
facilities.
    (b) Transfer and release to appropriate State authorities, or agency 
of the United States. If appropriate arrangements cannot be accomplished 
under paragraph (a) of this section, and if no other agency of the 
United States is responsible for the care and treatment of the eligible 
person, the Administrator shall endeavor to arrange with the appropriate 
State mental health authorities of the eligible person's State of 
residence or legal domicile, if any, for the assumption of 
responsibility for the care and treatment of the eligible person by such 
authorities and shall, upon the making of such arrangements in writing, 
transfer and release him to such authorities. If any other agency of the 
United States is responsible for the care and treatment of the eligible 
person, the Administrator shall make arrangements for his transfer and 
release to that agency.



Sec.211.8  Continuing hospitalization.

    (a) Authorization and arrangements. In the event that appropriate 
arrangements for an eligible person in need of continuing care and 
treatment in a hospital cannot be accomplished under Sec.211.7, or 
until such arrangements can be made, care and treatment shall be 
provided by the Administrator in Saint Elizabeths Hospital in the 
District of Columbia, in an appropriate Public Health Service Hospital, 
or in such other suitable public or private hospital as the 
Administrator determines is in the best interests of such person.
    (b) Transfer to other hospital. At any time during continuing 
hospitalization, when the Administrator deems it to be in the interest 
of the eligible person or of the hospital affected, the Administrator 
shall authorize the transfer of such person from one hospital to another 
and, where necessary to that end, the Administrator shall authorize the 
initiation of judicial proceedings for the purpose of obtaining a 
commitment of such person to the Secretary.
    (c) Place of hospitalization. In determining the placement or 
transfer of an eligible person for purposes of hospitalization, due 
weight shall be given to such factors as the location of the eligible 
person's legal guardian or family, the character of his illness and the 
probable duration thereof, and the facilities of the hospital to provide 
care and treatment for the particular health needs of such person.



Sec.211.9  Examination and reexamination.

    Following admission of an eligible person to a hospital for 
temporary or continuing care and treatment, he shall be examined by 
qualified members of the medical staff as soon as practicable, but not 
later than the fifth day after his admission. Each such person shall be 
reexamined at least once within each six month period beginning with the 
month following the month in which he was first examined.



Sec.211.10  Termination of hospitalization.

    (a) Discharge or conditional release. If, following an examination, 
the head of the hospital finds that the eligible person hospitalized for 
mental illness (whether or not pursuant to a judicial commitment) is not 
in need of such hospitalization, he shall be discharged. In the case 
where hospitalization was pursuant to a judicial commitment, the head of 
the hospital may, in accordance with laws governing hospitalization for 
mental illness as may be in force and generally applicable in the State 
in which the hospital is located, conditionally release him if he finds 
that this is in his best interests.
    (b) Notification to committing court. In the case of any person 
hospitalized under Sec.211.8 who has been judicially committed to the 
custody of the Secretary, the Secretary will notify the committing court 
in writing of the discharge or conditional release of such person under 
this section or of his transfer and release under Sec.211.7.

[[Page 48]]



Sec.211.11  Request for release from hospitalization.

    If an eligible person who is hospitalized pursuant to the Act, or 
his legal guardian, spouse, or adult next of kin, requests his release, 
such request shall be granted by the Administrator if his best interests 
will be served thereby, or by the head of the hospital if he is found 
not to be in need of hospitalization by reason of mental illness. The 
right of the administrator or the head of the hospital, to refuse such 
request and to detain him for care and treatment shall be determined in 
accordance with laws governing the detention, for care and treatment, of 
persons alleged to be mentally ill as may be in force and applicable 
generally in the State in which such hospital is located, but in no 
event shall the patient be detained more than forty-eight hours 
(excluding any period of time falling on a Sunday or a legal holiday 
observed by the courts of the State in which such hospital is located) 
after the receipt of such request unless within such time (a) judicial 
proceedings for such hospitalization are commenced or (b) a judicial 
extension of such time is obtained, for a period of not more than five 
days, for the commencement of such proceedings.



Sec.211.12  Federal payments.

    The arrangements made by the Administrator with an agency or 
hospital for carrying out the purposes of the Act shall provide for 
payments to such agency or hospital, either in advance or by way of 
reimbursement, of the costs of reception, temporary care, treatment, and 
assistance, continuing care and treatment, and transportation, pursuant 
to the Act, and payments for other expenditures necessarily and 
reasonably related to providing the same. Such arrangements shall 
include the methods and procedures for determining the amounts of the 
advances or reimbursements, and for remittance and adjustment thereof.



Sec.211.13  Financial responsibility of the eligible person; 
collections, compromise, or waiver of payment.

    (a) For temporary care and treatment. If an eligible person 
receiving temporary care, treatment, and assistance, pursuant to the 
Act, has financial resources available to pay all or part of the costs 
of such care, the Administrator shall require him to pay for such costs, 
either in advance or by way of reimbursement, unless in his judgment it 
would be inequitable or impracticable to require such payment.
    (b) For continuing care and treatment. Any eligible person receiving 
continuing care and treatment in a hospital, or his estate, shall be 
liable to pay or contribute toward the payment of the costs or charges 
therefor, to the same extent as such person would, if a resident of the 
District of Columbia, be liable to pay, under the laws of the District 
of Columbia, for his care and maintenance in a hospital for the mentally 
ill in that jurisdiction.
    (c) Collections, compromise, or waiver of payment. The Administrator 
may, in his discretion, where in his judgment substantial justice will 
be best served thereby or the probable recovery will not warrant the 
expense of collection, compromise, or waive the whole or any portion of, 
any claim for continuing care and treatment, and assistance, and in the 
process of arriving at such decision, the Administrator may make or 
cause to be made such investigations as may be necessary to determine 
the ability of the patient to pay or contribute toward the cost of his 
continuing care and treatment in a hospital.



Sec.211.14  Disclosure of information.

    (a) No disclosure of any information of a personal and private 
nature with respect to an individual obtained at any time by any person, 
organization, or institution in the course of discharging the duties of 
the Secretary under the Act shall be made except insofar:
    (1) As the individual or his legal guardian, if any (or, if he is a 
minor, his parent or legal guardian), shall consent;
    (2) As disclosure may be necessary to carry out any functions of the 
Secretary under the Act;
    (3) As disclosure may be directed by the order of a court of 
competent jurisdiction;
    (4) As disclosure may be necessary to carry out any functions of any 
agency

[[Page 49]]

of the United States which are related to the return of the individual 
from a foreign country, or his entry into the United States; or
    (5) As expressly authorized by the Administrator.
    (b) An agreement made with an agency or hospital for care, 
treatment, and assistance pursuant to the Act shall provide that no 
disclosure will be made of any information of a personal and private 
nature received by such agency or hospital in the course of discharging 
the duties under such agreement except as is provided therein, or is 
otherwise specifically authorized by the Administrator.
    (c) Nothing in this section shall preclude disclosure, upon proper 
inquiry, of information as to the presence of an eligible person in a 
hospital, or as to his general condition and progress.



Sec.211.15  Nondiscrimination.

    (a) No eligible person shall, on the ground of race, color, or 
national origin, be excluded from participation, be denied any benefits, 
or otherwise be subjected to discrimination of any nature or form in the 
provision of any benefits, under the Act.
    (b) The prohibition in paragraph (a) of this section precludes 
discrimination either in the selection of individuals to receive the 
benefits, in the scope of benefits, or in the manner of providing them. 
It extends to all facilities and services provided by the Administrator 
or an agency to an individual, and to the arrangements and the 
procedures under this part relating thereto, in connection with 
reception, temporary care, treatment, and assistance, and continuing 
hospitalization under the Act.



PART 212_ASSISTANCE FOR UNITED STATES CITIZENS RETURNED FROM FOREIGN
COUNTRIES--Table of Contents



Sec.
212.1 General definitions.
212.2 General.
212.3 Eligible person.
212.4 Reception; initial determination, provisions of temporary 
          assistance.
212.5 Periodic review and redetermination; termination of temporary 
          assistance.
212.6 Duty to report.
212.7 Repayment to the United States.
212.8 Federal payments.
212.9 Disclosure of information.
212.10 Nondiscrimination.

    Authority: Sec. 302, 75 Stat. 142, sec. 1102, 49 Stat. 647; 42 
U.S.C. 1313, 1302.

    Source: 39 FR 26548, July 19, 1974, unless otherwise noted.



Sec.212.1  General definitions.

    When used in this part:
    (a) Act means section 1113 of the Social Security Act, as amended;
    (b) The term Secretary means the Secretary of Health and Human 
Services;
    (c) The term Department means the Department of Health and Human 
Services;
    (d) The term Administration means the Administration for Children 
and Families, Department of Health and Human Services;
    (e) The term Assistant Secretary means the Assistant Secretary for 
Children and Families;
    (f) The term eligible person means an individual with respect to 
whom the conditions in Sec.212.3 are met;
    (g) The term State includes the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, and Guam;
    (h) The term United States when used in a geographical sense means 
the States;
    (i) The term agency means State or local public agency or 
organization or national or local private agency or organization with 
which the Assistant Secretary has entered into agreement for the 
provision of temporary assistance pursuant to the Act;
    (j) The term temporary assistance means money payments, medical 
care, temporary billeting, transportation, and other goods and services 
necessary for the health, or welfare of individuals, including guidance, 
counseling, and other welfare services.

[39 FR 26548, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988; 
60 FR 19864, Apr. 21, 1995]



Sec.212.2  General.

    The Assistant Secretary shall develop plans and make arrangements 
for provision of temporary assistance

[[Page 50]]

within the United States to any eligible person, after consultation with 
appropriate offices of the Department of State, the Department of 
Justice, and the Department of Defense. Temporary assistance shall be 
provided, to the extent feasible, in accordance with such plans, as 
modified from time to time by the Assistant Secretary. The Assistant 
Secretary shall enter into agreements with agencies whose services and 
facilities are to be utilized for the purpose of providing temporary 
assistance pursuant to the Act, specifying the conditions governing the 
provision of such assistance and the manner of payment of the cost of 
providing therefor.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec.212.3  Eligible person.

    In order to establish that an individual is an eligible person, it 
must be found that:
    (a) He is a citizen of the United States or a dependent of a citizen 
of the United States;
    (b) A written statement has been transmitted to the Administration 
by an authorized official of the Department of State containing 
information which identifies him as having returned, or been brought, 
from a foreign country to the United States because of the destitution 
of the citizen of the United States, or the illness of such citizen or 
any of his dependents, or because of war, threat of war, invasion, or 
similar crisis. Such statement shall, if possible, incorporate or have 
attached thereto, all available pertinent information concerning the 
individual. In case of war, threat of war, invasion, or similar crisis, 
a determination by the Department of State that such a condition is the 
general cause for the return of citizens of the United States and their 
dependents from a particular foreign country, and evidence that an 
individual has returned, or, been brought, from such country to the 
United States shall be considered sufficient identification of the 
reason for his return to, or entry into the United States; and
    (c) He is without resources immediately accessible to meet his 
needs.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec.212.4  Reception; initial determination, provisions of temporary 
assistance.

    (a) The Administration, or the agency upon notification by the 
Administration, will meet individuals identified as provided in Sec.
212.3(b), at the port of entry or debarkation.
    (b) The Administration or agency will make findings, setting forth 
the pertinent facts and conclusions, and an initial determination, 
according to standards established by the Administration, as to whether 
an individual is an eligible person.
    (c) The Administration or agency will provide temporary assistance 
within the United States to an eligible person, according to standards 
of need established by the Administration, upon arrival at the port of 
entry or debarkation, during transportation to his intermediate and 
ultimate destinations, and after arrival at such destinations.
    (d) Temporary assistance may be furnished only for 90 days from the 
day of arrival of the eligible person in the United States unless he is 
handicapped in attaining self-support or self-care for such reasons as 
age, disability, or lack of vocational preparation. In such cases 
temporary assistance may be extended upon prior authorization by the 
Administration for nine additional months.

[39 FR 26548, July 19, 1974, as amended at 40 FR 43218, Sept. 19, 1975; 
53 FR 36580, Sept. 21, 1988]



Sec.212.5  Periodic review and redetermination; termination of
temporary assistance.

    (a) The Administration or agency will review the situation of each 
recipient of temporary assistance at frequent intervals to consider 
whether or not circumstances have changed that would require a different 
plan for him.
    (b) Upon a finding by the Administration or agency that a recipient 
of temporary assistance has sufficient resources available to meet his 
needs,

[[Page 51]]

temporary assistance shall be terminated.

[39 FR 26548, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988]



Sec.212.6  Duty to report.

    The eligible person who receives temporary assistance, or the person 
who is caring for or otherwise acting on behalf of such eligible person, 
shall report promptly to the Administration or agency any event or 
circumstance which would cause such assistance to be changed in amount 
or terminated.

[39 FR 26548, July 19, 1974, as amended at 53 FR 36580, Sept. 21, 1988]



Sec.212.7  Repayment to the United States.

    (a) An individual who has received temporary assistance shall be 
required to repay, in accordance with his ability, any or all of the 
cost of such assistance to the United States, except insofar as it is 
determined that:
    (1) The cost is not readily allocable to such individual;
    (2) The probable recovery would be uneconomical or otherwise 
impractical;
    (3) He does not have, and is not expected within a reasonable time 
to have, income and financial resources sufficient for more than 
ordinary needs; or
    (4) Recovery would be against equity and good conscience.
    (b) In determining an individual's resources, any claim which he has 
against any individual, trust or estate, partnership, corporation, or 
government shall be considered, and assignment to the United States of 
such claims shall be taken in appropriate cases.
    (c) A determination that an individual is not required to repay the 
cost of temporary assistance shall be final and binding, unless such 
determination was procured by fraud or misrepresentation of the 
individual or some other person, or the individual voluntarily offers to 
repay.
    (d) A determination that an individual is required to repay any or 
all of the cost of temporary assistance may be reconsidered at any time 
prior to repayment of the required amount. A further determination shall 
be made with respect to his liability to repay the balance of such 
amount on the basis of new evidence as to whether (1) he has, or is 
expected within a reasonable time to have, income and financial 
resources sufficient for more than ordinary needs, or (2) recovery would 
be against equity and good conscience.



Sec.212.8  Federal payments.

    (a) The agreement made by the Assistant Secretary with an agency for 
carrying out the purposes of the Act shall provide for payment to such 
agency, either in advance or by way of reimbursement, of the cost of 
temporary assistance provided pursuant to the Act, and payment of the 
cost of other expenditures necessarily and reasonably related to 
providing the same. Such agreement shall include the cost of other 
expenditures necessarily and reasonably related to providing the same. 
Such agreement shall include the method for determining such costs, as 
well as the methods and procedures for determining the amounts of 
advances or reimbursement and for remittance and adjustment thereof.
    (b) To receive reimbursements, States, or other agencies, shall 
request and receive prior approval from the Assistant Secretary for 
administrative expenses incurred in developing or preparing to implement 
repatriation plans for groups of eligible persons. Such requests should 
include a description of the activities to be undertaken, an estimate of 
the expenses and a rationale for the expenditures. In reviewing 
requests, the Assistant Secretary will consider the necessity and 
reasonableness of the costs. Prior approval is not required for 
administrative expenditures incurred by a State in implementing approved 
repatriation plans as a result of Federal notification that an 
evacuation may be necessary.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec.212.9  Disclosure of information.

    (a) No disclosures of any information of a personal and private 
nature with respect to an individual obtained at any time by any person, 
organization, or institution in the course of discharging the duties of 
the Secretary

[[Page 52]]

under the Act shall be made except insofar:
    (1) As the individual or his legal guardian, if any (or, if he is a 
minor, his parent or legal guardian), shall consent;
    (2) As disclosure may be necessary to carry out any functions of the 
Secretary under the Act;
    (3) As disclosure may be necessary to carry out any functions of any 
agency of the United States which are related to the return of the 
individual from a foreign country, or his entry into the United States; 
or
    (4) As expressly authorized by the Assistant Secretary.
    (b) An agreement made with an agency for the provision of temporary 
assistance pursuant to the Act shall provide that no disclosure will be 
made of any information of a personal and private nature received by 
such agency in the course of discharging the duties under such agreement 
except as is provided therein, or is otherwise specifically authorized 
by the Assistant Secretary.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



Sec.212.10  Nondiscrimination.

    (a) No eligible person shall, on the ground of race, color, or 
national origin be excluded from participation, be denied any benefits, 
or otherwise be subjected to discrimination of any nature or form in the 
provision of any benefits under the Act.
    (b) The prohibition in paragraph (a) of this section precludes 
discrimination either in the selection of individuals to receive the 
benefits, in the scope of benefits, or in the manner of providing them. 
It extends to all facilities and services provided by the Administration 
or an agency to an individual, and to the arrangements and the 
procedures under this part relating thereto, in connection with 
reception and temporary assistance under the Act.

[39 FR 26548, July 19, 1974, as amended at 60 FR 19864, Apr. 21, 1995]



PART 213_PRACTICE AND PROCEDURE FOR HEARINGS TO STATES ON CONFORMITY 
OF PUBLIC ASSISTANCE PLANS TO FEDERAL REQUIREMENTS--Table of Contents



                            Subpart A_General

Sec.
213.1 Scope of rules.
213.2 Records to be public.
213.3 Use of gender and number.
213.4 Suspension of rules.
213.5 Filing and service of papers.

            Subpart B_Preliminary Matters_Notice and Parties

213.11 Notice of hearing or opportunity for hearing.
213.12 Time of hearing.
213.13 Place.
213.14 Issues at hearing.
213.15 Request to participate in hearing.

                      Subpart C_Hearing Procedures

213.21 Who presides.
213.22 Authority of presiding officer.
213.23 Rights of parties.
213.23a Discovery.
213.24 Evidentiary purpose.
213.25 Evidence.
213.26 Exclusion from hearing for misconduct.
213.27 Unsponsored written material.
213.28 Official transcript.
213.29 Record for decision.

               Subpart D_Posthearing Procedures, Decisions

213.31 Posthearing briefs.
213.32 Decisions following hearing.
213.33 Effective date of Administrator's decision.

    Authority: Sec. 1102, 49 Stat. 647; 42 U.S.C. 1302.

    Source: 36 FR 1454, Jan. 29, 1971, unless otherwise noted.



                            Subpart A_General



Sec.213.1  Scope of rules.

    (a) The rules of procedure in this part govern the practice for 
hearings afforded by the Department to States pursuant to Sec.201.4 or 
Sec.201.6 (a) or (b) of this chapter, and the practice relating to 
decisions upon such hearings. These rules may also be applied to 
hearings afforded by the Department to States in other Federal-State 
programs for

[[Page 53]]

which Federal administrative responsibility has been delegated to the 
Service.
    (b) Nothing in this part is intended to preclude or limit 
negotiations between the Department and the State, whether before, 
during, or after the hearing to resolve the issues which are, or 
otherwise would be, considered at the hearing. Such negotiations and 
resolution of issues are not part of the hearing, and are not governed 
by the rules in this part, except as expressly provided herein.



Sec.213.2  Records to be public.

    All pleadings, correspondence, exhibits, transcripts of testimony, 
exceptions, briefs, decisions, and other documents filed in the docket 
in any proceeding may be inspected and copied in the office of the FSA 
Hearing Clerk. Inquiries may be made at the Central Information Center, 
Department of Health and Human Services, 330 Independence Avenue SW., 
Washington, DC 20201.

[36 FR 1454, Jan. 29, 1971, as amended at 53 FR 36580, Sept. 21, 1988]



Sec.213.3  Use of gender and number.

    As used in this part, words importing the singular number may extend 
and be applied to several persons or things, and vice versa. Words 
importing the masculine gender may be applied to females or 
organizations.



Sec.213.4  Suspension of rules.

    Upon notice to all parties, the Administrator or the presiding 
officer, with respect to matters pending before him and within his 
jurisdiction, may modify or waive any rule in this part upon 
determination that no party will be unduly prejudiced and the ends of 
justice will thereby be served.



Sec.213.5  Filing and service of papers.

    (a) All papers in the proceedings shall be filed with the FSA 
Hearing Clerk, in an original and two copies. Originals only of exhibits 
and transcripts of testimony need be filed.
    (b) All papers in the proceedings shall be served on all parties by 
personal delivery or by mail. Service on the party's designated attorney 
will be deemed service upon the party.

[36 FR 1454, Jan. 29, 1971, as amended at 53 FR 36580, Sept. 21, 1988]



            Subpart B_Preliminary Matters_Notice and Parties



Sec.213.11  Notice of hearing or opportunity for hearing.

    Proceedings are commenced by mailing a notice of hearing or 
opportunity for hearing from the Administrator to the State. The notice 
shall state the time and place for the hearing, and the issues which 
will be considered, and shall be published in the Federal Register.



Sec.213.12  Time of hearing.

    The hearing shall be scheduled not less than 30 days nor more than 
60 days after the date notice of the hearing is furnished to the State.



Sec.213.13  Place.

    The hearing shall be held in the city in which the regional office 
of the Department is located or in such other place as is fixed by the 
Administrator in light of the circumstances of the case, with due regard 
for the convenience and necessity of the parties or their 
representatives.



Sec.213.14  Issues at hearing.

    (a) The Administrator may, prior to a hearing under Sec.201.6 (a) 
or (b) of this chapter, notify the State in writing of additional issues 
which will be considered at the hearing, and such notice shall be 
published in the Federal Register. If such notice is furnished to the 
State less than 20 days before the date of the hearing, the State or any 
other party, at its request, shall be granted a postponement of the 
hearing to a date 20 days after such notice was furnished, or such later 
date as may be agreed to by the Administrator.
    (b) If, as a result of negotiations between the Department and the 
State, the submittal of a plan amendment, a change in the State program, 
or other actions by the State, any issue is resolved in whole or in 
part, but new or modified issues are presented, as specified by the 
Administrator, the hearing

[[Page 54]]

shall proceed on such new or modified issues.
    (c)(1) If at any time, whether prior to, during, or after the 
hearing, the Administrator finds that the State has come into compliance 
with Federal requirements on any issue, in whole or in part, he shall 
remove such issue from the proceedings in whole or in part, as may be 
appropriate. If all issues are removed, he shall terminate the hearing.
    (2) Prior to the removal of any issue from the hearing, in whole or 
in part, the Administrator shall provide all parties other than the 
Department and the State (see Sec.213.15(b)) with the statement of his 
intention, and the reasons therefor, and a copy of the proposed State 
plan provision on which the State and he have settled, and the parties 
shall have opportunity to submit in writing within 15 days, for the 
Administrator's consideration and for the record, their views as to, or 
any information bearing upon, the merits of the proposed plan provision 
and the merits of the Administrator's reasons for removing the issue 
from the hearing.
    (d) The issues considered at the hearing shall be limited to those 
issues of which the State is notified as provided in Sec.213.11 and 
paragraph (a) of this section, and new or modified issues described in 
paragraph (b) of this section, and shall not include issues or parts of 
issues removed from the proceedings pursuant to paragraph (c) of this 
section.



Sec.213.15  Request to participate in hearing.

    (a) The Department and the State are parties to the hearing without 
making a specific request to participate.
    (b)(1) Other individuals or groups may be recognized as parties, if 
the issues to be considered at the hearing have caused them injury and 
their interest is within the zone of interests to be protected by the 
governing Federal statute.
    (2) Any individual or group wishing to participate as a party shall 
file a petition with the FSA Hearing Clerk within 15 days after notice 
of the hearing has been published in the Federal Register, and shall 
serve a copy on each party of record at that time, in accordance with 
Sec.213.5(b). Such petition shall concisely state (i) petitioner's 
interest in the proceeding, (ii) who will appear for petitioner, (iii) 
the issues on which petitioner wishes to participate, and (iv) whether 
petitioner intends to present witnesses.
    (3) Any party may, within 5 days of receipt of such petition, file 
comments thereon.
    (4) The presiding officer shall promptly determine whether each 
petitioner has the requisite interest in the proceedings and shall 
permit or deny participation accordingly. Where petitions to participate 
as parties are made by individuals or groups with common interests, the 
presiding officer may request all such petitioners to designate a single 
representative, or he may recognize one or more of such petitioners to 
represent all such petitioners. The presiding officer shall give each 
petitioner written notice of the decision on his petition, and if the 
petition is denied, he shall briefly state the grounds for denial.
    (c)(1) Any interested person or organization wishing to participate 
as amicus curiae shall file a petition with the FSA Hearing Clerk before 
the commencement of the hearing. Such petition shall concisely state (i) 
the petitioner's interest in the hearing, (ii) who will represent the 
petitioner, and (iii) the issues on which petitioner intends to present 
argument. The presiding officer may grant the petition if he finds that 
the petitioner has a legitimate interest in the proceedings, that such 
participation will not unduly delay the outcome and may contribute 
materially to the proper disposition of the issues. An amicus curiae is 
not a party but may participate as provided in this paragraph.
    (2) An amicus curiae may present a brief oral statement at the 
hearing, at the point in the proceedings specified by the presiding 
officer. He may submit a written statement of position to the presiding 
officer prior to the beginning of a hearing, and shall serve a copy on 
each party. He may also submit a brief or written statement at such time 
as the parties submit briefs, and shall serve a copy on each party.

[36 FR 1454, Jan. 29, 1971, as amended at 53 FR 36580, Sept. 21, 1988]

[[Page 55]]



                      Subpart C_Hearing Procedures



Sec.213.21  Who presides.

    (a) The presiding officer at a hearing shall be the Administrator or 
his designee.
    (b) The designation of the presiding officer shall be in writing. A 
copy of the designation shall be served on all parties.

[39 FR 40850, Nov. 21, 1974]



Sec.213.22  Authority of presiding officer.

    (a) The presiding officer shall have the duty to conduct a fair 
hearing, to avoid delay, maintain order, and make a record of the 
proceedings. He shall have all powers necessary to accomplish these 
ends, including, but not limited to, the power to:
    (1) Change the date, time, and place of the hearing, upon due notice 
to the parties. This includes the power to continue the hearing in whole 
or in part. In hearings pursuant to section 1116(a)(2) of the Social 
Security Act (see Sec.201.4 of this chapter), changes of time are 
subject to the requirements of the statute.
    (2) Hold conferences to settle or simplify the issues in a 
proceeding, or to consider other matters that may aid in the expeditious 
disposition of the proceeding.
    (3) Regulate participation of parties and amici curiae and require 
parties and amici curiae to state their position with respect to the 
various issues in the proceeding.
    (4) Administer oaths and affirmations.
    (5) Rule on motions and other procedural items on matters pending 
before him including issuance of protective orders or other relief to a 
party against whom discovery is sought.
    (6) Regulate the course of the hearing and conduct of counsel 
therein.
    (7) Examine witnesses.
    (8) Receive, rule on, exclude or limit evidence or discovery.
    (9) Fix the time for filing motions, petitions, briefs, or other 
items in matters pending before him.
    (10) If the presiding officer is the Administrator, make a final 
decision.
    (11) If the presiding officer is a hearing examiner, certify the 
entire record including his recommended findings and proposed decision 
to the Administrator.
    (12) Take any action authorized by the rules in this part or in 
conformance with the provisions of 5 U.S.C. 551 through 559.
    (b) The presiding officer does not have authority to compel by 
subpoena the production of witnesses, papers, or other evidence.
    (c) If the presiding officer is a hearing examiner, his authority 
pertains to the issues of compliance by a State with Federal 
requirements which are to be considered at the hearing, and does not 
extend to the question of whether, in case of any noncompliance, Federal 
payments will not be made in respect to the entire State plan or will be 
limited to categories under or parts of the State plan affected by such 
noncompliance.

[40 FR 50272, Oct. 29, 1975]



Sec.213.23  Rights of parties.

    All parties may:
    (a) Appear by counsel or other authorized representative, in all 
hearing proceedings.
    (b) Participate in any prehearing conference held by the presiding 
officer.
    (c) Agree to stipulations as to facts which will be made a part of 
the record.
    (d) Make opening statements at the hearing.
    (e) Present relevant evidence on the issues at the hearing.
    (f) Present witnesses who then must be available for cross-
examination by all other parties.
    (g) Present oral arguments at the hearing.
    (h) Submit written briefs, proposed findings of fact, and proposed 
conclusions of law, after the hearing.



Sec.213.23a  Discovery.

    The Department and any party named in the notice issued pursuant to 
Sec.213.11 shall have the right to conduct discovery (including 
depositions) against opposing parties. Rules 26-37 of the Federal Rules 
of Civil Procedures shall apply to such proceedings; there

[[Page 56]]

will be no fixed rule on priority of discovery. Upon written motion, the 
Presiding Officer shall promptly rule upon any objection to such 
discovery action initiated pursuant to this section. The Presiding 
Officer shall also have the power to grant a protective order or relief 
to any party against whom discovery is sought and to restrict or control 
discovery so as to prevent undue delay in the conduct of the hearing. 
Upon the failure of any party to make discovery, the Presiding Officer 
may, in his discretion, issue any order and impose any sanction (other 
than contempt orders) authorized by Rule 37 of the Federal Rules of 
Civil Procedure.

[40 FR 50272, Oct. 29, 1975]



Sec.213.24  Evidentiary purpose.

    The hearing is directed to receiving factual evidence and expert 
opinion testimony related to the issues in the proceeding. Argument will 
not be received in evidence; rather it should be presented in 
statements, memoranda, or briefs, as determined by the presiding 
officer. Brief opening statements, which shall be limited to statement 
of the party's position and what he intends to prove, may be made at 
hearings.



Sec.213.25  Evidence.

    (a) Testimony. Testimony shall be given orally under oath or 
affirmation by witnesses at the hearing. Witnesses shall be available at 
the hearing for cross-examination by all parties.
    (b) Stipulations and exhibits. Two or more parties may agree to 
stipulations of fact. Such stipulations, or any exhibit proposed by any 
party, shall be exchanged at the prehearing conference or otherwise 
prior to the hearing if the presiding officer so requires.
    (c) Rules of evidence. Technical rules of evidence shall not apply 
to hearings conducted pursuant to this part, but rules or principles 
designed to assure production of the most credible evidence available 
and to subject testimony to test by cross-examination shall be applied 
where reasonably necessary by the presiding officer. A witness may be 
cross-examined on any matter material to the proceeding without regard 
to the scope of his direct examination. The presiding officer may 
exclude irrelevant, immaterial, or unduly repetitious evidence. All 
documents and other evidence offered or taken for the record shall be 
open to examination by the parties and opportunity shall be given to 
refute facts and arguments advanced on either side of the issues.



Sec.213.26  Exclusion from hearing for misconduct.

    Disrespectful, disorderly, or contumacious language or contemptuous 
conduct, refusal to comply with directions, or continued use of dilatory 
tactics by any person at the hearing before a presiding officer shall 
constitute grounds for immediate exclusion of such person from the 
hearing by the presiding officer.



Sec.213.27  Unsponsored written material.

    Letters expressing views or urging action and other unsponsored 
written material regarding matters in issue in a hearing will be placed 
in the correspondence section of the docket of the proceeding. These 
data are not deemed part of the evidence or record in the hearing.



Sec.213.28  Official transcript.

    The Department will designate the official reporter for all 
hearings. The official transcripts of testimony taken, together with any 
stipulations, exhibits, briefs, or memoranda of law filed therewith 
shall be filed with the Department. Transcripts of testimony in hearings 
may be obtained from the official reporter by the parties and the public 
at rates not to exceed the maximum rates fixed by the contract between 
the Department and the reporter. Upon notice to all parties, the 
presiding officer may authorize corrections to the transcript which 
involve matters of substance.



Sec.213.29  Record for decision.

    The transcript of testimony, exhibits, and all papers and requests 
filed in the proceedings, except the correspondence section of the 
docket, including rulings and any recommended or initial decision shall 
constitute the exclusive record for decision.

[[Page 57]]



               Subpart D_Posthearing Procedures, Decisions



Sec.213.31  Posthearing briefs.

    The presiding officer shall fix the time for filing posthearings 
briefs, which may contain proposed findings of fact and conclusions of 
law, and, if permitted, reply briefs.



Sec.213.32  Decisions following hearing.

    (a) If the Administrator is the presiding officer, he shall, when 
the time for submission of posthearing briefs has expired, issue his 
decision within 60 days.
    (b)(1) If a hearing examiner is the presiding officer, he shall, 
when the time for submission of posthearing briefs has expired, certify 
the entire record, including his recommended findings and proposed 
decision, to the Administrator. The Administrator shall serve a copy of 
the recommended findings and proposed decision upon all parties, and 
amici, if any.
    (2) Any party may, within 20 days, file with the Administrator 
exceptions to the recommended findings and proposed decision and a 
supporting brief or statement.
    (3) The Administrator shall thereupon review the recommended 
decision and, within 60 days of its issuance, issue his own decision.
    (c) If the Administrator concludes that a State plan does not comply 
with Federal requirements, he shall also, in the case of a hearing 
pursuant to Sec.201.6(a) of this chapter, specify whether further 
payments will not be made to the State or whether, in the exercise of 
his discretion, payments will be limited to categories under or parts of 
the State plan not affected by such noncompliance. The Administrator may 
ask the parties for recommendations or briefs or may hold conferences of 
the parties on this question.
    (d) The decision of the Administrator under this section shall be 
the final decision of the Secretary and shall constitute ``final agency 
action'' within the meaning of 5 U.S.C. 704 and a ``final 
determination'' within the meaning of section 1116(a)(3) of the Act and 
Sec.201.7 of this chapter. The Administrator's decision shall be 
promptly served on all parties, and amici, if any.

[36 FR 1454, Jan. 29, 1971, as amended at 36 FR 21520, Nov. 10, 1971]



Sec.213.33  Effective date of Administrator's decision.

    If, in the case of a hearing pursuant to Sec.201.6(a) of this 
chapter, the Administrator concludes that a State plan does not comply 
with Federal requirements, his decision that further payments will not 
be made to the State, or payments will be limited to categories under or 
parts of the State plan not affected, shall specify the effective date 
for the withholding of Federal funds. The effective date shall not be 
earlier than the date of the Administrator's decision and shall not be 
later than the first day of the next calendar quarter. The provisions of 
this section may not be waived pursuant to Sec.213.4.



PART 225_TRAINING AND USE OF SUBPROFESSIONALS AND VOLUNTEERS--
Table of Contents



Sec.
225.1 Definitions.
225.2 State plan requirements.
225.3 Federal financial participation.

    Authority: Sec. 1102, 49 Stat. 647; 42 U.S.C. 1302.



Sec.225.1  Definitions.

    (a) The classification of subprofessional staff as community service 
aides refers to persons in a variety of positions in the planning, 
administration, and delivery of health, social, and rehabilitation 
services in which the duties of the position are composed of tasks that 
are an integral part of the agency's service responsibilities to people 
and that can be performed by persons with less than a college education, 
by high school graduates, or by persons with little or no formal 
education.
    (b) Full-time or part-time employment means that the person is 
employed by the agency and his position is incorporated into the regular 
staffing pattern of the agency. He is paid a regular wage or salary in 
relation to the value of services rendered and time spent on the job.

[[Page 58]]

    (c) The term Volunteer describes a person who contributes his 
personal service to the community through the agency's human services 
program. He is not a replacement or substitute for paid staff but adds 
new dimensions to agency services, and symbolizes the community's 
concern for the agency's clientele.
    (d) Partially paid volunteers means volunteers who are compensated 
for expenses incurred in the giving of services. Such payment does not 
reflect the value of the services rendered, or the amount of time given 
to the agency.

[34 FR 1319, Jan. 28, 1969]



Sec.225.2  State plan requirements.

    The State plan for financial assistance programs under titles I, X, 
XIV, or XVI (AABD) of the Social Security Act for Guam, Puerto Rico and 
the Virgin Islands or for child welfare services under title IV-B of the 
Act must:
    (a) Provide for the training and effective use of subprofessional 
staff as community service aides through part-time or full-time 
employment of persons of low income and, where applicable, of recipients 
and for that purpose will provide for:
    (1) Such methods of recruitment and selection as will offer 
opportunity for full-time or part-time employment of persons of low 
income and little or no formal education, including employment of young 
and middle aged adults, older persons, and the physically and mentally 
disabled, and in the case of a State plan for financial assistance under 
title I, X, XIV, or XVI (AABD), of recipients: And will provide that 
such subprofessional positions are subject to merit system requirements, 
except where special exemption is approved on the basis of a State 
alternative plan for recruitment and selection among the disadvantaged 
of persons who have the potential ability for training and job 
performance to help assure achievement of program objectives;
    (2) An administrative staffing plan to include the range of service 
personnel of which subprofessional staff are an integral part;
    (3) A career service plan permitting persons to enter employment at 
the subprofessional level and, according to their abilities, through 
work experience, pre-service and in-service training and educational 
leave with pay, progress to positions of increasing responsibility and 
reward;
    (4) An organized training program, supervision, and supportive 
services for subprofessional staff; and
    (5) Annual progressive expansion of the plan to assure utilization 
of increasing numbers of subprofessional staff as community service 
aides, until an appropriate number and proportion of subprofessional 
staff to professional staff are achieved to make maximum use of 
subprofessionals in program operation.
    (b) Provide for the use of nonpaid or partially paid volunteers in 
providing services and in assisting any advisory committees established 
by the State agency and for that purpose provide for:
    (1) A position in which rests responsibility for the development, 
organization, and administration of the volunteer program, and for 
coordination of the program with related functions;
    (2) Methods of recruitment and selection which will assure 
participation of volunteers of all income levels in planning capacities 
and service provision;
    (3) A program for organized training and supervision of such 
volunteers;
    (4) Meeting the costs incident to volunteer service and assuring 
that no individual shall be deprived of the opportunity to serve because 
of the expenses involved in such service; and
    (5) Annual progressive expansion of the numbers of volunteers 
utilized, until the volunteer program is adequate for the achievement of 
the agency's service goals.

[34 FR 1320, Jan. 28, 1969, as amended at 41 FR 12015, Mar. 23, 1976; 42 
FR 60566, Nov. 28, 1977; 45 FR 56686, Aug. 25, 1980; 51 FR 9204, Mar. 
18, 1986]



Sec.225.3  Federal financial participation.

    Under the State plan for financial assistance programs under titles 
I, X, XIV, XVI (AABD) or for child welfare services under title IV-B of 
the Act, Federal financial participation in expenditures for the 
recruitment, selection, training, and employment and other use of 
subprofessional staff and volunteers is available at the rates and

[[Page 59]]

under related conditions established for training, services, and other 
administrative costs under the respective titles.

[51 FR 9204, Mar. 18, 1986]



PART 233_COVERAGE AND CONDITIONS OF ELIGIBILITY IN FINANCIAL 
ASSISTANCE PROGRAMS--Table of Contents



Sec.
233.10 General provisions regarding coverage and eligibility.
233.20 Need and amount of assistance.
233.21 Budgeting methods for OAA, AB, APTD, and AABD.
233.22 Determining eligibility under prospective budgeting.
233.23 When assistance shall be paid under retrospective budgeting.
233.24 Retrospective budgeting; determining eligibility and computing 
          the assistance payment in the initial one or two months.
233.25 Retrospective budgeting; computing the assistance payment after 
          the initial one or two months.
233.26 Retrospective budgeting; determining eligibility after the 
          initial one or two months.
233.27 Supplemental payments under retrospective budgeting.
233.28 Monthly reporting.
233.29 How monthly reports are treated and what notices are required.
233.31 Budgeting methods for AFDC.
233.32 Payment and budget months (AFDC).
233.33 Determining eligibility prospectively for all payment months 
          (AFDC).
233.34 Computing the assistance payment in the initial one or two months 
          (AFDC).
233.35 Computing the assistance payment under retrospective budgeting 
          after the initial one or two months (AFDC).
233.36 Monthly reporting (AFDC).
233.37 How monthly reports are treated and what notices are required 
          (AFDC).
233.38 Waiver of monthly reporting and retrospective budgeting 
          requirements; AFDC.
233.39 Age.
233.40 Residence.
233.50 Citizenship and alienage.
233.51 Eligibility of sponsored aliens.
233.52 Overpayment to aliens.
233.53 Support and maintenance assistance (including home energy 
          assistance) in AFDC.
233.60 Institutional status.
233.70 Blindness.
233.80 Disability.
233.90 Factors specific to AFDC.
233.100 Dependent children of unemployed parents.
233.101 Dependent children of unemployed parents.
233.106 Denial of AFDC benefits to strikers.
233.107 Restriction in payment to households headed by a minor parent.
233.110 Foster care maintenance and adoption assistance.
233.145 Expiration of medical assistance programs under titles I, IV-A, 
          X, XIV and XVI of the Social Security Act.

    Authority: 42 U.S.C. 301, 602, 602 (note), 606, 607, 1202, 1302, 
1352, and 1382 (note).



Sec.233.10  General provisions regarding coverage and eligibility.

    (a) State plan requirements. A State plan under title I, IV--A, X, 
XIV, or XVI, of the Social Security Act must:
    (1) Specify the groups of individuals, based on reasonable 
classifications, that will be included in the program, and all the 
conditions of eligibility that must be met by the individuals in the 
groups. The groups selected for inclusion in the plan and the 
eligibility conditions imposed must not exclude individuals or groups on 
an arbitrary or unreasonable basis, and must not result in inequitable 
treatment of individuals or groups in the light of the provisions and 
purposes of the public assistance titles of the Social Security Act. 
Under this requirement:
    (i) A State shall impose each condition of eligibility required by 
the Social Security Act; and
    (ii) A State may:
    (A) Provide more limited public assistance coverage than that 
provided by the Act only where the Social Security Act or its 
legislative history authorizes more limited coverage;
    (B) Impose conditions upon applicants for and recipients of public 
assistance which, if not satisfied, result in the denial or termination 
of public assistance, if such conditions assist the State in the 
efficient administration of its public assistance programs, or further 
an independent State welfare policy, and are not inconsistent with the 
provisions and purposes of the Social Security Act.
    (iii) There must be clarity as to what groups are included in the 
plan, and which are within, and which are outside, the scope of Federal 
financial participation.

[[Page 60]]

    (iv) Eligibility conditions must be applied on a consistent and 
equitable basis throughout the State.
    (v) A plan under title XVI must have the same eligibility conditions 
and other requirements for the aged, blind, and disabled, except as 
otherwise specifically required or permitted by the Act.
    (vi) Eligibility conditions or agency procedures or methods must not 
preclude the opportunity for an individual to apply and obtain a 
determination of eligibility or ineligibility.
    (vii) Methods of determining eligibility must be consistent with the 
objective of assisting all eligible persons to qualify.
    (2) Provide that the State agency will establish methods for 
identifying the expenditures for assistance for any groups included in 
the plan for whom Federal financial participation in assistance may not 
be claimed.
    (3) In addition, a State plan under title IV-A, X, XIV, or XVI of 
the Act, must: Provided that no aid or assistance will be provided under 
the plan to an individual with respect to a period for which he is 
receiving aid or assistance under a State plan approved under any other 
of such titles or under title I of the Act.
    (b) Federal financial participation. (1) The provisions which govern 
Federal financial participation in assistance payments are set forth in 
the Social Security Act, throughout this chapter, and in other policy 
issuances of the Secretary. Where indicated, State plan provisions are 
prerequisite to Federal financial participation with respect to the 
applicable group and payments. State plan provisions on need, the amount 
of assistance, and eligibility determine the limits of Federal financial 
participation. Federal financial participation is excluded from 
assistance payments in which the State refuses to participate because of 
the failure of a local authority to apply such State plan provisions.
    (2) The following is a summary statement regarding the groups for 
whom Federal financial participation is available. (More detailed 
information is given elsewhere.)
    (i) OAA--for needy individuals under the plan who are 65 years of 
age or older.
    (ii) AFDC--for:
    (a) Needy children under the plan who are:
    (1) Under the age of 18, or age 18 if a full-time student in a 
secondary school, or in the equivalent level of vocational or technical 
training, and reasonably expected to complete the program before 
reaching age 19;
    (2) Deprived of parental support or care by reason of the death, 
continued absence from the home, or physical or mental incapacity of a 
parent, or unemployment of a principal earner, and
    (3) Living in the home of a parent or of certain relatives specified 
in the Act.
    (b) The parent(s) of a dependent child, a caretaker relative (other 
than a parent) of a dependent child, and, in certain situations, a 
parent's spouse.
    (iii) AB--for needy individual's under the plan who are blind.
    (iv) APTD--for needy individuals under the plan who are 18 years of 
age or older and permanently and totally disabled.
    (v) AABD--for needy individuals under the plan who are aged, blind, 
or 18 years of age or older and permanently and totally disabled.
    (3) Federal financial participation is available in assistance 
payments made for the entire month in accordance with the State plan if 
the individual was eligible for a portion of the month, provided that 
the individual was eligible on the date that the payment was made; 
except that where it has been determined that the State agency had 
previously denied assistance to which the individual was entitled, 
Federal financial participation will be provided in any corrective 
payment regardless of whether the individual is eligible on the date 
that the corrective payment is made.
    (4) Federal financial participation is available in assistance 
payments which are continued in accordance with the State plan, for a 
temporary period during which the effects of an eligibility condition 
are being overcome, e.g., blindness in AB, disability in APTD,

[[Page 61]]

physical or mental incapacity, continued absence of a parent, or 
unemployment of a principal earner in AFDC.
    (5) Where changed circumstances or a hearing decision makes the 
individual ineligible for any assistance, or eligible for a smaller 
amount of assistance than was actually paid, Federal financial 
participation is available in excess payments to such individuals, for 
not more than one month following the month in which the circumstances 
changed or the hearing decision was rendered. Federal financial 
participation is available where assistance is required to be continued 
unadjusted because a hearing has been requested.

[36 FR 3866, Feb. 27, 1971, as amended at 38 FR 8744, Apr. 6, 1973; 39 
FR 26912, July 24, 1974; 40 FR 32958, Aug. 5, 1975; 47 FR 5674, Feb. 5, 
1982; 47 FR 47828, Oct. 28, 1982; 51 FR 9204, Mar. 18, 1986; 57 FR 
30158, July 8, 1992]



Sec.233.20  Need and amount of assistance.

    (a) Requirements for State Plans. A State Plan for OAA, AFDC, AB, 
APTD or AABD must, as specified below:
    (1) General. (i) Provide that the determination of need and amount 
of assistance for all applicants and recipients will be made on an 
objective and equitable basis and all types of income will be taken into 
consideration in the same way except where otherwise specifically 
authorized by Federal statute and
    (ii) Provide that the needs, income, and resources of individuals 
receiving SSI benefits under title XVI, individuals with respect to whom 
Federal foster care payments are made, individuals with respect to whom 
State or local foster care payments are made, individuals with respect 
to whom Federal adoption assistance payments are made, or individuals 
with respect to whom State or local adoption assistance payments are 
made, for the period for which such benefits or payments are received, 
shall not be included in determining the need and the amount of the 
assistance payment of an AFDC assistance unit; except that the needs, 
income, and resources of an individual with respect to whom Federal 
adoption assistance payments are made, or individuals with respect to 
whom State or local adoption assistance payments are made are included 
in determining the need and the amount of the assistance payment for an 
AFDC assistance unit of which the individual would otherwise be regarded 
as a member where the amount of the assistance payment that the unit 
would receive would not be reduced by including the needs, income, and 
resources of such individual. Under this requirement, ``individuals 
receiving SSI benefits under title XVI'' include individuals receiving 
mandatory or optional State supplementary payments under section 1616(a) 
of the Social Security Act or under section 212 of Public Law 93-66, and 
``individuals with respect to whom Federal foster care payments are 
made'' means a child with respect to whom Federal foster care 
maintenance payments under section 472(b) and defined in section 
475(4)(A) of title IV-E of the Social Security Act are made, and a child 
whose costs in a foster family home or child care institution are 
covered by the Federal foster care maintenance payments made with 
respect to his or her minor parent under sections 472(h) and 475(4)(B) 
of title IV-E. ``Individuals with respect to whom Federal adoption 
assistance payments are made'' means a child who receives payments made 
under an approved title IV-E plan based on an adoption assistance 
agreement between the State and the adoptive parents of a child with 
special needs, pursuant to sections 473 and 475(3) of the Social 
Security Act.
    (iii) For AFDC, when an individual who is required to be included in 
the assistance unit pursuant to Sec.206.10(a)(1)(vii) is also required 
to be included in another assistance unit, those assistance units must 
be consolidated, and treated as one assistance unit for purposes of 
determining eligibility and the amount of payment.
    (iv) For AFDC, when a State learns of an individual who is required 
to be included in the assistance unit after the date he or she is 
required to be included in the unit, the State must redetermine the 
assistance unit's eligibility and payment amount, including the need, 
income, and resources of the individual. This redetermination must be 
retroactive to the date that the individual was required to be in the 
assistance unit either through birth/

[[Page 62]]

adoption or by becoming a member of the household. Any resulting 
overpayment must be recovered or corrective payment made pursuant to 
Sec.233.20(a)(13).
    (v) In determining need and the amount of payment for AFDC, all 
income and resources of an individual required to be in the assistance 
unit, but subject to sanction under Sec.250.34 or because of an 
intentional program violation under the optional fraud control program 
implementing section 416 of the Social Security Act, are considered 
available to the assistance unit to the same extent that they would be 
if the person were not subject to a sanction. However, the needs of the 
sanctioned individual(s) are not considered. In accord with Sec.
250.34(c), if a parent in an AFDC-UP case is sanctioned pursuant to 
Sec.233.100(a)(5), the needs of the second parent are not taken into 
account in determining the family's need for assistance and the amount 
of the assistance payment unless the second parent is participating in 
the JOBS program. An individual required to be in an assistance unit 
pursuant to Sec.206.10(a)(1)(vii) but who fails to cooperate in 
meeting a condition of his or her eligibility for assistance is a 
sanctioned individual whose needs, income, and resources are treated in 
the manner described above.
    (2) Standards of assistance. (i) Specify a statewide standard, 
expressed in money amounts, to be used in determining (a) the need of 
applicants and recipients and (b) the amount of the assistance payment.
    (ii) In the AFDC plan, provide that by July 1, 1969, the State's 
standard of assistance for the AFDC program will have been adjusted to 
reflect fully changes in living costs since such standards were 
established, and any maximums that the State imposes on the amount of 
aid paid to families will have been proportionately adjusted. In such 
adjustment a consolidation of the standard (i.e., combining of items) 
may not result in a reduction in the content of the standard. In the 
event the State is not able to meet need in full under the adjusted 
standard, the State may make ratable reductions in accordance with 
paragraph (a)(3)(viii) of this section. Nevertheless, if a State 
maintains a system of dollar maximums these maximums must be 
proportionately adjusted in relation to the updated standards.
    (iii) Provide that the standard will be uniformly applied throughout 
the State except as provided under Sec.239.54.
    (iv) Include the method used in determining need and the amount of 
the assistance payment. For AFDC, the method must provide for rounding 
down to the next lower whole dollar when the result of determining the 
standard of need or the payment amount is not a whole dollar. Proration 
under Sec.206.10(a)(6)(i)(D) to determine the amount of payment for 
the month of application must occur before rounding to determine the 
payment amount for that month.
    (v) If the State IV-A agency includes special need items in its 
standard:
    (A) Describe those that will be recognized and the circumstances 
under which they will be included, and
    (B) Provide that they will be considered for all applicants and 
recipients requiring them; except that:
    (1) Under AFDC, work expenses and child care (or care of 
incapacitated adults living in the same home and receiving AFDC) 
resulting from employment or participation in either a CWEP or an 
employment search program cannot be special needs, and
    (2) In a State which has a JOBS program under part 250, child care, 
transportation, work-related expenses, other work-related supportive 
services, and the costs of education (including tuition, books, and 
fees) resulting from participation in JOBS (including participation 
pursuant to Sec. Sec.250.46, 250.47, and 250.48) or any other 
education or training activity cannot be special needs.
    (vi) If the State chooses to establish the need of the individual on 
a basis that recognizes, as essential to his well-being, the presence in 
the home of other needy individuals, (A) specify the persons whose needs 
will be included in the individual's need, and (B) provide that the 
decision as to whether any individual will be recognized as essential to 
the recipient's well-being shall rest with the recipient.
    (vii) [Reserved]

[[Page 63]]

    (viii) Provide that the money amount of any need item included in 
the standard will not be prorated or otherwise reduced solely because of 
the presence in the household of a non-legally responsible individual; 
and the agency will not assume any contribution from such individual for 
the support of the assistance unit except as provided in paragraphs 
(a)(3)(xiv) and (a)(5) of this section and Sec.233.51 of this part.
    (ix) For AFDC, provide that a State shall consider utility payments 
made in lieu of any direct rental payment to a landlord or public 
housing agency to be shelter costs for applicants or recipients living 
in housing assisted under the U.S. Housing Act of 1937, as amended, and 
section 236 of the National Housing Act. The amount considered as a 
shelter payment shall not exceed the total amount the applicant or 
recipient is expected to contribute for the cost of housing as 
determined by HUD. Utility payments means only those payments made 
directly to a utility company or supplier which are for gas, 
electricity, water, heating fuel, sewerage systems, and trash and 
garbage collection. Utility payments are made ``in lieu of any direct 
rental payment to a landlord or public housing agency'' when, and only 
when, the AFDC family pays its entire required contribution at HUD's 
direction to one or more utility companies and does not make any direct 
payment to the landlord or the public housing agency. Housing covered by 
``the U.S. Housing Act of 1937, as amended, and section 236 of the 
National Housing Act'' means Department of Housing and Urban Development 
assisted housing which includes Indian and public housing, section 8 new 
and existing rental housing, and section 236 rental housing.
    (3) Income and resources. (i)(A) OAA, AB, APTD, AABD, Specify the 
amount and types of real and personal property, including liquid assets, 
that may be reserved, i.e., retained to meet the current and future 
needs while assistance is received on a continuing basis. In addition to 
the home, personal effects, automobile and income producing property 
allowed by the agency, the amount of real and personal property, 
including liquid assets, that can be reserved for each individual 
recipient shall not be in excess of two thousand dollars. Policies may 
allow reasonable proportions of income from businesses or farms to be 
used to increase capital assets, so that income may be increased; and 
(B) in AFDC--The amount of real and personal property that can be 
reserved for each assistance unit shall not be in excess of one thousand 
dollars equity value (or such lesser amount as the State specifies in 
its State plan) excluding only:
    (1) The home which is the usual residence of the assistance unit;
    (2) One automobile, up to $1,500 of equity value or such lower limit 
as the State may specify in the State plan; (any excess equity value 
must be applied towards the general resource limit specified in the 
State plan);
    (3) One burial plot (as defined in the State plan) for each member 
of the assistance unit;
    (4) Bona fide funeral agreements (as defined and within limits 
specified in the State plan) up to a total of $1,500 in equity value or 
such lower limit as the State may specify in the State plan for each 
member of the assistance unit (any excess equity value must be applied 
towards the general resource limit specified in the State plan). This 
provision addresses only formal agreements for funeral and burial 
expenses such as burial contracts, burial trusts or other funeral 
arrangements (generally with licensed funeral directors) and does not 
apply to other assets (e.g., passbook bank accounts, simple set-aside of 
savings, and cash surrender value of life insurance policies);
    (5) Real property for a period of six consecutive months (or, at the 
option of the State, nine consecutive months) which the family is making 
a good faith effort (as defined in the State plan) to sell, subject to 
the following provisions. The family must sign an agreement to dispose 
of the property and to repay the amount of aid received during such 
period that would not have been paid had the property been sold at the 
beginning of such period, but not to exceed the amount of the net 
proceeds of the sale. The family has five working days from the date it 
realizes cash from the sale of the excess real property to repay the 
overpayment; failure to make repayment

[[Page 64]]

within this period results in the cash being considered to be an 
available resource. If the family becomes ineligible for AFDC for any 
other reason during the conditional payment period while making a good 
faith effort to sell the property, or fails to sell the property by the 
end of the period despite such a good faith effort, then the amount of 
the overpayment attributable to the real property will not be determined 
and recovery will not be begun until the property is, in fact, sold. 
However, if the property was intentionally sold at less than fair market 
value so that a good faith effort to sell it was not made, or if it is 
otherwise determined that a good faith effort to sell the property is 
not being made, the overpayment amount shall be computed using the fair 
market value determined at the beginning of the period. For applicants, 
the conditional payment period begins with the first payment month for 
which all otherwise applicable eligibility conditions are met and 
payment is authorized. For recipients who acquire property while 
receiving assistance, the period begins with the payment month in which 
the recipient receives the property; and
    (6) At State option, basic maintenance items essential to day-to-day 
living such as clothes, furniture and other similarly essential items of 
limited value.
    (ii) Provide that in determining need and the amount of the 
assistance payment, after all policies governing the reserves and 
allowances and disregard or setting aside of income and resources 
referred to in this section have been uniformly applied:
    (A) In determining need, all remaining income and resources shall be 
considered in relation to the State's need standard;
    (B) In determining financial eligibility and the amount of the 
assistance payment all remaining income (except unemployment 
compensation received by an unemployed principal earner) and, except for 
AFDC, all resources may be considered in relation to either the State's 
need standard or the State's payment standard. Unemployment compensation 
received by an unemployed principal earner shall be considered only by 
subtracting it from the amount of the assistance payment after the 
payment has been determined under the State's payment method;
    (C) States may have policies which provide for allocating an 
individual's income for his or her own support if the individual is not 
applying for or receiving assistance; for the support of other 
individuals living in the same household but not receiving assistance; 
and for the support of other individuals living in another household. 
Such other individuals are those who are or could be claimed by the 
individual as dependents for determining Federal personal income tax 
liability, or those he or she is legally obligated to support. No income 
may be allocated to meet the needs of an individual who has been 
sanctioned under Sec.224.51, Sec.232.11(a)(2), Sec.232.12(d), 
Sec.238.22 or Sec.240.22 or who is required to be included in the 
assistance unit and has failed to cooperate. The amount allocated for 
the individual and the other individuals who are living in the home must 
not exceed the State's need standard amount for a family group of the 
same composition. The amount allocated for individuals not living in the 
home must not exceed the amount actually paid.
    (D) Income after application of disregards, except as provided in 
paragraph (a)(3)(xiii) of this section, and resources available for 
current use shall be considered. To the extent not inconsistent with any 
other provision of this chapter, income and resources are considered 
available both when actually available and when the applicant or 
recipient has a legal interest in a liquidated sum and has the legal 
ability to make such sum available for support and maintenance.
    (E) For AFDC, income tax refunds, but such payments shall be 
considered as resources; and
    (F) When the AFDC assistance unit's income, after applying 
applicable disregards, exceeds the State need standard for the family 
because of receipt of nonrecurring earned or unearned lump sum income 
(including for AFDC, title II and other retroactive monthly benefits, 
and payments in the nature of a windfall, e.g., inheritances or lottery 
winnings, personal injury and worker compensation awards, to the extent 
it

[[Page 65]]

is not earmarked and used for the purpose for which it is paid, i.e., 
monies for back medical bills resulting from accidents or injury, 
funeral and burial costs, replacement or repair of resources, etc.), the 
family will be ineligible for aid for the full number of months derived 
by dividing the sum of the lump sum income and other income by the 
monthly need standard for a family of that size. Any income remaining 
from this calculation is income in the first month following the period 
of ineligibility. The period of ineligibility shall begin with the month 
of receipt of the nonrecurring income or, at State option, as late as 
the corresponding payment month. For purposes of applying the lump sum 
provision, family includes all persons whose needs are taken into 
account in determining eligibility and the amount of the assistance 
payment, and includes solely for determining the income and resources of 
a family an individual who must be in a family pursuant to Sec.
206.10(a)(1)(vii) but who does not meet a condition of his or her 
eligibility due to a failure to cooperate or is required by law to have 
his or her needs excluded from an assistance unit's AFDC grant 
calculation due to the failure to perform some action. A State may 
shorten the remaining period of ineligibility when: the standard of need 
increases and the amount the family would have received also changes 
(e.g., situations involving additions to the family unit during the 
period of ineligibility of persons who are otherwise eligible for 
assistance); the lump sum income or a portion thereof becomes 
unavailable to the family for a reason beyond the control of the family; 
or the family incurs and pays for medical expenses. If the State chooses 
to shorten the period of ineligibility, the State plan shall:
    (1) Identify which of the above situations are included;
    (2) In the case of situations involving an increase in the need 
standard and changes in the amount that should have been paid to the 
family, specify the types of circumstances which will be included;
    (3) In the case of situations involving the unavailability of the 
lump sum income, include a definition of unavailability, and specify 
what reasons will be considered beyond the control of the family; and
    (4) In the case of situations involving the payment of medical 
expenses, specify the types of medical expenses the State will allow to 
be offset against the lump sum income.


For purposes of this paragraph (a)(3): Automobile means a passenger car 
or other motor vehicle used to provide transportation of persons or 
goods. (In AFDC, in appropriate geographic areas, one alternate primary 
mode of transportation may be substituted for the automobile); Equity 
value means fair market value minus encumbrances (legal debts); Fair 
market value means the price an item of a particular make, model, size, 
material or condition will sell for on the open market in the geographic 
area involved (If a motor vehicle is especially equipped with apparatus 
for the handicapped, the apparatus shall not increase the value of the 
vehicle); Liquid assets are those properties in the form of cash or 
other financial instruments which are convertible to cash and include 
savings accounts, checking accounts, stocks, bonds, mutual fund shares, 
promissory notes, mortgages, cash value of insurance policies, and 
similar properties; Need standard means the money value assigned by the 
State to the basic and special needs it recognizes as essential for 
applicants and recipients; Payment standard means the amount from which 
non-exempt income is subtracted.

    (iii) States may prorate income received by individuals employed on 
a contractual basis over the period of the contract or may prorate 
intermittent income received quarterly, semiannually, or yearly over the 
period covered by the income. In OAA, AB, APTD and AABD, they may use 
the prorated amount to determine need under Sec.233.23 and the amount 
of the assistance payment under Sec. Sec.233.24 and 233.25. In AFDC, 
they may use the prorated amount to determine need under Sec.233.33 
and the amount of the assistance payment under Sec. Sec.233.34 and 
233.35.
    (iv) Provide that in determining the availability of income and 
resources, the following will not be included as income:

[[Page 66]]

    (A) Except for AFDC, income equal to expenses reasonably 
attributable to the earning of income (including earnings from public 
service employment);
    (B) Grants, such as scholarships, obtained and used under conditions 
that preclude their use for current living costs;
    (C) Home produce of an applicant or recipient, utilized by him and 
his household for their own consumption;
    (D) For AFDC, any amounts paid by a State IV-A agency from State-
only funds to meet needs of children receiving AFDC, if the payments are 
made under a statutorily-established State program which has been 
continuously in effect since before January 1, 1979;
    (E) For AFDC, income tax refunds, but such payments shall be 
considered as resources; and
    (F) At State option, small nonrecurring gifts, such as those for 
Christmas, birthdays and graduations, not to exceed $30 per recipient in 
any quarter; and
    (G) For AFDC, the amount paid to the family by the IV-A agency under 
Sec.232.20(d) or, in a State that treats direct support payments as 
income under Sec.233.20(a)(3)(v)(B), the first $50 received by the 
assistance unit which represents a current monthly support obligation or 
a voluntary support payment. In no case shall the total amount 
disregarded exceed $50 per month per assistance unit.
    (v) Provide that agency policies will assure that:
    (A) In determining eligibility for an assistance payment, support 
payments assigned under Sec.232.11 of this chapter will be treated in 
accordance with Sec.232.20 and Sec.232.21 of this chapter; and
    (B) In determining the amount of an assistance payment, assigned 
support payments retained in violation of Sec.232.12(b)(4) of this 
chapter, will be counted as income to meet need unless the approved IV-A 
State plan provides that such support payments are subject to IV-D 
recovery under Sec. Sec.302.31(a)(3) and 303.80 of this title or 
unless such payments are sufficient to render the family ineligible as 
provided at Sec.232.20 of this chapter.
    (vi)(A) In family groups living together, income of the spouse is 
considered available for his spouse and income of a parent is considered 
available for children under 21, except as provided in paragraphs 
(a)(3)(xiv) and (a)(3)(xviii) of this section for AFDC. If an individual 
is a spouse or parent who is a recipient of SSI benefits under title 
XVI, an individual with respect to whom Federal foster care payments are 
made, an individual with respect to whom State or local foster care 
payments are made, an individual with respect to whom Federal adoption 
assistance payments are made, or an individual with respect to whom 
State or local adoption assistance payments are made, then, for the 
period for which such benefits or payments are received, his or her 
income and resources shall not be counted as income and resources 
available to the AFDC unit except that a child receiving adoption 
assistance payments will not be excluded if such exclusion would cause 
the AFDC benefits of the assistance unit of which the child would 
otherwise be considered a member to be reduced. For purposes of this 
exception, ``a recipient of SSI benefits under title XVI'' includes a 
spouse or parent receiving mandatory or optional State supplementary 
payments under section 1616(a) of the Social Security Act or under 
section 212 of Public Law 93-66 and an ``individual with respect to whom 
Federal foster care payments are made'' means a child with respect to 
whom Federal foster care maintenance payments are made under section 
472(b) and defined in section 475(4)(A) of the Act, and a child whose 
costs in a foster family home or child-care institution are covered by 
the foster care maintenance payments made with respect to his or her 
minor parent under sections 472(h) and 475(4)(B) of the Act. 
``Individuals with respect to whom Federal adoption assistance payments 
are made'' means a child who receives payments made under an approved 
title IV-E plan based on an adoption assistance agreement between the 
State and the adoptive parents of a child with special needs, pursuant 
to sections 473 and 475(3) of the Social Security Act.
    (B) Income of an alien parent, who is disqualified pursuant to Sec.
233.50(c) is considered available to the otherwise

[[Page 67]]

eligible child by applying the stepparent deeming formula at 45 CFR 
233.20(a)(3)(xiv).
    (vii) If the State agency establishes policy under which assistance 
from other agencies and organizations will not be deducted in 
determining the amount of assistance to be paid, provide that no 
duplication shall exist between such other assistance and that provided 
by the public assistance agency. In such complementary program 
relationships, nonduplication shall be assured by provision that such 
aid will be considered in relation to: (a) The different purpose for 
which the other agency grants aid such as vocational rehabilitation; (b) 
the provision of goods and services that are not included in the 
statewide standard of the public assistance agency, e.g., a private 
agency might provide money for special training for a child or for 
medical care when the public assistance agency does not carry this 
responsibility; or housing and urban development payments might be 
provided to cover moving expenses that are not included in the 
assistance standard; or (c) the fact that public assistance funds are 
insufficient to meet the total amount of money determined to be needed 
in accordance with the statewide standard. In such instances, grants by 
other agencies in an amount sufficient to make it possible for the 
individual to have the amount of money determined to be needed, in 
accordance with the public assistance agency standard, will not 
constitute duplication.
    (viii) Provide that: (A) Payment will be based on the determination 
of the amount of assistance needed; (B) if full individual payments are 
precluded by maximums or insufficient funds, adjustments will be made by 
methods applied uniformly statewide; (C) in the case of AFDC no payment 
of aid shall be made to an assistance unit in any month in which the 
amount of aid prior to any adjustments is determined to be less than 
$10; and (D) an individual who is denied aid because of the limitation 
specified in (C) of this section, or because the payment amount is 
determined to be zero as a result of rounding the payment amount as 
required by Sec.233.20(a)(2)(iv), shall be deemed a recipient of aid 
for all other purposes except participation in the Community Work 
Experience Program.
    (ix) Provide that the agency will establish and carry out policies 
with reference to applicants' and recipients' potential sources of 
income that can be developed to a state of availability.
    (x) Provide that the income and resources of individuals receiving 
SSI benefits under title XVI, individuals with respect to whom Federal 
foster care payments are made, individuals with respect to whom State or 
local foster care payments are made, individuals with respect to whom 
Federal adoption assistance payments are made, or individuals with 
respect to whom State or local adoption assistance payments are made, 
for the period for which such benefits or payments are received, shall 
not be counted as income and resources of an assistance unit applying 
for or receiving assistance under title IV-A; except that a child 
receiving adoption assistance payments will not be excluded if such 
exclusion would cause the AFDC benefits of the assistance unit of which 
the child would otherwise be considered a member to be reduced. Under 
this requirement, ``individuals receiving SSI benefits under title XVI'' 
include individuals receiving mandatory or optional State supplementary 
payments under section 1616(a) of the Social Security Act or under 
section 212 of Public Law 93-66 and, ``individuals with respect to whom 
Federal foster care payments are made'' means a child with respect to 
whom Federal foster care maintenance payments are made under section 
472(b) and defined in section 475(4)(A) of the Act, and a child whose 
costs in a foster family home or child-care institution are covered by 
foster care maintenance payments made with respect to his or her minor 
parent under sections 472(h) and 475(4)(B) of the Act. ``Individuals 
with respect to whom Federal adoption assistance payments are made'' 
means a child who receives payments made under an approved title IV-E 
plan based on an adoption assistance agreement between the State and the 
adoptive parents of a child with special needs, pursuant to sections 473 
and 475(3) of the Social Security Act.

[[Page 68]]

    (xi) In the case of AFDC if the State chooses to count the value of 
the food stamp coupons as income, provide that the State plan shall:
    (A) Identify the amount for food included in its need and payment 
standards for an assistance unit of the same size and composition. 
(States which have a flat grant system must estimate the amount based on 
historical data or some other justifiable procedure.); and
    (B) Specify the amount of such food stamp coupons that it will count 
as income. Under this requirement, the amount of food stamp coupons 
which a State may count as income may not exceed the amount for food 
established in its payment standard for an assistance unit of the same 
size and composition.
    (xii) In the case of AFDC if the State chooses to count the value of 
the governmental rent or housing subsidies as income, provide that the 
State plan shall:
    (A) Identify the amount for shelter included in its need and payment 
standards for an assistance unit of the same size and composition. 
(States which have a flat grant system must estimate this amount based 
on historical data or some other justifiable procedure.); and
    (B) Specify the amount of such housing assistance that it will count 
as income. Under this requirement, the amount of such rent or housing 
subsidies which a State may count as income may not exceed the amount 
for shelter established in its payment standard for assistance unit of 
the same size and composition.
    (xiii) Under the AFDC plan, provide that no assistance unit is 
eligible for aid in any month in which the unit's income (other than the 
assistance payment) exceeds 185 percent of the State's need standard 
(including special needs) for a family of the same composition 
(including special needs), without application of the disregards in 
paragraph (a)(11)(i) (except to the extent provided for under paragraph 
(a)(3)(xix)), paragraph (a)(11)(ii) and paragraph (a)(11)(viii) of this 
section.
    (xiv) For AFDC, in States that do not have laws of general 
applicability holding the stepparent legally responsible to the same 
extent as the natural or adoptive parent, the State agency shall count 
as income to the assistance unit the income of the stepparent (i.e., one 
who is married, under State law, to the child's parent) of an AFDC child 
who is living in the household with the child after applying the 
following disregards (exception: if the stepparent is included in the 
assistance unit, the disregard under paragraph (a)(11) (i) and (ii) of 
this section apply instead:
    (A) The first $90 of the gross earned income of the stepparent;
    (B) An additional amount for the support of the stepparent and any 
other individuals who are living in the home, but whose needs are not 
taken into account in making the AFDC eligibility determinations except 
for sanctioned individuals or individuals who are required to be 
included in the assistance unit but have failed to cooperate and are or 
could be claimed by the stepparent as dependents for purposes of 
determining his or her Federal personal income tax liability. This 
disregarded amount shall equal the State's need standard amount for a 
family group of the same composition as the stepparent and those other 
individuals described in the preceding sentence;
    (C) Amounts actually paid by the stepparent to individuals not 
living in the home but who are or could be claimed by him or her as 
dependents for purposes of determining his or her Federal personal 
income tax liability; and
    (D) Payments by such stepparent of alimony or child support with 
respect to individuals not living in the household.
    (xv) For AFDC, provide for the consideration of the income and 
resources of an alien's sponsor who is an individual as provided in 
Sec.233.51.
    (xvi) For AFDC, provide that in considering the availability of 
income and resources, support and maintenance assistance (including home 
energy assistance) will be taken into account in accordance with Sec.
233.53.
    (xvii) In the case of AFDC, if the State chooses to disregard 
monthly income of any dependent child when the income is derived from 
participation in a program under the JTPA, provide that the State plan 
shall:

[[Page 69]]

    (A) Identify from which programs under the JTPA, income will be 
disregarded;
    (B) In the case of earned income, specify what amount will be 
disregarded, and the length of time the disregard will be applicable (up 
to six months per calendar year); and
    (C) In the case of unearned income, specify what amount will be 
disregarded, and the length of time per calendar year the disregard will 
be applicable if any such limit is chosen.
    (xviii) For AFDC, in the case of a dependent child whose parent is a 
minor under the age of 18 (without regard to school attendance), the 
State shall count as income to the assistance unit the income, after 
appropriate disregards, of such minor's own parent(s) living in the same 
household as the minor and dependent child. The disregards to be applied 
are the same as are applied to the income of a stepparent pursuant to 
paragraph (a)(3)(xiv) of this section. However, in applying the 
disregards, each employed parent will receive the benefit of the work 
expense disregard in paragraph (a)(3)(xiv)(A) of this section.
    (xix) In the case of AFDC, if the State chooses to disregard monthly 
earned income of dependent children who are full-time students in the 
determination of whether the family's income exceeds the limit under 
Sec.233.20(a)(3)(xiii) of this section, provide that the State plan 
shall specify what amounts will be disregarded and the length of time 
the disregard will be applicable (up to six months per calendar year) 
except that earned income derived from participation in a program under 
the JTPA may only be disregarded under this paragraph, paragraph 
(a)(3)(xvii) or a combination of both paragraphs for a total of 6 months 
per calendar year.
    (xx) In the case of AFDC, if the State chooses to disregard in the 
determination of eligibility the monthly earned income of dependent 
children applying for AFDC who are full-time students, provide that the 
State plan shall:
    (A) Specify the amount that will be disregarded, and
    (B) Provide that the disregard shall only apply to the extent that 
the earned income is also disregarded pursuant to paragraph (a)(3)(xix) 
of this section.
    (xxi) Provide that the principal of a bona fide loan will not be 
counted as income or resources in the determination of eligibility and 
the amount of assistance. Interest earned on a loan is counted as 
unearned income in the month received and as resources thereafter and 
purchases made with a loan are counted as resources. For purposes of 
this paragraph, a loan is considered bona fide when it meets objective 
and reasonable criteria included in the State plan.
    (4) Disregard of income in OAA, AFDC, AB, APTD, OR AABD. (i) For all 
programs except AFDC. If the State chooses to disregard income from all 
sources before applying other provisions for disregarding or setting 
aside income, specify the amount that is first to be disregarded, but 
not more than $7.50 per month, of any income of an individual, child or 
relative claiming assistance. All income must be included such as social 
security or other benefits, earnings, contributions from relatives, or 
other income the individual may have.
    (ii) Provide that in determining eligibility for public assistance 
and the amount of the assistance payment, the following will be 
disregarded as income and resources:
    (a) In OAA, AB, APTD, and AABD, the value of the coupon allotment 
under the Food Stamp Act of 1964 in excess of the amount paid for the 
coupons;
    (b) The value of the U.S. Department of Agriculture donated foods 
(surplus commodities);
    (c) Any payment received under title II of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970;
    (d) Grants or loans to any undergraduate student for educational 
purposes made or insured under any programs administered by the 
Secretary of Education except the programs under the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et 
seq.). Student financial assistance provided under the Carl D. Perkins 
Vocational and Applied

[[Page 70]]

Technology Education Act will be disregarded in accordance with 
paragraph (a)(4)(ii)(t) of this section.
    (e) Any funds distributed per capita to or held in trust for members 
of any Indian tribe under Public Law 92-254 or Pub. L. 94-540;
    (f) Any benefits received under title VII, Nutrition Program for the 
Elderly, of the Older Americans Act of 1965, as amended;
    (g) Payments for supporting services or reimbursement of out-of-
pocket expenses made to individual volunteers serving as foster 
grandparents, senior health aides, or senior companions, and to persons 
serving in the Service Corps of Retired Executives (SCORE) and Active 
Corps of Executives (ACE) and any other programs under titles II and 
III, pursuant to section 418 of Pub. L. 93-113;
    (h) Payments to applicants or recipients participating in the 
Volunteers in Service to America (VISTA) Program, except that this 
disregard will not be applied when the Director of ACTION determines 
that the value of all such payments, adjusted to reflect the number of 
hours such volunteers are serving, is equivalent to or greater than the 
minimum wage then in effect under the Fair Labor Standards Act of 1938, 
or the minimum wage under the laws of the States where the volunteers 
are serving, whichever is greater. (Section 404(g) of Pub. L. 93-113, as 
amended by section 9 of Pub. L. 96-143);
    (i) The value of supplemental food assistance received under the 
Child Nutrition Act of 1966 as amended, and the special food service 
program for children under the National School Lunch Act, as amended 
(Pub. L. 92-433 and Pub. L. 93-150);
    (j) [Reserved]
    (k) Pursuant to section 15 of Public Law 100-241, any of the 
following distributions made to a household, an individual Native, or a 
descendant of a Native by a Native Corporation established pursuant to 
the Alaska Native Claims Settlement Act (ANCSA) (Pub. L. 92-203, as 
amended):
    (1) Cash distributions (including cash dividends on stock from a 
Native Corporation) received by an individual are never counted as 
income or resources to the extent that such cash does not, in the 
aggregate, exceed $2,000 in a year. Cash which, in the aggregate, is in 
excess of $2,000 in a year is not subject to the income and resources 
disregards in this paragraph (a)(4)(ii)(k)(1);
    (2) Stock (including stock issued or distributed by a Native 
Corporation as a dividend or distribution on stock);
    (3) A partnership interest;
    (4) Land or an interest in land (including land or an interest in 
land received from a Native Corporation as a dividend or distribution on 
stock); and
    (5) An interest in a settlement trust.
    (l) Benefits paid to eligible households under the Low Income Home 
Energy Assistance Act of 1981 pursuant to section 2605(f) of Pub. L. 97-
35;
    (m) Effective October 17, 1975, pursuant to section 6 of Pub. L. 94-
114 (89 Stat. 577, 25 U.S.C. 459e) receipts distributed to members of 
certain Indian tribes which are referred to in section 5 of Pub. L. 94-
114 (89 Stat. 577, 25 U.S.C. 459d).
    (n) Pursuant to section 7 of Public Law 93-134, as amended by 
section 4 of Public Law 97-458, Indian judgment funds that are held in 
trust by the Secretary of the Interior (including interest and 
investment income accrued while such funds are so held in trust), or 
distributed per capita to a household or member of an Indian tribe 
pursuant to a plan prepared by the Secretary of the Interior and not 
disapproved by a joint resolution of the Congress, and initial purchases 
made with such funds. This disregard does not apply to proceeds from the 
sale of initial purchases, subsequent purchases made with funds derived 
from the sale or conversion of the initial purchases, or to funds or 
initial purchases which are inherited or transferred.
    (o) Pursuant to section 2 of Public Law 98-64, all funds held in 
trust by the Secretary of the Interior for an Indian tribe (including 
interest and investment income accrued while such funds are so held in 
trust) and distributed per capita to a household or member of an Indian 
tribe, and initial purchases made with such funds. This disregard does 
not apply to proceeds from the sale of initial purchases, subsequent 
purchases made with funds derived from the sale or conversion of initial

[[Page 71]]

purchases, or to funds or initial purchases which are inherited or 
transferred.
    (p) Any student financial assistance provided under programs in 
title IV of the Higher Education Act of 1965, as amended, and under 
Bureau of Indian Affairs education assistance programs.
    (q) For AFDC, any payments made as restitution to an individual 
under title I of Public Law 100-383 (the Civil Liberties Act of 1988) or 
under title II of Public Law 100-383 (the Aleutian and Pribilof Islands 
Restitution Act).
    (r) Any Federal major disaster and emergency assistance provided 
under the Disaster Relief Act of 1974, as amended by Public Law 100-707 
(the Disaster Relief and Emergency Assistance Amendments of 1988) and 
comparable disaster assistance provided by States, local governments and 
disaster assistance organizations.
    (s) Any payments made pursuant to the settlement in the In Re Agent 
Orange Product liability litigation, M.D.L. No. 381 (E.D.N.Y.).
    (t) Student financial assistance made available for the attendance 
costs defined in this paragraph under programs in the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et 
seq.). Attendance costs are: tuition and fees normally assessed a 
student carrying the same academic workload as determined by the 
institution, and including costs for rental or purchase of any 
equipment, materials, or supplies required of all students in the same 
course of study; and an allowance for books, supplies, transportation, 
dependent care and miscellaneous personal expenses for a student 
attending the institution on at least a half-time basis, as determined 
by the institution.
    (u) For AFDC, any payments made pursuant to section 6(h)(2) of 
Public Law 101-426, the Radiation Exposure Compensation Act.
    (iii) Provide that income and resources which are disregarded or set 
aside under this part will not be taken into consideration in 
determining the need of any other individual for assistance.
    (iv) For AFDC, any amounts determined to have been paid by a State 
from State-only funds to supplement or otherwise increase the amount of 
aid paid to an assistance unit as computed under Sec.233.35 for a 
month in recognition of current or anticipated needs of the assistance 
unit for that same month shall not be counted as income--to the extent 
that the total of the State supplemental payment, the AFDC payment and 
actual income (i.e., the amount of income received during the payment 
month after subtracting from gross income the $75 work expense disregard 
(to recognize mandatory payroll deductions, transportation costs, and 
other work expenses), child care and other applicable disregards) 
received in that month are not in excess of what the State would have 
paid for that month to an assistance unit of the same size and 
composition with no income--in computing the assistance payment under 
Sec.233.35 for the corresponding payment month.
    (5) Proration of shelter, utilities, and similar needs in AFDC. (i) 
Provide that the State agency may prorate allowances in the need and 
payment standards for shelter, utilities, and similar needs when the 
AFDC assistance unit lives together with other individuals as a 
household; except that, the State shall not prorate with respect to any 
person receiving SSI to whom the statutory one-third reduction (section 
1612(a)(2)(A)(i) of the Act) is applied, or prorate when a bona fide 
landlord-tenant relationship exists. If the State chooses to prorate 
under this paragraph, it must prorate both the need standard and payment 
standard.
    (ii) If the State agency elects to prorate allowances for shelter, 
utilities, and similar needs the State plan must:
    (A) Indicate which allowances will be prorated, and describe the 
procedure which will be used to prorate the allowances;
    (B) Provide that the allowances will be prorated on a reasonable 
basis; and
    (C) Specify the circumstances under which proration will occur, 
including a description of which individuals are considered to be living 
with an AFDC assistance unit as a household.
    (6) Disregard of earned income; definition. Provide that for 
purposes of disregarding earned income the agency policies will include:

[[Page 72]]

    (i) A definition of earned income in accordance with the provisions 
of paragraphs (a)(6) (iii) through (ix) of this section; and
    (ii) Provision for disregarding earned income for the period during 
which it is earned, rather than when it is paid, in cases of lump-sum 
payment for services rendered over a period of more than 1 month.
    (iii) The term earned income encompasses income in cash or in kind 
earned by an individual through the receipt of wages, salary, 
commissions, or profit from activities in which he is engaged as a self-
employed individual or as an employee. For AFDC, earned income means 
gross earned income prior to any deductions for taxes or for any other 
purposes, except as provided in paragraph (a)(6)(v). Such earned income 
may be derived from his own employment, such as a business enterprise, 
or farming; or derived from wages or salary received as an employee. It 
includes earnings over a period of time for which settlement is made at 
one given time, as in the instance of sale of farm crops, livestock, or 
poultry. For OAA, AB, APTD and AABD only, in considering income from 
farm operation, the option available for reporting under OASDI, namely 
the cash receipts and disbursements method, i.e., a record of actual 
gross, of expenses, and of net, is an individual determination and is 
acceptable also for these assistance programs.
    (iv) With reference to commissions, wages, or salary, the term 
earned income means the total amount, irrespective of personal expenses, 
such as income-tax deductions, lunches, and transportation to and from 
work, and irrespective of expenses of employment which are not personal, 
such as the cost of tools, materials, special uniforms, or 
transportation to call on customers.
    (v)(A) For OAA, AB, APTD, and AABD, with respect to self-employment, 
the term earned income means the total profit from business enterprise, 
farming, etc., resulting from a comparison of the gross income received 
with the business expenses, i.e., total cost of the production of the 
income. Personal expenses, such as income-tax payments, lunches, and 
transportation to and from work, are not classified as business 
expenses.
    (B) For AFDC, with respect to self-employment the term earned income 
means the total profit from business enterprise, farming, etc., 
resulting from a comparison of the gross receipts with the business 
expenses, i.e., expenses directly related to producing the goods or 
services and without which the goods or services could not be produced. 
However, items such as depreciation, personal business and entertainment 
expenses, personal transportation, purchase of capital equipment and 
payments on the principal of loans for capital assets or durable goods 
are not business expenses.
    (vi) The definition shall exclude the following from earned income: 
Returns from capital investment with respect to which the individual is 
not himself actively engaged, as in a business (for example, under most 
circumstances, dividends and interest would be excluded from earned 
income); benefits (not in the nature of wages, salary, or profit) 
accruing as compensation, or reward for service, or as compensation for 
lack of employment (for example, pensions and benefits, such as United 
Mine Workers' benefits or veterans' benefits).
    (vii) With regard to the degree of activity, earned income is income 
produced as a result of the performance of services by a recipient; in 
other words, income which the individual earns by his own efforts, 
including managerial responsibilities, would be properly classified as 
earned income, such as management of capital investment in real estate. 
Conversely, for example, in the instance of capital investment wherein 
the individual carries no specific responsibility, such as where rental 
properties are in the hands of rental agencies and the check is 
forwarded to the recipient, the income would not be classified as earned 
income.
    (viii) Reserves accumulated from earnings are given no different 
treatment than reserves accumulated from any other sources.
    (7) Disregard of earned income; method. (i) Provide that for other 
than AFDC, the following method will be used for disregarding earned 
income: The applicable amounts of earned income to be

[[Page 73]]

disregarded will be deducted from the gross amount of earned income, and 
all work expenses, personal and non-personal, will then be deducted. 
Only the net amount remaining will be applied in determining need and 
the amount of the assistance payment.
    (ii) In applying the $30 and one-third disregard under paragraph 
(a)(11)(i)(D) of this section to an applicant for AFDC, there will be a 
preliminary step to determine whether the assistance unit is eligible 
without applying the disregard to the individual's earned income, by 
comparing the applicant's gross earned income (less the disregards in 
paragraphs (a)(11)(i) (A), (B) and (C)) and all of the assistance unit's 
other income to the State need standard. This preliminary step does not 
apply if the individual has received AFDC in one of the four months 
prior to the month of application.
    (8) Disregard of earned income applicable only to OAA, APTD, or 
AABD. If the State chooses to disregard earned income, specify the 
amount to be disregarded of the first $80 per month of income that is 
earned by an aged or disabled individual claiming OAA, APTD, or AABD, 
who is not blind, but not more than $20 per month plus one-half of the 
next $60 of such earned income.
    (9) Disregard of income and resources applicable only to APTD or 
AABD. If the State chooses to disregard income (which may be additional 
to the income disregarded under paragraph (a)(8) of this section) or 
resources for a disabled individual to achieve the fulfillment of a plan 
of self-support, provide that the amounts of additional income and 
resources will not exceed those found necessary for the period during 
which the individual is actually undergoing vocational rehabilitation, 
and specify the period, not in excess of 36 months, for which such 
amounts are to be disregarded.
    (10) Disregard of income and resources applicable only to AB or 
AABD. Provide that, in determining the need of individuals who are 
blind, (i) the first $85 per month of earned income of the individual 
plus one-half of earned income in excess of $85 per month will be 
disregarded; and (ii) if the individual has a plan for achieving self-
support, such additional income and resources as are necessary to 
fulfill such plan will be disregarded for a period not in excess of 12 
months. Such additional income and resources may be disregarded for an 
additional period not in excess of 24 months (for a total of 36 months), 
as specified in the State plan.
    (11) Disregard of income and resources applicable only to AFDC. (i) 
For purposes of eligibility determination, the State must disregard from 
the monthly earned income, i.e., earned income as defined in Sec.
233.20(a)(6)(iii), of each individual whose needs are included in the 
eligibility determination:
    (A) Disregard all of the monthly earned income of each child 
receiving AFDC if the child is a full-time student or is a part-time 
student who is not a full-time employee. A student is one who is 
attending a school, college, or university or a course of vocational or 
technical training designed to fit him or her for gainful employment and 
includes a participant in the Job Corps program under the Job Training 
Partnership Act (JTPA).
    (B) The first $90.
    (C) Where appropriate, an amount equal to $30 plus one-third of the 
earned income not already disregarded under paragraphs (a)(11)(i), 
(a)(11)(v) and (a)(11)(vi) of this section of an individual who received 
assistance in one of the four prior months.
    (D) An amount equal to the actual cost for the care of each 
dependent child or incapacitated adult living in the same home and 
receiving AFDC, but not to exceed $175 for each dependent child who is 
at least age two or each incapacitated adult, and not to exceed $200 for 
each dependent child who is under age two. For individuals not engaged 
in full-time employment or not employed throughout the month, the $175 
and $200 disregard limits may be applied, or the State agency may 
establish disregard limits less than $175 and $200.
    (E) Where appropriate, $30 of the earned income not already 
disregarded under paragraphs (a)(11) (i), (v), and (vi) of this section, 
in the case of an individual who reapplies for assistance within the 
eight-month period that he/she is eligible for the $30 disregard.

[[Page 74]]

    (ii) For purposes of benefit calculation for individuals found 
eligible under paragraph (a)(11)(i) of this section, the following 
disregards must be made by the State:
    (A) Disregard all of the monthly earned income of each child 
receiving AFDC if the child is a full-time student or is a part-time 
student who is not a full-time employee. A student is one who is 
attending a school, college, or university or a course of vocational or 
technical training designed to fit him or her for gainful employment and 
includes a participant in the Job Corps program under the Job Training 
Partnership Act (JTPA).
    (B) Disregard from any other individual's earned income the amounts 
specified in paragraphs (a)(11)(i)(B) and (a)(11)(i)(D) of this section, 
and $30 plus one-third of the individual's earned income not already 
disregarded under paragraphs (a)(11)(ii) and (a)(11)(v) of this section. 
However, the State may not provide the one-third portion of the 
disregard to an individual after the fourth consecutive month (any month 
for which the unit loses the $30 plus one-third disregard because of a 
provision in paragraph (a)(11)(iii) of this section, shall be considered 
as one of these months) it has been applied to the individual's earned 
income and may not apply the $30 disregard after the eighth month 
following the fourth consecutive month (regardless of whether the $30 
disregard was actually applied in those months) unless twelve 
consecutive months have passed during which the individual is not a 
recipient of AFDC. If income from a recurring source resulted in 
suspension or termination due to an extra paycheck, the month of 
ineligibility does not interrupt the accumulation of consecutive months 
of the $30 plus one-third disregard, nor does it count as one of the 
consecutive months.
    (iii) The applicable earned income disregards in paragraphs (i) (B) 
and (C) and (ii)(B) of this paragraph do not apply to the earned income 
of the individual for the month in which one of the following conditions 
apply to him:
    (A) An individual terminated his employment or reduced his earned 
income without good cause (as specified in the State plan) within the 
period of 30 days preceding such month;
    (B) An individual refused without good cause (as specified in the 
State plan) within the period of 30 days preceding such month to accept 
employment in which he is able to engage which is offered through the 
public employment offices of the State, or is otherwise offered by an 
employer if the offer of such employer is determined by the State or 
local agency administering the State plan, after notification by him, to 
be a bona fide offer of employment;
    (C) An individual failed without good cause (as specified in the 
State plan) to make a timely report (as defined in Sec.233.37(c)) of 
that income; or
    (D) The individual voluntarily requests assistance to be terminated 
for the primary purpose of avoiding receiving the $30 and one-third 
disregard for four consecutive months.
    (iv) [Reserved]
    (v) The treatment of earned income and expenses under JOBS is as 
follows:
    (A) For earned income from regular employment or on-the-job 
training, as described at Sec.250.61, the disregards in paragraphs 
(a)(11)(i) and (a)(11)(ii)(B) shall apply.
    (B) For earned income from a job under the work supplementation 
component, as described at Sec.250.62, the disregards in paragraphs 
(a)(11)(i) and (a)(11)(ii)(B) shall apply unless the State IV-A agency 
in its State JOBS plan, has elected to provide otherwise under Sec.
250.62(j) and Sec.250.62(k).
    (C) For all activities under JOBS and self-initiated education and 
training in non-JOBS areas, advance payment or reimbursement to the 
individual for child care, transportation, work-related expenses, or 
work-related supportive services is disregarded.
    (D) Payment or reimbursement of child care pursuant to part 255 for 
employed individuals who are not JOBS participants and one-time work-
related expenses for individuals who are not JOBS participants pursuant 
to part 255 are disregarded.
    (vi) At State option, disregard all or part of the monthly income of 
any dependent child applying for or receiving AFDC when the income is 
derived from a program carried out under the Job

[[Page 75]]

Training Partnership Act of 1982, except that in respect to earned 
income such disregard may not exceed six months per calendar year.
    (vii) At State option, disregard all or part of the monthly earned 
income of any dependent child applying for AFDC, if the child is a full-
time student, and that income has been disregarded for purposes of 
paragraph (a)(3)(xiii) of this section.
    (viii) Disregard as income the amount of any earned income tax 
credit payments received by an applicant or recipient. Disregard as 
resources, in the month of receipt and the following month, the amount 
of any earned income tax credit payments received by an applicant or 
recipient. ``Earned income tax credit payments'' include: Any advance 
earned income tax credit payment made to a family by an employer and any 
earned income tax credit payment made as a refund of Federal income 
taxes.
    (12) Recoupment of overpayments and correction of underpayments for 
programs other than AFDC. Specify uniform Statewide policies for:
    (i) Recoupment of overpayments of assistance, including certain 
overpayments resulting from assistance paid pending hearing decisions.
    (A) The State may not recoup any overpayment previously made to a 
recipient:
    (1) Unless the recipient has income or resources exclusive of the 
current assistance payment currently available in the amount by which 
the agency proposes to reduce payments: except that,
    (2) Where such overpayments were occassioned or caused by the 
recipient's willful withholding of information concerning his income, 
resources or other circumstances which may affect the amount of payment, 
the State may recoup prior overpayments from current assistance grants 
irrespective of current income or resources.
    (B) Withholding of information which is subject to the provisions of 
paragraph (a)(12)(i)(A)(2) of this section includes the following:
    (1) Willful misstatements (either oral or written) made by a 
recipient in response to oral or written questions from the State agency 
concerning the recipient's income, resources or other circumstances 
which may affect the amount of payment. Such misstatements may include 
understatements of amounts of income or resources and omission of an 
entire category of income or resources;
    (2) A willful failure by the recipient to report changes in income, 
resources or other circumstances which may affect the amount of payment, 
if the State agency has clearly notified the recipient of an obligation 
to report such changes. The recipient shall be given such notification 
periodically at times (not less frequently than semi-annually) and by 
methods which the State agency determines will effectively bring such 
reporting requirements to the recipient's attention:
    (3) A willfull failure by the recipient (i) to report receipt of a 
payment which the recipient knew represented an erroneous overpayment, 
or (ii) to notify the State agency of receipt of a check which exceeded 
the prior check by at least the amount which the State agency had 
previously notified the recipient (pursuant to the provisions of 
paragraph (a)(12)(i)(A)(4) of this section) might represent an 
overpayment and constitute a sum to which the recipient would not be 
entitled. In making a determination pursuant to this paragraph 
(a)(12)(i)(B)(3), all relevant circumstances including the amount by 
which the erroneous payment exceeded the previous payment shall be 
considered.
    (C) Each periodic notification under paragraph (a)(12)(i)(B)(2) of 
this section shall:
    (1) Include a reminder that it is the recipient's continuing 
obligation to furnish to the State agency accurate and timely 
information concerning changes in income, resources, or other 
circumstances which may affect the amount of payment, within a 
reasonable specified period after such change. The recipient may also be 
notified that a failure to so notify the State agency within the 
designated time period may constitute a willful withholding of such 
information and permit the State agency to recover any overpayment 
occasioned or caused by the willful withholding;

[[Page 76]]

    (2) Specifically and comprehensibly in simple phraseology indicate 
the type of information to be disclosed by the recipient. Examples shall 
be furnished of the most frequent types of newly acquired income or 
resources (e.g., inheritance, wages from a part-time job);
    (3) Require that, if there is any doubt whether a particular change 
in circumstances constitutes such reportable information, the recipient 
contact the State agency or a designated representative thereof within a 
reasonable specified period of time after such change in circumstances;
    (4) If the State plan provides for recoupment in the circumstances 
described in paragraph (a)(12)(i)(B)(3)(ii) of this section, notify the 
recipient that if the check received exceeds the prior check by a 
specified amount (which amount may not be less than that which a 
reasonable man should have known was erroneous), this increased check 
may constitute a sum to which the recipient is not entitled. In such 
instances, the notification may require that the recipient notify the 
State agency or a designated representative thereof prior to the 
negotiation of such check, so that corrective action may be taken; the 
State agency shall respond to such notification within 24 hours. The 
recipient may also be notified that a failure to so notify the State 
agency within the designated time period may constitute a willful 
withholding of such information and permit the State agency to recover 
such overpayment.
    (D) The State agency shall require periodic formal acknowledgement 
by recipients (on a form utilized for this purpose) that the reporting 
obligations of this paragraph had been brought to the recipient's 
attention and that they were understood.
    (E) Any recoupment of overpayments made under circumstances other 
than those specified in paragraph (a)(12)(i)(B) of this section shall be 
limited to overpayments made during the 12 months preceding the month in 
which the overpayment was discovered.
    (F) Any recoupment of overpayments permitted by paragraph 
(a)(12)(i)(A)(2) of this section may be made from available income and 
resources (including disregarded, set-aside or reserved items) or from 
current assistance payment or from both. If recoupments are made from 
current assistance payments, the State shall, on a case-by-case basis, 
limit the proportion of such payments that may be deducted in each case, 
so as not to cause undue hardship to recipients.
    (G) The plan may provide for recoupment in all situations specified 
herein, or only in certain of the circumstances specified herein, and 
for waiver of the overpayment where the cost of collection would exceed 
the amount of the overpayment.
    (H) Election by the State not to recoup overpayments shall not waive 
the provisions of Sec. Sec.205.40, and 205.41, or any other quality 
control requirement.
    (ii) Prompt correction of underpayments to current recipients, 
resulting from administrative error where the State plan provides for 
recoupment of overpayments. Under this requirement:
    (a) Retroactive corrective payment shall be made only for the 12 
months preceding the month in which the underpayment is discovered;
    (b) For purposes of determining continued eligibility and amount of 
assistance, such retroactive corrective payments shall not be considered 
as income or as a resource in the month paid nor in the next following 
month; and
    (c) No retroactive payment need be made where the administrative 
cost would exceed the amount of the payment.
    (13) Recovery of overpayments and correction of underpayments for 
AFDC. (i) Specify uniform Statewide policies for recovery of 
overpayments of assistance, including overpayments resulting from 
assistance paid pending hearing decisions. Overpayment means a financial 
assistance payment received by or for an assistance unit for the payment 
month which exceeds the amount for which that unit was eligible. (The 
agency may deny assistance for the corresponding payment month rather 
than recover if the assistance unit was ineligible for the budget month, 
the State becomes aware of the ineligibility when the monthly report is 
submitted, the recipient accurately reported the budget month's income 
and

[[Page 77]]

other circumstances, and the assistance unit will be eligible for the 
following payment month.)
    (A) The State must take all reasonable steps necessary to promptly 
correct any overpayment, except that, as set forth in the plan, a State 
may waive any overpayment which occurred because receipt of an earned 
income tax credit payment by a family during the period January 1, 1990, 
to December 31, 1990, caused ineligibility under the 185 percent gross 
income limitation in paragraph (a)(3)(xiii) of this section.
    (1) Any recovery of an overpayment to a current assistance unit, 
including a current assistance unit or recipient whose overpayment 
occurred during a prior period of eligibility, must be recovered through 
repayment (in part or in full) by the individual responsible for the 
overpayment or recovering the overpayment by reducing the amount of any 
aid payable to the assistance unit of which he or she is a member, or 
both.
    (2) If recovery is made from the grant, such recovery shall result 
in the assistance unit retaining, for any payment month, from the 
combined aid, income and liquid resources, (without application of 
section 402(a)(8) of the Act) not less than 90 percent of the amount 
payable under the State plan to a family of the same composition with no 
other income. Where a State chooses to recover at a rate less than the 
maximum, it must recover promptly.
    (B) The State shall recover an overpayment from (1) the assistance 
unit which was overpaid, or (2) any assistance unit of which a member of 
the overpaid assistance unit has subsequently become a member, or (3) 
any individual members of the overpaid assistance unit whether or not 
currently a recipient. If the State recovers from individuals who are no 
longer recipients, or from recipients who refuse to repay the 
overpayment from their income and resources, recovery shall be made by 
appropriate action under State law against the income or resources of 
those individuals.
    (C) If through recovery, the amount payable to the assistance unit 
is reduced to zero, members of the assistance unit are still considered 
recipients of AFDC.
    (D) In cases which have both an underpayment and an overpayment, the 
State may offset one against the other in correcting the payment.
    (E) Prompt recovery of an overpayment: A State must take one of the 
following three actions by the end of the quarter following the quarter 
in which the overpayment is first identified:
    (1) Recover the overpayment, (2) initiate action to locate and/or 
recover the overpayment from a former recipient, or (3) execute a 
monthly recovery agreement from a current recipient's grant or income/
resources.
    (ii) Specify uniform Statewide policies for prompt correction of any 
underpayments to current recipients and those who would be a current 
recipient if the error causing the underpayment had not occurred. 
Underpayment means a financial assistance payment received by or for an 
assistance unit for the payment month which is less than the amount for 
which the assistance unit was eligible, or failure by the State to issue 
a financial assistance payment for the payment month to an eligible 
assistance unit if such payment should have been issued. Under this 
requirement, for purposes of determining continued eligibility and 
amount of assistance, such retroactive corrective payments shall not be 
considered as income, or as a resource in the month paid nor in the next 
following month.
    (iii) Paragraph (a)(13) of this section is effective for incorrect 
payments which are identified subsequent to September 30, 1981.
    (iv) In locating former recipients who have outstanding overpayments 
the State should use appropriate data sources such as State unemployment 
insurance files, State Department of Revenue information from tax 
returns, State automobile registration, Bendex, and other files relating 
to current or former recipients.
    (v) The State must maintain information on the individual and total 
number and amount of overpayments identified and their disposition for 
current and former recipients.
    (vi) The State may elect not to attempt recovery of an overpayment

[[Page 78]]

from an individual no longer receiving aid where the overpayment amount 
is less than $35. Where the overpayment amount owed by an individual no 
longer receiving aid is $35 or more, the State can determine when it is 
no longer cost-effective to continue overpayment recovery efforts, 
provided it has made reasonable efforts to recover the overpayment from 
the individual. Reasonable efforts must include notification of the 
amount of and reason for the overpayment and that repayment is required. 
States must also maintain information regarding uncollected overpayments 
as provided under paragraph (a)(13)(v) of this section, to enable the 
State to recover those overpayments if the individual subsequently 
becomes a recipient. In cases involving fraud, States must make every 
effort to recover the overpayment, regardless of the amount.
    (14) For Medicaid eligibility only, beginning October 1, 1998, 
pursuant to section 402(a)(37) of the Act, an assistance unit will be 
deemed to be receiving AFDC, but only for the purposes of this 
paragraph, for a period of nine months after the last month the family 
actually received aid if the loss of AFDC eligibility was solely because 
a member of the unit was no longer eligible due to the 4 and 12 month 
time limitations to have the $30 and one-third or the $30 disregard in 
paragraph (a)(11)(ii)(B) applied to his or her earned income. At State 
option, an additional period of Medicaid coverage for up to six months 
may be provided when the assistance unit would be eligible during such 
additional period to receive AFDC if the $30 and one-third or the $30 
disregards were applied to the assistance unit's earned income.
    (15) For Medicaid eligibility only, pursuant to section 406(h) of 
the Act:
    (i) Each dependent child and each relative with whom such a child is 
living (including the eligible spouse of such relative pursuant to 
section 237.50(b) of this chapter) who becomes ineligible for AFDC 
wholly or partly because of the initiation of or an increase in the 
amount of a child or spousal support collection under title IV-D will be 
deemed to be receiving AFDC, but only for purposes of this paragraph 
(a)(15), for a period of four consecutive calendar months beginning with 
the first month of AFDC ineligibility. To be eligible for extended 
Medicaid coverage pursuant to this paragraph (a)(15), each dependent 
child and relative must meet the following conditions:
    (A) The individual must have become ineligible for AFDC on or after 
August 16, 1984; and
    (B) The individual must have received AFDC in at least three of the 
six months immediately preceding the month in which the individual 
becomes ineligible for AFDC; and
    (C) The individual must have become ineligible for AFDC wholly or 
partly as a result of the initiation of or an increase in the amount of 
a child or spousal support collection under title IV-D.
    (ii)(A) Except as provided in paragraph (a)(15)(ii)(B) of this 
section, individuals who are eligible for extended Medicaid lose this 
coverage if they move to another State during the 4-month period. 
However, if they move back to and reestablish residence in the State in 
which they have extended coverage, they are eligible for any of the 
months remaining in the 4-month period in which they are residents of 
the State.
    (B) If a State has chosen in its State plan to provide Medicaid to 
non-residents, the State may continue to provide the 4-month extended 
benefits to individuals who have moved to another State.
    (iii) For purposes of paragraph (i) of this section:
    (A) The new collection or increased collection of child or spousal 
support results in the termination of AFDC eligibility when it actively 
causes or contributes to the termination. This occurs when:
    (1) The change in support collection in and of itself is sufficient 
to cause ineligibility. This rule applies even if the support collection 
must be added to other, stable income. It also applies even if other 
independent factors, alone or in combination with each other, might 
simultaneously cause ineligibility; or
    (2) The change in support contributes to ineligibility but does not 
by itself cause ineligibility. Ineligibility must result when the change 
in support is

[[Page 79]]

combined with other changes in income or changes in other circumstances 
and the other changes in income or circumstances cannot alone or in 
combination result in termination without the change in support.
    (B) In cases of increases in the amounts of both the support 
collections and earned income, eligibility under this section does not 
preclude eligibility under paragraph (a)(14) of this section or section 
1925 of the Social Security Act (which was added by section 303(a) of 
the Family Support Act of 1988 (42 U.S.C. 139r-6)). Extended periods 
result from both an increase in the amount of the support collection and 
from an increase in earned income must run concurrently.
    (b) Federal financial participation; General. (1) Federal 
participation will be available in financial assistance payments made on 
the basis that (after application of policies governing the allowable 
reserve, disregard or setting aside of income and resources), all income 
of the needy individual, together with the assistance payment, do not 
exceed the State's defined standard of assistance, and available 
resources of the needy individuals do not exceed the limits under the 
State plan.
    (2) Federal participation is available within the maximums specified 
in the Federal law, when the payments do not exceed the amount 
determined to be needed under the statewide standard, and are made in 
accordance with the State method for determining the amount of the 
payments, as specified in Sec.233.31 for AFDC and in Sec. Sec.233.24 
and 233.25 for OAA, AB, APTD, and AABD.
    (3) Federal participation is available in financial assistance 
payments made on the basis of the need of the individual. This basis may 
include consideration of needy persons living in the same home with the 
recipient when such other persons are within the State's policy as 
essential to his well-being. Persons living in the home who are 
``essential to the well-being of the recipient,'' as specified in the 
State plan, will govern as the basis for Federal participation (see 
Guides and Recommendations). When the State includes persons living 
outside the home or persons not in need, Federal participation is not 
available for that portion of financial assistance payments attributable 
to such persons, and the State's claims must, therefore, identify the 
amounts of any such nonmatchable payments.
    (4) For all assistance programs except AFDC, Federal participation 
is available for supplemental payments in the retrospective budgeting 
system.
    (c) Federal financial participation in vendor payments for home 
repairs. With respect to expenditures made after December 31, 1967, 
expenditures to a maximum of $500 are subject to Federal financial 
participation at 50 percent for repairing the home owned by an 
individual who is receiving aid or assistance (other than Medical 
Assistance for the Aged) under a State plan for OAA, AFDC, AB, APTD, or 
AABD if:
    (1) Prior to making the expenditures the agency determined that: (i) 
The home is so defective that continued occupancy is unwarranted; (ii) 
unless repairs are made the recipient would need to move to rental 
quarters; and (iii) the rental cost of quarters for the recipient 
(including the spouse living with him in such home and any other 
individual whose needs were considered in determining the recipient's 
need) would exceed (over a period of 2 years) the repair costs needed to 
make such home habitable together with other costs attributable to 
continued occupancy of such home.
    (2) No expenditures for repair of such home were made previously 
pursuant to a determination as described in paragraph (c)(1) of this 
section. This does not preclude more than one payment made at the time 
repairs are made pursuant to the determination, e.g., separate payments 
to the roofer, the electrician, and the plumber.
    (3) Expenditures for home repairs are authorized in writing by a 
responsible agency person, records show the eligible person in whose 
behalf the home repair expenditure was made, and there is sufficient 
evidence that the home repair was performed.

[34 FR 1394, Jan. 29, 1969]

    Editorial Note: For Federal Register citations affecting Sec.
233.20, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.

[[Page 80]]


    Effective Date Note: At 47 FR 5678, Feb. 5, 1982, Sec.
233.20(a)(13)(v) was added. This paragraph contains information 
collection and recordkeeping requirements and will not become effective 
until approval has been given by the Office of Management and Budget.



Sec.233.21  Budgeting methods for OAA, AB, APTD, and AABD.

    (a) Requirements for State plans. A State plan for OAA, AB, APTD, 
and AABD shall specify if assistance payments shall be computed using a 
prospective budgeting system or a retrospective budgeting system. A 
State electing retrospective budgeting shall specify which options it 
selects and the State plan shall state that it shall meet the 
requirements in Sec. Sec.233.21 through 233.29. Budgeting methods for 
AFDC are described in Sec. Sec.233.31 through 233.37.
    (b) Definitions. The following definitions apply to Sec. Sec.
233.21 through 233.29:
    (1) Prospective budgeting means that the agency shall compute the 
amount of assistance for a payment month based on its best estimate of 
income and circumstances which will exist in that month. This estimate 
shall be based on the agency's reasonable expectation and knowledge of 
current, past or future circumstances.
    (2) Retrospective budgeting means that the agency shall compute the 
amount of assistance for a payment month based on actual income or 
circumstances which existed in a previous month, the ``budget month''.
    (3) Budget month means the fiscal or calendar month from which the 
agency shall use income or circumstances of the family to compute the 
amount of assistance.
    (4) Payment month means the fiscal or calendar month for which an 
agency shall pay assistance. Payment is based upon income or 
circumstances in the budget month. In prospective budgeting, the budget 
month and the payment month are the same. In retrospective budgeting, 
the payment month follows the budget month and the payment month shall 
begin within 32 days after the end of the budget month.
    (5) Make an assistance payment. In the context of retrospective 
budgeting, to make an assistance payment means that the check shall be 
deposited in the U.S. mail, hand delivered to the recipient, or 
deposited with an intermediary organization, such as a bank.
    (6) Supplemental payment. In the context of retrospective budgeting, 
a supplemental payment is a payment which maintains a family during the 
time it takes for the monthly assistance payment to reflect a change in 
circumstances or income.

[44 FR 26082, May 4, 1979, as amended at 47 FR 5678, Feb. 5, 1982]



Sec.233.22  Determining eligibility under prospective budgeting.

    In States which compute the amount of the assistance payment 
prospectively, the State plan shall provide that the State shall also 
determine all factors of eligibility prospectively. Thus, the State 
agency shall establish eligibility based on its best estimate of income 
and circumstances which will exist in the month for which the assistance 
payment is made.

[44 FR 26082, May 4, 1979]



Sec.233.23  When assistance shall be paid under retrospective
budgeting.

    (a) A State which uses retrospective budgeting shall specify in its 
plan that it will make assistance payments within the following time 
limits to recipients who file a completed report on time, and to those 
who are not required to file a report. A State shall choose one of two 
time periods for making assistance payments. The State plan shall 
provide that payment must be made:
    (1) Within 25 days from the close of the budget month; or
    (2) Between 25 and 45 days from the close of the budget month.
    (b)(1) Where a State makes payments between 25 and 45 days from the 
close of the budget month, the State plan shall provide that the State 
will make supplemental payments as provided in Sec.233.27.
    (2) If a State makes payments within 25 days from the close of the 
budget month, and also makes supplemental payments as provided in Sec.
233.27, the State plan shall so specify.

[[Page 81]]

    (c) In States which issue two checks for each payment month, these 
time periods apply to the first check.

[44 FR 26083, May 4, 1979]



Sec.233.24  Retrospective budgeting; determining eligibility and
computing the assistance payment in the initial one or two months.

    (a) States which make assistance payments within 25 days of the 
close of the budget month shall determine eligibility and compute the 
amount of the payment for all recipients prospectively for the initial 
month of assistance. These States may choose to determine eligibility 
and compute the payment prospectively for the second month, also.
    (b) States which make assistance payments between 25 and 45 days 
from the close of the budget month shall determine eligibility and 
compute the amount of the payment prospectively for the initial two 
months of assistance.
    (c) When a person who previously received assistance reapplies 
during the same month in which a termination became effective, 
eligibility shall be determined according to paragraph (a) or (b) of 
this section. However, the amount of the assistance payment for the 
month of the reapplication shall be computed retrospectively.

[44 FR 26083, May 4, 1979]



Sec.233.25  Retrospective budgeting; computing the assistance payment
after the initial one or two months.

    The State plan shall provide:
    (a) After the initial one or two payment months of assistance under 
Sec.233.24, the amount of each subsequent month's payment shall be 
computed retrospectively, i.e., shall be based on earned and unearned 
income received in the corresponding budget month.
    (b) In these subsequent months, other factors of need which affect 
the amount of the assistance payment may also be based on circumstances 
in the corresponding budget month, or they may be based on circumstances 
in the payment month.
    (c) For the first month in which retrospective budgeting is used, a 
State shall not consider income received by the recipient before the 
date of application. When a person reapplies during the same month in 
which a termination became effective, the State may consider income 
received before the date of application.

[44 FR 26083, May 4, 1979]



Sec.233.26  Retrospective budgeting; determining eligibility after 
the initial one or two months.

    (a) Under retrospective budgeting, there are three options for 
determining eligibility. The State plan shall specify that eligibility, 
following the initial one or two months under Sec.233.24, shall be 
determined by one of the following methods:
    (1) A State may consider all factors, including income 
retrospectively, i.e., only from the budget month. For example, if a 
change in circumstances occurs which affects eligibility, e.g., 
deprivation ceases, the change may be reported at the end of the budget 
month and assistance shall be terminated for the corresponding payment 
month. Thus, even if the agency could have terminated assistance earlier 
than the corresponding payment month, it shall not do so under 
retrospective determination of eligibility.
    (2) A State may consider all factors, including income, 
prospectively. For example, if deprivation ceases, and the family 
becomes ineligible, the agency shall immediately take steps to terminate 
assistance.
    (3) A State may use a combination of the options in paragraphs (a) 
and (b) of this section by considering factors related to earned and 
unearned income retrospectively and all other factors prospectively. For 
example, if a change in income makes the family ineligible, the agency 
shall wait until the corresponding payment month to terminate 
assistance. On the other hand, if a change of circumstances other than 
income makes the family ineligible, the agency shall immediately take 
steps to terminate assistance.

[44 FR 26083, May 4, 1979; 44 FR 29065, May 18, 1979, as amended at 47 
FR 47828, Oct. 28, 1982]



Sec.233.27  Supplemental payments under retrospective budgeting.

    (a) General requirements. A State plan which provides for payments 
between

[[Page 82]]

25 and 45 days from the close of a budget month, shall provide for 
supplemental payments to eligible recipients who request them. A State 
plan which provides for payments within 25 days may provide for 
supplemental payments:
    (1) The supplemental payment shall be paid for the month in which it 
was requested.
    (2) The recipient family is eligible for a supplemental payment if 
its income for the month is less than 80 percent of the amount the State 
would pay for a similar family with no income. However, this percentage 
of the amount the State would pay for a similar family with no income 
may be set between 80 and 100 percent, as specified in the State plan. 
The supplemental payment equals the difference between the family's 
income in the payment month and that percentage.
    (3) Supplemental payments shall be issued within 5 working days of 
request.
    (b) How income is treated. For purposes of supplemental payments, 
income includes that month's assistance payment and any income received 
or expected to be received by the recipient, but does not include work-
related expenses.
    (1) The amount used for the assistance payment shall be the monthly 
assistance payment without regard to any recoupments made for prior 
overpayments or adjustments for prior underpayments.
    (2) The agency may include as income cash in hand or available in 
bank accounts. It may also include as income any cash disregarded in 
determining need or the amount of the assistance payment, but not cash 
payments that are disregarded by Sec.233.20(a)(4)(ii), paragraphs (c) 
on relocation assistance, (d) on educational grants or loans and (g) on 
payments for certain services.

[44 FR 26083, May 4, 1979, as amended at 51 FR 9205, Mar. 18, 1986]



Sec.233.28  Monthly reporting.

    (a) State plans specifying retrospective budgeting shall require 
that recipients with earned income, other than income from self-
employment, report that income to the agency monthly. The State may 
require recipients with unearned income, no income, or income from self-
employment to report monthly. The agency shall provide a form for this 
purpose, which:
    (1) Is written in clear simple language;
    (2) Specifies the date by which the agency must receive the form and 
the consequences of a late or incomplete form, including whether the 
agency will delay or withhold payment if the form is not returned by the 
specified date;
    (3) Identifies an individual or agency unit the recipient should 
contact to receive prompt answers to questions about information 
requested on the form, and provides a telephone number for this purpose;
    (4) Includes a statement, to be signed by the recipient, that he or 
she understands that the information he or she provides may result in 
changes in assistance, including reduction or termination;
    (5) Advises the recipient if supplemental payments are available and 
the proper procedures for initiating a request; and
    (6) Advises the recipient of his or her right to a fair hearing on 
any decrease or termination of assistance or denial of a supplemental 
payment.
    (b) The agency shall specify the date by which it must receive the 
monthly report. This date shall be at least 5 days from the end of the 
budget month and shall also allow the recipient at least 5 days to 
complete the report.
    (c) The agency may consider a monthly report incomplete only if it 
is unsigned or omits information necessary to determine eligibility or 
compute the payment amount.
    (d) The agency shall provide a stamped, self-addressed envelope for 
returning the monthly report.
    (e) The agency shall make special provisions for persons who are 
illiterate or have other handicaps so that they cannot complete a 
monthly report form.

[44 FR 26083, May 4, 1979]

[[Page 83]]



Sec.233.29  How monthly reports are treated and what notices are 
required.

    (a) What happens if a completed monthly report is received on time. 
When the agency receives a completed monthly report by the date 
specified in Sec.233.28 it shall process the payment. The agency shall 
notify the recipient of any changes from the prior payment and the basis 
for its determinations. This notice must meet the requirements of Sec.
205.10(a)(4)(i)(B) of this chapter on adequate notice if the payment is 
being reduced or assistance is being terminated. This notice must be 
received by the recipient no later than his or her resulting payment or 
in lieu of the payment.
    (b) What happens if the completed monthly report is received before 
the extension deadline. (1) If the completed monthly report is not 
received by the date specified in Sec.233.28, the agency shall send a 
notice to the recipient. This notice shall inform him or her that the 
monthly report is overdue or is not complete and that he or she has at 
least 10 additional days to file. It must inform the recipient that 
termination may result if that is the agency's policy, if the report is 
not filed within the extension period. This notice must reach the 
recipient at least 10 days before the expected payment. However, in 
States in which the date specified in Sec.233.28 is within 10 days of 
the expected payment date, the notice must reach the recipient on or 
before the expected payment date.
    (2) When the report is received within the extension period, the 
agency may delay payment to the recipient, as follows:
    (i) In a State that pays within 25 days of the budget month the 
payment may be delayed 10 days;
    (ii) In a State that pays within 25 to 45 days of the budget month, 
the payment may not be delayed beyond the 45th day.
    (c) What happens if a monthly report is not received by the end of 
the extension period. An agency may terminate assistance if it has not 
received a report or has received an incomplete report, and the 10 day 
extension period has expired. If the State decides to terminate 
assistance, it must send the recipient a notice which meets the 
requirements of Sec.205.10(a)(4)(i)(B) on adequate notice.
    (d) How a recipient may delay an adverse action based on a monthly 
report. If a recipient's assistance is reduced or terminated based on 
information in the monthly report, and he or she requests a fair hearing 
within 10 days, the assistance payment shall be reinstated immediately 
at the previous month's level pending the hearing decision. The payment 
shall be made effective from the date assistance was reduced or 
terminated.

[44 FR 26084, May 4, 1979]



Sec.233.31  Budgeting methods for AFDC.

    (a) Requirements for State plans. A State plan for AFDC shall 
specify that all factors of eligibility shall be determined 
prospectively and the amount of the assistance for any month for all 
assistance units required to file a monthly report for the month 
designated as the budget month under the State's retrospective budgeting 
procedures shall be determined using retrospective budgeting as provided 
in Sec. Sec.233.31-233.37 except as provided in Sec.233.34. The 
State plan shall specify whether the State uses prospective or 
retrospective budgeting to determine the amount of the assistance 
payments for recipients not required to report monthly. Budgeting 
methods for OAA, AB, APTD, and AABD are described in Sec. Sec.233.21-
233.29.
    (b) Definitions. The following definitions apply to Sec. Sec.
233.31 through 233.37:
    (1) Prospective budgeting means that the agency shall determine 
eligibility (and compute the amount of assistance for the first one or 
two months) based on its best estimate of income and circumstances which 
will exist in that month. This estimate shall be based on the agency's 
reasonable expectation and knowledge of current, past or future 
circumstances.
    (2) Retrospective budgeting means that the agency shall compute the 
amount of assistance for a payment month based on actual income or 
circumstances which existed in a previous month, the ``budget month.''
    (3) Budget month means the fiscal or calendar month from which the 
agency shall use income or circumstances of the family to compute the 
amount of assistance.

[[Page 84]]

    (4) Payment month means the fiscal or calendar month for which an 
agency shall pay assistance. Payment is based upon income or 
circumstances in the budget month. In prospective budgeting, the budget 
month and the payment month are the same. In retrospective budgeting, 
the payment month follows the budget month.
    (5) Recent work history means the individual received earned income 
in any one of the two months prior to the budget month.

[47 FR 5678, Feb. 5, 1982, as amended at 49 FR 35602, Sept. 10, 1984; 57 
FR 30160, July 8, 1992]



Sec.233.32  Payment and budget months (AFDC).

    A State shall specify in its plan for AFDC the time period covered 
by the payment (payment month) and the time period used to determine 
that payment (budget month) and whether it adopts (a) a one-month or 
two-month retrospective system; and (b) a one-month or two-month 
prospective system for the initial payment months. If a State elects to 
have a two-month retrospective system it must also elect a two-month 
prospective system.

[47 FR 5678, Feb. 5, 1982]



Sec.233.33  Determining eligibility prospectively for all payment
months (AFDC).

    (a) The State plan for AFDC shall provide that the State shall 
determine all factors of eligibility prospectively for all payment 
months. Thus, the State agency shall establish eligibility based on its 
best estimate of income and circumstances which will exist in the month 
for which the assistance payment is made.
    (b) When a IV-A agency receives an official report of a child 
support collection it shall consider that information as provided in 
Sec.232.20(a) of this chapter. (Sec.232.20(a) explains the treatment 
of child support collections.)

[47 FR 5678, Feb. 5, 1982]



Sec.233.34  Computing the assistance payment in the initial one or
two months (AFDC).

    A State shall compute the amount of the AFDC payment for the initial 
month of eligibility:
    (a) Prospectively (except as in paragraphs (b) and (c) of this 
section); or
    (b) Retrospectively if the applicant received assistance (or would 
have except for the prohibition on payments of less than $10) for the 
immediately preceding payment month (except where the State pays the 
second month after application prospectively); or
    (c) Retrospectively if:
    (1) Assistance had been suspended as defined in paragraph (d) of 
this section; and
    (2) The initial month follows the month of suspension; and
    (3) The family's circumstances for the initial month had not changed 
significantly from those reported in the corresponding budget month, 
e.g., loss of job.
    (d) A State may suspend, rather than terminate, assistance when:
    (1) The agency has knowledge of, or reason to believe that 
ineligibility would be only for one payment month; and
    (2) Ineligibility for that one payment month was caused by income or 
other circumstances in the corresponding budget month.
    (e) If the initial month is computed prospectively as in paragraph 
(a) of this section, the second month shall be prospective if the State 
elects a 2-month retrospective budgeting system.

[47 FR 5679, Feb. 5, 1982]



Sec.233.35  Computing the assistance payment under retrospective
budgeting after the initial one or two months (AFDC).

    The State plan for AFDC shall provide:
    (a) After the initial one or two payment months of assistance under 
Sec.233.34, the amount of each subsequent month's payment shall be 
computed retrospectively, i.e., shall be based on income and other 
relevant circumstances in the corresponding budget month except as 
provided in Sec.233.20(a)(3)(iii). In any month for which an 
individual will be determined eligible prospectively and will be added 
to an existing AFDC assistance unit, the State must meet the 
individual's needs to the same extent it would if the individual were an 
applicant for AFDC.

[[Page 85]]

    (b) Except as provided in Sec.233.34(b), for the first and second 
payment month for which retrospective budgeting is used, the State shall 
not count income from the budget month already considered for any 
payment month determined prospectively which is not of a continuous 
nature.

[47 FR 5679, Feb. 5, 1982]



Sec.233.36  Monthly reporting (AFDC).

    (a) Except as provided in paragraph (b) of this section, a State 
plan for AFDC shall require the caretaker relative, or another person 
designated by the State, to submit, on behalf of each assistance unit 
whose members have earned income or recent work history, each assistance 
unit which has income deemed to it from individuals living with the unit 
who have earned income or a recent work history and, at State option, 
other assistance units, a completed report form to the agency monthly 
on:
    (1) Budget month income, family composition, and other circumstances 
relevant to the amount of the assistance payment; and
    (2) Any changes in income, resources, or other relevant 
circumstances affecting continued eligibility which the assistance unit 
expects to occur in the current month or in future months.
    (3) The income of a parent or a legal guardian of a minor parent, a 
stepparent, or an alien sponsor, as well as the resources of an alien 
sponsor, where appropriate.
    (b) A State may exempt categories of recipients otherwise required 
to report monthly from reporting each month with prior approval by the 
Secretary if the State can demonstrate that not requiring these cases to 
file monthly reports is cost effective. The Secretary will grant waivers 
under this provision for a period up to one year, at the end of which 
time the State may request an extension of the waiver. A decision by the 
Secretary not to approve a request for an exemption is not appealable. 
The plan shall include criteria for assuring (1) that exempted cases are 
unlikely to incur changes in circumstances from month to month which 
would impact their eligibility r amount of assistance and (2) that the 
administrative cost of requiring those categories to report monthly will 
be greater than the program savings which would accrue.
    (c) States shall also direct recipients to report information as 
defined in paragraph (a)(2) of this section to the agency as they become 
aware of expected changes rather than waiting to inform the State on the 
monthly report.

[47 FR 5679, Feb. 5, 1982, as amended at 49 FR 35602, Sept. 10, 1984; 57 
FR 30160, July 8, 1992]



Sec.233.37  How monthly reports are treated and what notices are 
required (AFDC).

    (a) What happens if a completed monthly report is received on time. 
When the agency receives a completed monthly report as specified in 
Sec.233.36, and if all eligibility conditions are met, it shall 
process the payment. The agency shall notify the recipient of any 
changes from the prior payment and the basis for its determinations. 
This notice must meet the requirements of Sec.205.10(a)(4)(i)(B) of 
this chapter on adequate notice if the payment is being reduced or 
assistance is terminated as a result of information provided in the 
monthly report. The notice must be mailed to arrive no later than the 
resulting payment or in lieu of the payment. A recipient has 10 days 
from the date of the notice to request a hearing in order to receive 
reinstatement.
    (b) What happens if a completed monthly report is not received by 
the agency. An agency may terminate assistance if it has received no 
report or has received only an incomplete report as defined by the 
State. In this case, the agency must send the recipient a notice meeting 
the requirements of Sec.205.10(a)(4)(i)(B) to arrive not later than 
the date it would have made payment if the agency had received a 
completed monthly report on time. If the recipient notifies the agency 
and files a completed report within 10 days of the date of this notice, 
the agency must accept the replacement form and make a payment based on 
the information on the form if the information indicates that the person 
is still eligible (without the applicable earned income disregards if 
the State agency determines no good cause exists for failing to file

[[Page 86]]

a timely report of earnings). If the recipient is found ineligible or 
eligible for an amount less than the prior month's payment, the State 
must promptly notify the recipient of his or her right to a fair hearing 
and his or her right to have assistance reinstated. A recipient has 10 
days from the date of the notice to request a hearing in order to 
receive reinstatement.
    (c) What happens if a completed monthly report is received but is 
not timely. States must specify in their plans a definition of 
timeliness related to the filing of a monthly report and the number of 
days an individual has to report changes in earnings which impact 
eligibility. States must inform recipients what constitutes timeliness 
and that no disregard of earnings as described in Sec.233.20(a)(11) 
(i) and (ii)(B) ($30 and one-third, child care, and work expenses) will 
be applied to any earnings which are not reported in a timely manner 
without good cause. The State must provide recipients an opportunity to 
show good cause for not filing a timely report of earnings. If the State 
finds good cause, then applicable earned income disregards will be 
applied in determining payment. If the State does not find good cause, 
then applicable earned income disregards will not be applied. If the 
recipient is found ineligible or eligible for an amount less than the 
prior month's payment, the State must promptly notify the recipient of 
his or her right to a fair hearing and his or her right to have 
assistance reinstated. A recipient has 10 days from the date of the 
notice to request a hearing in order to receive reinstatement.

[47 FR 5679, Feb. 5, 1982]



Sec.233.38  Waiver of monthly reporting and retrospective budgeting
requirements; AFDC.

    (a) States may request waivers of the requirements at Sec. Sec.
233.31-233.37 to promote compatibility with monthly reporting and 
budgeting requirements of the Food Stamp Act of 1977 as amended.
    (b) The Secretary will not approve requests for waivers unless the 
information documenting the need for the waiver shows that the waiver 
would simplify administration of both programs and would not result in a 
net cost to the Federal government. Approvals for waivers will be for 
periods up to one year, after which time the State may request an 
extension of the waiver.
    (c) Any decision by the Secretary not to approve a request for a 
waiver is not appealable.

[49 FR 35602, Sept. 10, 1984]



Sec.233.39  Age.

    (a) Condition for plan approval. A State plan under title I or XVI 
of the Social Security Act may not impose any age requirement of more 
than 65 years.
    (b) Federal financial participation. (1) Federal financial 
participation is available in financial assistance provided to otherwise 
eligible persons who were, for any portion of the month for which 
assistance is paid:
    (i) In OAA or AABD with respect to the aged, 65 years of age or 
over;
    (ii) In AFDC, under 18 years of age; or age 18 if a full-time 
student in a secondary school, or in the equivalent level of vocational 
or technical training, and reasonably expected to complete the program 
before reaching age 19.
    (iii) In AB or AABD with respect to the blind, any age;
    (iv) In APTD or AABD with respect to the disabled, 18 years of age 
or older.
    (2) Federal determination of whether an individual meets the age 
requirements of the Social Security Act will be made according to the 
common-law method (under which a specific age is attained the day before 
the anniversary of birth), unless the State plan specifies that the 
popular usage method (under which an age is attained on the anniversary 
of birth), is used.
    (3) The State agency may adopt an arbitrary date such as July 1 as 
the point from which age will be computed in all instances where the 
month of an individual's birth is not available, but the year can be 
established.

[36 FR 3866, Feb. 27, 1971. Redesignated and amended at 47 FR 5678, Feb. 
5, 1982]



Sec.233.40  Residence.

    (a) Condition for plan approval. A State plan under title I, IV-A, 
X, XIV,

[[Page 87]]

or XVI of the Social Security Act may not impose any residence 
requirement which excludes any individual who is a resident of the State 
except as provided in paragraph (b) of this section. For purposes of 
this section:
    (1) A resident of a State is one: (i) Who is living in the State 
voluntarily with the intention of making his or her home there and not 
for a temporary purpose. A child is a resident of the State in which he 
or she is living other than on a temporary basis. Residence may not 
depend upon the reason for which the individual entered the State, 
except insofar as it may bear upon whether the individual is there 
voluntarily or for a temporary purpose; or
    (ii) Who, is living in the State, is not receiving assistance from 
another State, and entered the State with a job commitment or seeking 
employment in the State (whether or not currently employed). Under this 
definition, the child is a resident of the State in which the caretaker 
is a resident.
    (2) Residence is retained until abandoned. Temporary absence from 
the State, with subsequent returns to the State, or intent to return 
when the purposes of the absence have been accomplished, does not 
interrupt continuity of residence.
    (b) Exception. A State plan under title I, X, XIV, or XVI need not 
include an individual who has been absent from the State for a period in 
excess of 90 consecutive days (regardless of whether the individual has 
maintained his or her residence in the State during this period) until 
he or she has been present in the State for a period of 30 consecutive 
days (or a shorter period specified by the State) in the case of such 
individual who has maintained residence in the State during such period 
of absence or for a period of 90 consecutive days (or a shorter period 
as specified by the State) in the case of any other such individual. An 
individual thus excluded under any such plan may not, as a consequence 
of that exclusion, be excluded from assistance under the State's title 
XIX plan if otherwise eligible under the title XIX plan (see 42 CFR 
436.403).

[45 FR 26962, Apr. 22, 1980]



Sec.233.50  Citizenship and alienage.

    A State plan under title I (OAA); title IV-A (AFDC); title X (AB); 
title XIV (APTD); and title XVI (AABD-disabled) of the Social Security 
Act shall provide that an otherwise eligible individual, dependent 
child, or a caretaker relative or any other person whose needs are 
considered in determining the need of the child or relative claiming 
aid, must be either:
    (a) A citizen, or
    (b) An alien lawfully admitted for permanent residence or otherwise 
permanently residing in the United States under color of law, including 
certain aliens lawfully present in the United States as a result of the 
application of the following provisions of the Immigration and 
Nationality Act:
    (1) Section 207(c), in effect after March 31, 1980--Aliens Admitted 
as Refugees.
    (2) Section 203(a)(7), in effect prior to April 1, 1980--Individuals 
who were Granted Status as Conditional Entrant Refugees.
    (3) Section 208--Aliens Granted Political Asylum by the Attorney 
General.
    (4) Section 212(d)(5)--Aliens Granted Temporary Parole Status by the 
Attorney General, or
    (c) An alien granted lawful temporary resident status pursuant to 
section 201, 302, or 303 of the Immigration Reform and Control Act of 
1986 (Pub. L. 99-603) who must be either:
    (1) A Cuban and Haitian entrant as defined in paragraph (1) or 
(2)(A) of section 501(e) of Pub. L. 96-422, as in effect on April 1, 
1983, or
    (2) An adult assistance applicant for OAA, AB, APTD, or AABD, or
    (3) An applicant for AFDC who is not a Cuban and Haitian applicant 
under paragraph (c)(1) of this section who was adjusted to lawful 
temporary resident status more than five years prior to application.

All other aliens granted lawful temporary or permanent resident status, 
pursuant to sections 201, 302, or 303 of the Immigration Reform and 
Control Act of 1986, are disqualified for five

[[Page 88]]

years from the date lawful temporary resident status is granted.

[47 FR 5680, Feb. 5, 1982; 47 FR 43383, Oct. 1, 1982, as amended at 52 
FR 48689, Dec. 24, 1987; 53 FR 30433, Aug. 12, 1988; 54 FR 10544, Mar. 
14, 1989]



Sec.233.51  Eligibility of sponsored aliens.

    Definition: Sponsor is any person who, or any public or private 
agency or organization that, executed an affidavit(s) of support or 
similar agreement on behalf of an alien (who is not the child of the 
sponsor or the sponsor's spouse) as a condition of the alien's entry 
into the United States. Paragraphs (a) through (d) of this section apply 
only to aliens who are sponsored by individuals and who filed 
applications for the first time after September 30, 1981. Paragraphs (e) 
and (f) apply only to aliens sponsored by public or private agencies or 
organizations with respect to periods after October 1, 1984. A State 
plan under title IV-A of the Act shall provide that:
    (a) For a period of three years following entry for permanent 
residence into the United States, a sponsored alien who is not exempt 
under paragraph (g) of this section, shall provide the State agency with 
any information and documentation necessary to determine the income and 
resources of the sponsor and the sponsor's spouse (if applicable and if 
living with the sponsor) that can be deemed available to the alien, and 
obtain any cooperation necessary from the sponsor.
    (b) The income and resources of a sponsor and the sponsor's spouse 
shall be deemed to be the unearned income and resources of an alien for 
three years following the alien's entry into the United States:
    (1) Monthly income deemed available to the alien from the sponsor 
and the sponsor's spouse not receiving AFDC or SSI shall be:
    (i) The total monthly unearned and earned income of the sponsor and 
sponsor's spouse reduced by 20 percent (not to exceed $175) of the total 
of any amounts received by them in the month as wages or salary or as 
net earnings from self-employment.
    (ii) The amount described in paragraph (b)(1)(i) of this section 
reduced by:
    (A) The cash needs standard under the plan in the alien's State of 
residence for a family of the same size and composition as the sponsor 
and those other people living in the same household as the sponsor who 
are or could be claimed by the sponsor as dependents to determine his or 
her Federal personal income tax liability but whose needs are not taken 
into account in making a determination under Sec.233.20 of this 
chapter;
    (B) Any amounts actually paid by the sponsor or sponsor's spouse to 
people not living in the household who are or could be claimed by them 
as dependents to determine their Federal personal income tax liability; 
and
    (C) Actual payments of alimony or child support, with respect to 
individuals not living in the household.
    (2) Monthly resources deemed available to the alien from the sponsor 
and sponsor's spouse shall be the total amount of their resources 
determined as if they were applying for AFDC in the alien's State of 
residence, less $1500.
    (c) In any case where a person is the sponsor of two or more aliens, 
the income and resources of the sponsor and sponsor's spouse, to the 
extent they would be deemed the income and resources of any one of the 
aliens under the provisions of this section, shall be divided equally 
among the sponsored aliens.
    (d) Income and resources which are deemed to a sponsored alien shall 
not be considered in determining the need of other unsponsored members 
of the alien's family except to the extent the income or resources are 
actually available.
    (e) For a period of three years following entry for permanent 
residence into the United States, any alien who is not exempt under 
paragraph (g) of this section and has been sponsored by a public or 
private agency or organization, shall be ineligible for assistance 
unless the State agency determines (in accordance with paragraph (f)) 
that the sponsor no longer exists or has become unable to meet the 
alien's needs.
    (f) The State plan shall set forth the criteria the State agency 
will use in determining whether an agency or organization no longer 
exists or is unable

[[Page 89]]

to meet the alien's needs and the documentation the agency will require 
of the alien in making such determination. The sponsored alien shall 
provide the State agency with any information and documentation 
necessary for such determination and obtain any cooperation necessary 
from the sponsor.
    (g) The provisions of this section shall not apply to any alien who 
is:
    (1) Admitted as a conditional entrant refugee to the United States 
as a result of the application, of the provisions of section 203(a)(7) 
(in effect prior to April 1, 1980) of the Immigration and Nationality 
Act;
    (2) Admitted as a refugee to the United States as a result of the 
application of the provisions of section 207(c) (in effect after March 
31, 1980) of the Immigration and Nationality Act;
    (3) Paroled into the United States as a refugee under section 
212(d)(5) of the Immigration and Nationality Act;
    (4) Granted political asylum by the Attorney General under section 
208 of the Immigration and Nationality Act;
    (5) A Cuban or Haitian entrant, as defined in section 501(e) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422); or
    (6) The dependent child of the sponsor or sponsor's spouse.
    (h) The Secretary shall make information necessary to make a 
determination under this section and supplied under agreement with the 
Secretary of State and the Attorney General, available upon request to a 
concerned State Agency.

[47 FR 5680, Feb. 5, 1982; 47 FR 43383, Oct. 1, 1982; 47 FR 47828, Oct. 
28, 1982; 49 FR 35602, Sept. 10, 1984; 57 FR 30160, July 8, 1992]



Sec.233.52  Overpayment to aliens.

    A State Plan under title IV-A of the Social Security Act, shall 
provide that:
    (a) Any sponsor of an alien and the alien shall be jointly and 
severally liable for any overpayment of aid under the State plan made to 
the alien during the three years after the alien's entry into the United 
States due to the sponsor's failure to provide correct information under 
the provisions of Sec.233.51, except as provided in paragraph (b) of 
this section.
    (b) When a sponsor is found to have good cause or to be without 
fault (as defined in the State plan) for not providing information to 
the agency, the sponsor will not be held liable for the overpayment and 
recovery will not be made from this sponsor.
    (c) An overpayment for which the alien or the sponsor and the alien 
are liable (as described in paragraphs (a) and (b) of this section) 
shall be repaid to the State or recovered in accordance with Sec.
233.20(a)(13). If the agency is unable to recover the overpayment 
through this method, funds to reimburse the agency for the overpayment 
shall be withheld from future payments to which the alien or the alien 
and the individual sponsor are entitled under:
    (1) Any State administered or supervised program established by the 
Social Security Act, or
    (2) Any federally administered cash benefit program established by 
the Social Security Act.

[47 FR 5680, Feb. 5, 1982, as amended at 49 FR 35602, Sept. 10, 1984]



Sec.233.53  Support and maintenance assistance (including home energy 
assistance) in AFDC.

    (a) General. At State option, certain support and maintenance 
assistance (including home energy assistance) may be excluded from 
income and resources.
    (b) Definitions. The following definitions are limited to the 
support and maintenance assistance provisions of this section.
    Appropriate State agency means the agency designated by the chief 
executive officer of the State to handle the State's responsibilities 
with respect to support and maintenance assistance under paragraph (c) 
of this section.
    Based on need means that the assistance is given to or on behalf of 
an applicant or recipient for the purpose of support and maintenance 
(including home energy) and meets the criteria established by the State 
for determining the need for such assistance.
    In kind assistance means assistance furnished in any form except 
direct cash payments to an applicant or recipient or direct payments to 
an applicant or recipient through other financial instruments which are 
convertible to cash.

[[Page 90]]

    Private, nonprofit organization means a religious, charitable, 
educational, or other organization such as described in section 501(c) 
of the Internal Revenue Code of 1954. (Actual tax exempt certification 
by IRS is not necessary).
    Rate-of-return entity means an entity whose revenues are primarily 
received from the entity's charges to the public for goods or services, 
and such charges are based on rates regulated by a State or Federal 
governmental body.
    Support and maintenance assistance means any assistance designed to 
meet the expenses of day to day living. Support and maintenance 
assistance includes home energy assistance. Home energy assistance means 
any assistance related to meeting the cost of heating or cooling a home. 
Home energy assistance includes such items as payments for utility 
service or bulk fuels; assistance in kind such as portable heaters, 
fans, blankets, storm doors, or other items which help reduce the costs 
of heating and cooling such as conservation or weatherization materials 
and services; etc.
    (c) Requirements for State Plans. If a State elects to exclude from 
income and resources support and maintenance assistance, the State plan 
for AFDC must as specified below:
    (1) Provide that an appropriate State agency will certify that 
support and maintenance assistance is based on need (as defined in 
paragraph (b) of this section), and that such certification will be 
accepted for purposes of determining eligibility for and the amount of 
payments under the AFDC program.
    (2) Provide that in joint AFDC/SSI households, support and 
maintenance assistance furnished to the household which is not excluded 
under this paragraph will be prorated on a reasonable basis to determine 
the amount provided to the AFDC assistance unit. The State plan must 
describe the method that will be used to prorate the assistance in these 
circumstances.
    (3) Provide that the types and amount of support and maintenance 
assistance that are excluded when received by an AFDC applicant or 
recipient will also be excluded in determining the income and resources 
of a parent, stepparent, spouse or alien sponsor whose income is 
considered available to an AFDC applicant or recipient.
    (4) Provide that the State may exclude, from income and resources, 
support and maintenance assistance (as defined in paragraph (b) of this 
section) which the appropriate State agency certifies is based on need, 
if the assistance is furnished by:
    (i) A supplier of home heating gas or oil, regardless of whether the 
assistance is in cash or in kind; or
    (ii) A municipal utility providing home energy, regardless of 
whether the assistance is in cash or in kind; or
    (iii) A rate-of-return entity which provides home energy, regardless 
of whether the assistance is in cash or in kind; or
    (iv) A private nonprofit organization, but only if such assistance 
is in kind.
    (5) Provide that, if the State elects to exclude from income and 
resources any support and maintenance assistance, the State plan must:
    (i) Describe the criteria that will be used to determine the need 
for the assistance;
    (ii) Identify the types and amounts of assistance which will be 
excluded; and
    (iii) Provide that any limitations will be made on a reasonable 
basis.

[51 FR 39533, Oct. 29, 1986, as amended at 56 FR 64204, Dec. 9, 1991]



Sec.233.60  Institutional status.

    (a) Federal financial participation. (1) Federal financial 
participation under title I, X, XIV, or XVI of the Social Security Act 
is not available in payments to or in behalf of any individual who is an 
inmate of a public institution except as a patient in a medical 
institution.
    (2)(i) Federal financial participation under title X or XIV of the 
Social Security Act is not available in payments to or in behalf of any 
individual who is a patient in an institution for tuberculosis or mental 
diseases.
    (ii) Federal financial participation under title XVI of the Social 
Security Act is not available in payments to or in behalf of any 
individual who has not attained 65 years of age and who is a patient in 
an institution for tuberculosis or mental diseases.
    (3) For purposes of this paragraph:

[[Page 91]]

    (i) Federal financial participation is available in payments for the 
month in which an individual (if otherwise eligible) became an inmate of 
a public institution, or a patient in an institution for tuberculosis or 
mental diseases;
    (ii) Whether an institution is one for tuberculosis or mental 
diseases will be determined by whether its overall character is that of 
a facility established and maintained primarily for the care and 
treatment of individuals with tuberculosis or mental diseases (whether 
or not it is licensed);
    (iii) An institution for the mentally retarded is not an institution 
for mental diseases;
    (iv) An individual on conditional release or convalescent leave from 
an institution for mental diseases is not considered to be a patient in 
such institution.
    (b) Definitions. For purposes of Federal financial participation 
under paragraph (a) of this section:
    (1) Institution means an establishment which furnishes (in single or 
multiple facilities) food and shelter to four or more persons unrelated 
to the proprietor, and in addition, provides some treatment or services 
which meet some need beyond the basic provision of food and shelter.
    (2) In an institution refers to an individual who is admitted to 
participate in the living arrangements and to receive treatment or 
services provided there which are appropriate to his requirements.
    (3) Public institution means an institution that is the 
responsibility of a governmental unit or over which a governmental unit 
exercises administrative control.
    (4) Inmate of a public institution means a person who is living in a 
public institution. An individual is not considered an inmate when:
    (i) He is in a public educational or vocational training 
institution, for purposes of securing education or vocational training, 
or
    (ii) He is in a public institution for a temporary emergent period 
pending other arrangements appropriate to his needs.
    (5) Medical institution means an institution which:
    (i) Is organized to provide medical care, including nursing and 
convalescent care;
    (ii) Has the necessary professional personnel, equipment, and 
facilities to manage the medical, nursing, and other health needs of 
patients on a continuing basis in accordance with accepted standards;
    (iii) Is authorized under State law to provide medical care;
    (iv) Is staffed by professional personnel who have clear and 
definite responsibility to the institution in the provision of 
professional medical and nursing services including adequate and 
continual medical care and supervision by a physician; sufficient 
registered nurse or licensed practical nurse supervision and services 
and nurse aid services to meet nursing care needs; and appropriate 
guidance by a physician(s) on the professional aspects of operating the 
facility.
    (6) Institution for tuberculosis means an institution which is 
primarily engaged in providing diagnosis, treatment, or care of persons 
with tuberculosis, including medical attention, nursing care, and 
related services.
    (7) Institution for mental diseases means an institution which is 
primarily engaged in providing diagnosis, treatment or care of persons 
with mental diseases, including medical attention, nursing care, and 
related services.
    (8) Patient means an individual who is in need of and receiving 
professional services directed by a licensed practitioner of the healing 
arts toward maintenance, improvement, or protection of health, or 
alleviation of illness, disability, or pain.

[36 FR 3867, Feb. 27, 1971]



Sec.233.70  Blindness.

    (a) State plan requirements. A State plan under title X or XVI of 
the Social Security Act must:
    (1) Contain a definition of blindness in terms of ophthalmic 
measurement. The following definition is recommended: An individual is 
considered blind if he has central visual acuity of 20/200 or less in 
the better eye with correcting glasses or a field defect in which the 
peripheral field has contracted to such an extent that the widest 
diameter of visual field

[[Page 92]]

subtends an angular distance of no greater than 20[deg].
    (2) Provide, in any instance in which a determination is to be made 
whether an individual is blind or continues to be blind as defined under 
the State plan, that there will be an initial examination or re-
examination performed by either a physician skilled in the diseases of 
the eye or by an optometrist, whichever the individual so selects.
    (i) No examination is necessary when both eyes are missing.
    (ii) Where an initial eye examination or re-examination is 
necessary, the physician or optometrist conducting such examination will 
submit to the State agency a report thereof, on such forms and in such 
manner, as may be prescribed for such purpose. A determination whether 
the individual meets the State's definition of blindness under the State 
plan will be based upon a review of such eye examination report as 
provided for in paragraph (a)(3) of this section, and other information 
or additional examination reports as the State deems necessary.
    (3) Provide that each initial eye examination report and any 
subsequent re-examination report will be reviewed by a State reviewing 
physician skilled in the diseases of the eye (e.g., an ophthalmologist 
or an eye, ear, nose and throat specialist). Such physician is 
responsible for making the agency's decision that the applicant or 
recipient does or does not meet the State's definition of blindness, and 
for determining if and when reexaminations are necessary in periodic 
reviews of eligibility, as required in Sec.206.10(a)(9)(iii) of this 
chapter.
    (b) Federal financial participation--(1) Assistance payments. 
Federal financial participation is available in assistance provided to 
or in behalf of any otherwise eligible person who is blind under the 
State's title X or XVI plan. Blindness may be considered as continuing 
until a determination by the reviewing physician establishes the fact 
that the recipient's vision has improved beyond the State's definition 
of blindness set forth under its State title of X or XVI plan.
    (2) Administrative expenses. Federal financial participation is 
available in any expenditures incident to the eye examination necessary 
to determine whether an individual is blind.

[36 FR 3867, Feb. 27, 1971, as amended at 40 FR 25819, June 19, 1975]



Sec.233.80  Disability.

    (a) State plan requirements. A State plan under title XIV or XVI of 
the Social Security Act must:
    (1) Contain a definition of permanently and totally disabled, 
showing that:
    (i) ``Permanently'' is related to the duration of the impairment or 
combination of impairments; and
    (ii) ``Totally'' is related to the degree of disability.

The following definition is recommended:
    ``Permanently and totally disabled'' means that the individual has 
some permanent physical or mental impairment, disease, or loss, or 
combination thereof, this substantially precludes him from engaging in 
useful occupations within his competence, such as holding a job.

Under this definition:
    ``Permanently'' refers to a condition which is not likely to improve 
or which will continue throughout the lifetime of the individual; it may 
be a condition which is not likely to respond to any known therapeutic 
procedures, or a condition which is likely to remain static or to become 
worse unless certain therapeutic measures are carried out, where 
treatment is unavailable, inadvisable, or is refused by the individual 
on a reasonable basis; ``permanently'' does not rule out the possibility 
of vocational rehabilitation or even possible recovery in light of 
future medical advances or changed prognosis; in this sense the term 
refers to a condition which continues indefinitely, as distinct from one 
which is temporary or transient;
    ``Totally'' involves considerations in addition to those verified 
through the medical findings, such as age, training, skills, and work 
experience, and the probable functioning of the individual in his 
particular situation in light of his impairment; an individual's 
disability would usually be tested in relation to ability to engage in 
remunerative employment; the ability to keep house or to care for others 
would be the appropriate test for (and only for) individuals, such as 
housewives, who were engaged in this occupation prior to the disability 
and do not have a history of gainful employment; eligibility may 
continue, even after a period of rehabilitation and readjustment, if the 
individual's work capacity is still very considerably limited (in 
comparison with that of a normal person) in terms of such factors as the 
speed

[[Page 93]]

with which he can work, the amount he can produce in a given period of 
time, and the number of hours he is able to work.

    (2) Provide for the review of each medical report and social history 
by technically competent persons--not less than a physician and a social 
worker qualified by professional training and pertinent experience--
acting cooperatively, who are responsible for the agency's decision that 
the applicant does or does not meet the State's definition of permanent 
and total disability. Under this requirement:
    (i) The medical report must include a substantiated diagnosis, based 
either on existing medical evidence or upon current medical examination;
    (ii) The social history must contain sufficient information to make 
it possible to relate the medical findings to the activities of the 
``useful occupation'' and to determine whether the individual is totally 
disabled, and
    (iii) The review physician is responsible for setting dates for 
reexamination; the review team is responsible for reviewing 
reexamination reports in conjunction with the social data to determine 
whether disabled recipients whose health condition may improve continue 
to meet the State's definition of permanent and total disability.
    (3) Provide for cooperative arrangements with related programs, such 
as vocational rehabilitation services.
    (b) Federal financial participation--(1) Assistance payments. 
Federal financial participation is available in payments to or in behalf 
of any otherwise eligible individual who is permanently and totally 
disabled. Permanent and total disability may be considered as continuing 
until the review team establishes the fact that the recipient's 
disability is no longer within the State's definition of permanent and 
total disability.
    (2) Administrative expenses. Federal financial participation is 
available in any expenditures incident to the medical examinations 
necessary to determine whether an individual is permanently and totally 
disabled.

[36 FR 3867, Feb. 27, 1971]



Sec.233.90  Factors specific to AFDC.

    (a) State plan requirements. A State plan under title IV-A of the 
Social Security Act shall provide that:
    (1) The determination whether a child has been deprived of parental 
support or care by reason of the death, continued absence from the home, 
or physical or mental incapacity of a parent, or (if the State plan 
includes such cases) the unemployment of his or her parent who is the 
principal earner will be made only in relation to the child's natural or 
adoptive parent, or in relation to the child's stepparent who is 
married, under State law, to the child's natural or adoptive parent and 
is legally obligated to support the child under State law of general 
applicability which requires stepparents to support stepchildren to the 
same extent that natural or adoptive parents are required to support 
their children. Under this requirement, the inclusion in the family, or 
the presence in the home, of a ``substitute parent'' or ``man-in-the-
house'' or any individual other than one described in this paragraph is 
not an acceptable basis for a finding of ineligibility or for assuming 
the availability of income by the State; and
    (2) Where it has reason to believe that a child receiving aid is in 
an unsuitable environment because of known or suspected instances of 
physical or mental injury, sexual abuse or exploitation, or negligent 
treatment or maltreatment of such child, under circumstances which 
indicate the child's health or welfare is threatened, the State or local 
agency will:
    (i) Bring such condition to the attention of a court, law-
enforcement agency, or other appropriate agency in the State, providing 
whatever data it has with respect to the situation;
    (ii) In reporting such conditions, use the same criteria as are used 
in the State for all other parents and children; and
    (iii) Cooperate with the court or other agency in planning and 
implementing action in the best interest of the child.
    (b) Conditions for plan approval. (1) A child may not be denied AFDC 
either initially or subsequently ``because of the conditions of the home 
in which

[[Page 94]]

the child resides'', or because the home is considered ``unsuitable'', 
unless ``provision is otherwise made pursuant to a State statute for 
adequate care and assistance with respect to such child''. (Section 
404(b) of the Social Security Act.)
    (2) An otherwise eligible child who is under the age of 18 years may 
not be denied AFDC, regardless of whether she attends school (unless she 
is required to participate in the JOBS program pursuant to Sec.250.30 
and she is assigned to educational activities) or makes satisfactory 
grades.
    (3) A state may elect to include in its AFDC program children age 18 
who are full-time students in a secondary school, or in the equivalent 
level of vocational or technical training, and who may reasonably be 
expected to complete the program before reaching age 19.
    (4)(i) A child may not be denied AFDC either initially or 
subsequently because a parent or other caretaker relative fails to 
cooperate with the child support agency in performing any of the 
activities needed to:
    (A) Establish the paternity of a child born out of wedlock; or
    (B) Obtain support from a person having a legal duty to support the 
child.
    (ii) Any parent or caretaker relative who fails to so cooperate 
shall be treated in accordance with Sec.232.12 of this chapter.
    (5) [Reserved]
    (6) An otherwise eligible child may not be denied AFDC if a parent 
is mentally or physically incapacitated as defined in paragraph 
(c)(1)(iv) of this section.
    (c) Federal financial participation. (1) Federal financial 
participation under title IV-A of the Social Security Act in payments 
with respect to a ``dependent child,'' as defined in section 406(a) of 
the Act, is available within the following interpretations:
    (i) Needy child deprived by reason of. The phrase ``needy child * * 
* deprived * * * by reason of'' requires that both need and deprivation 
of parental support or care exist in the individual case. The phrase 
encompasses the situation of any child who is in need and otherwise 
eligible, and whose parent--father or mother--either has died, has a 
physical or mental incapacity, or is continually absent from the home. 
This interpretation is equally applicable whether the parent was the 
chief bread winner or devoted himself or herself primarily to the care 
of the child, and whether or not the parents were married to each other. 
The determination whether a child has been deprived of parental support 
or care is made in relation to the child's natural parent or, as 
appropriate, the adoptive parent or stepparent described in paragraph 
(a) of this section.
    (ii) Death of a parent. If either parent of a child is deceased, the 
child is deprived of parental support or care, and may, if he is in need 
and otherwise eligible, be included within the scope of the program.
    (iii) Continued absence of the parent from the home. Continued 
absence of the parent from the home constitutes the reason for 
deprivation of parental support or care when the parent is out of the 
home, the nature of the absence is such as either to interrupt or to 
terminate the parent's functioning as a provider of maintenance, 
physical care, or guidance for the child, and the known or indefinite 
duration of the absence precludes counting on the parent's performance 
of the function of planning for the present support or care of the 
child. If these conditions exist, the parent may be absent for any 
reason, and may have left only recently or some time previously; except 
that a parent whose absence is occasioned solely by reason of the 
performance of active duty in the uniformed services of the United 
States (as defined in section 101(3) of Title 37, United States code) is 
not considered absent from the home. A parent who is a convicted 
offender but is permitted to live at home while serving a court-imposed 
sentence by performing unpaid public work or unpaid community service 
during the workday is considered absent from the home.
    (iv) ``Physical or mental incapacity''. ``Physical or mental 
incapacity'' of a parent shall be deemed to exist when one parent has a 
physical or mental defect, illness, or impairment. The incapacity shall 
be supported by competent medical testimony and must be of such

[[Page 95]]

a debilitating nature as to reduce substantially or eliminate the 
parent's ability to support or care for the otherwise eligible child and 
be expected to last for a period of at least 30 days. In making the 
determination of ability to support, the agency shall take into account 
the limited employment opportunities of handicapped individuals.

A finding of eligibility for OASDI or SSI benefits, based on disability 
or blindness is acceptable proof of incapacity for AFDC purposes.
    (v) ``Living with [a specified relative] in a place of residence 
maintained * * * as his * * * own home''. (A) A child may be considered 
to meet the requirement of living with one of the relatives specified in 
the Act if his home is with a parent or a person in one of the following 
groups:
    (1) Any blood relative, including those of half-blood, and including 
first cousins, nephews, or nieces, and persons of preceding generations 
as denoted by prefixes of grand, great, or great-great.
    (2) Stepfather, stepmother, stepbrother, and stepsister.
    (3) Person who legally adopt a child or his parent as well as the 
natural and other legally adopted children of such persons, and other 
relatives of the adoptive parents in accordance with State law.
    (4) Spouses of any persons named in the above groups even after the 
marriage is terminated by death or divorce.
    (B) A home is the family setting maintained or in process of being 
established, as evidenced by assumption and continuation of 
responsibility for day to day care of the child by the relative with 
whom the child is living. A home exists so long as the relative 
exercises responsibility for the care and control of the child, even 
though either the child or the relative is temporarily absent from the 
customary family setting. Within this interpretation, the child is 
considered to be ``living with'' his relative even though:
    (1) He is under the jurisdiction of the court (e.g., receiving 
probation services or protective supervision); or
    (2) Legal custody is held by an agency that does not have physical 
possession of the child.
    (2) Federal financial participation is available in:
    (i) Initial payments made on behalf of a child who goes to live with 
a relative specified in section 406(a)(1) of the Social Security Act 
within 30 days of the receipt of the first payment, provided payments 
are not made for concurrent period for the same child in the home of 
another relative or as foster care under title IV-E;
    (ii) Payments made for the entire month in the course of which a 
child leaves the home of a specified relative, provided payments are not 
made for a concurrent period for the same child in the home of another 
relative or as foster care under title IV-E; and
    (iii) Payments made to persons acting for relatives specified in 
section 406(a)(1) of the Act in emergency situations that deprive the 
child of the care of the relative through whom he has been receiving 
aid, for a temporary period necessary to make and carry out plans for 
the child's continuing care and support.
    (iv) At State option, (A) payments with respect to a pregnant woman 
with no other children receiving assistance, and additionally, at State 
option, (B) payments for the purpose of meeting special needs occasioned 
by or resulting from pregnancy both for the pregnant woman with no other 
children as well as for the pregnant woman receiving AFDC. However, for 
both paragraphs (c)(2)(iv) (A) and (B) of this section it must be 
medically verified that the child is expected to be born in the month 
such payments are made or within the three-month period following such 
month of payment, and who, if such child had been born and was living 
with her in the month of payment, would be eligible for aid to families 
with dependent children. Federal financial participation is not 
available to meet the needs of the unborn child. (Refer to Medicaid 
regulations at 42 CFR 435.115 for Medicaid coverage of pregnant women.)
    (3) Federal financial participation (at the 50 percent rate) is 
available in any

[[Page 96]]

expenses incurred in establishing eligibility for AFDC, including 
expenses incident to obtaining necessary information to determine the 
existence of incapacity of a parent or pregnancy of a mother.

[36 FR 3868, Feb. 27, 1971, as amended at 39 FR 34038, Sept. 23, 1974; 
40 FR 27156, June 26, 1975; 44 FR 12424, Mar. 7, 1979; 47 FR 5681, Feb. 
5, 1982; 47 FR 41114, Sept. 17, 1982; 48 FR 28409, June 21, 1983; 51 FR 
9206, Mar. 18, 1986; 52 FR 28824, Aug. 4, 1987; 54 FR 42243, Oct. 13, 
1989; 58 FR 49218, Sept. 22, 1993; 59 FR 26142, May 19, 1994]



Sec.233.100  Dependent children of unemployed parents.

    (a) Requirements for State Plans. If a State wishes to provide AFDC 
for children of unemployed parents, the State plan under title IV-A of 
the Social Security Act must:
    (1) Include a definition of an unemployed parent who is the 
principal earner which shall apply only to families determined to be 
needy in accordance with the provisions in Sec.233.20. Such definition 
must include any such parent who:
    (i) Is employed less than 100 hours a month; or
    (ii) Exceeds that standard for a particular month, if the work is 
intermittent and the excess is of a temporary nature as evidenced by the 
fact that he or she was under the 100-hour standard for the prior 2 
months and is expected to be under the standard during the next month; 
except that at the option of the State, such definition need not include 
a principal earner who is unemployed because of participation in a labor 
dispute (other than a strike) or by reason of conduct or circumstances 
which result or would result in disqualification for unemployment 
compensation under the State's unemployment compensation law.
    (2) Include a definition of a dependent child which shall include 
any child of an unemployed parent (as defined by the State pursuant to 
paragraph (a)(1) of this section) who would be, except for the fact that 
his parent is not dead, absent from the home, or incapacitated, a 
dependent child under the State's plan approved under section 402 of the 
Act.
    (3) Provide for payment of aid with respect to any dependent child 
(as defined by the State pursuant to paragraphs (a)(2) of this section) 
when the conditions set forth in paragraphs (a)(3) (i), (ii), (iii), and 
(vii) of this section are met:
    (i) His or her parent who is the principal earner has been 
unemployed for at least 30 days prior to the receipt of such aid.
    (ii) Such parent has not without good cause, within such 30-day 
period prior to the receipt of such aid, refused a bona fide offer of 
employment or training for employment. Before it is determined that such 
parent has refused a bona fide offer of employment or training for 
employment without good cause, the agency must make a determination that 
such an offer was actually made. (In the case of offers of employment 
made through the public employment or manpower agencies, the 
determination as to whether the offer was bona fide, or whether there 
was good cause to refuse it, will be made by that office or agency.) The 
parent must be given an opportunity to explain why such offer was not 
accepted. Questions with respect to the following factors must be 
resolved:
    (a) That there was a definite offer of employment at wages meeting 
any applicable minimum wage requirements and which are customary for 
such work in the community;
    (b) Any questions as to the parent's inability to engage in such 
employment for physical reasons or because he has no way to get to or 
from the particular job; and
    (c) Any questions of working conditions, such as risks to health, 
safety, or lack of worker's compensation protection.
    (iii) Such parent (a) has six or more quarters of work (as defined 
in paragraph (a)(3)(iv) of this section), within any 13-calendar-quarter 
period ending within 1 year prior to the application for such aid, or 
(b) within such 1-year period, received unemployment compensation under 
an unemployment compensation law of a State or of the United States, or 
was qualified under the terms of paragraph (a)(3)(v) of this section) 
for such compensation under the State's unemployment compensation law.

[[Page 97]]

    (iv) A ``quarter of work'' with respect to any individual means a 
period (of 3 consecutive calendar months ending on March 31, June 30, 
September 30, or December 31) in which he or she received earned income 
of not less than $50 (or which is a ``quarter of coverage'' as defined 
in section 213(a)(2) of the Act), or in which he or she participated in 
a community work experience program under section 409 of the Act or the 
work incentive program established under title IV-C of the Act.
    (v) An individual shall be deemed ``qualified'' for unemployment 
compensation under the State's unemployment compensation law if he would 
have been eligible to receive such benefits upon filing application, or 
he performed work not covered by such law which, if it had been covered, 
would (together with any covered work he performed) have made him 
eligible to receive such benefits upon filing application.
    (vi)(A) The ``parent who is the principal earner'' means, in the 
case of any child, whichever parent, in a home in which both parents of 
such child are living, earned the greater amount of income in the 24-
month period the last month of which immediately precedes the month in 
which an application is filed for aid under this part on the basis of 
the unemployment of a parent. If the State cannot secure primary 
evidence of earnings for this period, the State shall designate the 
principal earner, using the best evidence available. The earnings of 
each parent are considered in determining the principal earner 
regardless of when their relationship began. The principal earner so 
defined remains the principal earner for each consecutive month for 
which the family receives such aid on the basis of such application. 
This requirement applies to both new applicants and current AFDC 
unemployed parent families who were eligible and receiving aid prior to 
October 1, 1981.
    (B) If both parents earned an identical amount of income (or earned 
no income) in such 24-month period, the State shall designate which 
parent shall be the principal earner.
    (vii) The parent who is the principal earner (unless exempt under 
Sec.240.14) has met the requirements for participation in an 
employment search program under part 240 of this chapter.
    (4) Provide for entering into cooperative arrangements with the 
State agency responsible for administering or supervising the 
administration of vocational education to assure maximum utilization of 
available public vocational education services and facilities in the 
State to encourage the retraining of individuals capable of being 
retrained.
    (5) Provide for the denial of such aid to any such dependent child 
or the relative specified in section 406(a)(1) of the Act with whom such 
child is living,
    (i) If and for so long as such child's parent, unless exempt under 
Sec.224.20, is not currently registered for the work incentive program 
or if exempt under Sec.224.20(b)(6), is not currently registered with 
a public employment office in the State, except that in a State with an 
approved JOBS plan under Sec.250.20, such child's parent, unless 
exempt under Sec.250.30(b), must be currently participating (or 
available for participation) in a program under part 250, or, if he is 
exempt under Sec.250.30(b)(5), must be registered with a public 
employment office in the State, and
    (ii) With respect to any week for which such child's parent 
qualifies for unemployment compensation under an unemployment 
compensation law of the State or of the United States but refuses to 
apply for or accept such unemployment compensation, and
    (iii) If the parent who is the principal earner (unless exempt under 
Sec.240.14) fails to meet the requirements for participation in a 
program of employment search established under part 240 of this chapter.
    (6) Provide that within 30 days after the receipt of such aid, 
unemployed principal earners will be certified for participation in the 
Work Incentive program under part 224 or, if the State IV-A agency has 
an approved JOBS plan pursuant to Sec.250.20, will participate or 
apply for participation in a program under part 250 unless the program 
is not available in the area where the parent is living.
    (b) [Reserved]

[[Page 98]]

    (c) Federal financial participation. (1) Federal financial 
participation is available in payments authorized in accordance with the 
State plan approved under section 402 of the Act as aid to families with 
dependent children with respect to a child.
    (i) Who meets the requirements of section 406(a)(2) of the Act;
    (ii) Who is living with any of the relatives specified in section 
406(a)(1) of the Act in a place of residence maintained by one or more 
of such relatives as his (or their) own home;
    (iii) Who has been deprived of parental support or care by reason of 
the fact that his or her parent who is the principal earner is employed 
less than 100 hours a month; or exceeds that standard for a particular 
month if his or her work is intermittent and the excess is of a 
temporary nature as evidenced by the fact that he or she was under the 
100-hour standard for 2 prior months and is expected to be under the 
standard during the next month.
    (iv) Whose parent who is the principal earner (a) has six or more 
quarters of work (as defined in paragraph (a)(3)(iv) of this section) 
within any 13-calendar-quarter period ending within 1 year prior to the 
application for such aid, (b) within such 1-year period, received 
unemployment compensation under an unemployment compensation law of a 
State or of the United States, or was qualified (under the terms of 
paragraph (a)(3)(v) of this section) for such compensation under the 
State's unemployment compensation law; and
    (v) Whose parent who is the principal earner (a) is currently 
registered with the WIN program unless exempt or is registered with the 
public employment office in the State if exempt from WIN registration 
under Sec.224.20(b)(6) or because there is no WIN program in which he 
can effectively participate; and (b) has not refused to apply for or 
accept unemployment compensation with respect to any week for which such 
child's parent qualifies for unemployment compensation under an 
unemployment compensation law of a State or of the United States.
    (2) The State may not include in its claim for Federal financial 
participation payments made as aid under the plan with respect to a 
child who meets the conditions set forth in paragraph (c)(1) of this 
section, where such payments were made.
    (i) For any part of the 30-day period specified in paragraph 
(a)(3)(i) of this section;
    (ii) For such 30-day period if during that period the parent refused 
without good cause a bona fide offer of employment or training for 
employment;
    (iii) For any period beginning with the 31st day after receipt of 
aid, if and for as long as no action is taken during the period to 
certify the parent for participation in the Work Incentive program under 
part 224, or if the State IV-A agency has an approved JOBS plan pursuant 
to Sec.250.20, no action is taken during the period to undertake 
appropriate steps directed toward the participation of such parent in a 
program under part 250; and
    (iv) For any part of the sanction period imposed under Sec.240.22 
(for failure to meet the requirements for participation in the 
employment search program).
    (d) For all States (other than Puerto Rico, American Samoa, Guam, 
and the Virgin Islands) the provisions of this section are suspended 
through September 30, 1998. For Puerto Rico, American Samoa, Guam, and 
the Virgin Islands, the provisions of this section are suspended from 
October 1, 1992, through September 30, 1998.

[34 FR 1146, Jan. 24, 1969, as amended at 36 FR 13604, July 22, 1971; 38 
FR 18549, July 12, 1973; 38 FR 26608, Sept. 24, 1973; 46 FR 46769, Sept. 
21, 1981; 47 FR 5681, Feb. 5, 1982; 47 FR 41114, Sept. 17, 1982; 47 FR 
43383, Oct. 1, 1982; 48 FR 28409, June 21, 1983; 51 FR 9206, Mar. 18, 
1986; 54 FR 42244, Oct. 13, 1989; 57 FR 30426, July 9, 1992]



Sec.233.101  Dependent children of unemployed parents.

    (a) Requirements for State Plans. Effective October 1, 1990 (for 
Puerto Rico, American Samoa, Guam, and the Virgin Islands, October 1, 
1992), a State plan must provide for payment of AFDC for children of 
unemployed parents. A State plan under title IV-A for payment of such 
aid must:
    (1) Include a definition of an unemployed parent who is the 
principal earner which shall apply only to families determined to be 
needy in accordance with the provisions in Sec.233.20 of

[[Page 99]]

this part. Such definition must have a reasonable standard for measuring 
unemployment and, at a minimum, include any such parent who:
    (i) Is employed less than 100 hours a month; or
    (ii) Exceeds that standard for a particular month, if the work is 
intermittent and the excess is of a temporary nature as evidenced by the 
fact that he or she was under the 100-hour standard for the prior 2 
months and is expected to be under the standard during the next month; 
except that at the option of the State, such definition need not include 
a principal earner who is unemployed because of participation in a labor 
dispute (other than a strike) or by reason of conduct or circumstances 
which result or would result in disqualification for unemployment 
compensation under the State's unemployment compensation law.
    (2) Include a definition of a dependent child which shall include 
any child of an unemployed parent (as defined by the State pursuant to 
paragraph (a)(1) of this section) who would be, except for the fact that 
his parent is not dead, absent from the home, or incapacitated, a 
dependent child under the State's plan approved under section 402 of the 
Act.
    (3) Provide for payment of aid with respect to any dependent child 
(as defined by the State pursuant to paragraph (a)(2) of this section) 
when the conditions set forth in paragraphs (a)(3)(i), (a)(3)(ii), and 
(a)(3)(iii) of this section are met.
    (i) His or her parent who is the principal earner has been 
unemployed for at least 30 days prior to the receipt of such aid;
    (ii) Such parent has not without good cause, within such 30-day 
period prior to the receipt of such aid, refused a bona fide offer of 
employment or training for employment. Before it is determined that such 
parent has refused a bona fide offer of employment or training for 
employment without good cause, the agency must make a determination that 
such offer was actually made. (In the case of offers of employment made 
through the public employment or manpower agencies, the determination as 
to whether the offer was bona fide, or whether there was good cause to 
refuse it, shall be made by the title IV-A agency. The IV-A agency may 
accept the recommendations of such agencies.) The parent must be given 
an opportunity to explain why such offer was not accepted. Questions 
with respect to the following factors must be resolved:
    (A) That there was a definite offer of employment at wages meeting 
any applicable minimum wage requirements and which are customary for 
such work in the community;
    (B) Any questions as to the parent's inability to engage in such 
employment for physical reasons or because he has no way to get to or 
from the particular job; and
    (C) Any questions of working conditions, such as risks to health, 
safety, or lack of worker's compensation protection.
    (iii) Such parent:
    (A) Has six or more quarters of work (as defined in paragraph 
(a)(3)(iv) of this section), within any 13-calendar-quarter period 
ending within one year prior to the application for such aid, or
    (B) Within such 1-year period, received unemployment compensation 
under an unemployment compensation law of a State or of the United 
States, or was qualified under the terms of paragraph (a)(3)(v) of this 
section for such compensation under the State's unemployment 
compensation law.
    (iv) A ``quarter of work'' with respect to any individual means a 
period (of 3 consecutive calendar months ending on March 31, June 30, 
September 30, or December 31):
    (A) In which an individual received earned income of not less than 
$50 (or which is a ``quarter of coverage'' as defined in section 
213(a)(2) of the Social Security Act) or participated in a program under 
part 250 of this chapter; or
    (B) At State option (as specified in the plan), in one or more 
subdivisions of the State, in which he or she attended, full-time, an 
elementary school, a secondary school, or a vocational or technical 
training course that is designed to prepare the individual for gainful 
employment, or in which the individual participated in an educational or 
training program established under the Job Training Partnership Act, 
provided that an individual

[[Page 100]]

may qualify for no more than four quarters of work under this paragraph 
for purposes of the requirement set forth in paragraph (a)(3)(iii)(A) of 
this section; and
    (C) A calendar quarter ending before October 1990 in which an 
individual participated in CWEP under section 409 of the Social Security 
Act or the WIN program established under title IV-C of the Social 
Security Act (as in effect for a State immediately before the effective 
date of that State's JOBS program).
    (v) An individual shall be deemed ``qualified'' for unemployment 
compensation under the State's unemployment compensation law if he or 
she would have been eligible to receive such benefits upon filing an 
application, or he performed work not covered by such law, which, if it 
had been covered, would (together with any covered work he performed) 
have made him eligible to receive such benefits upon filing an 
application.
    (vi)(A) The ``parent who is the principal earner'' means, in the 
case of any child, whichever parent, in a home in which both parents of 
such child are living, earned the greater amount of income in the 24-
month period the last month of which immediately precedes the month in 
which an application is filed for aid under this part on the basis of 
the unemployment of a parent. If the State cannot secure primary 
evidence of earnings for this period, the State shall designate the 
principal earner, using the best evidence available. The earnings of 
each parent are considered in determining the principal earner 
regardless of when their relationship began. The principal earner so 
defined remains the principal earner for each consecutive month for 
which the family receives such aid on the basis of such application. 
This requirement applies to both new applicants and current AFDC 
unemployed parent families who were eligible and receiving aid prior to 
October 1, 1981.
    (B) If both parents earned an identical amount of income (or earned 
no income) in such 24-month period, the State shall designate which 
parent shall be the principal earner.
    (4) Provide for entering into cooperative arrangements with the 
State agency responsible for administering or supervising the 
administration of vocational education to assure maximum utilization of 
available public vocational education services and facilities in the 
State to encourage the retraining of individuals capable of being 
retrained.
    (5) Provide that the needs of the child's parent(s) shall not be 
taken into account in determining the needs and amount of assistance of 
the child's family:
    (i) If and for so long as such child's parent(s), unless exempt 
under Sec.250.30(b) of this chapter, is not currently participating 
(or available for participation) in a program under part 250 of this 
chapter or, if they are exempt under Sec.250.30(b)(5) of this chapter 
(or because a JOBS program has not been established in the subdivision 
where they reside or they reside in a JOBS subdivision but there is no 
appropriate JOBS activity in which they can participate), are not 
registered with a public employment office in the State, and
    (ii) With respect to any week for which such child's parent 
qualifies for unemployment compensation under an unemployment 
compensation law of the State or of the United States but refuses to 
apply for or accept such unemployment compensation.
    (6) Provide that medical assistance will be furnished under the 
State's approved plan under title XIX during any month in which an 
otherwise eligible individual is denied assistance solely by reason of 
the time limitation provided under paragraph (b)(3) of this section.
    (b) State Plan Options. A State plan under title IV-A may:
    (1) Require the principal earner or both parents to participate in 
an activity in the JOBS program under part 250 of this chapter, subject 
to the limitations and conditions of part 250 of this chapter, provided 
that the participation of each parent in all required activities under 
the JOBS program does not exceed 40 hours per week, per parent.

[[Page 101]]

    (2) Provide cash assistance after the performance of assigned 
program activities by parents required to participate in an activity in 
the JOBS program under part 250 of this chapter (as provided in 
paragraph (b)(1) of this section) so long as the State:
    (i) Makes assistance payments at regular intervals at least monthly,
    (ii) Prescribes a set of criteria which defines goals or standards 
for each assigned activity in the JOBS program which must be completed 
by the participant prior to payment, and
    (iii) Prior to, or concurrent with, assignment to an activity, 
notifies the participant of the prescribed goals or standards and that 
payment for a period will be withheld unless performance of each 
assigned activity for that period is completed.
    (3) Provide for a State to operate a payment after performance 
system under which a family is issued an assistance payment after the 
applicable family member has successfully completed her obligation to 
participate in JOBS for a specific period. If the applicable family 
member fails without good cause to satisfy the obligation, the State 
may:
    (i) Impose a sanction in accordance with the JOBS program rules at 
Sec. Sec.250.34, 250.35 and 250.36 of this chapter;
    (ii) Reduce the family's assistance payment to which the specific 
period applies by the amount of the payment attributable to the family 
member for that period or do not make the payment to the family; or
    (iii) Reduce the family's assistance payment to which the specific 
period applies (or the amount of the payment attributable to the family 
member for that period) in proportion to the number of required hours 
that were not completed.

For States that elect to implement paragraphs (b)(3) (ii) or (iii) of 
this section, the fair hearing requirements set forth at Sec.
205.10(a)(4)(ii)(K) of this chapter apply.

    (4) Limit the number of months that a family may receive AFDC-UP 
under this section when the following conditions are met:
    (i) The State did not have on September 26, 1988, an approved AFDC-
UP program under section 407 of the Social Security Act.
    (ii) The family received such aid (on the basis of the unemployment 
of the parent who is the principal earner) in at least 6 of the 
preceding 12 months.
    (iii) The State has in effect a program (described in the plan) for 
providing education, training, and employment services to assist parents 
in preparing for and obtaining employment throughout the year. Such a 
program may include education, training and employment activities under 
the JOBS program which are provided in part 250 of this chapter or under 
a State-designed program which provides:
    (A) Education and instruction for individuals who have not graduated 
from a secondary school or obtained an equivalent degree,
    (B) Training whereby an individual acquires market-oriented skills 
necessary for self-support, and
    (C) Employment services which seek to place individuals in jobs.
    (iv) The State must guarantee child care necessary for an individual 
to participate in an approved, State-designed, non-JOBS program. The 
regulations at part 255 of this chapter apply to such care.
    (v) The State has the option of providing necessary supportive 
services associated with an individual's participation in a State-
designed, non-JOBS program. Federal financial participation is available 
under sections 403 (k) and (l) of the Social Security Act. The 
regulations at part 255 of this chapter apply to such supportive 
services.
    (vi) The State must inform an AFDC-UP family at the time of 
application that AFDC-UP cash assistance will terminate due to a time 
limitation, that any family with a child who is (or becomes) deprived 
due to the death, continued absence, or incapacity of a parent may 
receive cash assistance under the AFDC program during the time 
limitation for AFDC-UP, and that a program of training, education, and 
employment services is available to prepare the family to become self-
supporting.
    (vii) Prior to termination due to a time limitation, the State must 
notify an AFDC-UP recipient family of the earliest month that it may 
receive

[[Page 102]]

AFDC-UP cash assistance again. This notification may be included in the 
notice of proposed action which is required pursuant to Sec.
205.10(a)(4) of this chapter. To receive assistance again, the family 
must make a new application.
    (viii) In establishing eligibility upon re-application following 
months of nonpayment due to the time limitation, an otherwise eligible 
family that does not receive aid in a month solely by reason of the 
option to limit assistance under this paragraph shall be deemed, for 
purposes of determining the period under paragraph (a)(3)(iii)(A) of 
this section, to be receiving AFDC-UP cash assistance in that month. 
This provision also applies if, at the time of the family's original 
application for assistance, eligibility was established based on the 
provisions of paragraph (a)(3)(iii)(B) of this section, but eligibility 
could have been established based on the provisions of paragraph 
(a)(3)(iii)(A) of this section.
    (c) Federal Financial Participation. (1) Federal financial 
participation is available for payments authorized in accordance with 
the State plan approved under section 402 of the Act as aid to families 
with dependent children with respect to a child:
    (i) Who meets the requirements of section 406(a)(2) of the Act;
    (ii) Who is living with any of the relatives specified in section 
406(a)(1) of the Act in a place of residence maintained by one or more 
of such relatives as his (or their) own home;
    (iii) Who has been deprived of parental support or care by reason of 
the fact that his or her parent who is the principal earner is employed 
less than 100 hours a month; or exceeds that standard for a particular 
month if his or her work is intermittent and the excess is of a 
temporary nature as evidenced by the fact that he or she was under the 
100-hour standard for 2 prior months and is expected to be under the 
standard during the next month;
    (iv) Whose parent who is the principal earner:
    (A) Has six or more quarters of work (as defined in paragraph 
(a)(3)(iv) of this section) within any 13-calendar-quarter period ending 
within 1 year prior to the application for such aid,
    (B) Within such 1-year period, received unemployment compensation 
under an unemployment compensation law of a State or of the United 
States, or was qualified (under the terms of paragraph (a)(3)(v) of this 
section) for such compensation under the State's unemployment 
compensation law; and
    (v) Whose parent who is the principal earner:
    (A) Is currently participating in or available to participate in an 
activity in the JOBS program under part 250 of this chapter, unless 
exempt, or is registered with the public employment office in the State 
if exempt from the JOBS program under Sec.250.30(b)(5) of this 
chapter; and
    (B) Has not refused to apply for or accept unemployment compensation 
with respect to any week for which such child's parent qualifies for 
unemployment compensation under an unemployment compensation law of the 
State or of the United States.
    (2) The State may not include in its claim for Federal financial 
participation payments made as aid under the plan with respect to a 
child who meets the conditions set forth in paragraph (c)(1) of this 
section, where such payments were made:
    (i) For any part of the 30-day period specified in paragraph 
(a)(3)(i) of this section;
    (ii) For such 30-day period if during that period the parent refused 
without good cause a bona fide offer of employment or training for 
employment;
    (iii) For any period beginning with the 31st day after the receipt 
of aid, if and for as long as no action is taken during the period to 
undertake appropriate steps directed toward the participation of the 
parent who is the principal earner in a program under part 250 of this 
chapter;
    (iv) To the extent that such payments are made to meet the need of 
an individual who is subject to a sanction imposed, under part 250 of 
this chapter (for failure to meet the requirements for participation in 
the JOBS program).
    (3) Federal financial participation is available for child care and 
supportive services expenditures associated with

[[Page 103]]

participation in an approved State-designed program (as provided in 
paragraph (b)(3)(iii) of this section) under titles IV-A and IV-F of the 
Act respectively. However, Federal financial participation is not 
available for any other costs, program or administrative, associated 
with State-designed programs.
    (d) For all States (other than Puerto Rico, American Samoa, Guam, 
and the Virgin Islands) the provisions of this section are in effect 
through September 30, 1998. For Puerto Rico, American Samoa, Guam, and 
the Virgin Islands, the provisions of this section are in effect from 
October 1, 1992, through September 30, 1998.

[57 FR 30426, July 9, 1992, as amended at 63 FR 42274, Aug. 7, 1998]



Sec.233.106  Denial of AFDC benefits to strikers.

    (a) Condition for plan approval. A State plan under title IV-A of 
the Social Security Act must:
    (1) Provide that participation in a strike shall not constitute good 
cause to leave, or to refuse to seek or accept, employment.
    (2)(i) Provide for the denial of AFDC benefits to any family for any 
month in which any caretaker relative with whom the child is living is, 
on the last day of such month, participating in a strike; and
    (ii) Provide that no individual's needs shall be included in 
determining the amount of aid payable for any month to a family under 
the plan if, on the last day of such month, such individual is 
participating in a strike.
    (b) Definitions. (1) The State must define ``strike'' by using the 
National Labor Relations Board definition (29 U.S.C. 142(2)) or another 
definition of the term that is currently in State law.
    (2) The State must define the term ``participating in a strike.''
    (3) For purposes of paragraph (a)(2)(i) of this section, ``caretaker 
relative'' means any natural or adoptive parent.

[47 FR 5682, Feb. 5, 1982]



Sec.233.107  Restriction in payment to households headed by a minor
parent.

    (a) State plan requirements. A State in its title IV-A State plan 
may provide that a minor parent and the dependent child in his or her 
care must reside in the household of a parent, legal guardian, or other 
adult relative, or in an adult-supervised supportive living arrangement 
in order to receive, AFDC unless:
    (1) The minor parent has no living parent or legal guardian whose 
whereabouts is known;
    (2) No living parent or legal guardian of the minor parent allows 
the minor parent to live in his or her home;
    (3) The minor parent lived apart from his or her own parent or legal 
guardian for a period of at least one year before either the birth of 
the dependent child or the parent's having made application for AFDC;
    (4) The physical or emotional health or safety of the minor parent 
or dependent child would be jeopardized if they resided in the same 
residence with the minor parent's parent or legal guardian;
    (5) There is otherwise good cause for the minor parent and dependent 
child to receive assistance while living apart from the minor parent's 
parent, legal guardian, or other adult relative, or an adult-supervised 
supportive living arrangement.
    (b) Allegations. If a minor parent makes allegations supporting the 
conclusion that paragraph (a)(4) of this section applies, the State 
agency shall determine whether it is justified.
    (c) Good Cause. The circumstances justifying a determination of good 
cause must be set forth in the State plan.
    (d) Protective Payments. When a minor parent and his or her 
dependent child are required to live with the minor parent's parent, 
legal guardian, or other adult relative, or in an adult-supervised 
supportive living arrangement, then AFDC is paid (where possible) in the 
form of a protective payment.
    (e) Definitions: For purposes of this section:
    (1) A minor parent is an individual who (i) is under the age of 18, 
(ii) has never been married, and (iii) is either the natural parent of a 
dependent child living in the same household or eligible for assistance 
paid under the State plan to a pregnant woman as provided in Sec.
233.90(c)(2)(iv) of this part.

[[Page 104]]

    (2) A household of a parent, legal guardian, or other adult 
relatives means the place of residence of (i) a natural or adoptive 
parent or a stepparent, or (ii) a legal guardian as defined by the 
State, or (iii) another individual who is age 18 or over and related to 
the minor parent as specified in Sec.233.90(c)(1)(v) of this part 
provided that the residence is maintained as a home for the minor parent 
and child as provided in Sec.233.90(c)(1)(v)(B) of this part.
    (3) An adult-supervised supportive living arrangement means a 
private family setting or other living arrangement (not including a 
public institution), which, as determined by the State, is maintained as 
a family setting, as evidenced by the assumption of responsibility for 
the care and control of the minor parent and dependent child or the 
provision of supportive services, such as counseling, guidance, or 
supervision. For example, foster homes and maternity homes are ``adult-
supervised supportive living arrangements.''
    (f) Notice Requirements. Minor applicants shall be informed about 
the eligibility requirements and their rights and obligations consistent 
with the provisions at Sec.206.10(a)(2)(i). For example, a State may 
wish to: (1) Advise the minor of the possible exemptions and 
specifically ask whether one or more of these exemptions is applicable; 
and (2) assist the minor in attaining the necessary verifications if one 
or more of these exemptions is alleged.

[57 FR 30428, July 9, 1992]



Sec.233.110  Foster care maintenance and adoption assistance.

    (a) State plan requirements. A State plan under title IV-A of the 
Social Security Act must provide that the State has in effect a plan 
approved under part E, title IV of the Social Security Act, and operates 
a foster care maintenance and adoption assistance program in conformity 
with such a plan.
    (b) [Reserved]

[51 FR 9206, Mar. 18, 1986]



Sec.233.145  Expiration of medical assistance programs under titles
I, IV-A, X, XIV and XVI of the Social Security Act.

    (a) Under the provisions of section 121(b) of Pub. L. 89-97, enacted 
July 30, 1965, no payment may be made to any State under title I, IV-A, 
X, XIV or XVI of the Social Security Act for aid or assistance in the 
form of medical or any other type of remedial care for any period after 
December 31, 1969. However, these provisions do not affect the 
availability of Federal financial participation in the cost of medical 
or remedial care furnished under title IV-A of the Act (pursuant to 
sections 403(a)(5) and 406(e)) of the Act, as emergency assistance to 
needy families with children (see Sec.233.120 of this part), subject 
to the provisions of paragraph (c) \1\ of this section. Federal 
financial participation in vendor payments for medical care and services 
is not otherwise available except under title XIX of the Act.
---------------------------------------------------------------------------

    \1\ See notice published Aug. 29, 1973 (38 FR 23337).
---------------------------------------------------------------------------

    (b) Under the provisions of section 4(c) of Pub. L. 92-223, enacted 
December 28, 1971, and the provisions of section 292 of Pub. L. 92-603, 
enacted October 30, 1972:
    (1) In the case of any State which on January 1, 1972, had in effect 
a State plan approved under title XIX of the Social Security Act, 
section 1121 of the Act authorizing payments under title I, X, XIV, or 
XVI of the Act for assistance in the form of institutional services in 
intermediate care facilities is rescinded; and
    (2) In the case of any State which on January 1, 1972, did not have 
in effect a State plan approved under title XIX of the Act, Federal 
financial participation is available in assistance in the form of 
institutional services in intermediate care facilities pursuant to 
section 1121 of the Act and under the provisions of Sec.234.130 of 
this chapter until the first day of the first month after January 1, 
1972, that the State has in effect a State plan approved under title 
XIX.
    (c)(1) Under the provisions of section 249D of Pub. L. 92-603, 
enacted October 30, 1972, Federal matching is not available for any 
portion of any payment by any State under titles I, IV-A, X, XIV, or XVI 
of the Social Security Act for or on account of any medical or any other 
type of remedial care provided by an institution to any individual as an

[[Page 105]]

inpatient thereof, in the case of any State which has a plan approved 
under title XIX of such Act, if such care is (or could be provided, 
under a State plan approved under title XIX of such Act, by an 
institution certified under such title XIX. The effective date of this 
proposed provision will be the date of publication of the final 
regulation in the Federal Register.
    (2) For purposes of this paragraph,
    (i) An institution (see Sec.233.60(b)(1) of this chapter) is 
considered to provide medical or remedial care if it provides any care 
or service beyond room and board because of the physical or mental 
condition (or both) of its inpatients;
    (ii) An inpatient is an individual who is living in an institution 
which provides medical or remedial care and who is receiving care or 
service beyond room and board because of his physical or mental 
condition (or both).
    (iii) Federal financial participation is not available for any 
portion of the payment for care of an inpatient. It is immaterial 
whether such payment is made as a vendor payment or as a money payment 
or other cash assistance payment. It is also immaterial whether the 
payment is divided into components, such as separate amounts or payments 
for room and board, and for care or services beyond room and board, or 
whether the payment is considered to meet ``basic'' needs or ``special'' 
needs. If, however, a money payment (or protective payment) is made to 
an individual who is living in an institution, and such payment does not 
exceed a reasonable rate for room, board and laundry for individuals not 
living in their own homes, and no additional payment is made for such 
individual's care in the institution, Federal financial participation is 
available in the money payment (or protective payment) since the 
individual may spend the funds at his discretion and obtain room and 
board at the place of his choice.
    (iv) Federal financial participation is available in cash assistance 
payments to meet the needs of an inpatient for specific medical 
services, such as dental care or prescription drugs, which generally are 
not delivered in an institutional setting and in fact are not provided 
by the institution to the inpatient, provided that such services are not 
available to the individual under the State's approved title XIX plan.

[38 FR 26379, Sept. 20, 1973, as amended at 38 FR 32912, Nov. 29, 1973]



PART 234_FINANCIAL ASSISTANCE TO INDIVIDUALS--Table of Contents



Sec.
234.11 Assistance in the form of money payments.
234.60 Protective, vendor, and two-party payments for dependent 
          children.
234.70 Protective payments for the aged, blind, or disabled.
234.75 Rent payments to public housing agencies.
234.120 Federal financial participation.
234.130 Assistance in the form of institutional services in intermediate 
          care facilities.

    Authority: 42 U.S.C. 602, 603, 606, and 1302.



Sec.234.11  Assistance in the form of money payments.

    (a) Federal financial participation is available in money payments 
made under a State plan under title I, IV-A, X, XIV, or XVI of the 
Social Security Act to eligible families and individuals. Money payments 
are payments in cash, checks, or warrants immediately redeemable at par, 
made to the grantee or his legal representative with no restrictions 
imposed by the agency on the use of funds by the individual.
    (b) [Reserved]

[36 FR 22238, Nov. 23, 1971, as amended at 51 FR 9206, Mar. 18, 1986]



Sec.234.60  Protective, vendor and two-party payments for dependent 
children.

    (a) State plan requirements. (1) If a State plan for AFDC under 
title IV-A of the Social Security Act provides for protective, vendor 
and two-party payments for cases other than failure to participate in 
the Job Opportunities and Basic Skills Training (JOBS) Program under 
Sec.250.34(d), or failure by the caretaker relative to meet the 
eligibility requirements of Sec.232.11, Sec.232.12, or Sec.232.13 
of this chapter. It must meet the requirements in paragraphs (a) (2) 
through (11) of this section. In addition, the plan may provide for 
protective, vendor, and two-party payments

[[Page 106]]

at the request of recipients as provided in paragraph (a)(14) of this 
section.
    (2)(i) Methods will be in effect to identify children whose 
relatives have demonstrated such an inability to manage funds that 
payments to the relative have not been or are not currently used in the 
best interest of the child. This means that the relative has misused 
funds to such an extent that allowing him or her to manage the AFDC 
grant is a threat to the health or safety of the child.
    (ii) States will establish criteria to determine if mismanagement 
exists. Under this provision, States may elect to use as one criterion a 
presumption of mismanagement based on a recipient's nonpayment of rent.
    (iii) Under State agency procedures, the recipient shall be notified 
whenever a creditor requests a protective, vendor, or two-party payment 
for mismangement on the basis of non-payment of bills.
    (iv) The recipient shall be notified by the agency of a decision not 
to use a protective, vendor, or two-party payment if such payment has 
been requested by a creditor.
    (v) A statement of the specific reasons that demonstrate the need 
for making protective, vendor, and two-party payments must be placed in 
the file of the child involved.
    (3) Criteria will be established to identify the circumstances under 
which protective, vendor, or two-party payments will be made in whole or 
in part to:
    (i) Another individual who is interested in or concerned with the 
welfare of the child or relative; or
    (ii) A person or persons furnishing food, living accommodations or 
other goods, services, or items to or for the child, relative, or 
essential person.
    (4) Procedures will be established for making protective, vendor, or 
two-party payments. Under this provision, part of the payment may be 
made to the family and part may be made to a protective payee or to a 
vendor, or part may be made in the form of two-party payments, i.e., 
checks which are drawn jointly to the order of the recipient and the 
person furnishing goods, services, or items and negotiable only upon 
endorsement by both the recipient and the other person.
    (5)-(6) [Reserved]
    (7) Standards will be established for selection:
    (i) Of protective payees, who are interested in or concerned with 
the recepient's welfare, to act for the recipient in receiving and 
managing assistance, with the selection of a protective payee being made 
by the recipient, or with his participation and consent, to the extent 
possible. If it is in the best interest of the recipient for a staff 
member of a private agency, of the public welfare department, or of any 
other appropriate organization to serve as a protective payee, such 
selection will be made preferably from the staff of an agency or that 
part of the agency providing protective services for families; and the 
public welfare department will employ such additional staff as may be 
necessary to provide protective payees. The selection will not include: 
The executive head of the agency administering public assistance; the 
person determining financial eligibility for the family; special 
investigative or resource staff; or staff handling fiscal processes 
related to the recipient; or landlords, grocers, or other vendors of 
goods, services, or items dealing directly with the recipient.
    (ii) Of such persons providing goods, services, or items with the 
selection of such persons being made by the recipient, or with his 
participation and consent, to the extent possible.
    (8) The agency will undertake and continue special efforts to 
develop greater ability on the part of the relative to manage funds in 
such manner as to protect the welfare of the family.
    (9) Review will be made as frequently as indicated by the 
individual's circumstances, and at least once every 12 months, of:
    (i) The need for protective, vendor, and two-party payments; and
    (ii) The way in which a protective payee's responsibilities are 
carried out.
    (10) Provision will be made for termination of protective payments, 
or payments to a person furnishing goods or services, as follows:
    (i) When relatives are considered able to manage funds in the best 
interest of

[[Page 107]]

the child, there will be a return to money payment status.
    (ii) When it appears that need for protective, vendor, or two-party 
payments will continue or is likely to continue beyond 2 years because 
all efforts have not resulted in sufficiently improved use of assistance 
in behalf of the child, judicial appointment of a guardian or other 
legal representative will be sought and such payments will terminate 
when the appointment has been made.
    (11)(i) Opportunity for a fair hearing pursuant to Sec.205.10 will 
be given to any individual claiming assistance in relation to the 
determination:
    (A) That a protective, vendor, and two-party payment should be made 
or continued.
    (B) As to the payee selected.
    (ii) In cases where the agency has elected the option to presume 
mismanagement based on a recipient's nonpayment of rent pursuant to 
paragraph (a)(2)(ii), the agency may also elect the option to provide 
the opportunity for a fair hearing pursuant to Sec.205.10 either 
before or after the manner or form of payment has been changed for these 
cases.
    (12) In cases where an individual is sanctioned for failure to 
participate in WIN, employment search, CWEP, or JOBS, the State plan 
must provide that when protective or vendor payments are made pursuant 
to Sec. Sec.224.52(a)(1), 238.22, 240.22(a)(1), 240.22(b)(1) and 
250.34(d) of this chapter, only paragraphs (a)(7), (a)(9)(ii), and 
(a)(11)(i) and (ii) of this section will be applicable. Under these 
circumstances, when protective payments are made, the entire payment 
will be made to the protective payee; and when vendor payments are made, 
at least the greater part of the payment will be through this method. 
However, if after making all reasonable efforts, the State agency is 
unable to locate an appropriate individual to whom protective payments 
can be made, the State may continue to make payments on behalf of the 
remaining members of the assistance unit to the sanctioned caretaker 
relative. Provision will be made for termination of protective payments, 
or payments to a person furnishing goods or services, with return to 
money payment status when adults who refused training, employment, or 
participation in employment search without good cause either accept 
training, employment, or employment search or agree to do so. In the 
case of continuing refusal of the relative to participate, payments will 
be continued for the children in the home in accordance with this 
paragraph.
    (13) For cases in which a caretaker relative fails to meet the 
eligibility requirements of Sec.232.11, Sec.232.12, or Sec.232.13 
of this chapter by failing to assign rights to support or cooperate in 
determining paternity, securing support, or identifying and providing 
information to assist the State in pursuing third party liability for 
medical services, the State plan must provide that only the requirements 
of paragraphs (a)(7) and (9)(ii) of this section will be applicable. For 
such cases, the entire amount of the assistance payment will be in the 
form of protective or vendor payments. These protective or vendor 
payments will be terminated, with return to money payment status, only 
upon compliance by the caretaker relative with the eligibility 
requirements of Sec. Sec.232.11, 232.12, and 232.13 of this chapter. 
However, if after making reasonable efforts, the State agency is unable 
to locate an appropriate individual to whom protective payments can be 
made, the State may continue to make payments to the sanctioned 
caretaker relative on behalf of the remaining members of the assistance 
unit.
    (14) If the plan provides for protective, vendor, or two-party 
payments:
    (i) The State may use any combination of protective, vendor, or two-
party payments (at the request of the recipient),
    (ii) The request must be in writing from the recipient to whom 
payment would otherwise be made in an unrestricted manner and must be 
recorded or retained in the case file, and
    (iii) The restriction will be discontinued promptly upon the written 
request of the recipient who initiated it.
    (b) Federal financial participation. Federal financial participation 
is available in payments which otherwise qualify as money payments with 
respect to an eligible dependent child, but which are made as 
protective, vendor or two-

[[Page 108]]

party payments under this section. Payrolls must identify protective, 
vendor, or two-party payments either by use of a separate payroll for 
these cases or by using a special identifying code or symbol on the 
regular payroll. The payment must be supported by an authorization of 
award through amendment of an existing authorization document for each 
case or by preparation of a separate authorization document. In either 
instance, the authorization document must be a formal agency record 
signed by a responsible agency official, showing the name of each 
eligible child and relative, the amount of payment authorized and the 
name of the protective, vendor or two-party payee.

[37 FR 9025, May 4, 1972, as amended at 37 FR 12202, June 20, 1972; 45 
FR 20480, Mar. 28, 1980; 47 FR 5682, Feb. 5, 1982; 49 FR 35603, Sept. 
10, 1984; 51 FR 9206, Mar. 18, 1986; 54 FR 42244, Oct. 13, 1989; 56 FR 
8932, Mar. 4, 1991; 57 FR 30160, July 8, 1992]



Sec.234.70  Protective payments for the aged, blind, or disabled.

    (a) State plan requirements. If a State plan for OAA, AB, APTD, or 
AABD under the Social Security Act includes provisions for protective 
payments, the State plan must provide that:
    (1) Methods will be in effect to determine that needy individuals 
have, by reason of physical or mental condition, such inability to 
manage funds that making payment to them would be contrary to their 
welfare; such methods to include medical or psychological evaluations, 
or other reports of physical or mental conditions including observation 
of gross conditions such as extensive paralysis, serious mental 
retardation, continued disorientation, or severe memory loss.
    (2) There will be responsibility to assure referral to social 
services for appropriate action to protect recipients where problems and 
needs for services and care of the recipients are manifestly beyond the 
ability of the protective payee to handle. (See paragraph (a)(5) of this 
section.)
    (3) Standards will be established for selection of protective payees 
who are interested in or concerned with the individual's welfare, to act 
for the individual in receiving and managing assistance, with the 
selection of a protective payee being made by the individual, or with 
his participation and consent, to the extent possible. If it is in the 
best interest of the individual for a staff member of a private agency, 
of the public welfare department, or of any other appropriate 
organization to serve as a protective payee, such selection will be made 
preferably from the staff of an agency or that part of the agency 
providing protective services for families or for the disabled or aged 
group of which the recipient is a member; and such staff of the public 
welfare department will be utilized only to the extent that the 
department has adequate staff for this purpose. The selection will not 
include: The executive head of the agency administering public 
assistance; the person determining financial eligibility for the 
individual; special investigative or resource staff, or staff handling 
fiscal processes related to the recipient; or landlords, grocers, or 
other vendors of goods or services dealing directly with the recipient--
such as the proprietor, administrator or fiscal agent of a nursing home, 
or social care, medical or nonmedical institution, except for the 
superintendent of a public institution for mental diseases or a public 
institution for the mentally retarded, or the designee of such 
superintendent, when no other suitable protective payee can be found and 
there are appropriate staff available to assist the superintendent in 
carrying out the protective payment function.
    (4) Protective payments will be made only in cases in which the 
assistance payment, with other available income, meets all the needs of 
the individual, using the State's standards for assistance for the 
pertinent program, not standards for protective payment cases only.
    (5) The agency will undertake and continue special efforts to 
protect the welfare of such individuals and to improve, to the extent 
possible, their capacity for self-care and to manage funds.
    (6) Reconsideration of the need for protective payments and the way 
in which a protective payee's responsibilities are carried out will be 
as frequent

[[Page 109]]

as indicated by the individual's circumstances and at least every 6 
months.
    (7) Provision will be made for appropriate termination of protective 
payments as follows:
    (i) When individuals are considered able to manage funds in their 
best interest, there will be a return to money payment status.
    (ii) When a judicial appointment of a guardian or other legal 
representative appears to serve the best interest of the individual, 
such appointment will be sought and the protective payment will 
terminate when the appointment has been made.
    (8) Opportunity for a fair hearing will be given to any individual 
claiming assistance in relation to the determination that a protective 
payment should be made or continued, and in relation to the payee 
selected.
    (b) Federal financial participation. Federal financial participation 
is available for payments, which otherwise qualify as money payments 
with respect to a needy individual, but which are made to a protective 
payee under paragraph (a)(3) of this section. The payment must be 
supported by an authorization of award through amendment of an existing 
authorization document for such case or by preparation of a separate 
authorization document. In either instance, the authorization document 
must be a formal agency record signed by a responsible agency official 
showing the name of each eligible individual, the amount of payment 
authorized and the name of the protective payee. Payrolls must identify 
protective payment cases either by use of a separate payroll for these 
cases or by using a special identifying code or symbol on the regular 
payroll.

[34 FR 1323, Jan. 28, 1969]



Sec.234.75  Rent payments to public housing agencies.

    At the option of a State, if its plan approved under title I, X, 
XIV, or XVI of the Social Security Act so provides, Federal financial 
participation under such title is available in rent payments made 
directly to a public housing agency on behalf of a recipient or a group 
or groups of recipients of OAA, AB, APTD, or AABD. Such Federal 
financial participation is available in rent payments only to the extent 
that they do not exceed the amount included for rent under the State's 
standard of assistance or the amount of rent due under applicable law, 
whichever is less.

[38 FR 26380, Sept. 20, 1973]



Sec.234.120  Federal financial participation.

    Federal financial participation is available in assistance payments 
made under a State plan under title I, IV-A, X, XIV, or XVI of the 
Social Security Act to any family or individual for periods beginning 
with the month in which they meet all eligibility conditions under the 
plan and in which an application has been received by the agency. Such 
assistance payments include:
    (a) Money payments (titles I, IV-A, X, XIV, and XVI, see Sec.
234.11 of this chapter);
    (b) Protective and vendor payments for dependent children (title IV-
A, see Sec.234.60 of this chapter);
    (c) Protective payments for the aged, blind, or disabled (titles I, 
X, XIV, and XVI, see Sec.234.70 of this chapter);
    (d) AFDC foster care payments (title IV-A, see Sec.233.110 of this 
chapter);
    (e) Vendor payments for institutional services in intermediate care 
facilities (titles I, X, XIV, and XVI), but only in a State that did 
not, as of January 1, 1972, have an approved plan under title XIX of the 
act, and only until such State has such a plan in effect (see Sec.
234.130 of this chapter);
    (f) Emergency assistance to needy families with children (title IV-
A, see Sec.233.120 of this chapter);
    (g) Vendor payments for home repairs (titles I, IV-A, X, XIV, and 
XVI, see Sec.233.20(c) of this chapter); and
    (h) Rent payments to public housing agencies (titles I, X, XIV, and 
XVI, see Sec.234.75 of this chapter).

[38 FR 26380, Sept. 20, 1973]



Sec.234.130  Assistance in the form of institutional services in 
intermediate care facilities.

    (a) Applicability and State plan requirements. A State which, on 
January 1, 1972, did not have in effect a State plan approved under 
title XIX of the Social Security Act may provide assistance

[[Page 110]]

under title I, X, XIV, or XVI of the Act in the form of institutional 
services in intermediate care facilities as authorized under title XI of 
the Act, until the first day of the first month (occurring after January 
1, 1972) that such State does have in effect a State plan approved under 
title XIX of the Act. In any State which may provide such assistance as 
authorized under title XI of the Act, a State plan under title I, X, 
XIV, or XVI of the Act which includes such assistance must:
    (1) Provide that such benefits will be provided only to individuals 
who:
    (i) Are entitled (or would, if not receiving institutional services 
in intermediate care facilities, be entitled) to receive assistance, 
under the State plan, in the form of money payments; and
    (ii) Because of their physical or mental condition (or both) require 
living accommodations and care which, as a practical matter, can be made 
available to them only through institutional facilities; and
    (iii) Do not have such an illness, disease, injury, or other 
condition as to require the degree of care and treatment which a 
hospital or skilled nursing home (as that term is employed in title XIX) 
is designed to provide.
    (2) Provide that, in determining financial eligibility for benefits 
in the form of institutional services in intermediate care facilities, 
available income will be applied, first for personal and incidental 
needs including clothing, and that any remaining income will be applied 
to the costs of care in the intermediate care facility.
    (3) Provide methods of administration that include:
    (i) Placing of responsibility, within the State agency, with one or 
more staff members with sufficient staff time exclusive of other duties 
to direct and guide the agency's activities with respect to services in 
intermediate care facilities, including arrangements for consultation 
and working relationships with the State standard-setting authority and 
State agencies responsible for mental health and for mental retardation;
    (ii) In relation to authorization of benefits, provisions for 
evaluation by a physician of the individual's physical and mental 
condition and the kinds and amounts of care he requires; evaluation by 
the agency worker of the resources available in the home, family and 
community; and participation by the recipient in determining where he is 
to receive care, except that in the case of services being provided in a 
Christian Science Sanatorium, certification by a qualified Christian 
Science practitioner that the individual meets the requirements 
specified in paragraphs (a)(1) (ii) and (iii) of this section may be 
substituted for the evaluation by a physician;
    (iii) Provisions for redetermination at least semiannually that the 
individual is properly a recipient of intermediate care.
    (4) Provide for regular, periodic review and reevaluation no less 
often than annually (by or on behalf of the State agency administering 
the plan and in addition to the activities described in paragraph (a)(3) 
of this section) of recipients in intermediate care facilities to 
determine whether their current physical and mental conditions are such 
as to indicate continued placement in the intermediate care facility, 
whether the services actually rendered are adequate and responsive to 
the conditions and needs identified, and whether a change to other 
living arrangements, or other institutional facilities (including 
skilled nursing homes) is indicated. Such reviews must be followed by 
appropriate action on the part of the State agency administering the 
plan. They must be conducted by or under the supervision of a physician 
with participation by a registered professional nurse and other 
appropriate medical and social service personnel not employed by or 
having a financial interest in the facility, except that, in the case of 
recipients who have elected care in a Christian Science sanatorium, 
review by a physician or other medical personnel is not required.
    (5) Provide that all services with respect to social and related 
problems which the agency makes available to applicants and recipients 
of assistance under the plan will be equally available to all applicants 
for and recipients of benefits in the form of institutional services in 
intermediate care facilities.

[[Page 111]]

    (6) Specify the types of facilities, however described, that will 
qualify under the State plan for participation as intermediate care 
facilities, and provide for availability to the Department of Health and 
Human Services, upon request of (i) copies of the State's requirements 
for licensing of such facilities, (ii) any requirements imposed by the 
State in addition to licensing and to definition of intermediate care 
facilities, and (iii) a description of the manner in which such 
requirements are applied and enforced including copies of agreements or 
contracts, if any, with the licensing authority for this purpose.
    (7) Provide for and describe methods of determining amounts of 
vendor payments to intermediate care facilities which systematically 
relate amounts of the payment to the kinds, levels, and quantities of 
services provided to the recipients by the institutions and to the cost 
of providing such services.
    (b) Other requirements. Except when inconsistent with purposes of 
section 1121 of the Act or contrary to any provision therein, any 
modification, pursuant thereto, of an approved State plan shall be 
subject to the same conditions, limitations, rights, and obligations as 
obtained with respect to such approved State plan. Included specifically 
among such conditions and limitations are the provisions of titles I, X, 
XIV, and XVI relating to payments to or care in behalf of any individual 
who is an inmate of a public institution (except as a patient in a 
medical institution).
    (c) Federal financial participation. (1) Federal financial 
participation is available under section 1121 of the Act in vendor 
payments for institutional services provided to individuals who are 
eligible under the respective State plan and who are residents in 
intermediate care facilities. The rate of participation is the same as 
for money payments under the respective title or, if the State so 
elects, at the rate of the Federal medical assistance percentage as 
defined in section 1905(b) of the Act. Such Federal financial 
participation ends on the date specified in paragraph (c)(2) of this 
section, or 12 months after the date when the State first has in effect 
a State plan approved under title XIX of the Act, whichever is later.
    (2) For the period from January 1, 1972, to the date on which a 
determination is made under the provisions of 42 CFR 449.33 as to a 
facility's eligibility to receive payments for intermediate care 
facility services under the medical assistance program, title XIX of the 
Act, but not later than 12 months following the effective date of these 
regulations, Federal financial participation in payments for such 
services under title XIX is governed by the provisions of this section, 
applied to State plans under title XIX.
    (d) Definition of terms. For purposes of section 1121 of the Social 
Security Act, the following definitions apply:
    (1) Institutional services. The term, institutional services, means 
those items and services provided by or under the auspices of the 
institution which contribute to the health, comfort, and well-being of 
the residents thereof; except that the term, institutional services, 
does not include allowances for clothing and incidental expenses for 
which money payments to recipients are made under the plan, nor does it 
include medical care, in a form identifiable as such and separable from 
the routine services of the facility, for which vendor payments may be 
made under a State plan approved under title XIX.
    (2) Distinct part of an institution. A distinct part of an 
institution is defined as a part which meets the definition of an 
intermediate care facility and the following conditions:
    (i) Identifiable unit. The distinct part of the institution is an 
entire unit such as an entire ward or contiguous wards, wing, floor, or 
building. It consists of all beds and related facilities in the unit and 
houses all residents, except as hereafter provided, for whom payment is 
being made for intermediate care. It is clearly identified and is 
approved, in writing, by the agency applying the definition of 
intermediate care facility herein.
    (ii) Staff. Appropriate personnel are assigned and work regularly in 
the unit. Immediate supervision of staff is provided in the unit at all 
time by qualified personnel.

[[Page 112]]

    (iii) Shared facilities and services. The distinct part may share 
such central services and facilities as management services, building 
maintenance and laundry, with other units.
    (iv) Transfers between distinct parts. In a facility having distinct 
parts devoted to skilled nursing home care and intermediate care, which 
facility has been determined by the appropriate State agency to be 
organized and staffed to provide services according to individual needs 
throughout the institution, nothing herein shall be construed to require 
transfer of an individual within the institution when in the opinion of 
the individual's physician such transfer might be harmful to the 
physical or mental health of the individual.
    (3) Intermediate care facility. An intermediate care facility is an 
institution or a distinct part thereof which:
    (i) Is licensed, under State law to provide the residents thereof, 
on a regular basis, the range or level of care and services as defined 
in paragraph (d)(4) of this section, which is suitable to the needs of 
individuals who:
    (a) Because of their physical or mental limitations or both, require 
living accommodations and care which, as a practical matter, can be made 
available to them only through institutional facilities, and
    (b) Do not have such an illness, disease, injury, or other condition 
as to require the degree of care and treatment which a hospital or 
skilled nursing home (as that term is employed in title XIX) is designed 
to provide:
    (ii) Does not provide the degree of care required to be provided by 
a skilled nursing home furnishing services under a State plan approved 
under title XIX:
    (iii) Meets such standards of safety and sanitation as are 
applicable to nursing homes under State law; and
    (iv) Regularly provides a level of care and service beyond board and 
room.

The term intermediate care facility also includes a Christian Science 
sanatorium operated, or listed and certified, by the First Church of 
Christ, Scientist, Boston, Mass.
    (4) Range or level of care and services. The range or level of care 
and services suitable to the needs of individuals described in paragraph 
(d)(3)(i) of this section is to be defined by the State agency. The 
following items are recommended as a minimum.
    (i) Admission, transfer, and discharge of residents. The admission, 
transfer, and discharge of residents of the facility are conducted in 
accordance with written policies of the institution that include at 
least the following provisions.
    (a) Only those persons are accepted into the facility whose needs 
can be met within the accommodations and services the facility provides;
    (b) As changes occur in their physical or mental condition, 
necessitating service or care not regularly provided by the facility, 
residents are transferred promptly to hospitals, skilled nursing homes, 
or other appropriate facilities;
    (c) The resident, his next of kin, and the responsible agency if 
any, are consulted in advance of the discharge of any resident, and 
casework services or other means are utilized to assure that adequate 
arrangements exist for meeting his needs through other resources.
    (ii) Personal care and protective services. The types and amounts of 
protection and personal service needed by each resident of the facility 
are a matter of record and are known to all staff members having 
personal contact with the resident. At least the following services are 
provided.
    (a) There is, at all times, a responsible staff member actively on 
duty in the facility, and immediately accessible to all residents, to 
whom residents can report injuries, symptoms of illness, or emergencies, 
and who is immediately responsible for assuring that appropriate action 
is taken promptly.
    (b) Assistance is provided, as needed by individual residents, with 
routine activities of daily living including such services as help in 
bathing, dressing, grooming, and management of personal affairs such as 
shopping.
    (c) Continuous supervision is provided for residents whose mental 
condition is such that their personal safety requires such supervision.
    (iii) Social services. Services to assist residents in dealing with 
social and related problems are available to all residents through one 
or more caseworkers on the staff of the facility; and/or, in

[[Page 113]]

the case of recipients of assistance, through caseworkers on the staff 
of the assistance agency; or through other arrangements.
    (iv) Activities. Activities are regularly available for all 
residents, including social and recreational activities involving active 
participation by the residents, entertainment of appropriate frequency 
and character, and opportunities for participation in community 
activities as possible and appropriate.
    (v) Food service. At least three meals a day, constituting a 
nutritionally adequate diet, are served in one or more dining areas 
separate from sleeping quarters, and tray service is provided for 
residents temporarily unable to leave their rooms.
    (vi) Special diets. If the facility accepts or retains individuals 
in need of medically prescribed special diets, the menus for such diets 
are planned by a professionally qualified dietitian, or are reviewed and 
approved by the attending physician, and the facility provides 
supervision of the preparation and serving of the meals and their 
acceptance by the resident.
    (vii) Health services. Whether provided by the facility or from 
other sources, at least the following services are available to all 
residents:
    (a) Immediate supervision of the facility's health services by a 
registered professional nurse or a licensed practical nurse employed 
full-time in the facility and on duty during the day shift except that, 
where the State recognizes and describes two or more distinct levels of 
institutions as intermediate care facilities such personnel are not 
required in any level that serves only individuals who have been 
determined by their physicians not to be in need of such supervision and 
whose need for such supervision is reviewed as indicated, and at least 
quarterly;
    (b) Continuing supervision by a physician who sees the resident as 
needed and in no case, less often than quarterly;
    (c) Under direction by the resident's physician and (where 
applicable in accordance with (d)(4)(vii)(a) of this section), general 
supervision by the nurse in charge of the facility's health services, 
guidance, and assistance for each resident in carrying out his personal 
health program to assure that preventive measures, treatments, and 
medications prescribed by the physician are properly carried out and 
recorded;
    (d) Arrangements for services of a physician in the event of an 
emergency when the resident's own physician cannot be reached;
    (e) In the presence of minor illness and for temporary periods, 
bedside care under direction of the resident's physician including 
nursing service provided by, or supervised by, a registered professional 
nurse or a licensed practical nurse;
    (f) An individual health record for each resident including;
    (1) The name, address, and telephone number of his physician;
    (2) A record of the physician's findings and recommendations in the 
preadmission evaluation of the individual's condition and in subsequent 
reevaluations and all orders and recommendations of the physician for 
care of the resident;
    (3) All symptoms and other indications of illness or injury brought 
to the attention of the staff by the resident, or from other sources, 
including the date, time, and action taken regarding each.
    (viii) Living accommodations. Space and furnishings provide each 
resident clean, comfortable, and reasonably private living 
accommodations with no more than four residents occupying a room, with 
individual storage facilities for clothing and personal articles, and 
with lounge, recreation and dining areas provided apart from sleeping 
quarters.
    (ix) Administration and management. The direction and management of 
the facility are such as to assure that the services required by the 
residents are so organized and administered that they are, in fact, 
available to the residents on a regular basis and that this is 
accomplished efficiently and with consideration for the objective of 
providing necessary care within a homelike atmosphere. Staff are 
employed by the facility sufficient in number and

[[Page 114]]

competence, as determined by the appropriate State agency, to meet the 
requirements of the residents.

[35 FR 8990, June 10, 1970, as amended at 39 FR 2220, Jan. 17, 1974; 39 
FR 8918, Mar. 7, 1974]



PART 235_ADMINISTRATION OF FINANCIAL ASSISTANCE PROGRAMS--
Table of Contents



Sec.
235.40 [Reserved]
235.50 State plan requirements for methods of personnel administration.
235.60 Federal financial participation (FFP) for State and local 
          training.
235.61 Definition of terms.
235.62 State plan requirements for training programs.
235.63 Conditions for FFP.
235.64 FFP rates, and activities and costs matchable as training 
          expenditures.
235.65 Activities and costs not matchable as training expenditures.
235.66 Sources of State funds.
235.70 Prompt notice to child support or Medicaid agency.
235.110 Fraud.

    Authority: 42 U.S.C. 603, 616, and 1302.



Sec.235.40  [Reserved]



Sec.235.50  State plan requirements for methods of personnel 
administration.

    (a) A State plan for financial assistance programs under title I, 
IV-A, X, XIV, or XVI (AABD) of the Social Security Act must provide that 
methods of personnel administration will be established and maintained 
in public agencies administering or supervising the administration of 
the program in conformity with the Standards for a Merit System of 
Personnel Administration, 5 CFR part 900, subpart F, which incorporates 
the Intergovernmental Personnel Act Merit Principles (Pub. L. 91-648, 
section 2, 84 Stat. 1909), prescribed by the Office of Personnel 
Management pursuant to section 208 of the Intergovernmental Personnel 
Act of 1970 as amended.

[45 FR 25398, Apr. 15, 1980]



Sec.235.60  Federal financial participation (FFP) for State and local
training.

    Sections 235.61 through 235.66 contain (a) State plan requirements 
for training programs and (b) conditions for Federal financial 
participation (FFP) for training costs under the State plans. These 
sections apply to the State plans for the financial assistance programs 
in all jurisdictions under title I, IV-A, X, XIV, or XVI (AABD) of the 
Social Security Act.

[45 FR 29833, May 6, 1980]



Sec.235.61  Definition of terms.

    For purposes of Sec. Sec.235.60-235.66:
    Act means the Social Security Act, as amended.
    A grant to an educational institution means payments to an 
educational institution for services rendered under a time limited 
agreement between the State agency and the eligible educational 
institution which provides for the training of State or local agency 
employees or persons preparing for employment with the State or local 
agency.
    A training program is the method through which the State agency 
carries out a plan of educational and training activities to improve the 
operation of its programs.
    (a) Initial in-service training means a period of intensive, task-
oriented training to prepare new employees to assume job 
responsibilities.
    (b) Continuing training means an on-going program of training 
planned to enable employees to: (1) Reinforce their basic knowledge and 
develop the required skills for the performance of specific functions, 
and (2) acquire additional knowledge and skill to meet changes such as 
enactment of new legislation, development of new policies, or shifts in 
program emphasis.
    (c) Full-time training means training that requires employees to be 
relieved of all responsibility for performance of current work to 
participate in a training program.
    (d) Part-time training means training that allows employees to 
continue full time in their jobs or requires only partial reduction of 
work activities to participate in a training program outside of the 
State or local agency.
    (e) Long-term training means training for eight consecutive work 
weeks or longer.

[[Page 115]]

    (f) Short-term training means training for less than eight 
consecutive work weeks.
    FFP or Federal financial participation means the Federal 
government's share of expenditures made by a State or local agency under 
a training program.
    Fringe benefits means the employer's share of premiums for 
industrial compensation, employee's retirement, unemployment 
compensation, health insurance, and similar expenses.
    Persons preparing for employment means individuals who are not yet 
employed by the State or local agency, but who have received financial 
assistance from the State agency for training, and have made a legally 
binding commitment with the State or local agency for future employment 
under the conditions of these regulations.
    Stipend means the basic living allowance paid to a student.

[45 FR 29833, May 6, 1980]



Sec.235.62  State plan requirements for training programs.

    A State plan under title I, IV-A, X, XIV, or XVI (AABD) of the Act 
must provide for a training program for agency personnel. The training 
program must:
    (a) Include initial in-service training for newly appointed staff, 
and continuing agency training opportunities to improve the operation of 
the program. The training program may also include short-term and long-
term training at educational institutions through grants to institutions 
or by direct financial assistance to students enrolled in institutions 
who are agency employees or persons preparing for employment with the 
State or local agency;
    (b) Be related to job duties performed or to be performed by the 
persons trained, and be consistent with the program objectives of the 
agency; and
    (c) Be described in an annual training plan prepared prior to the 
beginning of the fiscal year. Copies of the training plan shall be made 
available upon request to the Regional Office of Family Assistance for 
review by the Federal staff.

[45 FR 29833, May 6, 1980, as amended at 46 FR 29264, June 1, 1981]



Sec.235.63  Conditions for FFP.

    (a) Who may be trained. FFP is available only for training provided 
personnel employed in all classes of positions, volunteers, and persons 
preparing for employment by the State or local agency administering the 
program.
    (b) When FFP is available. FFP is available for personnel employed 
and persons preparing for employment by the State or local agency 
provided the following conditions are met, and with the following 
limitations:
    (1) Employees in full-time, long-term training make a commitment to 
work in the agency for a period of time equal to the period for which 
financial assistance is granted. A State agency may exempt an employee 
from fulfilling this commitment only if failure to continue in 
employment is due to death, disability, employment in a financial 
assistance program in a public assistance agency in another State, or 
other emergent circumstances determined by the single State agency head 
to be valid for exemption;
    (2) An employee retains his or her rights and benefits in the agency 
while on full-time, long-term training leave;
    (3) Persons preparing for employment are selected by the State 
agency and accepted by the school;
    (4) Persons preparing for employment are pursuing educational 
programs approved by the State agency;
    (5) Persons preparing for employment are committed to work for State 
or local agency for a period of time at least equal to the period for 
which financial assistance is granted if employment is offered within 2 
months after training is completed;
    (6) The State or local agency offers the individual preparing for 
employment a job upon completion of training unless precluded by merit 
system requirements, legislative budget cuts, position freezes, or other 
circumstances beyond the agency's control; and if unable to offer 
employment, releases the individual from his or her commitment;
    (7) The State agency keeps a record of the employment of persons 
trained. If the persons are not employed by the State or local agency, 
the record specifies the reason for non-employment;

[[Page 116]]

    (8) The State agency evaluates the training programs; and
    (9) Any recoupment of funds by the State from trainees failing to 
fulfill their commitment under this section shall be treated as a refund 
and deducted from total training costs for the purpose of determining 
net costs for FFP.
    (c) Grants to educational institutions. FFP is available in payments 
for services rendered under grants to educational institutions provided 
all of the following conditions are met:
    (1) Grants are made for the purpose of developing, expanding, or 
improving training for personnel employed by the State or local agency 
or preparing for employment by the State or local agency administering 
the program. Grants are made for an educational program (curriculum 
development, classroom instruction, field instruction, or any 
combination of these) that is directly related to the agency's program. 
Grants are made for not more than 3 years, but may be renewed, subject 
to the conditions of this section;
    (2) Grants are made to educational institutions and programs that 
are accredited by the appropriate institutional accrediting body 
recognized by the U.S. Commissioner of Education. When a specialized 
program within the institution for which there is a specialized 
accrediting body is used, that program must be accredited by or have 
pre-accreditation status from that body. (Part 149 of this title 
explains the requirements and procedures for obtaining recognition as an 
accrediting agency or association. Lists of currently recognized 
accrediting bodies are published in the Federal Register periodically. 
See also Nationally Recognized Accrediting Agencies and Associations 
published by the Office of Education);
    (3) The State agency has written policies establishing conditions 
and procedures for such grants;
    (4) Each grant describes objectives in terms of how the educational 
program is related to the financial assistance programs and how it is 
designed to meet the State or local agency's manpower needs; and
    (5) An evaluation of the educational program funded by each grant is 
made no later than the close of the second year of the grant. The 
evaluation shall be conducted by representatives from the educational 
institution and the State agency to determine whether conditions and 
objectives described in the grant are being met. If the educational 
program does not meet these conditions and objectives, payment shall be 
terminated no later than the close of the second year of the grant.

[45 FR 29834, May 6, 1980]



Sec.235.64  FFP rates, and activities and costs matchable as training
expenditures.

    Under title I, IV-A, X, XIV, or XVI(AABD) of the Act, FFP is 
available at the rate of 50 percent for the following costs:
    (a) Salaries, fringe benefits, travel and per diem for:
    (1) Staff development personnel (including support staff) assigned 
full time to training functions and;
    (2) Staff development personnel assigned part time to training 
functions to the extent time is spent performing such functions.
    (b) For agency training sessions, FFP is available for:
    (1) Salaries, fringe benefits, travel and per diem for employees in 
initial in-service training of at least one week;
    (2) Travel and per diem for employees in agency training sessions 
away from the employee's work site, or in institutes, seminars or 
workshops related to the job and sponsored by professional 
organizations;
    (3) Salaries, fringe benefits, travel and per diem for experts 
outside the agency engaged to develop or conduct special programs; and
    (4) Costs of space, postage, teaching supplies, purchase or 
development of teaching material and equipment, and costs of maintaining 
and operating the agency library as an essential resource to the 
agency's training program.
    (c) For training and education outside of the agency, FFP is 
available for:
    (1) Salaries, fringe benefits, dependency allowance, travel, 
tuition, books, and educational supplies for employees

[[Page 117]]

in full-time, long-term training programs (with no assigned agency 
duties);
    (2) Salaries, fringe benefits, travel, tuition, books, and 
educational supplies for employees in full-time, short-term training 
programs of four or more consecutive work weeks;
    (3) Travel, per diem, tuition, books and educational supplies for 
employees in short-term training programs of less than four consecutive 
work weeks, or part-time training programs; and
    (4) Stipends, travel, tuition, books and educational supplies for 
persons preparing for employment with the State or local agency.
    (d) FFP is available for payments to educational institutions, as 
described in Sec.235.63(c) for salaries, fringe benefits, and travel 
of instructors, clerical assistance, teaching materials and equipment.

[45 FR 29834, May 6, 1980, as amended at 47 FR 5683, Feb. 5, 1982; 59 FR 
12861, Mar. 18, 1994]



Sec.235.65  Activities and costs not matchable as training
expenditures.

    FFP is not available for the following expenditures as training 
costs; however, the expenditures described in this section may be 
matched as administrative costs, if conditions for such matching are 
met:
    (a) Salaries of supervisors (day-to-day supervision of staff is not 
a training activity); and
    (b) Employment of students on a temporary basis, such as in the 
summertime.

[45 FR 29835, May 6, 1980]



Sec.235.66  Sources of State funds.

    (a) Public funds. Public funds may be considered as the State's 
share in claiming Federal reimbursement where the funds:
    (1) Are appropriated directly to the State or local agency, or 
transferred from another public agency (including Indian tribes) to the 
State or local agency and under its administrative control, or certified 
by the contributing public agency as representing expenditures eligible 
for FFP under Sec. Sec.235.60-235.66;
    (2) Are not used to match other Federal funds; and
    (3) Are not federal funds, or are Federal funds authorized by 
Federal law to be used to match other Federal funds.
    (b) Private funds. Funds donated from private sources may be 
considered as the State's share in claiming Federal reimbursement only 
where the funds are:
    (1) Transferred to the State or local agency and under its 
administrative control;
    (2) Donated without any restriction which would require their use 
for the training of a particular individual or at particular facilities 
or institutions; and
    (3) Do not revert to the donor's facility or use.

[45 FR 29835, May 6, 1980]



Sec.235.70  Prompt notice to child support or Medicaid agency.

    (a) A State plan under title IV-A of the Social Security Act must 
provide for prompt notice to the State or local child support agency 
designated pursuant to section 454(3) of the Social Security Act and to 
the State title XIX agency, as appropriate, whenever:
    (1) Aid is furnished to a child who has been deserted or abandoned 
by a parent, to the parent(s) with whom the child lives, or to a 
pregnant woman under Sec.233.90(c)(2)(iv), or
    (2) Any of the persons in paragraph (a)(1) of this section is deemed 
to be a recipient of aid under Sec.233.20(a)(3)(viii)(D).
    (b) In this section:
    (1) Aid means Aid to Families with Dependent Children, or AFDC 
Foster Care.
    (2) Prompt notice means written notice including a copy of the AFDC 
case record, or all relevant information as prescribed by the child 
support agency. Prompt notice must also include all relevant information 
as prescribed by the State medicaid agency for the pursuit of liable 
third parties. The prompt notice shall be provided within two working 
days of the furnishing of aid or the determination that an individual is 
a recipient under Sec.233.20(a)(3)(viii)(D). The title IV-A, IV-D and 
XIX agencies may agree to provide notice immediately upon the filing of 
an application for assistance.

[[Page 118]]

    (3) Furnish means the date on which cash is given to the family, a 
check or warrant is mailed to the family, a deposit is made in a bank 
for the family, or other similar circumstances in which an assistance 
payment is made to the family, or the date on which individuals are 
determined to be recipients under Sec.233.20(a)(3)(viii)(D).
    (4) A child who has been deserted or abandoned by a parent means any 
child whose eligibility for AFDC is based on continued absence of a 
parent from the home, and includes a child born out of wedlock without 
regard to whether the paternity of such child has been established.

[47 FR 5683, Feb. 5, 1982, as amended at 56 FR 8933, Mar. 4, 1991]



Sec.235.110  Fraud.

    State plan requirements: A State plan under title I, IV-A, X, XIV, 
or XVI of the Social Security Act must provide:
    (a) That the State agency will establish and maintain:
    (1) Methods and criteria for identifying situations in which a 
question of fraud in the program may exist, and
    (2) Procedures developed in cooperation with the State's legal 
authorities for referring to law enforcement officials situations in 
which there is valid reason to suspect that fraud has been practiced.

The definition of fraud for purposes of this section will be determined 
in accordance with State law.
    (b) For methods of investigation of situations which there is a 
question of fraud, that do not infringe on the legal rights of persons 
involved and are consistent with the principles recognized as affording 
due process of law.
    (c) For the designation of official position(s) responsible for 
referral of situations involving suspected fraud to the proper 
authorities.

[36 FR 3869, Feb. 27, 1971]



PART 237_FISCAL ADMINISTRATION OF FINANCIAL ASSISTANCE PROGRAMS--
Table of Contents



    Authority: Section 1102 of the Social Security Act (42 U.S.C. 1302); 
49 Stat. 647, as amended.



Sec.237.50  Recipient count, Federal financial participation.

    Pursuant to the formulas in sections 3, 403, 1003, 1118, 1121, 1403, 
and 1603 of the Social Security Act, it is necessary to identify 
expenditures that may be included in claims for Federal financial 
participation. The quarterly statement of expenditures and recoveries 
which is required for OAA, AFDC, AB, APTD, and AABD must include, as a 
part of the basis for computing the amount of Federal participation in 
such expenditures, the number of eligible recipients each month. 
However, where the State is making claims under section 1118 of the Act 
or under optional provisions for Federal sharing specified in such 
paragraphs no recipient count is involved. Vendor payments for medical 
care may not be considered if the State has a plan approved under title 
XIX of the Act. The procedures for determining recipient count are set 
forth in paragraphs (a), (b) and (c) of this section.
    (a) Adult assistance categories. For each adult assistance category, 
under title I, X, XIV, or XVI, of the Act, the recipient count for any 
month may include:

    (1) Eligible recipients who receive money payments or in whose 
behalf protective payments are made for that month:

Provided, That such payments are not excluded from Federal financial 
participation under the provisions of Sec.233.145(c) of this chapter; 
plus
    (2) Other eligible recipients in whose behalf payments are made for 
institutional services in intermediate care facilities for that month, 
but only in a State which does not have in effect a plan approved under 
Title XIX of the Act. (See Sec.233.145(b)(2) of this chapter.)

    (b) AFDC category. For the AFDC category under title IV, part A, of 
the Act:
    (1) The recipient count for any month includes:

[[Page 119]]

    (i) Eligible recipients in families which receive a money payment, 
plus
    (ii) Eligible recipients in families not otherwise counted on whose 
behalf protective or nonmedical vendor assistance payments are made for 
such month in accordance with the vendor payment provisions at Sec.
234.60, provided that such payments are not excluded from Federal 
financial participation under the provisions of Sec.233.145(c) of this 
chapter.
    (2) For the purpose of this provision, recipients means, if 
otherwise eligible:
    (i) Children;
    (ii) In a home with no parent who is the caretaker relative, an 
otherwise eligible relative of specified degree;
    (iii) Parent(s);
    (iv) The spouse of such parent, in the case of AFDC eligibility due 
to incapacity or unemployment;
    (3) As used in paragraph (b)(2)(iii) of this section, the term 
parent means the natural or adoptive parent, or the stepparent who is 
married to the child's natural or adoptive parent and is legally 
obligated to support the child under a State law of general 
applicability which requires stepparents to support stepchildren to the 
same extent that natural or adoptive parents are required to support 
their children; and the term ``spouse'' as used in paragraph (b)(2)(iv) 
of this section means an individual who is the husband or wife of the 
child's own parent, as defined above, by reason of a legal marriage as 
defined under State law.
    (4) Where there are two or more dependent children living in a place 
of residence with two other persons and each of such other persons is a 
relative who has responsibility for the care and control of one or more 
of the dependent children, there may be two AFDC families (assistance 
units), if neither family includes a parent or sibling included in the 
other family pursuant to Sec.206.10 (a)(1)(vii).
    (c) Essential person. An essential person or other ineligible person 
who is living with the eligible person may not be counted as a 
recipient.

[38 FR 32914, Nov. 29, 1973, as amended at 57 FR 30161, July 8, 1992]



PART 260_GENERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) 
PROVISIONS--Table of Contents



     Subpart A_What Provisions Generally Apply to the TANF Program?

Sec.
260.10 What does this part cover?
260.20 What is the purpose of the TANF program?
260.30 What definitions apply under the TANF regulations?
260.31 What does the term ``assistance'' mean?
260.32 What does the term ``WtW cash assistance'' mean?
260.33 When are expenditures on State or local tax credits allowable 
          expenditures for TANF-related purposes?
260.34 When do the Charitable Choice provisions of TANF apply?
260.35 What other Federal laws apply to TANF?
260.40 When are these provisions in effect?

Subpart B_What Special Provisions Apply to Victims of Domestic Violence?

260.50 What is the purpose of this subpart?
260.51 What definitions apply to this subpart?
260.52 What are the basic provisions of the Family Violence Option 
          (FVO)?
260.54 Do States have flexibility to grant good cause domestic violence 
          waivers?
260.55 What are the additional requirements for Federal recognition of 
          good cause domestic violence waivers?
260.58 What penalty relief is available to a State whose failure to meet 
          the work participation rates is attributable to providing 
          federally recognized good cause domestic violence waivers?
260.59 What penalty relief is available to a State that failed to comply 
          with the five-year limit on Federal assistance because it 
          provided federally recognized good cause domestic violence 
          waivers?

 Subpart C_What Special Provisions Apply to States That Were Operating 
                    Programs Under Approved Waivers?

260.70 What is the purpose of this subpart?
260.71 What definitions apply to this subpart?
260.72 What basic requirements must State demonstration components meet 
          for the purpose of determining if inconsistencies exist with 
          respect to work requirements or time limits?
260.73 How do existing welfare reform waivers affect the participation 
          rates and work rules?

[[Page 120]]

260.74 How do existing welfare reform waivers affect the application of 
          the Federal time-limit provisions?
260.75 If a State is claiming a waiver inconsistency for work 
          requirements or time limits, what must the Governor certify?
260.76 What special rules apply to States that are continuing 
          evaluations of their waiver demonstrations?

    Authority: 42 U.S.C. 601, 601 note, 603, 604, 606, 607, 608, 609, 
610, 611, 619, and 1308.

    Source: 64 FR 17878, Apr. 12, 1999, unless otherwise noted.



        Subpart A_What Rules Generally Apply to the TANF Program?



Sec.260.10  What does this part cover?

    This part includes regulatory provisions that generally apply to the 
Temporary Assistance for Needy Families (TANF) program.



Sec.260.20  What is the purpose of the TANF program?

    The TANF program has the following four purposes:
    (a) Provide assistance to needy families so that children may be 
cared for in their own homes or in the homes of relatives;
    (b) End the dependence of needy parents on government benefits by 
promoting job preparation, work, and marriage;
    (c) Prevent and reduce the incidence of out-of-wedlock pregnancies 
and establish annual numerical goals for preventing and reducing the 
incidence of these pregnancies; and
    (d) Encourage the formation and maintenance of two-parent families.



Sec.260.30  What definitions apply under the TANF regulations?

    The following definitions apply under parts 260 through 265 of this 
chapter:
    ACF means the Administration for Children and Families.
    Act means Social Security Act, unless otherwise specified.
    Adjusted State Family Assistance Grant, or adjusted SFAG, means the 
SFAG amount, minus any reductions for Tribal Family Assistance Grants 
paid to Tribal grantees on behalf of Indian families residing in the 
State and any transfers to the Social Services Block Grant or the Child 
Care and Development Block Grant.
    Administrative costs has the meaning specified at Sec.263.0(b) of 
this chapter.
    Adult means an individual who is not a ``minor child,'' as defined 
elsewhere in this section.
    AFDC means Aid to Families with Dependent Children.
    Aid to Families with Dependent Children means the welfare program in 
effect under title IV-A of prior law.
    Assistance has the meaning specified at Sec.260.31.
    Basic MOE means the expenditure of State funds that must be made in 
order to meet the MOE requirement at section 409(a)(7) of the Act.
    Cash assistance, when provided to participants in the Welfare-to-
Work program (WtW), has the meaning specified at Sec.260.32.
    CCDBG means the Child Care and Development Block Grant Act of 1990, 
as amended, 42 U.S.C. 9858 et seq.
    CCDF means the Child Care and Development Fund, or those child care 
programs and services funded either under section 418(a) of the Act or 
CCDBG.
    Commingled State TANF expenditures means expenditures of State funds 
that are made within the TANF program and commingled with Federal TANF 
funds.
    Contingency fund means Federal TANF funds available under section 
403(b) of the Act, and contingency funds means the Federal monies made 
available to States under that section. Neither term includes any State 
funds expended pursuant to section 403(b).
    Contingency fund MOE means the MOE expenditures that a State must 
make in order to meet the MOE requirements at sections 403(b)(6) and 
409(a)(10) of the Act and subpart B of part 264 of this chapter and 
retain contingency funds made available to the State. The only 
expenditures that qualify for Contingency Fund MOE are State TANF 
expenditures.
    Control group is a term relevant to continuation of a ``waiver'' and 
has the meaning specified at Sec.260.71.
    Countable State expenditures has the meaning specified at Sec.
264.0 of this chapter.

[[Page 121]]

    Discretionary fund of the CCDF refers to child care funds 
appropriated under the CCDBG.
    EA means Emergency Assistance.
    Eligible State means a State that, during the 27-month period ending 
with the close of the first quarter of the fiscal year, has submitted a 
TANF plan that we have determined is complete.
    Emergency assistance means the program option available to States 
under sections 403(a)(5) and 406(e) of prior law to provide short-term 
assistance to needy families with children.
    Expenditure means any amount of Federal TANF or State MOE funds that 
a State expends, spends, pays out, or disburses consistent with the 
requirements of parts 260 through 265 of this chapter. It may include 
expenditures on the refundable portions of State or local tax credits, 
if they are consistent with the provisions at Sec.260.33. It does not 
include any amounts that merely represent avoided costs or foregone 
revenue. Avoided costs include such items as contractor penalty payments 
for poor performance and purchase price discounts, rebates, and credits 
that a State receives. Foregone revenue includes State tax provisions--
such as waivers, deductions, exemptions, or nonrefundable tax credits--
that reduce a State's tax revenue.
    Experimental group is a term relevant to continuation of a 
``waiver'' and has the meaning specified at Sec.260.71.
    FAG has the meaning specified at Sec.264.0(b) of this chapter.
    Family Violence Option (or FVO) has the meaning specified at Sec.
260.51.
    FAMIS means the automated statewide management information system 
under sections 402(a)(30), 402(e), and 403 of prior law.
    Federal expenditures means expenditures by a State of Federal TANF 
funds.
    Federal TANF funds means all funds provided to the State under 
section 403 of the Act except WtW funds awarded under section 403(a)(5), 
including the SFAG, any bonuses, supplemental grants, or contingency 
funds.
    Federally recognized good cause domestic violence waiver has the 
meaning specified at Sec.260.51.
    Fiscal year means the 12-month period beginning on October 1 of the 
preceding calendar year and ending on September 30.
    FY means fiscal year.
    Good cause domestic violence waiver has the meaning specified at 
Sec.260.51.
    Governor means the Chief Executive Officer of the State. It thus 
includes the Governor of each of the 50 States and the Territories and 
the Mayor of the District of Columbia.
    IEVS means the Income and Eligibility Verification System operated 
pursuant to the provisions in section 1137 of the Act.
    Inconsistent is a term relevant to continuation of a ``waiver'' and 
has the meaning specified at Sec.260.71.
    Indian, Indian Tribe and Tribal Organization have the meaning given 
such terms by section 4 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b), except that the term ``Indian tribe'' 
means, with respect to the State of Alaska, only the Metlakatla Indian 
Community of the Annette Islands Reserve and the following Alaska Native 
regional nonprofit corporations:
    (1) Arctic Slope Native Association;
    (2) Kawerak, Inc.;
    (3) Maniilaq Association;
    (4) Association of Village Council Presidents;
    (5) Tanana Chiefs Council;
    (6) Cook Inlet Tribal Council;
    (7) Bristol Bay Native Association;
    (8) Aleutian and Pribilof Island Association;
    (9) Chugachmuit;
    (10) Tlingit Haida Central Council;
    (11) Kodiak Area Native Association; and
    (12) Copper River Native Association.
    Individual Development Account, or IDA, has the meaning specified at 
Sec.263.20 of this chapter.
    Job Opportunities and Basic Skills Training Program means the 
program under title IV-F of prior law to provide education, training and 
employment services to welfare recipients.
    JOBS means the Job Opportunities and Basic Skills Training Program.
    Minor child means an individual who:
    (1) Has not attained 18 years of age; or
    (2) Has not attained 19 years of age and is a full-time student in a 
secondary school (or in the equivalent

[[Page 122]]

level of vocational or technical training).
    MOE means maintenance-of-effort.
    Needy State is a term that pertains to the provisions on the 
Contingency Fund and the penalty for failure to meet participation 
rates. It means, for a month, a State where:
    (1)(i) The average rate of total unemployment (seasonally adjusted) 
for the most recent 3-month period for which data are published for all 
States equals or exceeds 6.5 percent; and
    (ii) The average rate of total unemployment (seasonally adjusted) 
for such 3-month period equals or exceeds 110 percent of the average 
rate for either (or both) of the corresponding 3-month periods in the 
two preceding calendar years; or
    (2) The Secretary of Agriculture has determined that the average 
number of individuals participating in the Food Stamp program in the 
State has grown at least 10 percent in the most recent 3-month period 
for which data are available.
    Noncustodial parent means a parent of a minor child who:
    (1) Lives in the State; and
    (2) Does not live in the same household as the minor child.
    Prior law means the provisions of title IV-A and IV-F of the Act in 
effect as of August 21, 1996. They include provisions related to Aid to 
Families with Dependent Children (or AFDC), Emergency Assistance (or 
EA), Job Opportunities and Basic Skills Training (or JOBS), and FAMIS.
    PRWORA means the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996, or Pub. L. 104-193, 42 U.S.C. 1305 note.
    Qualified Aliens has the meaning prescribed under section 431 of 
PRWORA, as amended, 8 U.S.C. 1641.
    Qualified State Expenditures means the total amount of State funds 
expended during the fiscal year that count for basic MOE purposes. It 
includes expenditures, under any State program, for any of the following 
with respect to eligible families:
    (1) Cash assistance;
    (2) Child care assistance;
    (3) Educational activities designed to increase self-sufficiency, 
job training, and work, excluding any expenditure for public education 
in the State except expenditures involving the provision of services or 
assistance of an eligible family that is not generally available to 
persons who are not members of an eligible family;
    (4) Any other use of funds allowable under subpart A of part 263 of 
this chapter; and
    (5) Administrative costs in connection with the matters described in 
paragraphs (1), (2), (3) and (4) of this definition, but only to the 
extent that such costs do not exceed 15 percent of the total amount of 
qualified State expenditures for the fiscal year.
    Secretary means Secretary of the Department of Health and Human 
Services or any other Department official duly authorized to act on the 
Secretary's behalf.
    Segregated State TANF expenditures means expenditures of State funds 
within the TANF program that are not commingled with Federal TANF funds.
    Separate State program, or SSP, means a program operated outside of 
TANF in which the expenditures of State funds may count for basic MOE 
purposes.
    SFAG means State family assistance grant, as defined in this 
section.
    SFAG payable means the SFAG amount, reduced, as appropriate, for any 
Tribal Family Assistance Grants made on behalf of Indian families 
residing in the State and any penalties imposed on a State under this 
chapter.
    Single audit means an audit or supplementary review conducted under 
the authority of the Single Audit Act at 31 U.S.C. chapter 75.
    Social Services Block Grant means the social services program 
operated under title XX of the Act, pursuant to 42 U.S.C. 1397.
    SSBG means the Social Services Block Grant.
    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, unless otherwise specified.
    State agency means the agency that the Governor certifies as the 
administering and supervising agency for the TANF program, pursuant to 
section 402(a)(4) of the Act.

[[Page 123]]

    State family assistance grant means the amount of the basic block 
grant allocated to each eligible State under the formula at section 
403(a)(1) of the Act.
    State MOE expenditures means the expenditure of State funds that may 
count for purposes of the basic MOE requirements at section 409(a)(7) of 
the Act and the Contingency Fund MOE requirements at sections 403(b)(4) 
and 409(a)(10) of the Act.
    State TANF expenditures means the expenditure of State funds within 
the TANF program.
    TANF means The Temporary Assistance for Needy Families Program.
    TANF program means a State program of family assistance operated by 
an eligible State under its State TANF plan.
    Territories means the Commonwealth of Puerto Rico, the United States 
Virgin Islands, Guam, and American Samoa.
    Title IV-A refers to the title and part of the Act that now includes 
TANF, but previously included AFDC and EA. For the purpose of the TANF 
program regulations, this term does not include child care programs 
authorized and funded under section 418 of the Act, or their 
predecessors, unless we specify otherwise.
    Tribal family assistance grant means a grant paid to a Tribe that 
has an approved Tribal family assistance plan under section 412(a)(1) of 
the Act.
    Tribal grantee means a Tribe that receives Federal TANF funds to 
operate a Tribal TANF program under section 412(a) of the Act.
    Tribal TANF program means a TANF program developed by an eligible 
Tribe, Tribal organization, or consortium and approved by us under 
section 412 of the Act.
    Tribe means Indian Tribe or Tribal organization, as defined 
elsewhere in this section. The definition may include Tribal consortia 
(i.e., groups of federally recognized Tribes or Alaska Native entities 
that have banded together in a formal arrangement to develop and 
administer a Tribal TANF program).
    Victim of domestic violence has the meaning specified at Sec.
260.51.
    Waiver, when used in subpart C of this part, has the meaning 
specified at Sec.260.71.
    We (and any other first person plural pronouns) means the Secretary 
of Health and Human Services or any of the following individuals or 
organizations acting in an official capacity on the Secretary's behalf: 
the Assistant Secretary for Children and Families, the Regional 
Administrators for Children and Families, the Department of Health and 
Human Services, and the Administration for Children and Families.
    Welfare-to-Work means the new program for funding work activities at 
section 403(a)(5) of the Act.
    WtW means Welfare-to-Work.
    WtW cash assistance has the meaning specified at Sec.260.32.

[64 FR 17878, Apr. 12, 1999; 64 FR 40291, July 26, 1999]



Sec.260.31  What does the term ``assistance'' mean?

    (a)(1) The term ``assistance'' includes cash, payments, vouchers, 
and other forms of benefits designed to meet a family's ongoing basic 
needs (i.e., for food, clothing, shelter, utilities, household goods, 
personal care items, and general incidental expenses).
    (2) It includes such benefits even when they are:
    (i) Provided in the form of payments by a TANF agency, or other 
agency on its behalf, to individual recipients; and
    (ii) Conditioned on participation in work experience or community 
service (or any other work activity under Sec.261.30 of this chapter).
    (3) Except where excluded under paragraph (b) of this section, it 
also includes supportive services such as transportation and child care 
provided to families who are not employed.
    (b) It excludes:
    (1) Nonrecurrent, short-term benefits that:
    (i) Are designed to deal with a specific crisis situation or episode 
of need;
    (ii) Are not intended to meet recurrent or ongoing needs; and
    (iii) Will not extend beyond four months.
    (2) Work subsidies (i.e., payments to employers or third parties to 
help

[[Page 124]]

cover the costs of employee wages, benefits, supervision, and training);
    (3) Supportive services such as child care and transportation 
provided to families who are employed;
    (4) Refundable earned income tax credits;
    (5) Contributions to, and distributions from, Individual Development 
Accounts;
    (6) Services such as counseling, case management, peer support, 
child care information and referral, transitional services, job 
retention, job advancement, and other employment-related services that 
do not provide basic income support; and
    (7) Transportation benefits provided under a Job Access or Reverse 
Commute project, pursuant to section 404(k) of the Act, to an individual 
who is not otherwise receiving assistance.
    (c) The definition of the term assistance specified in paragraphs 
(a) and (b) of this section:
    (1) Does not apply to the use of the term assistance at part 263, 
subpart A, or at part 264, subpart B, of this chapter; and
    (2) Does not preclude a State from providing other types of benefits 
and services in support of the TANF goal at Sec.260.20(a).



Sec.260.32  What does the term ``WtW cash assistance'' mean?

    (a) For the purpose of Sec.264.1(b)(1)(iii) of this chapter, WtW 
cash assistance only includes benefits that:
    (1) Meet the definition of assistance at Sec.260.31; and
    (2) Are directed at basic needs.
    (b) Thus, it includes benefits described in paragraphs (a)(1) and 
(a)(2) of Sec.260.31, but excludes benefits described in paragraph 
(a)(3) of Sec.260.31.
    (c) It only includes benefits identified in paragraphs (a) and (b) 
of this section when they are provided in the form of cash payments, 
checks, reimbursements, electronic funds transfers, or any other form 
that can legally be converted to currency.



Sec.260.33  When are expenditures on State or local tax credits 
allowable expenditures for TANF-related purposes?

    (a) To be an allowable expenditure for TANF-related purposes, any 
tax credit program must be reasonably calculated to accomplish one of 
the purposes of the TANF program, as specified at Sec.260.20.
    (b)(1) In addition, pursuant to the definition of expenditure at 
Sec.260.30, we would only consider the refundable portion of a State 
or local tax credit to be an allowable expenditure.
    (2) Under a State Earned Income Tax Credit (EITC) program, the 
refundable portion that may count as an expenditure is the amount that 
exceeds a family's State income tax liability prior to application of 
the EITC. (The family's tax liability is the amount owed prior to any 
adjustments for credits or payments.) In other words, we would count 
only the portion of a State EITC that the State refunds to a family and 
that is above the amount of EITC used as credit towards the family's 
State income tax liability.
    (3) For other refundable (and allowable) State and local tax 
credits, such as refundable dependent care credits, the refundable 
portion that would count as an expenditure is the amount of the credit 
that exceeds the taxpayer's tax liability prior to the application of 
the credit. (The taxpayer's liability is the amount owed prior to any 
adjustments for credits or payments.) In other words, we would count 
only the portion of the credit that the State refunds to the taxpayer 
and that is above the amount of the credit applied against the 
taxpayer's tax bill.



Sec.260.34  When do the Charitable Choice provisions of TANF apply?

    (a) These Charitable Choice provisions apply whenever a State or 
local government uses Federal TANF funds or expends State and local 
funds used to meet maintenance-of-effort (MOE) requirements of the TANF 
program to directly procure services and benefits from non-governmental 
organizations, or provides TANF beneficiaries with certificates, 
vouchers, or other forms of indirect disbursement redeemable from such 
organizations. For purposes of this section:
    (1) Direct funding or funds provided directly means that the 
government or an intermediate organization with the same duties as a 
governmental entity under this part selects the provider and

[[Page 125]]

purchases the needed services straight from the provider (e.g., via a 
contract or cooperative agreement).
    (2) Indirect funding or funds provided indirectly means placing the 
choice of service provider in the hands of the beneficiary, and then 
paying for the cost of that service through a voucher, certificate, or 
other similar means of payment.
    (b)(1) Religious organizations are eligible, on the same basis as 
any other organization, to participate in TANF as long as their Federal 
TANF or State MOE funded services are provided consistent with the 
Establishment Clause and the Free Exercise Clause of the First Amendment 
to the United States Constitution.
    (2) Neither the Federal government nor a State or local government 
in its use of Federal TANF or State MOE funds shall, in the selection of 
service providers, discriminate for or against an organization that 
applies to provide, or provides TANF services or benefits on the basis 
of the organization's religious character or affiliation.
    (c) No Federal TANF or State MOE funds provided directly to 
participating organizations may be expended for inherently religious 
activities, such as worship, religious instruction, or proselytization. 
If an organization conducts such activities, it must offer them 
separately, in time or location, from the programs or services for which 
it receives direct Federal TANF or State MOE funds under this part, and 
participation must be voluntary for the beneficiaries of those programs 
or services.
    (d) A religious organization that participates in the TANF program 
will retain its independence from Federal, State, and local governments 
and may continue to carry out its mission, including the definition, 
practice and expression of its religious beliefs, provided that it does 
not expend Federal TANF or State MOE funds that it receives directly to 
support any inherently religious activities, such as worship, religious 
instruction, or proselytization. Among other things, faith-based 
organizations may use space in their facilities to provide TANF-funded 
services without removing religious art, icons, scriptures, or other 
symbols. In addition, a Federal TANF or State MOE funded religious 
organization retains the authority over its internal governance, and it 
may retain religious terms in its organization's name, select its board 
members on a religious basis, and include religious references in its 
organization's mission statements and other governing documents.
    (e) The participation of a religious organization in, or its receipt 
of funds from, a TANF program does not affect that organization's 
exemption provided under 42 U.S.C. 2000e-1 regarding employment 
practices.
    (f) A religious organization that receives Federal TANF or State MOE 
funds shall not, in providing program services or benefits, discriminate 
against a TANF applicant or recipient on the basis of religion, a 
religious belief, a refusal to hold a religious belief, or a refusal to 
actively participate in a religious practice.
    (g)(1) If an otherwise eligible TANF applicant or recipient objects 
to the religious character of a TANF service provider, the recipient is 
entitled to receive services from an alternative provider to which the 
individual has no religious objection. In such cases, the State or local 
agency must refer the individual to an alternative provider of services 
within a reasonable period of time, as defined by the State or local 
agency. That alternative provider must be reasonably accessible and have 
the capacity to provide comparable services to the individual. Such 
services shall have a value that is not less than the value of the 
services that the individual would have received from the program 
participant to which the individual had such objection, as defined by 
the State or local agency.
    (2) The alternative provider need not be a secular organization. It 
must simply be a provider to which the recipient has no religious 
objection. States may adopt reasonable definitions of the terms 
``reasonably accessible,'' ``a reasonable period of time,'' 
``comparable,'' ``capacity,'' and `` value that is not less than.'' We 
expect States to apply these terms in a fair and consistent manner.
    (3) The appropriate State or local governments that administer 
Federal TANF or State MOE funded programs shall ensure that notice of 
their right

[[Page 126]]

to alternative services is provided to applicants or recipients. The 
notice must clearly articulate the recipient's right to a referral and 
to services that reasonably meet the timeliness, capacity, 
accessibility, and equivalency requirements discussed above.
    (h) Religious organizations that receive Federal TANF and State MOE 
funds are subject to the same regulations as other non-governmental 
organizations to account, in accordance with generally accepted 
auditing/accounting principles, for the use of such funds. Religious 
organizations may keep Federal TANF and State MOE funds they receive for 
services segregated in a separate account from non-governmental funds. 
If religious organizations choose to segregate their funds in this 
manner, only the Federal TANF and State MOE funds are subject to audit 
by the government under the program.
    (i) This section applies whenever a State or local organization uses 
Federal TANF or State MOE funds to procure services and benefits from 
non-governmental organizations, or redeems certificates, vouchers, or 
other forms of disbursement from them whether with Federal funds, or 
State and local funds claimed to meet the MOE requirements of section 
409(a)(7) of the Social Security Act. Subject to the requirements of 
paragraph (j), when State or local funds are used to meet the TANF MOE 
requirements, the provisions apply irrespective of whether the State or 
local funds are commingled with Federal funds, segregated, or expended 
in separate State programs.
    (j) Preemption. Nothing in this section shall be construed to 
preempt any provision of a State constitution, or State statute that 
prohibits or restricts the expenditure of segregated or separate State 
funds in or by religious organizations.
    (k) If a non-governmental intermediate organization, acting under a 
contract or other agreement with a State or local government, is given 
the authority under the contract or agreement to select non-governmental 
organizations to provide Federal TANF or MOE funded services, the 
intermediate organization must ensure that there is compliance with the 
Charitable Choice statutory provisions and these regulations. The 
intermediate organization retains all other rights of a non-governmental 
organization under the Charitable Choice statute and regulations.
    (l) Any party which seeks to enforce its right under this section 
may assert a civil action for injunctive relief exclusively in an 
appropriate State court against the entity or agency that allegedly 
commits such violation.

[68 FR 56465, Sept. 30, 2003]



Sec.260.35  What other Federal laws apply to TANF?

    (a) Under section 408(d) of the Act, the following provisions of law 
apply to any program or activity funded with Federal TANF funds:
    (1) The Age Discrimination Act of 1975;
    (2) Section 504 of the Rehabilitation Act of 1973;
    (3) The Americans with Disabilities Act of 1990; and
    (4) Title VI of the Civil Rights Act of 1964.
    (b) The limitation on Federal regulatory and enforcement authority 
at section 417 of the Act does not limit the effect of other Federal 
laws, including Federal employment laws (such as the Fair Labor 
Standards Act (FLSA), the Occupational Safety and Health Act (OSHA) and 
unemployment insurance (UI)) and nondiscrimination laws. These laws 
apply to TANF beneficiaries in the same manner as they apply to other 
workers.



Sec.260.40  When are these provisions in effect?

    (a) In determining whether a State is subject to a penalty under 
parts 261 through 265 of this chapter, we will not apply the regulatory 
provisions in parts 260 through 265 of this chapter retroactively. We 
will judge State actions that occurred prior to the effective date of 
these rules and expenditures of funds received prior to the effective 
date only against a reasonable interpretation of the statutory 
provisions in title IV-A of the Act.
    (b) The effective date of these rules is October 1, 1999.

[[Page 127]]



Subpart B_What Special Provisions Apply to Victims of Domestic Violence?



Sec.260.50  What is the purpose of this subpart?

    Under section 402(a)(7) of the Act, under its TANF plan, a State may 
elect to implement a special program to serve victims of domestic 
violence and to waive program requirements for such individuals. This 
subpart explains how adoption of these provisions affects the penalty 
determinations applicable if a State fails to meet its work 
participation rate or comply with the five-year limit on Federal 
assistance.



Sec.260.51  What definitions apply to this subpart?

    Family Violence Option (or FVO) means the provision at section 
402(a)(7) of the Act under which a State certifies in its State plan if 
it has elected the option to implement comprehensive strategies for 
identifying and serving victims of domestic violence.
    Federally recognized good cause domestic violence waiver means a 
good cause domestic violence waiver that meets the requirements at 
Sec. Sec.260.52(c) and 260.55.
    Good cause domestic violence waiver means a waiver of one or more 
program requirements granted by a State to a victim of domestic violence 
under the FVO, as described at Sec.260.52(c).
    Victim of domestic violence means an individual who is battered or 
subject to extreme cruelty under the definition at section 
408(a)(7)(C)(iii) of the Act.



Sec.260.52  What are the basic provisions of the Family Violence
Option (FVO)?

    Section 402(a)(7) of the Act provides that States electing the FVO 
certify that they have established and are enforcing standards and 
procedures to:
    (a) Screen and identify individuals receiving TANF and MOE 
assistance with a history of domestic violence, while maintaining the 
confidentiality of such individuals;
    (b) Refer such individuals to counseling and supportive services; 
and
    (c) Provide waivers, pursuant to a determination of good cause, of 
normal program requirements to such individuals for so long as necessary 
in cases where compliance would make it more difficult for such 
individuals to escape domestic violence or unfairly penalize those who 
are or have been victimized by such violence or who are at risk of 
further domestic violence.



Sec.260.54  Do States have flexibility to grant good cause domestic
violence waivers?

    (a) Yes; States have broad flexibility to grant these waivers to 
victims of domestic violence. For example, they may determine which 
program requirements to waive and decide how long each waiver might be 
necessary.
    (b) However, if a State wants us to take the waivers that it grants 
into account in deciding if it has reasonable cause for failing to meet 
its work participation rates or comply with the five-year limit on 
Federal assistance, has achieved compliance or made significant progress 
towards achieving compliance with such requirements during a corrective 
compliance period, or qualifies for a reduction in its work penalty 
under Sec.261.51 of this chapter, the waivers must be federally 
recognized good cause domestic violence waivers, within the meaning of 
Sec. Sec.260.52(c) and 260.55, and the State must submit the 
information specified at Sec.265.9(b)(5) of this chapter on its 
strategies and procedures for serving victims of domestic violence and 
the number of waivers granted.



Sec.260.55  What are the additional requirements for Federal 
recognition of good cause domestic violence waivers?

    To be federally recognized, good cause domestic violence waivers 
must:
    (a) Identify the specific program requirements that are being 
waived;
    (b) Be granted appropriately based on need, as determined by an 
individualized assessment by a person trained in domestic violence and 
redeterminations no less often than every six months;
    (c) Be accompanied by an appropriate services plan that:
    (1) Is developed by a person trained in domestic violence;
    (2) Reflects the individualized assessment and any revisions 
indicated by the redetermination; and

[[Page 128]]

    (3) To the extent consistent with Sec.260.52(c), is designed to 
lead to work.



Sec.260.58  What penalty relief is available to a State whose failure to meet the work participation rates is attributable to providing federally recognized 
          good cause domestic violence waivers?

    (a)(1) We will determine that a State has reasonable cause if its 
failure to meet the work participation rates was attributable to 
federally recognized good cause domestic violence waivers granted to 
victims of domestic violence.
    (2) To receive reasonable cause under the provisions of Sec.
262.5(b) of this chapter, the State must provide evidence that it 
achieved the applicable rates, except with respect to any individuals 
who received a federally recognized good cause domestic violence waiver 
of work participation requirements. In other words, it must demonstrate 
that it met the applicable rates when such waiver cases are removed from 
the calculations at Sec. Sec.261.22(b) and 261.24(b) of this chapter.
    (b)(1) We will reduce a State's penalty based on the degree of 
noncompliance to the extent that its failure to meet the work 
participation rates was attributable to federally recognized good cause 
domestic violence waivers.
    (2) To receive a reduction based on degree of noncompliance under 
the provisions of Sec.261.51 of this chapter, a State granting 
federally recognized good cause domestic violence waivers of work 
participation requirements must demonstrate that it achieved 
participation rates above the threshold at Sec.261.51(b)(3) of this 
chapter, when such waiver cases are removed from the calculations at 
Sec. Sec.261.22(b) and 261.24(b) of this chapter.
    (c) We may take federally recognized good cause domestic violence 
waivers of work requirements into consideration in deciding whether a 
State has achieved compliance or made significant progress towards 
achieving compliance in meeting the work participation rates during a 
corrective compliance period.
    (d) To receive the penalty relief specified in paragraphs (a), (b), 
and (c) of this section, the State must submit the information specified 
at Sec.265.9(b)(5) of this chapter.



Sec.260.59  What penalty relief is available to a State that 
failed to comply with the five-year limit on Federal assistance 
because it provided federally recognized good cause domestic violence waivers?

    (a)(1) We will determine that a State has reasonable cause if it 
failed to comply with the five-year limit on Federal assistance because 
of federally recognized good cause domestic violence waivers granted to 
victims of domestic violence.
    (2) More specifically, to receive reasonable cause under the 
provisions at Sec.264.3(b) of this chapter, a State must demonstrate 
that:
    (i) It granted federally recognized good cause domestic violence 
waivers to extend time limits based on the need for continued assistance 
due to current or past domestic violence or the risk of further domestic 
violence; and
    (ii) When individuals and their families are excluded from the 
calculation, the percentage of families receiving federally funded 
assistance for more than 60 months did not exceed 20 percent of the 
total.
    (b) We may take federally recognized good cause domestic violence 
waivers to extend time limits into consideration in deciding whether a 
State has achieved compliance or made significant progress towards 
achieving compliance in meeting the five-year limit on Federal 
assistance during a corrective compliance period.
    (c) To receive the penalty relief specified in paragraphs (a) and 
(b) of this section, the State must submit the information specified at 
Sec.265.9(b)(5) of this chapter.

[64 FR 17878, Apr. 12, 1999]



 Subpart C_What Special Provisions Apply to States that Were Operating 
                    Programs Under Approved Waivers?



Sec.260.70  What is the purpose of this subpart?

    (a) Under section 415 of the Act, if a State was granted a waiver 
under section 1115 of the Act and that waiver was in effect on August 
22, 1996, the

[[Page 129]]

amendments made by PRWORA do not apply for the period of the waiver, to 
the extent that they are inconsistent with the waiver and the State 
elects to continue its waiver.
    (b) Identification of waiver inconsistencies is relevant for the 
determination of penalties in three areas:
    (1) Under Sec.261.50 of this chapter for failing to meet the work 
participation rates at part 261 of this chapter;
    (2) Under Sec.264.2 of this chapter for failing to comply with the 
five-year limit on Federal assistance at subpart A of part 264 of this 
chapter; and
    (3) Under Sec.261.54 of this chapter for failing to impose 
sanctions on individuals who fail to work.
    (c) This subpart explains how we will determine waiver 
inconsistencies and apply them in the penalty determination process for 
these penalties.



Sec.260.71  What definitions apply to this subpart?

    (a) Inconsistent means that complying with the TANF work 
participation or sanction requirements at section 407 of the Act or the 
time-limit requirement at section 408(a)(7) of the Act would necessitate 
that a State change a policy reflected in an approved waiver.
    (b) Waiver consists of the work participation or time-limit 
component of the State's demonstration project under section 1115 of the 
Act. The component includes the revised AFDC requirements indicated in 
the State's waiver list, as approved by the Secretary under the 
authority of section 1115, and the associated AFDC provisions that did 
not need to be waived.
    (c) Control group and experimental group have the meanings specified 
in the terms and conditions of the State's demonstration.



Sec.260.72  What basic requirements must State demonstration
components meet for the purpose of determining if inconsistencies
exist with respect to work requirements or time limits?

    (a) The policies must be consistent with the requirements of section 
415 of the Act and the requirements of this subpart.
    (b) The policies must be within the scope of the approved waivers 
both in terms of geographical coverage and the coverage of the types of 
cases specified in the waiver approval package.
    (c) The State must have applied its waiver policies on a continuous 
basis from the date that it implemented its TANF program, except that it 
may have adopted modifications that have the effect of making its 
policies more consistent with the provisions of PRWORA.
    (d) An inconsistency may not apply beyond the earlier of the 
following dates:
    (1) The expiration of waiver authority as determined in accordance 
with the demonstration terms and conditions; or
    (2) For any specific inconsistency, the date upon which the State 
discontinued the applicable waiver policy.
    (e) The State must submit the Governor's certification specified in 
Sec.260.75.
    (f) In general, the policies in this subpart do not have the effect 
of delaying the date when a State might be subject to the work or time-
limit penalties at Sec. Sec.261.50, 261.54, and 264.1 of this chapter 
or the data collection requirements at part 265 of this chapter.



Sec.260.73  How do existing welfare reform waivers affect the 
participation rates and work rules?

    (a) If a State is implementing a work participation component under 
a waiver, in accordance with this subpart, the provisions of section 407 
of the Act will not apply in determining if a penalty should be imposed, 
to the extent that the provision is inconsistent with the waiver.
    (b) For the purpose of determining if the State's demonstration has 
a work participation component, the waiver list for the demonstration 
must include one or more specific provisions that directly correspond to 
the work policies in section 407 of the Act (i.e., change allowable JOBS 
activities, exemptions from JOBS participation, hours of required JOBS 
participation, or sanctions for noncompliance with JOBS participation).
    (c) Corresponding to the inconsistencies certified by the Governor 
under Sec.260.75:
    (1) We will calculate the State's work participation rates, by:

[[Page 130]]

    (i) Excluding cases exempted from participation under the 
demonstration component and, if applicable, experimental and control 
cases not otherwise exempted, in calculating the rate;
    (ii) Defining work activities as defined in the demonstration 
component in determining the numerator; and
    (iii) Including cases meeting the required number of hours of 
participation in work activities in accordance with demonstration 
component policy, in determining the numerator.
    (2) We will determine whether a State is taking appropriate 
sanctions when an individual refuses to work based on the State's 
certified waiver policies.
    (d) We will use the data submitted by States pursuant to Sec.265.3 
of this chapter to calculate and make public a State's work 
participation rates under both the TANF requirements and the State's 
alternative waiver requirements.



Sec.260.74  How do existing welfare reform waivers affect the 
application of the Federal time-limit provisions?

    (a)(1) If a State is implementing a time-limit component under a 
waiver, in accordance with this subpart, the provisions of section 
408(a)(7) of the Act will not apply in determining if a penalty should 
be imposed, to the extent that they are inconsistent with the waiver.
    (2) For the purpose of determining if the State's demonstration has 
a time-limit component, the waiver list for the demonstration must 
include provisions that directly correspond to the time-limit policies 
enumerated in section 408(a)(7) of the Act (i.e., address which 
individuals or families are subject to, or exempt from, terminations of 
assistance based solely on the passage of time or who qualifies for 
extensions to the time limit).
    (b)(1) Generally, under an approved waiver, except as provided in 
paragraph (b)(3) of this section, a State will count, toward the Federal 
five-year limit, all months for which the head-of-household or spouse of 
the head-of-household subject to the State time limit receives 
assistance with Federal TANF funds, just as it would if it did not have 
an approved waiver.
    (2) The State need not count, toward the Federal five-year limit, 
any months for which a head-of-household or spouse of the head-of-
household receives assistance with Federal TANF funds while that 
individual is exempt from the State's time limit under the State's 
approved waiver.
    (3) Where a State has continued a time limit under waivers that only 
terminates assistance for adults, the State need not count, toward the 
Federal five-year limit, any months for which an adult subject to the 
State time limit receives assistance with Federal TANF funds.
    (4) The State may continue to provide assistance with Federal TANF 
funds for more than 60 months, without a numerical limit, to families 
provided extensions to the State time limit, under the provisions of the 
terms and conditions of the approved waiver.
    (c) Corresponding to the inconsistencies certified by the Governor 
under Sec.260.75, we will calculate the State's time-limit exceptions 
by:
    (1) Excluding, from the determination of the number of months of 
Federal assistance received by a family:
    (i) Any month in which the adult(s) were exempt from the State's 
time limit under the terms of an approved waiver or any months in which 
the children received assistance under a waiver that only terminated 
assistance to adults; and
    (ii) If applicable, experimental and control group cases not 
otherwise exempted; and
    (2) Applying the State's waiver policies with respect to the 
availability of extensions to the time limit.



Sec.260.75  If a State is claiming a waiver inconsistency for work 
requirements or time limits, what must the Governor certify?

    (a) The Governor of the State must certify in writing to the 
Secretary that:
    (1) The applicable policies have been continually applied in 
operating the TANF program, as described in Sec.260.72(c);
    (2) The inconsistencies claimed by the State are within the scope of 
the

[[Page 131]]

approved waivers, as described in Sec.260.72(b);
    (b) The certification must identify the specific inconsistencies 
that the State chooses to continue with respect to work and time limits.
    (1) If the waiver inconsistency claim includes work provisions, the 
certification must specify the standards that will apply, in lieu of the 
provisions in subparts B and C of part 261 of this chapter, to 
determine:
    (i) The number of two-parent and all-parent cases that are exempt 
from participation, if any, for the purpose of determining the 
denominator of the work participation rate;
    (ii) The number of nonexempt two-parent and all-parent cases that 
are participating in work activities for the purpose of determining the 
numerator of the work participation rate, including standards applicable 
to;
    (A) Countable work activities; and
    (B) Required hours of work for participation for individual 
participants; and
    (iii) The penalty against an individual or family when an individual 
refuses to work.
    (2) If the waiver inconsistency claim includes time-limit 
provisions, the certification must include the standards that will 
apply, in lieu of the provisions in Sec.264.1 of this chapter, in 
determining:
    (i) Which families are counted toward the Federal time limit; and
    (ii) Whether a family is eligible for an extension of its time limit 
on federally funded assistance.
    (3) If the State is continuing policies for evaluation purposes in 
accordance with Sec.260.76:
    (i) The certification must specify any special work or time-limit 
standards that apply to the control group and experimental group cases; 
and
    (ii) The State may choose to exclude cases assigned to the 
experimental and control groups, which are not otherwise exempt, for the 
purpose of calculating the work participation rate or determining State 
compliance related to limiting assistance to families including adults 
who have received 60 months of Federal TANF assistance. In doing so, the 
State may effectively exclude all experimental group cases and/or 
control group cases, not otherwise exempt, but may not exclude 
individual cases on a selective basis.
    (c) The certification may include a claim of inconsistency with 
respect to hours of required participation in work activities only if 
the State has written evidence that, when implemented, the waiver 
policies established specific requirements related to hours of work for 
nonexempt individuals.
    (d)(1) The Governor's certification must be provided no later than 
October 1, 1999.
    (2) If a State modifies its waiver policies in a way that has a 
substantive effect on the determination of its work sanctions, or the 
calculation of its work participation rates or its time-limit 
exceptions, it must submit an amended certification no later than the 
end of the fiscal quarter in which the modifications take effect.



Sec.260.76  What special rules apply to States that are continuing
evaluations of their waiver demonstrations?

    If a State is continuing research that employs an experimental 
design in order to complete an impact evaluation of a waiver 
demonstration, the experimental and control groups may continue to be 
subject to prior AFDC law, except as modified by the waiver.



PART 261_ENSURING THAT RECIPIENTS WORK--Table of Contents



Sec.
261.1 What does this part cover?
261.2 What definitions apply to this part?

 Subpart A_What Are the Provisions Addressing Individual
 Responsibility?

261.10 What work requirements must an individual meet?
261.11 Which recipients must have an assessment under TANF?
261.12 What is an individual responsibility plan?
261.13 May an individual be penalized for not following an individual 
          responsibility plan?
261.14 What is the penalty if an individual refuses to engage in work?
261.15 Can a family be penalized if a parent refuses to work because he 
          or she cannot find child care?
261.16 Does the imposition of a penalty affect an individual's work 
          requirement?

[[Page 132]]

   Subpart B_What Are the Provisions Addressing State Accountability?

261.20 How will we hold a State accountable for achieving the work 
          objectives of TANF?
261.21 What overall work rate must a State meet?
261.22 How will we determine a State's overall work rate?
261.23 What two-parent work rate must a State meet?
261.24 How will we determine a State's two-parent work rate?
261.25 Does a State include Tribal families in calculating the work 
          participation rate?

      Subpart C_What Are the Work Activities and How Do They Count?

261.30 What are the work activities?
261.31 How many hours must a work-eligible individual participate for 
          the family to count in the numerator of the overall rate?
261.32 How many hours must work-eligible individuals participate for the 
          family to count in the numerator of the two-parent rate?
261.33 What are the special requirements concerning educational 
          activities in determining monthly participation rates?
261.34 Are there any limitations in counting job search and job 
          readiness assistance toward the participation rates?
261.35 Are there any special work provisions for single custodial 
          parents?
261.36 Do welfare reform waivers affect the calculation of a State's 
          participation rates?

 Subpart D_How Will We Determine Caseload Reduction Credit for Minimum 
                          Participation Rates?

261.40 Is there a way for a State to reduce the work participation 
          rates?
261.41 How will we determine the caseload reduction credit?
261.42 Which reductions count in determining the caseload reduction 
          credit?
261.43 What is the definition of a ``case receiving assistance'' in 
          calculating the caseload reduction credit?
261.44 When must a State report the required data on the caseload 
          reduction credit?

 Subpart E_What Penalties Apply to States Related to Work Requirements?

261.50 What happens if a State fails to meet the participation rates?
261.51 Under what circumstances will we reduce the amount of the penalty 
          below the maximum?
261.52 Is there a way to waive the State's penalty for failing to 
          achieve either of the participation rates?
261.53 May a State correct the problem before incurring a penalty?
261.54 Is a State subject to any other penalty relating to its work 
          program?
261.55 Under what circumstances will we reduce the amount of the penalty 
          for not properly imposing penalties on individuals?
261.56 What happens if a parent cannot obtain needed child care?
261.57 What happens if a State sanctions a single parent of a child 
          under six who cannot get needed child care?

     Subpart F_How Do We Ensure the Accuracy of Work Participation 
                              Information?

261.60 What hours of participation may a State report for a work-
          eligible individual?
261.61 How must a State document a work-eligible individual's hours of 
          participation?
261.62 What must a State do to verify the accuracy of its work 
          participation information?
261.63 When is the State's Work Verification Plan due?
261.64 How will we determine whether a State's work verification 
          procedures ensure an accurate work participation measurement?
261.65 Under what circumstances will we impose a work verification 
          penalty?

           Subpart G_What Nondisplacement Rules Apply in TANF?

261.70 What safeguards are there to ensure that participants in work 
          activities do not displace other workers?

     Subpart H_How Do Welfare Reform Waivers Affect State Penalties?

261.80 How do existing welfare reform waivers affect a State's penalty 
          liability under this part?

    Authority: 42 U.S.C. 601, 602, 607, and 609; Pub. L. 109-171.

    Source: 64 FR 17884, Apr. 12, 1999, unless otherwise noted.



Sec.261.1  What does this part cover?

    This part includes the regulatory provisions relating to the 
mandatory work requirements of TANF and State work participation data 
verification requirements.

[71 FR 37475, June 29, 2006]

[[Page 133]]



Sec.261.2  What definitions apply to this part?

    (a) The general TANF definitions at Sec. Sec.260.30 through 260.33 
of this chapter apply to this part.
    (b) Unsubsidized employment means full-or part-time employment in 
the public or private sector that is not subsidized by TANF or any other 
public program.
    (c) Subsidized private sector employment means employment in the 
private sector for which the employer receives a subsidy from TANF or 
other public funds to offset some or all of the wages and costs of 
employing an individual.
    (d) Subsidized public sector employment means employment in the 
public sector for which the employer receives a subsidy from TANF or 
other public funds to offset some or all of the wages and costs of 
employing an individual.
    (e) Work experience (including work associated with the refurbishing 
of publicly assisted housing) if sufficient private sector employment is 
not available means a work activity, performed in return for welfare, 
that provides an individual with an opportunity to acquire the general 
skills, knowledge, and work habits necessary to obtain employment. The 
purpose of work experience is to improve the employability of those who 
cannot find unsubsidized full-time employment. This activity must be 
supervised by an employer, work site sponsor, or other responsible party 
on an ongoing basis no less frequently than once in each day in which 
the individual is scheduled to participate.
    (f) On-the-job training means training in the public or private 
sector that is given to a paid employee while he or she is engaged in 
productive work and that provides knowledge and skills essential to the 
full and adequate performance of the job.
    (g) Job search and job readiness assistance means the act of seeking 
or obtaining employment, preparation to seek or obtain employment, 
including life skills training, and substance abuse treatment, mental 
health treatment, or rehabilitation activities. Such treatment or 
therapy must be determined to be necessary and documented by a qualified 
medical, substance abuse, or mental health professional. Job search and 
job readiness assistance activities must be supervised by the TANF 
agency or other responsible party on an ongoing basis no less frequently 
than once each day in which the individual is scheduled to participate.
    (h) Community service programs mean structured programs and embedded 
activities in which individuals perform work for the direct benefit of 
the community under the auspices of public or nonprofit organizations. 
Community service programs must be limited to projects that serve a 
useful community purpose in fields such as health, social service, 
environmental protection, education, urban and rural redevelopment, 
welfare, recreation, public facilities, public safety, and child care. 
Community service programs are designed to improve the employability of 
individuals not otherwise able to obtain unsubsidized full-time 
employment, and must be supervised on an ongoing basis no less 
frequently than once each day in which the individual is scheduled to 
participate. A State agency shall take into account, to the extent 
possible, the prior training, experience, and skills of a recipient in 
making appropriate community service assignments.
    (i) Vocational educational training (not to exceed 12 months with 
respect to any individual) means organized educational programs that are 
directly related to the preparation of individuals for employment in 
current or emerging occupations. Vocational educational training must be 
supervised on an ongoing basis no less frequently than once each day in 
which the individual is scheduled to participate.
    (j) Job skills training directly related to employment means 
training or education for job skills required by an employer to provide 
an individual with the ability to obtain employment or to advance or 
adapt to the changing demands of the workplace. Job skills training 
directly related to employment must be supervised on an ongoing basis no 
less frequently than once each day in which the individual is scheduled 
to participate.
    (k) Education directly related to employment, in the case of a 
recipient who has not received a high school diploma or a certificate of 
high school equivalency

[[Page 134]]

means education related to a specific occupation, job, or job offer. 
Education directly related to employment must be supervised on an 
ongoing basis no less frequently than once each day in which the work-
eligible individual is scheduled to participate.
    (l) Satisfactory attendance at secondary school or in a course of 
study leading to a certificate of general equivalence, in the case of a 
recipient who has not completed secondary school or received such a 
certificate means regular attendance, in accordance with the 
requirements of the secondary school or course of study, at a secondary 
school or in a course of study leading to a certificate of general 
equivalence, in the case of a work-eligible individual who has not 
completed secondary school or received such a certificate. This activity 
must be supervised on an ongoing basis no less frequently than once each 
day in which the individual is scheduled to participate.
    (m) Providing child care services to an individual who is 
participating in a community service program means providing child care 
to enable another TANF or SSP recipient to participate in a community 
service program. This is an unpaid activity and must be a structured 
program designed to improve the employability of individuals who 
participate in this activity. This activity must be supervised on an 
ongoing basis no less frequently than once each day in which the 
individual is scheduled to participate.
    (n)(1) Work-eligible individual means an adult (or minor child head-
of-household) receiving assistance under TANF or a separate State 
program or a non-recipient parent living with a child receiving such 
assistance unless the parent is:
    (i) A minor parent and not the head-of-household;
    (ii) A non-citizen who is ineligible to receive assistance due to 
his or her immigration status; or
    (iii) At State option on a case-by-case basis, a recipient of 
Supplemental Security Income (SSI) benefits or Aid to the Aged, Blind or 
Disabled in the Territories.
    (2) The term also excludes:
    (i) A parent providing care for a disabled family member living in 
the home, provided that there is medical documentation to support the 
need for the parent to remain in the home to care for the disabled 
family member;
    (ii) At State option on a case-by-case basis, a parent who is a 
recipient of Social Security Disability Insurance (SSDI) benefits; and
    (iii) An individual in a family receiving MOE-funded assistance 
under an approved Tribal TANF program, unless the State includes the 
Tribal family in calculating work participation rates, as permitted 
under Sec.261.25.

[73 FR 6821, Feb. 5, 2008]



 Subpart A_What Are the Provisions Addressing Individual Responsibility?



Sec.261.10  What work requirements must an individual meet?

    (a)(1) A parent or caretaker receiving assistance must engage in 
work activities when the State has determined that the individual is 
ready to engage in work or when he or she has received assistance for a 
total of 24 months, whichever is earlier, consistent with section 
407(e)(2) of the Act.
    (2) The State must define what it means to engage in work for this 
requirement; its definition may include participation in work activities 
in accordance with section 407 of the Act.
    (b) If a parent or caretaker has received assistance for two months, 
he or she must participate in community service employment, consistent 
with section 407(e)(2) of the Act, unless the State has exempted the 
individual from work requirements or he or she is already engaged in 
work activities as described at Sec.261.30. The State will determine 
the minimum hours per week and the tasks the individual must perform as 
part of the community service employment.



Sec.261.11  Which recipients must have an assessment under TANF?

    (a) The State must make an initial assessment of the skills, prior 
work experience, and employability of each recipient who is at least age 
18 or who has not completed high school (or equivalent) and is not 
attending secondary school.

[[Page 135]]

    (b) The State may make any required assessments within 30 days (90 
days, at State option) of the date an individual becomes eligible for 
assistance.



Sec.261.12  What is an individual responsibility plan?

    An individual responsibility plan is a plan developed at State 
option, in consultation with the individual, on the basis of the 
assessment made under Sec.261.11. The plan:
    (a) Should set an employment goal and a plan for moving immediately 
into private-sector employment;
    (b) Should describe the obligations of the individual. These could 
include going to school, maintaining certain grades, keeping school-aged 
children in school, immunizing children, going to classes, or doing 
other things that will help the individual become or remain employed in 
the private sector;
    (c) Should be designed to move the individual into whatever private-
sector employment he or she is capable of handling as quickly as 
possible and to increase over time the responsibility and the amount of 
work the individual handles;
    (d) Should describe the services the State will provide the 
individual to enable the individual to obtain and keep private sector 
employment, including job counseling services; and
    (e) May require the individual to undergo appropriate substance 
abuse treatment.



Sec.261.13  May an individual be penalized for not following an 
individual responsibility plan?

    Yes. If an individual fails without good cause to comply with an 
individual responsibility plan that he or she has signed, the State may 
reduce the amount of assistance otherwise payable to the family, by 
whatever amount it considers appropriate. This penalty is in addition to 
any other penalties under the State's TANF program.



Sec.261.14  What is the penalty if an individual refuses to engage
in work?

    (a) If an individual refuses to engage in work required under 
section 407 of the Act, the State must reduce or terminate the amount of 
assistance payable to the family, subject to any good cause or other 
exceptions the State may establish. Such a reduction is governed by the 
provisions of Sec.261.16.
    (b)(1) The State must, at a minimum, reduce the amount of assistance 
otherwise payable to the family pro rata with respect to any period 
during the month in which the individual refuses to work.
    (2) The State may impose a greater reduction, including terminating 
assistance.
    (c) A State that fails to impose penalties on individuals in 
accordance with the provisions of section 407(e) of the Act may be 
subject to the State penalty specified at Sec.261.54.



Sec.261.15  Can a family be penalized if a parent refuses to work
because he or she cannot find child care?

    (a) No, the State may not reduce or terminate assistance based on an 
individual's refusal to engage in required work if the individual is a 
single custodial parent caring for a child under age six who has a 
demonstrated inability to obtain needed child care, as specified at 
Sec.261.56.
    (b) A State that fails to comply with the penalty exception at 
section 407(e)(2) of the Act and the requirements at Sec.261.56 may be 
subject to the State penalty specified at Sec.261.57.



Sec.261.16  Does the imposition of a penalty affect an individual's 
work requirement?

    A penalty imposed by a State against the family of an individual by 
reason of the failure of the individual to comply with a requirement 
under TANF shall not be construed to be a reduction in any wage paid to 
the individual.



   Subpart B_What Are the Provisions Addressing State Accountability?

    Source: 73 FR 6822, Feb. 5, 2008, unless otherwise noted.



Sec.261.20  How will we hold a State accountable for achieving the
work objectives of TANF?

    (a) Each State must meet two separate work participation rates in FY

[[Page 136]]

2006 and thereafter, one--the two-parent rate based on how well it 
succeeds in helping work-eligible individuals in two-parent families 
find work activities described at Sec.261.30, the other--the overall 
rate based on how well it succeeds in finding those activities for work-
eligible individuals in all the families that it serves.
    (b) Each State must submit data, as specified at Sec.265.3 of this 
chapter, that allows us to measure its success in requiring work-
eligible individuals to participate in work activities.
    (c) If the data show that a State met both participation rates in a 
fiscal year, then the percentage of historic State expenditures that it 
must expend under TANF, pursuant to Sec.263.1 of this chapter, 
decreases from 80 percent to 75 percent for that fiscal year. This is 
also known as the State's TANF ``maintenance-of-effort'' (MOE) 
requirement.
    (d) If the data show that a State did not meet a minimum work 
participation rate for a fiscal year, a State could be subject to a 
financial penalty.
    (e) Before we impose a penalty, a State will have the opportunity to 
claim reasonable cause or enter into a corrective compliance plan, 
pursuant to Sec. Sec.262.5 and 262.6 of this chapter.



Sec.261.21  What overall work rate must a State meet?

    Each State must achieve a 50 percent minimum overall participation 
rate in FY 2006 and thereafter, minus any caseload reduction credit to 
which it is entitled as provided in subpart D of this part.



Sec.261.22  How will we determine a State's overall work rate?

    (a)(1) The overall participation rate for a fiscal year is the 
average of the State's overall participation rates for each month in the 
fiscal year.
    (2) The rate applies to families with a work-eligible individual.
    (b) We determine a State's overall participation rate for a month as 
follows:
    (1) The number of TANF and SSP-MOE families that include a work-
eligible individual who meets the requirements set forth in Sec.261.31 
for the month (i.e., the numerator), divided by,
    (2) The number of TANF and SSP-MOE families that include a work-
eligible individual, minus the number of such families that are subject 
to a penalty for refusing to work in that month (i.e., the denominator). 
However, if a family with a work-eligible individual has been penalized 
for refusal to participate in work activities for more than three of the 
last 12 months, we will not exclude it from the participation rate 
calculation.
    (3) At State option, we will include in the participation rate 
calculation families with a work-eligible individual that have been 
penalized for refusing to work no more than three of the last 12 months.
    (c)(1) A State has the option of not requiring a single custodial 
parent caring for a child under age one to engage in work.
    (2) At State option, we will disregard a family with such a parent 
from the participation rate calculation for a maximum of 12 months.
    (d)(1) If a family receives assistance for only part of a month, we 
will count it as a month of participation if a work-eligible individual 
is engaged in work for the minimum average number of hours in each full 
week that the family receives assistance in that month.
    (2) If a State pays benefits retroactively (i.e., for the period 
between application and approval of benefits), it has the option to 
consider the family to be receiving assistance during the period of 
retroactivity.



Sec.261.23  What two-parent work rate must a State meet?

    Each State must achieve a 90 percent minimum two-parent 
participation rate in FY 2006 and thereafter, minus any caseload 
reduction credit to which it is entitled as provided in subpart D of 
this part.



Sec.261.24  How will we determine a State's two-parent work rate?

    (a)(1) The two-parent participation rate for a fiscal year is the 
average of the State's two-parent participation rates for each month in 
the fiscal year.
    (2) The rate applies to two-parent families with two work-eligible 
individuals. However, if one of the parents

[[Page 137]]

is a work-eligible individual with a disability, we will not consider 
the family to be a two-parent family; i.e., we will not include such a 
family in either the numerator or denominator of the two-parent rate.
    (b) We determine a State's two-parent participation rate for the 
month as follows:
    (1) The number of two-parent TANF and SSP-MOE families in which both 
parents are work-eligible individuals and together they meet the 
requirements set forth in Sec.261.32 for the month (i.e., the 
numerator), divided by,
    (2) The number of two-parent TANF and SSP-MOE families in which both 
parents are work-eligible individuals during the month, minus the number 
of such two-parent families that are subject to a penalty for refusing 
to work in that month (the denominator). However, if a family with a 
work-eligible individual has been penalized for more than three months 
of the last 12 months, we will not exclude it from the participation 
rate calculation.
    (3) At State option, we will include in the participation rate 
calculation families with a work-eligible individual that have been 
penalized for refusing to work no more than three of the last 12 months.
    (c) For purposes of the calculation in paragraph (b) of this 
section, a two-parent family includes, at a minimum, all families with 
two natural or adoptive parents (of the same minor child) who are work-
eligible individuals and living in the home, unless both are minors and 
neither is a head-of-household.
    (d)(1) If the family receives assistance for only part of a month, 
we will count it as a month of participation if a work-eligible 
individual in the family (or both work-eligible individuals, if they are 
both required to work) is engaged in work for the minimum average number 
of hours in each full week that the family receives assistance in that 
month.
    (2) If a State pays benefits retroactively (i.e., for the period 
between application and approval of benefits), it has the option to 
consider the family to be receiving assistance during the period of 
retroactivity.



Sec.261.25  Do we count Tribal families in calculating the work 
participation rate?

    At State option, we will include families with a work-eligible 
individual that are receiving assistance under an approved Tribal family 
assistance plan or under a Tribal work program in calculating the 
State's participation rates under Sec. Sec.261.22 and 261.24.



      Subpart C_What Are the Work Activities and How Do They Count?



Sec.261.30  What are the work activities?

    The work activities are:
    (a) Unsubsidized employment;
    (b) Subsidized private-sector employment;
    (c) Subsidized public-sector employment;
    (d) Work experience if sufficient private-sector employment is not 
available;
    (e) On-the-job training (OJT);
    (f) Job search and job readiness assistance;
    (g) Community service programs;
    (h) Vocational educational training;
    (i) Job skills training directly related to employment;
    (j) Education directly related to employment, in the case of a 
recipient who has not received a high school diploma or a certificate of 
high school equivalency;
    (k) Satisfactory attendance at secondary school or in a course of 
study leading to a certificate of general equivalence, if a recipient 
has not completed secondary school or received such a certificate; and
    (l) Providing child care services to an individual who is 
participating in a community service program.



Sec.261.31  How many hours must a work-eligible individual 
participate for the family to count in the numerator of the
overall rate?

    (a) Subject to paragraph (d) of this section, a family with a work-
eligible individual counts as engaged in work for a month for the 
overall rate if:
    (1) He or she participates in work activities during the month for 
at least a minimum average of 30 hours per week; and

[[Page 138]]

    (2) At least 20 of the above hours per week come from participation 
in the activities listed in paragraph (b) of this section.
    (b) The following nine activities count toward the first 20 hours of 
participation: unsubsidized employment; subsidized private-sector 
employment; subsidized public-sector employment; work experience; on-
the-job training; job search and job readiness assistance; community 
service programs; vocational educational training; and providing child 
care services to an individual who is participating in a community 
service program.
    (c) Above 20 hours per week, the following three activities may also 
count as participation: job skills training directly related to 
employment; education directly related to employment; and satisfactory 
attendance at secondary school or in a course of study leading to a 
certificate of general equivalence.
    (d)(1) We will deem a work-eligible individual who participates in a 
work experience or community service program for the maximum number of 
hours per month that a State may require by dividing the combined 
monthly TANF or SSP-MOE grant and food stamp allotment by the higher of 
the Federal or State minimum wage to have participated for an average of 
20 hours per week for the month in that activity.
    (2) This policy is limited to States that have adopted a Simplified 
Food Stamp Program option that permits a State to count the value of 
food stamps in determining the maximum core hours of participation 
permitted by the FLSA.
    (3) In order for Puerto Rico, which does not have a traditional Food 
Stamp Program, to deem core hours, it must include the value of food 
assistance benefits provided through the Nutrition Assistance Program in 
the same manner as a State must include food stamp benefits under 
subsection (d)(1).

[73 FR 6823, Feb. 5, 2008]



Sec.261.32  How many hours must work-eligible individuals participate
for the family to count in the numerator of the two-parent rate?

    (a) Subject to paragraph (d) of this section, a family with two 
work-eligible parents counts as engaged in work for the month for the 
two-parent rate if:
    (1) Work-eligible parents in the family are participating in work 
activities for a combined average of at least 35 hours per week during 
the month, and
    (2) At least 30 of the 35 hours per week come from participation in 
the activities listed in paragraph (b) of this section.
    (b) The following nine activities count for the first 30 hours of 
participation: unsubsidized employment; subsidized private-sector 
employment; subsidized public-sector employment; work experience; on-
the-job training; job search and job readiness assistance; community 
service programs; vocational educational training; and providing child 
care services to an individual who is participating in a community 
service program.
    (c) Above 30 hours per week, the following three activities may also 
count for participation: job skills training directly related to 
employment; education directly related to employment; and satisfactory 
attendance at secondary school or in a course of study leading to a 
certificate of general equivalence.
    (d)(1) We will deem a family with two work-eligible parents in which 
one or both participates in a work experience or community service 
program for the maximum number of hours per month that a State may 
require by dividing the combined monthly TANF or SSP-MOE grant and food 
stamp allotment by the higher of the Federal or State minimum wage to 
have participated for an average of 30 hours per week for the month in 
that activity.
    (2) This policy is limited to States that have adopted a Simplified 
Food Stamp Program option that permits a State to count the value of 
food stamps in determining the maximum core hours of participation 
permitted by the FLSA.
    (3) In order for Puerto Rico, which does not have a traditional Food

[[Page 139]]

Stamp Program, to deem core hours, it must include the value of food 
assistance benefits provided through the Nutrition Assistance Program in 
the same manner as a State must include food stamp benefits under 
paragraph (d)(1) of this section.
    (e)(1) Subject to paragraph (f) of this section, if the family 
receives federally funded child care assistance and an adult in the 
family does not have a disability or is not caring for a child with a 
disability, then the work-eligible individuals must be participating in 
work activities for an average of at least 55 hours per week to count as 
a two-parent family engaged in work for the month.
    (2) At least 50 of the 55 hours per week must come from 
participation in the activities listed in paragraph (b) of this section.
    (3) Above 50 hours per week, the three activities listed in 
paragraph (c) of this section may also count as participation.
    (f)(1) We will deem a family with two work-eligible parents in which 
one or both participates in a work experience or community service 
program for the maximum number of hours per month that a State may 
require by dividing the combined monthly TANF or SSP-MOE grant and food 
stamp allotment by the higher of the Federal or State minimum wage to 
have participated for an average of 50 hours per week for the month in 
that activity.
    (2) This policy is limited to States that have adopted a Simplified 
Food Stamp Program option that permits a State to count the value of 
food stamps in determining the maximum core hours of participation 
permitted by the FLSA.
    (3) In order for Puerto Rico, which does not have a traditional Food 
Stamp Program, to deem core hours, it must include the value of food 
assistance benefits provided through the Nutrition Assistance Program in 
the same manner as a State must include food stamp benefits under 
paragraph (d)(1) of this section.

[73 FR 6823, Feb. 5, 2008]



Sec.261.33  What are the special requirements concerning educational
activities in determining monthly participation rates?

    (a) Vocational educational training may only count for a total of 12 
months for any individual.
    (b)(1) A recipient who is married or a single head-of-household 
under 20 years old counts as engaged in work in a month if he or she:
    (i) Maintains satisfactory attendance at a secondary school or the 
equivalent during the month; or
    (ii) Participates in education directly related to employment for an 
average of at least 20 hours per week during the month.
    (2)(i) For a married recipient, such participation counts as the 
greater of 20 hours or the actual hours of participation.
    (ii) If both parents in the family are under 20 years old, the 
requirements at Sec.261.32(d) are met if both meet the conditions of 
paragraphs (b)(1)(i) or (b)(1)(ii) of this section.
    (c) In counting individuals for each participation rate, not more 
than 30 percent of individuals engaged in work in a month may be 
included in the numerator because they are:
    (1) Participating in vocational educational training; and
    (2) In fiscal year 2000 or thereafter, individuals deemed to be 
engaged in work by participating in educational activities described in 
paragraph (b) of this section.



Sec.261.34  Are there any limitations in counting job search and job 
readiness assistance toward the participation rates?

    Yes. There are four limitations concerning job search and job 
readiness assistance.
    (a) Except as provided in paragraph (b) of this section, an 
individual's participation in job search and job readiness assistance 
counts for a maximum of six weeks in the preceding 12-month period.
    (b) If the State's total unemployment rate is at least 50 percent 
greater than the United States' total unemployment rate or if the State 
meets the definition of a ``needy State'', specified at

[[Page 140]]

Sec.260.30 of this chapter, then an individual's participation in job 
search and job readiness assistance counts for a maximum of 12 weeks in 
that 12-month period.
    (c) For purposes of paragraphs (a) and (b) of this section, a week 
equals 20 hours for a work-eligible individual who is a single custodial 
parent with a child under six years of age and equals 30 hours for all 
other work-eligible individuals.
    (d) An individual's participation in job search and job readiness 
assistance does not count for a week that immediately follows four 
consecutive weeks in which the State reports any hours of such 
participation in the preceding 12-month period. For purposes of this 
paragraph a week means seven consecutive days.
    (e) Not more than once for any individual in the preceding 12-month 
period, a State may count three or four days of job search and job 
readiness assistance during a week as a full week of participation. We 
calculate a full week of participation based on the average daily hours 
of participation for three or four days and will prorate participation 
at that level for the remaining one or two days to determine the total 
hours for a five-day week. Any prorated hours of participation must be 
included in the calculation of total hours permitted under the 
limitation in this section.

[73 FR 6824, Feb. 5, 2008]



Sec.261.35  Are there any special work provisions for single custodial
parents?

    Yes. A single custodial parent or caretaker relative with a child 
under age six will count as engaged in work if he or she participates 
for at least an average of 20 hours per week.



Sec.261.36  Do welfare reform waivers affect the calculation of
a State's participation rates?

    A welfare reform waiver could affect the calculation of a State's 
participation rate, pursuant to subpart C of part 260 and section 415 of 
the Act.



 Subpart D_How Will We Determine Caseload Reduction Credit for Minimum 
                          Participation Rates?

    Source: 73 FR 6824, Feb. 5, 2008, unless otherwise noted.



Sec.261.40  Is there a way for a State to reduce the work participation
rates?

    (a)(1) If the average monthly number of cases receiving assistance, 
including assistance under a separate State program (as provided at 
Sec.261.42(b)), in a State in the preceding fiscal year was lower than 
the average monthly number of cases that received assistance, including 
assistance under a separate State program in that State in FY 2005, the 
minimum overall participation rate the State must meet for the fiscal 
year (as provided at Sec.261.21) decreases by the number of percentage 
points the prior-year caseload fell in comparison to the FY 2005 
caseload.
    (2) The minimum two-parent participation rate the State must meet 
for the fiscal year (as provided at Sec.261.23) decreases, at State 
option, by either:
    (i) The number of percentage points the prior-year two-parent 
caseload, including two-parent cases receiving assistance under a 
separate State program (as provided at Sec.261.42(b)), fell in 
comparison to the FY 2005 two-parent caseload, including two-parent 
cases receiving assistance under a separate State program; or
    (ii) The number of percentage points the prior-year overall 
caseload, including assistance under a separate State program (as 
provided at Sec.261.42(b)), fell in comparison to the FY 2005 overall 
caseload, including cases receiving assistance under a separate State 
program.
    (3) For the credit calculation, we will refer to the fiscal year 
that precedes the fiscal year to which the credit applies as the 
``comparison year.''
    (b)(1) The calculations in paragraph (a) of this section must 
disregard caseload reductions due to requirements of Federal law and to 
changes that a State has made in its eligibility criteria in comparison 
to its criteria in effect in FY 2005.

[[Page 141]]

    (2) At State option, the calculation may offset the disregard of 
caseload reductions in paragraph (b)(1) of this section by changes in 
eligibility criteria that increase caseloads.
    (c)(1) To establish the caseload base for FY 2005 and to determine 
the comparison-year caseload, we will use the combined TANF and Separate 
State Program caseload figures reported on the Form ACF-199, TANF Data 
Report, and Form ACF-209, SSP-MOE Data Report, respectively.
    (2) To qualify for a caseload reduction, a State must have reported 
monthly caseload information, including cases in separate State 
programs, for FY 2005 and the comparison year for cases receiving 
assistance as defined at Sec.261.43.
    (d)(1) A State may correct erroneous data or submit accurate data to 
adjust program data or to include unduplicated cases within the fiscal 
year.
    (2) We will adjust both the FY 2005 baseline and the comparison-year 
caseload information, as appropriate, based on these State submissions.
    (e) We refer to the number of percentage points by which a caseload 
falls, disregarding the cases described in paragraph (b) of this 
section, as a caseload reduction credit.



Sec.261.41  How will we determine the caseload reduction credit?

    (a)(1) We will determine the overall and two-parent caseload 
reduction credits that apply to each State based on the information and 
estimates reported to us by the State on eligibility policy changes 
using application denials, case closures, or other administrative data 
sources and analyses.
    (2) We will accept the information and estimates provided by a 
State, unless they are implausible based on the criteria listed in 
paragraph (d) of this section.
    (3) We may conduct on-site reviews and inspect administrative 
records on applications, case closures, or other administrative data 
sources to validate the accuracy of the State estimates.
    (b) In order to receive a caseload reduction credit, a State must 
submit a Caseload Reduction Report to us containing the following 
information:
    (1) A listing of, and implementation dates for, all State and 
Federal eligibility changes, as defined at Sec.261.42, made by the 
State since the beginning of FY 2006;
    (2) A numerical estimate of the positive or negative average monthly 
impact on the comparison-year caseload of each eligibility change 
(based, as appropriate, on application denials, case closures or other 
analyses);
    (3) An overall estimate of the total net positive or negative impact 
on the applicable caseload as a result of all such eligibility changes;
    (4) An estimate of the State's caseload reduction credit;
    (5) A description of the methodology and the supporting data that a 
State used to calculate its caseload reduction estimates; and
    (6) A certification that it has provided the public an appropriate 
opportunity to comment on the estimates and methodology, considered 
their comments, and incorporated all net reductions resulting from 
Federal and State eligibility changes.
    (c)(1) A State requesting a caseload reduction credit for the 
overall participation rate must base its estimates of the impact of 
eligibility changes on decreases in its comparison-year overall caseload 
compared to the FY 2005 overall caseload baseline established in 
accordance with Sec.261.40(d).
    (2) A State requesting a caseload reduction credit for its two-
parent rate must base its estimates of the impact of eligibility changes 
on decreases in either:
    (i) Its two-parent caseload compared to the FY 2005 base-year two-
parent caseload baseline established in accordance with Sec.261.40(d); 
or
    (ii) Its overall caseload compared to the FY 2005 base-year overall 
caseload baseline established in accordance with Sec.261.40(d).
    (d)(1) For each State, we will assess the adequacy of information 
and estimates using the following criteria: Its methodology; Its 
estimates of impact compared to other States; the quality of its data; 
and the completeness and adequacy of its documentation.
    (2) If we request additional information to develop or validate 
estimates,

[[Page 142]]

the State may negotiate an appropriate deadline or provide the 
information within 30 days of the date of our request.
    (3) The State must provide sufficient data to document the 
information submitted under paragraph (b) of this section.
    (e) We will not calculate a caseload reduction credit unless the 
State reports case-record data on individuals and families served by any 
separate State program, as required under Sec.265.3(d) of this 
chapter.
    (f) A State may only apply to the participation rate a caseload 
reduction credit that we have calculated. If a State disagrees with the 
caseload reduction credit, it may appeal the decision as an adverse 
action in accordance with Sec.262.7 of this chapter.



Sec.261.42  Which reductions count in determining the caseload
reduction credit?

    (a)(1) A State's caseload reduction credit must not include caseload 
decreases due to Federal requirements or State changes in eligibility 
rules since FY 2005 that directly affect a family's eligibility for 
assistance. These include, but are not limited to, more stringent income 
and resource limitations, time limits, full family sanctions, and other 
new requirements that deny families assistance when an individual does 
not comply with work requirements, cooperate with child support, or 
fulfill other behavioral requirements.
    (2) At State option, a State's caseload reduction credit may include 
caseload increases due to Federal requirements or State changes in 
eligibility rules since FY 2005 if used to offset caseload decreases in 
paragraph (a)(1) of this section.
    (3) A State may not receive a caseload reduction credit that exceeds 
the actual caseload decline between FY 2005 and the comparison year.
    (4) A State may count the reductions attributable to enforcement 
mechanisms or procedural requirements that are used to enforce existing 
eligibility criteria (e.g., fingerprinting or other verification 
techniques) to the extent that such mechanisms or requirements identify 
or deter families otherwise ineligible under existing rules.
    (b) A State must include cases receiving assistance in separate 
State programs as part of its FY 2005 caseload and comparison-year 
caseload. However, if a State provides documentation that separate State 
program cases overlap with or duplicate cases in the TANF caseload, we 
will exclude them from the caseload count.



Sec.261.43  What is the definition of a ``case receiving assistance''
in calculating the caseload reduction credit?

    (a) The caseload reduction credit is based on decreases in caseloads 
receiving TANF- or SSP-MOE-funded assistance (other than those excluded 
pursuant to Sec.261.42).
    (b)(1) A State that is investing State MOE funds in excess of the 
required 80 percent or 75 percent basic MOE amount need only include the 
pro rata share of caseloads receiving assistance that is required to 
meet basic MOE requirements.
    (2) For purposes of paragraph (b)(1) of this section, a State may 
exclude from the overall caseload reduction credit calculation the 
number of cases funded with excess MOE. This number is calculated by 
dividing annual excess MOE expenditures on assistance by the average 
monthly expenditures on assistance per case for the fiscal year,
    (i) Where annual excess MOE expenditures on assistance equal total 
annual MOE expenditures minus the percentage of historic State 
expenditures specified in paragraph (v) of this section, multiplied by 
the percentage that annual expenditures on assistance (both Federal and 
State) represent of all annual expenditures, and
    (ii) Where the average monthly assistance expenditures per case for 
the fiscal year equal the sum of annual TANF and SSP-MOE assistance 
expenditures (both Federal and State) divided by the average monthly sum 
of TANF and SSP-MOE caseloads for the fiscal year.
    (iii) If the excess MOE calculation is for a separate two-parent 
caseload reduction credit, we multiply the number of cases funded with 
excess MOE by the average monthly percentage of two-

[[Page 143]]

parent cases in the State's total (TANF plus SSP-MOE) average monthly 
caseload.
    (iv) All financial data must agree with data reported on the TANF 
Financial Report (form ACF-196) and all caseload data must agree with 
data reported on the TANF Data and SSP-MOE Data Reports (forms ACF-199 
and ACF-209).
    (v) The State must use 80 percent of historic expenditures when 
calculating excess MOE; however if it has met the work participation 
requirements for the year, it may use 75 percent of historic 
expenditures.



Sec.261.44  When must a State report the required data on the 
caseload reduction credit?

    A State must report the necessary documentation on caseload 
reductions for the preceding fiscal year by December 31.



 Subpart E_What Penalties Apply to States Related to Work Requirements?



Sec.261.50  What happens if a State fails to meet the participation rates?

    (a) If we determine that a State did not achieve one of the required 
minimum work participation rates, we must reduce the SFAG payable to the 
State.
    (b)(1) If there was no penalty for the preceding fiscal year, the 
base penalty for the current fiscal year is five percent of the adjusted 
SFAG.
    (2) For each consecutive year that the State is subject to a penalty 
under this part, we will increase the amount of the base penalty by two 
percentage points over the previous year's penalty. However, the penalty 
can never exceed 21 percent of the State's adjusted SFAG.
    (c) We impose a penalty by reducing the SFAG payable for the fiscal 
year that immediately follows our final determination that a State is 
subject to a penalty and our final determination of the penalty amount.
    (d) In accordance with the procedures specified at Sec.262.4 of 
this chapter, a State may dispute our determination that it is subject 
to a penalty.



Sec.261.51  Under what circumstances will we reduce the amount of
the penalty below the maximum?

    (a) We will reduce the amount of the penalty based on the degree of 
the State's noncompliance.
    (1) If the State fails only the two-parent participation rate 
specified at Sec.261.23, reduced by any applicable caseload reduction 
credit, its maximum penalty will be a percentage of the penalty 
specified at Sec.261.50. This percentage will equal the percentage of 
two-parent cases in the State's total caseload.
    (2) If the State fails the overall participation rate specified at 
Sec.261.21, reduced by any applicable caseload reduction credit, or 
both rates, its maximum penalty will be the penalty specified at Sec.
261.50.
    (b)(1) In order to receive a reduction of the penalty amounts 
determined under paragraphs (a)(1) or (a)(2) of this section:
    (i) The State must achieve participation rates equal to a threshold 
level defined as 50 percent of the applicable minimum participation rate 
at Sec.261.21 or Sec.261.23, minus any caseload reduction credit 
determined pursuant to subpart D of this part; and
    (ii) The adjustment factor for changes in the number of individuals 
engaged in work, described in paragraph (b)(4) of this section, must be 
greater than zero.
    (2) If the State meets the requirements of paragraph (b)(1) of this 
section, we will base its reduction on the severity of the failure. For 
this purpose, we will calculate the severity of the State's failure 
based on:
    (i) The degree to which it missed the target rate;
    (ii) An adjustment factor that accounts for changes in the number of 
individuals who are engaged in work in the State since the prior year; 
and
    (iii) The number of consecutive years in which the State failed to 
meet the participation rates and the number of rates missed.
    (3) We will determine the degree to which the State missed the 
target rate using the ratio of the following two factors:
    (i) The difference between the participation rate achieved by the 
State

[[Page 144]]

and the 50-percent threshold level (adjusted for any caseload reduction 
credit determined pursuant to subpart D of this part); and
    (ii) The difference between the minimum applicable participation 
rate and the threshold level (both adjusted for any caseload reduction 
credit determined pursuant to subpart D of this part).
    (4) We will calculate the adjustment factor for changes in the 
number of individuals engaged in work using the following formula:
    (i) The average monthly number of individuals engaged in work in the 
penalty year minus the average monthly number of individuals engaged in 
work in the prior year, divided by,
    (ii) The product of 0.15 and the average monthly number of 
individuals engaged in work in the prior year.
    (5) Subject to paragraph (c) of this section, if the State fails 
only the two-parent participation rate specified at Sec.261.23, and 
qualifies for a penalty reduction under paragraph (b)(1) of this 
section, its penalty reduction will be the product of:
    (i) The amount determined in paragraph (a)(1) of this section;
    (ii) The ratio described in paragraph (b)(3) of this section 
computed with respect to two-parent families; and
    (iii) The adjustment factor described in paragraph (b)(4) of this 
section computed with respect to two-parent families.
    (6) Subject to paragraph (c) of this section, if the State fails the 
overall participation rate specified at Sec.261.21, or both rates, and 
qualifies for a penalty reduction under paragraph (b)(1) of this 
section, its penalty reduction will be the product of:
    (i) The amount determined in paragraph (a)(2) of this section;
    (ii) The ratio described in paragraph (b)(3) of this section 
computed with respect to all families; and
    (iii) The adjustment factor described in paragraph (b)(4) of this 
section.
    (7) Pursuant to Sec.260.58 of this chapter, we will adjust the 
calculations in this section to exclude cases for which a State has 
granted federally recognized good cause domestic violence waivers.
    (c)(1) If the State was not subject to a penalty the prior year, the 
State will receive:
    (i) The full applicable penalty reduction described in paragraph 
(b)(5) or (b)(6) of this section if it failed only one participation 
rate; or
    (ii) 50 percent of the penalty reduction described in paragraph 
(b)(6) of this section if it failed both participation rates.
    (2) If the penalty year is the second successive year in which the 
State is subject to a penalty, the State will receive:
    (i) 50 percent of the applicable penalty reduction described in 
paragraph (b)(5) or (b)(6) of this section if it failed only one 
participation rate; or
    (ii) 25 percent of the penalty reduction described in paragraph 
(b)(6) of this section if it failed both participation rates.
    (3) If the penalty year is the third or greater successive year in 
which the State is subject to a penalty, the State will not receive a 
penalty reduction described in paragraph (b)(5) or (b)(6) of this 
section.
    (d)(1) We may reduce the penalty if the State failed to achieve a 
participation rate because:
    (i) It meets the definition of a needy State, specified at Sec.
260.30 of this chapter; or,
    (ii) Noncompliance is due to extraordinary circumstances such as a 
natural disaster, regional recession, or substantial caseload increase.
    (2) In determining noncompliance under paragraph (d)(1)(ii) of this 
section, we will consider such objective evidence of extraordinary 
circumstances as the State chooses to submit.



Sec.261.52  Is there a way to waive the State's penalty for failing
to achieve either of the participation rates?

    (a) We will not impose a penalty under this part if we determine 
that the State has reasonable cause for its failure.
    (b) In addition to the general reasonable cause criteria specified 
at Sec.262.5 of this chapter, a State may also submit a request for a 
reasonable cause exemption from the requirement to meet the

[[Page 145]]

minimum participation rate in two specific case situations.
    (1) We will determine that a State has reasonable cause if it 
demonstrates that failure to meet the work participation rates is 
attributable to its provision of federally recognized good cause 
domestic violence waivers (i.e., it provides evidence that it achieved 
the applicable work rates when individuals receiving federally 
recognized good cause domestic violence waivers of work requirements, in 
accordance with the provisions at Sec. Sec.260.54(b) and 260.55 of 
this chapter, are removed from the calculations in Sec. Sec.261.22(b) 
and 261.24(b)).
    (2) We will determine that a State has reasonable cause if it 
demonstrates that its failure to meet the work participation rates is 
attributable to its provision of assistance to refugees in federally 
approved alternative projects under section 412(e)(7) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)(7)).
    (c) In accordance with the procedures specified at Sec.262.4 of 
this chapter, a State may dispute our determination that it is subject 
to a penalty.



Sec.261.53  May a State correct the problem before incurring
a penalty?

    (a) Yes. A State may enter into a corrective compliance plan to 
remedy a problem that caused its failure to meet a participation rate, 
as specified at Sec.262.6 of this chapter.
    (b) To qualify for a penalty reduction under Sec.262.6(j)(1) of 
this chapter, based on significant progress towards correcting a 
violation, a State must reduce the difference between the participation 
rate it achieved in the year for which it is subject to a penalty and 
the rate applicable during the penalty year (adjusted for any caseload 
reduction credit determined pursuant to subpart D of this part) by at 
least 50 percent.



Sec.261.54  Is a State subject to any other penalty relating to its
work program?

    (a) If we determine that, during a fiscal year, a State has violated 
section 407(e) of the Act, relating to imposing penalties against 
individuals, we must reduce the SFAG payable to the State.
    (b) The penalty amount for a fiscal year will equal between one and 
five percent of the adjusted SFAG.
    (c) We impose a penalty by reducing the SFAG payable for the fiscal 
year that immediately follows our final determination that a State is 
subject to a penalty and our final determination of the penalty amount.



Sec.261.55  Under what circumstances will we reduce the amount of the 
penalty for not properly imposing penalties on individuals?

    (a) We will reduce the amount of the penalty based on the degree of 
the State's noncompliance.
    (b) In determining the size of any reduction, we will consider 
objective evidence of:
    (1) Whether the State has established a control mechanism to ensure 
that the grants of individuals are appropriately reduced for refusing to 
engage in required work; and
    (2) The percentage of cases for which the grants have not been 
appropriately reduced.



Sec.261.56  What happens if a parent cannot obtain needed child care?

    (a)(1) If the individual is a single custodial parent caring for a 
child under age six, the State may not reduce or terminate assistance 
based on the parent's refusal to engage in required work if he or she 
demonstrates an inability to obtain needed child care for one or more of 
the following reasons:
    (i) Appropriate child care within a reasonable distance from the 
home or work site is unavailable;
    (ii) Informal child care by a relative or under other arrangements 
is unavailable or unsuitable; or
    (iii) Appropriate and affordable formal child care arrangements are 
unavailable.
    (2) Refusal to work when an acceptable form of child care is 
available is not protected from sanctioning.
    (b)(1) The State will determine when the individual has demonstrated 
that he or she cannot find child care, in accordance with criteria 
established by the State.
    (2) These criteria must:
    (i) Address the procedures that the State uses to determine if the 
parent

[[Page 146]]

has a demonstrated inability to obtain needed child care;
    (ii) Include definitions of the terms ``appropriate child care,'' 
``reasonable distance,'' ``unsuitability of informal care,'' and 
``affordable child care arrangements''; and
    (iii) Be submitted to us.
    (c) The TANF agency must inform parents about:
    (1) The penalty exception to the TANF work requirement, including 
the criteria and applicable definitions for determining whether an 
individual has demonstrated an inability to obtain needed child care;
    (2) The State's process or procedures (including definitions) for 
determining a family's inability to obtain needed child care, and any 
other requirements or procedures, such as fair hearings, associated with 
this provision; and
    (3) The fact that the exception does not extend the time limit for 
receiving Federal assistance.

[64 FR 17884, Apr. 12, 1999; 64 FR 40291, July 26, 1999]



Sec.261.57  What happens if a State sanctions a single parent of a 
child under six who cannot get needed child care?

    (a) If we determine that a State has not complied with the 
requirements of Sec.261.56, we will reduce the SFAG payable to the 
State by no more than five percent for the immediately succeeding fiscal 
year unless the State demonstrates to our satisfaction that it had 
reasonable cause or it achieves compliance under a corrective compliance 
plan pursuant to Sec. Sec.262.5 and 262.6 of this chapter.
    (b) We will impose the maximum penalty if:
    (1) The State does not have a statewide process in place to inform 
parents about the exception to the work requirement and enable them to 
demonstrate that they have been unable to obtain child care; or
    (2) There is a pattern of substantiated complaints from parents or 
organizations verifying that a State has reduced or terminated 
assistance in violation of this requirement.
    (c) We may impose a reduced penalty if the State demonstrates that 
the violations were isolated or that they affected a minimal number of 
families.



     Subpart F_How Do We Ensure the Accuracy of Work Participation 
                              Information?

    Source: 73 FR 6826, Feb. 5, 2008, unless otherwise noted.



Sec.261.60  What hours of participation may a State report for a 
work-eligible individual?

    (a) A State must report the actual hours that an individual 
participates in an activity, subject to the qualifications in paragraphs 
(b) and (c) of this section and Sec.261.61(c). It is not sufficient to 
report the hours an individual is scheduled to participate in an 
activity.
    (b) For the purposes of calculating the work participation rates for 
a month, actual hours may include the hours for which an individual was 
paid, including paid holidays and sick leave. For participation in 
unpaid work activities, it may include excused absences for hours missed 
due to a maximum of 10 holidays in the preceding 12-month period and up 
to 80 hours of additional excused absences in the preceding 12-month 
period, no more than 16 of which may occur in a month, for each work-
eligible individual. Each State must designate the days that it wishes 
to count as holidays for those in unpaid activities in its Work 
Verification Plan. It may designate no more than 10 such days. In order 
to count an excused absence as actual hours of participation, the 
individual must have been scheduled to participate in a countable work 
activity for the period of the absence that the State reports as 
participation. A State must describe its excused absence policies and 
definitions as part of its Work Verification Plan, specified at Sec.
261.62.
    (c) For unsubsidized employment, subsidized employment, and OJT, a 
State may report projected actual hours of employment participation for 
up to six months based on current, documented actual hours of work. Any 
time a State receives information that the client's actual hours of work 
have changed, or no later than the end of any six-month period, the 
State must

[[Page 147]]

re-verify the client's current actual average hours of work, and may 
report these projected actual hours of participation for another six-
month period.
    (d) A State may not count more hours toward the participation rate 
for a self-employed individual than the number derived by dividing the 
individual's self-employment income (gross income less business 
expenses) by the Federal minimum wage. A State may propose an 
alternative method of determining self-employment hours as part of its 
Work Verification Plan.
    (e) A State may count supervised homework time and up to one hour of 
unsupervised homework time for each hour of class time. Total homework 
time counted for participation cannot exceed the hours required or 
advised by a particular educational program.



Sec.261.61  How must a State document a work-eligible individual's 
hours of participation?

    (a) A State must support each individual's hours of participation 
through documentation in the case file. In accordance with Sec.261.62, 
a State must describe in its Work Verification Plan the documentation it 
uses to verify hours of participation in each activity.
    (b) For an employed individual, the documentation may consist of, 
but is not limited to pay stubs, employer reports, or time and 
attendance records substantiating hours of participation. A State may 
presume that an employed individual participated for the total number of 
hours for which that individual was paid.
    (c) The State must document all hours of participation in an 
activity; however, if a State is reporting projected hours of actual 
employment in accordance with Sec.261.60(c), it need only document the 
hours on which it bases the projection.
    (d) For an individual who is self-employed, the documentation must 
comport with standards set forth in the State's approved Work 
Verification Plan. Self-reporting by a participant without additional 
verification is not sufficient documentation.
    (e) For an individual who is not employed, the documentation for 
substantiating hours of participation may consist of, but is not limited 
to, time sheets, service provider attendance records, or school 
attendance records. For homework time, the State must also document the 
homework or study expectations of the educational program.



Sec.261.62  What must a State do to verify the accuracy of its work
participation information?

    (a) To ensure accuracy in the reporting of work activities by work-
eligible individuals on the TANF Data Report and, if applicable, the 
SSP-MOE Data Report, each State must:
    (1) Establish and employ procedures for determining whether its work 
activities may count for participation rate purposes;
    (2) Establish and employ procedures for determining how to count and 
verify reported hours of work;
    (3) Establish and employ procedures for identifying who is a work-
eligible individual;
    (4) Establish and employ internal controls to ensure compliance with 
the procedures; and
    (5) Submit to the Secretary for approval the State's Work 
Verification Plan in accordance with paragraph (b) of this section.
    (b) A State's Work Verification Plan must include the following:
    (1) For each countable work activity:
    (i) A description demonstrating how the activity meets the relevant 
definition at Sec.261.2;
    (ii) A description of how the State determines the number of 
countable hours of participation; and
    (iii) A description of the documentation it uses to monitor 
participation and ensure that the actual hours of participation are 
reported;
    (2) A description of the State's procedures for identifying all 
work-eligible individuals, as defined at Sec.261.2;
    (3) A description of how the State ensures that, for each work-
eligible individual, it:
    (i) Accurately inputs data into the State's automated data 
processing system;
    (ii) Properly tracks the hours though the automated data processing 
system; and
    (iii) Accurately reports the hours to the Department;

[[Page 148]]

    (4) A description of the procedures for ensuring it does not 
transmit to the Department a work-eligible individual's hours of 
participation in an activity that does not meet a Federal definition of 
a countable work activity; and
    (5) A description of the internal controls that the State has 
implemented to ensure a consistent measurement of the work participation 
rates, including the quality assurance processes and sampling 
specifications it uses to monitor adherence to the established work 
verification procedures by State staff, local staff, and contractors.
    (c) We will review a State's Work Verification Plan for completeness 
and approve it if we believe that it will result in accurate reporting 
of work participation information.



Sec.261.63  When is a State's Work Verification Plan due?

    (a) Each State must submit its interim Work Verification Plan for 
validating work activities reported in the TANF Data Report and, if 
applicable, the SSP-MOE Data Report no later than September 30, 2006.
    (b) If HHS requires changes, a State must submit them within 60 days 
of receipt of our notice and include all necessary changes as part of a 
final approved Work Verification Plan no later than September 30, 2007.
    (c) If a State modifies its verification procedures for TANF or SSP-
MOE work activities or its internal controls for ensuring a consistent 
measurement of the work participation rate, the State must submit for 
approval an amended Work Verification Plan by the end of the quarter in 
which the State modifies the procedures or internal controls.



Sec.261.64  How will we determine whether a State's work verification
procedures ensure an accurate work participation measurement?

    (a) We will determine that a State has met the requirement to 
establish work verification procedures if it submitted an interim Work 
Verification Plan by September 30, 2006 and a complete Work Verification 
Plan that we approved by September 30, 2007.
    (b) A ``complete'' Work Verification Plan means that:
    (1) The plan includes all the information required by Sec.
261.62(b); and
    (2) The State certifies that the plan includes all the information 
required by Sec.261.62(b) and that it accurately reflects the 
procedures under which the State is operating.
    (c) For conduct occurring after October 1, 2007, we will use 45 CFR 
part 75, subpart F in conjunction with other reviews, audits, and data 
sources, as appropriate, to assess the accuracy of the data filed by 
States for use in calculating the work participation rates.

[73 FR 6826, Feb. 5, 2008, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.261.65  Under what circumstances will we impose a work verification
penalty?

    (a) We will take action to impose a penalty under Sec.262.1(a)(15) 
of this chapter if:
    (1) The requirements under Sec.261.64(a) and (b) have not been 
met; or
    (2) We determine that the State has not maintained adequate 
documentation, verification, or internal control procedures to ensure 
the accuracy of the data used in calculating the work participation 
rates.
    (b) If a State fails to submit an interim or complete Work 
Verification Plan by the due dates in Sec.261.64(a), we will reduce 
the SFAG payable for the immediately succeeding fiscal year by five 
percent of the adjusted SFAG.
    (c) If a State fails to maintain adequate internal controls to 
ensure a consistent measurement of work participation, we will reduce 
the adjusted SFAG by the following percentages for a fiscal year:
    (1) One percent for the first year;
    (2) Two percent for second year;
    (3) Three percent for the third year;
    (4) Four percent for the fourth year; and,
    (5) Five percent for the fifth and subsequent years.
    (d) If a State complies with the requirements in this subpart for 
two consecutive years, then any penalty imposed for subsequent failures 
will begin anew, as described in paragraph (c) of this section.

[[Page 149]]

    (e) If we take action to impose a penalty under Sec.261.64(b) or 
(c), we will reduce the SFAG payable for the immediately succeeding 
fiscal year.



           Subpart G_What Nondisplacement Rules Apply in TANF?



Sec.261.70  What safeguards are there to ensure that participants
in work activities do not displace other workers?

    (a) An adult taking part in a work activity outlined in Sec.261.30 
may not fill a vacant employment position if:
    (1) Another individual is on layoff from the same or any 
substantially equivalent job; or
    (2) The employer has terminated the employment of any regular 
employee or caused an involuntary reduction in its work force in order 
to fill the vacancy with an adult taking part in a work activity.
    (b) A State must establish and maintain a grievance procedure to 
resolve complaints of alleged violations of the displacement rule in 
this section.
    (c) This section does not preempt or supersede State or local laws 
providing greater protection for employees from displacement.



     Subpart H_How Do Welfare Reform Waivers Affect State Penalties?



Sec.261.80  How do existing welfare reform waivers affect a State's
penalty liability under this part?

    A welfare reform waiver could affect a State's penalty liability 
under this part, subject to subpart C of part 260 of this chapter and 
section 415 of the Act.

[64 FR 17884, Apr. 12, 1999. Redesignated at 71 FR 37479, June 29, 2006]



PART 262_ACCOUNTABILITY PROVISIONS_GENERAL--Table of Contents



Sec.
262.0 What definitions apply to this part?
262.1 What penalties apply to States?
262.2 When do the TANF penalty provisions apply?
262.3 How will we determine if a State is subject to a penalty?
262.4 What happens if we determine that a State is subject to a penalty?
262.5 Under what general circumstances will we determine that a State 
          has reasonable cause?
262.6 What happens if a State does not demonstrate reasonable cause?
262.7 How can a State appeal our decision to take a penalty?

    Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 606, 609, and 610; Sec. 
7102, Pub. L. 109-171, 120 Stat. 135; Sec. 4004, Pub. L. 112-96, 126 
Stat. 197.

    Source: 64 FR 17890, Apr. 12, 1999, unless otherwise noted.



Sec.262.0  What definitions apply to this part?

    The general TANF definitions at Sec. Sec.260.30 through 260.33 of 
this chapter apply to this part.



Sec.262.1  What penalties apply to States?

    (a) We will assess fiscal penalties against States under 
circumstances defined in parts 261 through 265 of this chapter. The 
penalties are:
    (1) A penalty of the amount by which a State misused its TANF funds;
    (2) An additional penalty of five percent of the adjusted SFAG if 
such misuse was intentional;
    (3) A penalty of four percent of the adjusted SFAG for each quarter 
a State fails to submit an accurate, complete and timely required 
report;
    (4) A penalty of up to 21 percent of the adjusted SFAG for failure 
to satisfy the minimum participation rates;
    (5) A penalty of no more than two percent of the adjusted SFAG for 
failure to participate in IEVS;
    (6) A penalty of no more than five percent of the adjusted SFAG for 
failure to enforce penalties on recipients who are not cooperating with 
the State Child Support Enforcement (IV-D) agency;
    (7) A penalty equal to the outstanding loan amount, plus interest, 
for failure to repay a Federal loan;
    (8) A penalty equal to the amount by which a State fails to meet its 
basic MOE requirement;
    (9) A penalty of five percent of the adjusted SFAG for failure to 
comply with the five-year limit on Federal assistance;
    (10) A penalty equal to the amount of contingency funds that were 
received but were not remitted for a fiscal year,

[[Page 150]]

if the State fails to maintain 100 percent of historic State 
expenditures in that fiscal year;
    (11) A penalty of no more than five percent of the adjusted SFAG for 
the failure to maintain assistance to an adult single custodial parent 
who cannot obtain child care for a child under age six;
    (12) A penalty of no more than two percent of the adjusted SFAG plus 
the amount a State has failed to expend of its own funds to replace the 
reduction to its SFAG due to the assessment of penalties in this section 
in the immediately succeeding fiscal year;
    (13) A penalty equal to the amount of the State's Welfare-to-Work 
formula grant for failure to meet its basic MOE requirement during a 
year in which it receives the formula grant;
    (14) A penalty of not less than one percent and not more than five 
percent of the adjusted SFAG for failure to impose penalties properly 
against individuals who refuse to engage in required work in accordance 
with section 407 of the Act; and
    (15) A penalty of not less than one percent and not more than five 
percent of the adjusted SFAG for failure to establish or comply with 
work participation verification procedures.
    (16)(i) A penalty of not more than five percent of the adjusted SFAG 
(in accordance with Sec.264.61(a) of this chapter), for failure to 
report annually on the state's implementation and maintenance of 
policies and practices required in Sec.264.60 of this chapter.
    (ii) A penalty of not more than five percent of the adjusted SFAG 
(in accordance with Sec.264.61(b) of this chapter), for FY 2014 and 
each succeeding fiscal year in which the state does not demonstrate that 
it has implemented and maintained policies and practices required in 
Sec.264.60 of this chapter.
    (iii) The penalty under paragraphs (a)(16)(i) and (ii) of this 
section may be reduced based on the degree of noncompliance of the 
state.
    (iv) Fraudulent activity by any individual receiving TANF assistance 
in an attempt to circumvent the policies and practices required by Sec.
264.60 of this chapter shall not trigger a state penalty under 
paragraphs (a)(16)(i) and (ii) of this section.
    (b) In the event of multiple penalties for a fiscal year, we will 
add all applicable penalty percentages together. We will then assess the 
penalty amount against the adjusted SFAG that would have been payable to 
the State if we had assessed no penalties. As a final step, we will 
subtract other (fixed) penalty amounts from the adjusted SFAG.
    (c)(1) We will take the penalties specified in paragraphs (a)(1), 
(a)(2), and (a)(7) of this section by reducing the SFAG payable for the 
quarter that immediately follows our final decision.
    (2) We will take the penalties specified in paragraphs (a)(3) 
through (6) and (8) through (16) of this section by reducing the SFAG 
payable for the fiscal year that immediately follows our final decision.
    (d) When imposing the penalties in paragraph (a) of this section, 
the total reduction in an affected State's quarterly SFAG amount must 
not exceed 25 percent. If this 25-percent limit prevents the recovery of 
the full penalty amount imposed on a State during a quarter or a fiscal 
year, as appropriate, we will apply the remaining amount of the penalty 
to the SFAG payable for the immediately succeeding quarter until we 
recover the full penalty amount.
    (e)(1) In the immediately succeeding fiscal year, a State must 
expend additional State funds to replace any reduction in the SFAG 
resulting from penalties.
    (2) The State must document compliance with this replacement 
provision on its TANF Financial Report (or Territorial Financial 
Report).

[64 FR 17890, Apr. 12, 1999, as amended at 71 FR 37480, June 29, 2006; 
81 FR 2104, Jan. 15, 2016]



Sec.262.2  When do the TANF penalty provisions apply?

    (a) A State will be subject to the penalties specified in Sec.
262.1(a)(1), (2), (7), (8), (9), (10), (11), (12), (13), and (14) for 
conduct occurring on and after the first day the State operates the TANF 
program.
    (b) A State will be subject to the penalties specified in Sec.
262.1(a)(3), (4), (5), and (6) for conduct occurring on and after July 
1, 1997, or the date that is six months after the first day the State

[[Page 151]]

operates the TANF program, whichever is later.
    (c) For the time period prior to October 1, 1999, we will assess 
State conduct as specified in Sec.260.40(b) of this chapter.
    (d) The penalty specified in Sec.262.1(a)(15) takes effect on 
October 1, 2006, for failure to establish work participation 
verification procedures and on October 1, 2007, for failure to comply 
with those procedures.
    (e) In accordance with Sec.264.61(a) and (b) of this chapter, the 
penalty specified in Sec.262.1(a)(16) will be imposed for FY 2014 and 
each succeeding fiscal year.

[64 FR 17890, Apr. 12, 1999, as amended at 71 FR 37480, June 29, 2006; 
81 FR 2105, Jan. 15, 2016]



Sec.262.3  How will we determine if a State is subject to a penalty?

    (a)(1) We will use the single audit under 45 CFR part 75, subpart F, 
in conjunction with other reviews, audits, and data sources, as 
appropriate, to determine if a State is subject to a penalty for 
misusing Federal TANF funds (Sec.263.10 of this chapter), 
intentionally misusing Federal TANF funds (Sec.263.12 of this 
chapter), failing to participate in IEVS (Sec.264.10 of this chapter), 
failing to comply with paternity establishment and child support 
requirements (Sec.264.31 of this chapter), failing to maintain 
assistance to an adult single custodial parent who cannot obtain child 
care for a child under 6 (Sec.261.57 of this chapter), failing to 
reduce assistance to a recipient who refuses without good cause to work 
(Sec.261.54 of this chapter), and after October 1, 2007 failing to 
comply with work participation verification procedures (Sec.261.64 of 
this chapter).
    (2) We will also use the single audit as a secondary method of 
determining if a State is subject to other penalties if an audit detects 
lack of compliance in other penalty areas.
    (b)(1) We will use the TANF Data Report required under part 265 of 
this chapter to determine if a State failed to meet participation rates 
(Sec. Sec.261.21 and 261.23 of this chapter) or failed to comply with 
the five-year limit on Federal assistance (Sec.264.1 of this chapter).
    (2) Data in these reports are subject to our verification in 
accordance with Sec.265.7 of this chapter.
    (c)(1) We will use the TANF Financial Report (or, as applicable, the 
Territorial Financial Report) as the primary method for determining if a 
State has failed to meet the basic MOE requirement (Sec.263.8 of this 
chapter), meet the Contingency Fund MOE requirement (Sec.264.76 of 
this chapter), or replace SFAG reductions with State-only funds (Sec.
264.50 of this chapter).
    (2) Data in these reports are subject to our verification in 
accordance with Sec.265.7 of this chapter.
    (d) We will determine that a State is subject to the specific 
penalties for failure to perform if we find information in the reports 
under paragraphs (b) and (c) of this section to be insufficient to show 
compliance or if we determine that the State has not adequately 
documented actions verifying that it has met the participation rates or 
the time limits.
    (e) To determine if a State has met its MOE requirements, we will 
also use the supplemental information in the annual report required in 
accordance with Sec.265.9(c) of this chapter.
    (f) States must maintain records in accordance with 45 CFR 75.361 
through 75.370.
    (g) To determine if a State is subject to a penalty under Sec.
262.1(a)(16), we will use the information provided in annual state 
reports at Sec.265.9(b)(10) of this chapter, in accordance with 
Section 409(a)(16) of the Social Security Act.

[64 FR 17890, Apr. 12, 1999, as amended at 71 FR 37481, June 29, 2006; 
81 FR 2105, Jan. 15, 2016; 81 FR 3020, Jan. 20, 2016]



Sec.262.4  What happens if we determine that a State is subject 
to a penalty?

    (a) If we determine that a State is subject to a penalty, we will 
notify the State agency in writing, specifying which penalty we will 
impose and the reasons for the penalty. This notice will:
    (1) Specify the penalty provision at issue, including the penalty 
amount;
    (2) Specify the source of information and the reasons for our 
decision;
    (3) Invite the State to present its arguments if it believes that 
the information or method that we used were in

[[Page 152]]

error or were insufficient or that its actions, in the absence of 
Federal regulations, were based on a reasonable interpretation of the 
statute; and
    (4) Explain how and when the State may submit a reasonable cause 
justification under Sec.262.5 and/or corrective compliance plan under 
Sec.262.6.
    (b) Within 60 days of when it receives our notification, the State 
may submit a written response that:
    (1) Demonstrates that our determination is incorrect because our 
information or the method that we used in determining the violation or 
the amount of the penalty was in error or was insufficient, or that the 
State acted, in the absence of Federal rules, on a reasonable 
interpretation of the statute;
    (2) Demonstrates that the State had reasonable cause for failing to 
meet the requirement(s); and/or
    (3) Provides a corrective compliance plan, pursuant to Sec.262.6.
    (c) If we find that we determined the penalty erroneously, or that 
the State has adequately demonstrated that it had reasonable cause for 
failing to meet one or more requirements, we will not impose the 
penalty.
    (d) Reasonable cause and corrective compliance plans are not 
available for failing to repay a Federal loan; meet the basic MOE 
requirement; meet the Contingency Fund MOE requirement; expend 
additional State funds to replace adjusted SFAG reductions due to the 
imposition of one or more penalties listed in Sec.262.1; or maintain 
80 percent, or 75 percent, as appropriate, basic MOE during a year in 
which the State receives a Welfare-to-Work grant.
    (e)(1) If we request additional information from a State that we 
need to determine reasonable cause, the State must ordinarily provide 
such information within 30 days.
    (2) Under unusual circumstances, we may give the State an extension 
of the time to respond to our request.
    (f)(1)(i) We will notify the State in writing of our findings with 
respect to reasonable cause generally within 60 days of the date when we 
receive its response to our penalty notice (in accordance with paragraph 
(b) of this section).
    (ii) If the finding is negative and the State has not yet submitted 
a corrective compliance plan, it may do so in response to this notice in 
accordance with Sec.262.6.
    (2) We will notify the State of our decision regarding its 
corrective compliance plan in accordance with the provisions of Sec.
262.6(g).
    (g) We will impose a penalty in accord with the provisions in Sec.
262.1(c) after we make our final decision and the appellate process is 
completed, if applicable. If there is an appellate decision upholding 
the penalty, we will take the penalty and charge interest back to the 
date that we formally notified the Governor of the adverse action 
pursuant to Sec.262.7(a)(1).



Sec.262.5  Under what general circumstances will we determine that 
a State has reasonable cause?

    (a) We will not impose a penalty against a State if we determine 
that the State had reasonable cause for its failure. The general factors 
a State may use to claim reasonable cause include:
    (1) Natural disasters and other calamities (e.g., hurricanes, 
earthquakes, fire) whose disruptive impact was so significant as to 
cause the State's failure;
    (2) Formally issued Federal guidance that provided incorrect 
information resulting in the State's failure; or
    (3) Isolated problems of minimal impact that are not indicative of a 
systemic problem.
    (b)(1) We will grant reasonable cause to a State that:
    (i) Clearly demonstrates that its failure to submit complete, 
accurate, and timely data, as required at Sec.265.8 of this chapter, 
for one or both of the first two quarters of FY 2000, is attributable, 
in significant part, to its need to divert critical system resources to 
Year 2000 compliance activities; and
    (ii) Submits complete and accurate data for the first two quarters 
of FY 2000 by September 30, 2000.
    (2) A State may also use the additional factors for claiming 
reasonable cause for failure to comply with the five-year limit on 
Federal assistance or the minimum participation rates, as specified at 
Sec. Sec.261.52 and 264.3 and subpart B of part 260 of this chapter.

[[Page 153]]

    (c) In determining reasonable cause, we will consider the efforts 
the State made to meet the requirement, as well as the duration and 
severity of the circumstances that led to the State's failure to achieve 
the requirement.
    (d)(1) The burden of proof rests with the State to fully explain the 
circumstances and events that constitute reasonable cause for its 
failure to meet a requirement.
    (2) The State must provide us with sufficient relevant information 
and documentation to substantiate its claim of reasonable cause.

[64 FR 17890, Apr. 12, 1999; 64 FR 40291, July 26, 1999]



Sec.262.6  What happens if a State does not demonstrate reasonable 
cause?

    (a) A State may accept the penalty or enter into a corrective 
compliance plan that will correct or discontinue the violation in order 
to avoid the penalty if:
    (1) A State does not claim reasonable cause; or
    (2) We find that the State does not have reasonable cause.
    (b) A State that does not claim reasonable cause will have 60 days 
from receipt of our notice described in Sec.262.4(a) to submit its 
corrective compliance plan.
    (c) A State that unsuccessfully claimed reasonable cause will have 
60 days from the date that it received our second notice, described in 
Sec.262.4(f), to submit its corrective compliance plan.
    (d) The corrective compliance plan must include:
    (1) A complete analysis of why the State did not meet the 
requirements;
    (2) A detailed description of how the State will correct or 
discontinue, as appropriate, the violation in a timely manner;
    (3) The time period in which the violation will be corrected or 
discontinued;
    (4) The milestones, including interim process and outcome goals, 
that the State will achieve to assure it comes into compliance within 
the specified time period; and
    (5) A certification by the Governor that the State is committed to 
correcting or discontinuing the violation, in accordance with the plan.
    (e) The corrective compliance plan must correct or discontinue the 
violation within the following time frames:
    (1) For a penalty under Sec.262.1(a)(4), (a)(9), or (a)(15), by 
the end of the first fiscal year ending at least six months after our 
receipt of the corrective compliance plan; and
    (2) For the remaining penalties, by a date the State proposes that 
reflects the minimum period necessary to achieve compliance.
    (f) During the 60-day period following our receipt of the State's 
corrective compliance plan, we may request additional information and 
consult with the State on modifications to the plan including in the 
case of a penalty under Sec.262.1(a)(15), modifications to the State's 
work verification procedures and Work Verification Plan.
    (g) We will accept or reject the State's corrective compliance plan, 
in writing, within 60 days of our receipt of the plan, although a 
corrective compliance plan is deemed to be accepted if we take no action 
during the 60-day period following our receipt of the plan.
    (h) If a State does not submit an acceptable corrective compliance 
plan on time, we will assess the penalty immediately.
    (i) We will not impose a penalty against a State with respect to any 
violation covered by a corrective compliance plan that we accept if the 
State completely corrects or discontinues, as appropriate, the violation 
within the period covered by the plan.
    (j) Under limited circumstances, we may reduce the penalty if the 
State fails to completely correct or discontinue the violation pursuant 
to its corrective compliance plan and in a timely manner. To receive a 
reduced penalty, the State must demonstrate that it met one or both of 
the following conditions:
    (1) Although it did not achieve full compliance, the State made 
significant progress towards correcting or discontinuing the violation; 
or
    (2) The State's failure to comply fully was attributable to either a 
natural disaster or regional recession.

[64 FR 17890, Apr. 12, 1999, as amended at 71 FR 37481, June 29, 2006]

[[Page 154]]



Sec.262.7  How can a State appeal our decision to take a penalty?

    (a)(1) We will formally notify the Governor and the State agency of 
an adverse action (i.e., the reduction in the SFAG) within five days 
after we determine that a State is subject to a penalty under parts 261 
through 265 of this chapter.
    (2) Such notice will include the factual and legal basis for taking 
the penalty in sufficient detail for the State to be able to respond in 
an appeal.
    (b)(1) The State may file an appeal of the action, in whole or in 
part, with the HHS Departmental Appeals Board (the Board) within 60 days 
after the date it receives notice of the adverse action. The State must 
submit its brief and supporting documents when it files its appeal.
    (2) The State must send a copy of the appeal, and any supplemental 
filings, to the Office of the General Counsel, Children, Families and 
Aging Division, Room 411-D, 200 Independence Avenue, SW., Washington, DC 
20201.
    (c) We will submit our reply brief and supporting documentation 
within 45 days of the receipt of the State's submission under paragraph 
(b) of this section.
    (d) The State may submit a reply and any supporting documentation 
within 21 days of its receipt of our reply under paragraph (c) of this 
section.
    (e) The appeal to the Board must follow the provisions of the rules 
under this section and those at Sec. Sec.16.2, 16.9, 16.10, and 16.13-
16.22 of this title, to the extent that they are consistent with this 
section.
    (f) The Board will consider an appeal filed by a State on the basis 
of the documentation and briefs submitted, along with any additional 
information the Board may require to support a final decision. Such 
information may include a hearing if the Board determines that it is 
necessary. In deciding whether to uphold an adverse action or any 
portion of such action, the Board will conduct a thorough review of the 
issues.
    (g)(1) A State may obtain judicial review of a final decision by the 
Board by filing an action within 90 days after the date of such 
decision. It should file this action with the district court of the 
United States in the judicial district where the State agency is located 
or in the United States District Court for the District of Columbia.
    (2) The district court will review the final decision of the Board 
on the record established in the administrative proceeding, in 
accordance with the standards of review prescribed by 5 U.S.C. 706(2). 
The court will base its review on the documents and supporting data 
submitted to the Board.



PART 263_EXPENDITURES OF STATE AND FEDERAL TANF FUNDS--
Table of Contents



Sec.
263.0 What definitions apply to this part?

     Subpart A_What Rules Apply to a State's Maintenance of Effort?

263.1 How much State money must a State expend annually to meet the 
          basic MOE requirement?
263.2 What kinds of State expenditures count toward meeting a State's 
          basic MOE expenditure requirement?
263.3 When do child care expenditures count?
263.4 When do educational expenditures count?
263.5 When do expenditures in State-funded programs count?
263.6 What kinds of expenditures do not count?
263.8 What happens if a State fails to meet the basic MOE requirement?
263.9 May a State avoid a penalty for failing to meet the basic MOE 
          requirement through reasonable cause or through corrective 
          compliance?

      Subpart B_What Rules Apply to the Use of Federal TANF Funds?

263.10 What actions would we take against a State if it uses Federal 
          TANF funds in violation of the Act?
263.11 What uses of Federal TANF funds are improper?
263.12 How will we determine if a State intentionally misused Federal 
          TANF funds?
263.13 Is there a limit on the amount of Federal TANF funds that a State 
          may spend on administrative costs?
263.14 What methodology shall States use to allocate TANF costs?

     Subpart C_What Rules Apply to Individual Development Accounts?

263.20 What definitions apply to Individual Development Accounts (IDAs)?

[[Page 155]]

263.21 May a State use the TANF grant to fund IDAs?
263.22 Are there any restrictions on IDA funds?
263.23 How does a State prevent a recipient from using the IDA account 
          for unqualified purposes?

    Authority: 42 U.S.C. 604, 607, 609, and 862a; Pub. L. 109-171.

    Source: 64 FR 17893, Apr. 12, 1999, unless otherwise noted.



Sec.263.0  What definitions apply to this part?

    (a) Except as noted in Sec.263.2(d), the general TANF definitions 
at Sec. Sec.260.30 through 260.33 of this chapter apply to this part.
    (b) The term ``administrative costs'' means costs necessary for the 
proper administration of the TANF program or separate State programs.
    (1) It excludes direct costs of providing program services.
    (i) For example, it excludes costs of providing diversion benefits 
and services, providing program information to clients, screening and 
assessments, development of employability plans, work activities, post-
employment services, work supports, and case management. It also 
excludes costs for contracts devoted entirely to such activities.
    (ii) It excludes the salaries and benefits costs for staff providing 
program services and the direct administrative costs associated with 
providing the services, such as the costs for supplies, equipment, 
travel, postage, utilities, rental of office space and maintenance of 
office space.
    (2) It includes costs for general administration and coordination of 
these programs, including contract costs and all indirect (or overhead) 
costs. Examples of administrative costs include:
    (i) Salaries and benefits of staff performing administrative and 
coordination functions;
    (ii) Activities related to eligibility determinations;
    (iii) Preparation of program plans, budgets, and schedules;
    (iv) Monitoring of programs and projects;
    (v) Fraud and abuse units;
    (vi) Procurement activities;
    (vii) Public relations;
    (viii) Services related to accounting, litigation, audits, 
management of property, payroll, and personnel;
    (ix) Costs for the goods and services required for administration of 
the program such as the costs for supplies, equipment, travel, postage, 
utilities, and rental of office space and maintenance of office space, 
provided that such costs are not excluded as a direct administrative 
cost for providing program services under paragraph (b)(1) of this 
section;
    (x) Travel costs incurred for official business and not excluded as 
a direct administrative cost for providing program services under 
paragraph (b)(1) of this section;
    (xi) Management information systems not related to the tracking and 
monitoring of TANF requirements (e.g., for a personnel and payroll 
system for State staff); and
    (xii) Preparing reports and other documents.



     Subpart A_What Rules Apply to a State's Maintenance of Effort?



Sec.263.1  How much State money must a State expend annually to meet
the basic MOE requirement?

    (a)(1) The minimum basic MOE for a fiscal year is 80 percent of a 
State's historic State expenditures.
    (2) However, if a State meets the minimum work participation rate 
requirements in a fiscal year, as required under Sec. Sec.261.21 and 
261.23 of this chapter, after adjustment for any caseload reduction 
credit under Sec.261.41 of this chapter, then the minimum basic MOE 
for that fiscal year is 75 percent of the State's historic State 
expenditures.
    (3) A State that does not meet the minimum participation rate 
requirements in a fiscal year, as required under Sec. Sec.261.21 and 
261.23 of this chapter (after adjustment for any caseload reduction 
credit under Sec.261.41 of this chapter), but which is granted full or 
partial penalty relief for that fiscal year, must still meet the minimum 
basic MOE specified under paragraph (a)(1) of this section.
    (b) The basic MOE level also depends on whether a Tribe or 
consortium of Tribes residing in a State has received

[[Page 156]]

approval to operate its own TANF program. The State's basic MOE level 
for a fiscal year will be reduced by the same percentage as we reduced 
the SFAG as the result of any Tribal Family Assistance Grants awarded to 
Tribal grantees in the State for that year.



Sec.263.2  What kinds of State expenditures count toward meeting 
a State's basic MOE expenditure requirement?

    (a) Expenditures of State funds in TANF or separate State programs 
may count if they are made for the following types of benefits or 
services:
    (1) Cash assistance, including the State's share of the assigned 
child support collection that is distributed to the family, and 
disregarded in determining eligibility for, and amount of the TANF 
assistance payment;
    (2) Child care assistance (see Sec.263.3);
    (3) Education activities designed to increase self-sufficiency, job 
training, and work (see Sec.263.4);
    (4) Any other use of funds allowable under section 404(a)(1) of the 
Act including:
    (i) Nonmedical treatment services for alcohol and drug abuse and 
some medical treatment services (provided that the State has not 
commingled its MOE funds with Federal TANF funds to pay for the 
services), if consistent with the goals at Sec.260.20 of this chapter; 
and
    (ii) Pro-family healthy marriage and responsible fatherhood 
activities enumerated in part IV-A of the Act, sections 
403(a)(2)(A)(iii) and 403(a)(2)(C)(ii) that are consistent with the 
goals at Sec.260.20(c) or (d) of this chapter, but do not constitute 
``assistance'' as defined in Sec.260.31(a) of this chapter; and
    (5)(i) Administrative costs for activities listed in paragraphs 
(a)(1) through (a)(4) of this section, not to exceed 15 percent of the 
total amount of countable expenditures for the fiscal year.
    (ii) Costs for information technology and computerization needed for 
tracking or monitoring required by or under part IV-A of the Act do not 
count towards the limit in paragraph (5)(i) of this section, even if 
they fall within the definition of ``administrative costs.''
    (A) This exclusion covers the costs for salaries and benefits of 
staff who develop, maintain, support, or operate the portions of 
information technology or computer systems used for tracking and 
monitoring.
    (B) It also covers the costs of contracts for the development, 
maintenance, support, or operation of those portions of information 
technology or computer systems used for tracking or monitoring.
    (b) With the exception of paragraph (a)(4)(ii) of this section, the 
benefits or services listed under paragraph (a) of this section count 
only if they have been provided to or on behalf of eligible families. An 
``eligible family'' as defined by the State, must:
    (1) Be comprised of citizens or non-citizens who:
    (i) Are eligible for TANF assistance;
    (ii) Would be eligible for TANF assistance, but for the time limit 
on the receipt of federally funded assistance; or
    (iii) Are lawfully present in the United States and would be 
eligible for assistance, but for the application of title IV of PRWORA;
    (2) Include a child living with a custodial parent or other adult 
caretaker relative (or consist of a pregnant individual); and
    (3) Be financially eligible according to the appropriate income and 
resource (when applicable) standards established by the State and 
contained in its TANF plan.
    (c) Benefits or services listed under paragraph (a) of this section 
provided to a family that meets the criteria under paragraphs (b)(1) 
through (b)(3) of this section, but who became ineligible solely due to 
the time limitation given under Sec.264.1 of this chapter, may also 
count.
    (d) Expenditures for the benefits or services listed under paragraph 
(a) of this section count whether or not the benefit or service meets 
the definition of assistance under Sec.260.31 of this chapter. 
Further, families that meet the criteria in paragraphs (b)(2) and (b)(3) 
of this section are considered to be eligible for TANF assistance for 
the purposes of paragraph (b)(1)(i) of this section.
    (e) Expenditures for benefits or services listed under paragraph (a) 
of this section may include allowable costs

[[Page 157]]

borne by others in the State (e.g., local government), including cash 
donations from non-Federal third parties (e.g., a non-profit 
organization) and the value of third party in-kind contributions if:
    (1) The expenditure is verifiable and meets all applicable 
requirements in 45 CFR 75.2 and 75.306;
    (2) There is an agreement between the State and the other party 
allowing the State to count the expenditure toward its MOE requirement; 
and,
    (3) The State counts a cash donation only when it is actually spent.
    (f)(1) The expenditures for benefits or services in State-funded 
programs listed under paragraph (a) of this section count only if they 
also meet the requirements of Sec.263.5.
    (2) Expenditures that fall within the prohibitions in Sec.263.6 do 
not count.
    (g) State funds used to meet the Healthy Marriage Promotion and 
Responsible Fatherhood Grant match requirement may count to meet the MOE 
requirement in Sec.263.1, provided the expenditure also meets all the 
other MOE requirements in this subpart.

[73 FR 6827, Feb. 5, 2008, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.263.3  When do child care expenditures count?

    (a) State funds expended to meet the requirements of the CCDF 
Matching Fund (i.e., as match or MOE amounts) may also count as basic 
MOE expenditures up to the State's child care MOE amount that must be 
expended to qualify for CCDF matching funds.
    (b) Child care expenditures that have not been used to meet the 
requirements of the CCDF Matching Fund (i.e., as match or MOE amounts), 
or any other Federal child care program, may also count as basic MOE 
expenditures. The limit described in paragraph (a) of this section does 
not apply.
    (c) The child care expenditures described in paragraphs (a) and (b) 
of this section must be made to, or on behalf of, eligible families, as 
defined in Sec.263.2(b).



Sec.263.4  When do educational expenditures count?

    (a) Expenditures for educational activities or services count if:
    (1) They are provided to eligible families (as defined in Sec.
263.2(b)) to increase self-sufficiency, job training, and work; and
    (2) They are not generally available to other residents of the State 
without cost and without regard to their income.
    (b) Expenditures on behalf of eligible families for educational 
services or activities provided through the public education system do 
not count unless they meet the requirements under paragraph (a) of this 
section.



Sec.263.5  When do expenditures in State-funded programs count?

    (a) If a current State or local program also operated in FY 1995, 
and expenditures in this program would have been previously authorized 
and allowable under the former AFDC, JOBS, Emergency Assistance, Child 
Care for AFDC recipients, At-Risk Child Care, or Transitional Child Care 
programs, then current fiscal year expenditures in this program count in 
their entirety, provided that the State has met all requirements under 
Sec.263.2.
    (b) If a current State or local program also operated in FY 1995, 
and expenditures in this program would not have been previously 
authorized and allowable under the former AFDC, JOBS, Emergency 
Assistance, Child Care for AFDC recipients, At-Risk Child Care, or 
Transitional Child care programs, then countable expenditures are 
limited to:
    (1) The amount by which total current fiscal year expenditures for 
or on behalf of eligible families, as defined in Sec.263.2(b), exceed 
total State expenditures in this program during FY 1995; or, if 
applicable,
    (2) The amount by which total current fiscal year expenditures for 
pro-family activities under Sec.263.2(a)(4)(ii) exceed total State 
expenditures in this program during FY 1995.

[64 FR 17893, Apr. 12, 1999, as amended at 73 FR 6828, Feb. 5, 2008]



Sec.263.6  What kinds of expenditures do not count?

    The following kinds of expenditures do not count:
    (a) Expenditures of funds that originated with the Federal 
government;

[[Page 158]]

    (b) State expenditures under the Medicaid program under title
    XIX of 
the Act;
    (c) Expenditures that a State makes as a condition of receiving 
Federal funds under another program that is not in Part IV-A of the Act, 
except as provided in Sec.263.3;
    (d) Expenditures that a State made in a prior fiscal year;
    (e) Expenditures that a State uses to match Federal Welfare-to-Work 
funds provided under section 403(a)(5) of the Act; and
    (f) Expenditures that a State makes in the TANF program to replace 
the reductions in the SFAG as a result of penalties, pursuant to Sec.
264.50 of this chapter.

[71 FR 37481, June 29, 2006]



Sec.263.8  What happens if a State fails to meet the basic MOE
requirement?

    (a) If any State fails to meet its basic MOE requirement for any 
fiscal year, then we will reduce dollar-for-dollar the amount of the 
SFAG payable to the State for the following fiscal year.
    (b) If a State fails to meet its basic MOE requirement for any 
fiscal year, and the State received a WtW formula grant under section 
403(a)(5)(A) of the Act for the same fiscal year, we will also reduce 
the amount of the SFAG payable to the State for the following fiscal 
year by the amount of the WtW formula grant paid to the State.



Sec.263.9  May a State avoid a penalty for failing to meet the basic
MOE requirement through reasonable cause or corrective compliance?

    No. The reasonable cause and corrective compliance provisions at 
Sec. Sec.262.4, 262.5, and 262.6 of this chapter do not apply to the 
penalties in Sec.263.8.



      Subpart B_What Rules Apply to the Use of Federal TANF Funds?



Sec.263.10  What actions would we take against a State if it uses
Federal TANF funds in violation of the Act?

    (a) If a State misuses its Federal TANF funds, we will reduce the 
SFAG payable for the immediately succeeding fiscal year quarter by the 
amount misused.
    (b) If the State fails to demonstrate that the misuse was not 
intentional, we will further reduce the SFAG payable for the immediately 
succeeding fiscal year quarter in an amount equal to five percent of the 
adjusted SFAG.
    (c) The reasonable cause and corrective compliance provisions of 
Sec. Sec.262.4 through 262.6 of this chapter apply to the penalties 
specified in paragraphs (a) and (b) of this section.



Sec.263.11  What uses of Federal TANF funds are improper?

    (a) States may use Federal TANF funds for expenditures:
    (1) That are reasonably calculated to accomplish the purposes of 
TANF, as specified at Sec.260.20 of this chapter; or
    (2) For which the State was authorized to use IV-A or IV-F funds 
under prior law, as in effect on September 30, 1995 (or, at the option 
of the State, August 21, 1996).
    (b) We will consider use of funds in violation of paragraph (a) of 
this section, sections 404 and 408 and other provisions of the Act, 
section 115(a)(1) of PRWORA, or part 75 of this title to be misuse of 
funds.

[64 FR 17893, Apr. 12, 1999, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.263.12  How will we determine if a State intentionally misused 
Federal TANF funds?

    (a) The State must show, to our satisfaction, that it used these 
funds for purposes that a reasonable person would consider to be within 
the purposes of the TANF program (as specified at Sec.260.20 of this 
chapter) and consistent with the provisions listed in Sec.263.11.
    (b) We may determine that a State misused funds intentionally if 
there is supporting documentation, such as Federal guidance or policy 
instructions, precluding the use of Federal TANF funds for such purpose.
    (c) We may also determine that a State intentionally misused funds 
if the State continues to use the funds in the same or similarly 
improper manner after receiving notification that we had determined such 
use to be improper.

[[Page 159]]



Sec.263.13  Is there a limit on the amount of Federal TANF funds that
a State may spend on administrative costs?

    (a)(i) Yes, a State may not spend more than 15 percent of the amount 
that it receives as its adjusted SFAG, or under other provisions of 
section 403 of the Act, on ``administrative costs,'' as defined at Sec.
263.0(b).
    (ii) Any violation of the limitation in paragraph (a)(i) of this 
section will constitute a misuse of funds under Sec.263.11(b).
    (b) Expenditures on the information technology and computerization 
needed for tracking and monitoring required by or under part IV-A of the 
Act do not count towards the limit specified in paragraph (a) of this 
section.
    (1) This exclusion covers the costs for salaries and benefits of 
staff who develop, maintain, support or operate the portions of 
information technology or computer systems used for tracking and 
monitoring.
    (2) It also covers the costs of contracts for development, 
maintenance. support, or operation of those portions of information 
technology or computer systems used for tracking or monitoring.



Sec.263.14  What methodology shall States use to allocate TANF costs?

    States shall use a benefiting program cost allocation methodology 
consistent with the general requirements of subpart E of part 75 of this 
title to allocate TANF costs.

[73 FR 42721, July 23, 2008, as amended at 81 FR 3020, Jan. 20, 2016]



     Subpart C_What Rules Apply to Individual Development Accounts?



Sec.263.20  What definitions apply to Individual Development Accounts
(IDAs)?

    The following definitions apply with respect to IDAs:
    Date of acquisition means the date on which a binding contract to 
obtain, construct, or reconstruct the new principal residence is entered 
into.
    Eligible educational institution means an institution described in 
section 481(a)(1) or section 1201(a) of the Higher Education Act of 1965 
(20 U.S.C. 1088(a)(1) or 1141(a)), as such sections were in effect on 
August 21, 1996. Also, an area vocational education school (as defined 
in subparagraph (C) or (D) of section 521(4) of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2471(4)) that 
is in any State (as defined in section 521(33) of such Act), as such 
sections were in effect on August 21, 1996.
    Individual Development Account (IDA) means an account established 
by, or for, an individual who is eligible for assistance under the TANF 
program, to allow the individual to accumulate funds for specific 
purposes. Notwithstanding any other provision of law (other than the 
Internal Revenue Code of 1986), the funds in an IDA account must be 
disregarded in determining eligibility for, or the amount of, assistance 
in any Federal means-tested programs.
    Post-secondary educational expenses means a student's tuition and 
fees required for the enrollment or attendance at an eligible 
educational institution, and required course fees, books, supplies, and 
equipment required at an eligible educational institution.
    Qualified acquisition costs means the cost of obtaining, 
constructing, or reconstructing a residence. The term includes any usual 
or reasonable settlement, financing, or other closing costs.
    Qualified business means any business that does not contravene State 
law or public policy.
    Qualified business capitalization expenses means business expenses 
pursuant to a qualified plan.
    Qualified entity means a nonprofit, tax-exempt organization, or a 
State or local government agency that works cooperatively with a 
nonprofit, tax-exempt organization.
    Qualified expenditures means expenses entailed in a qualified plan, 
including capital, plant equipment, working capital, and inventory 
expenses.
    Qualified first-time home buyer means a taxpayer (and, if married, 
the taxpayer's spouse) who has not owned a principal residence during 
the three-year period ending on the date of acquisition of the new 
principal residence.

[[Page 160]]

    Qualified plan means a business plan that is approved by a financial 
institution, or by a nonprofit loan fund having demonstrated fiduciary 
integrity. It includes a description of services or goods to be sold, a 
marketing plan, and projected financial statements, and it may require 
the eligible recipient to obtain the assistance of an experienced 
entrepreneurial advisor.
    Qualified principal residence means the place a qualified first-time 
home buyer will reside in accordance with the meaning of section 1034 of 
the Internal Revenue Code of 1986 (26 U.S.C. 1034). The qualified 
acquisition cost of the residence cannot exceed the average purchase 
price of similar residences in the area.



Sec.263.21  May a State use the TANF grant to fund IDAs?

    If the State elects to operate an IDA program, then the States may 
use Federal TANF funds or WtW funds to fund IDAs for individuals who are 
eligible for TANF assistance and exercise flexibility within the limits 
of Federal regulations and the statute.



Sec.263.22  Are there any restrictions on IDA funds?

    The following restrictions apply to IDA funds:
    (a) A recipient may deposit only earned income into an IDA.
    (b) A recipient's contributions to an IDA may be matched by, or 
through, a qualified entity.
    (c) A recipient may withdraw funds only for the following reasons:
    (1) To cover post-secondary education expenses, if the amount is 
paid directly to an eligible educational institution;
    (2) For the recipient to purchase a first home, if the amount is 
paid directly to the person to whom the amounts are due and it is a 
qualified acquisition cost for a qualified principal residence by a 
qualified first-time home buyer; or
    (3) For business capitalization, if the amounts are paid directly to 
a business capitalization account in a federally insured financial 
institution and used for a qualified business capitalization expense.



Sec.263.23  How does a State prevent a recipient from using the IDA 
account for unqualified purposes?

    To prevent recipients from using the IDA account improperly, States 
may do the following:
    (a) Count withdrawals as earned income in the month of withdrawal 
(unless already counted as income);
    (b) Count withdrawals as resources in determining eligibility; or
    (c) Take such other steps as the State has established in its State 
plan or written State policies to deter inappropriate use.



PART 264_OTHER ACCOUNTABILITY PROVISIONS--Table of Contents



Sec.
264.0 What definitions apply to this part?

    Subpart A_What Specific Rules Apply for Other Program Penalties?

264.1 What restrictions apply to the length of time Federal TANF 
          assistance may be provided?
264.2 What happens if a State does not comply with the five-year limit?
264.3 How can a State avoid a penalty for failure to comply with the 
          five-year limit?
264.10 Must States do computer matching of data records under IEVS to 
          verify recipient information?
264.11 How much is the penalty for not participating in IEVS?
264.30 What procedures exist to ensure cooperation with the child 
          support enforcement requirements?
264.31 What happens if a State does not comply with the IV-D sanction 
          requirement?
264.40 What happens if a State does not repay a Federal loan?
264.50 What happens if, in a fiscal year, a State does not expend, with 
          its own funds, an amount equal to the reduction to the 
          adjusted SFAG resulting from a penalty?
264.60 What policies and practices must a state implement to prevent 
          assistance use in electronic benefit transfer transactions in 
          locations prohibited by the Social Security Act?
264.61 What happens if a state fails to report or demonstrate it has 
          implemented and maintained the policies and practices required 
          in Sec.264.60?

[[Page 161]]

      Subpart B_What are the Requirements for the Contingency Fund?

264.70 What makes a State eligible to receive a provisional payment of 
          contingency funds?
264.71 What determines the amount of the provisional payment of 
          contingency funds that will be made to a State?
264.72 What requirements are imposed on a State if it receives 
          contingency funds?
264.73 What is an annual reconciliation?
264.74 How will we determine the Contingency Fund MOE level for the 
          annual reconciliation?
264.75 For the annual reconciliation, what are qualifying State 
          expenditures?
264.76 What action will we take if a State fails to remit funds after 
          failing to meet its required Contingency Fund MOE level?
264.77 How will we determine if a State met its Contingency Fund 
          expenditure requirements?

Subpart C_What Rules Pertain Specifically to the Spending Levels of the 
                              Territories?

264.80 If a Territory receives Matching Grant funds, what funds must it 
          expend?
264.81 What expenditures qualify for Territories to meet the Matching 
          Grant MOE requirement?
264.82 What expenditures qualify for meeting the Matching Grant FAG 
          amount requirement?
264.83 How will we know if a Territory failed to meet the Matching Grant 
          funding requirements at Sec.264.80?
264.84 What will we do if a Territory fails to meet the Matching Grant 
          funding requirements at Sec.264.80?
264.85 What rights of appeal are available to the Territories?

    Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 608, 609, 654, 1302, 
1308, and 1337.

    Source: 64 FR 17896, Apr. 12, 1999, unless otherwise noted.



Sec.264.0  What definitions apply to this part?

    (a) The general TANF definitions at Sec. Sec.260.30 through 260.33 
of this chapter apply to this part.
    (b) The following definitions also apply to this part:
    Casino, gambling casino, or gaming establishment means an 
establishment with a primary purpose of accommodating the wagering of 
money. It does not include:
    (i) A grocery store which sells groceries including staple foods and 
which also offers, or is located within the same building or complex as, 
casino, gambling, or gaming activities; or
    (ii) Any other establishment that offers casino, gambling, or gaming 
activities incidental to the principal purpose of the business.
    Countable State Expenditures means the amount of qualifying State 
expenditures, as defined in Sec.264.75, plus the amount of contingency 
funds expended by the State in the fiscal year.
    Electronic benefit transfer transaction means the use of a credit or 
debit card service, automated teller machine, point-of-sale terminal, or 
access to an online system for the withdrawal of funds or the processing 
of a payment for merchandise or a service.
    FAG means the Family Assistance Grant granted to a Territory 
pursuant to section 403(a)(1) of the Act. It is thus the Territorial 
equivalent of the SFAG, as defined at Sec.260.30 of this chapter.
    Food Stamp Trigger means a State's monthly average of individuals 
participating in the Food Stamp program (as of the last day of the 
month) for the most recent three-month period that exceeds its monthly 
average of individuals in the corresponding three-month period in the 
Food Stamp caseload for FY 1994 or FY 1995, whichever is less, by at 
least ten percent, assuming that the immigrant provisions of title IV 
and the Food Stamp provisions under title VII of PRWORA had been in 
effect in those years.
    Liquor store means any retail establishment which sells exclusively 
or primarily intoxicating liquor. Such term does not include a grocery 
store which sells both intoxicating liquor and groceries including 
staple foods (within the meaning of Section 3(r) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2012(r))).
    Unemployment Trigger means a State's average unemployment rate for 
the most recent three-month period of at least 6.5 percent and equal to 
at least 110 percent of the State's unemployment rate for the 
corresponding three-month period in either of the two preceding calendar 
years.

[64 FR 17896, Apr. 12, 1999, as amended at 81 FR 2105, Jan. 15, 2016]

[[Page 162]]



    Subpart A_What Specific Rules Apply for Other Program Penalties?



Sec.264.1  What restrictions apply to the length of time Federal TANF
assistance may be provided?

    (a)(1) Subject to the exceptions in this section, no State may use 
any of its Federal TANF funds to provide assistance (as defined in Sec.
260.31 of this chapter) to a family that includes an adult head-of-
household or a spouse of the head-of-household who has received Federal 
assistance for a total of five years (i.e., 60 cumulative months, 
whether or not consecutive).
    (2) The provision in paragraph (a)(1) of this section also applies 
to a family that includes a pregnant minor head-of-household, minor 
parent head-of-household, or spouse of such a head-of-household who has 
received Federal assistance for a total of five years.
    (3) Notwithstanding the provisions of paragraphs (a)(1) and (a)(2) 
of this section, a State may provide assistance under WtW, pursuant to 
section 403(a)(5) of the Act, to a family that is ineligible for TANF 
solely because it has reached the five-year time limit.
    (b)(1) States must not count toward the five-year limit:
    (i) Any month of receipt of assistance by an individual who is not 
the head-of-household or married to the head-of-household;
    (ii) Any month of receipt of assistance by an adult while living in 
Indian country (as defined in section 1151 of title 18, United States 
Code) or a Native Alaskan Village where at least 50 percent of the 
adults were not employed; and
    (iii) Any month for which an individual receives only noncash 
assistance provided under WtW, pursuant to section 403(a)(5) of the Act.
    (2) Only months of assistance that are paid for with Federal TANF 
funds (in whole or in part) count towards the five-year time limit.
    (c) States have the option to extend assistance paid for by Federal 
TANF funds beyond the five-year limit for up to 20 percent of the 
average monthly number of families receiving assistance during the 
fiscal year or the immediately preceding fiscal year, whichever the 
State elects. States are permitted to extend assistance to families only 
on the basis of:
    (1) Hardship, as defined by the State; or
    (2) The fact that the family includes someone who has been battered, 
or subject to extreme cruelty based on the fact that the individual has 
been subjected to:
    (i) Physical acts that resulted in, or threatened to result in, 
physical injury to the individual;
    (ii) Sexual abuse;
    (iii) Sexual activity involving a dependent child;
    (iv) Being forced as the caretaker relative of a dependent child to 
engage in nonconsensual sexual acts or activities;
    (v) Threats of, or attempts at, physical or sexual abuse;
    (vi) Mental abuse; or
    (vii) Neglect or deprivation of medical care.
    (d) If a State opts to extend assistance to part of its caseload as 
permitted under paragraph (c) of this section, it would grant such an 
extension to a specific family once a head-of-household or spouse of a 
head-of-household in the family has received 60 cumulative months of 
assistance.
    (e) To determine whether a State has failed to comply with the five-
year limit on Federal assistance established in paragraph (c) of this 
section for a fiscal year, we would divide the average monthly number of 
families with a head-of-household or a spouse of a head-of-household who 
has received assistance for more than 60 cumulative months by the 
average monthly number of all families that received assistance during 
that fiscal year or during the immediately preceding fiscal year.
    (f) If the five-year limit is inconsistent with a State's waiver 
granted under section 1115 of the Act, we will determine State 
compliance with the Federal time limit in accordance with the provisions 
of subpart C of part 260.



Sec.264.2  What happens if a State does not comply with the five-year
limit?

    If we determine that a State has not complied with the requirements 
of Sec.264.1, we will reduce the SFAG payable to the State for the 
immediately

[[Page 163]]

succeeding fiscal year by five percent of the adjusted SFAG unless the 
State demonstrates to our satisfaction that it had reasonable cause, or 
it corrects or discontinues the violation under an approved corrective 
compliance plan.



Sec.264.3  How can a State avoid a penalty for failure to comply
with the five-year limit?

    (a) We will not impose the penalty if the State demonstrates to our 
satisfaction that it had reasonable cause for failing to comply with the 
five-year limit on Federal assistance or it achieves compliance under a 
corrective compliance plan, pursuant to Sec. Sec.262.5 and 262.6 of 
this chapter.
    (b) In addition, we will determine a State has reasonable cause if 
it demonstrates that it failed to comply with the five-year limit on 
Federal assistance because of federally recognized good cause domestic 
violence waivers provided to victims of domestic violence in accordance 
with provisions of subpart B of part 260.

[64 FR 17896, Apr. 12, 1999; 64 FR 40292, July 26, 1999]



Sec.264.10  Must States do computer matching of data records under 
IEVS to verify recipient information?

    (a) Pursuant to section 1137 of the Act and subject to paragraph 
(a)(2) of that section, States must meet the requirements of IEVS and 
request the following information from the Internal Revenue Service 
(IRS), the State Wage Information Collections Agency (SWICA), the Social 
Security Administration (SSA), and the Immigration and Naturalization 
Service (INS):
    (1) IRS unearned income;
    (2) SWICA employer quarterly reports of income and unemployment 
insurance benefit payments;
    (3) IRS earned income maintained by SSA; and
    (4) Immigration status information maintained by the INS.
    (b) The requirements at Sec. Sec.205.51 through 205.60 of this 
chapter also apply to the TANF IEVS requirement.

[64 FR 17896, Apr. 12, 1999; 64 FR 40292, July 26, 1999]



Sec.264.11  How much is the penalty for not participating in IEVS?

    If we determine that the State has not complied with the 
requirements of Sec.264.10, we will reduce the SFAG payable for the 
immediately succeeding fiscal year by two percent of the adjusted SFAG 
unless the State demonstrates to our satisfaction that it had reasonable 
cause or achieved compliance under a corrective compliance plan pursuant 
to Sec. Sec.262.5 and 262.6 of this chapter.



Sec.264.30  What procedures exist to ensure cooperation with the child
support enforcement requirements?

    (a)(1) The State agency must refer all appropriate individuals in 
the family of a child, for whom paternity has not been established or 
for whom a child support order needs to be established, modified or 
enforced, to the child support enforcement agency (i.e., the IV-D 
agency).
    (2) Referred individuals must cooperate in establishing paternity 
and in establishing, modifying, or enforcing a support order with 
respect to the child.
    (b) If the IV-D agency determines that an individual is not 
cooperating, and the individual does not qualify for a good cause or 
other exception established by the State agency responsible for making 
good cause determinations in accordance with section 454(29) of the Act 
or for a good cause domestic violence waiver granted in accordance with 
Sec.260.52 of this chapter, then the IV-D agency must notify the IV-A 
agency promptly.
    (c) The IV-A agency must then take appropriate action by:
    (1) Deducting from the assistance that would otherwise be provided 
to the family of the individual an amount equal to not less than 25 
percent of the amount of such assistance; or
    (2) Denying the family any assistance under the program.



Sec.264.31  What happens if a State does not comply with the IV-D 
sanction requirement?

    (a)(1) If we find that, for a fiscal year, the State IV-A agency did 
not enforce the penalties against recipients required under Sec.
264.30(c), we will reduce the SFAG payable for the next fiscal

[[Page 164]]

year by one percent of the adjusted SFAG.
    (2) Upon a finding for a second fiscal year, we will reduce the SFAG 
by two percent of the adjusted SFAG for the following year.
    (3) A third or subsequent finding will result in the maximum penalty 
of five percent.
    (b) We will not impose a penalty if:
    (1) The State demonstrates to our satisfaction that it had 
reasonable cause pursuant to Sec.262.5 of this chapter; or
    (2) The State achieves compliance under a corrective compliance plan 
pursuant to Sec.262.6 of this chapter.



Sec.264.40  What happens if a State does not repay a Federal loan?

    (a) If a State fails to repay the amount of principal and interest 
due at any point under a loan agreement developed pursuant to section 
406 of the Act:
    (1) The entire outstanding loan balance, plus all accumulated 
interest, becomes due and payable immediately; and
    (2) We will reduce the SFAG payable for the immediately succeeding 
fiscal year quarter by the outstanding loan amount plus interest.
    (b) Neither the reasonable cause provisions at Sec.262.5 of this 
chapter nor the corrective compliance plan provisions at Sec.262.6 of 
this chapter apply when a State fails to repay a Federal loan.



Sec.264.50  What happens if, in a fiscal year, a State does not
expend, with its own funds, an amount equal to the reduction to
the adjusted SFAG resulting  from a penalty?

    (a)(1) When we withhold Federal TANF funds from a State during a 
fiscal year because of other penalty actions listed at Sec.262.1 of 
this chapter, the State must replace these Federal TANF funds with State 
funds during the subsequent fiscal year.
    (2) If the State fails to replace funds during the subsequent year, 
then we will assess an additional penalty of no more than two percent of 
the adjusted SFAG during the year that follows the subsequent year.
    (b) A State must expend such replacement funds under its TANF 
program, not under ``separate State programs.''
    (c) We will assess a penalty of no more than two percent of the 
adjusted SFAG plus the amount equal to the difference between the amount 
the State was required to expend and the amount it actually expended in 
the fiscal year.
    (1) We will assess the maximum penalty amount if the State made no 
additional expenditures to compensate for the reductions to its adjusted 
SFAG resulting from penalties.
    (2) We will reduce the percentage portion of the penalty if the 
State has expended some of the amount required. In such case, we will 
calculate the applicable percentage portion of the penalty by 
multiplying the percentage of the required expenditures that the State 
failed to make in the fiscal year by two percent.
    (d) The reasonable cause and corrective compliance plan provisions 
at Sec. Sec.262.5 and 262.6 of this chapter do not apply to this 
penalty.



Sec.264.60  What policies and practices must a state implement to
prevent assistance use in electronic benefit transfer transactions
in locations prohibited  by the Social Security Act?

    Pursuant to Section 408(a)(12) of the Act, states are required to 
implement policies and practices, as necessary, to prevent assistance 
(defined at Sec.260.31(a) of this chapter) provided with federal TANF 
or state TANF MOE funds from being used in any electronic benefit 
transfer transaction in any: liquor store; casino, gambling casino or 
gaming establishment; or retail establishment which provides adult-
oriented entertainment in which performers disrobe or perform in an 
unclothed state for entertainment.

[81 FR 2105, Jan. 15, 2016]



Sec.264.61  What happens if a state fails to report or demonstrate it
has implemented and maintained the policies and practices required
in Sec.264.60?

    (a) Pursuant to Section 409(a)(16) of the Act and in accordance with 
45 CFR part 262, a penalty of not more than five percent of the adjusted 
SFAG will

[[Page 165]]

be imposed for failure to report by February 22, 2014 and each 
succeeding fiscal year on the state's implementation of policies and 
practices required in Sec.264.60. The penalty will be imposed in the 
succeeding fiscal year, subject to Sec.262.4(g) of this chapter.
    (b) Pursuant to Section 409(a)(16) of the Act and in accordance with 
45 CFR part 262, a penalty of not more than five percent of the adjusted 
SFAG will be imposed for FY 2014 and each succeeding fiscal year in 
which the state fails to demonstrate the state's implementation of 
policies and practices required in Sec.264.60. The penalty will be 
imposed in the succeeding fiscal year subject to Sec.262.4(g) of this 
chapter.
    (c) A penalty applied under paragraphs (a) and (b) of this section 
may be reduced based on the degree of noncompliance of the state.
    (d) Fraudulent activity by any individual in an attempt to 
circumvent the policies and practices required by Sec.264.60 shall not 
trigger a state penalty under paragraphs (a) and (b) of this section.

[81 FR 2105, Jan. 15, 2016]



      Subpart B_What Are the Requirements for the Contingency Fund?



Sec.264.70  What makes a State eligible to receive a provisional 
payment of contingency funds?

    (a) In order to receive a provisional payment of contingency funds, 
a State must:
    (1) Be a needy State, as defined in Sec.260.30 of this chapter; 
and
    (2) Submit to ACF a request for contingency funds for an eligible 
month (i.e., a month in which a State is a needy State).
    (b) A determination that a State is a needy State for a month makes 
that State eligible to receive a provisional payment of contingency 
funds for two consecutive months.
    (c) Only the 50 States and the District of Columbia may receive 
contingency funds. Territories and Tribal TANF grantees are not 
eligible.



Sec.264.71  What determines the amount of the provisional payment of
contingency funds that will be made to a State?

    We will make a provisional payment to a State that meets the 
requirements of Sec.264.70, within the following limits:
    (a) The amount that we will pay to a State in a fiscal year will not 
exceed an amount equal to \1/12\ times 20 percent of that State's SFAG 
for that fiscal year, multiplied by the number of eligible months for 
which the State has requested contingency funds;
    (b) The total amount that we will pay to all States during a fiscal 
year will not exceed the amount appropriated for this purpose; and
    (c) We will pay contingency funds to States in the order in which we 
receive requests for such payments.



Sec.264.72  What requirements are imposed on a State if it receives
contingency funds?

    (a)(1) A State must meet a Contingency Fund MOE level of 100 percent 
of historic State expenditures for FY 1994.
    (2) A State must exceed the Contingency Fund MOE level to keep any 
of the contingency funds that it received. It may be able to retain a 
portion of the amount of contingency funds that match countable State 
expenditures, as defined in Sec.264.0, that are in excess of the 
State's Contingency Fund MOE level, after the overall adjustment 
required by section 403(b)(6)(C) of the Act.
    (b) A State must complete an annual reconciliation, in accordance 
with Sec.264.73, in order to determine how much, if any, of the 
contingency funds that it received in a fiscal year it may retain.
    (c) If required to remit funds under the annual reconciliation, a 
State must remit all (or a portion) of the funds paid to it for a fiscal 
year within one year after it has failed to meet either the Food Stamp 
trigger or the Unemployment trigger, as defined in Sec.264.0, for 
three consecutive months.
    (d) A State must expend contingency funds in the fiscal year in 
which they are awarded.
    (e) A State may not transfer contingency funds to the Discretionary 
Fund of the CCDF or the SSBG.

[[Page 166]]

    (f) A State must follow the restrictions and prohibitions in effect 
for Federal TANF funds, including the provisions of Sec.263.11 of this 
chapter, in its use of contingency funds.



Sec.264.73  What is an annual reconciliation?

    (a) The annual reconciliation involves the calculation, for a fiscal 
year, of:
    (1) The amount of a State's qualifying expenditures;
    (2) The amount by which a State's countable State expenditures, as 
defined in Sec.264.0, exceed the State's required Contingency Fund MOE 
level; and
    (3) The amount of contingency funds that the State may retain or 
must remit.
    (b) If a State exceeded its required Contingency Fund MOE level, it 
may be able to retain some or all of the contingency funds that it 
received.
    (c) A State determines the amount of contingency funds that it may 
retain by performing the following calculations:
    (1) From the lesser of the following two amounts:
    (i) The amount of contingency funds paid to it during the fiscal 
year; or
    (ii) Its countable State expenditures, as defined in Sec.264.0, 
minus its required Contingency Fund MOE level, multiplied by:
    (A) The State's Federal Medical Assistance Percentage (FMAP) 
applicable for the fiscal year for which funds were awarded; and
    (B) \1/12\ times the number of months during the fiscal year for 
which the State received contingency funds.
    (2) Subtract the State's proportionate remittance (as reported to 
the State by ACF) for the overall adjustment of the Contingency Fund for 
that fiscal year required by section 403(b)(6)(C) of the Act.



Sec.264.74  How will we determine the Contingency Fund MOE level for 
the annual reconciliation?

    (a)(1) The Contingency Fund MOE level includes the State's share of 
expenditures for AFDC benefit payments, administration, and FAMIS; EA; 
and the JOBS program for FY 1994.
    (2) We will use the same data sources and date, i.e., April 28, 
1995, that we used to determine the basic MOE levels for FY 1994. We 
will exclude the State's share of expenditures from the former IV-A 
child care programs (AFDC/JOBS, Transitional and At-Risk child care) in 
the calculation.
    (b) We will reduce a State's Contingency Fund MOE level by the same 
percentage that we reduce the basic MOE level for any fiscal year in 
which we reduce the State's annual SFAG allocation to provide funding to 
Tribal grantees operating a Tribal TANF program.



Sec.264.75  For the annual reconciliation, what are qualifying State
expenditures?

    (a) Qualifying State expenditures are expenditures of State funds 
made in the State TANF program, with respect to eligible families, for 
the following:
    (1) Cash assistance, including assigned child support collected by 
the State, distributed to the family, and disregarded in determining 
eligibility for, and amount of the TANF assistance payment;
    (2) Educational activities designed to increase self-sufficiency, 
job training, and work, excluding any expenditure for public education 
in the State except expenditures involving the provision of services or 
assistance to an eligible family that are not generally available to 
persons who are not members of an eligible family;
    (3) Any other services allowable under section 404(a)(1) of the Act 
and consistent with the goals at Sec.260.20 of this chapter; and
    (4) Administrative costs in connection with the provision of the 
benefits and services listed in paragraphs (a)(1) through (a)(3) of this 
section, but only to the extent that such costs are consistent with the 
15-percent limitation at Sec.263.2(a)(5) of this chapter.
    (b) Qualifying State expenditures do not include:
    (1) Child care expenditures; and
    (2) Expenditures made under separate State programs.

[[Page 167]]



Sec.264.76  What action will we take if a State fails to remit funds
after failing to meet its required Contingency Fund MOE level?

    (a) If, for a fiscal year in which it receives contingency funds, a 
State fails to meet its required Contingency Fund MOE level, we will 
penalize the State by reducing the SFAG payable for the next fiscal year 
by the amount of contingency funds not remitted.
    (b) A State may appeal this decision, as provided in Sec.262.7 of 
this chapter.
    (c) The reasonable cause exceptions and corrective compliance 
regulations at Sec. Sec.262.5 and 262.6 of this chapter do not apply 
to this penalty.



Sec.264.77  How will we determine if a State met its Contingency
Fund expenditure requirements?

    (a) States receiving contingency funds for a fiscal year must 
complete the quarterly TANF Financial Report. As part of the fourth 
quarter's report, a State must complete its annual reconciliation.
    (b) The TANF Financial Report and State reporting on expenditures 
are subject to our review.



Subpart C_What Rules Pertain Specifically to the Spending Levels of the 
                              Territories?



Sec.264.80  If a Territory receives Matching Grant funds, what funds
must it expend?

    (a) If a Territory receives Matching Grant funds under section 
1108(b) of the Act, it must:
    (1) Contribute 25 percent of the expenditures funded under the 
Matching Grant for title IV-A or title IV-E expenditures;
    (2) Expend 100 percent of the amount of historic expenditures for FY 
1995 for the AFDC program (including administrative costs and FAMIS), 
the EA program, and the JOBS program; and
    (3) Expend 100 percent of the amount of the Family Assistance Grant 
annual allocation using Federal TANF, title IV-E funds and/or Territory-
only funds, without regard to any penalties applied in accordance with 
section 409 of the Act.
    (b) Territories may not use the same Territorial expenditures to 
satisfy the requirements of paragraphs (a)(1), (a)(2) and (a)(3) of this 
section.



Sec.264.81  What expenditures qualify for Territories to meet the 
Matching Grant MOE requirement?

    To meet the Matching Grant MOE requirements, Territories may count:
    (a) Territorial expenditures made in accordance with Sec. Sec.
263.2, 263.3, 263.4, and 263.6 of this chapter that are commingled with 
Federal TANF funds or made under a segregated TANF program; and
    (b) Territorial expenditures made pursuant to the regulations at 45 
CFR parts 1355 and 1356 for the Foster Care and Adoption Assistance 
programs and section 477 of the Act for the Independent Living program.



Sec.264.82  What expenditures qualify for meeting the Matching Grant
FAG amount requirement?

    To meet the Matching Grant FAG amount requirement, Territories may 
count:
    (a) Expenditures made with Federal TANF funds pursuant to Sec.
263.11 of this chapter;
    (b) Expenditures made in accordance with Sec. Sec.263.2, 263.3, 
263.4, and 263.6 of this chapter that are commingled with Federal TANF 
funds or made under a segregated TANF program;
    (c) Amounts transferred from TANF funds pursuant to section 404(d) 
of the Act; and
    (d) The Federal and Territorial shares of expenditures made pursuant 
to the regulations at 45 CFR parts 1355 and 1356 for the Foster Care and 
Adoption Assistance programs and section 477 of the Act for the 
Independent Living program.



Sec.264.83  How will we know if a Territory failed to meet the 
Matching Grant funding requirements at Sec.264.80?

    We will require the Territories to report the expenditures required 
by Sec.264.80(a)(2) and (a)(3) on the quarterly Territorial Financial 
Report.



Sec.264.84  What will we do if a Territory fails to meet the Matching 
Grant funding requirements at Sec.264.80?

    If a Territory does not meet the requirements at either or both of 
Sec.264.80(a)(2) and (a)(3), we will disallow

[[Page 168]]

all Matching Grant funds received for the fiscal year.



Sec.264.85  What rights of appeal are available to the Territories?

    The Territories may appeal our decisions to the Departmental Appeals 
Board in accordance with our regulations at part 16 of this title if we 
decide to take disallowances under section 1108(b) of the Act.



PART 265_DATA COLLECTION AND REPORTING REQUIREMENTS--Table of Contents



Sec.
265.1 What does this part cover?
265.2 What definitions apply to this part?
265.3 What reports must the State file on a quarterly basis?
265.4 When are quarterly reports due?
265.5 May States use sampling?
265.6 Must States file reports electronically?
265.7 How will we determine if the State is meeting the quarterly 
          reporting requirements?
265.8 Under what circumstances will we take action to impose a reporting 
          penalty for failure to submit quarterly and annual reports?
265.9 What information must the State file annually?
265.10 When is the annual report due?

    Authority: 42 U.S.C. 603, 605, 607, 609, 611, and 613; Pub. L. 109-
171.

    Source: 64 FR 17900, Apr. 12, 1999, unless otherwise noted.



Sec.265.1  What does this part cover?

    (a) This part explains how we will collect the information required 
by section 411(a) of the Act (data collection and reporting); the 
information required to implement section 407 of the Act (work 
participation requirements), as authorized by section 411(a)(1)(A)(xii); 
the information required to implement section 409 (penalties), section 
403 (grants to States), section 405 (administrative provisions), section 
411(b) (report to Congress), and section 413 (annual rankings of State 
TANF programs); and the data necessary to carry out our financial 
management and oversight responsibilities.
    (b) This part describes the information in the quarterly and annual 
reports that each State must file, as follows: \1\
---------------------------------------------------------------------------

    \1\ The Appendices contain the specific data elements in the 
quarterly Data Report, the quarterly Financial Report, and the Annual 
Report on State MOE Programs, as well as the instructions for filing 
these reports. They also include the form and instructions for the 
Caseload Reduction Report described at Sec.261.41(b) of this chapter.
---------------------------------------------------------------------------

    (1) The case record information (disaggregated and aggregated) on 
individuals and families in the quarterly TANF Data Report;
    (2) The expenditure data in the quarterly TANF Financial Report (or, 
as applicable, the Territorial Financial Report); and
    (3) The definitions and other information on the State's TANF and 
MOE programs that must be filed annually.
    (c) If a State claims MOE expenditures under a separate State 
program(s), this part describes the case record information 
(disaggregated and aggregated) on individuals and families in the 
quarterly SSP-MOE Data Report that each State must file.
    (d) This part describes when reports are due, how we will determine 
if reporting requirements have been met, and how we will apply the 
statutory penalty for failure to file a timely report. It also specifies 
electronic filing and sampling requirements.

[64 FR 17900, Apr. 12, 1999, as amended at 71 FR 37482, June 29, 2006]



Sec.265.2  What definitions apply to this part?

    (a) Except as provided in paragraph (b) of this section, the general 
TANF definitions at Sec. Sec.260.30 through 260.33 and the definitions 
of a work-eligible individual and the work activities in Sec.261.2 of 
this chapter apply to this part.
    (b) For data collection and reporting purposes only, family means:
    (1) All individuals receiving assistance as part of a family under 
the State's TANF or separate State program (including noncustodial 
parents, where required under Sec.265.5(g)); and
    (2) The following additional persons living in the household, if not 
included under paragraph (b)(1) of this section:
    (i) Parent(s) or caretaker relative(s) of any minor child receiving 
assistance;

[[Page 169]]

    (ii) Minor siblings of any child receiving assistance; and
    (iii) Any person whose income or resources would be counted in 
determining the family's eligibility for or amount of assistance.

[71 FR 37482, June 29, 2006]



Sec.265.3  What reports must the State file on a quarterly basis?

    (a) Quarterly reports. (1) Each State must collect on a monthly 
basis, and file on a quarterly basis, the data specified in the TANF 
Data Report and the TANF Financial Report (or, as applicable, the 
Territorial Financial Report).
    (2) Each State that claims MOE expenditures for a separate State 
program(s) must collect on a monthly basis, and file on a quarterly 
basis, the data specified in the SSP-MOE Data Report.
    (b) TANF Data Report. The TANF Data Report consists of four 
sections. Two sections contain disaggregated data elements and two 
sections contain aggregated data elements.
    (1) Disaggregated Data on Families Receiving TANF Assistance--
Section one. Each State must file disaggregated information on families 
receiving TANF assistance. This section specifies identifying and 
demographic data such as the individual's Social Security Number and 
information such as the amount of assistance received, educational 
level, employment status, work participation activities, citizenship 
status, and earned and unearned income. The data must be provided for 
both adults and children.
    (2) Disaggregated Data on Families No Longer Receiving TANF 
Assistance--Section two. Each State must file disaggregated information 
on families no longer receiving TANF assistance. This section specifies 
the reasons for case closure and data similar to the data required in 
section one.
    (3) Aggregated Data--Section three. Each State must file aggregated 
information on families receiving, applying for, and no longer receiving 
TANF assistance. This section of the TANF Data Report requires aggregate 
figures in such areas as: The number of applications received and their 
disposition; the number of recipient families, adult recipients, and 
child recipients; the number of births and out-of-wedlock births for 
families receiving TANF assistance; the number of noncustodial parents 
participating in work activities; and the number of closed cases.
    (4) Aggregated Caseload Data by Stratum--Section four. Each State 
that opts to use a stratified sample to report the quarterly TANF 
disaggregated data must file the monthly caseload data by stratum for 
each month in the quarter.
    (c) The TANF Financial Report (or Territorial Financial Report). (1) 
Each State must file quarterly expenditure data on the State's use of 
Federal TANF funds, State TANF expenditures, and State expenditures of 
MOE funds in separate State programs.
    (2) If a State is expending Federal TANF funds received in prior 
fiscal years, it must file a separate quarterly TANF Financial Report 
(or, as applicable, Territorial Financial Report) for each fiscal year 
that provides information on the expenditures of that year's TANF funds.
    (3) Territories must report their expenditure and other fiscal data 
on the Territorial Financial Report, as provided at Sec.264.85 of this 
chapter, in lieu of the TANF Financial Report.
    (d) SSP-MOE Data Report. The SSP-MOE Data Report consists of four 
sections. Two sections contain disaggregated data elements and two 
sections contain aggregated data elements.
    (1) Disaggregated Data on Families Receiving SSP-MOE Assistance--
Section one. Each State that claims MOE expenditures for a separate 
State program(s) must file disaggregated information on families 
receiving SSP-MOE assistance. This section specifies identifying and 
demographic data such as the individual's Social Security Number, the 
amount of assistance received, educational level, employment status, 
work participation activities, citizenship status, and earned and 
unearned income. The data must be provided for both adults and children.
    (2) Disaggregated Data on Families No Longer Receiving SSP-MOE 
Assistance--Section two. Each State that claims MOE expenditures for a 
separate State program(s) must file disaggregated information on 
families no longer receiving SSP-MOE assistance. This section

[[Page 170]]

specifies the reasons for case closure and data similar to the data 
required in section one.
    (3) Aggregated Data--Section three. Each State that claims MOE 
expenditures for a separate State program(s) must file aggregated 
information on families receiving and no longer receiving SSP-MOE 
assistance. This section of the SSP-MOE Data Report requires aggregate 
figures in such areas as: The number of recipient families, adult 
recipients, and child recipients; the total amount of assistance for 
families receiving SSP-MOE assistance; the number of non-custodial 
parents participating in work activities; and the number of closed 
cases.
    (4) Aggregated Caseload Data by Stratum--Section four. Each State 
that claims MOE expenditures for a separate State program(s) and that 
opts to use a stratified sample to report the SSP-MOE quarterly 
disaggregated data must file the monthly caseload by stratum for each 
month in the quarter.
    (e) Optional data elements. A State has the option not to report on 
some data elements for some individuals in the TANF Data Report and the 
SSP-MOE Data Report, as specified in the instructions to these reports.
    (f) Non-custodial parents. A State must report information on a non-
custodial parent (as defined in Sec.260.30 of this chapter) if the 
non-custodial parent:
    (1) Is receiving assistance as defined in Sec.260.31 of this 
chapter;
    (2) Is participating in work activities as defined in section 407(d) 
of the Act; or
    (3) Has been designated by the State as a member of a family 
receiving assistance.

[71 FR 37482, June 29, 2006]



Sec.265.4  When are quarterly reports due?

    (a) Each State must file the TANF Data Report and the TANF Financial 
Report (or, as applicable, the Territorial Financial Report) within 45 
days following the end of the quarter or be subject to a penalty.
    (b) Each State that claims MOE expenditures for a separate State 
program(s) must file the SSP-MOE Data Report within 45 days following 
the end of the quarter or be subject to a penalty.
    (c) A State that fails to submit the reports within 45 days will be 
subject to a penalty unless the State files complete and accurate 
reports before the end of the fiscal quarter that immediately succeeds 
the quarter for which the reports were required to be submitted.

[71 FR 37483, June 29, 2006]



Sec.265.5  May States use sampling?

    (a) Each State may report the disaggregated data in the TANF Data 
Report and the SSP-MOE Data Report on all recipient families or on a 
sample of families selected through the use of a scientifically 
acceptable sampling method that we have approved. States may use 
sampling to generate certain aggregated data elements as identified in 
the instructions to the reports. States may not use sampling to report 
expenditure data.
    (b) ``Scientifically acceptable sampling method'' means:
    (1) 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
    (2) Our sample size requirements are met.
    (c) In reporting data based on sampling, the State must follow the 
specifications and procedures in the TANF Sampling Manual.



Sec.265.6  Must States file reports electronically?

    Each State must file all quarterly reports (i.e., the TANF Data 
Report, the TANF Financial Report (or, as applicable, the Territorial 
Financial Report), and the SSP-MOE Data Report) electronically, based on 
format specifications that we will provide.



Sec.265.7  How will we determine if the State is meeting the quarterly
reporting requirements?

    (a) Each State's quarterly reports (the TANF Data Report, the TANF 
Financial Report (or Territorial Financial Report), and the SSP-MOE Data 
Report) must be complete and accurate and filed by the due date.

[[Page 171]]

    (b) For a disaggregated data report, ``a complete and accurate 
report'' means that:
    (1) The reported data accurately reflect information available to 
the State in case records, financial records, and automated data 
systems, and include correction of the quarterly data by the end of the 
fiscal year reporting period;
    (2) The data are free from computational errors and are internally 
consistent (e.g., items that should add to totals do so);
    (3) The State reports data for all required elements (i.e., no data 
are missing);
    (4)(i) The State provides data on all families; or
    (ii) If the State opts to use sampling, the State reports data on 
all families selected in a sample that meets the specification and 
procedures in the TANF Sampling Manual (except for families listed in 
error); and
    (5) Where estimates are necessary (e.g., some types of assistance 
may require cost estimates), the State uses reasonable methods to 
develop these estimates.
    (c) For an aggregated data report, ``a complete and accurate 
report'' means that:
    (1) The reported data accurately reflect information available to 
the State in case records, financial records, and automated data 
systems;
    (2) The data are free from computational errors and are internally 
consistent (e.g., items that should add to totals do so);
    (3) The State reports data on all applicable elements; and
    (4) Monthly totals are unduplicated counts for all families (e.g., 
the number of families and the number of out-of-wedlock births are 
unduplicated counts).
    (d) For the TANF Financial Report (or, as applicable, the 
Territorial Financial Report), ``a complete and accurate report'' means 
that:
    (1) The reported data accurately reflect information available to 
the State in case records, financial records, and automated data 
systems;
    (2) The data are free from computational errors and are internally 
consistent (e.g., items that should add to totals do so);
    (3) The State reports data on all applicable elements; and
    (4) All expenditures have been made in accordance with Sec.
75.302(a) of this title.
    (e) We will review the data filed in the quarterly reports to 
determine if they meet these standards. In addition, we will use audits 
and reviews to verify the accuracy of the data filed by the States.
    (f) States must maintain records to adequately support any report, 
in accordance with Sec. Sec.75.361 through 75.370 of this title.

[64 FR 17900, Apr. 12, 1999, as amended at 73 FR 6828, Feb. 5, 2008; 81 
FR 3020, Jan. 20, 2016]



Sec.265.8  Under what circumstances will we take action to impose
a reporting penalty for failure to submit quarterly and annual 
reports?

    (a) We will take action to impose a reporting penalty under Sec.
262.1(a)(3) of this chapter if:
    (1) A State fails to file the quarterly TANF Data Report, the 
quarterly TANF Financial Report (or, as applicable, the Territorial 
Financial Report), or the quarterly SSP-MOE Data Report (if applicable) 
within 45 days of the end of the quarter;
    (2) The disaggregated data in the TANF Data Report or the SSP-MOE 
Data Report are not accurate or a report does not include all the data 
required by section 411(a) of the Act (other than section 
411(a)(1)(A)(xii) of the Act) or the nine additional elements necessary 
to carry out the data collection system requirements, including the 
social security number;
    (3) The aggregated data elements in the TANF Data Report or the SSP-
MOE Data Report required by section 411(a) of the Act are not accurate 
and the report does not include the data elements necessary to carry out 
the data collection system requirements and to verify and validate the 
disaggregated data;
    (4) The TANF Financial Report (or, as applicable, the Territorial 
Financial Report) does not contain complete and accurate information on 
total expenditures and expenditures on administrative costs and 
transitional services; or

[[Page 172]]

    (5) The annual report under Sec.265.9 does not contain the 
description of transitional services provided by a State to families no 
longer receiving assistance due to employment.
    (b) If we determine that a State meets one or more of the conditions 
set forth in paragraph (a) of this section, we will notify the State 
that we intend to reduce the SFAG payable for the immediately succeeding 
fiscal year.
    (c) We will not impose the penalty at Sec.262.1(a)(3) of this 
chapter if the State files the complete and accurate quarterly report or 
the annual report before the end of the fiscal quarter that immediately 
succeeds the fiscal quarter for which the reports were required.
    (d) If the State does not file all reports as provided under 
paragraph (a) of this section by the end of the immediately succeeding 
fiscal quarter, the penalty provisions of Sec. Sec.262.4 through 262.6 
of this chapter will apply.
    (e) Subject to paragraphs (a) through (c) of this section and 
Sec. Sec.262.4 through 262.6 of this chapter, for each quarter for 
which a State fails to meet the reporting requirements, we will reduce 
the SFAG payable by an amount equal to four percent of the adjusted SFAG 
(or a lesser amount if the State achieves substantial compliance under a 
corrective compliance plan).

[71 FR 37483, June 29, 2006]



Sec.265.9  What information must the State file annually?

    (a) Each State must file an annual report containing information on 
the TANF program and the State's MOE program(s) for that year. The 
report may be filed as:
    (1) An addendum to the fourth quarter TANF Data Report; or
    (2) A separate annual report.
    (b) Each State must provide the following information on the TANF 
program:
    (1) The State's definition of each work activity;
    (2) A description of the transitional services provided to families 
no longer receiving assistance due to employment;
    (3) A description of how a State will reduce the amount of 
assistance payable to a family when an individual refuses to engage in 
work without good cause pursuant to Sec.261.14 of this chapter;
    (4) The average monthly number of payments for child care services 
made by the State through the use of disregards, by the following types 
of child care providers:
    (i) Licensed/regulated in-home child care;
    (ii) Licensed/regulated family child care;
    (iii) Licensed/regulated group home child care;
    (iv) Licensed/regulated center-based child care;
    (v) Legally operating (i.e., no license category available in State 
or locality) in-home child care provided by a nonrelative;
    (vi) Legally operating (i.e., no license category available in State 
or locality) in-home child care provided by a relative;
    (vii) Legally operating (i.e., no license category available in 
State or locality) family child care provided by a nonrelative;
    (viii) Legally operating (i.e., no license category available in 
State or locality) family child care provided by a relative;
    (ix) Legally operating (i.e., no license category available in State 
or locality) group child care provided by a nonrelative;
    (x) Legally operating (i.e., no license category available in State 
or locality) group child care provided by a relative; and
    (xi) Legally operated (i.e., no license category available in State 
or locality) center-based child care;
    (5) If the State has adopted the Family Violence Option and wants 
Federal recognition of its good cause domestic violence waivers under 
subpart B of part 260 of this chapter, a description of the strategies 
and procedures in place to ensure that victims of domestic violence 
receive appropriate alternative services and an aggregate figure for the 
total number of good cause domestic waivers granted;
    (6) A description of any nonrecurrent, short-term benefits provided, 
including:

[[Page 173]]

    (i) The eligibility criteria associated with such benefits, 
including any restrictions on the amount, duration, or frequency of 
payments;
    (ii) Any policies that limit such payments to families that are 
eligible for TANF assistance or that have the effect of delaying or 
suspending a family's eligibility for assistance; and
    (iii) Any procedures or activities developed under the TANF program 
to ensure that individuals diverted from assistance receive information 
about, referrals to, or access to other program benefits (such as 
Medicaid and food stamps) that might help them make the transition from 
welfare to work;
    (7) A description of the procedures the State has established and is 
maintaining to resolve displacement complaints, pursuant to section 
407(f)(3) of the Act. This description must include the name of the 
State agency with the lead responsibility for administering this 
provision and explanations of how the State has notified the public 
about these procedures and how an individual can register a complaint;
    (8) A summary of State programs and activities directed at the third 
and fourth statutory purposes of TANF (as specified at Sec.260.20(c) 
and (d) of this chapter); and
    (9) An estimate of the total number of individuals who have 
participated in subsidized employment under Sec.261.30(b) or (c) of 
this chapter.
    (10) A comprehensive description of the state's policies and 
practices to prevent assistance (defined at Sec.260.31(a) of this 
chapter) provided with federal TANF or state TANF MOE funds from being 
used in any electronic benefit transfer transaction in any: liquor 
store; casino, gambling casino or gaming establishment; or retail 
establishment which provides adult-oriented entertainment in which 
performers disrobe or perform in an unclothed state for entertainment. 
Reports must address:
    (i) Procedures for preventing the use of TANF assistance via 
electronic benefit transfer transactions in any liquor store; any 
casino, gambling casino, or gaming establishment; and any retail 
establishment which provides adult-oriented entertainment in which 
performers disrobe or perform in an unclothed state for entertainment;
    (ii) How the state identifies the locations specified in the 
statute;
    (iii) Procedures for ongoing monitoring to ensure policies are being 
carried out as intended; and
    (iv) How the state responds to findings of non-compliance or program 
ineffectiveness.
    (11) The state's TANF Plan must describe how the state will:
    (i) Implement policies and procedures as necessary to prevent access 
to assistance provided under the State program funded under this part 
through any electronic fund transaction in an automated teller machine 
or point-of-sale device located in a place described in section 
408(a)(12) of the Act, including a plan to ensure that recipients of the 
assistance have adequate access to their cash assistance; and
    (ii) Ensure that recipients of assistance provided under the State 
program funded under this part have access to using or withdrawing 
assistance with minimal fees or charges, including an opportunity to 
access assistance with no fee or charges, and are provided information 
on applicable fees and surcharges that apply to electronic fund 
transactions involving the assistance, and that such information is made 
publicly available.
    (c) Each State must provide the following information on the State's 
program(s) for which the State claims MOE expenditures:
    (1) The name of each program and a description of the major 
activities provided to eligible families under each such program;
    (2) Each program's statement of purpose;
    (3) If applicable, a description of the work activities in each 
separate State MOE program in which eligible families are participating;
    (4) For each program, both the total annual State expenditures and 
the total annual State expenditures claimed as MOE;
    (5) For each program, the average monthly total number or the total 
number of eligible families served for which the State claims MOE 
expenditures as of the end of the fiscal year;

[[Page 174]]

    (6) The eligibility criteria for the families served under each 
program/activity;
    (7) A statement whether the program/activity had been previously 
authorized and allowable as of August 21, 1996, under section 403 of 
prior law;
    (8) The FY 1995 State expenditures for each program/activity not 
authorized and allowable as of August 21, 1996, under section 403 of 
prior law (see Sec.263.5(b) of this chapter); and
    (9) A certification that those families for which the State is 
claiming MOE expenditures met the State's criteria for ``eligible 
families.'' \7\
---------------------------------------------------------------------------

    \7\ See appendix I for the reporting form for the Annual Report on 
State Maintenance-of-Effort Programs.
---------------------------------------------------------------------------

    (d) If the State has submitted the information required in 
paragraphs (b) and (c) of this section in the State Plan, it may meet 
the annual reporting requirements by reference in lieu of re-submission. 
If the information in the annual report has not changed since the 
previous annual report, the State may reference this information in lieu 
of re-submission.
    (e) If a State makes a substantive change in certain data elements 
in paragraphs (b) and (c) of this section, it must file a copy of the 
change with the next quarterly data report or as an amendment to its 
State Plan. The State must also indicate the effective date of the 
change. This requirement is applicable to the following data elements:
    (1) Paragraphs (b)(1), (b)(2), and (b)(3) of this section; and
    (2) Paragraphs (c)(1), (c)(2), (c)(3), (c)(6), (c)(7), and (c)(8) of 
this section.

[64 FR 17900, Apr. 12, 1999, as amended at 81 FR 2105, Jan. 15, 2016]



Sec.265.10  When is the annual report due?

    The annual report required by Sec.265.9 is due at the same time as 
the fourth quarter TANF Data Report.



PART 270_HIGH PERFORMANCE BONUS AWARDS--Table of Contents



Sec.
270.1 What does this part cover?
270.2 What definitions apply to this part?
270.3 What is the annual maximum amount we will award and the maximum 
          amount that a State can receive each year?
270.4 On what measures will we base the bonus awards?
270.5 What factors will we use to determine a State's score on the work 
          measures?
270.6 What data and other information must a State report to us?
270.7 What data will we use to measure performance on the work support 
          and other measures?
270.8 How will we allocate the bonus award funds?
270.9 How will we redistribute funds if that becomes necessary?
270.10 How will we annually review the award process?
270.11 When must the States report the data and other information in 
          order to compete for bonus awards?
270.12 Must States file the data electronically?
270.13 What do States need to know about the use of bonus funds?

    Authority: 42 U.S.C. 603(a)(4).

    Source: 65 FR 52851, Aug. 30, 2000, unless otherwise noted.



Sec.270.1  What does this part cover?

    This part covers the regulatory provisions relating to the bonus to 
reward high performing States in the TANF program, as authorized in 
section 403(a)(4) of the Social Security Act.



Sec.270.2  What definitions apply to this part?

    The following definitions apply under this part:
    Absolute rate means the actual rate of performance achieved in the 
performance year or the comparison year.
    Act means the Social Security Act, as amended.
    Bonus year means each of the fiscal years 2002 and 2003 in which 
TANF bonus funds are awarded, as well as any subsequent fiscal year for 
which Congress authorizes and appropriates bonus funds.
    CCDF means the Child Care and Development Fund.
    Comparison year means the fiscal or calendar year preceding the 
performance year.
    Fiscal year means the 12-month period beginning on October 1 of the 
preceding calendar year and ending on September 30.
    Food Stamp Program means the program administered by the United

[[Page 175]]

States Department of Agriculture pursuant to the Food Stamp Act of 1977, 
U.S.C. 2011 et seq.
    CMS is the Centers for Medicare & Medicaid Services.
    Improvement rate means the positive percentage point change between 
the absolute rate of performance in the performance year and the 
comparison year, except for the calculation and ranking of States on the 
increase in success in the work force measure in Sec.270.5(a)(4).
    Medicaid is a State program of medical assistance operated in 
accordance with a State plan under title XIX of the Act.
    MSIS is the Medicaid Statistical Information System.
    Performance year means the year in which a State's performance is 
measured, i.e., the fiscal year or the calendar year immediately 
preceding the bonus year.
    SCHIP is the State Children's Health Insurance Program as described 
in title XXI of the Act.
    Separate State Program (SSP) means a program operated outside of 
TANF in which the expenditure of State funds may count for TANF 
maintenance-of-effort (MOE) purposes.
    SSP-MOE Data Report is the report containing disaggregated and 
aggregated data required to be filed on SSP-MOE recipients in separate 
State programs as specified in Sec.265.3(d) of this chapter.
    State means each of 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.
    We (and any other first person plural pronouns) means the Secretary 
of Health and Human Services or any of the following individuals or 
organizations acting in an official capacity on the Secretary's behalf: 
the Assistant Secretary for Children and Families, the Department of 
Health and Human Services, and the Administration for Children and 
Families.



Sec.270.3  What is the annual maximum amount we will award and the 
maximum amount that a State can receive each year?

    (a) Except as provided in Sec.270.9, we will award $200 million in 
bonus funds annually, subject to Congressional authorization and the 
availability of the appropriation.
    (b) The amount payable to a State in a bonus year may not exceed 
five percent of a State's family assistance grant.



Sec.270.4  On what measures will we base the bonus awards?

    (a) Performance measures: general. In FY 2002 and beyond, we will 
base the high performance bonus awards on: four work measures; five 
measures that support work and self-sufficiency related to participation 
by low-income working families in the Food Stamp Program, participation 
of former TANF recipients in the Medicaid and SCHIP programs, and 
receipt of child care; and one measure on family formation and 
stability.
    (b) Work measures. (1) Beginning in FY 2002, we will measure State 
performance on the following work measures:
    (i) Job entry rate;
    (ii) Success in the work force rate;
    (iii) Increase in the job entry rate; and
    (iv) Increase in success in the work force rate.
    (2) For any given year, we will score and rank competing States and 
award bonuses to the ten States with the highest scores in each work 
measure.
    (c) Measures of participation by low-income working households in 
the Food Stamp Program--(1) Food Stamp absolute measure. (i) Beginning 
in FY 2002, we will measure the number of low-income working households 
with children (i.e., households with children under age 18 which have an 
income less than 130 percent of poverty and earnings equal to at least 
half-time, full-year minimum wage) receiving Food Stamps as a percentage 
of the number of low-income working households with children (as defined 
in this paragraph) in the State.
    (ii) We will rank all States that choose to compete on this measure 
and will award bonuses to the three States

[[Page 176]]

with the highest scores. We will calculate the percentage rate for this 
measure to two decimal points. If two or more States have the same 
percentage rate for the measure, we will calculate the rates for these 
States to as many decimal points as necessary to eliminate the tie.
    (2) Food Stamp improvement measure. (i) Beginning in FY 2002, we 
will measure the improvement in the number of low-income working 
households with children (i.e., households with children under age 18 
which have an income less than 130 percent of poverty and earnings equal 
to at least half-time, full-year Federal minimum wage) receiving Food 
Stamps as a percentage of the number of low-income working households 
with children (as defined in this subparagraph) in the State.
    (ii) For any given year, we will compare a State's performance on 
this measure to its performance in the previous year, beginning with a 
comparison of calendar (CY) 2000 to CY 2001, based on Census Bureau 
decennial and annual demographic program data.
    (iii) We will rank all States that choose to compete on this measure 
and will award bonuses to the seven States with the greatest percentage 
point improvement in this measure. We will calculate the percentage rate 
for this measure to two decimal points. If two or more States have the 
same percentage rate for this measure, we will calculate the rates for 
these States to as many decimal points as necessary to eliminate the 
tie.
    (d) Measures of participation by low-income families in the 
Medicaid/SCHIP Programs. (1) Medicaid/SCHIP absolute measure. (i) 
Beginning in FY 2002, we will measure the number of individuals 
receiving TANF benefits who are also enrolled in Medicaid or SCHIP, who 
leave TANF in a fiscal year and are enrolled in Medicaid or SCHIP in the 
fourth month after leaving TANF assistance, and who are not receiving 
TANF assistance in the fourth month as a percentage of individuals who 
left TANF in the fiscal year and are not receiving TANF assistance in 
the fourth month after leaving.
    (ii) We will rank the performance of each State that chooses to 
compete on this absolute measure and award bonuses to the three States 
with the highest scores.
    (iii) We will calculate the percentage rate for this measure to two 
decimal points. If two or more States have the same percentage rate for 
this measure, we will calculate the rates for these States to as many 
decimal points as necessary to eliminate the tie.
    (2) Medicaid/SCHIP improvement measure. (i) Beginning in FY 2002, we 
will measure the improvement in the number of individuals receiving TANF 
benefits who are also enrolled in Medicaid or SCHIP, who leave TANF in a 
fiscal year and are enrolled in Medicaid or SCHIP in the fourth month 
after leaving TANF assistance, and who are not receiving TANF assistance 
in the fourth month as a percentage of individuals who left TANF in the 
fiscal year and are not receiving TANF assistance in the fourth month 
after leaving.
    (ii) For any given year, we will compare a State's performance on 
this improvement measure to its performance in the previous year, 
beginning with a comparison of FY 2000 to FY 2001, based on a quarterly 
submission by the State as determined by matching individuals (adults 
and children) who have left TANF assistance and who are not receiving 
TANF assistance in the fourth month with Medicaid or SCHIP enrollment 
data.
    (iii) We will rank the performance of all States that choose to 
compete on this improvement measure and will award bonuses to the seven 
States with the greatest percentage point improvement in this measure.
    (iv) We will calculate the percentage rate for the measure to two 
decimal points. If two or more States have the same percentage rate for 
this measure, we will calculate the rates for these States to as many 
decimal points as necessary to eliminate the tie.
    (e) Child care subsidy measure. (1) Beginning in FY 2002, we will 
measure State performance based upon a composite ranking of:
    (i) The accessibility of services based on the percentage of 
children in the State who meet the maximum allowable Federal eligibility 
requirements for the Child Care and Development Fund (CCDF) who are 
served by the

[[Page 177]]

State during the performance year, and who are included in the data 
reported on the ACF-800 and ACF-801 for the same fiscal year; and
    (ii) The affordability of CCDF services based on a comparison of the 
reported assessed family co-payment to reported family income and a 
comparison of the number of eligible children under the State's defined 
income limits to the number of eligible children under the federal 
eligibility limits.
    (2) Beginning in FY 2003, we will measure State performance based 
upon a composite ranking of:
    (i) The two components described in paragraph (e)(1) of this 
section; and
    (ii) The quality of CCDF services based on a comparison of 
reimbursement rates during the performance year to the market rates, 
determined in accordance with 45 CFR 98.43(b)(2), applicable to that 
year.
    (3) For the affordability component in paragraph (e)(1)(ii) of this 
section, we will compare family income to the assessed State family co-
payment as reported on the ACF-801 across four income ranges. These 
income ranges refer to percentages of the Federal Poverty Guidelines for 
a family of three persons. The income ranges are as follows:
    (i) Income below the poverty level;
    (ii) Income at least 100 percent and below 125 percent of poverty;
    (iii) Income at least 125 percent and below 150 percent of poverty; 
and
    (iv) Income at least 150 percent and below 175 percent of poverty.
    (4)(i) For the affordability component, we will calculate, for each 
income range, the average of the ratios of family co-payment to family 
income for each family served; and
    (ii) We will calculate a ratio of the number of children eligible 
under the State's defined income limits compared to the number of 
children eligible under the Federal eligibility limits in the CCDF, 
i.e., 85 percent of the State's median income.
    (iii) We will rank each State based on each of the four averages 
calculated in paragraph (e)(4)(i) of this section and the ratio 
calculated in paragraph (e)(4)(ii) of this section and combine the ranks 
to obtain the State's score on this component.
    (5) For the quality component specified in paragraph (e)(2)(ii) of 
this section, in FY 2003 and beyond, we will compare the actual rates 
paid by the State as reported on the ACF-801 (not the published maximum 
rates) to the market rates applicable to the performance year, i.e., FY 
2002. Each State competing on this measure must submit the following 
data as a part of its market rate survey:
    (i) Age-specific rates for children 0-13 years of age reported by 
the child care centers and family day care homes responding to the 
State's market rate survey; and
    (ii) The provider's county or, if the State uses multi-county 
regions to measure market rates or set maximum payment rates, the 
administrative region.
    (6) For the quality component, we will compute the percentile of the 
market represented by the amount paid for each child as reported on the 
ACF-801 by comparing the actual payment for each child to the array of 
reported market rates for children of the same age in the relevant 
county or administrative region. (We will compare payments for children 
in center-based care to reported center care provider rates. We will 
compare payments for children in non-center-based care, i.e., family day 
care and unlicensed child care, to reported family child care provider 
rates.)
    (i) We will take the percentile that results from the per-child 
comparison of the actual payment to the reported market rates and 
compute separate State-wide averages for center-based and non-center-
based care; and
    (ii) We will rank the State according to the two State-wide averages 
and combine the ranks to obtain the State's score on this component.
    (7) For any given year, we will rank the States that choose to 
compete on the child care measure on each component of the overall 
measure and award bonuses to the ten States with the highest composite 
rankings.
    (8) We will calculate each component score for this measure to two 
decimal points. If two or more States have the same score for a 
component, we will calculate the scores for these States to

[[Page 178]]

as many decimal points as necessary to eliminate the tie.
    (9)(i) The rank of the measure for the FY 2002 bonus year will be a 
composite weighted score of the two components at paragraph (e)(1) of 
this section, with the component at paragraph (e)(1)(i) of this section 
having a weight of 6 and the component at paragraph (e)(1)(ii) of this 
section having a weight of 4.
    (ii) The rank of the measure for the bonus beginning in FY 2003 will 
be a composite weighted score of the three components at paragraph 
(e)(2) of this section, with the component at paragraph (e)(1)(i) of 
this section having a weight of 5, the component at paragraph (e)(1)(ii) 
of this section having a weight of 3, and the component at paragraph 
(e)(2)(ii) of this section having a weight of 2.
    (10) We will award bonuses only to the top ten qualifying States 
that have fully obligated their CCDF Matching Funds for the fiscal year 
corresponding to the performance year and fully expended their CCDF 
Matching Funds for the fiscal year preceding the performance year.
    (f) Family formation and stability measure. (1) Beginning in FY 2002 
and beyond, we will measure the increase in the percent of children in 
each State who reside in married couple families, beginning with a 
comparison of CY 2000 and CY 2001 data from the Census Bureau. For any 
given subsequent year we will compare a State's performance on this 
measure to its performance in the previous year.
    (2) We will rank the performance of those States that choose to 
compete on this measure and will award bonuses to the ten States with 
the greatest percentage point improvement in this measure.
    (3) We will calculate the percentage rate for the measure to two 
decimal points. If two or more States have the same percentage rate for 
this measure, we will calculate the rates for these States to as many 
decimal points as necessary to eliminate the tie.
    (g) Option to compete. Each State has the option to compete on one, 
any number of, or none of the measures specified in this section.

[65 FR 52851, Aug. 30, 2000, as amended at 65 FR 75634, Dec. 4, 2000; 66 
FR 23859, May 10, 2001]

    Effective Date Note: At 66 FR 23859, May 10, 2001, in Sec.
270.4(e)(2)(ii) was revised. This paragraph contains information 
collection and recordkeeping requirements and will not become effective 
until approval has been given by the Office of Management and Budget.



Sec.270.5  What factors will we use to determine a State's score 
on the work measures?

    (a) Definitions. The work measures are defined as follows:
    (1) The Job Entry Rate means the unduplicated number of adult 
recipients who entered employment for the first time in the performance 
year (job entries) as a percentage of the total unduplicated number of 
adult recipients unemployed at some point in the performance year.
    (2) The Success in the Work Force Rate is composed of two equally 
weighted sub-measures defined as follows:
    (i) The Job Retention Rate means the performance year sum of the 
unduplicated number of employed adult recipients in each quarter one 
through four who were also employed in the first and second subsequent 
quarters, as a percentage of the sum of the unduplicated number of 
employed adult recipients in each quarter. (At some point, the adult 
might become a former recipient.); and
    (ii) The Earnings Gain Rate means the performance year sum of the 
gain in earnings between the initial and second subsequent quarter in 
each of quarters one through four for adult recipients employed in both 
these quarters as a percentage of the sum of their initial earnings in 
each of quarters one through four. (At some point, the adult might 
become a former recipient.)
    (3) The Increase in the Job Entry Rate means the positive percentage 
point difference between the job entry rate for the performance year and 
the job entry rate for the comparison year; and
    (4) The Increase in Success in the Work Force Rate means the 
positive percentage point difference on at least one sub-measure between 
the success

[[Page 179]]

in the work force rate for the performance year and the success in the 
work force rate for the comparison year. It is composed of two equally 
weighted sub-measures defined as follows:
    (i) The Increase in the Job Retention Rate means the percentage 
point difference between the job retention rate for the performance year 
and the job retention rate for the comparison year; and
    (ii) The Increase in the Earning Gain Rate means the percentage 
point difference between the earnings gain rate for the performance year 
and the earnings gain rate for the comparison year.
    (b) Ranking of States. (1) We will measure State performance in the 
work measures over the course of an entire fiscal year both for the 
performance year and the comparison year, if applicable.
    (2) We will rank the competing States on the work measures for which 
they:
    (i) Indicate they wish to compete; and
    (ii) Submit the data specified in Sec.270.6 within the time frames 
specified in Sec.270.11.
    (3) We will rank the States on absolute performance in each of the 
work measures in paragraphs (a)(1) and (a)(2) of this section. For each 
of the work measures in paragraphs (a)(3) and (a)(4) of this section, we 
will rank States based on the percentage point change in their 
improvement rate in the performance year compared to the comparison 
year. The rank of the performance in paragraphs (a)(2) and (a)(4) of 
this section will be a composite score of the rank of the job retention 
and the earnings gain measures.
    (4) We will calculate the percentage rate for each work measure to 
two decimal points. If two or more States have the same absolute or 
improvement rate for a specific work measure, we will calculate the 
rates for these States to as many decimal points as necessary to 
eliminate the tie.



Sec.270.6  What data and other information must a State report to us?

    (a) Data for work measures. (1) If a State wishes to compete on any 
of the work measures specified in Sec.270.5(a), it must collect 
quarterly and report semi-annually for the performance year and, if the 
State chooses to compete on an improvement measure, the comparison year, 
the identifying information on all adult TANF recipients as specified in 
program guidance.
    (2) Each State must submit the information in this paragraph for 
both adult TANF recipients and adult SSP-MOE recipients for whom the 
State would report the data described in paragraph (b) of this section.
    (b) Data on SSP-MOE programs. In order to compete on any high 
performance bonus measure, each State must submit the information in 
Sections One and Three of the SSP-MOE Data Report as specified in Sec.
265.3(d) of this chapter.
    (c) Data for the Medicaid/SCHIP measures. If a State wishes to 
compete on the Medicaid/SCHIP measures in Sec.270.4(d), it must submit 
the information that we and CMS will specify.
    (d) Data for the child care measure. If a State wishes to compete on 
the child care measure in Sec.270.4(e), it must report the data as 
required by the CCDF program and additional data on child care market 
rates that we will specify.
    (e) Intent to compete. Each State must notify us on which of the 
measures it will compete in each bonus year.



Sec.270.7  What data will we use to measure performance on the work
support and other measures?

    (a) We will use Census Bureau data to rank States on their 
performance on the Food Stamp measures in Sec.270.4(c) and on the 
measure of family formation and stability in Sec.270.4(f). We will 
also use Census Bureau data, along with other information, to rank 
States on the child care measure in Sec.270.4(e). We will rank only 
those States that choose to compete on these measures.
    (b) We will rank State performance on the Medicaid/SCHIP measures in 
Sec.270.4(d) based on data submitted by those States that choose to 
compete on these measures, as determined by matching TANF individuals 
who were enrolled in Medicaid/SCHIP and are no longer receiving TANF 
assistance with Medicaid/SCHIP enrollment data.
    (c) We will rank State performance on the child care measure based 
on data submitted by those States that

[[Page 180]]

choose to compete on this measure. We will use data reported on Forms 
ACF 800, ACF 801, ACF 696 and other necessary data we will specify.



Sec.270.8  How will we allocate the bonus award funds?

    (a) In FY 2002 and beyond, we will allocate and award $140 million 
to the ten States with the highest scores for each work measure as 
follows, subject to reallocation as specified in Sec.270.9:

    (1) Job Entry Rate--$56 million
    (2) Success in the Work Force--$35 million
    (3) Increase in Job Entry Rate--$28 million
    (4) Increase in Success in the Work Force--$21 million;

    (b) In FY 2002 and beyond, we will allocate and award $20 million to 
the ten States with the highest scores on the Food Stamp measures and 
$20 million to the ten States with the highest scores on the Medicaid/
SCHIP measures, subject to reallocation as specified in Sec.270.9. For 
these measures, we will:
    (1) Award $6 million to the three States with the highest scores on 
the Food Stamp absolute measure;
    (2) Award $6 million to the three States with the highest scores on 
the Medicaid/SCHIP absolute measure;
    (3) Award $14 million to the seven States with the highest scores on 
the Food Stamp improvement measure; and
    (4) Award $14 million to the seven States with the highest scores on 
the Medicaid/SCHIP improvement measure.
    (c) In FY 2002 and beyond, we will allocate and award $10 million to 
the ten States with the highest scores on the child care subsidy measure 
and $10 million to the ten States with the highest scores on the family 
formation and stability improvement measure.
    (d) We will distribute the bonus dollars for each measure based on 
each State's percentage of the total amount of the State family 
assistance grants of the States that will receive a bonus.



Sec.270.9  How will we redistribute funds if that becomes necessary?

    (a) If we cannot distribute the funds as specified in Sec.270.8, 
we will reallocate any undistributed funds among the measures listed in 
Sec.270.4.
    (b) If we still cannot distribute funds within the bonus year, they 
will remain available for distribution in the next bonus year, to the 
extent authorized by law.



Sec.270.10  How will we annually review the award process?

    (a) Annual determination. Annually, as needed, we will review the 
measures, data sources, and funding allocations specified in this part 
to determine if modifications, adjustments, or technical changes are 
necessary. We will add new measures or make changes in the funding 
allocations for the various measures only through regulations.
    (b) Criteria. We will determine if any modifications, adjustments, 
or technical changes need to be made based on:
    (1) Our experience in awarding high performance bonuses in previous 
years; and
    (2) The availability of national, State-reliable, and objective 
data.
    (c) Consultation. We will consult with the National Governors' 
Association, the American Public Human Services Association, and other 
interested parties before we make our final decisions on any 
modification, adjustment, or technical changes for the bonus awards. We 
will notify States and other interested parties of our decisions through 
annual program guidance. We will also post this information on the 
Internet.



Sec.270.11  When must the States report the data and other 
information in order to compete for bonus awards?

    (a) All measures. Each State must submit a list of the measures on 
which it is competing by February 28 of each bonus year.
    (b) Work measures. Each State must collect quarterly and submit 
semi-annually during the bonus year the data specified in Sec.270.6(a) 
as follows:
    (1) The data for the first and second quarters of the performance 
year and, if a State chooses to compete on an improvement measure, the 
first and second quarters of the comparison year, must be submitted by 
the dates we will specify in program guidance.

[[Page 181]]

    (2) The data for the third and fourth quarters of the performance 
year and, if a State chooses to compete on an improvement measure, the 
third and fourth quarters of the comparison year, must be submitted by 
the dates we will specify in program guidance.
    (c) SSP-MOE reporting. Each State must collect quarterly its SSP-MOE 
Data Report as specified in Sec.270.6(b) and submit it:
    (1) At the same time as it submits its quarterly TANF Data Report; 
or
    (2) At the time it seeks to be considered for a high performance 
bonus as long as it submits the required data for the full period for 
which this determination will be made.
    (d) Medicaid/SCHIP measures. Each State must submit the data 
required to compete on the Medicaid/SCHIP measures by the dates and in a 
manner that we and CMS will specify.
    (e) Child care subsidy measure. Each State must submit the data 
required to compete on the child care measure by the date(s) we will 
specify.



Sec.270.12  Must States file the data electronically?

    Each State must submit the data required to compete for the high 
performance bonus work measures and the Medicaid/SCHIP measures 
electronically in a manner that we and CMS will specify.



Sec.270.13  What do States need to know about the use of bonus funds?

    (a) A State must use bonus award funds to carry out the purposes of 
the TANF block grant as specified in section 401 (Purpose) and section 
404 (Use of Grants) of the Act.
    (b) As applicable, these funds are subject to the requirements in 
and limitations of sections 404 and 408 of the Act and Sec.263.11 of 
this chapter.
    (c) For Puerto Rico, Guam, the Virgin Islands, and American Samoa, 
the bonus award funds are not subject to the mandatory ceilings on 
funding established in section 1108(c)(4) of the Act.
    (d) States must report quarterly on the use of the bonus funds.

                           PART 282 [RESERVED]



PART 283_IMPLEMENTATION OF SECTION 403(A)(2) OF THE SOCIAL SECURITY
ACT BONUS TO REWARD DECREASE IN ILLEGITIMACY RATIO--Table of Contents



Sec.
283.1 What does this part cover?
283.2 What definitions apply to this part?
283.3 What steps will we follow to award the bonus?
283.4 If a State wants to be considered for bonus eligibility, what 
          birth data must it submit?
283.5 How will we use these birth data to determine bonus eligibility?
283.6 If a State wants to be considered for bonus eligibility, what data 
          on abortions must it submit?
283.7 How will we use these data on abortions to determine bonus 
          eligibility?
283.8 What will be the amount of the bonus?
283.9 What do eligible States need to know to access and use the bonus 
          funds?

    Authority: 42 U.S.C. 603.

    Source: 64 FR 18493, Apr. 14, 1999, unless otherwise noted.



Sec.283.1  What does this part cover?

    This part explains how States may be considered for the ``Bonus to 
Reward Decrease in Illegitimacy Ratio,'' as authorized by section 
403(a)(2) of the Social Security Act. It describes the data on which we 
will base the bonus, how we will make the award, and how we will 
determine the amount of the award.



Sec.283.2  What definitions apply to this part?

    The following definitions apply to this part:
    Abortions means induced pregnancy terminations, including both 
medically and surgically induced pregnancy terminations. This term does 
not include spontaneous abortions, i.e., miscarriages.
    Act means the Social Security Act.
    Bonus refers to the Bonus to Reward Decrease in Illegitimacy Ratio, 
as set forth in section 403(a)(2) of the Act.
    Calculation period refers to the four calendar years used for 
determining the decrease in the out-of-wedlock birth ratios for a bonus 
year. (The years included in the calculation period change from year to 
year.)

[[Page 182]]

    Most recent two-year period for which birth data are available means 
the most recent two calendar years for which the National Center for 
Health Statistics has released final birth data by State.
    Most recent year for which abortion data are available means the 
year that is two calendar years prior to the current calendar year. (For 
example, for eligibility determinations made during calendar year 1999, 
the most recent year for which abortion data are available would be 
calendar year 1997.)
    NCHS means the National Center for Health Statistics, of the Centers 
for Disease Control and Prevention, U.S. Department of Health and Human 
Services.
    Number of out-of-wedlock births for the State means the final number 
of births occurring outside of marriage to residents of the State, as 
reported in NCHS vital statistics data.
    Number of total births for the State means the final total number of 
live births to residents of the State, as reported in NCHS vital 
statistics data.
    Rate of abortions means the number of abortions reported by the 
State in the most recent year for which abortion data are available 
divided by the State's total number of resident live births reported in 
vital statistics for that same year. (This measure is also more 
traditionally known as the ``abortion to live birth ratio.'')
    Ratio refers to the ratio of live out-of-wedlock births to total 
live births, as defined in Sec.283.5(b).
    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, as provided in section 419(a)(5) of 
the Act.
    Vital statistics data means the data reported by State health 
departments to NCHS, through the Vital Statistics Cooperative Program 
(VSCP).
    We (and any other first person plural pronouns) means the Secretary 
of Health and Human Services or any of the following individuals or 
organizations acting in an official capacity on the Secretary's behalf: 
the Assistant Secretary for Children and Families, the Regional 
Administrators for Children and Families, the Department of Health and 
Human Services, and the Administration for Children and Families.



Sec.283.3  What steps will we follow to award the bonus?

    (a) For each of the fiscal years 1999 through 2002, we will:
    (1) Based on the vital statistics data provided by NCHS as described 
in Sec.283.4, calculate the ratios for the most recent two years for 
which final birth data are available, and for the prior two years, as 
described in Sec.283.5;
    (2) Calculate the proportionate change between these two ratios, as 
described in Sec.283.5.
    (3) Identify as potentially eligible a maximum of eight States, 
i.e., Guam, the Virgin Islands, and American Samoa, and five other 
States, that have qualifying decreases in their ratios, using the 
methodology described in Sec.283.5;
    (4) Notify these potentially eligible States that we will consider 
them for the bonus if they submit data on abortions as stated in Sec.
283.6; and
    (5) Identify which of the potentially eligible States that submitted 
the required data on abortions have experienced decreases in their rates 
of abortion relative to 1995, as described in Sec.283.7. These States 
will receive the bonus.
    (b) We will determine the amount of the grant for each eligible 
State, based on the number of eligible States, and whether Guam, 
American Samoa, or the Virgin Islands are eligible. No State will 
receive a bonus award greater than $25 million in any year.



Sec.283.4  If a State wants to be considered for bonus eligibility,
what birth data must it submit?

    (a) To be considered for a bonus, the State must have submitted data 
on out-of-wedlock births as follows:
    (1) The State must have submitted to NCHS the final vital statistics 
data files for all births occurring in the State. These files must show, 
among other elements, the total number of live births and the total 
number of out-of-wedlock live births occurring in the State. These data 
must conform to the Vital Statistics Cooperative Program

[[Page 183]]

contract for all years in the calculation period. This contract 
specifies, among other things, the guidelines and time-lines for 
submitting vital statistics data files; and
    (2) The State must have submitted these data for the most recent two 
years for which NCHS reports final data, as well as for the previous two 
years.
    (b) If a State has changed its method of determining marital status 
for the purposes of these data, the State also must have met the 
following requirements:
    (1) The State has identified all years for which the method of 
determining marital status is different from that used for the previous 
year;
    (2) For those years identified under paragraph (b)(1) of this 
section, the State has either:
    (i) Replicated as closely as possible a consistent method for 
determining marital status at the time of birth, and the State has 
reported to NCHS the resulting alternative number of out-of-wedlock 
births; or
    (ii) If NCHS agrees that such replication is not methodologically 
feasible, the State may chose to accept an NCHS estimate of what the 
alternative number would be;
    (3) The State has submitted documentation to NCHS on what changes 
occurred in the determination of marital status for those years and, if 
appropriate, how it determined the alternative number of out-of-wedlock 
births for the State; and
    (4) For methodological changes that were implemented prior to 1998 
and applicable to data collected for the bonus period, the State has 
submitted the information described in paragraphs (b)(1), (2) and (3) of 
this section within two months after April 14, 1999. For such changes 
implemented during or after 1998, the State must submit such information 
either by the end of calendar year 1999 or according to the same 
deadline that applies to its vital statistics data for that year, 
whichever is later.



Sec.283.5  How will we use these birth data to determine bonus
eligibility?

    (a) We will base eligibility determinations on final vital 
statistics data provided by NCHS showing the number of out-of-wedlock 
live births and the number of total live births among women living in 
each State and a factor provided by NCHS to adjust for changes in data 
reporting for those States that have changed their methodology for 
collecting data on out-of-wedlock births during the bonus period.
    (b) We will use the number of total live births and the number of 
out-of-wedlock births, adjusted for any changes in data collection or 
reporting, to calculate the decrease in the ratio of out-of-wedlock to 
total births for each State as follows:
    (1) We will calculate the ratio as the number of out-of-wedlock 
births for the State during the most recent two-year period for which 
NCHS has final birth data divided by the number of total births for the 
State during the same period. We will calculate, to three decimal 
places, the ratio for each State that submits the necessary data on 
total and out-of-wedlock births described in Sec.283.4.
    (2) We will calculate the ratio for the previous two-year period 
using the same methodology.
    (3) We will calculate the proportionate change in the ratio as the 
ratio of out-of-wedlock births to total births for the most recent two-
year period minus the ratio of out-of-wedlock births to total births 
from the prior two-year period, all divided by the ratio of out-of-
wedlock births to total births for the prior two-year period. A negative 
number will indicate a decrease in the ratio and a positive number will 
indicate an increase in the ratio.
    (c) We will identify which States have a decrease in their ratios 
large enough to make them potentially eligible for the bonus, as 
follows:
    (1) For States other than Guam, American Samoa and the Virgin 
Islands, we will use this calculated change to rank the States and 
identify which five States have the largest decrease in their ratios. 
Only States among the top five will be potentially eligible for the 
bonus. We will identify fewer than five such States as potentially 
eligible if fewer than five experience decreases in their ratios. We 
will

[[Page 184]]

not include Guam, American Samoa and the Virgin Islands in this ranking.
    (2) If we identify more than five States due to a tie in the 
decrease, we will recalculate the ratio and the decrease in the ratio to 
as many decimal places as necessary to eliminate the tie. We will 
identify no more than five States.
    (3) For Guam, American Samoa and the Virgin Islands, we will use the 
calculated change in the ratio to identify which of these States 
experienced a decrease that is either at least as large as the smallest 
qualifying decrease identified in paragraph (c)(1) of this section, or a 
decrease that ranks within the top five decreases when all States and 
Territories are ranked together. These identified States will be 
potentially eligible for the bonus also.
    (4) We will notify the potentially eligible States, as identified 
under paragraphs (a) through (c) of this section that they must submit 
the information on abortions specified under Sec.283.6 if they want to 
be considered for the bonus.



Sec.283.6  If a State wants to be considered for bonus eligibility, 
what data on abortions must it submit?

    (a) To be considered further for bonus eligibility, each potentially 
eligible State, as identified under Sec.283.5, must submit to ACF data 
and information on the number of abortions for calendar year 1995 within 
two months of this notification. This number must measure either of the 
following:
    (1) For calendar year 1995, the total number of abortions performed 
by all providers within the State; or
    (2) For calendar year 1995, the total number of abortions performed 
by all providers within the State on the total population of State 
residents only. This is the preferred measure.
    (b) States must have obtained these data on abortions for calendar 
year 1995 within 60 days of publication of the final rule and must 
include with their submission of 1995 data an official record 
documenting when they obtained the abortion data.
    (c) Within two months of notification by ACF of potential 
eligibility, the State must submit:
    (1) The number of abortions performed for the most recent year for 
which abortion data are available (as defined in Sec.283.2 to mean the 
year that is two calendar years prior to the current calendar year). In 
measuring the number of abortions, the State must use the same 
definition, either under paragraph (a)(1) or paragraph (a)(2) of this 
section, for both 1995 and the most recent year; or
    (2) If applicable, the adjusted number and information specified in 
paragraph (d) of this section.
    (d) If the State's data collection or reporting methodology changed 
between 1995 and the bonus year in such a way as to reflect an increase 
or decrease in the number of abortions that is different than what 
actually occurred during the period, the State must:
    (1) When submitting the number of abortions for the most recent year 
under paragraph (c)(2), adjust the number to exclude increases or 
decreases in the number due to changes in methodology for collecting or 
reporting the data. For example, this calculation should include 
adjustments for increases or decreases in response rates for providers 
in reporting abortion data;
    (2) Provide a rationale for the adjustment, i.e., a description of 
how the data collection or reporting methodology was changed. This could 
include a description of how legislative, policy or procedural changes 
affected the collection or reporting of abortion data, or an indication 
of changes in the response rate of providers in reporting abortion data; 
and
    (3) Provide a certification by the Governor, or his or her designee, 
that the number of abortions reported to ACF accurately reflects these 
adjustments for changes in data collection or reporting methodology.



Sec.283.7  How will we use these data on abortions to determine bonus 
eligibility?

    (a) For those States that have met all the requirements under 
Sec. Sec.283.1 through 283.6, we will calculate the rate of abortions 
for calendar year 1995 and for the most recent year for which abortion 
data are available as defined

[[Page 185]]

in Sec.283.2. These rates will equal the number of abortions reported 
by the State to ACF for the applicable year, divided by total live 
births among women living in the State reported by NCHS for the same 
year. We will calculate the rates to three decimal places.
    (b) If ACF determines that the State's rate of abortions for the 
most recent year for which abortion data are available is less than the 
rate for 1995, and, if the State has met all the requirements listed 
elsewhere under this part, the State will receive the bonus.



Sec.283.8  What will be the amount of the bonus?

    (a) If, for a bonus year, none of the eligible States is Guam, 
American Samoa or the Virgin Islands, then the amount of the grant shall 
be:
    (1) $20 million per State if there are five eligible States; or
    (2) $25 million per State if there are fewer than five eligible 
States.
    (b) If for a bonus year, Guam, the Virgin Islands, or American Samoa 
is an eligible State, then the amount of the grant shall be:
    (1) In the case of such a State, 25 percent of the mandatory ceiling 
amount as defined in section 1108 of the Act; and
    (2) In the case of any other State, $100 million, minus the total 
amount of any bonuses paid to Guam, the Virgin Islands, and American 
Samoa, and divided by the number of eligible States other than Guam, 
American Samoa and the Virgin Islands, not to exceed $25 million per 
State.



Sec.283.9  What do eligible States need to know to access and use the 
bonus funds?

    (a) States must use the bonus funds to carry out the purposes of the 
Temporary Assistance for Needy Families Block Grant in section 401 and 
404 of the Act. This may include statewide programs to prevent and 
reduce the incidence of out-of-wedlock pregnancies.
    (b) As applicable, these funds are subject to the requirements in, 
and the limitations of, sections 404 and 408 of the Act.
    (c) For Puerto Rico, Guam, the Virgin Islands, and American Samoa, 
the bonus award funds are not subject to the mandatory ceilings on 
funding established in section 1108(c)(4) of the Act.



PART 284_METHODOLOGY FOR DETERMINING WHETHER AN INCREASE IN A STATE
OR TERRITORY'S CHILD POVERTY RATE IS THE RESULT OF THE TANF PROGRAM
--Table of Contents



Sec.
284.10 What does this part cover?
284.11 What definitions apply to this part?
284.15 Who must submit information to ACF to carry out the requirements 
          of this part?
284.20 What information will we use to determine the child poverty rate 
          in each State?
284.21 What will we do if the State's child poverty rate increased five 
          percent or more over the two-year period?
284.30 What information must the State include in its assessment of the 
          impact of the TANF program(s) in the State on the increase in 
          child poverty?
284.35 What action will we take in response to the State's assessment 
          and other information?
284.40 When is a corrective action plan due?
284.45 What are the contents and duration of a corrective action plan?
284.50 What information will we use to determine the child poverty rate 
          in each Territory?

    Authority: 42 U.S.C. 613(i)

    Source: 65 FR 39248, June 23, 2000, unless otherwise noted.



Sec.284.10  What does this part cover?

    (a) This part describes the methodology for determining the child 
poverty rates in the States and the Territories, as required by section 
413(i) of the Social Security Act, including determining whether the 
child poverty rate increased by five percent or more as a result of the 
TANF program(s) in the State or Territory. It also describes the content 
and duration of the corrective action plan.
    (b) The requirements of this part do not apply to any Territory that 
has never operated a TANF program.



Sec.284.11  What definitions apply to this part?

    The following definitions apply to this part:

[[Page 186]]

    ACF means the Administration for Children and Families.
    Act means the Social Security Act, unless otherwise specified.
    Census Bureau methodology means the various methods developed by the 
Census Bureau for estimating the number and percentage of children in 
poverty in each State. These methods may include national estimates 
based on the Current Population Survey; the Small Area Income and 
Poverty Estimates; the annual demographic programs, including the 
American Community Survey; or any other programs or methods used by the 
Census Bureau to estimate poverty. ``Children in poverty'' means 
children that live in families with incomes below 100 percent of the 
Census Bureau's poverty threshold.
    Child poverty rate means the percentage of all children in a State 
or Territory which live in families with incomes below 100 percent of 
the Census Bureau's poverty threshold.
    Date of enactment means calendar year 1996.
    MOE means maintenance-of-effort. This is a provision in section 
409(a)(7) of the Social Security Act that requires States to maintain a 
certain level of spending based on historical (i.e., FY 1994) 
expenditure levels.
    SAIPE means the Small Area Income and Poverty Estimates, a 
methodology developed by the Census Bureau to obtain more accurate 
estimates of poverty and income (including the number and percentage of 
children in poverty) at the State and county level between decennial 
censuses.
    SSP-MOE means a separate State program operated outside of the TANF 
program for which the expenditure of State funds may count for MOE 
purposes.
    State means each of the 50 States of the United States and the 
District of Columbia.
    TANF means the Temporary Assistance for Needy Families program under 
sections 401 through 419 of the Social Security Act, as enacted by the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 
sections 101-116 of Pub. L. 104-193 (42 U.S.C. 601-619).
    Territories means American Samoa, the Commonwealth of Puerto Rico, 
Guam, and the United States Virgin Islands.
    Tribal TANF program means a TANF program developed by an eligible 
Tribe, Tribal organization, or consortium of Tribes, and approved by us 
under section 412 of the Act.
    We (and any other first person plural pronouns) means the Secretary 
of Health and Human Services or any of the following individuals and 
organizations acting in an official capacity on the Secretary's behalf: 
The Assistant Secretary for Children and Families, the Regional 
Administrators for Children and Families, the Department of Health and 
Human Services, and the Administration for Children and Families.



Sec.284.15  Who must submit information to ACF to carry out the 
requirements of this part?

    (a) The Chief Executive Officer of the State, or his or her 
designee, is responsible for submitting to ACF the information required 
by this part.
    (b) The State should obtain information from and work with the 
Indian tribe(s) (and Tribal consortia) operating a Tribal TANF program 
in the State in preparing and submitting the assessment, as specified in 
Sec.284.30, and the corrective action plan, as specified in Sec.
284.45.



Sec.284.20  What information will we use to determine the child
poverty rate in each State?

    (a) General. We will determine the child poverty rate in each State 
based on estimates from either the Census Bureau or the State, as 
described in this section. Each year we will use these data to determine 
the change in the State's child poverty rate over a two-year period, 
beginning with calendar years 1996 and 1997.
    (b) Estimates from the Census Bureau. (1) Annually, we will obtain 
from the Census Bureau and provide to each State the estimate of the 
number and percentage of children in poverty in each State. The estimate 
will be based on the Census Bureau methodology.
    (2) In 2000, and annually thereafter, we will determine for each 
State, at the 90-percent confidence level, the percentage change in the 
child poverty

[[Page 187]]

rate and provide this information to the State. The determination of 
percentage change in 2000 will cover the change between calendar years 
1996 and 1997.
    (c) Estimates from the State. (1) As an alternative to the Census 
Bureau estimates provided to the State under paragraph (b) of this 
section, the State may provide to us data on child poverty in the State 
derived from an independent source.
    (2) If the State provides data on child poverty as described in 
paragraph (c)(1) of this section, it must:
    (i) Provide an estimate of the child poverty rate for the same two 
calendar years as the Census Bureau estimates provided to the State 
under paragraph (b)(2) of this section;
    (ii) Provide the change in the child poverty rate for the applicable 
two-calendar-year period at the 90-percent confidence level;
    (iii) Use the official definition of poverty as used by the Census 
Bureau; and
    (iv) Describe the methodology used to develop its independent 
estimates, the sources of data and methodology for collecting the data, 
any known problems associated with making estimates of this type, the 
estimate of the standard error, and the power of the sample to detect a 
five percent change in the child poverty rate.
    (3) The State must submit its independent estimates and supporting 
information within 45 days of the date the State receives the Census 
Bureau estimates as described in paragraph (b) of this section.
    (d) Determination of the State's child poverty rate. (1) If we 
determine that the State's independent estimates of the child poverty 
rate are more reliable than the Census Bureau estimates, we will accept 
these estimates.
    (2) For all other States, we will determine the State's child 
poverty rate based on the Census Bureau's estimates.



Sec.284.21  What will we do if the State's child poverty rate 
increased five percent or more over the two-year period?

    (a) If we determine, based on Sec.284.20, that the State's child 
poverty rate did not increase by five percent or more over the 
applicable two-year period at the 90-percent confidence interval, we 
will:
    (1) Conclude that the State has satisfied the statutory requirements 
of section 413(i) of the Act; and
    (2) Notify the State that no further information from or action by 
the State is required for the applicable two-calendar-year period.
    (b) If we determine, based on Sec.284.20, that the State's child 
poverty rate increased by five percent or more over the applicable two-
year period at the 90-percent confidence level, we will notify the State 
that it has 90 days from the date of its receipt of our notification to 
submit an assessment of the impact of the TANF program(s) in the State, 
as specified in Sec.284.30.



Sec.284.30  What information must the State include in its assessment
of the impact of the TANF program(s) in the State on the increase
in child poverty?

    (a) The State's assessment must:
    (1) Cover the same two-calendar-year period as the Census Bureau 
estimates provided to the State in Sec.284.20(b)(2);
    (2) Directly address the issue of whether the State's child poverty 
rate increased as a result of the TANF program(s) in the State and 
include the State's analysis, explanation, and conclusions in relation 
to this issue; and (3) Include the information on which the assessment 
was based.
    (b) The State's assessment may be supported by any materials the 
State believes to be pertinent to its analysis, explanation, and 
conclusions. The following are examples of such materials:
    (1) The number of families receiving TANF cash assistance payments 
under the State TANF program and, if applicable, the Tribal TANF 
program(s);
    (2) The total amount of State and Tribal spending on TANF cash 
assistance payments;
    (3) The number and/or percentage of eligible families with children 
in the State who are participating in the Food Stamp Program or other 
State supportive and assistance programs;
    (4) The proportion of students certified for free or reduced-price 
school lunches;
    (5) TANF income eligibility rules that show that client 
participation was

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not limited or cash benefits did not decrease;
    (6) Examples of efforts that the State and the Indian tribe(s), as 
appropriate, have taken using TANF and other funds to support families 
entering the work force;
    (7) The percentage of eligible individuals in the State receiving 
TANF assistance;
    (8) Information on TANF program participation such as the number of 
applications disapproved or denied, or cases sanctioned;
    (9) The number of TANF cases closed as a result of time-limit 
restrictions or non-compliance with work requirements;
    (10) The amount of total cash assistance expenditures that can be 
claimed for SSP-MOE purposes;
    (11) Information based on Unemployment Insurance wage record data 
showing, for example, increases in the number of TANF participants 
entering jobs, retaining jobs, and increasing their earnings;
    (12) The number of families receiving work subsidies, i.e., payments 
to employers or third parties to help cover the costs of employee wages, 
benefits, supervision, and training;
    (13) Information that a State met the definition of ``needy State'' 
under section 403(b)(6) of the Act for an extended period of time within 
the applicable two-calendar-year period;
    (14) Examples of past efforts that the State and the Indian 
tribe(s), as appropriate, have taken to mitigate or address child 
poverty;
    (15) Any other data on the TANF program(s) in the State that would 
support the State's conclusions; and
    (16) Information on other circumstances in the State that may have 
contributed to the increase in child poverty such as changes in economic 
or social conditions, e.g., an increase in the State's unemployment 
rate.



Sec.284.35  What action will we take in response to the State's
assessment and other information?

    (a) We will review the State's assessment along with other available 
information. If we determine that the increase in the child poverty rate 
of five percent or more is not the result of the TANF program(s) in the 
State, we will notify the State that no further information from, or 
action by, the State is required for the applicable two-calendar-year 
period.
    (b) Based on our review of the State's assessment and other 
information, if we determine that the increase in the State's child 
poverty rate of five percent or more is the result of the TANF 
program(s) in the State, we will notify the State that it must submit a 
corrective action plan as specified in Sec. Sec.284.40 and 284.45.



Sec.284.40  When is a corrective action plan due?

    Each State must submit a corrective action plan to ACF within 90 
days of the date the State receives notice of our determination that, as 
a result of the TANF program(s) in the State, its child poverty rate 
increased by five percent or more for the applicable two-calendar-year 
period.



Sec.284.45  What are the contents and duration of the corrective
action plan?

    (a) The State must include in the corrective action plan:
    (1) An outline of the manner in which the State or Territory will 
reduce its child poverty rate;
    (2) A description of the actions it will take under the plan; and
    (3) Any actions to be taken under the plan by the Indian tribe(s) 
(or Tribal consortia) operating a TANF program in the State.
    (b) The State must implement the corrective action plan until it 
determines and notifies us that its child poverty rate, as determined in 
Sec.284.20, is less than the lowest child poverty rate on the basis of 
which the State was required to submit the corrective action plan. The 
``lowest child poverty rate'' means the five percent threshold above the 
first year in the two-year comparison period.



Sec.284.50  What information will we use to determine the child
poverty rate in each Territory?

    (a) Our intent is that, to the extent that reliable data are 
available and the procedures are appropriate, the Territories must meet 
the requirements in Sec. Sec.284.11 through 284.45 as specified for

[[Page 189]]

the 50 States and the District of Columbia.
    (b) When reliable Census Bureau data are available for the 
Territories, we will:
    (1) Notify the Territories through guidance of our intent to use 
these data in the implementation of this part; and
    (2) Begin the process by providing to each Territory the number and 
percent of children in poverty in each jurisdiction, as specified in 
Sec.284.20(b).

                           PART 285 [RESERVED]



PART 286_TRIBAL TANF PROVISIONS--Table of Contents



                Subpart A_General Tribal TANF Provisions

Sec.
286.1 What does this part cover?
286.5 What definitions apply to this part?
286.10 What does the term ``assistance'' mean?
286.15 Who is eligible to operate a Tribal TANF program?

                      Subpart B_Tribal TANF Funding

286.20 How is the amount of a Tribal Family Assistance Grant (TFAG) 
          determined?
286.25 How will we resolve disagreements over the State-submitted data 
          used to determine the amount of a Tribal Family Assistance 
          Grant?
286.30 What is the process for retrocession of a Tribal Family 
          Assistance Grant?
286.35 What are proper uses of Tribal Family Assistance Grant funds?
286.40 May a Tribe use the Tribal Family Assistance Grant to fund IDAs?
286.45 What uses of Tribal Family Assistance Grant funds are improper?
286.50 Is there a limit on the percentage of a Tribal Family Assistance 
          Grant that can be used for administrative costs?
286.55 What types of costs are subject to the administrative cost limit 
          on Tribal Family Assistance Grants?
286.60 Must Tribes obligate all Tribal Family Assistance Grant funds by 
          the end of the fiscal year in which they are awarded?

            Subpart C_Tribal TANF Plan Content and Processing

286.65 How can a Tribe apply to administer a Tribal Temporary Assistance 
          for Needy Families (TANF) program?
286.70 Who submits a Tribal Family Assistance Plan?
286.75 What must be included in the Tribal Family Assistance Plan?
286.80 What information on minimum work participation requirements must 
          a Tribe include in its Tribal Family Assistance Plan?
286.85 How will we calculate the work participation rates?
286.90 How many hours per week must an adult or minor head-of-household 
          participate in work-related activities to count in the 
          numerator of the work participation rate?
286.95 What, if any, are the special rules concerning counting work for 
          two-parent families?
286.100 What activities count towards the work participation rate?
286.105 What limitations concerning vocational education, job search and 
          job readiness assistance exist with respect to the work 
          participation rate?
286.110 What safeguards are there to ensure that participants in Tribal 
          TANF work activities do not displace other workers?
286.115 What information on time limits for the receipt of assistance 
          must a Tribe include in its Tribal Family Assistance Plan?
286.120 Can Tribes makes exceptions to the established time limit for 
          families?
286.125 Does the receipt of TANF benefits under a State or other Tribal 
          TANF program count towards a Tribe's TANF time limit?
286.130 Does the receipt of Welfare-to-Work (WtW) cash assistance count 
          towards a Tribe's TANF time limit?
286.135 What information on penalties against individuals must be 
          included in a Tribal Family Assistance Plan?
286.140 What special provisions apply to victims of domestic violence?
286.145 What is the penalty if an individual refuses to engage in work 
          activities?
286.150 Can a family, with a child under age 6, be penalized because a 
          parent refuses to work because (s)he cannot find child care?
286.155 May a Tribe condition eligibility for Tribal TANF assistance on 
          assignment of child support to the Tribe?
286.160 What are the applicable time frames and procedures for 
          submitting a Tribal Family Assistance Plan?
286.165 How is a Tribal Family Assistance Plan amended?
286.170 How may a Tribe petition for administrative review of 
          disapproval of a TFAP or amendment?
286.175 What special provisions apply to Alaska?
286.180 What is the process for developing the comparability criteria 
          that are required in Alaska?
286.185 What happens when a dispute arises between the State of Alaska 
          and the

[[Page 190]]

          Tribal TANF eligible entities in the State related to the 
          comparability criteria?
286.190 If the Secretary, the State of Alaska, or any of the Tribal TANF 
          eligible entities in the State of Alaska want to amend the 
          comparability criteria, what is the process for doing so?

                 Subpart D_Accountability and Penalties

286.195 What penalties will apply to Tribes?
286.200 How will we determine if Tribal Family Assistance Grant funds 
          were misused or intentionally misused?
286.205 How will we determine if a Tribe fails to meet the minimum work 
          participation rate(s)?
286.210 What is the penalty for a Tribe's failure to repay a Federal 
          loan?
286.215 When are the TANF penalty provisions applicable?
286.220 What happens if a Tribe fails to meet TANF requirements?
286.225 How may a Tribe establish reasonable cause for failing to meet a 
          requirement that is subject to application of a penalty?
286.230 What if a Tribe does not have reasonable cause for failing to 
          meet a requirement?
286.235 What penalties cannot be excused?
286.240 How can a Tribe appeal our decision to take a penalty?

          Subpart E_Data Collection and Reporting Requirements

286.245 What data collection and reporting requirements apply to Tribal 
          TANF programs?
286.250 What definitions apply to this subpart?
286.255 What quarterly reports must the Tribe submit to us?
286.260 May Tribes use sampling and electronic filing?
286.265 When are quarterly reports due?
286.270 What happens if the Tribe does not satisfy the quarterly 
          reporting requirements?
286.275 What information must Tribes file annually?
286.280 When are annual reports due?
286.285 How do the data collection and reporting requirements affect 
          Public Law 102-477 Tribes?

    Authority: 42 U.S.C. 601, 604, and 612; Public Law 111-5.

    Source: 65 FR 8530, Feb. 18, 2000, unless otherwise noted.



                Subpart A_General Tribal TANF Provisions



Sec.286.1  What does this part cover?

    Section 412 of the Social Security Act allows Indian tribes to apply 
to operate a Tribal Family Assistance program. This part implements 
section 412. It specifies:
    (a) who can apply to operate a Tribal Family Assistance program;
    (b) the requirements for the submission and contents of a Tribal 
Family Assistance Plan;
    (c) the determination of the amount of a Tribal Family Assistance 
Grant; and
    (d) other program requirements and procedures.



Sec.286.5  What definitions apply to this part?

    The following definitions apply under this part:
    ACF means the Administration for Children and Families.
    Act means the Social Security Act, unless otherwise specified.
    Administrative cost means costs necessary for the proper 
administration of the TANF program.
    (1) It excludes the direct costs of providing program services.
    (i) For example, it excludes costs of providing diversion benefits 
and services, providing program information to clients, screening and 
assessments, development of employability plans, work activities, post-
employment services, work supports, information on and referral to 
Medicaid, Child Health Insurance Program (CHIP), Food Stamp and Native 
Employment Works (NEW) programs and case management.
    (ii) It excludes the salaries and benefit costs for staff providing 
program services and the direct administrative costs associated with 
providing the services, such as the costs for supplies, equipment, 
travel, postage, utilities, rental of office space and maintenance of 
office space, and
    (iii) It excludes information technology and computerization needed 
for tracking and monitoring.
    (2) It includes the costs for general administration and 
coordination of this program, including contract costs for these 
functions and indirect (or

[[Page 191]]

overhead) costs. Some examples of administrative costs include, but are 
not limited to:
    (i) Salaries and benefits and all other direct costs not associated 
with providing program services to individuals, including staff 
performing administrative and coordination functions;
    (ii) Preparation of program plans, budgets, and schedules;
    (iii) Monitoring of programs and projects;
    (iv) Fraud and abuse units;
    (v) Procurement activities;
    (vi) Public relations;
    (vii) Services related to accounting, litigation, audits, management 
of property, payroll, and personnel;
    (viii) Costs for the goods and services required for administration 
of the program such as the costs for supplies, equipment, travel, 
postage, utilities, and rental of office space and maintenance of office 
space, provided that such costs are not excluded as a direct 
administrative cost for providing program services under paragraph (1) 
of this definition;
    (ix) Travel costs incurred for official business and not excluded as 
a direct administrative cost for providing program services under 
paragraph (1) of this definition;
    (x) Management information systems not related to the tracking and 
monitoring of TANF requirements (e.g., for a personnel and payroll 
system for Tribal staff); and
    (xi) Preparing reports and other documents related to program 
requirements.
    Adult means an individual who is not a ``minor child,'' as defined 
below.
    Alaska Tribal TANF entity means the twelve Alaska Native regional 
nonprofit corporations in the State of Alaska and the Metlakatla Indian 
Community of the Annette Islands Reserve.
    Assistant Secretary means the Assistant Secretary for Children and 
Families, Department of Health and Human Services.
    Cash assistance, when provided to participants in the Welfare-to-
Work program, has the meaning specified at Sec.286.130.
    Comparability means similarity between State and Tribal TANF 
programs in the State of Alaska. Comparability, when defined related to 
services provided, does not necessarily mean identical or equal 
services.
    Consortium means a group of Tribes working together for the same 
identified purpose and receiving combined TANF funding for that purpose.
    The Department means the Department of Health and Human Services.
    Duplicative Assistance means the receipt of services/ assistance 
from two or more TANF programs for the same purpose.
    Eligible families means all families eligible for TANF funded 
assistance under the Tribal TANF program funded under section 412(a), 
including:
    (1) All U.S. citizens who meet the Tribe's criteria for Tribal TANF 
assistance;
    (2) All qualified aliens, who meet the Tribe's criteria for Tribal 
TANF assistance, who entered the U.S. before August 22, 1996;
    (3) All qualified aliens, who meet the Tribe's criteria for Tribal 
TANF assistance, who entered the U.S. on or after August 22, 1996, who 
have been in the U.S. for at least 5 years beginning on the date of 
entry into the U.S. with a qualified alien status, are eligible 
beginning 5 years after the date of entry into the U.S. There are 
exceptions to this 5-year bar for qualified aliens who enter on or after 
August 22, 1996, and the Tribal TANF program must cover these excepted 
individuals:
    (a) An alien who is admitted to the U.S. as a refugee under section 
207 of the Immigration and Nationality Act;
    (b) An alien who is granted asylum under section 208 of such Act;
    (c) An alien whose deportation is being withheld under section 
243(h) of such Act; and
    (d) An alien who is lawfully residing in any State and is a veteran 
with an honorable discharge, is on active duty in the Armed Forces of 
the U.S., or is the spouse or unmarried dependent child of such an 
individual;
    (4) All permanent resident aliens who are members of an Indian 
tribe, as defined in section 4(e) of the Indian Self-Determination and 
Education Assistance Act;

[[Page 192]]

    (5) All permanent resident aliens who have 40 qualifying quarters of 
coverage as defined by Title II of the Act.
    Eligible Indian tribe means any Tribe or intertribal consortium that 
meets the definition of Indian tribe in this section and is eligible to 
submit a Tribal TANF plan to ACF.
    Family Violence Option (or FVO) means the provision at section 
402(a)(7) of the Act made available to Tribes under which a Tribe may 
certify in its Tribal TANF plan that it has elected the option to 
implement comprehensive strategies for identifying and serving victims 
of domestic violence.
    Fiscal year means the 12-month period beginning on October 1 of the 
preceding calendar year and ending on September 30.
    FY means fiscal year.
    Good cause domestic violence waiver means a waiver of one or more 
program requirements granted by a Tribe to a victim of domestic violence 
under the FVO, as described in Sec.286.140(a)(3).
    Grant period means the period of time that is specified in the 
Tribal TANF grant award document.
    Indian, Indian tribe and Tribal Organization have the same meaning 
given such terms by section 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b), except that the term ``Indian 
tribe'' means, with respect to the State of Alaska, only the Metlakatla 
Indian Community of the Annette Islands Reserve and the following Alaska 
Native regional nonprofit corporations:
    (1) Arctic Slope Native Association;
    (2) Kawerak, Inc.;
    (3) Maniilaq Association;
    (4) Association of Village Council Presidents;
    (5) Tanana Chiefs Council;
    (6) Cook Inlet Tribal Council;
    (7) Bristol Bay Native Association;
    (8) Aleutian and Pribilof Island Association;
    (9) Chugachmuit;
    (10) Tlingit Haida Central Council;
    (11) Kodiak Area Native Association; and
    (12) Copper River Native Association.
    Indian country has the meaning given the term in 18 U.S.C. 1151.
    Minor child means an individual who:
    (1) Has not attained 18 years of age; or
    (2) Has not attained 19 years of age and is a full-time student in a 
secondary school (or in the equivalent level of vocational or technical 
training).
    Minor Head-of-Household means an individual under age 18, or 19 and 
a full-time student in a secondary school, who is the custodial parent 
of a minor child.
    PRWORA means the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996.
    Qualified Aliens has the same meaning given the term in 8 U.S.C. 
1641 except that it also includes members of an Indian tribe, as defined 
in section 4(e) of the Indian Self-Determination and Education 
Assistance Act, who are lawfully admitted under 8 U.S.C. 1359.
    Retrocession means the process by which a Tribe voluntarily 
terminates and cedes back (or returns) a Tribal TANF program to the 
State which previously served the population covered by the Tribal TANF 
plan. Retrocession includes the voluntary relinquishment of the 
authority to obligate previously awarded grant funds before that 
authority would otherwise expire.
    Secretary means the Secretary of the Department of Health and Human 
Services.
    Scientifically acceptable sampling method means a probability 
sampling method in which every sampling unit has a known, non-zero 
chance to be included in the sample and the sample size requirements are 
met.
    SFAG or State Family Assistance Grant means the amount of the block 
grant funded under section 403(a) of the Act for each eligible State.
    SFAP or State Family Assistance Plan is the plan for implementation 
of a State TANF program under PRWORA.
    State means, except as otherwise specifically provided, 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, 
which is authorized under title IV-A of the Social Security Act.

[[Page 193]]

    TANF funds mean funds authorized under section 412(a) of the Act.
    TFAG or Tribal Family Assistance Grant means the amount of the block 
grant funded under section 412(a) of the Act for each eligible Tribe.
    TFAP or Tribal Family Assistance Plan means the plan for 
implementation of the Tribal TANF program under section 412(b) of the 
Act.
    Title IV-A refers to the title of the Social Security Act that now 
includes TANF, but previously included AFDC and EA. For the purpose of 
the TANF program regulations, this term does not include child care 
programs authorized and funded under section 418 of the Act, or their 
predecessors, unless we specify otherwise.
    Title IV-F refers to the title of the Social Security Act that was 
eliminated with the creation of TANF and previously included the Job 
Opportunities and Basic Skills Training Program (JOBS).
    Tribal TANF expenditures means expenditures of TANF funds, within 
the Tribal TANF program.
    Tribal TANF program means a Tribal program subject to the 
requirements of section 412 of the Act that is funded by TANF funds on 
behalf of eligible families.
    Victim of domestic violence means an individual who is battered or 
subject to extreme cruelty under the definition at section 
408(a)(7)(C)(iii) of the Act.
    We (and any other first person plural pronouns) refers to The 
Secretary of Health and Human Services, or any of the following 
individuals or organizations acting in an official capacity on the 
Secretary's behalf: the Assistant Secretary for Children and Families, 
the Regional Administrators for Children and Families, the Department of 
Health and Human Services, and the Administration for Children and 
Families.
    Welfare-related services means all activities, assistance, and 
services funded under Tribal TANF provided to an eligible family. See 
definition of ``Assistance'' in Sec.286.10.
    Welfare-to-Work means the program for funding work activities at 
section 412(a)(2)(C) of the Act.
    WtW means Welfare-to-Work.
    WtW cash assistance, when provided to participants in the Welfare-
to-Work program, has the meaning specified at Sec.286.130.



Sec.286.10  What does the term ``assistance'' mean?

    (a) The term ``assistance'' includes cash, payments, vouchers, and 
other forms of benefits designed to meet a family's ongoing basic needs 
(i.e., for food, clothing, shelter, utilities, household goods, personal 
care items, and general incidental expenses).
    (1) It includes such benefits even when they are:
    (i) Provided in the form of payments by a TANF agency, or other 
agency on its behalf, to individual recipients; and
    (ii) Conditioned on participation in work experience or community 
service or any other work activity.
    (2) Except where excluded under paragraph (b) of this section, it 
also includes supportive services such as transportation and child care 
provided to families who are not employed.
    (b) It excludes:
    (1) Nonrecurring, short-term benefits that:
    (i) Are designed to deal with a specific crisis situation or episode 
of need;
    (ii) Are not intended to meet recurrent or ongoing needs; and
    (iii) Will not extend beyond four months.
    (2) Work subsidies (i.e., payments to employers or third parties to 
help cover the costs of employee wages, benefits, supervision, and 
training);
    (3) Supportive services such as child care and transportation 
provided to families who are employed;
    (4) Refundable earned income tax credits;
    (5) Contributions to, and distributions from, Individual Development 
Accounts;
    (6) Services such as counseling, case management, peer support, 
child care information and referral, information on and referral to 
Medicaid, Child Health Insurance Program (CHIP), Food Stamp and Native 
Employment Works (NEW) programs, transitional services, job retention, 
job advancement, and other employment-related services that do not 
provide basic income support; and

[[Page 194]]

    (7) Transportation benefits provided under a Job Access or Reverse 
Commute project, pursuant to section 404(k) of the Act, to an individual 
who is not otherwise receiving assistance.
    (c) The definition of the term assistance specified in paragraphs 
(a) and (b) of this section does not preclude a Tribe from providing 
other types of benefits and services consistent with the purposes of the 
TANF program.



Sec.286.15  Who is eligible to operate a Tribal TANF program?

    (a) An Indian tribe that meets the definition of Indian tribe given 
in Sec.286.5 is eligible to apply to operate a Tribal Family 
Assistance Program.
    (b) In addition, an intertribal consortium of eligible Indian tribes 
may develop and submit a single TFAP.



                      Subpart B_Tribal TANF Funding



Sec.286.20  How is the amount of a Tribal Family Assistance Grant
(TFAG) determined?

    (a) We will request and use data submitted by a State to determine 
the amount of a TFAG. The State data that we will request and use are 
the total Federal payments attributable to State expenditures, including 
administrative costs (which includes systems costs) for fiscal year 1994 
under the former Aid to Families With Dependent Children, Emergency 
Assistance and Job Opportunities and Basic Skills Training programs, for 
all Indian families residing in the geographic service area or areas 
identified in the Tribe's letter of intent or Tribal Family Assistance 
Plan.
    (1) A Tribe must indicate its definition of ``Indian family'' in its 
Tribal Family Assistance Plan. Each Tribe may define ``Indian family'' 
according to its own criteria.
    (2) When we request the necessary data from the State, the State 
will have 30 days from the date of the request to submit the data.
    (i) If we do not receive the data requested from the State at the 
end of the 30-day period, we will so notify the Tribe.
    (ii) In cases where data is not received from the State, the Tribe 
will have 45 days from the date of the notification in which to submit 
relevant information. Relevant information may include, but is not 
limited to, Census Bureau data, data from the Bureau of Indian Affairs, 
data from other Federal programs, and Tribal records. In such a case, we 
will use the data submitted by the Tribe to assist us in determining the 
amount of the TFAG. Where there are inconsistencies in the data, follow-
up discussions with the Tribe and the State will ensue.
    (b) We will share the data submitted by the State under paragraph 
(a)(2)(i) of this section with the Tribe. The Tribe must submit to the 
Secretary a notice as to the Tribe's agreement or disagreement with such 
data no later than 45 days after the date of our notice transmitting the 
data from the State. During this 45-day period we will help resolve any 
questions the Tribe may have about the State-submitted data.
    (c) We will notify each Tribe that has submitted a TFAP of the 
amount of the TFAG. At this time, we will also notify the State of the 
amount of the reduction in its SFAG.
    (d) We will prorate TFAGs that are initially effective on a date 
other than October 1 of any given Federal fiscal year, based on the 
number of days remaining in the Federal fiscal year.



Sec.286.25  How will we resolve disagreements over the State-
submitted data used to determine the amount of a Tribal Family 
Assistance Grant?

    (a) If a Tribe disagrees with the data submitted by a State, the 
Tribe may submit additional relevant information to the Secretary. 
Relevant information may include, but is not limited to, Census Bureau 
data, data from the Bureau of Indian Affairs, data from other Federal 
programs, and Tribal records.
    (1) The Tribe must submit any relevant information within 45 days 
from the date it notifies the Secretary of its disagreement with State 
submitted data under Sec.286.20(b).
    (2) We will review the additional relevant information submitted by 
the Tribe, together with the State-submitted data, in order to make a 
determination as to the amount of the TFAG. We will determine the amount 
of the TFAG at the earliest possible

[[Page 195]]

date after consideration of all relevant data.



Sec.286.30  What is the process for retrocession of a Tribal Family 
Assistance Grant?

    (a) A Tribe that wishes to terminate its TFAG prior to the end of 
its three-year plan must--
    (1) Notify the Secretary and the State in writing of the reason(s) 
for termination no later than 120 days prior to the effective date of 
the termination, or
    (2) Notify the Secretary in writing of the reason(s) for termination 
no later than 30 days prior to the effective date of the termination, 
where such effective data is mutually agreed upon by the Tribe and the 
affected State(s).
    (b) The effective date of the termination must coincide with the 
last day of a calendar month.
    (c) For a Tribe that retrocedes, the provisions of 45 CFR part 75 
will apply with regard to closeout of the grant. All unobligated funds 
will be returned by the Tribe to the Federal government.
    (d) The SFAG will be increased by the amount of the TFAG available 
for the subsequent quarterly installment.
    (e) A Tribe's application to implement a TANF program subsequent to 
its retrocession will be treated as any other application to operate a 
TANF program, except that we may take into account when considering 
approval--
    (1) Whether the circumstances that the Tribe identified for 
termination of its TANF program remain applicable and the extent to 
which--
    (i) The Tribe has control over such circumstances, and
    (ii) Such circumstances are reasonably related to program funding 
accountability, and
    (2) Whether any outstanding funds and penalty amounts are repaid.
    (f) A Tribe which retrocedes a Tribal TANF program is responsible 
for:
    (1) Complying with the data collection and reporting requirements 
and all other program requirements for the period before the 
retrocession is effective;
    (2) Any applicable penalties (see subpart D) for actions occurring 
prior to retrocession; the provisions of 45 CFR part 75;
    (3) compliance with other Federal statutes and regulations 
applicable to the TANF program; and
    (4) any penalties resulting from audits covering the period before 
the effective date of retrocession.

[65 FR 8530, Feb. 18, 2000, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.286.35  What are proper uses of Tribal Family Assistance Grant 
funds?

    (a) Tribes may use TFAGs for expenditures that:
    (1) Are reasonably calculated to accomplish the purposes of TANF, 
including, but not limited to, the provision to low income households 
with assistance in meeting home heating and cooling costs; assistance in 
economic development and job creation activities, the provision of 
supportive services to assist needy families to prepare for, obtain, and 
retain employment; the provision of supportive services to prevent of 
out-of-wedlock pregnancies, and assistance in keeping families together, 
or
    (2) Were an authorized use of funds under the State plans for Parts 
A or F of title IV of the Social Security Act, as such parts were in 
effect on September 30, 1995.
    (b) [Reserved]



Sec.286.40  May a Tribe use the Tribal Family Assistance Grant to fund
IDAs ?

    (a) If the Tribe elects to operate an IDA program, it may use 
Federal TANF funds or WtW funds to fund IDAs for individuals who are 
eligible for TANF assistance and may exercise flexibility within the 
limits of Federal regulations and the statute.
    (b) The following restrictions apply to IDA funds:
    (1) A recipient may deposit only earned income into an IDA.
    (2) A recipient's contributions to an IDA may be matched by, or 
through, a qualified entity.
    (3) A recipient may withdraw funds only for the following reasons:
    (i) To cover post-secondary education expenses, if the amount is 
paid directly to an eligible educational institution;

[[Page 196]]

    (ii) For the recipient to purchase a first home, if the amount is 
paid directly to the person to whom the amounts are due and it is a 
qualified acquisition cost for a qualified principal residence by a 
qualified first-time buyer; or
    (iii) For business capitalization, if the amounts are paid directly 
to a business capitalization account in a federally insured financial 
institution and used for a qualified business capitalization expense.
    (c) To prevent recipients from withdrawing funds held in an IDA 
improperly, Tribes may do the following:
    (1) Count withdrawals as earned income in the month of withdrawal, 
unless already counted as income,
    (2) Count withdrawals as resources in determining eligibility, or
    (3) Take such other steps as the Tribe has established in its Tribal 
plan or written Tribal policies to deter inappropriate use.



Sec.286.45  What uses of Tribal Family Assistance Grant funds are 
improper?

    (a) A Tribe may not use Tribal Family Assistance Grant funds to 
provide assistance to:
    (1) Families or individuals that do not otherwise meet the 
eligibility criteria contained in the Tribal Family Assistance Plan 
(TFAP); or
    (2) For more than the number of months as specified in a Tribe's 
TFAP (unless covered by a hardship exemption); or
    (3) Individuals who are not citizens of the United States or 
qualified aliens or who do not otherwise meet the definition of 
``eligible families'' at Sec.286.5.
    (b) Tribal Family Assistance Grant funds may not be used to 
contribute to or to subsidize non-TANF programs.
    (c) A Tribe may not use Tribal Family Assistance Grant funds for 
services or activities prohibited by 45 CFR part 75, subpart E.
    (d) All provisions in 45 CFR part 75 are applicable to the Tribal 
TANF program.
    (e) Tribal TANF funds may not be used for the construction or 
purchase of facilities or buildings.
    (f) Tribes must use program income generated by the Tribal Family 
Assistance grant for the purposes of the TANF program and for allowable 
TANF services, activities and assistance.

[65 FR 8530, Feb. 18, 2000, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.286.50  Is there a limit on the percentage of a Tribal Family
Assistance Grant that can be used for administrative costs?

    (a) ACF will negotiate a limitation on administrative costs with 
each Tribal TANF applicant individually for the first year of a 
program's operation based on the applicant's proposed administrative 
cost allocation. No Tribal TANF grantee may expend more than 35 percent 
of its Tribal Family Assistance Grant for administrative costs during 
the first year.
    (b) ACF will negotiate a limitation on administrative costs with 
each Tribal TANF applicant individually for the second year of a 
program's operation based on the applicant's proposed administrative 
cost allocation. No Tribal TANF grantee may expend more than 30 percent 
of its TFAG for administrative costs during the second year.
    (c) ACF will negotiate a limitation on administrative costs with 
each Tribal TANF applicant individually for the third and all subsequent 
years of a program's operation based on the applicant's proposed 
administrative cost allocation. As negotiated, a Tribal TANF grantee may 
not expend more than 25 percent of its TFAG for administrative costs 
during any subsequent grant period.
    (1) For the purposes of determining administrative costs, Tribes 
with approved plans who have been operating Tribal TANF programs prior 
to the effective date of this regulation will be able to negotiate a 
reasonable adjustment in their approved administrative cost rate, not to 
exceed the limitations in the Final Rule delineated above.
    (2) [Reserved]
    (d) ACF will negotiate limitations on administrative costs based on, 
but not limited to, a Tribe's TANF funding level, economic conditions, 
and the resources available to the Tribe, the relationship of the 
Tribe's administrative cost allocation proposal to the overall

[[Page 197]]

purposes of TANF, and a demonstration of the Tribe's administrative 
capability.



Sec.286.55  What types of costs are subject to the administrative 
cost limit on Tribal Family Assistance Grant funds?

    (a) Activities that fall within the definition of ``administrative 
costs'' at Sec.286.5 are subject to the limit determined under Sec.
286.50.
    (b) Information technology and computerization for tracking, data 
entry and monitoring, including personnel and other costs associated 
with the automation activities needed for Tribal TANF monitoring, data 
entry and tracking purposes, are excluded from the administrative cost 
cap, even if they fall within the definition of ``administrative 
costs.''
    (c) Designing, administering, monitoring, and controlling a sample 
are not inherent parts of information technology and computerization 
and, thus, costs associated with these tasks must be considered 
administrative costs.
    (d) Indirect Costs negotiated by BIA, the Department's Division of 
Cost Allocation, or another federal agency must be considered to be part 
of the total administrative costs.



Sec.286.60  Must Tribes obligate all Tribal Family Assistance Grant
funds by the end of the fiscal year in which they are awarded?

    No. A Tribe may reserve amounts awarded to it, without fiscal year 
limitation, to provide assistance, benefits, and services in accordance 
with the requirements under Sec.286.35 or Sec.286.40, if applicable.

[74 FR 25163, May 27, 2009]



            Subpart C_Tribal TANF Plan Content and Processing



Sec.286.65  How can a Tribe apply to administer a Tribal Temporary
Assistance For Needy Families (TANF) Program?

    (a) Any eligible Indian tribe, Alaska Native organization, or 
intertribal consortium that wishes to administer a Tribal TANF program 
must submit a three-year TFAP to the Secretary of the Department of 
Health and Human Services. The original must be submitted to the 
appropriate ACF Regional Office with a copy to the ACF Central Office.
    (b) A Tribe currently operating a Tribal TANF program must submit to 
the appropriate ACF Regional Office, with a copy to the ACF Central 
Office, no later than 120 days prior to the end of the three-year grant 
period, either--
    (1) A letter of intent, with a copy to the affected State or States, 
which specifies they do not intend to continue operating the program 
beyond the end of the three-year grant period; or
    (2) A letter of intent, with a copy to the affected State or States, 
which specifies they intend to continue program operations with no 
changes to the geographic service area or service population; or
    (3) A new three-year plan which indicates a change in either the 
geographic service area or service population.
    (c) For Tribes choosing option (b)(2) above, a new three-year plan 
must be submitted to the appropriate ACF Regional Office, with a copy to 
the ACF Central Office, no later than 60 days before the end of the 
current three-year grant period.



Sec.286.70  Who submits a Tribal Family Assistance Plan?

    (a) A TFAP must be submitted by the chief executive officer of the 
Indian tribe and be accompanied by a Tribal resolution supporting the 
TFAP.
    (b) A TFAP from a consortium must be forwarded under the signature 
of the chief executive officer of the consortium and be accompanied by 
Tribal resolutions from all participating Tribes that demonstrate each 
individual Tribe's support of the consortium, the delegation of 
decision-making authority to the consortium's governing board, and the 
Tribe's recognition that matters involving operation of the Tribal TANF 
consortium are the express responsibility of the consortium's governing 
board.
    (c) When one of the participating Tribes in a consortium wishes to 
withdraw from the consortium, the Tribe needs to both notify the 
consortium and the Secretary of this fact.

[[Page 198]]

    (1) This notification must be made at least 120 days prior to the 
effective date of the withdrawal.
    (2) The time frame in paragraph (c)(i) of this section is applicable 
only if the Tribe's withdrawal will cause a change to the service area 
or population of the consortium.
    (d) When one of the participating Tribes in a consortium wishes to 
withdraw from the consortium in order to operate its own Tribal TANF 
program, the Tribe needs to submit a Tribal TANF plan that follows the 
requirements at Sec.286.75 and Sec.286.165.



Sec.286.75  What must be included in the Tribal Family Assistance 
Plan?

    (a) The TFAP must outline the Tribe's approach to providing welfare-
related services for the three-year period covered by the plan, 
including:
    (1) Information on the general eligibility criteria the Tribe has 
established, which includes a definition of ``needy family,'' including 
income and resource limits and the Tribe's definition of ``Tribal member 
family'' or ``Indian family.''
    (2) A description of the assistance, services, and activities to be 
offered, and the means by which they will be offered. The description of 
the services, assistance, and activities to be provided includes whether 
the Tribe will provide cash assistance, and what other assistance, 
services, and activities will be provided.
    (3) If the Tribe will not provide the same services, assistance, and 
activities in all parts of the service area, the TFAP must indicate any 
variations.
    (4) If the Tribe opts to provide different services to specific 
populations, including teen parents and individuals who are 
transitioning off TANF assistance, the TFAP must indicate whether any of 
these services will be provided and, if so, what services will be 
provided.
    (5) The Tribe's goals for its TANF program and the means of 
measuring progress towards those goals;
    (6) Assurance that a 45-day public comment period on the Tribal TANF 
plan concluded prior to the submission of the TFAP.
    (7) Assurance that the Tribe has developed a dispute resolution 
process to be used when individuals or families want to challenge the 
Tribe's decision to deny, reduce, suspend, sanction or terminate 
assistance.
    (8) Tribes may require cooperation with child support enforcement 
agencies as a condition of eligibility for TANF assistance. Good cause 
and other exceptions to cooperation shall be defined by the Tribal TANF 
program.
    (b) The TFAP must identify which Tribal agency is designated by the 
Tribe as the lead agency for the overall administration of the Tribal 
TANF program along with a description of the administrative structure 
for supervision of the TANF program.
    (c) The TFAP must indicate whether the services, assistance and 
activities will be provided by the Tribe itself or through grants, 
contracts or compacts with inter-Tribal consortia, States, or other 
entities.
    (d) The TFAP must identify the population to be served by the Tribal 
TANF program.
    (1) The TFAP must identify whether it will serve Tribal member 
families only, or whether it will serve all Indian families residing in 
the Tribal TANF service area.
    (2) If the Tribe wishes to serve any non-Indian families (and thus 
include non-Indians in its service population), an agreement with the 
State TANF agency must be included in the TFAP. This agreement must 
provide that, where non-Indians are to be served by Tribal TANF, these 
families are subject to Tribal TANF program rules.
    (e) The TFAP must include a description of the geographic area to be 
served by the Tribal TANF program, including a specific description of 
any ``near reservation'' areas, as defined at 45 CFR 20.1(r), or any 
areas beyond ``near reservation'' to be included in the Tribal TANF 
service area.
    (1) In areas beyond those defined as ``near reservation'', the TFAP 
must demonstrate the Tribe's administrative capacity to serve such areas 
and the State(s)', and if applicable, other Tribe(s)' concurrence with 
the proposed defined boundaries.
    (2) A Tribe cannot extend its service area boundaries beyond the 
boundaries of the State(s) in which the reservation

[[Page 199]]

and BIA near-reservation designations are located.
    (3) For Tribes in Oklahoma, if the Tribe defines its service area as 
other than its ``tribal jurisdiction statistical area'' (TJSA), the 
Tribe must include an agreement with the other Tribe(s) reflecting 
agreement to the service area. TJSAs are areas delineated by the Census 
Bureau for each federally-recognized Tribe in Oklahoma without a 
reservation.
    (f) The TFAP must provide that a family receiving assistance under 
the plan may not receive duplicative assistance from other State or 
Tribal TANF programs and must include a description of the means by 
which the Tribe will ensure duplication does not occur.
    (g) The TFAP must identify the employment opportunities in and near 
the service area and the manner in which the Tribe will cooperate and 
participate in enhancing such opportunities for recipients of assistance 
under the plan, consistent with any applicable State standards. This 
should include:
    (1) A description of the employment opportunities available, in both 
the public and private sector, within and near the Tribal service area; 
and
    (2) A description of how the Tribe will work with public and private 
sector employers to enhance the opportunities available for Tribal TANF 
recipients.
    (h) The TFAP must provide an assurance that the Tribe applies the 
fiscal accountability provisions of section 5(f)(1) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450c(f)(1)), 
relating to the submission of a single-agency audit report required by 
chapter 75 of title 31, United States Code.



Sec.286.80  What information on minimum work participation 
requirements must a Tribe include in its Tribal Family Assistance 
Plan?

    (a) To assess a Tribe's level of success in meeting its TANF work 
objectives, a Tribe that submits a TFAP must negotiate with the 
Secretary minimum work participation requirements that will apply to 
families that receive Tribal TANF assistance that includes an adult or 
minor head of household receiving such assistance.
    (b) A Tribe that submits a TFAP must include in the plan the Tribe's 
proposal for minimum work participation requirements, which includes the 
following:
    (1) For each fiscal year covered by the plan, the Tribe's proposed 
participation rate(s) for all families, for all families and two-parent 
families, or for one-parent families and two-parent families;
    (2) For each fiscal year covered by the plan, the Tribe's proposed 
minimum number of hours per week that adults and minor heads of 
household will be required to participate in work activities;
    (i) If the Tribe elects to include reasonable transportation time to 
and from the site of work activities in determining the hours of work 
participation, it must so indicate in its TFAP along with a definition 
of ``reasonable'' for purposes of this subsection, along with:
    (A) An explanation of how the economic conditions and/or resources 
available to the Tribe justify inclusion of transportation time in 
determining work participation hours; and
    (B) An explanation of how counting reasonable transportation time is 
consistent with the purposes of TANF;
    (3) The work activities that count towards these work requirements;
    (4) Any exemptions, limitations and special rules being established 
in relation to work requirements; and
    (5) The Tribe must provide rationale for the above, explaining how 
the proposed work requirements relate to and are justified based on the 
Tribe's needs and conditions.
    (i) The rationale must address how the proposed work requirements 
are consistent with the purposes of TANF and with the economic 
conditions and resources of the Tribe.
    (ii) Examples of the information that could be included to 
illustrate the Tribe's proposal include, but are not limited to: 
poverty, unemployment, jobless and job surplus rates; education levels 
of adults in the service area; availability of and/or accessibility to

[[Page 200]]

resources (educational facilities, transportation) to help families 
become employable and find employment; and employment opportunities on 
and near the service area.



Sec.286.85  How will we calculate the work participation rates?

    (a) Work participation rate(s) will be the percentage of families 
with an adult or minor head-of-household receiving TANF assistance from 
the Tribe who are participating in a work activity approved in the TFAP 
for at least the minimum number of hours approved in the TFAP.
    (b) The participation rate for a fiscal year is the average of the 
Tribe's participation rate for each month in the fiscal year.
    (c) A Tribe's participation rate for a month is expressed as the 
following ratio:
    (1) The number of families receiving TANF assistance that include an 
adult or a minor head-of-household who is participating in activities 
for the month (numerator), divided by
    (2) The number of families that include an adult or a minor head-of-
household receiving TANF assistance during the month excluding:
    (i) Families that were penalized for non-compliance with the work 
requirements in that month as long as they have not been sanctioned for 
more than three months (whether or not consecutively) out of the last 12 
months; and
    (ii) Families with children under age one, if the Tribe chooses to 
exempt these families from participation requirements.
    (d) If a family receives assistance for only part of a month or 
begins participating in activities during the month, the Tribe may count 
it as a month of participation if an adult or minor head-of-household in 
the family is participating for the minimum average number of hours in 
each full week that the family receives assistance or participates in 
that month.
    (e) Two-parent families in which one of the parents is disabled are 
considered one-parent families for the purpose of calculating a Tribe's 
participation rate.



Sec.286.90  How many hours per week must an adult or minor head-of
-household participate in work-related activities to count in the
numerator of the work participation rate?
          

    During the month, an adult or minor head-of-household must 
participate in work activities for at least the minimum average number 
of hours per week specified in the Tribe's approved Tribal Family 
Assistance Plan.



Sec.286.95  What, if any, are the special rules concerning counting
work for two-parent families?

    Parents in a two-parent family may share the number of hours 
required to be considered as engaged in work.



Sec.286.100  What activities count towards the work participation rate?

    (a) Activities that count toward a Tribe's participation rate may 
include, but are not limited to, the following:
    (1) Unsubsidized employment;
    (2) Subsidized private sector employment;
    (3) Subsidized public sector employment;
    (4) Work experience;
    (5) On-the-job training (OJT);
    (6) Job search and job readiness assistance; (see Sec.286.105)
    (7) Community service programs;
    (8) Vocational educational training; (see Sec.286.105)
    (9) Job skills training directly related to employment;
    (10) Education directly related to employment, in the case of a 
recipient who has not received a high school diploma or a certificate of 
high school equivalency;
    (11) Satisfactory attendance at secondary school or in a course of 
study leading to a certificate of general equivalence, if a recipient 
has not completed secondary school or received such a certificate;
    (12) Providing child care services to an individual who is 
participating in a community service program; and
    (13) Other activities that will help families achieve self-
sufficiency.
    (b) [Reserved]

[[Page 201]]



Sec.286.105  What limitations concerning vocational education,
job search and job readiness assistance exist with respect to the 
work participation rate?

    (a) Tribes are not required to limit vocational education for any 
one individual to a period of 12 months.
    (b) There are two limitations concerning job search and job 
readiness:
    (1) Job search and job readiness assistance only count for 6 weeks 
in any fiscal year.
    (2) If the Tribe's unemployment rate in the Tribal TANF service area 
is at least 50 percent greater than the United States' total 
unemployment rate for that fiscal year, then an individual's 
participation in job search or job readiness assistance counts for up to 
12 weeks in that fiscal year.
    (c) If job search or job readiness is an ancillary part of another 
activity, then there is no limitation on counting the time spent in job 
search/job readiness.



Sec.286.110  What safeguards are there to ensure that participants 
in Tribal TANF work activities do not displace other workers?

    (a) An adult or minor head-of-household taking part in a work 
activity outlined in Sec.286.100 cannot fill a vacant employment 
position if:
    (1) Any other individual is on layoff from the same or any 
substantially equivalent job; or
    (2) The employer has terminated the employment of any regular 
employee or otherwise caused an involuntary reduction in its work force 
in order to fill the vacancy with the TANF participant.
    (b) A Tribe must establish and maintain a grievance procedure to 
resolve complaints of alleged violations of this displacement rule.
    (c) This regulation does not preempt or supersede Tribal laws 
providing greater protection for employees from displacement.



Sec.286.115  What information on time limits for the receipt of 
assistance must a Tribe include in its Tribal Family Assistance Plan?

    (a) The TFAP must include the Tribe's proposal for:
    (1) Time limits for the receipt of Tribal TANF assistance;
    (2) Any exceptions to these time limits; and
    (3) The percentage of the caseload to be exempted from the time 
limit due to hardship or if the family includes an individual who has 
been battered or subjected to extreme cruelty.
    (b) The Tribe must also include the rationale for its proposal in 
the plan. The rationale must address how the proposed time limits are 
consistent with the purposes of TANF and with the economic conditions 
and resources of the Tribe.
    (1) Examples of the information that could be included to illustrate 
the Tribe's proposal include, but are not limited to: Poverty, 
unemployment, jobless and job surplus rates; education levels of adults 
in the service area; availability of and/or accessibility to resources 
(educational facilities, transportation) to help families become 
employable and find employment; and employment opportunities on and near 
the service area.
    (c) We may require that the Tribe submit additional information 
about the rationale before we approve the proposed time limits.
    (d) Tribes must not count towards the time limit:
    (1) Any month of receipt of assistance to a family that does not 
include an adult head-of-household;
    (2) A family that does not include a pregnant minor head-of-
household, minor parent head-of-household, or spouse of such a head-of-
household; and
    (3) Any month of receipt of assistance by an adult during which the 
adult lived in Indian country or in an Alaskan Native Village in which 
at least 50 percent of the adults were not employed.
    (e) A Tribe must not use any of its TFAG to provide assistance (as 
defined in Sec.286.10) to a family that includes an adult or minor 
head-of-household who has received assistance beyond the number of 
months (whether or not consecutive) that is negotiated with the Tribe.

[[Page 202]]



Sec.286.120  Can Tribes make exceptions to the established time limit
for families?

    (a) Tribes have the option to exempt families from the established 
time limits for:
    (1) Hardship, as defined by the Tribe, or
    (2) The family includes someone who has been battered or has been 
subject to extreme cruelty.
    (b) If a Tribe elects the hardship option, the Tribe must specify in 
its TFAP the maximum percent of its average monthly caseload of families 
on assistance that will be exempt from the established time limit under 
paragraph (a) of this section.
    (c) If the Tribe proposes to exempt more than 20 percent of the 
caseload under paragraph (a) of this section, the Tribe must include a 
rationale in the plan.



Sec.286.125  Does the receipt of TANF benefits under a State or other
Tribal TANF program count towards a Tribe's TANF time limit?

    Yes, the Tribe must count prior months of TANF assistance funded 
with TANF block grant funds, except for any month that was exempt or 
disregarded by statute, regulation, or under any experimental, pilot, or 
demonstration project approved under section 1115 of the Act.



Sec.286.130  Does the receipt of Welfare-to-Work (WtW) cash assistance
count towards a Tribe's TANF time limit?

    (a) For purposes of an individual's time limit for receipt of TANF 
assistance as well as the penalty provision at Sec.286.195(a)(1), WtW 
cash assistance counts towards a Tribe's TANF time limit only if:
    (1) Such assistance satisfies the definition at Sec.286.10; and
    (2) Is directed at ongoing basic needs.
    (b) Only cash assistance provided in the form of cash payments, 
checks, reimbursements, electronic funds transfers, or any other form 
that can legally be converted to currency is subject to paragraph (a) of 
this section.



Sec.286.135  What information on penalties against individuals must be
included in a Tribal Family Assistance Plan?

    (a) The TFAP must include the Tribe's proposal for penalties against 
individuals who refuse to engage in work activities. The Tribe's 
proposal must address the following:
    (1) Will the Tribe impose a pro rata reduction, or more at Tribal 
option, or will it terminate assistance to a family?
    (2) After consideration of the provision specified at Sec.286.150, 
what will be the proposed Tribal policies related to a single custodial 
parent, with a child under the age of 6, who refuses to engage in work 
activities because of a demonstrated inability to obtain needed child 
care?
    (3) What good cause exceptions, if any, does the Tribe propose that 
will allow individuals to avoid penalties for failure to engage in work?
    (4) What other rules governing penalties does the Tribe propose?
    (5) What, if any, will be the Tribe's policies related to victims of 
domestic violence consistent with Sec.286.140?
    (b) The Tribe's rationale for its proposal must also be included in 
the TFAP.
    (1) The rationale must address how the proposed penalties against 
individuals are consistent with the purposes of TANF, consistent with 
the economic conditions and resources of the Tribe, and how they relate 
to the requirements of section 407(e) of the Act.
    (2) Examples of the information that could be included to illustrate 
the Tribe's proposal include, but are not limited to; poverty, 
unemployment, jobless and job surplus rates; education levels of adults 
in the service area; availability of and/or accessibility to resources 
(educational facilities, transportation) to help families become 
employable and find employment; and employment opportunities on and near 
the service area.
    (c) We may require a Tribe to submit additional information about 
the rationale before we approve the proposed penalties against 
individuals.

[[Page 203]]



Sec.286.140  What special provisions apply to victims of domestic
violence?

    (a) Tribes electing the Family Violence Option (FVO) must certify 
that they have established and are enforcing standards and procedures 
to:
    (1) Screen and identify individuals receiving TANF assistance with a 
history of domestic violence, while maintaining the confidentiality of 
such individuals;
    (2) Refer such individuals to counseling and supportive services; 
and
    (3) Provide waivers, pursuant to a determination of good cause, of 
TANF program requirements to such individuals for so long as necessary 
in cases where compliance would make it more difficult for such 
individuals to escape domestic violence or unfairly penalize those who 
are or have been victimized by such violence or who are at risk of 
further domestic violence.
    (b) Tribes have broad flexibility to grant waivers of TANF program 
requirements, but such waivers must:
    (1) Identify the specific program requirement being waived;
    (2) Be granted based on need as determined by an individualized 
assessment by a person trained in domestic violence and redeterminations 
no less than every six months;
    (3) Be accompanied by an appropriate services plan that:
    (i) Is developed in coordination with a person trained in domestic 
violence;
    (ii) Reflects the individualized assessment and any revisions 
indicated by any redetermination; and
    (iii) To the extent consistent with paragraph (a)(3) of this 
section, is designed to lead to work.
    (c) If a Tribe wants us to take waivers that it grants under this 
section into account in deciding if it has reasonable cause for failing 
to meet its work participation rates or comply with the established time 
limit on TANF assistance, has achieved compliance or made significant 
progress towards achieving compliance with such requirements during a 
corrective compliance period, the waivers must comply with paragraph (b) 
of this section.
    (d) We will determine that a Tribe has reasonable cause for failing 
to meet its work participation rates or to comply with established time 
limits on assistance if--
    (1) Such failures were attributable to good cause domestic violence 
waivers granted to victims of domestic violence;
    (2) In the case of work participation rates, the Tribe provides 
evidence that it achieved the applicable rates except with respect to 
any individuals who received a domestic violence waiver of work 
participation requirements. In other words, the Tribe must demonstrate 
that it met the applicable rates when such waiver cases are removed from 
the calculation of work participation rate;
    (3) In the case of established time limits on assistance, the Tribe 
provides evidence that it granted good cause domestic violence waivers 
to extend time limits based on the need for continued assistance due to 
current or past domestic violence or the risk of further domestic 
violence, and individuals and their families receiving assistance beyond 
the established time limit under such waivers do not exceed 20 percent 
of the total number of families receiving assistance.
    (e) We may take good cause domestic violence waivers of work 
participation or waivers which extend the established time limits for 
assistance into consideration in deciding whether a Tribe has achieved 
compliance or made significant progress toward achieving compliance 
during a corrective compliance period.
    (f) Tribes electing the FVO must submit the information specified at 
Sec.286.275(b)(7).



Sec.286.145  What is the penalty if an individual refuses to engage
in work activities?

    If an individual refuses to engage in work activities in accordance 
with the minimum work participation requirements specified in the 
approved TFAP, the Tribe must apply to the individual the penalties 
against individuals that were established in the approved TFAP.

[[Page 204]]



Sec.286.150  Can a family, with a child under age 6, be penalized 
because a parent refuses to work because (s)he cannot find child 
care?

    (a) If the individual is a single custodial parent caring for a 
child under age six, the Tribe may not reduce or terminate assistance 
based on the parent's refusal to engage in required work if he or she 
demonstrates an inability to obtain needed child care for one or more of 
the following reasons:
    (1) Appropriate child care within a reasonable distance from the 
home or work site is unavailable;
    (2) Informal child care by a relative or under other arrangements is 
unavailable or unsuitable; or
    (3) Appropriate and affordable formal child care arrangements are 
unavailable.
    (b) Refusal to work when an acceptable form of child care is 
available is not protected from sanctioning.
    (c) The Tribe will determine when the individual has demonstrated 
that he or she cannot find child care, in accordance with criteria 
established by the Tribe. These criteria must:
    (1) Address the procedures that the Tribe uses to determine if the 
parent has a demonstrated inability to obtain needed child care;
    (2) Include definitions of the terms ``appropriate child care,'' 
``reasonable distance,'' ``unsuitability of informal care,'' and 
``affordable child care arrangements''; and
    (3) Be submitted to us.
    (d) The Tribal TANF agency must inform parents about:
    (1) The penalty exception to the Tribal TANF work requirement, 
including the criteria and applicable definitions for determining 
whether an individual has demonstrated an inability to obtain needed 
child care;
    (2) The Tribe's procedures (including definitions) for determining a 
family's inability to obtain needed child care, and any other 
requirements or procedures, such as fair hearings, associated with this 
provision; and
    (3) The fact that the exception does not extend the time limit for 
receiving Federal assistance.



Sec.286.155  May a Tribe condition eligibility for Tribal TANF 
assistance on assignment of child support to the Tribe?

    (a) Tribes have the option to condition eligibility for Tribal TANF 
assistance on assignment of child support to the Tribe consistent with 
paragraph (b) of this section.
    (b) For Tribes choosing to condition eligibility for Tribal TANF 
assistance on assignment of child support to the Tribe, the TFAP must 
address the following--
    (1) Procedures for ensuring that assigned child support collections 
in excess of the amount of Tribal TANF assistance received by the family 
will not be retained by the Tribe; and
    (2) How any amounts generated under an assignment and retained by 
the Tribe will be used to further the Tribe's TANF program, consistent 
with Sec.286.45(f).

[65 FR 8530, Feb. 18, 2000, as amended at 69 FR 16672, Mar. 30, 2004]



Sec.286.160  What are the applicable time frames and procedures for
submitting a Tribal Family Assistance Plan?

    (a) A Tribe must submit a Tribal TANF letter of intent and/or a TFAP 
to the Secretary according to the following time frames:

----------------------------------------------------------------------------------------------------------------
                                       Letter of intent due to                           ACF notification to the
         Implementation date:             ACF and the State:    Formal plan due to ACF:         State due:
----------------------------------------------------------------------------------------------------------------
January 1, February 1 or March 1.....  July 1 of previous year  September 1 of previous  October 1 of previous
                                                                 year.                    year.
April 1, May 1 or June 1.............  October 1 of previous    December 1 of previous   January 1 of same year.
                                        year.                    year.
July 1, August 1 or September 1......  January 1 of same year.  March 1 of same year...  April 1 of same year.
October 1, November 1 or December 1..  April 1 of same year...  June 1 of same year....  July 1 of same year.
----------------------------------------------------------------------------------------------------------------


[[Page 205]]

    (b) A Tribe that has requested and received data from the State and 
has resolved any issues concerning the data more than six months before 
its proposed implementation date is not required to submit a letter of 
intent.
    (c) The effective date of the TFAP must be the first day of any 
month.
    (d) The original TFAP must be sent to the appropriate ACF Regional 
Administrator, with a copy sent to the Division of Tribal Services, 
Office of Community Services, Administration for Children and Families.
    (e) A Tribe that submits a TFAP or an amendment to an existing plan 
that cannot be approved by the Secretary will be given the opportunity 
to make revisions in order to make the TFAP, or an amendment, 
approvable.
    (f) Tribes operating a consolidated Public Law 102-477 program must 
submit a TFAP plan to the Secretary for review and approval prior to the 
consolidation of the TANF program into the Public Law 102-477 plan.



Sec.286.165  How is a Tribal Family Assistance Plan amended?

    (a) An amendment to a TFAP is necessary if the Tribe makes any 
substantial changes to the plan, including those which impact an 
individual's eligibility for Tribal TANF services or participation 
requirements, or any other program design changes which alter the nature 
of the program.
    (b) A Tribe must submit a plan amendment(s) to the Secretary no 
later than 30 days prior to the proposed implementation date. Proposed 
implementation dates shall be the first day of any month.
    (c) We will promptly review and either approve or disapprove the 
plan amendment(s).
    (d) Approved plan amendments are effective no sooner than 30 days 
after date of submission.
    (e) A Tribe whose plan amendment is disapproved may petition for an 
administrative review of such disapproval under Sec.286.170 and may 
appeal our final written decision to the Departmental Appeals Board no 
later than 30 days from the date of the disapproval. This appeal to the 
Board should follow the provisions of the rules under this subpart and 
those at 45 CFR part 16, where applicable.



Sec.286.170  How may a Tribe petition for administrative review of 
disapproval of a TFAP or amendment?

    (a) If, after a Tribe has been provided the opportunity to make 
revisions to its TFAP or amendment, the Secretary determines that the 
TFAP or amendment cannot be approved, a written Notice of Disapproval 
will be sent to the Tribe. The Notice of Disapproval will indicate the 
specific grounds for disapproval.
    (b) A Tribe may request reconsideration of a disapproval 
determination by filing a written Request for Reconsideration to the 
Secretary within 60 days of receipt of the Notice of Disapproval. If 
reconsideration is not requested, the disapproval is final and the 
procedures under paragraph (f) of this section must be followed.
    (1) The Request for Reconsideration must include--
    (i) All documentation that the Tribe believes is relevant and 
supportive of its TFAP or amendment; and
    (ii) A written response to each ground for disapproval identified in 
the Notice of Disapproval indicating why the Tribe believes that its 
TFAP or amendment conforms to the statutory and regulatory requirements 
for approval.
    (c) Within 30 days after receipt of a Request for Reconsideration, 
the Secretary or designee will notify the Tribe of the date and time a 
hearing for the purpose of reconsideration of the Notice of Disapproval 
will be held. Such a hearing may be conducted by telephone conference 
call.
    (d) A hearing conducted under Sec.286.170(c) must be held not less 
than 30 days nor more than 60 days after the date of the notice of such 
hearing is furnished to the Tribe, unless the Tribe agrees in writing to 
an extension.
    (e) The Secretary or designee will make a written determination 
affirming, modifying, or reversing disapproval of the TFAP or amendment 
within 60 days after the conclusion of the hearing.
    (f) If a TFAP or amendment is disapproved, the Tribe may appeal this

[[Page 206]]

final written decision to the Departmental Appeals Board (the Board) 
within 30 days after such party receives notice of determination. The 
party's appeal to the Board should follow the provisions of the rules 
under this section and those at 45 CFR part 16, where applicable.



Sec.286.175  What special provisions apply in Alaska?

    A Tribe in the State of Alaska that receives a TFAG must use the 
grant to operate a program in accordance with program requirements 
comparable to the requirements applicable to the State of Alaska's 
Temporary Assistance for Needy Families program. Comparability of 
programs must be established on the basis of program criteria developed 
by the Secretary in consultation with the State of Alaska and the Tribes 
in Alaska. The State of Alaska has authority to waive the program 
comparability requirement based on a request by an Indian tribe in the 
State.



Sec.286.180  What is the process for developing the comparability
criteria that are required in Alaska?

    We will work with the Tribes in Alaska and the State of Alaska to 
develop an appropriate process for the development and amendment of the 
comparability criteria.



Sec.286.185  What happens when a dispute arises between the State
of Alaska and the Tribal TANF eligible entities in the State related
to the comparability 
          criteria?

    (a) If a dispute arises between the State of Alaska and the Tribes 
in the State on any part of the comparability criteria, we will be 
responsible for making a final determination and notifying the State of 
Alaska and the Tribes in the State of the decision.
    (b) Any of the parties involved may appeal our decision, in whole or 
in part, to the HHS Departmental Appeals Board (the Board) within 60 
days after such party receives notice of determination. The party's 
appeal to the Board should follow the provisions of the rules under this 
section and those at 45 CFR part 16, where applicable.



Sec.286.190  If the Secretary, the State of Alaska, or any of the 
Tribal TANF eligible entities in the State of Alaska want to amend
the comparability 
          criteria, what is the process for doing so?

    (a) At such time that any of the above parties wish to amend the 
comparability document, the requesting party should submit a request to 
us, with a copy to the other parties, explaining the requested change(s) 
and supplying background information in support of the change(s).
    (b) After review of the request, we will make a determination on 
whether or not to accept the proposed change(s).
    (c) If any party wishes to appeal the decision regarding the 
adoption of the proposed amendment, they may appeal using the appeals 
process pursuant to Sec.286.165.



                 Subpart D_Accountability and Penalties



Sec.286.195  What penalties will apply to Tribes?

    (a) Tribes will be subject to fiscal penalties and requirements as 
follows:
    (1) If we determine that a Tribe misused its Tribal Family 
Assistance Grant funds, including providing assistance beyond the 
Tribe's negotiated time limit under Sec.286.115, we will reduce the 
TFAG for the following fiscal year by the amount so used;
    (2) If we determine that a Tribe intentionally misused its TFAG for 
an unallowable purpose, the TFAG for the following fiscal year will be 
reduced by an additional five percent;
    (3) If we determine that a Tribe failed to meet the minimum work 
participation rate(s) established for the Tribe, the TFAG for the 
following fiscal year will be reduced. The amount of the reduction will 
depend on whether the Tribe was under a penalty for this reason in the 
preceding year. If not, the penalty reduction will be a maximum of five 
percent. If a penalty was imposed on the Tribe in the preceding year, 
the penalty reduction will be increased by an additional 2 percent, up 
to a maximum of 21 percent. In determining the penalty amount, we will 
take into consideration the severity of

[[Page 207]]

the failure and whether the reasons for the failure were increases in 
the unemployment rate in the TFAG service area and changes in TFAG 
caseload size during the fiscal year in question; and
    (4) If a Tribe fails to repay a Federal loan provided under section 
406 of the Act, we will reduce the TFAG for the following fiscal year by 
an amount equal to the outstanding loan amount plus interest.
    (b) In calculating the amount of the penalty, we will add together 
all applicable penalty percentages, and the total is applied to the 
amount of the TFAG that would have been payable if no penalties were 
assessed against the Tribe. As a final step, we will subtract other 
(non-percentage) penalty amounts.
    (c) When imposing the penalties in paragraph (a) of this section, we 
will not reduce an affected Tribe's grant by more than 25 percent. If 
the 25 percent limit prevents the recovery of the full penalty imposed 
on a Tribe during a fiscal year, we will apply the remaining amount of 
the penalty to the TFAG payable for the immediately succeeding fiscal 
year.
    (1) If we reduce the TFAG payable to a Tribe for a fiscal year 
because of penalties that have been imposed, the Tribe must expend 
additional Tribal funds to replace any such reduction. The Tribe must 
document compliance with this provision on its TANF expenditure report.
    (2) We will impose a penalty of not more than 2 percent of the 
amount of the TFAG on a Tribe that fails to expend additional Tribal 
funds to replace amounts deducted from the TFAG due to penalties. We 
will apply this penalty to the TFAG payable for the next succeeding 
fiscal year, and this penalty cannot be excused (see Sec.286.235).
    (d) If a Tribe retrocedes the program, the Tribe will be liable for 
any penalties incurred for the period the program was in operation.



Sec.286.200  How will we determine if Tribal Family Assistance Grant
funds were misused or intentionally misused?

    (a) We will use the single audit or Federal review or audit to 
determine if a Tribe should be penalized for misusing Tribal Family 
Assistance Grant funds under Sec.286.195(a)(1) or intentionally 
misusing Tribal Family Assistance Grant funds under Sec.286.195(a)(2).
    (b) If a Tribe uses the TFAG in violation of the provisions of the 
Act, the provisions of 45 CFR part 75, or any Federal statutes and 
regulations applicable to the TANF program, we will consider the funds 
to have been misused.
    (c) The Tribe must show, to our satisfaction, that it used the funds 
for purposes that a reasonable person would consider to be within the 
purposes of the TANF program (as specified at Sec.286.35) and the 
provisions listed in Sec.286.45.
    (d) We will consider the TFAG to have been intentionally misused 
under the following conditions:
    (1) There is supporting documentation, such as Federal guidance or 
policy instructions, indicating that TANF funds could not be used for 
that purpose; or
    (2) After notification that we have determined such use to be 
improper, the Tribe continues to use the funds in the same or similarly 
improper manner.
    (e) If the single audit determines that a Tribe misused Federal 
funds in applying the negotiated time limit provisions under Sec.
286.115, the amount of the penalty for misuse will be limited to five 
percent of the TFAG amount.
    (1) This penalty shall be in addition to the reduction specified 
under Sec.286.195(a)(1).
    (2) [Reserved]

[65 FR 8530, Feb. 18, 2000, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.286.205  How will we determine if a Tribe fails to meet the
minimum work participation rate(s)?

    (a) We will use the Tribal TANF Data Reports required under Sec.
286.255 to determine if we will assess the penalty under Sec.
286.195(a)(3) for failure to meet the minimum participation rate(s) 
established for the Tribe.
    (b) Each Tribal TANF Grantee's quarterly reports (the TANF Data 
Report and the Tribal TANF Financial Report) must be complete and 
accurate

[[Page 208]]

and filed by the due date. The accuracy of the reports are subject to 
validation by us.
    (1) For a disaggregated data report, ``a complete and accurate 
report'' means that:
    (i) The reported data accurately reflect information available to 
the Tribal TANF grantee in case records, financial records, and 
automated data systems;
    (ii) The data are free from computational errors and are internally 
consistent (e.g., items that should add to totals do so);
    (iii) The Tribal TANF grantee reports data for all required elements 
(i.e., no data are missing);
    (iv) The Tribal TANF grantee provides data on all families; or
    (v) If the Tribal TANF grantee opts to use sampling, the Tribal TANF 
grantee reports data on all families selected in a sample that meets the 
specification and procedures in the TANF Sampling Manual (except for 
families listed in error); and
    (vi) Where estimates are necessary (e.g., some types of assistance 
may require cost estimates), the Tribal TANF grantee uses reasonable 
methods to develop these estimates.
    (2) For an aggregated data report, ``a complete and accurate 
report'' means that:
    (i) The reported data accurately reflect information available to 
the Tribal TANF grantee in case records, financial records, and 
automated data systems;
    (ii) The data are free from computational errors and are internally 
consistent (e.g., items that should add to totals do so);
    (iii) The Tribal TANF grantee reports data on all applicable 
elements; and
    (iv) Monthly totals are unduplicated counts for all families (e.g., 
the number of families and the number of out-of-wedlock births are 
unduplicated counts).
    (3) For the Tribal TANF Financial Report, a ``complete and accurate 
report'' means that:
    (i) The reported data accurately reflect information available to 
the Tribal TANF grantee in case records, financial records, and 
automated data systems;
    (ii) The data are free from computational errors and are internally 
consistent (e.g., items that should add to totals do so);
    (iii) The Tribal TANF grantee reports data on all applicable 
elements; and
    (iv) All expenditures have been made in accordance with 45 CFR part 
75.
    (4) We will review the data filed in the quarterly reports to 
determine if they meet these standards. In addition, we will use audits 
and reviews to verify the accuracy of the data filed by the Tribal TANF 
grantee.
    (c) Tribal TANF grantees must maintain records to adequately support 
any report, in accordance with 45 CFR part 75.
    (d) If we find reports so significantly incomplete or inaccurate 
that we seriously question whether the Tribe has met its participation 
rate, we may apply the penalty under Sec.286.195(a)(3).

[65 FR 8530, Feb. 18, 2000, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.286.210  What is the penalty for a Tribe's failure to repay
a Federal loan?

    (a) If a Tribe fails to repay the amount of principal and interest 
due at any point under a loan agreement:
    (1) The entire outstanding loan balance, plus all accumulated 
interest, becomes due and payable immediately; and
    (2) We will reduce the TFAG payable for the immediately succeeding 
fiscal year quarter by the outstanding loan amount plus interest.
    (b) Neither the reasonable cause provisions at Sec.286.225 nor the 
corrective compliance plan provisions at Sec.286.230 apply when a 
Tribe fails to repay a Federal loan.



Sec.286.215  When are the TANF penalty provisions applicable?

    (a) A Tribe may be subject to penalties, as described in Sec.
286.195(a)(1), Sec.286.195(a)(2) and Sec.286.195(a)(4), for conduct 
occurring on and after the first day of implementation of the Tribe's 
TANF program.
    (b) A Tribe may be subject to penalties, as described in Sec.
286.195(a)(3), for conduct occurring on and after the date that is six 
months after the Tribe begins operating the TANF program.

[[Page 209]]

    (c) We will not apply the regulations retroactively. We will judge 
Tribal actions that occurred prior to the effective date of these rules 
and expenditures of funds received prior to the effective date only 
against a reasonable interpretation of the statutory provisions in title 
IV-A of the Act.
    (1) To the extent that a Tribe's failure to meet the requirements of 
the penalty provisions is attributable to the absence of Federal rules 
or guidance, Tribes may qualify for reasonable cause, as discussed in 
Sec.286.225.
    (2) [Reserved]



Sec.286.220  What happens if a Tribe fails to meet TANF requirements?

    (a) If we determine that a Tribe is subject to a penalty, we will 
notify the Tribe in writing. This notice will:
    (1) Specify what penalty provision(s) are in issue;
    (2) Specify the amount of the penalty;
    (3) Specify the reason for our determination;
    (4) Explain how and when the Tribe may submit a reasonable cause 
justification under Sec.286.225 and/or a corrective compliance plan 
under Sec.286.230(d) for those penalties for which reasonable cause 
and/or corrective compliance plan apply; and
    (5) Invite the Tribe to present its arguments if it believes that 
the data or method we used were in error or were insufficient, or that 
the Tribe's actions, in the absence of Federal regulations, were based 
on a reasonable interpretation of the statute.
    (b) Within 60 days of receipt of our written notification, the Tribe 
may submit a written response to us that:
    (1) Demonstrates that our determination is incorrect because our 
data or the method we used in determining the penalty was in error or 
was insufficient, or that the Tribe acted prior to June 19, 2000, on a 
reasonable interpretation of the statute;
    (2) Demonstrates that the Tribe had reasonable cause for failing to 
meet the requirement(s); and/or
    (3) Provides a corrective compliance plan as discussed in Sec.
286.230.
    (c) If we find that the Tribe was correct and that a penalty was 
improperly determined, or find that a Tribe had reasonable cause for 
failing to meet a requirement, we will not impose the related penalty 
and so notify the Tribe in writing within two weeks of such a 
determination.
    (d) If we determine that the Tribe has not demonstrated that our 
original determination was incorrect or that it had reasonable cause, we 
will notify the Tribe of our decision in writing.
    (e) If we request additional information from a Tribe, it must 
provide the information within thirty days of the date of our request.



Sec.286.225  How may a Tribe establish reasonable cause for failing
to meet a requirement that is subject to application of a penalty?

    (a) We will not impose a penalty against a Tribe if it is determined 
that the Tribe had reasonable cause for failure to meet the requirements 
listed at Sec.286.195(a)(1), Sec.286.195(a)(2), or Sec.
286.195(a)(3). The general factors a Tribe may use to claim reasonable 
cause include, but are not limited to, the following:
    (1) Natural disasters, extreme weather conditions, and other 
calamities (e.g., hurricanes, earthquakes, fire, and economic disasters) 
whose disruptive impact was so significant that the Tribe failed to meet 
a requirement.
    (2) Formally issued Federal guidance which provided incorrect 
information resulting in the Tribe's failure or prior to the effective 
date of these regulations, guidance that was issued after a Tribe 
implemented the requirements of the Act based on a different, but 
reasonable, interpretation of the Act.
    (3) Isolated, non-recurring problems of minimal impact that are not 
indicative of a systemic problem.
    (4) Significant increases in the unemployment rate in the TFAG 
service area and changes in the TFAG caseload size during the fiscal 
year being reported.
    (b) We will grant reasonable cause to a Tribe that:
    (1) Clearly demonstrates that its failure to submit complete, 
accurate, and timely data, as required at Sec.286.245, for one or both 
of the first two quarters of FY 2000, is attributable, in significant

[[Page 210]]

part, to its need to divert critical system resources to Year 2000 
compliance activities; and
    (2) Submits complete and accurate data for the first two quarters of 
FY 2000 by November 15, 2000.
    (c) In addition to the reasonable cause criteria specified above, a 
Tribe may also submit a request for a reasonable cause exemption from 
the requirement to meet its work participation requirements in the 
following situation:
    (1) We will consider that a Tribe has reasonable cause if it 
demonstrates that its failure to meet its work participation rate(s) is 
attributable to its provisions with regard to domestic violence as 
follows:
    (i) To demonstrate reasonable cause, a Tribe must provide evidence 
that it achieved the applicable work rates, except with respect to any 
individuals receiving good cause waivers of work requirements (i.e., 
when cases with good cause waivers are removed from the calculation in 
Sec.286.85); and
    (ii) A Tribe must grant good cause waivers in domestic violence 
cases appropriately, in accordance with the policies in the Tribe's 
approved Tribal Family Assistance Plan.
    (2) [Reserved]
    (d) In determining reasonable cause, we will consider the efforts 
the Tribe made to meet the requirements, as well as the duration and 
severity of the circumstances that led to the Tribe's failure to achieve 
the requirement.
    (e) The burden of proof rests with the Tribe to fully explain the 
circumstances and events that constitute reasonable cause for its 
failure to meet a requirement.
    (1) The Tribe must provide us with sufficient relevant information 
and documentation to substantiate its claim of reasonable cause.
    (2) [Reserved]



Sec.286.230  What if a Tribe does not have reasonable cause for
failing to meet a requirement?

    (a) To avoid the imposition of a penalty under Sec.286.195(a)(1), 
Sec.286.195(a)(2), or Sec.286.195(a)(3), under the following 
circumstances a Tribe must enter into a corrective compliance plan to 
correct the violation:
    (1) If a Tribe does not claim reasonable cause for failing to meet a 
requirement; or
    (2) If we found that a Tribe did not have reasonable cause.
    (b) A Tribe that does not claim reasonable cause will have 60 days 
from receipt of the notice described in Sec.286.220(a) to submit its 
corrective compliance plan to us.
    (c) A Tribe that does not demonstrate reasonable cause will have 60 
days from receipt of the second notice described in Sec.286.220(d) to 
submit its corrective compliance plan to us.
    (d) In its corrective compliance plan the Tribe must outline:
    (1) Why it failed to meet the requirements;
    (2) How it will correct the violation in a timely manner; and
    (3) What actions, outcomes and time line it will use to ensure 
future compliance.
    (e) During the 60-day period beginning with the date we receive the 
corrective compliance plan, we may, if necessary, consult with the Tribe 
on modifications to the plan.
    (f) A corrective compliance plan is deemed to be accepted if we take 
no action to accept or reject the plan during the 60-day period that 
begins when the plan is received.
    (g) Once a corrective compliance plan is accepted or deemed 
accepted, we may request reports from the Tribe or take other actions to 
confirm that the Tribe is carrying out the corrective actions specified 
in the plan.
    (1) We will not impose a penalty against a Tribe with respect to any 
violation covered by that plan if the Tribe corrects the violation 
within the time frame agreed to in the plan.
    (2) We must assess some or all of the penalty if the Tribe fails to 
correct the violation pursuant to its corrective compliance plan.



Sec.286.235  What penalties cannot be excused?

    (a) The penalties that cannot be excused are:
    (1) The penalty for failure to repay a Federal loan issued under 
section 406.
    (2) The penalty for failure to replace any reduction in the TFAG 
resulting

[[Page 211]]

from other penalties that have been imposed.
    (b) [Reserved]



Sec.286.240  How can a Tribe appeal our decision to take a penalty?

    (a) We will formally notify the Tribe of a potential reduction to 
the Tribe's TFAG within five days after we determine that a Tribe is 
subject to a penalty and inform the Tribe of its right to appeal to the 
Departmental Appeals Board (the Board) established in the Department of 
Health and Human Services. Such notification will include the factual 
and legal basis for taking the penalty in sufficient detail for the 
Tribe to be able to respond in an appeal.
    (b) Within 60 days of the date it receives notice of the penalty, 
the Tribe may file an appeal of the action, in whole or in part, to the 
Board.
    (c) The Tribe must include all briefs and supporting documentation 
when it files its appeal. A copy of the appeal and any supplemental 
filings must be sent to the Office of General Counsel, Children, 
Families and Aging Division, Room 411-D, 200 Independence Avenue, SW, 
Washington, DC 20201.
    (d) ACF must file its reply brief and supporting documentation 
within 45 days after receipt of the Tribe's submission under paragraph 
(c) of this section.
    (e) The Tribe's appeal to the Board must follow the provisions of 
this section and those at Sec. Sec.16.2, 16.9, 16.10, and 16.13 
through 16.22 of this title to the extent they are consistent with this 
section.
    (f) The Board will consider an appeal filed by a Tribe on the basis 
of the documentation and briefs submitted, along with any additional 
information the Board may require to support a final decision. Such 
information may include a hearing if the Board determines that it is 
necessary. In deciding whether to uphold an adverse action or any 
portion of such action, the Board will conduct a thorough review of the 
issues.
    (g) The filing date shall be the date materials are received by the 
Board in a form acceptable to it.
    (h) A Tribe may obtain judicial review of a final decision by the 
Board by filing an action within 90 days after the date of such decision 
with the district court of the United States in the judicial district 
where the Tribe or TFAG service area is located.
    (1) The district court will review the final decision of the Board 
on the record established in the administrative proceeding, in 
accordance with the standards of review prescribed by 5 U.S.C. 706(2). 
The court's review will be based on the documents and supporting data 
submitted to the Board.
    (2) [Reserved]
    (i) No reduction to the Tribe's TFAG will occur until a final 
disposition of the matter has been made.



          Subpart E_Data Collection and Reporting Requirements



Sec.286.245  What data collection and reporting requirements apply
to Tribal TANF programs?

    (a) Section 412(h) of the Act makes section 411 regarding data 
collection and reporting applicable to Tribal TANF programs. This 
section of the regulations explains how we will collect the information 
required by section 411 of the Act and information to implement section 
412(c) (work participation requirements).
    (b) Each Tribe must collect monthly and file quarterly data on 
individuals and families as follows:
    (1) Disaggregated data collection and reporting requirements in this 
part apply to families receiving assistance and families no longer 
receiving assistance under the Tribal TANF program; and
    (2) Aggregated data collection and reporting requirements in this 
part apply to families receiving, families applying for, and families no 
longer receiving assistance under the Tribal TANF program.
    (c) Each Tribe must file in its quarterly TANF Data Report and in 
the quarterly TANF Financial Report the specified data elements.
    (d) Each Tribe must also submit an annual report that contains 
specified information.
    (e) Each Tribe must submit the necessary reports by the specified 
due dates.

[[Page 212]]



Sec.286.250  What definitions apply to this subpart?

    (a) Except as provided in paragraph (b) of this section, the general 
TANF definitions at Sec. Sec.286.5 and 286.10 apply to this subpart.
    (b) For data collection and reporting purposes only, ``TANF family'' 
means:
    (1) All individuals receiving assistance as part of a family under 
the Tribe's TANF program; and
    (2) The following additional persons living in the household, if not 
included under paragraph (b)(1) of this section:
    (i) Parent(s) or caretaker relative(s) of any minor child receiving 
assistance;
    (ii) Minor siblings of any child receiving assistance; and
    (iii) Any person whose income or resources would be counted in 
determining the family's eligibility for or amount of assistance.



Sec.286.255  What quarterly reports must the Tribe submit to us?

    (a) Quarterly reports. Each Tribe must collect on a monthly basis, 
and file on a quarterly basis, the data specified in the Tribal TANF 
Data Report and the Tribal TANF Financial Report.
    (b) Tribal TANF Data Report. The Tribal TANF Data Report consists of 
three sections. Two sections contain disaggregated data elements and one 
section contains aggregated data elements.
    (1) TANF Data Report: Disaggregated Data--Sections one and two. Each 
Tribe must file disaggregated information on families receiving TANF 
assistance (section one) and families no longer receiving TANF 
assistance (section two). These two sections specify identifying and 
demographic data such as the individual's Social Security Number; and 
information such as the type and amount of assistance received, 
educational level, employment status, work participation activities, 
citizenship status, and earned and unearned income. These reports also 
specify items pertaining to child care and child support. The data 
requested cover adults (including non-custodial parents who are 
participating in work activities) and children.
    (2) TANF Data Report: Aggregated Data--Section three. Each Tribe 
must file aggregated information on families receiving, applying for, 
and no longer receiving TANF assistance. This section of the Report asks 
for aggregate figures in the following areas: the total number of 
applications and their disposition; the total number of recipient 
families, adult recipients, and child recipients; the total number of 
births, out-of-wedlock births, and minor child heads-of-households; the 
total number of non-custodial parents participating in work activities; 
and the total amount of TANF assistance provided.
    (c) The Tribal TANF Financial Report. Each Tribe must file quarterly 
expenditure data on the Tribe's use of Tribal Family Assistance Grant 
funds, any Tribal fund expenditures which are being substituted for TFAG 
funds withheld due to a penalty, and any State contributions. The report 
must be submitted on a form prescribed by ACF.



Sec.286.260  May Tribes use sampling and electronic filing?

    (a) Each Tribe may report disaggregated data on all recipient 
families (universal reporting) or on a sample of families selected 
through the use of a scientifically acceptable sampling method. The 
sampling method must be approved by ACF in advance of submitting 
reports.
    (1) Tribes may not use a sample to generate the aggregated data.
    (2) [Reserved]
    (b) ``Scientifically acceptable sampling method'' means a 
probability sampling method in which every sampling unit has a known, 
non-zero chance to be included in the sample, and the sample size 
requirements are met.
    (c) Each Tribe may file quarterly reports electronically, based on 
format specifications that we will provide. Tribes who do not have the 
capacity to submit reports electronically may submit quarterly reports 
on a disk or in hard copy.



Sec.286.265  When are quarterly reports due?

    (a) Upon a Tribe's initial implementation of TANF, the Tribe shall 
begin collecting data for the TANF Data Report as of the date that is 
six months after the initial effective date of its

[[Page 213]]

TANF program. The Tribe shall begin collecting financial data for the 
TANF Financial Report as of the initial effective date of its TANF 
program.
    (b) Each Tribe must submit its TANF Data Report and TANF Financial 
Report within 45 days following the end of each quarter. If the 45th day 
falls on a weekend or on a national, State or Tribal holiday, the 
reports are due no later than the next business day.



Sec.286.270  What happens if the Tribe does not satisfy the quarterly 
reporting requirements?

    (a) If we determine that a Tribe has not submitted to us a complete 
and accurate Tribal TANF Data Report within the time limit, the Tribe 
risks the imposition of a penalty at Sec.286.205 related to the work 
participation rate targets since the data from the Tribal TANF Data 
Report is required to calculate participation rates.
    (b) Non-reporting of the Tribal TANF Financial Report may give rise 
to a penalty under Sec.286.200 since this Report is used to 
demonstrate compliance with provisions of the Act, the provisions of 45 
CFR part 75, or any Federal statutes and regulations applicable to the 
TANF program.

[65 FR 8530, Feb. 18, 2000, as amended at 81 FR 3020, Jan. 20, 2016]



Sec.286.275  What information must Tribes file annually?

    (a) Each Tribal TANF grantee must file an annual report containing 
information on its TANF program for that year. The report may be filed 
as:
    (1) An addendum to the fourth quarter TANF Data Report; or
    (2) A separate annual report.
    (b) Each Tribal TANF grantee must provide the following information 
on its TANF program:
    (1) The Tribal TANF grantee's definition of each work activity;
    (2) A description of the transitional services provided to families 
no longer receiving assistance due to employment; and
    (3) A description of how a Tribe will reduce the amount of 
assistance payable to a family when an individual refuses to engage in 
work without good cause pursuant to Sec.286.145.
    (4) The average monthly number of payments for child care services 
made by the Tribal TANF grantee through the use of disregards, by the 
following types of child care providers:
    (i) Licensed/regulated in-home child care;
    (ii) Licensed/regulated family child care;
    (iii) Licensed/regulated group home child care;
    (iv) Licensed/regulated center-based child care;
    (v) Legally operating (i.e., no license category available in Tribal 
TANF grantee's locality) in-home child care provided by a nonrelative;
    (vi) Legally operating (i.e., no license category available in 
Tribal TANF grantee's locality) in-home child care provided by a 
relative;
    (vii) Legally operating (i.e., no license category available in 
Tribal TANF grantee's locality) family child care provided by a 
nonrelative;
    (viii) Legally operating (i.e., no license category available in 
Tribal TANF grantee's locality) family child care provided by a 
relative;
    (ix) Legally operating (i.e., no license category available in 
Tribal TANF grantee's locality) group child care provided by a 
nonrelative;
    (x) Legally operating (i.e., no license category available in Tribal 
TANF grantee's locality) group child care provided by a relative; and
    (xi) Legally operating (i.e., no license category available in 
Tribal TANF grantee's locality) center-based child care.
    (5) A description of any nonrecurring, short-term benefits provided, 
including:
    (i) The eligibility criteria associated with such benefits, 
including any restrictions on the amount, duration, or frequency of 
payments;
    (ii) Any policies that limit such payments to families that are 
eligible for TANF assistance or that have the effect of delaying or 
suspending a family's eligibility for assistance; and
    (iii) Any procedures or activities developed under the TANF program 
to ensure that individuals diverted from assistance receive information 
about, referrals to, or access to other program benefits (such as 
Medicaid and food

[[Page 214]]

stamps) that might help them make the transition from Welfare-to-Work; 
and
    (6) A description of the procedures the Tribal TANF grantee has 
established and is maintaining to resolve displacement complaints, 
pursuant to Sec.286.110. This description must include the name of the 
Tribal TANF grantee agency with the lead responsibility for 
administering this provision and explanations of how the Tribal TANF 
grantee has notified the public about these procedures and how an 
individual can register a complaint.
    (7) Tribes electing the FVO must submit a description of the 
strategies and procedures in place to ensure that victims of domestic 
violence receive appropriate alternative services, as well as an 
aggregate figure for the total number of good cause domestic waivers 
granted.
    (c) If the Tribal TANF grantee has submitted the information 
required in paragraph (b) of this section in the TFAP, it may meet the 
annual reporting requirements by reference in lieu of re-submission. 
Also, if the information in the annual report has not changed since the 
previous annual report, the Tribal TANF grantee may reference this 
information in lieu of re-submission.
    (d) If a Tribal TANF grantee makes a substantive change in certain 
data elements in paragraph (b) of this section, it must file a copy of 
the change either with the next quarterly data report or as an amendment 
to its TFAP. The Tribal TANF grantee must also indicate the effective 
date of the change. This requirement is applicable to paragraphs (b)(1), 
(b)(2), and (b)(3) of this section.



Sec.286.280  When are annual reports due?

    (a) The annual report required by Sec.286.275 is due 90 days after 
the end of the Fiscal Year which it covers.
    (b) The first annual report for a Tribe must include all months of 
operation since the plan was approved.



Sec.286.285  How do the data collection and reporting requirements
affect Public Law 102-477 Tribes?

    (a) A Tribe that consolidates its Tribal TANF program into a Public-
Law 102-477 plan is required to comply with the TANF data collection and 
reporting requirements of this section.
    (b) A Tribe that consolidates its Tribal TANF program into a Public-
Law 102-477 plan may submit the Tribal TANF Data Reports and the Tribal 
TANF Financial Report to the BIA, with a copy to us.



PART 287_THE NATIVE EMPLOYMENT WORKS (NEW) PROGRAM--Table of Contents



                    Subpart A_General NEW Provisions

Sec.
287.1 What does this part cover?
287.5 What is the purpose and scope of the NEW Program?
287.10 What definitions apply to this part?

                        Subpart B_Eligible Tribes

287.15 Which Tribes are eligible to apply for NEW Program grants?
287.20 May a Public Law 102-477 Tribe operate a NEW Program?
287.25 May Tribes form a consortium to operate a NEW Program?
287.30 If an eligible consortium breaks up, what happens to the NEW 
          Program grant?

                      Subpart C_NEW Program Funding

287.35 What grant amounts are available under the Personal 
          Responsibility and Work Opportunity Reconciliation Act of 1996 
          (PRWORA) for the NEW Program?
287.40 Are there any matching funds requirements with the NEW Program?
287.45 How can NEW Program funds be used?
287.50 What are the funding periods for NEW Program grants?
287.55 What time frames and guidelines apply regarding the obligation 
          and liquidation periods for NEW Program funds?
287.60 Are there additional financial reporting and auditing 
          requirements?
287.65 What OMB circulars apply to the NEW Program?

                       Subpart D_Plan Requirements

287.70 What are the plan requirements for the NEW Program?
287.75 When does the plan become effective?

[[Page 215]]

287.80 What is the process for plan review and approval?
287.85 How is a NEW plan amended?
287.90 Are Tribes required to complete any certifications?
287.95 May a Tribe operate both a NEW Program and a Tribal TANF program?
287.100 Must a Tribe that operates both NEW and Tribal TANF programs 
          submit two separate plans?

                 Subpart E_Program Design and Operations

287.105 What provisions of the Social Security Act govern the NEW 
          Program?
287.110 Who is eligible to receive assistance or services under a 
          Tribe's NEW Program?
287.115 When a NEW grantee serves TANF recipients, what coordination 
          should take place with the Tribal or State TANF agency?
287.120 What work activities may be provided under the NEW Program?
287.125 What supportive and job retention services may be provided under 
          the NEW Program?
287.130 Can NEW Program activities include job market assessments, job 
          creation and economic development activities?
287.135 Are bonuses, rewards and stipends allowed for participants in 
          the NEW Program?
287.140 With whom should the Tribe coordinate in the operation of its 
          work activities and services?
287.145 What measures will be used to determine NEW Program outcomes?

          Subpart F_Data Collection and Reporting Requirements

287.150 Are there data collection requirements for Tribes who operate a 
          NEW Program?
287.155 What reports must a grantee file with the Department about its 
          program operations?
287.160 What reports must a grantee file regarding financial operations?
287.165 What are the data collection and reporting requirements for 
          Public Law 102-477 Tribes that consolidate a NEW Program with 
          other programs?
287.170 What are the data collection and reporting requirements for a 
          Tribe that operates both the NEW Program and a Tribal TANF 
          program?

    Authority: 42 U.S.C. 612.

    Source: 65 FR 8554, Feb. 18, 2000, unless otherwise noted.



                    Subpart A_General NEW Provisions



Sec.287.1  What does this part cover?

    (a) The regulations in this part prescribe the rules for 
implementing section 412(a)(2) of the Social Security Act (the Act), as 
amended by the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (PRWORA) (Pub. L. 104-193) and the Balanced 
Budget Act of 1997 (Pub. L. 105-33).
    (b) Section 412(a)(2) of the Act, as amended, authorizes the 
Secretary to issue grants to eligible Indian tribes to operate a program 
that makes work activities available to ``such population and such 
service area or areas as the tribe specifies.''
    (c) We call this Tribal work activities program the Native 
Employment Works (NEW) program.
    (d) These regulations specify the Tribes who are eligible to receive 
NEW Program funding. They also prescribe requirements for: funding; 
program plan development and approval; program design and operation; and 
data collection and reporting.



Sec.287.5  What is the purpose and scope of the NEW Program?

    The purpose of the NEW Program is to provide eligible Indian tribes, 
including Alaska Native organizations, the opportunity to provide work 
activities and services to their needy clients.



Sec.287.10  What definitions apply to this part?

    The following definitions apply to this part:
    ACF means the Administration for Children and Families;
    Act means the Social Security Act, unless we specify otherwise;
    Alaska Native organization means an Alaska Native village, or 
regional or village corporation, as defined in or established pursuant 
to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), 
that is eligible to operate a Federal program under the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450);
    Consortium means a group of Tribes working together for the same 
identified purpose and receiving combined NEW funding for that purpose.

[[Page 216]]

    Department means the Department of Health and Human Services;
    Division of Tribal Services (DTS) means the unit in the Office of 
Community Services within the Department's Administration for Children 
and Families that has as its primary responsibility the administration 
of the Tribal family assistance program, called the Tribal Temporary 
Assistance for Needy Families (TANF) program, and the Tribal work 
program, called the Native Employment Works (NEW) program, as authorized 
by section 412(a);
    Eligible Indian tribe means an Indian tribe, a consortium of Indian 
tribes, or an Alaska Native organization that operated a Tribal Job 
Opportunities and Basic Skills Training (JOBS) program in fiscal year 
1995 under section 482(i) of the Act, as in effect during that fiscal 
year;
    Fiscal year means the 12-month period beginning on October 1 of the 
preceding calendar year and ending on September 30;
    FY means fiscal year;
    Indian, Indian tribe, and Tribal organization--The terms Indian, 
Indian tribe, and Tribal organization have the meaning given such terms 
by section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b);
    Native Employment Works Program means the Tribal work program under 
section 412(a)(2) of the Act;
    NEW means the Native Employment Works Program;
    Program Year means, for the NEW Program, the 12-month period 
beginning on July 1 of the calendar year and ending on June 30;
    PRWORA means the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996, Public Law 104-193;
    Public Law 102-477 refers to the Indian Employment, Training and 
Related Services Demonstration Act of 1992, whose purpose is to provide 
for the integration of employment, training and related services to 
improve the effectiveness of those services;
    Secretary means the Secretary of the Department of Health and Human 
Services;
    State means, except as otherwise specifically provided, 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;
    Temporary Assistance for Needy Families Program means a family 
assistance grant program operated either by a Tribe under section 
412(a)(1) of the Act or by a State under section 403 of the Act;
    Tribal TANF program means a Tribal program subject to the 
requirements of section 412 of the Act which is funded by TANF funds on 
behalf of eligible families;
    We (and any other first person plural pronouns) refers to The 
Secretary of Health and Human Services, or any of the following 
individuals or organizations acting in an official capacity on the 
Secretary's behalf: The Assistant Secretary for Children and Families, 
the Regional Administrators for Children and Families, the Department of 
Health and Human Services, and the Administration for Children and 
Families.



                        Subpart B_Eligible Tribes



Sec.287.15  Which Tribes are eligible to apply for NEW Program grants?

    To be considered for a NEW Program grant, a Tribe must be an 
``eligible Indian tribe.'' An eligible Indian tribe is an Indian tribe 
or Alaska Native organization that operated a Job Opportunities and 
Basic Skills Training (JOBS) program in FY 1995.



Sec.287.20  May a Public Law 102-477 Tribe operate a NEW Program?

    Yes, if the Tribe is an ``eligible Indian tribe.''



Sec.287.25  May Tribes form a consortium to operate a NEW Program?

    (a) Yes, as long as each Tribe forming the consortium is an 
``eligible Indian tribe.''
    (b) To apply for and conduct a NEW Program, the consortium must 
submit a plan to ACF.
    (c) The plan must include a copy of a resolution from each Tribe 
indicating its membership in the consortium and authorizing the 
consortium to act on its behalf in regard to administering a

[[Page 217]]

NEW Program. If an Alaska Native organization forms a consortium, 
submission of the required resolution from the governing board of the 
organization is sufficient to satisfy this requirement.



Sec.287.30  If an eligible consortium breaks up, what happens to the
NEW Program grant?

    (a) If a consortium should break up or any Tribe withdraws from a 
consortium, it will be necessary to allocate unobligated funds and 
future grants among the Tribes that were members of the consortium, if 
each individual Tribe obtains ACF approval to continue to operate a NEW 
Program.
    (b) Each withdrawing Tribe must submit to ACF a copy of the Tribal 
resolution that confirms the Tribe's decision to withdraw from the 
consortium and indicates whether the Tribe elects to continue its 
participation in the program.
    (c) The allocation can be accomplished by any method that is 
recommended and agreed to by the leaders of those Tribes.
    (d) If no recommendation is made by the Tribal leaders or no 
agreement is reached, the Secretary will determine the allocation of 
funds based on the best available data.



                      Subpart C_NEW Program Funding



Sec.287.35  What grant amounts are available under the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 
(PRWORA) for the NEW Program?

    Each Tribe shall receive a grant in an amount equal to the amount 
received by the Tribe in FY 1994 under section 482(i) of the Act (as in 
effect during FY 1994).



Sec.287.40  Are there any matching funds requirements with the NEW 
Program?

    No, Tribal grantees are not required to match NEW Federal funds.



Sec.287.45  How can NEW Program funds be used?

    (a) NEW grants are for making work activities available to such 
population as the Tribe specifies.
    (b) NEW funds may be used for work activities as defined by the 
Tribal grantee.
    (c) Work activities may include supportive services necessary for 
assisting NEW Program participants in preparing for, obtaining, and/or 
retaining employment.



Sec.287.50  What are the funding periods for NEW Program grants?

    NEW Program funds are for operation of the NEW Program for a 12-
month period from July 1 through June 30.



Sec.287.55  What time frames and guidelines apply regarding the
obligation and liquidation periods for NEW Program funds?

    (a) NEW Program funds provided for a FY are for use during the 
period July 1 through June 30 and must be obligated no later than June 
30. Carry forward of an unobligated balance of NEW funds is not 
permitted. A NEW fund balance that is unobligated as of June 30 will be 
returned to the Federal government through the issuance of a negative 
grant award. Unobligated funds are to be reported on the SF-269A that 
Tribes must submit within 30 days after the funding period, i.e., no 
later than July 30. This report is called the interim financial report.
    (b) A Tribe must liquidate all obligations incurred under the NEW 
Program grant awards not later than one year after the end of the 
obligation period, i.e., no later than June 30 of the following FY. An 
unliquidated balance at the close of the liquidation period will be 
returned to the Federal government through the issuance of a negative 
grant award. Unliquidated obligations are to be reported on the SF-269A 
that Tribes must submit within 90 days after the liquidation period, 
i.e., by September 28. This report is called the final financial report.



Sec.287.60  Are there additional financial reporting and auditing
requirements?

    (a) The reporting of expenditures are generally subject to the 
requirements of 45 CFR 75.341.

[[Page 218]]

    (b) NEW Program funds and activities are subject to the audit 
requirement of the Single Audit Act of 1984 (45 CFR part 75, subpart F).
    (c) A NEW Program grantee must comply with all laws, regulations, 
and Departmental policies that govern submission of financial reports by 
recipients of Federal grants.
    (d) Improper expenditure claims under this program are subject to 
disallowance.
    (e) If a grantee disagrees with the Agency's decision to disallow 
funds, the grantee may follow the appeal procedures at 45 CFR part 16.

[65 FR 8554, Feb. 18, 2000, as amended at 81 FR 3021, Jan. 20, 2016]



Sec.287.65  What OMB circulars apply to the NEW Program?

    NEW Programs are subject to the following OMB circulars where 
applicable: A-87 ``Cost Principles for State, Local, and Indian Tribal 
Governments,'' A-122 ``Cost Principles for Non-Profit Organizations,'' 
and A-133 ``Audits of States and Local Governments.''



                       Subpart D_Plan Requirements



Sec.287.70  What are the plan requirements for the NEW Program?

    (a) To apply for and conduct a NEW Program, a Tribe must submit a 
plan to ACF.
    (b) The plan must identify the agency responsible for administering 
the NEW Program and include a description of the following:
    (1) Population to be served;
    (2) Service area;
    (3) Client services;
    (4) Work activities to be provided;
    (5) Supportive and job retention services to be provided;
    (6) Anticipated program outcomes, and the measures the Tribe will 
use to determine them; and
    (7) Coordination activities conducted and expected to be conducted 
with other programs and agencies.
    (c) The plan must also describe how the Tribe will deliver work 
activities and services.
    (d) The format is left to the discretion of each NEW grantee.



Sec.287.75  When does the plan become effective?

    NEW plans, which are three-year plans, become effective when 
approved by the Secretary. The plans are usually operative the beginning 
of a NEW Program year, July 1.



Sec.287.80  What is the process for plan review and approval?

    (a) A Tribe must submit its plan to the ACF Regional Office, with a 
copy sent to the Division of Tribal Services, Office of Community 
Services, Administration for Children and Families, Attention: Native 
Employment Works Team.
    (b) To receive funding by the beginning of the NEW Program year 
(July 1), a Tribe must submit its plan by the established due date.
    (c) ACF will complete its review of the plan within 45 days of 
receipt.
    (d) After the plan review has occurred, if the plan is approvable, 
ACF will approve the plan, certifying that the plan meets all necessary 
requirements. If the plan is not approvable, the Regional Office will 
notify the Tribe regarding additional action needed for plan approval.



Sec.287.85  How is a NEW plan amended?

    (a) If a Tribe makes substantial changes in its NEW Program plan or 
operations, it must submit an amendment for the changed section(s) of 
the plan to the appropriate ACF Regional Office for review and approval, 
with a copy sent to the Division of Tribal Services, Office of Community 
Services, Administration of Children and Families, Attention: Native 
Employment Works Team. The review will verify consistency with section 
412(a)(2) of the Act.
    (b) A substantial change is a change in the agency administering the 
NEW Program, a change in the designated service area and/or population, 
a change in work activities provided or a change in performance 
standards.
    (c) A substantial change in plan content or operations must be 
submitted to us no later than 45 days prior to the proposed 
implementation date.
    (d) ACF will complete the review of the amended plan within 45 days 
of receipt.

[[Page 219]]

    (e) An amended plan becomes effective when it is approved by the 
Secretary.



Sec.287.90  Are Tribes required to complete any certifications?

    Yes. A Tribe must include in its NEW Program plan the following four 
certifications and any additional certifications that the Secretary 
prescribes in the planning guidance: Certification Regarding Debarment, 
Suspension, and Other Responsibility Matters--Primary Covered 
Transactions; Certification Regarding Drug Free Workplace Requirements 
for Grantees Other Than Individuals; Certification Regarding Tobacco 
Smoke, and Assurances--Non-Construction Programs.



Sec.287.95  May a Tribe operate both a NEW Program and a Tribal TANF
program?

    Yes. However, the Tribe must adhere to statutory and regulatory 
requirements of the individual programs.



Sec.287.100  Must a Tribe that operates both NEW and Tribal TANF 
programs submit two separate plans?

    Yes. Separate plans are needed to reflect different program and plan 
requirements as specified in the statute and in plan guidance documents 
issued by the Secretary for each program.



                 Subpart E_Program Design and Operations



Sec.287.105  What provisions of the Social Security Act govern the 
NEW Program?

    NEW Programs are subject only to those requirements at section 
412(a)(2) of the Act, as amended by PRWORA, titled ``Grants for Indian 
Tribes that Received JOBS Funds.''



Sec.287.110  Who is eligible to receive assistance or services under
a Tribe's NEW Program?

    (a) A Tribe must specify in its NEW Program plan the population and 
service area to be served. In cases where a Tribe designates a service 
area for its NEW Program that is different from its Bureau of Indian 
Affairs (BIA) service area, an explanation must be provided.
    (b) A Tribe must include eligibility criteria in its plan and 
establish internal operating procedures that clearly specify the 
criteria to be used to establish an individual's eligibility for NEW 
services. The eligibility criteria must be equitable.



Sec.287.115  When a NEW grantee serves TANF recipients, what
coordination should take place with the Tribal or State TANF agency?

    The Tribe should coordinate with the Tribal or State TANF agency on:
    (a) Eligibility criteria for TANF recipients to receive NEW Program 
services;
    (b) Exchange of case file information;
    (c) Changes in client status that result in a loss of cash 
assistance, food stamps, Medicaid or other medical coverage;
    (d) Identification of work activities that may meet Tribal or State 
work participation requirements;
    (e) Resources available from the Tribal or State TANF agency to 
ensure efficient delivery of benefits to the designated service 
population;
    (f) Policy for exclusions from the TANF program (e.g., criteria for 
exemptions and sanctions);
    (g) Termination of TANF assistance when time limits become 
effective;
    (h) Use of contracts in delivery of TANF services;
    (i) Prevention of duplication of services to assure the maximum 
level of services is available to participants;
    (j) Procedures to ensure that costs of other program services for 
which welfare recipients are eligible are not shifted to the NEW 
Program; and
    (k) Reporting data for TANF quarterly and annual reports.



Sec.287.120  What work activities may be provided under the NEW 
Program?

    (a) The Tribe will determine what work activities are to be 
provided.
    (b) Examples of allowable activities include, but are not limited 
to: Educational activities, alternative education, post secondary 
education, job readiness activity, job search, job skills training, 
training and employment activities, job development and placement, on-
the-job training (OJT), employer work incentives related to

[[Page 220]]

OJT, community work experience, innovative approaches with the private 
sector, pre/post employment services, job retention services, 
unsubsidized employment, subsidized public or private sector employment, 
community service programs, entrepreneurial training, management 
training, job creation activities, economic development leading to job 
creation, and traditional subsistence activities.



Sec.287.125  What supportive and job retention services may be 
provided under the NEW Program?

    The NEW Program grantee may provide, pay for or reimburse expenses 
for supportive services, including but not limited to transportation, 
child care, traditional or cultural work related services, and other 
work or family sufficiency related expenses that the Tribe determines 
are necessary to enable a client to participate in the program.



Sec.287.130  Can NEW Program activities include job market
assessments, job creation and economic development activities?

    (a) A Tribe may conduct job market assessments within its NEW 
Program. These might include the following:
    (1) Consultation with the Tribe's economic development staff or 
leadership that oversees the economic and employment planning for the 
Tribe;
    (2) Consultation with any local employment and training program, 
Workforce Development Boards, One-Stop Centers, or planning agencies 
that have undertaken economic and employment studies for the area in 
which the Tribe resides;
    (3) Communication with any training, research, or educational 
agencies that have produced economic development plans for the area that 
may or may not include the Tribe; and
    (4) Coordination with any State or local governmental agency 
pursuing economic development options for the area.
    (b) The Tribe's NEW Program may engage in activities and provide 
services to create jobs and economic opportunities for its participants. 
These services should be congruous with any available local job market 
assessments and may include the following:
    (1) Tribal Employment Rights Office (TERO) services;
    (2) Job creation projects and services;
    (3) Self-employment;
    (4) Self-initiated training that leads a client to improved job 
opportunities and employment;
    (5) Economic development projects that lead to jobs, improved 
employment opportunities, or self-sufficiency of program participants;
    (6) Surveys to collect information regarding client characteristics; 
and
    (7) Any other development and job creation activities that enable 
Tribal members to increase their economic independence and reduce their 
need for benefit assistance and supportive services.



Sec.287.135  Are bonuses, rewards and stipends allowed for participants
in the NEW Program?

    Bonuses, stipends, and performance awards are allowed. However, such 
allowances may be counted as income in determining eligibility for some 
TANF or other need-based programs.



Sec.287.140  With whom should the Tribe coordinate in the operation
of its work activities and services?

    The administration of work activities and services provided under 
the NEW Program must ensure that appropriate coordination and 
cooperation is maintained with the following entities operating in the 
same service areas as the Tribe's NEW Program:
    (a) State, local and Tribal TANF agencies, and agencies operating 
employment and training programs;
    (b) Any other agency whose programs impact the service population of 
the NEW Program, including employment, training, placement, education, 
child care, and social programs.



Sec.287.145  What measures will be used to determine NEW Program outcomes?

    Each grantee must develop its own performance standards and measures 
to ensure accountability for its program results. A Tribe's program plan 
must identify planned program outcomes and the measures the Tribe will 
use to determine them. ACF will compare planned outcomes against 
outcomes reported in the Tribe's annual reports.

[[Page 221]]



          Subpart F_Data Collection and Reporting Requirements



Sec.287.150  Are there data collection requirements for Tribes that 
operate a NEW Program?

    (a) Yes, the Tribal agency or organization responsible for operation 
of a NEW Program must collect data and submit reports as specified by 
the Secretary.
    (b) A NEW Program grantee must establish and maintain efficient and 
effective record-keeping systems to provide accurate and timely 
information regarding its service population.
    (c) Required reports will provide Tribes, the Secretary, Congress, 
and other interested parties with information to assess the success of 
the NEW Program in meeting its goals. Also, the reports will provide the 
Secretary with information for monitoring program and financial 
operations.



Sec.287.155  What reports must a grantee file with the Department 
about its NEW Program operations?

    (a) Each eligible Tribe must submit an annual report that provides a 
summary of program operations.
    (b) The Secretary has developed an annual operations report (OMB 
clearance number 0970-0174). The report specifies the data elements on 
which grantees must report, including elements that provide information 
regarding the number and characteristics of those served by the NEW 
Program. This report is in addition to any financial reports required by 
law, regulations, or Departmental policies.
    (c) The report form and instructions are distributed through ACF's 
program instruction system.
    (d) The program operations report will be due September 28th, 90 
days after the close of the NEW Program year.



Sec.287.160  What reports must a grantee file regarding financial
operations?

    (a) Grantees will use SF-269A to make an annual financial report of 
expenditures for program activities and services.
    (b) Two annual financial reports will be due to the appropriate 
Regional Office. The interim SF-269A is due no later than July 30, i.e., 
30 days after the end of the obligation period. The final SF-269A is due 
90 days after the end of the liquidation period.



Sec.287.165  What are the data collection and reporting requirements
for Public Law 102-477 Tribes that consolidate a NEW Program with other
programs?

    (a) Currently, there is a single reporting system for all programs 
operated by a Tribe under Public Law 102-477. This system includes a 
program report, consisting of a narrative report, a statistical form, 
and a financial report.
    (1) The program report is required annually and submitted to BIA, as 
the lead Federal agency and shared with DHHS and DOL.
    (2) The financial report is submitted on a SF-269A to BIA.
    (b) Information regarding program and financial operations of a NEW 
Program administered by a Public Law 102-477 Tribe will be captured 
through the existing Public Law 102-477 reporting system.



Sec.287.170  What are the data collection and reporting requirements 
for a Tribe that operates both the NEW Program and a Tribal TANF
program?

    Tribes operating both NEW and Tribal TANF programs must adhere to 
the separate reporting requirements for each program. NEW Program 
reporting requirements are specified in Sec. Sec.287.150-287.170.

                        PARTS 288	299 [RESERVED]

[[Page 223]]



    CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT 
    ENFORCEMENT PROGRAM), ADMINISTRATION FOR CHILDREN AND FAMILIES, 
                 DEPARTMENT OF HEALTH AND HUMAN SERVICES




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter III appear at 66 FR 
39452, July 31, 2001.
Part                                                                Page
300             Review of regulations (Eff. 3-22-22)........         225
301             State plan approval and grant procedures....         227
302             State plan requirements.....................         233
303             Standards for program operations............         252
304             Federal financial participation.............         284
305             Program performance measures, standards, 
                    financial incentives, and penalties.....         291
306            [Reserved]

307             Computerized support enforcement systems....         304
308             Annual State self-assessment review and 
                    report..................................         314
309             Tribal child support enforcement (IV-D) 
                    program.................................         319
310             Computerized tribal IV-D systems and office 
                    automation..............................         338
311-399        [Reserved]

[[Page 225]]



PART 300_REVIEW OF REGULATIONS (Eff. 3-22-22)--Table of Contents



Sec.
300.1 Retrospective review of existing regulations.
300.2-300.5 [Reserved]

    Authority: 5 U.S.C. 301; 5 U.S.C. 610; 25 U.S.C. 1603(12); 25 U.S.C. 
1621e; 42 U.S.C. 609(a)(8); 42 U.S.C. 651 through 658; 42 U.S.C. 
652(a)(4) and (g); 42 U.S.C. 654(15)(A); 42 U.S.C. 655(f); 42 U.S.C. 
658a; 42 U.S.C. 659a; 42 U.S.C. 660; 42 U.S.C. 663; 42 U.S.C. 664; 42 
U.S.C. 666 through 669A; 42 U.S.C. 1301; 42 U.S.C. 1302; 42 U.S.C. 
1396a(a)(25); 42 U.S.C. 1396b(d)(2); 42 U.S.C. 1396b(o); 42 U.S.C. 
1396b(p); 42 U.S.C. 1396(k).

    Source: 86 FR 5759, Jan. 19, 2021, unless otherwise noted.

    Effective Date Note: At 86 FR 5759, Jan. 19, 2021, part 300 was 
added, and at 86 FR 15404, Mar. 23, 2021, its effective date was delayed 
until Mar. 22, 2022.



Sec.300.1  Retrospective review of existing regulations.

    (a) This section applies to and shall be deemed to amend all 
regulations issued by the Secretary or his delegates or sub-delegates in 
this chapter.
    (b) For purposes of this section,
    (1) Assess shall refer to a determination by the Department, in 
consultation with other Federal agencies as appropriate, as to whether 
the Sections issued as part of the same rulemaking (and any amendments 
or additions that may have been added thereafter) currently have a 
significant economic impact upon a substantial number of small entities.
    (2) Review shall refer to a process conducted by the Department, in 
consultation with other Federal agencies as appropriate, the purpose of 
which shall be to determine whether Sections that were issued as part of 
the same rulemaking (and any amendments or additions that may have been 
issued thereafter) should be continued without change, or should be 
amended or rescinded, consistent with the stated objectives of 
applicable statutes, to minimize any significant economic impact of the 
Sections upon a substantial number of small entities.
    (3) Section (when capitalized) shall mean a section of the Code of 
Federal Regulations. For example, 42 CFR 2.13 is a Section, and 42 CFR 
2.14 is another Section (see 1 CFR 21.11).
    (4) Year of the Section's promulgation shall mean the year the 
Section first became effective, irrespective of whether it was 
subsequently amended.
    (5) Significant economic impact upon a substantial number of small 
entities shall have the meaning of that term in section 610 of title 5 
of the United States Code.
    (c)(1) Unless a Section expires earlier or is rescinded, all 
Sections issued by the Secretary or his delegates or sub-delegates in 
this chapter shall expire at the end of:
    (i) Five calendar years after the year that this section first 
becomes effective;
    (ii) Ten calendar years after the year of the Section's 
promulgation; or
    (iii) Ten calendar years after the last year in which the Department 
assessed and (if review of the Section is required pursuant to paragraph 
(d) of this section) reviewed the Section, whichever is latest.
    (2) The last year in which the Department assessed and (if review of 
the Section is required) reviewed the Section shall be the year during 
which the findings of the assessment and (if required) the review of a 
Section are published in the Federal Register pursuant to paragraph (f) 
of this section.
    (3)(i) If, prior to the expiration of a Section under paragraph 
(c)(1) of this section, the Secretary makes a written determination that 
the public interest requires continuation of the Section in force beyond 
the date on which the Section would otherwise expire under paragraph 
(c)(1), the Secretary may continue the Section in force one time for a 
period stated in the determination, which shall not exceed one calendar 
year.
    (ii) The Department shall promptly publish in the Federal Register 
any written determination under paragraph (c)(3)(i) of this section.
    (iii) The authority of the Secretary under paragraph (c)(3)(i) of 
this section is not delegable and may be exercised only by the Secretary 
or, when the office of the Secretary is vacant or the Secretary has 
become unable to perform the functions and duties of the office of the 
Secretary, by the individual

[[Page 226]]

acting as Secretary in accordance with the law.
    (d) The Department is required to review those rulemakings (and any 
amendments or additions that may have been added thereafter) that the 
Department assesses have a significant economic impact upon a 
substantial number of small entities. In reviewing rulemakings to 
minimize any significant economic impact on a substantial number of 
small entities in a manner consistent with the stated objectives of 
applicable statutes, the Department's review shall consider the 
following factors:
    (1) The continued need for the rulemaking, consideration of which 
shall include but not be limited to the extent to which the rulemaking 
defines terms or sets standards used in or otherwise applicable to other 
Federal rules;
    (2) The nature of complaints or comments received concerning the 
rulemaking from the public;
    (3) The complexity of the rulemaking;
    (4) The extent to which the rulemaking overlaps, duplicates or 
conflicts with other Federal rules, and, to the extent feasible, with 
State and local governmental rules;
    (5) The degree to which technology, economic conditions, or other 
factors have changed in the area affected by the rulemaking since the 
rulemaking was promulgated or the last time the rulemaking was reviewed 
by the Department; and
    (6) Whether the rulemaking complies with applicable law.
    (e) If the review concludes the Section should be amended or 
rescinded, the Department shall have two years from the date that the 
findings of the review are published in the Federal Register pursuant to 
paragraph (f) of this section to amend or rescind the Section. If the 
Secretary determines that completion of the amendment or rescission is 
not feasible by the established date, he shall so certify in a statement 
published in the Federal Register and may extend the completion date by 
one year at a time, no more than three times, for a total of not more 
than five years (inclusive of the initial two-year period).
    (f) The results of all assessments and reviews conducted in a 
calendar year, including the full underlying analyses and data used to 
support the results (subject to any applicable privilege, protections 
for confidential business information, or explicit legal prohibition on 
disclosure), shall be published in a single document in the Federal 
Register during that calendar year. The document shall be organized in a 
manner that enables both the Department and the public to readily 
determine which assessments and reviews were conducted during that 
calendar year. The document shall also specify the year by which the 
next assessment (and, if required, the next review) of the Section shall 
be completed.
    (g) Paragraph (c) of this section shall not apply to:
    (1) Sections that are prescribed by Federal law, such that the 
Department exercises no discretion as to whether to promulgate the 
Section and as to what is prescribed by the Section. For Sections 
described in this paragraph (g)(1) that are adopted after the effective 
date of this section, the Federal law described in this paragraph (g)(1) 
shall be cited in the notice of adoption.
    (2) Sections whose expiration pursuant to this section would violate 
any other Federal law.
    (3) This section.
    (4) Sections that involve a military or foreign affairs function of 
the United States.
    (5) Sections addressed solely to internal agency management or 
personnel matters.
    (6) Sections related solely to Federal Government procurement.
    (7) Sections that were issued jointly with other Federal agencies, 
or that were issued in consultation with other agencies because of a 
legal requirement to consult with that other agency.
    (h) When the Department commences the process of performing an 
assessment or review, it shall state on a Department-managed website the 
Section(s) whose assessment or review it is commencing. It shall also 
announce once a month in the Federal Register those new assessments or 
reviews that it has commenced in the last month. The Department will 
create a docket on Regulations.gov for each assessment

[[Page 227]]

or review that the Department is conducting. The public will be able to 
submit comments to the dockets of each rulemaking being assessed or 
reviewed. Each docket shall specify the date by which comments must be 
received. There shall also be a general docket on Regulations.gov where 
the public can submit comments requesting that the Department assess or 
review a Section.
    (i) Any provision of this section held to be invalid or 
unenforceable by its terms, or as applied to any person or circumstance, 
shall be construed so as to continue to give the maximum effect to the 
provision permitted by law, unless such holding shall be one of utter 
invalidity or unenforceability, in which event the provision shall be 
severable from this section and shall not affect the remainder thereof 
or the application of the provision to persons not similarly situated or 
to dissimilar circumstances.



Sec. Sec.300.2-300.5  [Reserved]



PART 301_STATE PLAN APPROVAL AND GRANT PROCEDURES--Table of Contents



Sec.
301.0 Scope and applicability of this part.
301.1 General definitions.
301.10 State plan.
301.11 State plan; format.
301.12 Submittal of State plan for Governor's review.
301.13 Approval of State plans and amendments.
301.14 Administrative review of certain administrative decisions.
301.15 Grants.
301.16 Withholding of advance funds for not reporting.

    Authority: 42 U.S.C. 651 through 658, 659a, 660, 664, 666, 667, 
1301, and 1302.

    Source: 40 FR 27157, June 26, 1975, unless otherwise noted.



Sec.301.0  Scope and applicability of this part.

    This part deals with the administration of title IV-D of the Social 
Security Act by the Federal Government including actions on the State 
plan and amendments thereto and review of such actions; grants under the 
approved plan; review and audit of State and local expenditures; and 
reconsideration of disallowances of expenditures for Federal financial 
participation.



Sec.301.1  General definitions.

    When used in this chapter, unless the context otherwise indicates:
    Act means the Social Security Act, and the title referred to is 
title IV-D of that Act.
    Agent of a Child means a caretaker relative having custody of or 
responsibility for the child.
    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.
    Assigned support obligation means, unless otherwise specified, any 
support obligation which has been assigned to the State under section 
408(a)(3) of the Act or section 471(a)(17) of the Act, or any medical 
support obligation or payment for medical care from any third party 
which has been assigned to the State under 42 CFR 433.146.
    Assignment means, unless otherwise specified, any assignment of 
rights to support under section 408(a)(3) of the Act or section 
471(a)(17) of the Act, or any assignment of rights to medical support 
and to payment for medical care from any third party under 42 CFR 
433.146.
    Attorney of a Child means a licensed lawyer who has entered into an 
attorney-client relationship with either the child or the child's 
resident parent to provide legal representation to the child or resident 
parent related to establishment of paternity, or the establishment, 
modification, or enforcement of child support. An attorney-client 
relationship imposes an ethical and fiduciary duty upon the attorney to 
represent the client's best interests under applicable rules of 
professional responsibility.
    Birthing hospital means a hospital that has an obstetric care unit 
or provides obstetric services, or a birthing center associated with a 
hospital. A birthing center is a facility outside a hospital that 
provides maternity services.

[[Page 228]]

    Central authority means the agency designated by a government to 
facilitate support enforcement with a foreign reciprocating country 
(FRC) pursuant to section 459A of the Act.
    Central registry means a single unit or office within the State IV-D 
agency which receives, disseminates and has oversight responsibility for 
processing incoming interstate IV-D cases, including UIFSA petitions and 
requests for wage withholding in IV-D cases and, at the option of the 
State, intrastate IV-D cases.
    Controlling order State means the State in which the only order was 
issued or, where multiple orders exist, the State in which the order 
determined by a tribunal to control prospective current support pursuant 
to the UIFSA was issued.
    Country means a foreign country (or a political subdivision thereof) 
declared to be an FRC under section 459A of the Act and any foreign 
country (or political subdivision thereof) with which the State has 
entered into a reciprocal arrangement for the establishment and 
enforcement of support obligations to the extent consistent with Federal 
law pursuant to section 459A(d) of the Act.
    Department means the Department of Health and Human Services.
    Director means the Director, Office of Child Support Enforcement, 
who is the Secretary's designee to administer the Child Support 
Enforcement program under title IV-D.
    Federal PLS means the Parent Locator Service operated by the Office 
of Child Support Enforcement pursuant to section 452(a)(9) of the Act.
    Form means a federally-approved document used for the establishment 
and enforcement of support obligations whether compiled or transmitted 
in written or electronic format, including but not limited to the Income 
Withholding for Support form, and the National Medical Support Notice. 
In interstate IV-D cases, such forms include those used for child 
support enforcement proceedings under the UIFSA. Form also includes any 
federally-mandated IV-D reporting form, where appropriate.
    Initiating agency means a State or Tribal IV-D agency or an agency 
in a country, as defined in this rule, in which an individual has 
applied for or is receiving services.
    Intergovernmental IV-D case means a IV-D case in which the 
noncustodial parent lives and/or works in a different jurisdiction than 
the custodial parent and child(ren) that has been referred by an 
initiating agency to a responding agency for services. An 
intergovernmental IV-D case may include any combination of referrals 
between States, Tribes, and countries. An intergovernmental IV-D case 
also may include cases in which a State agency is seeking only to 
collect support arrearages, whether owed to the family or assigned to 
the State.
    Interstate IV-D case means a IV-D case in which the noncustodial 
parent lives and/or works in a different State than the custodial parent 
and child(ren) that has been referred by an initiating State to a 
responding State for services. An interstate IV-D case also may include 
cases in which a State is seeking only to collect support arrearages, 
whether owed to the family or assigned to the State.
    IV-D Agency means the single and separate organizational unit in the 
State that has the responsibility for administering or supervising the 
administration of the State plan under title IV-D of the Act.
    Medicaid means medical assistance provided under a State plan 
approved under title XIX of the Act.
    Medicaid agency means the single State agency that has the 
responsibility for the administration of, or supervising the 
administration of, the State plan under title XIX of the Act.
    Non-IV-A Medicaid recipient means any individual who has been 
determined eligible for or is receiving Medicaid under title XIX of the 
Act but is not receiving, nor deemed to be receiving, title IV-A under 
title IV-A of the Act.
    Office means the Office of Child Support Enforcement which is the 
separate organizational unit within the Department with the 
responsibility for the administration of the program under this title.
    One-state remedies means the exercise of a State's jurisdiction over 
a non-

[[Page 229]]

resident parent or direct establishment, enforcement, or other action by 
a State against a non-resident parent in accordance with the long-arm 
provision of UIFSA or other State law.
    Overdue support means a delinquency pursuant to an obligation 
determined under a court order, or an order of an administrative process 
established under State law, for support and maintenance of a minor 
child, which is owed to or on behalf of the child, or for the 
noncustodial parent's spouse (or former spouse) with whom the child is 
living, but only if a support obligation has been established with 
respect to the spouse and the support obligation established with 
respect to the child is being enforced under State's IV-D plan. At the 
option of the State, overdue support may include amounts which otherwise 
meet the definition in the previous sentence but which are owed to or on 
behalf of a child who is not a minor child. The option to include 
support owed to children who are not minors applies independently to the 
procedures required under Sec.302.70 of this chapter.
    Past-due support means the amount of support determined under a 
court order or an order of an administrative process established under 
State law for support and maintenance of a child, or of a child and the 
parent with whom the child is living, which has not been paid. Through 
September 30, 2007, for purposes of referral for Federal tax refund 
offset of support due an individual who is receiving services under 
Sec.302.33 of this chapter, past-due support means support owed to or 
on behalf of a qualified child, or a qualified child and the parent with 
whom the child is living if the same support order includes support for 
the child and the parent.
    Political subdivision means a legal entity of the State as defined 
by the State, including a legal entity of the political subdivision so 
defined, such as a Prosecuting or District Attorney or a Friend of the 
Court.
    Procedures means a set of instructions in a record which describe in 
detail the step by step actions to be taken by child support enforcement 
personnel in the performance of a specific function under the State's 
IV-D plan. The IV-D agency may issue general instructions on one or more 
functions, and delegate responsibility for the detailed procedures to 
the office, agency, or political subdivision actually performing the 
function.
    Qualified child, through September 30, 2007, means a child who is a 
minor or who, while a minor, was determined to be disabled under title 
II or XVI of the Act, and for whom a support order is in effect.
    Record means information that is inscribed on a tangible medium or 
that is stored in an electronic or other medium and is retrievable in 
perceivable form.
    Regional Office and Central Office refer to the Regional Offices and 
the Central Office of the Office of Child Support Enforcement, 
respectively.
    Responding agency means the agency that is providing services in 
response to a referral from an initiating agency in an intergovernmental 
IV-D case.
    Secretary means the Secretary of Health and Human Services.
    Spousal support means a legally enforceable obligation assessed 
against an individual for the support of a spouse or former spouse who 
is living with a child or children for whom the individual also owes 
support.
    State means the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam and American 
Samoa.
    The State plan means the State plan for child and spousal support 
under section 454 of the Act.
    State PLS means the service established by the IV-D agency pursuant 
to section 454(8) of the Act to locate parents.
    Tribunal means a court, administrative agency, or quasi-judicial 
entity authorized under State law to establish, enforce, or modify 
support orders or to determine parentage.
    Uniform Interstate Family Support Act (UIFSA) means the model act 
promulgated by the National Conference of Commissioners on Uniform State 
Laws (NCCUSL) and mandated by section

[[Page 230]]

466(f) of the Act to be in effect in all States.

[47 FR 57280, Dec. 23, 1982, as amended at 50 FR 19647, May 9, 1985; 50 
FR 23958, June 7, 1985; 50 FR 31719, Aug. 6, 1985; 53 FR 5256, Feb. 22, 
1988; 54 FR 32308, Aug. 4, 1989; 56 FR 8002, Feb. 26, 1991; 57 FR 30429, 
July 9, 1992; 58 FR 41437, Aug. 4, 1993; 59 FR 66249, Dec. 23, 1994; 61 
FR 67240, Dec. 20, 1996; 64 FR 6247, Feb. 9, 1999; 68 FR 25303, May 12, 
2003; 73 FR 74919, Dec. 9, 2008; 75 FR 38641, July 2, 2010; 75 FR 81906, 
Dec. 29, 2010; 81 FR 93560, Dec. 20, 2016]



Sec.301.10  State plan.

    The State plan is a comprehensive statement submitted by the IV-D 
agency describing the nature and scope of its program and giving 
assurance that it will be administered in conformity with the specific 
requirements stipulated in title IV-D, the regulations in Subtitle A and 
this chapter of this title, and other applicable official issuances of 
the Department. The State plan contains all information necessary for 
the Office to determine whether the plan can be approved, as a basis for 
Federal financial participation in the State program.



Sec.301.11  State plan; format.

    The State plan must be submitted to the Office in the format and 
containing the information prescribed by the Office, and within time 
limits set in implementing instructions issued by the Office. Such time 
limits will be adequate for proper preparation of plans and submittal in 
accordance with the requirements for State Governors' review (see Sec.
301.12 of this chapter).

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37730, Oct. 24, 1986]



Sec.301.12  Submittal of State plan for Governor's review.

    The State plan must be submitted to the State Governor for his 
review and comments, and the State plan must provide that the Governor 
will be given opportunity to review State plan amendments and long-range 
program planning projections or other periodic reports thereon. This 
requirement does not apply to periodic statistical or budget and other 
fiscal reports. Under this requirement, the Office of the Governor will 
be afforded a specified period in which to review the material. Any 
comments made will be transmitted to the Office with the documents.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37730, Oct. 24, 1986]



Sec.301.13  Approval of State plans and amendments.

    The State plan consists of records furnished by the State to cover 
its Child Support Enforcement program under title IV-D of the Act. After 
approval of the original plan by the Office, all relevant changes, 
required by new statutes, rules, regulations, interpretations, and court 
decisions, are required to be submitted currently so that the Office may 
determine whether the plan continues to meet Federal requirements and 
policies.
    (a) Submittal. State plans and revisions of the plans are submitted 
first to the State governor or his designee for review in accordance 
with Sec.301.12, and then to the regional office. The States are 
encouraged to obtain consultation of the regional staff when a plan is 
in process of preparation or revision.
    (b) Review. The Office of Child Support Enforcement in the regional 
offices is responsible for review of State plans and amendments. It also 
initiates discussion with the IV-D agency on clarification of 
significant aspects of the plan which come to its attention in the 
course of this review. State plan material on which the regional staff 
has questions concerning the application of Federal policy is referred 
with recommendations as required to the Office of Child Support 
Enforcement in the central office for technical assistance. Comments and 
suggestions, including those of consultants in specified areas, may be 
prepared by the central office for use by the regional staff in 
negotiations with the IV-D agency.
    (c) Action. The Regional Office exercises delegated authority to 
take affirmative action on the State plan and amendments thereto on the 
basis of policy statements or precedents previously approved by the 
Director. The Director retains authority for determining that proposed 
plan material is not approvable, or that a previously

[[Page 231]]

approved plan no longer meets the requirements for approval, except that 
a final determination of disapproval may not be made without prior 
consultation and discussion by the Director with the Secretary. The 
Regional Office or the Director formally notifies the IV-D agency of the 
actions taken on the State plan or revisions thereto.
    (d) Basis for approval. Determinations as to whether the State plan 
(including plan amendments and administrative practice under the plan) 
originally meets or continues to meet the requirements for approval are 
based on relevant Federal statutes and regulations. Guidelines are 
furnished to assist in the interpretation of the regulations.
    (e) Prompt approval of the State plan. The determination as to 
whether the State plan submitted for approval conforms to the 
requirements for approval under the Act and regulations issued pursuant 
thereto shall be made promptly and not later than the 90th day following 
the date on which the plan submittal is received in OCSE Regional 
Program Office, unless the Regional Office has secured from the IV-D 
agency an agreement, which is reflected in a record, to extend that 
period.
    (f) Prompt approval of plan amendments. Any amendment of an approved 
State plan may, at the option of the State, be considered as a 
submission of a new State plan. If the State requests that such 
amendments be so considered, the determination as to its conformity with 
the requirements for approval shall be made promptly and not later than 
the 90th day following the date on which such a request is received in 
the Regional Office with respect to an amendment that has been received 
in such office, unless the Regional Office has secured from the State 
agency an agreement, which is reflected in a record, to extend that 
period.
    (g) Effective date. The effective date of a new plan may not be 
earlier than the first day of the calendar quarter in which an 
approvable plan is submitted.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37730, Oct. 24, 1986; 
81 FR 93560, Dec. 20, 2016]



Sec.301.14  Administrative review of certain administrative decisions.

    Any State dissatisfied with a determination of the Director pursuant 
to Sec.301.13 (e) or (f) with respect to any plan or amendment may, 
within 60 days after the date of receipt of notification of such 
determination, file a petition with the Regional Office asking the 
Director for reconsideration of the issue of whether such plan or 
amendment conforms to the requirements for approval under the Act and 
pertinent Federal requirements. Within 30 days after receipt of such a 
petition, the Director shall notify the State of the time and place at 
which the hearing for the purpose of reconsidering such issue will be 
held. Such hearing shall be held not less than 30 days nor more than 60 
days after the date notice of such hearing is furnished to the State, 
unless the Director and the State agree in writing on another time. The 
hearing procedures contained in 45 CFR part 213 applicable to Sec.
201.4 of this title shall apply to reconsiderations brought under this 
section. A determination affirming, modifying, or reversing the 
Director's original decision will be made within 60 days of the 
conclusion of the hearing. Action pursuant to an initial determination 
by the Director described in such Sec.301.1 (e) or (f) that a plan or 
amendment is not approvable shall not be stayed pending the 
reconsideration, but in the event that the Director subsequently 
determines that his original decision was incorrect he shall certify 
restitution forthwith in a lump sum of any funds incorrectly withheld or 
otherwise denied.



Sec.301.15  Grants.

    To States with approved plans, a grant is made each quarter for 
expenditures under the plan for the administration of the Child Support 
Enforcement program. The determination as to the amount of a grant to be 
made to

[[Page 232]]

a State is based upon documents submitted by the IV-D agency containing 
information required under the Act and such other pertinent facts as may 
be found necessary.
    (a) Financial reporting forms--(1) Form OCSE-396: Child Support 
Enforcement Program Quarterly Financial Report. States submit this form 
quarterly to report the actual amount of State and Federal share of 
title IV-D program expenditures and program income of the current 
quarter and to report the estimated amount of the State and Federal 
share of title IV-D program expenditures for the next quarter. This form 
is completed in accordance with published instructions. The digital 
signature of the authorized State program official on this document 
certifies that the reported expenditures and estimates are accurate and 
that the State has or will have the necessary State share of estimated 
program expenditures available when needed.
    (2) Form OCSE-34: Child Support Enforcement Program Quarterly 
Collection Report. States submit this form quarterly to report the State 
and Federal share of child support collections received, distributed, 
disbursed, and remaining undistributed under the title IV-D program. 
This form is completed in accordance with published instructions. The 
digital signature of the authorized State program official on this 
document certifies that the reported amounts are accurate. The Federal 
share of actual program expenditures and collections and the Federal 
share of estimated program expenditures reported on Form OCSE-396 and 
the Federal share of child support collections reported on Form OCSE-34 
are used in the computation of quarterly grant awards issued to the 
State.
    (b) Submission, review, and approval--(1) Manner of submission. The 
Administration for Children and Families (ACF) maintains an On-line Data 
Collection (OLDC) system available to every State. States must use OLDC 
to submit reporting information electronically. To use OLDC, a State 
must request access from the ACF Office of Grants Management and use an 
approved digital signature.
    (2) Schedule of submission. Forms OCSE-396 and OCSE-34 must be 
electronically submitted no later than 45 days following the end of the 
each fiscal quarter. No submission, revisions, or adjustments of the 
financial reports submitted for any quarter of a fiscal year will be 
accepted by OCSE later than December 31, which is 3 months after the end 
of the fiscal year.
    (3) Review and approval. The data submitted on Forms OCSE-396 and 
OCSE-34 are subject to analysis and review by the Regional Grants 
Officer in the appropriate ACF Regional Office and approval by the 
Director, Office of Grants Management, in the ACF central office. In the 
course of this analysis, review, and approval process, any reported 
program expenditures that cannot be determined to be allowable are 
subject to the deferral procedures found at 45 CFR 201.15 or the 
disallowance process found at 45 CFR 304.29 and 201.14 and 45 CFR part 
16.
    (c) Grant award--(1) Award documents. The grant award consists of a 
signed award letter and an accompanying ``Computation of Grant Award'' 
to detail the award calculation.
    (2) Award calculation. The quarterly grant award is based on the 
information submitted by the State on the financial reporting forms and 
consists of:
    (i) An advance of funds for the next quarter, based on the State's 
approved estimate; and
    (ii) The reconciliation of the advance provided for the current 
quarter, based on the State's approved expenditures.
    (3) Access to funds. A copy of the grant documents are provided to 
the HHS Program Support Center's Division of Payment Management, which 
maintains the Payment Management System (PMS). The State is able to 
request a drawdown of funds from PMS through a commercial bank and the 
Federal Reserve System against a continuing letter of credit. The letter 
of credit system for payment of advances of Federal funds was 
established pursuant to Treasury Department regulations. (Circular No. 
1075).
    (d) General administrative requirements. The provisions of part 95 
of this title, establishing general administrative requirements for 
grant programs and part 75 of this title, establishing uniform 
administrative requirements and

[[Page 233]]

cost principles, shall apply to all grants made to the States under this 
part, with the following exceptions:
    (1) 45 CFR 75.306, Cost sharing or matching and
    (2) 45 CFR 75.341, Financial reporting.

(Approved by the Office of Management and Budget under control numbers 
0960-0239 and 0960-0235)

[40 FR 27147, June 26, 1975, as amended at 51 FR 37731, Oct. 24, 1986; 
61 FR 67240, Dec. 20, 1996; 81 FR 3021, Jan. 20, 2016; 81 FR 93560, Dec. 
20, 2016]



Sec.301.16  Withholding of advance funds for not reporting.

    (a) No advance for any quarter will be made unless full and complete 
reports on expenditures and collections, as required by Sec. Sec.
301.15 and 302.15 of this chapter, respectively, have been submitted to 
the Office by the IV-D agency for all quarters with the exception of the 
two quarters immediately preceding the quarter for which the advance is 
to be made.
    (b) For purposes of this section, a report is full and complete if:
    (1) All line items of information are reported in accordance with 
OCSE instructions; and
    (2) The report contains all applicable information available to the 
State and appropriate for inclusion in the report for the quarter being 
reported and prior quarters.

(Collection reporting form approved by the Office of Management and 
Budget under control number 0960-0238 and expenditure reporting form 
approved under control number 0960-0235)

[47 FR 8570, Mar. 1, 1982]



PART 302_STATE PLAN REQUIREMENTS--Table of Contents



Sec.
302.0 Scope of this part.
302.1 Definitions.
302.10 Statewide operations.
302.11 State financial participation.
302.12 Single and separate organizational unit.
302.13 Plan amendments.
302.14 Fiscal policies and accountability.
302.15 Reports and maintenance of records.
302.17 Inclusion of State statutes.
302.19 Bonding of employees.
302.20 Separation of cash handling and accounting functions.
302.30 Publicizing the availability of support enforcement services.
302.31 Establishing paternity and securing support.
302.32 Collection and disbursement of support payments by the IV-D 
          agency.
302.33 Services to individuals not receiving title IV-A assistance.
302.34 Cooperative arrangements.
302.35 State parent locator service.
302.36 Provisions of services in interstate and intergovernmental IV-D 
          cases.
302.37 [Reserved]
302.38 Payments to the family.
302.39 Standards for program operation.
302.40 [Reserved]
302.50 Assignment of rights to support.
302.51 Distribution of support collections.
302.52 Distribution of support collected in Title IV-E foster care 
          maintenance cases.
302.54 Notice of collection of assigned support.
302.55 Incentive payments to States and political subdivisions.
302.56 Guidelines for setting child support orders.
302.60 Collection of past-due support from Federal tax refunds.
302.65 Withholding of unemployment compensation.
302.70 Required State laws.
302.75 Procedures for the imposition of late payment fees on 
          noncustodial parents who owe overdue support.
302.80 Medical support enforcement.
302.85 Mandatory computerized support enforcement system.

    Authority: 42 U.S.C. 651 through 658, 659a, 660, 664, 666, 667, 
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and 1396(k).

    Source: 40 FR 27159, June 26, 1975, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 302 appear at 64 FR 
6247, Feb. 9, 1999.



Sec.302.0  Scope of this part.

    This part defines the State plan provisions required for an approved 
plan under title IV-D of the Act.



Sec.302.1  Definitions.

    The definitions found in Sec.301.1 of this chapter also are 
applicable to this part.



Sec.302.10  Statewide operations.

    The State plan shall provide that:
    (a) It will be in operation on a statewide basis in accordance with 
equitable standards for administration that are mandatory throughout the 
State;
    (b) If administered by a political subdivision of the State, the 
plan will be

[[Page 234]]

mandatory on such political subdivision;
    (c) The IV-D agency will assure that the plan is continuously in 
operation in all appropriate offices or agencies through:
    (1) Methods for informing staff of State policies, standards, 
procedures and instructions; and
    (2) Regular planned examination and evaluation of operations in 
local offices by regularly assigned State staff, including regular 
visits by such staff; and through reports, controls, or other necessary 
methods.



Sec.302.11  State financial participation.

    The State plan shall provide that the State will participate 
financially in the program.



Sec.302.12  Single and separate organizational unit.

    (a) The State plan shall provide for the establishment or 
designation of a single and separate organizational unit to administer 
the IV-D plan. Such unit is referred to as the IV-D agency. Under this 
requirement:
    (1) The IV-D agency may be:
    (i) Located in any other agency of the State; or,
    (ii) Established as a new agency of the State.
    (2) The IV-D agency shall be responsible and accountable for the 
operation of the IV-D program. Except as provided in Sec.303.20 of 
this part, the agency need not perform all the functions of the IV-D 
program so long as it insures that all these functions are being carried 
out properly, efficiently, and effectively;
    (3) If the IV-D agency delegates any of the functions of the IV-D 
program to any other State or local agency or official, or any official 
with whom a cooperative agreement as described in Sec.302.34 has been 
entered into or purchases services from any person or private agency 
pursuant to Sec.304.22 of this part, the IV-D agency shall have 
responsibility for securing compliance with the requirements of the 
State plan by such agency or officials.
    (b) The State plan shall describe the structure of the IV-D agency 
and the distribution of responsibilities among the major divisions 
within the unit, and if it is located within another agency, show its 
place in such agency. If any of the IV-D program functions are to be 
performed outside of the IV-D agency then these functions shall be 
listed with the name of the organization responsible for performing 
them.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27159, June 26, 1975, as amended at 51 FR 37731, Oct. 24, 1986; 
64 FR 6247, Feb. 9, 1999]



Sec.302.13  Plan amendments.

    (a) The State plan shall provide that the plan will be amended 
whenever necessary to reflect new or revised Federal statutes or 
regulations, or material change in any phase of State law, organization, 
policy of IV-D agency operation.
    (b) Federal financial participation. Except where otherwise 
provided, Federal financial participation is available in the additional 
expenditures resulting from an amended provision of the State plan as of 
the first day of the calendar quarter in which an approvable amendment 
is submitted or the date on which the amended provision becomes 
effective in the State, whichever is later.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[40 FR 27159, June 26, 1975, as amended at 51 FR 37731, Oct. 24, 1986]



Sec.302.14  Fiscal policies and accountability.

    The State plan shall provide that the IV-D agency, in discharging 
its fiscal accountability, will maintain an accounting system and 
supporting fiscal records adequate to assure that claims for Federal 
funds are in accord with applicable Federal requirements. The retention 
and custodial requirements for these records are prescribed in 45 CFR 
75.361 through 75.370.

[81 FR 93561, Dec. 20, 2016]



Sec.302.15  Reports and maintenance of records.

    The State plan shall provide that:
    (a) The IV-D agency will maintain records necessary for the proper 
and efficient operation of the plan, including records regarding:

[[Page 235]]

    (1) Applications pursuant to Sec.302.33 for support services 
available under the State plan;
    (2) Location of noncustodial parents, actions to establish paternity 
and obtain and enforce support, and the costs incurred in such actions;
    (3) Amount and sources of support collections and the distribution 
of these collections;
    (4) Any fees charged or paid for support enforcement services;
    (5) Any other administrative costs;
    (6) Any other information required by the Office;
    (7) Statistical, fiscal, and other records necessary for reporting 
and accountability required by the Secretary; and
    (8) The retention and custodial requirements for the records in this 
section are prescribed in 45 CFR 75.361 through 75.370.
    (b) The IV-D agency will make such reports in such form and 
containing such information, as the Secretary may from time to time 
require, and comply with such provisions as he may from time to time 
find necessary to assure the correctness and verification of such 
reports.

(Approved by the Office of Management and Budget under control numbers 
0960-0154, 0960-0226 and 0960-0238)

[40 FR 27159, June 26, 1975, as amended at 47 FR 57281, Dec. 23, 1982; 
48 FR 51917, Nov. 15, 1983; 51 FR 37731, Oct. 24, 1986; 61 FR 67240, 
Dec. 20, 1996; 81 FR 3021, Jan. 20, 2016; 81 FR 93561, Dec. 20, 2016]



Sec.302.17  Inclusion of State statutes.

    The State plan shall provide a copy of State statutes, or 
regulations promulgated pursuant to such statutes and having the force 
of law (including citations of such statutes and regulations), that 
provide procedures to determine the paternity of a child born out of 
wedlock, to establish the child support obligation of a responsible 
parent, and to enforce a support obligation, including spousal support 
if appropriate.

(Approved by the Office of Management and Budget under control numbers 
0960-0253 and 0960-0385)

[50 FR 19647, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec.302.19  Bonding of employees.

    The State plan shall provide that the following requirements and 
criteria to bond employees are in effect:
    (a) IV-D responsibility. The IV-D agency will insure that every 
person, who has access to or control over funds collected under the 
child support enforcement program, is covered by a bond against loss 
resulting from employee dishonesty.
    (b) Scope. The requirement in paragraph (a) of this section applies 
to every person who, as a regular part of his or her employment, 
receives, disburses, handles or has access to support collections, which 
includes:
    (1) IV-D agency employees and employees of any other State or local 
agency to which IV-D functions have been delegated.
    (2) Employees of a court or law enforcement official performing 
under a cooperative agreement with the IV-D agency.
    (3) Employees of any private or governmental entity from which the 
IV-D agency purchases services.
    (c) Bond. The bond will be for an amount which the State IV-D agency 
deems adequate to indemnify the State IV-D program for loss resulting 
from employee dishonesty.
    (d) Self-bonding System. A State or political subdivision may comply 
with the requirement in paragraph (a) of this section:
    (1) By means of a self-bonding system established under State law 
or,
    (2) In the case of a political subdivision, by means of a self-
bonding system approved by the State IV-D agency.
    (e) IV-D liability. The requirements of this section do not reduce 
or limit the ultimate liability of the IV-D agency for losses of support 
collections from the State's IV-D program.

[44 FR 28803, May 17, 1979; 44 FR 45137, Aug. 1, 1979, as amended at 47 
FR 57281, Dec. 23, 1982]



Sec.302.20  Separation of cash handling and accounting functions.

    The State plan shall provide that the following requirements and 
criteria to separate the cash handling and accounting functions are in 
effect.

[[Page 236]]

    (a) IV-D responsibility. The IV-D agency will maintain methods of 
administration designed to assure that persons responsible for handling 
cash receipts of support do not participate in accounting or operating 
functions which would permit them to conceal in the accounting records 
the misuse of support receipts. Such methods of administration shall 
follow generally recognized accounting standards.
    (b) Scope. The requirement in paragraph (a) of this section applies 
to persons who participate in the collection, accounting or operating 
functions which include:
    (1) IV-D agency employees and employees of any other State or local 
agency to which IV-D functions have been delegated.
    (2) Employees of a court or law enforcement official performing 
under a cooperative agreement with the IV-D agency.
    (3) Employees of any private or governmental entity from which the 
IV-D agency purchases services.
    (c) Exception. The Regional Office may grant a waiver to sparsely 
populated geographical areas, where the requirements in paragraph (a) of 
this section would necessitate the hiring of unreasonable numbers of 
additional staff. The IV-D agency must document such administrative 
infeasibility and provide an alternative system of controls that 
reasonably insures that support collections will not be misused.

[44 FR 28803, May 17, 1979, as amended at 47 FR 57281, Dec. 23, 1982]



Sec.302.30  Publicizing the availability of support enforcement 
services.

    Effective October 1, 1985, the State plan shall provide that the 
State will publicize regularly and frequently the availability of 
support enforcement services under the plan through public service 
announcements. Publicity must include information on any application 
fees which may be imposed for such services and a telephone number or 
postal address where further information may be obtained.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19647, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec.302.31  Establishing paternity and securing support.

    The State plan shall provide that:
    (a) The IV-D agency will undertake:
    (1) In the case of a child born out of wedlock with respect to whom 
an assignment as defined in Sec.301.1 of this chapter is effective, to 
establish the paternity of such child; and
    (2) In the case of any individual with respect to whom an assignment 
as defined in Sec.301.1 of this chapter is effective, to secure 
support for a child or children from any person who is legally liable 
for such support, using State laws regarding intrastate and interstate 
establishment and enforcement of support obligations. Effective October 
1, 1985, this includes securing support for a spouse or former spouse 
who is living with the child or children, but only if a support 
obligation has been established for that spouse and the child support 
obligation is being enforced under the title IV-D State plan.
    (3) When assigned medical support payments are received and retained 
by a non-IV-A Medicaid recipient, the IV-D agency shall notify the 
Medicaid agency whenever it discovers that directly received medical 
support payments are being, or have been, retained.
    (b) Upon receiving notice of a claim of good cause for failure to 
cooperate, the IV-D agency will suspend all activities to establish 
paternity or secure support until notified of a final determination by 
the appropriate agency.
    (c) The IV-D agency will not undertake to establish paternity or 
secure support in any case for which it has received notice that there 
has been a finding of good cause unless there has been a determination 
that support enforcement may proceed without the participation of the 
caretaker or other relative. If there has been such a determination, the 
IV-D agency will undertake to establish paternity or secure

[[Page 237]]

support but may not involve the caretaker or other relative in such 
undertaking.

(Approved by the Office of Management and Budget under control numbers 
0960-0385 and 0970-0107)

[50 FR 19647, May 9, 1985, as amended at 51 FR 25526, July 15, 1986; 51 
FR 37731, Oct. 24, 1986; 56 FR 8003, Feb. 26, 1991; 64 FR 6247, Feb. 9, 
1999; 68 FR 25303, May 12, 2003]



Sec.302.32  Collection and disbursement of support payments by the 
IV-D agency.

    The State plan shall provide that:
    (a) The IV-D agency must establish and operate a State Disbursement 
Unit (SDU) for the collection and disbursement of payments under support 
orders--
    (1) In all cases being enforced under the State IV-D plan; and
    (2) In all cases not being enforced under the State IV-D plan in 
which the support order is initially issued in the State on or after 
January 1, 1994, and in which the income of the noncustodial parent is 
subject to withholding in accordance with section 466(a)(8)(B) of the 
Act.
    (b) Timeframes for disbursement of support payments by SDUs under 
section 454B of the Act.
    (1) In intergovernmental IV-D cases, amounts collected by the 
responding State on behalf of the initiating agency must be forwarded to 
the initiating agency within 2 business days of the date of receipt by 
the SDU in the responding State, in accordance with Sec.303.7(d)(6)(v) 
of this chapter.
    (2) Amounts collected by the IV-D agency on behalf of recipients of 
aid under the State's title IV-A or IV-E plan for whom an assignment 
under sections 408(a)(3) or 471(a)(17) of the Act is effective shall be 
disbursed by the SDU within the following timeframes:
    (i) Except as specified under paragraph (b)(2)(iv) of this section, 
if the SDU sends payment to the family (other than payments sent to the 
family from the State share of assigned support collections), the SDU 
must send these payments within 2 business days of the end of the month 
in which the payment was received by the SDU. Any payment passed through 
to the family from the State share of assigned support collections must 
be sent to the family within 2 business days of the date of receipt by 
the SDU.
    (ii) Except as specified under paragraph (b)(2)(iv) of this section, 
when the SDU sends collections to the family for the month after the 
month the family becomes ineligible for title IV-A, the SDU must send 
collections to the family within 2 business days of the date of receipt 
by the SDU.
    (iii) Except as specified under paragraph (b)(2)(iv) of this 
section, when the SDU sends collections to the IV-E foster care agency 
under Sec.302.52(b)(2) and (4) of this part, the SDU must send 
collections to the IV-E agency within 15 business days of the end of the 
month in which the support was received by the SUD.
    (iv) Collections as a result of Federal tax refund offset paid to 
the family or distributed in title IV-E foster care cases under Sec.
302.52(b)(4) of this part, must be sent to the title IV-A family or 
title IV-E agency, as appropriate, within 30 calendar days of the date 
of initial receipt by the title IV-D agency, unless State law requires a 
post-offset appeal process and an appeal is filed timely, in which case 
the SDU must send any payment to the title IV-A family or title IV-E 
agency within 15 calendar days of the date the appeal is resolved.
    (3)(i) Except as provided under paragraph (b)(3)(ii) of this 
section, amounts collected on behalf of individuals receiving services 
under Sec.302.33 of this part shall be disbursed by the SDU pursuant 
to section 457 of the Act, within 2 business days of receipt by the SDU.
    (ii) Collections due the family as a result of Federal tax refund 
offset must be sent to the family within 30 calendar days of the date of 
initial receipt in the title IV-D agency, except:
    (A) If State law requires a post-offset appeal process and an appeal 
is timely filed, in which case the SDU must send any payment to the 
family within 15 calendar days of the date the appeal is resolved; or
    (B) As provided in Sec.303.72(h)(5) of this chapter.

[64 FR 6247, Feb. 9, 1999, as amended at 68 FR 25303, May 12, 2003; 73 
FR 74919, Dec. 9, 2008; 81 FR 93561, Dec. 20, 2016]

[[Page 238]]



Sec.302.33  Services to individuals not receiving title IV-A assistance.

    (a) Availability of Services. (1) The State plan must provide that 
the services established under the plan shall be made available to any 
individual who:
    (i) Files an application for the services with the IV-D agency. In 
an interstate case, only the initiating State may require an application 
under this section; or
    (ii) Is a non-IV-A Medicaid recipient; or
    (iii) Has been receiving IV-D services and is no longer eligible for 
assistance under the title IV-A, IV-E foster care, and Medicaid program.
    (2) The State may not require an application, other request for 
services or an application fee from any individual who is eligible to 
receive services under paragraphs (a)(1) (ii) and (iii) of this section. 
If an individual receiving services under paragraph (a)(1)(iii) of this 
section refuses services in response to a notice under paragraph (a)(4) 
of this section, and subsequently requests services, that individual 
must file an application and pay an application fee.
    (3) The State may not charge fees or recover costs from any 
individual who is eligible to receive services under paragraph 
(a)(1)(ii) of this section.
    (4) Whenever a family is no longer eligible for assistance under the 
State's title IV-A and Medicaid programs, the IV-D agency must notify 
the family, within 5 working days of the notification of ineligibility, 
that IV-D services will be continued unless the family notifies the IV-D 
agency that it no longer wants services but instead wants to close the 
case. This notice must inform the family of the benefits and 
consequences of continuing to receive IV-D services, including the 
available services and the State's fees, cost recovery, and distribution 
policies. This requirement to notify the family that services will be 
continued, unless the family notifies the IV-D agency to the contrary, 
also applies when a child is no longer eligible for IV-E foster care, 
but only in those cases that the IV-D agency determines that such 
services and notice would be appropriate.
    (5) The State must provide all appropriate IV-D services, in 
addition to IV-D services related to securing medical support, to all 
individuals who are eligible to receive services under paragraph 
(a)(1)(ii) of this section unless the individual notifies the State that 
only IV-D services related to securing medical support are wanted.
    (6) The State may elect in its State plan to allow an individual 
under paragraph (a)(1)(i) of this section who files an application to 
request paternity-only limited services in an intrastate case. If the 
State chooses this option, the State must define how this process will 
be implemented and must establish and use procedures, including domestic 
violence safeguards, which are reflected in a record, that specify when 
paternity-only limited services will be available. An application will 
be considered full-service unless the parent specifically applies for 
paternity-only limited services in accordance with the State's 
procedures. If one parent specifically requests paternity-only limited 
services and the other parent requests full services, the case will 
automatically receive full services. The State will be required to 
charge the application and service fees required under paragraphs (c) 
and (e) of this section for paternity-only limited services, and may 
recover costs in accordance with paragraph (d) of this section if the 
State has chosen this option in its State plan. The State must provide 
the applicant an application form with information on the availability 
of paternity-only limited services, consequences of selecting this 
limited service, and an explanation that the case will be closed when 
the limited service is completed.
    (b) Definitions. For purposes of this section:
    Applicant's income means the disposable income available for the 
applicant's use under State law.
    (c) Application fee. (1) Beginning October 1, 1985, the State plan 
must provide that an application fee will be charged for each individual 
who applies for services under this section. Under this paragraph:
    (i) The State shall collect the application fee from the individual 
applying for IV-D services or pay the application fee out of State 
funds.

[[Page 239]]

    (ii) The State may recover the application fee from the noncustodial 
parent who owes a support obligation to a non-IV-A family on whose 
behalf the IV-D agency is providing services and repay it to the 
applicant or itself.
    (iii) State funds used to pay an application fee are not program 
expenditures under the State plan but are program income under Sec.
304.50 of this chapter.
    (iv) Any application fee charged must be uniformly applied on a 
statewide basis and must be:
    (A) A flat dollar amount not to exceed $25 (or such higher or lower 
amount as the Secretary may determine to be appropriate for any fiscal 
year to reflect increases or decreases in administrative costs); or
    (B) An amount based on a fee schedule not to exceed the flat dollar 
amount specified in paragraph (c)(2)(iv)(A) of this section. The fee 
schedule must be based on the applicant's income.
    (v) The State may allow the jurisdiction that collects support for 
the State under this part to retain any application fee collected under 
this section.
    (2) In an interstate case, the application fee is charged by the 
State where the individual applies for services under this section.
    (d) Recovery of costs. (1) The State may elect in its State plan to 
recover any costs incurred in excess of any fees collected to cover 
administrative costs under the IV-D State plan. A State which elects to 
recover costs shall collect on a case by case basis either excess actual 
or standardized costs:
    (i) From the individual who owes a support obligation to a non-IV-A 
family on whose behalf the IV-D agency is providing services under this 
section; or
    (ii) From the individual who is receiving IV-D services under 
paragraph (a)(1) (i) or (iii) of this section, either directly or from 
the support collected on behalf of the individual, but only if the State 
has in effect a procedure for informing all individuals authorized 
within the State to establish an obligation for support that the State 
will recover costs from the individual receiving IV-D services under 
paragraphs (a)(1) (i) and (iii) of this section.
    (2) A State that recovers standardized costs under paragraph (d)(1) 
of this section shall develop a methodology, which is reflected in a 
record, to determine standardized costs which are as close to actual 
costs as is possible. This methodology must be made available to any 
individual upon request.
    (3) The IV-D agency shall not treat any amount collected from the 
individual as a recovery of costs under paragraph (d)(1)(i) of this 
section except amounts which exceed the current support owed by the 
individual under the obligation.
    (4) If a State elects to recover costs under paragraph (d)(1)(ii) of 
this section, the IV-D agency may attempt to seek reimbursement from the 
individual who owes a support obligation for any costs paid by the 
individual who is receiving IV-D services and pay all amounts reimbursed 
to the individual who is receiving IV-D services.
    (5) If a State elects to recover costs under this section, the IV-D 
agency must notify, consistent with the option selected, either the 
individual who is receiving IV-D services under paragraphs (a)(1) (i) or 
(iii) of this section, or the individual who owes a support obligation 
that such recovery will be made. In an interstate case, the IV-D agency 
where the case originated must notify the individual receiving IV-D 
services of the States that recover costs.
    (6) The IV-D agency must notify the IV-D agencies in all other 
States if it recovers costs from the individual receiving IV-D services.
    (e) Annual collection fee. (1) A State must impose in, and report 
for, a Federal fiscal year an annual fee of $35 for each case if there 
is an individual in the case to whom IV-D services are provided and:
    (i) For whom the State has collected and disbursed to the family at 
least $550 of support in that year; and
    (ii) No individual in the case has received assistance under a 
former State AFDC program, assistance as defined in Sec.260.31 under a 
State TANF program, or assistance as defined in Sec.286.10 under a 
Tribal TANF program.

[[Page 240]]

    (2) The State must impose the annual $35 fee in international cases 
under section 454(32) of the Act in which the criteria for imposition of 
the annual $35 fee under paragraph (1) of this section are met.
    (3) For each Federal fiscal year, after the first $550 of support is 
collected and disbursed to the family, the fee must be collected by one 
or more of the following methods:
    (i) Retained by the State from support collected in cases subject to 
the fee in accordance with distribution requirements in Sec.
302.51(a)(5) of this part, except that no cost will be assessed for such 
services against:
    (A) A foreign obligee in an international case receiving IV-D 
services pursuant to section 454(32)(C) of the Act; and
    (B) An individual who is required to cooperate with the IV-D program 
as a condition of Food Stamp eligibility as defined at Sec.273.11(o) 
and (p) of title 7;
    (ii) Paid by the individual applying for services under section 
454(4)(A)(ii) of the Act and implementing regulations in this section, 
provided that the individual is not required to cooperate with the IV-D 
program as a condition of Food Stamp eligibility as defined at Sec.
273.11(o) and (p) of title 7;
    (iii) Recovered from the noncustodial parent, provided that the 
noncustodial parent is not an individual required to cooperate with the 
IV-D program as a condition of Food Stamp eligibility as defined at 
Sec.273.11(o) and (p) of title 7; or
    (iv) Paid by the State out of its own funds.
    (4) The State must report, in accordance with Sec.302.15 of this 
part and instructions issued by the Secretary, the total amount of 
annual $35 fees imposed under this section for each Federal fiscal year 
as program income, regardless of which method or methods are used under 
paragraph (3) of this section.
    (5) State funds used to pay the annual $35 fee shall not be 
considered administrative costs of the State for the operation of the 
title IV-D plan, and all annual $35 fees imposed during a Federal fiscal 
year must be considered income to the program, in accordance with Sec.
304.50 of this chapter.

(Approved by the Office of Management and Budget under control numbers 
0960-0253, 0960-0385, 0960-0402, and 0970-0107)

[49 FR 36772, Sept. 19, 1984, as amended at 50 FR 19648, May 9, 1985; 51 
FR 37731, Oct. 24, 1986; 56 FR 8003, Feb. 26, 1991; 61 FR 67240, Dec. 
20, 1996; 73 FR 74919, Dec. 9, 2008; 81 FR 93561, Dec. 20, 2016; 85 FR 
35207, June 9, 2020]



Sec.302.34  Cooperative arrangements.

    The State plan shall provide that the State will enter into 
agreements, which are reflected in a record, for cooperative 
arrangements under Sec.303.107 of this chapter with appropriate 
courts; law enforcement officials, such as district attorneys, attorneys 
general, and similar public attorneys and prosecutors; corrections 
officials; and Indian Tribes or Tribal organizations. Such arrangements 
may be entered into with a single official covering more than one court, 
official, or agency, if the single official has the legal authority to 
enter into arrangements on behalf of the courts, officials, or agencies. 
Such arrangements shall contain provisions for providing courts and law 
enforcement officials with pertinent information needed in locating 
noncustodial parents, establishing paternity and securing support, to 
the extent that such information is relevant to the duties to be 
performed pursuant to the arrangement. They shall also provide for 
assistance to the IV-D agency in carrying out the program, and may 
relate to any other matters of common concern. Under matters of common 
concern, such arrangements may include provisions for the investigation 
and prosecution of fraud directly related to paternity and child and 
spousal support, and provisions to reimburse courts and law enforcement 
officials for their assistance.

[54 FR 30222, July 19, 1989, as amended at 61 FR 67240, Dec. 20, 1996; 
64 FR 6248, Feb. 9, 1999; 81 FR 93562, Dec. 20, 2016]



Sec.302.35  State parent locator service.

    The State plan shall provide as follows:
    (a) State PLS. The IV-D agency shall maintain a State PLS to provide 
locate information to authorized persons for authorized purposes.

[[Page 241]]

    (1) For IV-D cases and IV-D purposes by the IV-D agency. The State 
PLS shall access the Federal PLS and all relevant sources of information 
and records available in the State, and in other States as appropriate, 
for locating custodial parents, noncustodial parents, and children for 
IV-D purposes.
    (2) For authorized non-IV-D individuals and purposes. (i) The State 
PLS shall access and release information authorized to be disclosed 
under section 453(a)(2) and 453(j)(3) of the Act from the Federal PLS 
and, in accordance with State law, information from relevant in-State 
sources of information and records, as appropriate, for locating 
custodial parents, noncustodial parents, non-parent relatives, and 
children upon request of authorized individuals specified in paragraph 
(c) of this section, for authorized purposes specified in paragraph (d) 
of this section.
    (ii) The State PLS shall not release information from the 
computerized support enforcement system required under part 307 of this 
chapter, IRS information, or financial institution data match 
information, nor shall the State PLS forward a non-IV-D request to 
another State IV-D agency.
    (iii) The State PLS need not make subsequent location attempts if 
locate efforts fail to find the individual sought unless a new request 
is submitted.
    (b) Central State PLS requirement. The IV-D program shall maintain a 
central State PLS to submit requests to the Federal PLS.
    (c) Authorized persons. The State PLS shall accept requests for 
locate information only from the following authorized persons:
    (1) Any State or local agency providing child and spousal support 
services under the State plan, and any Tribal IV-D agency providing 
child and spousal support services under a Tribal plan approved under 45 
CFR part 309, provided the State and Tribe have in effect an 
intergovernmental agreement for the provision of Federal PLS services;
    (2) A court that has authority to issue an order or to serve as the 
initiating court in an action to seek an order against a noncustodial 
parent for the support and maintenance of a child, or any agent of such 
court;
    (3) The resident parent, legal guardian, attorney, or agent of a 
child who is not receiving assistance under title IV-A of the Act only 
if the individual:
    (i) Attests that the request is being made to obtain information on, 
or to facilitate the discovery of, any individual in accordance with 
section 453(a)(2) of the Act for the purpose of establishing parentage, 
establishing, setting the amount of, modifying, or enforcing child 
support obligations;
    (ii) Attests that any information obtained through the Federal or 
State PLS shall be used solely for these purposes and shall be otherwise 
treated as confidential;
    (iii) Attests that the requestor is the resident parent, legal 
guardian, attorney, or agent of a child not receiving assistance under 
title IV-A; and
    (iv) Pays the fee required for Federal PLS services under section 
453(e)(2) of the Act and Sec.303.70(f)(2)(i) of this chapter, if the 
State does not pay the fee itself. The State may also charge a fee to 
cover its costs of processing the request, which must be as close to 
actual costs as possible, so as not to discourage requests to use the 
Federal PLS. If the State itself pays the fee for use of the Federal PLS 
or the State PLS in a non-IV-D case, Federal financial participation is 
not available in those expenditures.
    (4) Authorized persons as defined in Sec.303.15 of this chapter in 
connection with parental kidnapping, child custody or visitation cases; 
or
    (5) A State agency that is administering a program operated under a 
State plan under titles IV-B or IV-E of the Act.
    (d) Authorized purposes for requests and scope of information 
provided. The State PLS shall obtain location information under this 
section only for the purpose specified in paragraphs (d)(1), (d)(2), 
(d)(3), and (d)(4) of this section.
    (1) To locate an individual with respect to a child in a IV-D, non-
IV-D, IV-B, or IV-E case. The State PLS shall locate individuals for the 
purpose of establishing parentage, or establishing, setting the amount 
of, modifying, or enforcing child support obligations or for

[[Page 242]]

determining who has or may have parental rights with respect to a child. 
For these purposes, only information in the Federal PLS or the State PLS 
may be provided. This information is limited to name, Social Security 
Number(s), most recent address, employer name and address, employer 
identification number, wages or other income from, and benefits of, 
employment, including rights to, or enrollment in, health care coverage, 
and asset or debt information.
    (2) To assist States in carrying out their responsibilities under 
title IV-D, IV-A, IV-B, and IV-E programs. In addition to the 
information that may be released pursuant to paragraph (d)(1) of this 
section, State PLS information may be disclosed to State IV-D, IV-A, IV-
B, and IV-E agencies for the purpose of assisting States to carry out 
their responsibilities to administer title IV-D, IV-A, IV-B, and IV-E 
programs, including information to locate an individual who is a child 
or a relative of a child in a IV-B or IV-E case. Information that may be 
disclosed about relatives of children involved in IV-B and IV-E cases is 
limited to name, Social Security Number(s), most recent address, 
employer name and address and employer identification number.
    (3) To locate an individual sought for the unlawful taking or 
restraint of a child or for child custody or visitation purposes. The 
State PLS shall locate individuals for the purpose of enforcing a State 
law with respect to the unlawful taking or restraint of a child or for 
making or enforcing a child custody or visitation determination as 
defined in section 463(d)(1) of the Act. This information is limited to 
most recent address and place of employment of a parent or child.
    (e) Locate information subject to disclosure. Subject to the 
requirements of this section and the privacy safeguards required under 
section 454(26) of the Act and the family violence indicators under 
section 307.11(f)(1)(x) of this part, the State PLS shall disclose the 
following information to authorized persons for authorized purposes,
    (1) Federal PLS information described in sections 453 and 463 of the 
Act; and
    (2) Information from in-state locate sources.

[73 FR 56443, Sept. 26, 2008, as amended at 75 FR 81906, Dec. 29, 2010]



Sec.302.36  Provision of services in intergovernmental IV-D cases.

    (a) The State plan shall provide that, in accordance with Sec.
303.7 of this chapter, the State will extend the full range of services 
available under its IV-D plan to:
    (1) Any other State;
    (2) Any Tribal IV-D program operating under Sec.309.65(a) of this 
chapter; and
    (3) Any country as defined in Sec.301.1 of this chapter.
    (b) The State plan shall provide that the State will establish a 
central registry for intergovernmental IV-D cases in accordance with the 
requirements set forth in Sec.303.7(b) of this chapter.

[75 FR 38641, July 2, 2010]



Sec.302.37  [Reserved]



Sec.302.38  Payments to the family.

    The State plan shall provide that any payment required to be made 
under Sec. Sec.302.32 and 302.51 to a family will be made directly to 
the resident parent, legal guardian, caretaker relative having custody 
of or responsibility for the child or children, judicially-appointed 
conservator with a legal and fiduciary duty to the custodial parent and 
the child, or alternate caretaker designated in a record by the 
custodial parent. An alternate caretaker is a nonrelative caretaker who 
is designated in a record by the custodial parent to take care of the 
children for a temporary time period.

[81 FR 93562, Dec. 20, 2016]



Sec.302.39  Standards for program operation.

    The State plan shall provide that the IV-D agency will comply with 
the standards for program operation and the organizational and staffing 
requirements prescribed by part 303 of this chapter.

[41 FR 55348, Dec. 20, 1976]

[[Page 243]]



Sec.302.40  [Reserved]



Sec.302.50  Assignment of rights to support.

    The State plan shall provide as follows:
    (a) An assignment of support rights, as defined in Sec.301.1 of 
this chapter, constitutes an obligation owed to the State by the 
individual responsible for providing such support. Such obligation shall 
be established by:
    (1) Order of a court of competent jurisdiction or of an 
administrative process; or
    (2) Except for obligations assigned under 42 CFR 433.146, other 
legal process as established by State laws, such as a legally 
enforceable and binding agreement.
    (b) The amount of the obligation described in paragraph (a) of this 
section shall be:
    (1) The amount specified in the order of a court of competent 
jurisdiction or administrative process which covers the assigned support 
rights.
    (2) If there is no court or administrative order, an amount 
determined in a record by the IV-D agency as part of the legal process 
referred to in paragraph (a)(2) of this section in accordance with the 
requirements of Sec.302.56.
    (c) The obligation described in paragraph (a) of this section shall 
be deemed for collection purposes to be collectible under all applicable 
State and local processes.
    (d) Any amounts which represent support payments collected from an 
individual responsible for providing support under the State plan shall 
reduce, dollar for dollar, the amount of his obligation under this 
section.
    (e) No portion of any amounts collected which represent an assigned 
support obligation defined under Sec.301.1 of this chapter may be used 
to satisfy a medical support obligation unless the court or 
administrative order designates a specific dollar amount for medical 
purposes.

[64 FR 6248, Feb. 9, 1999, as amended at 68 FR 25303, May 12, 2003; 81 
FR 93562, Dec. 20, 2016]



Sec.302.51  Distribution of support collections.

    The State plan shall provide as follows:
    (a)(1) For purposes of distribution in a IV-D case, amounts 
collected, except as provided under paragraphs (a)(3) and (5) of this 
section, shall be treated first as payment on the required support 
obligation for the month in which the support was collected and if any 
amounts are collected which are in excess of such amount, these excess 
amounts shall be treated as amounts which represent payment on the 
required support obligation for previous months.
    (2) In title IV-A and title IV-E foster care cases in which 
conversion to a monthly amount is necessary because support is ordered 
to be paid other than monthly, the IV-D agency may round off the 
converted amount to whole dollar amount for the purpose of distribution 
under this section and Sec.302.52 of this part.
    (3)(i) Except as provided in paragraph (a)(3)(ii), amounts collected 
through Federal tax refund offset must be distributed as arrearages in 
accordance with Sec.303.72 of this chapter, and section 457 of the 
Act;
    (ii) Effective October 1, 2009, or up to a year earlier at State 
option, amounts collected through Federal tax refund offset shall be 
distributed in accordance with Sec.303.72 of this chapter and the 
option selected under section 454(34) of the Act.
    (4)(i) Effective October 1, 1998 (or October 1, 1999 if applicable) 
except with respect to those collections addressed under paragraph 
(a)(3) of this section and except as specified under paragraph 
(a)(4)(ii) of this section, with respect to amounts collected and 
distributed under title IV-D of the Act, the date of collection for 
distribution purposes in all IV-D cases is the date of receipt in the 
State disbursement unit established under section 454B of the Act.
    (ii) If current support is withheld by an employer in the month when 
due, and received by the State in a month other than the month when due, 
the date of withholding may be deemed to be the date of collection.
    (iii) When the date of collection pursuant to this subparagraph is 
deemed to be the date the wage or other income was withheld, and the 
employer fails to report the date of withholding,

[[Page 244]]

the IV-D agency must reconstruct that date by contacting the employer or 
comparing actual amounts collected with the pay schedule specified in 
the court or administrative order.
    (5)(i) Except as provided in paragraph (a)(5)(ii), a State must pay 
to a family that has never received assistance under a program funded or 
approved under title IV-A or foster care under title IV-E of the Act and 
to an individual who is not required to cooperate with the IV-D program 
as a condition of Food Stamp eligibility as defined at Sec.273.11(o) 
and (p) of title 7 the portion of the amount collected that remains 
after withholding any annual $35 fee that the State imposes under Sec.
302.33(e) of this part.
    (ii) If a State charges the noncustodial parent the annual $35 fee 
under Sec.302.33(e) of this part, the State may retain the $35 fee 
from the support collected after current support and any payment on 
arrearages for the month under a court or administrative order have been 
disbursed to the family provided the noncustodial parent is not required 
to cooperate with the IV-D program as a condition of Food Stamp 
eligibility as defined at Sec.273.11(o) and (p) of title 7.
    (b) If an amount collected as support represents payment on the 
required support obligation for future months, the amount shall be 
applied to such future months. However, no such amounts shall be applied 
to future months unless amounts have been collected which fully satisfy 
the support obligation assigned under section 403(a)(8) of the Act for 
the current month and all past months.
    (c)(1) The amounts collected by the IV-D agency which represent 
specific dollar amounts designated in the support order for medical 
purposes that have been assigned to the State under 42 CFR 433.146 shall 
be forwarded to the Medicaid agency for distribution under 42 CFR 
433.154.
    (2) When a family ceases receiving assistance under the State's 
title XIX plan, the assignment of medical support rights under section 
1912 of the Act terminates, except for the amount of any unpaid medical 
support obligation that has accrued under such assignment. The IV-D 
agency shall attempt to collect any unpaid specific dollar amounts 
designated in the support order for medical purposes. Under this 
requirement, any medical support collection made by the IV-D agency 
under this paragraph shall be forwarded to the Medicaid agency for 
distribution under 42 CFR 433.154.

[64 FR 6248, Feb. 9, 1999, as amended at 68 FR 25303, May 12, 2003; 73 
FR 74920, Dec. 9, 2008; 85 FR 35207, June 9, 2020]



Sec.302.52  Distribution of support collected in Title IV-E foster
care maintenance cases.

    Effective October 1, 1984, the State plan shall provide as follows:
    (a) For purposes of distribution under this section, amounts 
collected in foster care maintenance cases shall be treated in 
accordance with the provisions of Sec.302.51(a) of this part.
    (b) The amounts collected as support by the IV-D agency under the 
State plan on behalf of children for whom the State is making foster 
care maintenance payments under the title IV-E State plan and for whom 
an assignment under section 471(a)(17) of the Act is effective shall be 
distributed as follows:
    (1) Any amount that is collected in a month which represents payment 
on the required support obligation for that month shall be retained by 
the State to reimburse itself for foster care maintenance payments. Of 
that amount retained by the State as reimbursement for that month's 
foster care maintenance payment, the State IV-D agency shall determine 
the Federal government's share so that the State may reimburse the 
Federal government to the extent of its participation in financing of 
the foster care maintenance payment.
    (2) If the amount collected is in excess of the monthly amount of 
the foster care maintenance payment but not more than the monthly 
support obligation, the State must pay the excess to the State agency 
responsible for supervising the child's placement and care under section 
472(a)(2) of the Act. The State agency must use the money in the manner 
it determines will serve the best interests of the child including:
    (i) Setting aside amounts for the child's future needs; or

[[Page 245]]

    (ii) Making all or part of the amount available to the person 
responsible for meeting the child's daily needs to be used for the 
child's benefit.
    (3) If the amount collected exceeds the amount required to be 
distributed under paragraphs (b) (1) and (2) of this section, but not 
the total unreimbursed foster care maintenance payments provided under 
title IV-E or unreimbursed assistance payments provided under title IV-
A, the State shall retain the excess to reimburse itself for these 
payments. If past assistance or foster care maintenance payments are 
greater than the total support obligation owed, the maximum amount the 
State may retain as reimbursement for such payments is the amount of 
such obligation. If amounts are collected which represent the required 
support obligation for periods prior to the first month in which the 
family received assistance under the State's title IV-A plan or foster 
care maintenance payments under the State's title IV-E plan, such 
amounts may be retained by the State to reimburse the difference between 
such support obligation and such payments. Of the amounts retained by 
the State, the State IV-D agency shall determine the Federal 
government's share of the amount so that the State may reimburse the 
Federal government to the extent of its participation in financing the 
assistance payments and foster care maintenance payments.
    (4) Any balance shall be paid to the State agency responsible for 
supervising the child's placement and care and shall be used to serve 
the best interests of the child as specified in paragraph (b)(2) of this 
section.
    (5) If an amount collected as support represents payment on the 
required support obligation for future months, the amount shall be 
applied to those future months. However, no amounts shall be applied to 
future months unless amounts have been collected which fully satisfy the 
support obligation assigned under sections 408(a)(3) and 471 (a)(17) of 
the Act for the current month and all past months.
    (c) When a State ceases making foster care maintenance payments 
under the State's title IV-E State plan, the assignment of support 
rights under section 471(a)(17) of the Act terminates except for the 
amount of any unpaid support that has accrued under the assignment. The 
IV-D agency shall attempt to collect such unpaid support. Under this 
requirement, any collection made by the State under this paragraph must 
be distributed in accordance with paragraph (b)(3) of this section.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19648, May 9, 1985, as amended at 50 FR 31719, Aug. 6, 1985; 51 
FR 37731, Oct. 24, 1986; 64 FR 6249, Feb. 9, 1999]



Sec.302.54  Notice of collection of assigned support.

    (a) Effective January 1, 1993, the State plan shall provide that the 
State has in effect procedures for issuing notices of collections as 
follows:
    (1) The IV-D agency must provide a monthly notice of the amount of 
support payments collected for each month to individuals who have 
assigned rights to support under section 408(a)(3) of the Act, unless no 
collection is made in the month, the assignment is no longer in effect 
and there are no longer any assigned arrearages, or the conditions in 
paragraph (b) of this section are met.
    (2) The monthly notice must list separately payments collected from 
each noncustodial parent when more than one noncustodial 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.
    (b)(1) The Office may grant a waiver to permit a State to provide 
quarterly, rather than monthly, notices, if the State:
    (i) Until September 30, 1997, does not have an automated system that 
performs child support enforcement activities consistent with Sec.
302.85 or has an automated system that is unable to generate monthly 
notices; or
    (ii) Uses a toll-free automated voice response system which provides 
the information required under paragraph (a) of this section.
    (2) A quarterly notice must be provided in accordance with 
conditions set forth in paragraph (a)(1) of this section

[[Page 246]]

and such notice must contain the information set forth in paragraph 
(a)(2) of this section.

[57 FR 30681, July 10, 1992, as amended at 61 FR 67241, Dec. 20, 1996; 
64 FR 6249, Feb. 9, 1999; 68 FR 25303, May 12, 2003]



Sec.302.55  Incentive payments to States and political subdivisions.

    Effective October 1, 1985, in order for the State to be eligible to 
receive any incentive payments under Sec.304.12 and part 305 of this 
chapter, the State plan shall provide that, if one or more political 
subdivisions of the State participate in the costs of carrying out the 
activities under the State plan during any period, each such subdivision 
shall be entitled to receive an appropriate share of any incentive 
payments made to the State for such period, as determined by the State 
in accordance with Sec.303.52 of this chapter, taking into account the 
efficiency and effectiveness of the political subdivision in carrying 
out the activities under the State plan.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19649, May 9, 1985; 50 FR 23958, June 7, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 54 FR 32309, Aug. 4, 1989; 65 FR 82208, Dec. 
27, 2000]



Sec.302.56  Guidelines for setting child support orders.

    (a) Within 1 year after completion of the State's next quadrennial 
review of its child support guidelines, that commences more than 1 year 
after publication of the final rule, in accordance with Sec.302.56(e), 
as a condition of approval of its State plan, the State must establish 
one set of child support guidelines by law or by judicial or 
administrative action for setting and modifying child support order 
amounts within the State that meet the requirements in this section.
    (b) The State must have procedures for making the guidelines 
available to all persons in the State.
    (c) The child support guidelines established under paragraph (a) of 
this section must at a minimum:
    (1) Provide that the child support order is based on the 
noncustodial parent's earnings, income, and other evidence of ability to 
pay that:
    (i) Takes into consideration all earnings and income of the 
noncustodial parent (and at the State's discretion, the custodial 
parent);
    (ii) Takes into consideration the basic subsistence needs of the 
noncustodial parent (and at the State's discretion, the custodial parent 
and children) who has a limited ability to pay by incorporating a low-
income adjustment, such as a self-support reserve or some other method 
determined by the State; and
    (iii) If imputation of income is authorized, takes into 
consideration the specific circumstances of the noncustodial parent (and 
at the State's discretion, the custodial parent) to the extent known, 
including such factors as the noncustodial parent's assets, residence, 
employment and earnings history, job skills, educational attainment, 
literacy, age, health, criminal record and other employment barriers, 
and record of seeking work, as well as the local job market, the 
availability of employers willing to hire the noncustodial parent, 
prevailing earnings level in the local community, and other relevant 
background factors in the case.
    (2) Address how the parents will provide for the child's health care 
needs through private or public health care coverage and/or through cash 
medical support;
    (3) Provide that incarceration may not be treated as voluntary 
unemployment in establishing or modifying support orders; and
    (4) Be based on specific descriptive and numeric criteria and result 
in a computation of the child support obligation.
    (d) The State must include a copy of the child support guidelines in 
its State plan.
    (e) The State must review, and revise, if appropriate, the child 
support guidelines established under paragraph (a) of this section at 
least once every four years to ensure that their application results in 
the determination of appropriate child support order amounts. The State 
shall publish on the internet and make accessible to the public all 
reports of the guidelines reviewing body, the membership of the 
reviewing

[[Page 247]]

body, the effective date of the guidelines, and the date of the next 
quadrennial review.
    (f) The State must provide that there will be a rebuttable 
presumption, in any judicial or administrative proceeding for the 
establishment and modification of a child support order, that the amount 
of the order which would result from the application of the child 
support guidelines established under paragraph (a) of this section is 
the correct amount of child support to be ordered.
    (g) A written finding or specific finding on the record of a 
judicial or administrative proceeding for the establishment or 
modification of a child support order that the application of the child 
support guidelines established under paragraph (a) of this section would 
be unjust or inappropriate in a particular case will be sufficient to 
rebut the presumption in that case, as determined under criteria 
established by the State. Such criteria must take into consideration the 
best interests of the child. Findings that rebut the child support 
guidelines shall state the amount of support that would have been 
required under the guidelines and include a justification of why the 
order varies from the guidelines.
    (h) As part of the review of a State's child support guidelines 
required under paragraph (e) of this section, a State must:
    (1) Consider economic data on the cost of raising children, labor 
market data (such as unemployment rates, employment rates, hours worked, 
and earnings) by occupation and skill-level for the State and local job 
markets, the impact of guidelines policies and amounts on custodial and 
noncustodial parents who have family incomes below 200 percent of the 
Federal poverty level, and factors that influence employment rates among 
noncustodial parents and compliance with child support orders;
    (2) Analyze case data, gathered through sampling or other methods, 
on the application of and deviations from the child support guidelines, 
as well as the rates of default and imputed child support orders and 
orders determined using the low-income adjustment required under 
paragraph (c)(1)(ii) of this section. The analysis must also include a 
comparison of payments on child support orders by case characteristics, 
including whether the order was entered by default, based on imputed 
income, or determined using the low-income adjustment required under 
paragraph (c)(1)(ii). The analysis of the data must be used in the 
State's review of the child support guidelines to ensure that deviations 
from the guidelines are limited and guideline amounts are appropriate 
based on criteria established by the State under paragraph (g); and
    (3) Provide a meaningful opportunity for public input, including 
input from low-income custodial and noncustodial parents and their 
representatives. The State must also obtain the views and advice of the 
State child support agency funded under title IV-D of the Act.

[81 FR 93562, Dec. 20, 2016]



Sec.302.60  Collection of past-due support from Federal tax refunds.

    The State plan shall provide that:
    (a) The IV-D agency has in effect procedures necessary to obtain 
payment of past-due support from Federal tax refunds as set forth in 
section 464 of the Act, Sec.303.72 of this chapter, and regulations of 
the Internal Revenue Service at 26 CFR 304.6402-1; and
    (b) The IV-D agency shall take the steps necessary to implement and 
use these procedures.

(Approved by the Office of Management and Budget under control number 
0960-0253)

[47 FR 7428, Feb. 19, 1982]



Sec.302.65  Withholding of unemployment compensation.

    The State plan shall provide that the requirements of this section 
are met.
    (a) Definitions. When used in this section:
    Legal process means a writ, order, summons or other similar process 
in the nature of a garnishment, which is issued by a court of competent 
jurisdiction or by an authorized official pursuant to an order of such 
court or pursuant to State or local law.
    State workforce agency or SWA means the State agency charged with 
the administration of the State unemployment compensation laws in 
accordance with title III of the Act.

[[Page 248]]

    Unemployment compensation means any compensation payable under State 
unemployment compensation law (including amounts payable in accordance 
with agreements under any Federal unemployment compensation law). It 
includes extended benefits, unemployment compensation for Federal 
employees, unemployment compensation for ex-servicemen, trade 
readjustment allowances, disaster unemployment assistance, and payments 
under the Redwood National Park Expansion Act.
    (b) Agreement. The State IV-D agency shall enter into an agreement, 
which is reflected in a record, with the SWA in its State for the 
purpose of withholding unemployment compensation from individuals with 
unmet support obligations being enforced by the IV-D agency. The IV-D 
agency shall agree only to a withholding program that it expects to be 
cost effective and to reimbursement for the SWA's actual, incremental 
costs of providing services to the IV-D agency.
    (c) Functions to be performed by the IV-D agency. The IV-D agency 
shall:
    (1) Determine periodically from information provided by the SWA 
under section 508 of the Unemployment Compensation Amendments of 1976 
whether individuals applying for or receiving unemployment compensation 
owe support obligations that are being enforced by the IV-D agency.
    (2) Enforce unmet support obligations by arranging for the 
withholding of unemployment compensation based on a voluntary agreement 
with the individual who owes the support, or in appropriate cases which 
meet the case selection criteria established under paragraph (c)(3), 
through legal process pursuant to State or local law. If a voluntary 
agreement is obtained, the IV-D agency must give the SWA a copy of the 
voluntary agreement.
    (3) Establish and use criteria, which are reflected in a record, for 
selecting cases to pursue via the withholding of unemployment 
compensation for support purposes. These criteria must be designed to 
ensure maximum case selection and minimal discretion in the selection 
process.
    (4) Provide a receipt at least annually to an individual who 
requests a receipt for the support paid via the withholding of 
unemployment compensation, if receipts are not provided through other 
means.
    (5) Maintain direct contact with the SWA in its State:
    (i) By processing cases through the SWA in its own State or through 
IV-D agencies in other States; and
    (ii) By receiving all amounts withheld by the SWA in its own State 
and forwarding any amounts withheld on behalf of IV-D agencies in other 
States to those agencies.
    (6) Reimburse the administrative costs incurred by the SWA that are 
actual, incremental costs attributable to the process of withholding 
unemployment compensation for support purposes insofar as these costs 
have been agreed upon by the SWA and the IV-D agency.
    (7) Review and document, at least annually, program operations, 
including case selection criteria established under paragraph (c)(3), 
and costs of the withholding process versus the amounts collected and, 
as necessary, modify procedures and renegotiate the services provided by 
the SWA to improve program and cost effectiveness.

[49 FR 8927, Mar. 9, 1984, as amended at 68 FR 25303, May 12, 2003; 81 
FR 93563, Dec. 20, 2016]



Sec.302.70  Required State laws.

    (a) Required Laws. The State plan shall provide that, in accordance 
with sections 454(20) and 466 of the Act and part 303 of this chapter, 
the State has in effect laws providing for, and has implemented 
procedures to improve, program effectiveness:
    (1) Procedures for carrying out a program of withholding under which 
new or existing support orders are subject to the State law governing 
withholding so that a portion of the noncustodial parent's wages may be 
withheld, in accordance with the requirements set forth in Sec.303.100 
of this chapter;
    (2) Expedited processes to establish paternity and to establish and 
enforce child support orders having the same force and effect as those 
established through full judicial process, in accordance with the 
requirements set forth in Sec.303.101 of this chapter;
    (3) Procedures for obtaining overdue support from State income tax 
refunds on behalf of individuals receiving IV-D

[[Page 249]]

services, in accordance with the requirements set forth in Sec.303.102 
of this chapter;
    (4) Procedures for the imposition of liens against the real and 
personal property of noncustodial parents who owe overdue support;
    (5)(i) Procedures for the establishment of paternity for any child 
at least to the child's 18th birthday, including any child for whom 
paternity has not yet been established and any child for whom a 
paternity action was previously dismissed under a statute of limitations 
of less than 18 years; and
    (ii) Effective November 1, 1989, procedures under which the State is 
required (except in cases where the individual involved has been found 
under section 454(29) of the Act to have good cause for refusing to 
cooperate or if, in accordance with Sec.303.5(b) of this chapter the 
IV-D agency has determined that it would not be in the best interest of 
the child to establish paternity in a case involving incest or forcible 
rape, or in any case in which legal proceedings for adoption are 
pending) to require the child and all other parties in a contested 
paternity case to submit to genetic tests upon the request of any such 
party, in accordance with Sec.303.5 (d) and (e) of this chapter.
    (iii) Procedures for a simple civil process for voluntarily 
acknowledging paternity under which the State must provide that, before 
a mother and putative father can sign a voluntary acknowledgment of 
paternity, the mother and the putative father must be given notice, 
orally or through video or audio equipment, and in writing, of the 
alternatives to, the legal consequences of, and the rights (including 
any rights, if a parent is a minor, due to minority status) and 
responsibilities of acknowledging paternity, and ensure that due process 
safeguards are afforded. Such procedures must include:
    (A) A hospital-based program in accordance with Sec.303.5(g) for 
the voluntary acknowledgment of paternity during the period immediately 
before or after the birth of a child to an unmarried mother, and a 
requirement that all public and private birthing hospitals participate 
in the hospital-based program defined in Sec.303.5(g)(2); and
    (B) A process for voluntary acknowledgment of paternity in 
hospitals, State birth record agencies, and in other entities designated 
by the State and participating in the State's voluntary paternity 
establishment program; and
    (C) A requirement that the procedures governing hospital-based 
programs and State birth record agencies must also apply to other 
entities designated by the State and participating in the State's 
voluntary paternity establishment program, including the use of the same 
notice provisions, the same materials, the same evaluation methods, and 
the same training for the personnel of these other entities providing 
voluntary paternity establishment services.
    (iv) Procedures under which the voluntary acknowledgment of 
paternity creates a rebuttable or, at the option of the State, 
conclusive presumption of paternity, and under which such voluntary 
acknowledgment is admissible as evidence of paternity;
    (v) Procedures which provide that any objection to genetic testing 
results must be made in writing within a specified number of days before 
any hearing at which such results may be introduced into evidence; and 
if no objection is made, a report of the test results, which is 
reflected in a record, is admissible as evidence of paternity without 
the need for foundation testimony or other proof of authenticity or 
accuracy;
    (vi) Procedures which create a rebuttable or, at the option of the 
State, conclusive presumption of paternity upon genetic testing results 
indicating a threshold probability of the alleged father being the 
father of the child;
    (vii) Procedures under which a voluntary acknowledgment must be 
recognized as a basis for seeking a support order without requiring any 
further proceedings to establish paternity; and
    (viii) Procedures requiring a default order to be entered in a 
paternity case upon a showing that process was served on the defendant 
in accordance with State law, that the defendant failed to respond to 
service in accordance with State procedures, and any additional showing 
required by State law.

[[Page 250]]

    (6) Procedures which require that a noncustodial parent give 
security, post a bond, or give some other guarantee to secure payment of 
support, in accordance with the procedures set forth in Sec.303.104 of 
this chapter;
    (7) Procedures for making information regarding the amount of 
overdue support owed by a noncustodial parent available to consumer 
reporting agencies;
    (8) Procedures under which all child support orders which are issued 
or modified in the State will include provision for withholding from 
income, in order to assure that withholding as a means of collecting 
child support is available if arrearages occur without the necessity of 
filing an application for services under Sec.302.33, in accordance 
with Sec.303.100(g) of this chapter.
    (9) Procedures which require that any payment or installment of 
support under any child support order, whether ordered through the State 
judicial system or through the expedited processes required by paragraph 
(a)(2) of this section, is (on and after the date it is due):
    (i) A judgment by operation of law, with the full force, effect, and 
attributes of a judgment of the State, including the ability to be 
enforced;
    (ii) Entitled as a judgment to full faith and credit in such State 
and in any other State; and
    (iii) Not subject to retroactive modification by such State or by 
any other State, except as provided in Sec.303.106(b).
    (10) Procedures for the review and adjustment of child support 
orders in accordance with Sec.303.8(b) of this chapter.
    (11) Procedures under which the State must give full faith and 
credit to a determination of paternity made by any other State, whether 
established through voluntary acknowledgment or through administrative 
or judicial processes.
    (b) A State need not apply a procedure required under paragraphs (a) 
(3), (4), (6) and (7) of this section in an individual case if the State 
determines that it is not appropriate using guidelines generally 
available to the public which take into account the payment record of 
the noncustodial parent, the availability of other remedies, and other 
relevant considerations. The guidelines may not determine a majority of 
cases in which no other remedy is being used to be inappropriate.
    (c) State laws enacted under this section must give States 
sufficient authority to comply with the requirements of Sec. Sec.
303.100 through 303.102 and Sec.303.104 of this chapter.
    (d)(1) Exemption. A State may apply for an exemption from any of the 
requirements of section 466 of the Act by the submittal of a request for 
exemption to the appropriate Regional Office.
    (2) Basis for granting exemption. The Secretary will grant a State, 
or political subdivision in the case of section 466(a)(2) of the Act, an 
exemption from any of the requirements of paragraph (a) of this section 
for a period not to exceed 5 years if the State demonstrates that 
compliance would not increase the effectiveness and efficiency of its 
Child Support Enforcement program. Demonstration of the program's 
efficiency and effectiveness must be shown by actual, or, if actual is 
not available, estimated data pertaining to caseloads, processing times, 
administrative costs, and average support collections or such other 
actual or estimated data as the Office may request. The State must 
demonstrate to the satisfaction of the Secretary that the program's 
effectiveness would not improve by using these procedures. Disapproval 
of a request for exemption is not subject to appeal.
    (3) Review of exemption. The exemption is subject to continuing 
review by the Secretary and may be terminated upon a change in 
circumstances or reduced effectiveness in the State or political 
subdivision, if the State cannot demonstrate that the changed 
circumstances continue to warrant an exemption in accordance with this 
section.
    (4) Request for extension. The State must request an extension of 
the exemption by submitting current data in accordance with paragraph 
(d)(2) of this section 90 days prior to the end of the exemption period 
granted under paragraph (d)(2) of this section.
    (5) When an exemption is revoked or an extension is denied. If the 
Secretary revokes an exemption or does not grant an extension of an 
exemption, the State must enact the appropriate laws

[[Page 251]]

and procedures to implement the mandatory practice by the beginning of 
the fourth month after the end of the first regular, special, budget or 
other session of the State's legislature which ends after the date the 
exemption is revoked or the extension is denied. If no State law is 
necessary, the State must establish and be using the procedure by the 
beginning of the fourth month after the date the exemption is revoked.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19649, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 54 
FR 15764, Apr. 19, 1989; 56 FR 8004, Feb. 26, 1991; 56 FR 22354, May 15, 
1991; 57 FR 30681, July 10, 1992; 57 FR 61581, Dec. 28, 1992; 59 FR 
66249, Dec. 23, 1994; 64 FR 6249, Feb. 9, 1999; 64 FR 11809, Mar. 10, 
1999; 68 FR 25303, May 12, 2003; 68 FR 53052, Sept. 9, 2003; 73 FR 
74920, Dec. 9, 2008; 81 FR 93563, Dec. 20, 2016]



Sec.302.75  Procedures for the imposition of late payment fees on
noncustodial parents who owe overdue support.

    (a) Effective September 1, 1984, the State plan may provide for 
imposition of late payment fees on noncustodial parents who owe overdue 
support.
    (b) If a State opts to impose late payment fees--
    (1) The late payment fee must be uniformly applied in an amount not 
less than 3 percent nor more than 6 percent of overdue support.
    (2) The fee shall accrue as arrearages accumulate and shall not be 
reduced upon partial payment of arrears. The fee may be collected only 
after the full amount of overdue support is paid and any requirements 
under State law for notice to the noncustodial parent have been met.
    (3) The collection of the fee must not directly or indirectly reduce 
the amount of current or overdue support paid to the individual to whom 
it is owed.
    (4) The late payment fee must be imposed in cases where there has 
been an assignment under section 408(a)(3) of the Act or section 
471(a)(17) of the Act or the IV-D agency is providing services under 
Sec.302.33 of this chapter.
    (5) The State may allow fees collected to be retained by the 
jurisdiction making the collection.
    (6) The State must reduce its expenditures claimed under the Child 
Support Enforcement program by any fees collected under this section in 
accordance with Sec.304.50 of this chapter.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19650, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 56 
FR 8004, Feb. 26, 1991; 64 FR 6249, Feb. 9, 1999; 68 FR 25303, May 12, 
2003]



Sec.302.80  Medical support enforcement.

    (a) The State plan may provide that the IV-D agency will secure and 
enforce medical support obligations under a cooperative agreement 
between the IV-D agency and the State Medicaid agency.
    (b) The State plan must provide that the IV-D agency shall secure 
medical support information and establish and enforce medical support 
obligations in accordance with the requirements contained in Sec. Sec.
303.30 and 303.31 of this chapter.

(Approved by the Office of Management and Budget under control number 
0960-0420)

[50 FR 41894, Oct. 16, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 
54 FR 32309, Aug. 4, 1989; 61 FR 67241, Dec. 20, 1996; 64 FR 6249, Feb. 
9, 1999]



Sec.302.85  Mandatory computerized support enforcement system.

    (a) General. The State plan shall provide that the State will have 
in effect a computerized support enforcement system:
    (1) This guide is available on the OCSE Web site; and
    (2) By October 1, 2000, which meets all the requirements of title 
IV-D of the Act enacted on or before the date of enactment of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 
Pub. L. 104-193, in accordance with Sec. Sec.307.5 and 307.11 of this 
chapter and the OCSE guideline referenced in paragraph (a)(1) of this 
section.
    (b) Waiver--(1) Request for waiver. The State may apply for a waiver 
of any condition for initial approval of an APD in Sec.307.15(b) of 
this chapter, or any system functional requirement in

[[Page 252]]

Sec.307.10 of this chapter, by the submission of a request for waiver 
under Sec.307.5 of this chapter.
    (2) Basis for granting waiver. The Secretary will grant a State a 
waiver if a State demonstrates that it has an alternative approach to 
APD requirements or an alternative system configuration, as defined in 
Sec.307.1 of this chapter, that enables the State, in accordance with 
part 305 of this chapter, to be in substantial compliance with all other 
requirements of this chapter; and either:
    (i) The waiver request meets the criteria set forth in section 
1115(c)(1), (2) and (3) of the Act; or
    (ii) The State provides assurances, which are reflected in a record, 
that steps will be taken to otherwise improve the State's Child Support 
Enforcement program.

[57 FR 47002, Oct. 14, 1992, as amended at 61 FR 67241, Dec. 20, 1996; 
63 FR 44814, Aug. 21, 1998; 81 FR 93563, Dec. 20, 2016]



PART 303_STANDARDS FOR PROGRAM OPERATIONS--Table of Contents



Sec.
303.0 Scope and applicability of this part.
303.1 Definitions.
303.2 Establishment of cases and maintenance of case records.
303.3 Location of noncustodial parents.
303.4 Establishment of support obligation.
303.5 Establishment of paternity.
303.6 Enforcement of support obligations.
303.7 Provision of services in interstate IV-D cases.
303.8 Review and adjustment of child support orders.
303.10 [Reserved]
303.11 Case closure criteria.
303.15 Agreements to use the Federal Parent Locator Service (PLS) in 
          parental kidnapping and child custody or visitation cases.
303.20 Minimum organizational and staffing requirements.
303.21 Safeguarding and disclosure of confidential information.
303.30 Securing medical support information.
303.31 Securing and enforcing medical support obligations.
303.32 National Medical Support Notice.
303.35 Administrative complaint procedure.
303.52 Pass-through of incentives to political subdivisions.
303.69 Requests by agents or attorneys of the United States for 
          information from the Federal Parent Locator Service (FPLS).
303.70 Requests by the State Parent Locator Service (SPLS) for 
          information from the Federal Parent Locator Service (FPLS).
303.71 [Reserved]
303.72 Requests for collection of past-due support by Federal tax refund 
          offset.
303.100 Procedures for income withholding.
303.101 Expedited processes.
303.102 Collection of overdue support by State income tax refund offset.
303.104 Procedures for posting security, bond or guarantee to secure 
          payment of overdue support.
303.106 Procedures to prohibit retroactive modification of child support 
          arrearages.
303.107 Requirements for cooperative arrangements.
303.108 Quarterly wage and unemployment compensation claims reporting to 
          the National Directory of New Hires.
303.109 Procedures for State monitoring, evaluation and reporting on 
          programs funded by Grants to States for Access and Visitation 
          Programs.

    Authority: 42 U.S.C. 651 through 658, 659a, 660, 663, 664, 666, 667, 
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), 1396(k), and 25 
U.S.C. 1603(12) and 1621e.

    Source: 40 FR 27164, June 26, 1975, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 303 appear at 64 FR 
6249, Feb. 9, 1999.



Sec.303.0  Scope and applicability of this part.

    This part prescribes:
    (a) The minimum organizational and staffing requirements the State 
IV-D agency must meet in carrying out the IV-D program, and
    (b) The standards for program operation which the IV-D agency must 
meet.

[41 FR 55348, Dec. 20, 1976, as amended at 54 FR 32309, Aug. 4, 1989]



Sec.303.1  Definitions.

    The definitions found in Sec.301.1 of this chapter also are 
applicable to this part.



Sec.303.2  Establishment of cases and maintenance of case records.

    (a) The IV-D agency must:
    (1) Make applications for child support services readily accessible 
to the public;
    (2) When an individual requests an application for IV-D services, 
provide an application to the individual on the

[[Page 253]]

day the individual makes a request in person, or send an application to 
the individual within no more than 5 working days of a request received 
by telephone or in a record. Information describing available services, 
the individual's rights and responsibilities, and the State's fees, cost 
recovery and distribution policies must accompany all applications for 
services and must be provided to title IV-A, Medicaid and title IV-E 
foster care applicants or recipients within no more than 5 working days 
of referral to the IV-D agency; and
    (3) Accept an application as filed on the day it and the application 
fee are received. An application is a record that is provided or used by 
the State which indicates that the individual is applying for child 
support enforcement services under the State's title IV-D program and is 
signed, electronically or otherwise, by the individual applying for IV-D 
services.
    (b) For all cases referred to the IV-D agency or applying for 
services under Sec.302.33 of this chapter, the IV-D agency must, 
within no more than 20 calendar days of receipt of referral of a case or 
filing of an application for services under Sec.302.33, open a case by 
establishing a case record and, based on an assessment of the case to 
determine necessary action:
    (1) Solicit necessary and relevant information from the custodial 
parent and other relevant sources and initiate verification of 
information, if appropriate; and
    (2) If there is inadequate location information to proceed with the 
case, request additional information or refer the case for further 
location attempts, as specified in Sec.303.3.
    (c) The case record must be supplemented with all information and 
documents pertaining to the case, as well as all relevant facts, dates, 
actions taken, contacts made and results in a case.

[54 FR 32309, Aug. 4, 1989, as amended at 81 FR 93563, Dec. 20, 2016]



Sec.303.3  Location of noncustodial parents in IV-D cases.

    (a) Definition. For purposes of this section, location means 
obtaining information concerning the physical whereabouts of the 
noncustodial parent, or the noncustodial parent's employer(s), other 
sources of income or assets, as appropriate, which is sufficient and 
necessary to take the next appropriate action in a IV-D case.
    (b) For all cases referred to the IV-D program for IV-D services 
because of an assignment of support rights or cases opened upon 
application for IV-D services under Sec.302.33 of this chapter, the 
IV-D program must attempt to locate all noncustodial parents or their 
sources of income and/or assets when location is needed to take a 
necessary action. Under this standard, the IV-D program must:
    (1) Use appropriate location sources such as the Federal PLS; 
interstate location networks; local officials and employees 
administering public assistance, general assistance, medical assistance, 
Supplemental Nutrition Assistance Program (SNAP) and social services 
(whether such individuals are employed by the State or a political 
subdivision); relatives and friends of the noncustodial parent; current 
or past employers; electronic communications and internet service 
providers; utility companies; the U.S. Postal Service; financial 
institutions; unions; corrections institutions; fraternal organizations; 
police, parole, and probation records if appropriate; and State agencies 
and departments, as authorized by State law, including those departments 
which maintain records of public assistance, wages and employment, 
unemployment insurance, income taxation, driver's licenses, vehicle 
registration, and criminal records and other sources;
    (2) Establish working relationships with all appropriate agencies in 
order to use locate resources effectively;
    (3) Within no more than 75 calendar days of determining that 
location is necessary, access all appropriate location sources and 
ensure that location information is sufficient to take the next 
appropriate action in a case;
    (4) Refer appropriate IV-D cases to the IV-D program of any other 
State, in accordance with the requirements of Sec.303.7 of this part. 
The IV-D program of such other State shall follow the procedures in 
paragraphs (b)(1) through (b)(3) of this section for such cases, as 
necessary, except that the responding

[[Page 254]]

State is not required to access the Federal PLS;
    (5) Repeat location attempts in cases in which previous attempts to 
locate noncustodial parents or sources of income and/or assets have 
failed, but adequate identifying and other information exists to meet 
requirements for submittal for location, either quarterly or immediately 
upon receipt of new information which may aid in location, whichever 
occurs sooner. Quarterly attempts may be limited to automated sources, 
but must include accessing State workforce files. Repeated attempts 
because of new information which may aid in location must meet the 
requirements of paragraph (b)(3) of this section; and
    (6) Have in effect safeguards, applicable to all confidential 
information handled by the IV-D program, that are designed to protect 
the privacy rights of the parties and that comply with the requirements 
of sections 454(26) and 454A(d) and (f) of the Act and Sec. Sec.303.21 
and 307.13.
    (c) The State must establish guidelines defining diligent efforts to 
serve process. These guidelines must include periodically repeating 
service of process attempts in cases in which previous attempts to serve 
process have failed, but adequate identifying and other information 
exists to attempt service of process.

[73 FR 56443, Sept. 26, 2008, as amended at 81 FR 93563, Dec. 20, 2016]



Sec.303.4  Establishment of support obligations.

    For all cases referred to the IV-D agency or applying under Sec.
302.33 of this chapter, the IV-D Agency must:
    (a) When necessary, establish paternity pursuant to the standards of 
Sec.303.5;
    (b) Use appropriate State statutes, procedures, and legal processes 
in establishing and modifying support obligations in accordance with 
Sec.302.56 of this chapter, which must include, at a minimum:
    (1) Taking reasonable steps to develop a sufficient factual basis 
for the support obligation, through such means as investigations, case 
conferencing, interviews with both parties, appear and disclose 
procedures, parent questionnaires, testimony, and electronic data 
sources;
    (2) Gathering information regarding the earnings and income of the 
noncustodial parent and, when earnings and income information is 
unavailable or insufficient in a case gathering available information 
about the specific circumstances of the noncustodial parent, including 
such factors as those listed under Sec.302.56(c)(1)(iii) of this 
chapter;
    (3) Basing the support obligation or recommended support obligation 
amount on the earnings and income of the noncustodial parent whenever 
available. If evidence of earnings and income is unavailable or 
insufficient to use as the measure of the noncustodial parent's ability 
to pay, then the support obligation or recommended support obligation 
amount should be based on available information about the specific 
circumstances of the noncustodial parent, including such factors as 
those listed in Sec.302.56(c)(1)(iii) of this chapter.
    (4) Documenting the factual basis for the support obligation or the 
recommended support obligation in the case record.
    (c) Periodically review and adjust child support orders, as 
appropriate, in accordance with Sec.303.8.
    (d) Within 90 calendar days of locating the alleged father or 
noncustodial parent, regardless of whether paternity has been 
established, establish an order for support or complete service of 
process necessary to commence proceedings to establish a support order 
and, if necessary, paternity (or document unsuccessful attempts to serve 
process, in accordance with the State's guidelines defining diligent 
efforts under Sec.303.3(c)).
    (e) If the court or administrative authority dismisses a petition 
for a support order without prejudice, the IV-D agency must, at the time 
of dismissal, examine the reasons for dismissal and determine when it 
would be appropriate to seek an order in the future, and seek a support 
order at that time.

[[Page 255]]

    (f) Seek a support order based on a voluntary acknowledgment in 
accordance with Sec.302.70(a)(5)(vii).

[40 FR 27164, June 26, 1975, as amended at 50 FR 19650, May 9, 1985; 54 
FR 32310, Aug. 4, 1989; 57 FR 30681, July 10, 1992; 59 FR 66250, Dec. 
23, 1994; 81 FR 93563, Dec. 20, 2016]



Sec.303.5  Establishment of paternity.

    (a) For all cases referred to the IV-D agency or applying for 
services under Sec.302.33 of this chapter in which paternity has not 
been established, the IV-D agency must, as appropriate:
    (1) Provide an alleged father the opportunity to voluntarily 
acknowledge paternity in accordance with Sec.302.70(a)(5)(iii); and
    (2) Attempt to establish paternity by legal process established 
under State law.
    (b) The IV-D agency need not attempt to establish paternity in any 
case involving incest or forcible rape, or in any case in which legal 
proceedings for adoption are pending, if, in the opinion of the IV-D 
agency, it would not be in the best interests of the child to establish 
paternity.
    (c) The IV-D agency must identify and use through competitive 
procurement laboratories which perform, at reasonable cost, legally and 
medically acceptable genetic tests which tend to identify the father or 
exclude the alleged father. The IV-D agency must make available a list 
of such laboratories to appropriate courts and law enforcement 
officials, and to the public upon request.
    (d)(1) Upon request of any party in a contested paternity case in 
accordance with section 466(a)(5)(B) of the Act, and subject to the 
provisions of paragraph (b) of this section, the IV-D agency shall 
require all parties to submit to genetic tests unless, in the case of an 
individual receiving aid under the State's title IV-A, IV-E or XIX plan, 
or those recipients of the food stamp program, as defined under section 
3(h) of the Food Stamp Act of 1977 who are required to cooperate with 
the child support program, there has been a determination of good cause 
for refusal to cooperate under section 454(29) of the Act.
    (2) A contested paternity case is any action in which the issue of 
paternity may be raised under State law and one party denies paternity.
    (e)(1) Except as provided in paragraph (e)(3) of this section, the 
IV-D agency may charge any individual who is not a recipient of aid 
under the State's title IV-A or XIX plan a reasonable fee for performing 
genetic tests.
    (2) Any fee charged must be reasonable so as not to discourage those 
in need of paternity establishment services from seeking them and may 
not exceed the actual costs of the genetic tests.
    (3) If paternity is established and genetic tests were ordered by 
the IV-D agency, the IV-D agency must pay the costs of such tests, 
subject to recoupment (if the agency elects) from the alleged father who 
denied paternity. If a party contests the results of an original test, 
the IV-D agency shall obtain additional tests but shall require the 
contestant to pay for the costs of any such additional testing in 
advance.
    (4) The IV-D agency must use any amount collected under paragraphs 
(e) (1) and (3) of this section that exceeds the costs of performing 
genetic tests to reimburse any fee paid under paragraph (e)(1) of this 
chapter.
    (f) The IV-D agency must seek entry of a default order by the court 
or administrative authority in a paternity case by showing that process 
has been served on the defendant in accordance with State law, that the 
defendant has failed to respond to service in accordance with State 
procedures, and any additional showing required by State law, in 
accordance with Sec.302.70(a)(5)(viii).
    (g) Voluntary paternity establishment programs. (1) The State must 
establish, in cooperation with hospitals, State birth record agencies, 
and other entities designated by the State and participating in the 
State's voluntary paternity establishment program, a program for 
voluntary paternity establishment services.
    (i) The hospital-based portion of the voluntary paternity 
establishment services program must be operational

[[Page 256]]

in all private and public birthing hospitals statewide and must provide 
voluntary paternity establishment services focusing on the period 
immediately before and after the birth of a child born out-of-wedlock.
    (ii) The voluntary paternity establishment services program must 
also be available at the State birth record agencies, and at other 
entities designated by the State and participating in the State's 
voluntary paternity establishment program. These entities may include 
the following types of entities:
    (A) Public health clinics (including Supplementary Feeding Program 
for Women, Infants, and Children (WIC) and Maternal and Child Health 
(MCH) clinics), and private health care providers (including 
obstetricians, gynecologists, pediatricians, and midwives);
    (B) Agencies providing assistance or services under Title IV-A of 
the Act, agencies providing food stamp eligibility service, and agencies 
providing child support enforcement (IV-D) services;
    (C) Head Start and child care agencies (including child care 
information and referral providers), and individual child care 
providers;
    (D) Community Action Agencies and Community Action Programs;
    (E) Secondary education schools (particularly those that have 
parenthood education curricula);
    (F) Legal Aid agencies, and private attorneys; and
    (G) Any similar public or private health, welfare or social services 
organization.
    (2) The hospitals, State birth record agencies, and other entities 
designated by the State and participating in the State's voluntary 
paternity establishment program must, at a minimum:
    (i) Provide to both the mother and alleged father:
    (A) Written materials about paternity establishment,
    (B) The forms necessary to voluntarily acknowledge paternity,
    (C) Notice, orally or through video or audio equipment, and in 
writing, of the alternatives to, the legal consequences of, and the 
rights (including any rights, if a parent is a minor, due to minority 
status) and responsibilities or acknowledging paternity, and
    (D) The opportunity to speak with staff, either by telephone or in 
person, who are trained to clarify information and answer questions 
about paternity establishment;
    (ii) Provide the mother and alleged father the opportunity to 
voluntarily acknowledge paternity;
    (iii) Afford due process safeguards; and
    (iv) File signed original of voluntary acknowledgments or 
adjudications of paternity with the State registry of birth records (or 
a copy if the signed original is filed with another designated entity) 
for comparison with information in the State case registry.
    (3) The hospitals, State birth record agencies, and other entities 
designated by the State and participating in the State's voluntary 
paternity establishment program need not provide services specified in 
paragraph (g)(2) of this section in cases where the mother or alleged 
father is a minor or a legal action is already pending, if the provision 
of such services is precluded by State law.
    (4) The State must require that a voluntary acknowledgment be signed 
by both parents, and that the parents' signatures be authenticated by a 
notary or witness(es).
    (5) The State must provide to all hospitals, State birth record 
agencies, and other entities designated by the State and participating 
in the State's voluntary paternity establishment program:
    (i) Written materials about paternity establishment,
    (ii) Form necessary to voluntarily acknowledge paternity, and
    (iii) Copies of a written description of the alternatives to, the 
legal consequences of, and the rights (including any rights, if a parent 
is a minor, due to minority status) and responsibilities of 
acknowledging paternity.
    (6) The State must provide training, guidance, and instructions, 
which are reflected in a record, regarding voluntary acknowledgment of 
paternity, as necessary to operate the voluntary paternity establishment 
services in the hospitals, State birth record agencies, and other 
entities designated by the

[[Page 257]]

State and participating in the State's voluntary paternity establishment 
program.
    (7) The State must assess each hospital, State birth record agency, 
local birth record agency designated by the State, and other entity 
participating in the State's voluntary paternity establishment program 
that are providing voluntary paternity establishment services on at 
least an annual basis.
    (8) Hospitals, State birth record agencies, and other entities 
designated by the State and participating in the State's voluntary 
paternity establishment program must forward completed voluntary 
acknowledgments or copies to the entity designated by the State. If any 
entity other than the State registry of birth records is designated by 
the State, a copy must be filed with the State registry of birth 
records, in accordance with Sec.303.5(g)(2)(iv). Under State 
procedures, the designated entity must be responsible for promptly 
recording identifying information about the acknowledgments with a 
statewide database, and the IV-D agency must have timely access to 
whatever identifying information and documentation it needs to determine 
in accordance with Sec.303.5(h) if an acknowledgment has been recorded 
and to seek a support order on the basis of a recorded acknowledgment in 
accordance with Sec.303.4(f).
    (h) In IV-D cases needing paternity establishment, the IV-D agency 
must determine if identifying information about a voluntary 
acknowledgment has been recorded in the statewide database in accordance 
with Sec.303.5(g)(8).

[40 FR 27164, June 26, 1975, as amended at 50 FR 19650, May 9, 1985; 54 
FR 32310, Aug. 4, 1989; 56 FR 22354, May 15, 1991; 59 FR 66250, Dec. 23, 
1994; 64 FR 6249, Feb. 9, 1999; 64 FR 11809, Mar. 10, 1999; 81 FR 93564, 
Dec. 20, 2016]



Sec.303.6  Enforcement of support obligations.

    For all cases referred to the IV-D agency or applying for services 
under Sec.302.33 in which the obligation to support and the amount of 
the obligation have been established, the IV-D agency must maintain and 
use an effective system for:
    (a) Monitoring compliance with the support obligation;
    (b) Identifying on the date the parent fails to make payments in an 
amount equal to the support payable for one month, or on an earlier date 
in accordance with State law, those cases in which there is a failure to 
comply with the support obligation; and
    (c) Enforcing the obligation by:
    (1) Initiating income withholding, in accordance with Sec.303.100;
    (2) Taking any appropriate enforcement action (except income 
withholding and Federal and State income tax refund offset) unless 
service of process is necessary, within no more than 30 calendar days of 
identifying a delinquency or other support-related non-compliance with 
the order or the location of the noncustodial parent, whichever occurs 
later. If service of process is necessary prior to taking an enforcement 
action, service must be completed (or unsuccessful attempts to serve 
process must be documented in accordance with the State's guidelines 
defining diligent efforts under Sec.303.3(c)), and enforcement action 
taken if process is served, within no later than 60 calendar days of 
identifying a delinquency or other support-related non-compliance with 
the order, or the location of the noncustodial parent, whichever occurs 
later;
    (3) Submitting once a year all cases which meet the certification 
requirements under Sec.303.102 of this part and State guidelines 
developed under Sec.302.70(b) of this title for State income tax 
refund offset, and which meet the certification requirements under Sec.
303.72 of this part for Federal income tax refund offset;
    (4) Establishing guidelines for the use of civil contempt citations 
in IV-D cases. The guidelines must include requirements that the IV-D 
agency:
    (i) Screen the case for information regarding the noncustodial 
parent's ability to pay or otherwise comply with the order;
    (ii) Provide the court with such information regarding the 
noncustodial parent's ability to pay, or otherwise comply with the 
order, which may assist the court in making a factual determination 
regarding the noncustodial parent's ability to pay the purge amount or 
comply with the purge conditions; and

[[Page 258]]

    (iii) Provide clear notice to the noncustodial parent that his or 
her ability to pay constitutes the critical question in the civil 
contempt action; and
    (5) In cases in which enforcement attempts have been unsuccessful, 
at the time an attempt to enforce fails, examining the reason the 
enforcement attempt failed and determining when it would be appropriate 
to take an enforcement action in the future, and taking an enforcement 
action in accordance with the requirements of this section at that time.

[54 FR 32310, Aug. 4, 1989, as amended at 55 FR 25840, June 25, 1990; 81 
FR 93564, Dec. 20, 2016]



Sec.303.7  Provision of services in intergovernmental IV-D cases.

    (a) General responsibilities. A State IV-D agency must:
    (1) Establish and use procedures for managing its intergovernmental 
IV-D caseload that ensure provision of necessary services as required by 
this section and include maintenance of necessary records in accordance 
with Sec.303.2 of this part;
    (2) Periodically review program performance on intergovernmental IV-
D cases to evaluate the effectiveness of the procedures established 
under this section;
    (3) Ensure that the organizational structure and staff of the IV-D 
agency are adequate to provide for the administration or supervision of 
the following functions specified in Sec.303.20(c) of this part for 
its intergovernmental IV-D caseload: Intake; establishment of paternity 
and the legal obligation to support; location; financial assessment; 
establishment of the amount of child support; collection; monitoring; 
enforcement; review and adjustment; and investigation;
    (4) Use federally-approved forms in intergovernmental IV-D cases, 
unless a country has provided alternative forms as part of its chapter 
in A Caseworker's Guide to Processing Cases with Foreign Reciprocating 
Countries. When using a paper version, this requirement is met by 
providing the number of complete sets of required documents needed by 
the responding agency, if one is not sufficient under the responding 
agency's law;
    (5) Transmit requests for information and provide requested 
information electronically to the greatest extent possible;
    (6) Within 30 working days of receiving a request, provide any order 
and payment record information requested by a State IV-D agency for a 
controlling order determination and reconciliation of arrearages, or 
notify the State IV-D agency when the information will be provided;
    (7) Notify the other agency within 10 working days of receipt of new 
information on an intergovernmental case; and
    (8) Cooperate with requests for the following limited services: 
Quick locate, service of process, assistance with discovery, assistance 
with genetic testing, teleconferenced hearings, administrative reviews, 
high-volume automated administrative enforcement in interstate cases 
under section 466(a)(14) of the Act, and copies of court orders and 
payment records. Requests for other limited services may be honored at 
the State's option.
    (b) Central registry. (1) The State IV-D agency must establish a 
central registry responsible for receiving, transmitting, and responding 
to inquiries on all incoming intergovernmental IV-D cases.
    (2) Within 10 working days of receipt of an intergovernmental IV-D 
case, the central registry must:
    (i) Ensure that the documentation submitted with the case has been 
reviewed to determine completeness;
    (ii) Forward the case for necessary action either to the central 
State Parent Locator Service for location services or to the appropriate 
agency for processing;
    (iii) Acknowledge receipt of the case and request any missing 
documentation; and
    (iv) Inform the initiating agency where the case was sent for 
action.
    (3) If the documentation received with a case is incomplete and 
cannot be remedied by the central registry without the assistance of the 
initiating agency, the central registry must forward the case for any 
action that can be taken pending necessary action by the initiating 
agency.

[[Page 259]]

    (4) The central registry must respond to inquiries from initiating 
agencies within 5 working days of receipt of the request for a case 
status review.
    (c) Initiating State IV-D agency responsibilities. The initiating 
State IV-D agency must:
    (1) Determine whether or not there is a support order or orders in 
effect in a case using the Federal and State Case Registries, State 
records, information provided by the recipient of services, and other 
relevant information available to the State;
    (2) Determine in which State a determination of the controlling 
order and reconciliation of arrearages may be made where multiple orders 
exist;
    (3) Determine whether the noncustodial parent is in another 
jurisdiction and whether it is appropriate to use its one-state remedies 
to establish paternity and establish, modify, and enforce a support 
order, including medical support and income withholding;
    (4) Within 20 calendar days of completing the actions required in 
paragraphs (1) through (3) and, if appropriate, receipt of any necessary 
information needed to process the case:
    (i) Ask the appropriate intrastate tribunal, or refer the case to 
the appropriate responding State IV-D agency, for a determination of the 
controlling order and a reconciliation of arrearages if such a 
determination is necessary; and
    (ii) Refer any intergovernmental IV-D case to the appropriate State 
Central Registry, Tribal IV-D program, or Central Authority of a country 
for action, if one-state remedies are not appropriate;
    (5) Provide the responding agency sufficient, accurate information 
to act on the case by submitting with each case any necessary 
documentation and intergovernmental forms required by the responding 
agency;
    (6) Within 30 calendar days of receipt of the request for 
information, provide the responding agency with an updated 
intergovernmental form and any necessary additional documentation, or 
notify the responding agency when the information will be provided;
    (7) Notify the responding agency at least annually, and upon request 
in an individual case, of interest charges, if any, owed on overdue 
support under an initiating State order being enforced in the responding 
jurisdiction;
    (8) Submit all past-due support owed in IV-D cases that meet the 
certification requirements under Sec.303.72 of this part for Federal 
tax refund offset,
    (9) Send a request for review of a child support order to another 
State within 20 calendar days of determining that a request for review 
of the order should be sent to the other State and of receipt of 
information from the requestor necessary to conduct the review in 
accordance with section 466(a)(10) of the Act and Sec.303.8 of this 
part;
    (10) Distribute and disburse any support collections received in 
accordance with this section and Sec. Sec.302.32, 302.38, 302.51, and 
302.52 of this chapter, sections 454(5), 454B, 457, and 1912 of the Act, 
and instructions issued by the Office;
    (11) Notify the responding agency within 10 working days of case 
closure that the initiating State IV-D agency has closed its case 
pursuant to Sec.303.11 of this part, and the basis for case closure;
    (12) Instruct the responding agency to close its interstate case and 
to stop any withholding order or notice the responding agency has sent 
to an employer before the initiating State transmits a withholding order 
or notice, with respect to the same case, to the same or another 
employer unless the two States reach an alternative agreement on how to 
proceed; and
    (13) If the initiating agency has closed its case pursuant to Sec.
303.11 and has not notified the responding agency to close its 
corresponding case, make a diligent effort to locate the obligee, 
including use of the Federal Parent Locator Service and the State Parent 
Locator Service, and accept, distribute and disburse any payment 
received from a responding agency.
    (d) Responding State IV-D agency responsibilities. Upon receipt of a 
request for services from an initiating agency, the responding State IV-
D agency must:
    (1) Accept and process an intergovernmental request for services, 
regardless of whether the initiating agency elected not to use remedies 
that may

[[Page 260]]

be available under the law of that jurisdiction;
    (2) Within 75 calendar days of receipt of an intergovernmental form 
and documentation from its central registry:
    (i) Provide location services in accordance with Sec.303.3 of this 
part if the request is for location services or the form or 
documentation does not include adequate location information on the 
noncustodial parent;
    (ii) If unable to proceed with the case because of inadequate 
documentation, notify the initiating agency of the necessary additions 
or corrections to the form or documentation;
    (iii) If the documentation received with a case is incomplete and 
cannot be remedied without the assistance of the initiating agency, 
process the case to the extent possible pending necessary action by the 
initiating agency;
    (3) Within 10 working days of locating the noncustodial parent in a 
different State, the responding agency must return the forms and 
documentation, including the new location, to the initiating agency, or, 
if directed by the initiating agency, forward/transmit the forms and 
documentation to the central registry in the State where the 
noncustodial parent has been located and notify the responding State's 
own central registry where the case has been sent.
    (4) Within 10 working days of locating the noncustodial parent in a 
different political subdivision within the State, forward/transmit the 
forms and documentation to the appropriate political subdivision and 
notify the initiating agency and the responding State's own central 
registry of its action;
    (5) If the request is for a determination of controlling order:
    (i) File the controlling order determination request with the 
appropriate tribunal in its State within 30 calendar days of receipt of 
the request or location of the noncustodial parent, whichever occurs 
later; and
    (ii) Notify the initiating State agency, the Controlling Order State 
and any State where a support order in the case was issued or 
registered, of the controlling order determination and any reconciled 
arrearages within 30 calendar days of receipt of the determination from 
the tribunal;
    (6) Provide any necessary services as it would in an intrastate IV-D 
case including:
    (i) Establishing paternity in accordance with Sec.303.5 of this 
part and, if the agency elects, attempting to obtain a judgment for 
costs should paternity be established;
    (ii) Establishing a child support obligation in accordance with 
Sec.302.56 of this chapter and Sec. Sec.303.4, 303.31 and 303.101 of 
this part;
    (iii) Reporting overdue support to Consumer Reporting Agencies, in 
accordance with section 466(a)(7) of the Act and Sec.302.70(a)(7) of 
this chapter;
    (iv) Processing and enforcing orders referred by an initiating 
agency, whether pursuant to UIFSA or other legal processes, using 
appropriate remedies applied in its own cases in accordance with 
Sec. Sec.303.6, 303.31, 303.32, 303.100 through 303.102, and 303.104 
of this part, and submit the case for such other Federal enforcement 
techniques as the State determines to be appropriate, such as 
administrative offset under 31 CFR 285.1 and passport denial under 
section 452(k) of the Act;
    (v) Collecting and monitoring any support payments from the 
noncustodial parent and forwarding payments to the location specified by 
the initiating agency. The IV-D agency must include sufficient 
information to identify the case, indicate the date of collection as 
defined under Sec.302.51(a) of this chapter, and include the 
responding State's case identifier and locator code, as defined in 
accordance with instructions issued by this Office; and
    (vi) Reviewing and adjusting child support orders upon request in 
accordance with Sec.303.8 of this part;
    (7) Provide timely notice to the initiating agency in advance of any 
hearing before a tribunal that may result in establishment or adjustment 
of an order;
    (8) Identify any fees or costs deducted from support payments when 
forwarding payments to the initiating agency in accordance with 
paragraph (d)(6)(v) of this section;
    (9) Within 10 working days of receipt of instructions for case 
closure from an initiating State agency under paragraph (c)(12) of this 
section, stop the

[[Page 261]]

responding State's income withholding order or notice and close the 
intergovernmental IV-D case, unless the two States reach an alternative 
agreement on how to proceed; and
    (10) Notify the initiating agency when a case is closed pursuant to 
Sec. Sec.303.11(b)(17) through (19) and 303.7(d)(9).
    (e) Payment and recovery of costs in intergovernmental IV-D cases. 
(1) The responding IV-D agency must pay the costs it incurs in 
processing intergovernmental IV-D cases, including the costs of genetic 
testing. If paternity is established, the responding agency, at its 
election, may seek a judgment for the costs of testing from the alleged 
father who denied paternity.
    (2) Each State IV-D agency may recover its costs of providing 
services in intergovernmental non-IV-A cases in accordance with Sec.
302.33(d) of this chapter, except that a IV-D agency may not recover 
costs from an FRC or from a foreign obligee in that FRC, when providing 
services under sections 454(32) and 459A of the Act.
    (f) Imposition and reporting of annual $35 fee in interstate cases. 
The title IV-D agency in the initiating State must impose and report the 
annual $35 fee in accordance with Sec.302.33(e) of this chapter.

[75 FR 38642, July 2, 2010, as amended at 81 FR 93564, Dec. 20, 2016; 85 
FR 35207, June 9, 2020]



Sec.303.8  Review and adjustment of child support orders.

    (a) Definition. For purposes of this section, Parent includes any 
custodial parent or noncustodial parent (or for purposes of requesting a 
review, any other person or entity who may have standing to request an 
adjustment to the child support order).
    (b) Required procedures. Pursuant to section 466(a)(10) of the Act, 
when providing services under this chapter:
    (1) The State must have procedures under which, within 36 months 
after establishment of the order or the most recent review of the order 
(or such shorter cycle as the State may determine), if there is an 
assignment under part A, or upon the request of either parent, the State 
shall, with respect to a support order being enforced under title IV-D 
of the Act, taking into account the best interests of the child 
involved:
    (i) Review and, if appropriate, adjust the order in accordance with 
the State's guidelines established pursuant to section 467(a) of the Act 
if the amount of the child support award under the order differs from 
the amount that would be awarded in accordance with the guidelines;
    (ii) Apply a cost-of-living adjustment to the order in accordance 
with a formula developed by the State; or
    (iii) Use automated methods (including automated comparisons with 
wage or State income tax data) to identify orders eligible for review, 
conduct the review, identify orders eligible for adjustment, and apply 
the appropriate adjustment to the orders eligible for adjustment under 
any threshold that may be established by the State.
    (2) The State may elect in its State plan to initiate review of an 
order, after learning that a noncustodial parent will be incarcerated 
for more than 180 calendar days, without the need for a specific request 
and, upon notice to both parents, review and, if appropriate, adjust the 
order, in accordance with paragraph (b)(1)(i) of this section.
    (3) If the State elects to conduct the review under paragraph 
(b)(1)(ii) or (iii) of this section, the State must have procedures 
which permit either party to contest the adjustment, within 30 days 
after the date of the notice of the adjustment, by making a request for 
review and, if appropriate, adjustment of the order in accordance with 
the child support guidelines established pursuant to section 467(a) of 
the Act.
    (4) If the State conducts a guideline review under paragraph 
(b)(1)(i) of this section:
    (i) Review means an objective evaluation, conducted through a 
proceeding before a court, quasi-judicial process, or administrative 
body or agency, of information necessary for application of the State's 
guidelines for support to determine:
    (A) The appropriate support award amount; and
    (B) The need to provide for the child's health care needs in the 
order through health insurance coverage or other means.

[[Page 262]]

    (ii) Adjustment applies only to the child support provisions of the 
order, and means:
    (A) An upward or downward change in the amount of child support 
based upon an application of State guidelines for setting and adjusting 
child support awards; and/or
    (B) Provision for the child's health care needs, through health 
insurance coverage or other means.
    (5) The State must have procedures which provide that any adjustment 
under paragraph (b)(1)(i) of this section shall be made without a 
requirement for proof or showing of a change in circumstances.
    (6) The State must have procedures under which, in the case of a 
request for a review, and if appropriate, an adjustment outside the 3-
year cycle (or such shorter cycle as the State may determine) under 
paragraph (b)(1) of this section, the State shall review and, if the 
requesting party demonstrates a substantial change in circumstances, 
adjust the order in accordance with the guidelines established pursuant 
to section 467(a) of the Act.
    (7) The State must provide notice--
    (i) Not less than once every 3 years to both parents subject to an 
order informing the parents of their right to request the State to 
review and, if appropriate, adjust the order consistent with this 
section. The notice must specify the place and manner in which the 
request should be made. The initial notice may be included in the order.
    (ii) If the State has not elected paragraph (b)(2) of this section, 
within 15 business days of when the IV-D agency learns that a 
noncustodial parent will be incarcerated for more than 180 calendar 
days, to both parents informing them of the right to request the State 
to review and, if appropriate, adjust the order, consistent with this 
section. The notice must specify, at a minimum, the place and manner in 
which the request should be made. Neither the notice nor a review is 
required under this paragraph if the State has a comparable law or rule 
that modifies a child support obligation upon incarceration by operation 
of State law.
    (c) Standard for adequate grounds. The State may establish a 
reasonable quantitative standard based upon either a fixed dollar amount 
or percentage, or both, as a basis for determining whether an 
inconsistency between the existent child support award amount and the 
amount of support determined as a result of a review is adequate grounds 
for petitioning for adjustment of the order. Such reasonable 
quantitative standard must not exclude incarceration as a basis for 
determining whether an inconsistency between the existing child support 
order amount and the amount of support determined as a result of a 
review is adequate grounds for petitioning for adjustment of the order.
    (d) Health care needs must be an adequate basis. The need to provide 
for the child's health care needs in the order, through health insurance 
or other means, must be an adequate basis under State law to initiate an 
adjustment of an order, regardless of whether an adjustment in the 
amount of child support is necessary.
    (e) Timeframes for review and adjustment. Within 180 calendar days 
of receiving a request for a review or locating the non-requesting 
parent, whichever occurs later, a State must: Conduct a review of the 
order and adjust the order or determine that the order should not be 
adjusted, in accordance with this section.
    (f) Interstate review and adjustment. (1) In interstate cases, the 
State with legal authority to adjust the order must conduct the review 
and adjust the order pursuant to this section.
    (2) The applicable laws and procedures for review and adjustment of 
child support orders, including the State guidelines for setting child 
support awards, established in accordance with Sec.302.56 of this 
chapter, are those of the State in which the review and adjustment, or 
determination that there be no adjustment, takes place.

[68 FR 25303, May 12, 2003, as amended at 69 FR 77661, Dec. 28, 2004; 73 
FR 74920, Dec. 9, 2008; 81 FR 93564, Dec. 20, 2016]



Sec.303.10  [Reserved]



Sec.303.11  Case closure criteria.

    (a) The IV-D agency shall establish a system for case closure.
    (b) The IV-D agency may elect to close a case if the case meets at 
least

[[Page 263]]

one of the following criteria and supporting documentation for the case 
closure decision is maintained in the case record:
    (1) There is no longer a current support order and arrearages are 
under $500 or unenforceable under State law;
    (2) There is no longer a current support order and all arrearages in 
the case are assigned to the State;
    (3) There is no longer a current support order, the children have 
reached the age of majority, the noncustodial parent is entering or has 
entered long-term care arrangements (such as a residential care facility 
or home health care), and the noncustodial parent has no income or 
assets available above the subsistence level that could be levied or 
attached for support;
    (4) The noncustodial parent or alleged father is deceased and no 
further action, including a levy against the estate, can be taken;
    (5) The noncustodial parent is living with the minor child (as the 
primary caregiver or in an intact two parent household), and the IV-D 
agency has determined that services are not appropriate or are no longer 
appropriate;
    (6) Paternity cannot be established because:
    (i) The child is at least 18 years old and an action to establish 
paternity is barred by a statute of limitations that meets the 
requirements of Sec.302.70(a)(5) of this chapter;
    (ii) A genetic test or a court or an administrative process has 
excluded the alleged father and no other alleged father can be 
identified;
    (iii) In accordance with Sec.303.5(b), the IV-D agency has 
determined that it would not be in the best interests of the child to 
establish paternity in a case involving incest or rape, or in any case 
where legal proceedings for adoption are pending; or
    (iv) The identity of the biological father is unknown and cannot be 
identified after diligent efforts, including at least one interview by 
the IV-D agency with the recipient of services;
    (7) The noncustodial parent's location is unknown, and the State has 
made diligent efforts using multiple sources, in accordance with Sec.
303.3, all of which have been unsuccessful, to locate the noncustodial 
parent:
    (i) Over a 2-year period when there is sufficient information to 
initiate an automated locate effort; or
    (ii) Over a 6-month period when there is not sufficient information 
to initiate an automated locate effort; or
    (iii) After a 1-year period when there is sufficient information to 
initiate an automated locate effort, but locate interfaces are unable to 
verify a Social Security Number;
    (8) The IV-D agency has determined that throughout the duration of 
the child's minority (or after the child has reached the age of 
majority), the noncustodial parent cannot pay support and shows no 
evidence of support potential because the parent has been 
institutionalized in a psychiatric facility, is incarcerated, or has a 
medically-verified total and permanent disability. The State must also 
determine that the noncustodial parent has no income or assets available 
above the subsistence level that could be levied or attached for 
support;
    (9) The noncustodial parent's sole income is from:
    (i) Supplemental Security Income (SSI) payments made in accordance 
with sections 1601 et seq., of title XVI of the Act, 42 U.S.C. 1381 et 
seq.; or
    (ii) Both SSI payments and either Social Security Disability 
Insurance (SSDI) or Social Security Retirement (SSR) benefits under 
title II of the Act.
    (10) The noncustodial parent is a citizen of, and lives in, a 
foreign country, does not work for the Federal government or a company 
with headquarters or offices in the United States, and has no reachable 
domestic income or assets; and there is no Federal or State treaty or 
reciprocity with the country;
    (11) The IV-D agency has provided location-only services as 
requested under Sec.302.35(c)(3) of this chapter;
    (12) The non-IV-A recipient of services requests closure of a case 
and there is no assignment to the State of medical support under 42 CFR 
433.146 or of arrearages which accrued under a support order;
    (13) The IV-D agency has completed a limited service under Sec.
302.33(a)(6) of this chapter;
    (14) There has been a finding by the IV-D agency, or at the option 
of the State, by the responsible State agency

[[Page 264]]

of good cause or other exceptions to cooperation with the IV-D agency 
and the State or local assistance program, such as IV-A, IV-E, 
Supplemental Nutrition Assistance Program (SNAP), and Medicaid, has 
determined that support enforcement may not proceed without risk of harm 
to the child or caretaker relative;
    (15) In a non-IV-A case receiving services under Sec.
302.33(a)(1)(i) or (iii) of this chapter, or under Sec.
302.33(a)(1)(ii) when cooperation with the IV-D agency is not required 
of the recipient of services, the IV-D agency is unable to contact the 
recipient of services despite a good faith effort to contact the 
recipient through at least two different methods;
    (16) In a non-IV-A case receiving services under Sec.
302.33(a)(1)(i) or (iii) of this chapter, or under Sec.
302.33(a)(1)(ii) when cooperation with the IV-D agency is not required 
of the recipient of services, the IV-D agency documents the 
circumstances of the recipient's noncooperation and an action by the 
recipient of services is essential for the next step in providing IV-D 
services;
    (17) The responding agency documents failure by the initiating 
agency to take an action that is essential for the next step in 
providing services;
    (18) The initiating agency has notified the responding State that 
the initiating State has closed its case under Sec.303.7(c)(11);
    (19) The initiating agency has notified the responding State that 
its intergovernmental services are no longer needed;
    (20) Another assistance program, including IV-A, IV-E, SNAP, and 
Medicaid, has referred a case to the IV-D agency that is inappropriate 
to establish, enforce, or continue to enforce a child support order and 
the custodial or noncustodial parent has not applied for services; or
    (21) The IV-D case, including a case with arrears assigned to the 
State, has been transferred to a Tribal IV-D agency and the State IV-D 
agency has complied with the following procedures:
    (i) Before transferring the State IV-D case to a Tribal IV-D agency 
and closing the IV-D case with the State:
    (A) The recipient of services requested the State to transfer the 
case to the Tribal IV-D agency and close the case with the State; or
    (B) The State IV-D agency notified the recipient of services of its 
intent to transfer the case to the Tribal IV-D agency and close the case 
with the State and the recipient did not respond to the notice to 
transfer the case within 60 calendar days from the date notice was 
provided;
    (ii) The State IV-D agency completely and fully transferred and 
closed the case; and
    (iii) The State IV-D agency notified the recipient of services that 
the case has been transferred to the Tribal IV-D agency and closed; or
    (iv) The Tribal IV-D agency has a State-Tribal agreement approved by 
OCSE to transfer and close cases. The State-Tribal agreement must 
include a provision for obtaining the consent from the recipient of 
services to transfer and close the case.
    (c) The IV-D agency must close a case and maintain supporting 
documentation for the case closure decision when the following criteria 
have been met:
    (1) The child is eligible for health care services from the Indian 
Health Service (IHS); and
    (2) The IV-D case was opened because of a Medicaid referral based 
solely upon health care services, including the Purchased/Referred Care 
program, provided through an Indian Health Program (as defined at 25 
U.S.C. 1603(12)).
    (d) The IV-D agency must have the following requirements for case 
closure notification and case reopening:
    (1) In cases meeting the criteria in paragraphs (b)(1) through (10) 
and (b)(15) and (16) of this section, the State must notify the 
recipient of services in writing 60 calendar days prior to closure of 
the case of the State's intent to close the case.
    (2) In an intergovernmental case meeting the criteria for closure 
under paragraph (b)(17) of this section, the responding State must 
notify the initiating agency, in a record, 60 calendar days prior to 
closure of the case of the State's intent to close the case.
    (3) The case must be kept open if the recipient of services or the 
initiating agency supplies information in response to the notice 
provided under

[[Page 265]]

paragraph (d)(1) or (2) of this section that could lead to the 
establishment of paternity or a support order or enforcement of an 
order, or, in the instance of paragraph (b)(15) of this section, if 
contact is reestablished with the recipient of services.
    (4) For cases to be closed in accordance with paragraph (b)(13) of 
this section, the State must notify the recipient of services, in 
writing, 60 calendar days prior to closure of the case of the State's 
intent to close the case. This notice must also provide information 
regarding reapplying for child support services and the consequences of 
receiving services, including any State fees, cost recovery, and 
distribution policies. If the recipient reapplies for child support 
services in a case that was closed in accordance with paragraph (b)(13) 
of this section, the recipient must complete a new application for IV-D 
services and pay any applicable fee.
    (5) If the case is closed, the former recipient of services may 
request at a later date that the case be reopened if there is a change 
in circumstances that could lead to the establishment of paternity or a 
support order or enforcement of an order by completing a new application 
for IV-D services and paying any applicable fee.
    (6) For notices under paragraphs (d)(1) and (4) of this section, if 
the recipient of services specifically authorizes consent for electronic 
notifications, the IV-D agency may elect to notify the recipient of 
services electronically of the State's intent to close the case. The IV-
D agency must maintain documentation of the recipient's consent in the 
case record.
    (e) The IV-D agency must retain all records for cases closed in 
accordance with this section for a minimum of 3 years, in accordance 
with 45 CFR 75.361.

[81 FR 93564, Dec. 20, 2016, as amended at 85 FR 35207, June 9, 2020]



Sec.303.15  Agreements to use the Federal Parent Locator Service 
(PLS) in parental kidnapping and child custody or visitation cases.

    (a) Definitions. The following definitions apply to this section:
    (1) Authorized person means the following:
    (i) Any agent or attorney of any State having an agreement under 
this section, who has the duty or authority under the laws of the State 
to enforce a child custody or visitation determination;
    (ii) Any court having jurisdiction to make or enforce a child 
custody or visitation determination, or any agent of the court; or
    (iii) Any agent or attorney of the United States, or of a State 
having an agreement under this section, who has the duty or authority to 
investigate, enforce, or bring a prosecution with respect to the 
unlawful taking or restraint of a child.
    (2) Custody or visitation determination means a judgment, decree, or 
other order of a court providing for custody or visitation of a child, 
and includes permanent and temporary orders, and initial orders and 
modifications.
    (b) A State shall enter into an agreement with the Office that meets 
the requirements of section 463 of the Act and this section of the 
regulations so that the State IV-D agency may request information from 
the Federal PLS for the purpose of:
    (1) Enforcing any State or Federal law with respect to the unlawful 
taking or restraint of a child; or
    (2) Making or enforcing a child custody or visitation determination.
    (c) An agreement under section 463 of the Act must contain the 
following provisions:
    (1) The Director will provide the State IV-D agency with the most 
recent home address and place of employment of a parent or child if the 
information is requested for the purposes specified in paragraph (b) of 
this section.
    (2) The State shall make requests for information under the 
agreement only for the purposes specified in paragraph (b) of this 
section.
    (3) The State shall make requests to the Federal PLS through the 
State PLS established under Sec.302.35 of this chapter.
    (4) The State shall submit requests in the standard format and 
exchange media normally available to or used by the State PLS.
    (5) The State shall identify requests in a manner prescribed by the 
Office in

[[Page 266]]

instructions so that requests can be distinguished from other types of 
requests submitted to the Federal PLS.
    (6) The State shall impose, collect and account for fees to offset 
the costs to the State and the Office incurred in processing requests.
    (7) The State shall periodically transmit the fees collected to 
cover the costs to the Federal PLS of processing requests. Fees shall be 
transmitted in the amount and in the manner prescribed by the Office in 
instructions.
    (8) The State shall adopt policies and procedures to ensure that 
information shall be used and disclosed solely for the purposes 
specified in paragraph (b) of this section. Under this requirement, the 
State shall:
    (i) Restrict access to the information to authorized persons whose 
duties or responsibilities require access in connection with child 
custody and parental kidnapping cases;
    (ii) Store the information during nonduty hours, or when not in use, 
in a locked container within a secure area that is safe from access by 
unauthorized persons;
    (iii) Process the information under the immediate supervision and 
control of authorized personnel, in a manner which will protect the 
confidentiality of the information, and in such a way that unauthorized 
persons cannot retrieve the information by computer, remote terminal, or 
other means;
    (iv) Brief all employees who will have access to the data on 
security procedures and instructions;
    (v) Send the information directly to the requestor and make no other 
use of the information;
    (vi) After the information is sent to the requestor, destroy any 
confidential records and information related to the request.
    (d)(1) An agreement under section 463 of the Act must be signed by 
the Governor of the State or the Governor's designee.
    (2) The agreement must also be signed by the Attorney General of the 
State who must certify that the signing State official has the authority 
under State law to commit the State to the agreement.

[46 FR 54557, Nov. 3, 1981, as amended at 64 FR 6250, Feb. 9, 1999; 68 
FR 25304, May 12, 2003]



Sec.303.20  Minimum organizational and staffing requirements.

    (a) The organizational structure of the IV-D agency (see Sec.
302.12) provides for administration or supervision of all the functions 
for which it is responsible under the State plan, is appropriate to the 
size and scope of the program in the State, and contains clearly 
established lines for administrative and supervisory authority.
    (b) There is an organizational structure and sufficient staff to 
fulfill the following required State level functions:
    (1) The establishment and administration of the State plan.
    (2) Formal evaluation of the quality, efficiency, effectiveness, and 
scope of services provided under the plan.
    (3) Coordination of activities pursuant to, and assurance of 
compliance with, the requirements of the State's Uniform Interstate 
Family Support Act for cases pursuant to a State plan.
    (4) Requests to the DHHS Office of Child Support Enforcement for use 
of the Federal Parent Locator Service, the U.S. District Courts, and 
Secretary of the U.S. Treasury collection procedures.
    (5) Preparation and submission of reports required by the Office.
    (6) Financial control of the operation of the plan.
    (7) Operation of the State PLS as required under Sec. Sec.302.35, 
303.3, and 303.70 of this chapter.
    (c) There is an organizational structure and sufficient resources at 
the State and local level to meet the performance and time standards 
contained in this part and to provide for the administration or 
supervision of the following support enforcement functions:
    (1) Intake. Activities associated with initial support case opening.
    (2) Establishing the legal obligation to support. Activities related 
to determining the noncustodial parent's legal obligation to support his 
or her dependent children, including paternity determination when 
necessary.

[[Page 267]]

    (3) Locate. Activities associated with locating a noncustodial 
parent.
    (4) Financial assessment. Activities related to determining a 
noncustodial parent's ability to provide support.
    (5) Establishment of the amount of support. Activities related to 
determining a noncustodial parent's child support obligation, including 
methods and terms of payment.
    (6) Collection. Activities related to monitoring payment activities 
and processing cash flow.
    (7) Enforcement. Activities to enforce collection of support, 
including income withholding and other available enforcement techniques.
    (8) Investigation. Activities related to investigation necessary to 
accomplish the functions of this paragraph.
    (d) The functions referred to in paragraphs (b) (1), (2) and (6) of 
this section may not be delegated by the IV-D agency. The functions 
referred to in paragraph (b)(5) of this section may be delegated to the 
extent necessary to report on activities delegated by the IV-D agency.
    (e) No functions under the State plan may be delegated by the IV-D 
agency if such functions are to be performed by caseworkers who are also 
performing the assistance payments or social services functions under 
title IV-A or XX of the Act.

In the case of a sparsely populated geographic area, upon justification 
by the IV-D agency documenting a lack of administrative feasibility in 
not utilizing staff of the IV-A agency, the Office may approve alternate 
arrangements that include sufficient reporting and cost allocation 
methods that will assure compliance with Federal requirements and proper 
claims for Federal financial participation. Under this provision:
    (1) Caseworker means any person who has decision-making authority 
over individual cases on a day-to-day basis and includes, but is not 
limited to such designations as intake worker, eligibility technician, 
caseworker, and social worker.
    (2) The assistance payments function means activities related to 
determination of eligibility for, and amount of financial assistance 
under the approved State plan under title I, IV-A, X, XIV, or XVI, State 
Supplemental income payments under title XVI of the Act, and State or 
local General Assistance programs. It includes the complete process of 
determining initial and continuing eligibility for financial and medical 
assistance and commodities distribution or food stamps.
    (3) The social services function means those activities included in 
the approved State plan and carried out pursuant to title XX of the Act. 
It includes determination of eligibility for, and delivery of services 
to, families and individuals under the approved State plan or under 
title XX of the Act.
    (f) There are the following types of staff in sufficient numbers to 
achieve the standards for an effective program prescribed in this part:
    (1) Attorneys or prosecutors to represent the agency in court or 
administrative proceedings with respect to the establishment and 
enforcement of orders of paternity and support, and
    (2) Other personnel such as legal, interviewer, investigative, 
accounting, clerical, and other supportive staff.
    (g) If it is determined as a result of an audit conducted under part 
305 of this chapter that a State is not in substantial compliance with 
the requirements of title IV-D of the Act, the Secretary will evaluate 
whether inadequate resources was a major contributing factor and, if 
necessary, may set resource standards for the State.

[40 FR 27164, June 26, 1975, as amended at 47 FR 57282, Dec. 23, 1982; 
54 FR 32312, Aug. 4, 1989; 64 FR 6250, Feb. 9, 1999; 68 FR 25304, May 
12, 2003; 73 FR 56443, Sept. 26, 2008; 75 FR 81907, Dec. 29, 2010]



Sec.303.21  Safeguarding and disclosure of confidential information.

    (a) Definitions--(1) Confidential information means any information 
relating to a specified individual or an individual who can be 
identified by reference to one or more factors specific to him or her, 
including but not limited to the individual's Social Security number, 
residential and mailing addresses, employment information, and financial 
information.
    (2) Independent verification is the process of acquiring and 
confirming confidential information through the use of a second source. 
The information

[[Page 268]]

from the second source, which verifies the information about NDNH or FCR 
data, may be released to those authorized to inspect and use the 
information as authorized under the regulations or the Act.
    (b) Scope. The requirements of this section apply to the IV-D 
agency, any other State or local agency or official to whom the IV-D 
agency delegates any of the functions of the IV-D program, any official 
with whom a cooperative agreement as described in Sec.302.34 of this 
part has been entered into, and any person or private agency from whom 
the IV-D agency has purchased services pursuant to Sec.304.22 of this 
chapter.
    (c) General rule. Except as authorized by the Act and implementing 
regulations, an entity described in paragraph (b) of this section may 
not disclose any confidential information, obtained in connection with 
the performance of IV-D functions, outside the administration of the IV-
D program.
    (d) Authorized disclosures. (1) Upon request, the IV-D agency may, 
to the extent that it does not interfere with the IV-D agency meeting 
its own obligations and subject to such requirements as the Office may 
prescribe, disclose confidential information to State agencies as 
necessary to assist them to carry out their responsibilities under plans 
and programs funded under titles IV (including Tribal programs under 
title IV), XIX, or XXI of the Act, and the Supplemental Nutrition 
Assistance Program (SNAP), including:
    (i) Any investigation, prosecution or criminal or civil proceeding 
conducted in connection with the administration of any such plan or 
program; and
    (ii) Information on known or suspected instances of physical or 
mental injury, sexual abuse or exploitation, or negligent treatment or 
maltreatment of a child under circumstances which indicate that the 
child's health or welfare is threatened.
    (2) Upon request, the IV-D agency may disclose information in the 
SDNH, pursuant to sections 453A and 1137 of the Act for purposes of 
income and eligibility verification.
    (3) Authorized disclosures under paragraph (d)(1) and (2) of this 
section shall not include confidential information from the National 
Directory of New Hires or the Federal Case Registry, unless authorized 
under Sec.307.13 of this Chapter or unless it is independently 
verified information. No financial institution data match information 
may be disclosed outside the administration of the IV-D program and no 
IRS information may be disclosed, unless independently verified or 
otherwise authorized in Federal statute. States must have safeguards in 
place as specified in section 454A(d) and (f) of the Act.
    (e) Safeguards. In addition to, and not in lieu of, the safeguards 
described in Sec.307.13 of this chapter, which governs computerized 
support enforcement systems, the IV-D agency shall establish appropriate 
safeguards to comply with the provisions of this section. These 
safeguards shall also include prohibitions against the release of 
information when the State has reasonable evidence of domestic violence 
or child abuse against a party or a child and that the disclosure of 
such information could be harmful to the party or the child, as required 
by section 454(26) of the Act, and shall include use of the family 
violence indicator required under Sec.307.11(f)(1)(x) of this chapter.
    (f) Penalties for unauthorized disclosure. Any disclosure or use of 
confidential information in violation of 42 U.S.C. 653(l)(2) and 
implementing regulations shall be subject to:
    (1) Any State and Federal statutes that impose legal sanctions for 
such disclosure; and
    (2) The maximum civil monetary penalties associated with the 
statutory provisions authorizing civil monetary penalties under 42 
U.S.C. 653(l)(2) as shown in the table at 45 CFR 102.3.

[73 FR 56444, Sept. 26, 2008, as amended at 75 FR 81907, Dec. 29, 2010; 
81 FR 61582, Sept. 6, 2016]



Sec.303.30  Securing medical support information.

    (a) If the IV-A or IV-E agency does not provide the information 
specified in this paragraph to the Medicaid agency and if the 
information is available or can be obtained in a IV-D case for which an 
assignment as defined under Sec.301.1 of this chapter is in effect, 
the

[[Page 269]]

IV-D agency shall obtain the following information on the case:
    (1) Title IV-A case number, title IV-E foster care case number, 
Medicaid number or the individual's social security number;
    (2) Name of noncustodial parent;
    (3) Social security number of noncustodial parent;
    (4) Name and social security number of child(ren);
    (5) Home address of noncustodial parent;
    (6) Name and address of noncustodial parent's place of employment;
    (7) Whether the noncustodial parent has a health insurance policy 
and, if so, the policy name(s) and number(s) and name(s) of person(s) 
covered.
    (b) The IV-D agency shall provide the information obtained under 
paragraph (a) of this section to the Medicaid agency in a timely manner 
by the most efficient and cost-effective means available, using manual 
or automated systems.

(Approved by the Office of Management and Budget under control numbers 
0960-0420 and 0970-0107)

[50 FR 41895, Oct. 15, 1985, as amended at 51 FR 37732, Oct. 24, 1986. 
Redesignated at 54 FR 32312, Aug. 4, 1989; 56 FR 8004, Feb. 26, 1991; 64 
FR 6250, Feb. 9, 1999]



Sec.303.31  Securing and enforcing medical support obligations.

    (a) For purposes of this section:
    (1) Cash medical support means an amount ordered to be paid toward 
the cost of health insurance provided by a public entity or by another 
parent through employment or otherwise, or for other medical costs not 
covered by insurance.
    (2) Health care coverage includes fee for service, health 
maintenance organization, preferred provider organization, and other 
types of private health insurance and public health care coverage under 
which medical services could be provided to the dependent child(ren).
    (3) Cash medical support or the cost of health insurance is 
considered reasonable in cost if the cost to the parent responsible for 
providing medical support does not exceed five percent of his or her 
gross income or, at State option, a reasonable alternative income-based 
numeric standard defined in State law, regulations, or court rule having 
the force of law or State child support guidelines adopted in accordance 
with Sec.302.56(c) of this chapter.
    (b) The State IV-D agency must:
    (1) Petition the court or administrative authority to--
    (i) Include health care coverage that is accessible to the 
child(ren), as defined by the State, and is available to the parent 
responsible for providing medical support and can be obtained for the 
child at reasonable cost, as defined under paragraph (a)(3) of this 
section, in new or modified court or administrative orders for support; 
and
    (ii) Allocate the cost of coverage between the parents.
    (2) If health care coverage described in paragraph (b)(1) of this 
section is not available at the time the order is entered or modified, 
petition to include cash medical support in new or modified orders until 
such time as health care coverage, that is accessible and reasonable in 
cost as defined under paragraph (a)(3) of this section, becomes 
available. In appropriate cases, as defined by the State, cash medical 
support may be sought in addition to health care coverage.
    (3) Establish criteria, which are reflected in a record, to identify 
orders that do not address the health care needs of children based on--
    (i) Evidence that health care coverage may be available to either 
parent at reasonable cost, as defined under paragraph (a)(3) of this 
section; and
    (ii) Facts, as defined by State law, regulation, procedure, or other 
directive, and review and adjustment requirements under Sec.303.8(d) 
of this part, which are sufficient to warrant modification of the 
existing support order to address the health care needs of children in 
accordance with paragraph (b)(1) of this section.
    (4) Petition the court or administrative authority to modify support 
orders, in accordance with State child support guidelines, for cases 
identified in paragraph (b)(3) of this section to include health care 
coverage and/or cash medical support in accordance with paragraphs 
(b)(1) and (2) of this section.
    (5) Periodically communicate with the Medicaid agency to determine 
whether there have been lapses in

[[Page 270]]

health insurance coverage for Medicaid applicants and recipients.
    (c) The IV-D agency shall inform an individual who is eligible for 
services under Sec.302.33 of this chapter that medical support 
services will be provided and shall provide the services specified in 
paragraph (b) of this section.

[73 FR 42441, July 21, 2008, as amended at 81 FR 93566, Dec. 20, 2016]



Sec.303.32  National Medical Support Notice.

    (a) Mandatory State laws. States must have laws, in accordance with 
section 466(a)(19) of the Act, requiring procedures specified under 
paragraph (c) of this section for the use, where appropriate, of the 
National Medical Support Notice (NMSN), to enforce the provision of 
health care coverage for children of noncustodial parents and, at State 
option, custodial parents who are required to provide health care 
coverage through an employment-related group health plan pursuant to a 
child support order and for whom the employer is known to the State 
agency.
    (b) Exception. States are not required to use the NMSN in cases with 
court or administrative orders that stipulate alternative health care 
coverage to employer-based coverage.
    (c) Mandatory procedures. The State must have in effect and use 
procedures under which:
    (1) The State agency must use the NMSN to transfer notice of the 
provision for health care coverage of the child(ren) to employers.
    (2) The State agency must transfer the NMSN to the employer within 
two business days after the date of entry of an employee who is an 
obligor in a IV-D case in the State Directory of New Hires.
    (3) Employers must transfer the NMSN to the appropriate group health 
plan providing any such health care coverage for which the child(ren) is 
eligible (excluding the severable Notice to Withhold for Health Care 
Coverage directing the employer to withhold any mandatory employee 
contributions to the plan) within twenty business days after the date of 
the NMSN.
    (4) Employers must withhold any obligation of the employee for 
employee contributions necessary for coverage of the child(ren) and send 
any amount withheld directly to the plan.
    (5) Employees may contest the withholding based on a mistake of 
fact. If the employee contests such withholding, the employer must 
initiate withholding until such time as the employer receives notice 
that the contest is resolved.
    (6) Employers must notify the State agency promptly whenever the 
noncustodial parent's and, at State option, custodial parent's 
employment is terminated in the same manner as required for income 
withholding cases in accordance with Sec.303.100(e)(1)(x) of this 
part.
    (7) The State agency must promptly notify the employer when there is 
no longer a current order for medical support in effect for which the 
IV-D agency is responsible.
    (8) The State agency, in consultation with the custodial parent, 
must promptly select from available plan options when the plan 
administrator reports that there is more than one option available under 
the plan.
    (d) Effective date. This section is effective October 1, 2001, or, 
if later, the effective date of State laws described in paragraph (a) of 
this section. Such State laws must be effective no later than the close 
of the first day of the first calendar quarter that begins after the 
close of the first regular session of the State legislature that begins 
after October 1, 2001. For States with 2-year legislative sessions, each 
year of such session would be regarded as a separate regular session.

[65 FR 82165, Dec. 27, 2000, as amended at 73 FR 42442, July 21, 2008]



Sec.303.35  Administrative complaint procedure.

    (a) Each State must have in place an administrative complaint 
procedure, defined by the State, in place to allow individuals the 
opportunity to request an administrative review, and take appropriate 
action when there is evidence that an error has occurred or an action 
should have been taken on their case. This includes both individuals in 
the State and individuals from other States.
    (b) A State need not establish a formal hearing process but must 
have

[[Page 271]]

clear procedures in place. The State must notify individuals of the 
procedures, make them available for recipients of IV-D services to use 
when requesting such a review, and use them for notifying recipients of 
the results of the review and any actions taken.

[65 FR 82208, Dec. 27, 2000]



Sec.303.52  Pass-through of incentives to political subdivisions.

    The State must calculate and promptly pay incentives to political 
subdivisions as follows:
    (a) The State IV-D agency must develop a standard methodology for 
passing through an appropriate share of its incentive payment to those 
political subdivisions of the State that participate in the costs of the 
program, taking into account the efficiency and effectiveness of the 
activities carried out under the State plan by those political 
subdivisions. In order to reward efficiency and effectiveness, the 
methodology also may provide for payment of incentives to other 
political subdivisions of the State that administer the program.
    (b) To ensure that the standard methodology developed by the State 
reflects local participation, the State IV-D agency must submit a draft 
methodology to participating political subdivisions for review and 
comment or use the rulemaking process available under State law to 
receive local input.

[54 FR 32312, Aug. 4, 1989]



Sec.303.69  Requests by agents or attorneys of the United States for
information from the Federal Parent Locator Service (PLS).

    (a) Agents or attorneys of the United States may request information 
directly from the Federal PLS in connection with a parental kidnapping 
or child custody case. (See Sec.303.15(a) of this part for a 
definition of persons authorized to request the information.)
    (b) All requests under this section shall be made in the manner and 
form prescribed by the Office.
    (c) All requests under this section shall contain the information 
specified in Sec.303.70(d) of this part.
    (d) All requests under this section shall be accompanied by a 
statement, signed by the agent or attorney of the United States, 
attesting to the following:
    (1) The request is being made solely to locate an individual in 
connection with a parental kidnapping or child custody case.
    (2) Any information obtained through the Federal PLS shall be 
treated as confidential, shall be used solely for the purpose for which 
it was obtained and shall be safeguarded.
    (e) A fee may be charged to cover the costs of processing requests 
for information. A separate fee may be charged to cover costs of 
searching for a social security number before processing a request for 
location information.

(Approved by the Office of Management and Budget under control number 
0960-0258)

[48 FR 38645, Aug. 25, 1983, as amended at 51 FR 37731, Oct. 24, 1986; 
75 FR 81907, Dec. 29, 2010]



Sec.303.70  Procedures for submissions to the State Parent Locator
Service (State PLS) or the Federal Parent Locator Service (Federal
PLS).

    (a) The State agency will have procedures for submissions to the 
State PLS or the Federal PLS for the purpose of locating parents, 
putative fathers, or children for the purpose of establishing parentage 
or establishing, setting the amount of, modifying, or enforcing child 
support obligations; for the purpose of enforcing any Federal or State 
law with respect to the unlawful taking or restraint of a child or 
making or enforcing a child custody or visitation determination as 
defined in section 463(d)(1) of the Act, or for the purpose of assisting 
State agencies to carry out their responsibilities under title IV-D, IV-
A, IV-B, and IV-E programs.
    (b) Only the central State PLS may make submittals to the Federal 
PLS for the purposes specified in paragraph (a) of this section.
    (c) All submittals shall be made in the manner and form prescribed 
by the Office.
    (d) All submittals shall contain the following information:
    (1) The parent's, putative father's or non-parent relative's name;
    (2) The parent's or putative father's Social Security Number (SSN). 
If the SSN is unknown, the IV-D program

[[Page 272]]

must make reasonable efforts to ascertain the individual's SSN before 
making a submittal to the Federal PLS; and
    (3) The non-parent relative's SSN, if known.
    (4) Any other information prescribed by the Office.
    (e) The director of the IV-D agency or his or her designee shall 
attest annually to the following:
    (1)(i) The IV-D agency will only obtain information to facilitate 
the location of any individual in accordance with section 453(a)(2) of 
the Act for the purpose of establishing parentage, establishing, setting 
the amount of, modifying, or enforcing child support obligations, or for 
determining who has or may have parental rights with respect to a child, 
or in accordance with section 453(a)(3) of the Act for enforcing a State 
law with respect to the unlawful taking or restraint of a child, or for 
making or enforcing a child custody or visitation determination as 
defined in section 463(d)(1) of the Act, or in accordance with section 
453(j)(3) of the Act for the purpose of assisting State agencies to 
carry out their responsibilities under title IV-D, IV-A, IV-B, and IV-E 
programs.
    (ii) The IV-D agency will only provide information to the authorized 
persons specified in sections 453(c) or 463(d) of the Act and Sec.
302.35 of this chapter.
    (2) In the case of a submittal made on behalf of a resident parent, 
legal guardian, attorney or agent of a child not receiving assistance 
under title IV-A, the IV-D agency must verify that the requesting 
individual has complied with the provisions of Sec.302.35 of this 
chapter.
    (3) The IV-D agency will treat any information obtained through the 
Federal PLS and SPLS as confidential and shall safeguard the information 
under the requirements of sections 453(b), 453(l), 454(8), 454(26), and 
463(c) of the Act, Sec.303.21 of this part and instructions issued by 
the Office.
    (f)(1) The IV-D agency shall reimburse the Secretary for the fees 
required under:
    (i) Section 453(e)(2) of the Act whenever Federal PLS services are 
furnished to a resident parent, legal guardian, attorney or agent of a 
child not receiving assistance under title IV-A of the Act;
    (ii) Section 454(17) of the Act whenever Federal PLS services are 
furnished in parental kidnapping and child custody or visitation 
determination;
    (iii) Section 453(k)(3) of the Act whenever a State agency receives 
information from the Federal PLS pursuant to section 453 of the Act.
    (2)(i) The IV-D agency may charge an individual requesting 
information, or pay without charging the individual, the fees required 
under sections 453(e)(2), 453(k)(3) or 454(17) of the Act except that 
the IV-D agency shall charge an individual specified in section 
453(c)(3) of the Act the fee required under section 453(e)(2) of the Act
    (ii) The IV-D agency may recover the fee required under section 
453(e)(2) of the Act from the noncustodial parent who owes a support 
obligation to a family on whose behalf the IV-D agency is providing 
services and repay it to the individual requesting information or 
itself.
    (iii) State funds used to pay the fee under section 453(e)(2) of the 
Act are not program expenditures under the State plan but are program 
income under Sec.304.50 of this chapter.
    (3) The fees referenced in paragraph (f)(1) of this section shall be 
in an amount determined to be reasonable payment for the information 
exchange.
    (4)(i) If a State fails to transmit the fees charged by the Office 
under this section, the services provided by the Federal PLS in cases 
subject to the fees may be suspended until payment is received.
    (ii) Fees shall be transmitted in the amount and manner prescribed 
by the Office in instructions.

[73 FR 56445, Sept. 26, 2008, as amended at 75 FR 81907, Dec. 29, 2010]



Sec.303.71  [Reserved]



Sec.303.72  Requests for collection of past-due support by Federal
tax refund offset.

    (a) Past-due support qualifying for offset. Past-due support as 
defined in Sec.301.1 of this chapter qualifies for offset if:

[[Page 273]]

    (1) There has been an assignment of the support rights under section 
408(a)(3) of the Act or section 471(a)(17) of the Act to the State 
making the request for offset or the IV-D agency is providing services 
under Sec.302.33 of this chapter.
    (2) For support that has been assigned to the State under section 
408(a)(3) of the Act or section 471(a)(17) of the Act, the amount of the 
support is not less than $150. The State may combine assigned support 
amounts from the same obligor in multiple cases to reach $150. Amounts 
under this paragraph may not be combined with amounts under paragraph 
(a)(3) of this section to reach the minimum amounts required under this 
paragraph or under paragraph (a)(3) of this section.
    (3) For support owed in cases where the title IV-D agency is 
providing title IV-D services under Sec.302.33 of this chapter:
    (i) The support is owed to or on behalf of a child, or a child and 
the parent with whom the child is living if the same support order 
includes support for the child and the parent.
    (ii) The amount of support is not less than $500. The State may 
combine support amounts from the same obligor in multiple cases where 
the IV-D agency is providing IV-D services under Sec.302.33 of this 
chapter to reach $500. Amounts under this paragraph may not be combined 
with amounts under paragraph (a)(2) of this section to reach the minimum 
amounts required under this paragraph or under paragraph (a)(2) of this 
section.
    (iii) At State option, the amount has accrued since the State IV-D 
agency began to enforce the support order; and
    (iv) The State has checked its records to determine if a title IV-A 
or foster care maintenance assigned arrearage exists with respect to the 
non-IV-A individual or family.
    (4) The IV-D agency has in its records:
    (i) A copy of the order and any modifications upon which the amount 
referred is based which specify the date of issuance and amount of 
support;
    (ii) A copy of the payment record, or, if there is no payment 
record, an affidavit signed by the custodial parent attesting to the 
amount of support owed; and
    (iii) In non-IV-A cases, the custodial parent's current address.
    (5) Before submittal, the State IV-D agency has verified the 
accuracy of the name and social security number of the noncustodial 
parent and the accuracy of the past-due support amount. If the State IV-
D agency has verified this information previously, it need not reverify 
it.
    (6) A notification of liability for past-due support has been 
received by the Secretary of the U.S. Treasury as prescribed by 
paragraph (c)(2) of this section.
    (b) Notification to OCSE of liability for past-due support. (1) A 
State IV-D agency shall submit a notification (or notifications) of 
liability for past-due support to the Office according to the timeframes 
and in the manner specified by the Office in instructions.
    (2) To the extent specified by the Office in instructions, the 
notification of liability for past-due support shall contain with 
respect to each delinquency:
    (i) The name of the taxpayer who owes the past-due support;
    (ii) The social security number of that taxpayer;
    (iii) The amount of past-due support owed;
    (iv) The State codes as contained in the Federal Information 
Processing Standards (FIPS) publication of the National Bureau of 
Standards and also promulgated by the General Services Administration in 
Worldwide Geographical Location Codes; and
    (v) Whether the past-due support is due an individual who applied 
for services under Sec.302.33 of this chapter.
    (3) The notification of liability for past-due support may contain 
with respect to each delinquency the taxpayer's IV-D identifier.
    (c) Review of requests by the Office. (1) The Deputy Director will 
review each request to determine whether it meets the requirements of 
this section.
    (2) If a request meets all requirements, the Deputy Director will 
transmit the request to the Secretary of the U.S. Treasury and will 
notify the State IV-D agency of the transmittal.
    (3) If a request does not meet all requirements, the Deputy Director 
will

[[Page 274]]

attempt to correct the request in consultation with the State IV-D 
agency.
    (4) If a request cannot be corrected through consultation, the 
Deputy Director will return it to the State IV-D agency with an 
explanation of why the request could not be transmitted to the Secretary 
of the U.S. Treasury.
    (d) Notification of changes in case status. (1) The State referring 
past-due support for offset must, in interstate situations, notify any 
other State involved in enforcing the support order when it receives the 
offset amount from the Secretary of the U.S. Treasury.
    (2) The State IV-D agency shall, within timeframes established by 
the Office in instructions, notify the Deputy Director of any deletion 
of, or any change in, the arrears balance, if the change is significant 
according to the guidelines developed by the State. The notification 
shall contain the information specified in paragraph (b) of this 
section.
    (e) Notices of offset--(1) Advance. The State IV-D agency, or the 
Office, if the State requests and the Office agrees, shall send a 
written advance notice to inform a noncustodial parent that the amount 
of his or her past-due support will be referred to the Secretary of the 
U.S. Treasury for collection by Federal tax refund offset. The notice 
must inform noncustodial parents:
    (i) Of their right to contest the State's determination that past-
due support is owed or the amount of past-due support;
    (ii) Of their right to an administrative review by the submitting 
State or at the noncustodial parent's request the State with the order 
upon which the referral for offset is based;
    (iii) Of the procedures and timeframe for contacting the IV-D agency 
in the submitting State to request administrative review; and
    (iv) That, in the case of a joint return, the Secretary of the U.S. 
Treasury will notify the noncustodial parent's spouse at the time of 
offset regarding the steps to take to protect the share of the refund 
which may be payable to that spouse. If the IV-D agency sends the 
notice, it must meet the conditions specified by the Office in 
instructions.
    (2) At offset. The Secretary of the U.S. Treasury will notify the 
noncustodial parent that the offset has been made. The Secretary of the 
U.S. Treasury will also notify any individual who filed a joint return 
with the noncustodial parent of the steps to take in order to secure a 
proper share of the refund.
    (f) Procedures for contesting in intrastate cases. (1) Upon receipt 
of a complaint from a noncustodial parent in response to the advance 
notice required in paragraph (e)(1) of this section or concerning a tax 
refund which has already been offset, the IV-D agency must send a notice 
to the noncustodial parent and, in non-IV-A cases the custodial parent, 
of the time and place of the administrative review of the complaint and 
conduct the review to determine the validity of the complaint.
    (2) If the complaint concerns a joint tax refund that has not yet 
been offset, the IV-D agency must inform the noncustodial parent that 
the Secretary of the U.S. Treasury will notify the noncustodial parent's 
spouse at the time of offset regarding the steps to take to secure his 
or her proper share of the refund. If the complaint concerns a joint tax 
refund which has already been offset, the IV-D agency must refer the 
noncustodial parent to the Secretary of the U.S. Treasury.
    (3) If the administrative review results in a deletion of, or change 
in, the arrears balance, the IV-D agency must notify OCSE within 
timeframes established by the Office and include the information 
specified in paragraph (b) of this section.
    (4) If, as a result of the administrative review, an amount which 
has already been offset is found to have exceeded the amount of past-due 
support owed, the IV-D agency must take steps to refund the excess 
amount to the noncustodial parent promptly.
    (g) Procedures for contesting in interstate cases. (1) If the 
noncustodial parent requests an administrative review in the submitting 
State, the IV-D agency must meet the requirements in paragraph (f) of 
this section.
    (2) If the complaint cannot be resolved by the submitting State and 
the noncustodial parent requests an administrative review in the State 
with the order upon which the referral for offset

[[Page 275]]

is based, the submitting State must notify the State with the order of 
the request for an administrative review and provide that State with all 
necessary information, including the information listed under paragraph 
(a)(4) of this section, within 10 days of the noncustodial parent's 
request for an administrative review.
    (3) The State with the order must send a notice to the noncustodial 
parent and, in non-IV-A cases the custodial parent, of the time and 
place of the administrative review, conduct the review and make a 
decision within 45 days of receipt of the notice and information from 
the submitting State.
    (4) If the administrative review results in a deletion of, or change 
in, the arrears balance, the State with the order upon which the 
referral for offset is based must notify the submitting State within 
timeframes established by the Office and include the information 
specified in paragraph (b) of this section. The submitting State must 
then notify the Office within timeframes established by the Office and 
include the information specified in paragraph (b) of this section.
    (5) Upon resolution of a complaint after an offset has been made, 
the State with the order must notify the submitting State of its 
decision promptly.
    (6) When an administrative review is conducted in the State with the 
order, the submitting State is bound by the decision made by the State 
with the order.
    (7) Based on the decision of the State with the order, the IV-D 
agency in the submitting State must take steps to refund any excess 
amount to the noncustodial parent promptly.
    (8) In computing the arrearage collection performance level under 
Sec.305.2(a)(4) of this chapter, if the case is referred to the State 
with the order for an administrative review, the collections made as a 
result of Federal tax refund offset will be treated as having been 
collected in full by both the submitting State and the State with the 
order.
    (h) Distribution of collections. (1) Collections received by the IV-
D agency as a result of Federal tax refund offset to satisfy title IV-A 
or non-IV-A past-due support shall be distributed as required in 
accordance with section 457 and, effective October 1, 2009, or up to a 
year earlier at State option, in accordance with the option selected 
under section 454(34) of the Act.
    (2) Collections received by the IV-D agency in foster care 
maintenance cases shall be distributed as past-due support under Sec.
302.52(b) (3) and (4) of this chapter.
    (3)(i) Except as provided in paragraph (h)(3)(ii), the IV-D agency 
must inform individuals receiving services under Sec.302.33 of this 
chapter in advance that amounts offset will be applied to satisfy any 
past-due support which has been assigned to the State and submitted for 
Federal tax refund offset.
    (ii) Effective October 1, 2009, or up to a year earlier at State 
option, the IV-D agency need no longer meet the requirement for notice 
under paragraph (h)(3)(i) if the State has opted, under section 454(34) 
of the Act, to apply amounts submitted to Federal tax refund offset 
first to satisfy any current support due and past-due support owed to 
the family.
    (4) If the amount collected is in excess of the amounts required to 
be distributed under section 457 of the Act, the IV-D agency must repay 
the excess to the noncustodial parent whose refund was offset or to the 
parties filing a joint return within a reasonable period in accordance 
with State law.
    (5) In cases where the Secretary of the U.S. Treasury, through OCSE, 
notifies the State that an offset is being made to satisfy non-IV-A 
past-due support from a refund based on a joint return, the State may 
delay distribution until notified that the unobligated spouse's proper 
share of the refund has been paid or for a period not to exceed six 
months from notification of offset, whichever is earlier.
    (6) Collections from offset may be applied only to cases that were 
being enforced by the IV-D agency at the time the advance notice 
described in paragraph (e)(1) of this section was sent.
    (i) Payment of fee. (1) A refund offset fee, in such amount as the 
Secretary of the U.S. Treasury and the Secretary of Health and Human 
Services have agreed to be sufficient to reimburse the U.S. Department 
of Treasury for the

[[Page 276]]

full cost of the offset procedure, shall be deducted from the offset 
amount and credited to the U.S. Department of Treasury appropriations 
which bore all or part of the costs involved in making the collection. 
The full amount of the offset must be credited against the obligor's 
payment record. The fee which the Secretary of the U.S. Treasury may 
impose with respect to non-IV-A submittals shall not exceed $25 per 
submittal.
    (2) The State IV-D agency may charge an individual who is receiving 
services under Sec.302.33(a)(1) (i) or (iii) of this chapter a fee not 
to exceed $25 for submitting past-due support for Federal tax refund 
offset. The State must inform the individual in advance of the amount of 
any fee charged.
    (3) Any State which requests the Office to send the advance written 
notice under paragraph (e)(1) of this section will be charged a fee, in 
an amount established by the Office in instructions, for printing and 
mailing of pre-offset notices. This fee shall be credited to the Health 
and Human Services appropriations which bore all or part of the costs 
involved in making the collection.
    (j) Each State involved in a referral of past-due support for offset 
must comply with instructions issued by the Office.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19651, May 9, 1985; 50 FR 31719, Aug. 6, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 53 FR 47710, Nov. 25, 1988; 54 FR 32312, Aug. 
4, 1989; 56 FR 8005, Feb. 26, 1991; 58 FR 41437, Aug. 4, 1993; 64 FR 
6251, Feb. 9, 1999; 68 FR 25304, May 12, 2003; 68 FR 37980, June 26, 
2003; 68 FR 53052, Sept. 9, 2003; 69 FR 62415, Oct. 26, 2004; 73 FR 
74920, Dec. 9, 2008; 81 FR 93566, Dec. 20, 2016]



Sec.303.100  Procedures for income withholding.

    (a) General withholding requirements. (1) The State must ensure that 
in the case of each noncustodial parent against whom a support order is 
or has been issued or modified in the State, and is being enforced under 
the State plan, so much of his or her income as defined in sections 
466(b)(1) and (8) of the Act must be withheld, in accordance with this 
section, as is necessary to comply with the order.
    (2) In addition to the amount to be withheld to pay the current 
month's obligation, the amount to be withheld must include an amount to 
be applied toward liquidation of overdue support.
    (3) The total amount to be withheld under paragraphs (a)(1), (a)(2) 
and, if applicable, (f)(1)(iii) of this section may not exceed the 
maximum amount permitted under section 303(b) of the Consumer Credit 
Protection Act (15 U.S.C. 1673(b)).
    (4) In the case of a support order being enforced under the State 
plan, the withholding must occur without the need for any amendment to 
the support order involved or any other action by the court or entity 
that issued it other than that required or permitted under this section.
    (5) If there is more than one notice for withholding against a 
single noncustodial parent, the State must allocate amounts available 
for withholding giving priority to current support up to the limits 
imposed under section 303(b) of the Consumer Credit Protection Act (15 
U.S.C. 1673(b)). The State must establish procedures for allocation of 
support among families, but in no case shall the allocation result in a 
withholding for one of the support obligations not being implemented.
    (6) The withholding must be carried out in full compliance with all 
procedural due process requirements of the State.
    (7) The State must have procedures for promptly terminating 
withholding:
    (i) In all cases, when there is no longer a current order for 
support and all arrearages have been satisfied; or,
    (ii) At State option, when the noncustodial parent requests 
termination and withholding has not been terminated previously and 
subsequently initiated, and the noncustodial parent meets the conditions 
for an alternative arrangement set forth under paragraph (b)(3) of this 
section.
    (8) The State must have procedures for promptly refunding to 
noncustodial parents amounts which have been improperly withheld.
    (9) Support orders issued or modified in IV-D cases must include a 
provision requiring the noncustodial parent to

[[Page 277]]

keep the IV-D agency informed of the name and address of his or her 
current employer, whether the noncustodial parent has access to health 
insurance coverage at reasonable cost and, if so, the health insurance 
policy information.
    (b) Immediate withholding on IV-D cases. (1) In the case of a 
support order being enforced under this part that is issued or modified 
on or after November 1, 1990, the income of a noncustodial parent shall 
be subject to withholding, regardless of whether support payments by 
such parent are in arrears, on the effective date of the order, except 
that such income shall not be subject to withholding under this 
paragraph in any case where:
    (i) Either the noncustodial or custodial parent demonstrates, and 
the court or administrative authority finds, that there is good cause 
not to require immediate withholding; or
    (ii) A written agreement is reached between the absent and custodial 
parent, and, at State option, the State in IV-D cases in which there is 
an assignment of support rights to the State, which provides for an 
alternative arrangement.
    (2) For the purposes of this paragraph, any finding that there is 
good cause not to require immediate withholding must be based on at 
least:
    (i) A written determination that, and explanation by the court or 
administrative authority of why, implementing immediate income 
withholding would not be in the best interests of the child; and
    (ii) Proof of timely payment of previously ordered support in cases 
involving the modification of support orders.
    (3) For purposes of this paragraph, ``written agreement'' means a 
written alternative arrangement signed by both the custodial and 
noncustodial parent, and, at State option, by the State in IV-D cases in 
which there is an assignment of support rights to the State, and 
reviewed and entered in the record by the court or administrative 
authority.
    (c) Initiated withholding in IV-D cases. In the case of income not 
subject to immediate withholding under paragraph (b) of this section, 
including cases subject to a finding of good cause or to a written 
agreement:
    (1) The income of the noncustodial parent shall become subject to 
the withholding on the date on which the payments which the noncustodial 
parent has failed to make under a support order are at least equal to 
the support payable for one month or, if earlier, and without regard to 
whether there is an arrearage, the earliest of:
    (i) The date on which the noncustodial parent requests that 
withholding begin;
    (ii) The date on which the custodial parent requests that 
withholding begin, if the State determines, in accordance with such 
procedures and standards as it may establish, that the request should be 
approved; or
    (iii) Such earlier date as State law or procedure may provide.
    (2) The only basis for contesting a withholding under this paragraph 
is a mistake of fact, which for purposes of this paragraph means an 
error in the amount of current or overdue support or in the identity of 
the alleged noncustodial parent.
    (d) Notice to the noncustodial parent in cases of initiated 
withholding. The State must send a notice to the noncustodial parent 
regarding the initiated withholding. The notice must inform the 
noncustodial parent:
    (1) That the withholding has commenced;
    (2) Of the amount of overdue support that is owed, if any, and the 
amount of wages that will be withheld;
    (3) That the provision for withholding applies to any current or 
subsequent employer or period of employment;
    (4) Of the procedures available for contesting the withholding and 
that the only basis for contesting the withholding is a mistake of fact;
    (5) Of the information provided to the employer, pursuant to 
paragraph (e) of this section.
    (e) Notice to the employer for immediate and initiated withholding. 
(1) To initiate withholding, the State must send the noncustodial 
parent's employer a notice using the required OMB-approved Income 
Withholding for Support form that includes the following:

[[Page 278]]

    (i) The amount to be withheld from the noncustodial parent's income, 
and a statement that the amount actually withheld for support and other 
purposes, including the fee specified under paragraph (e)(1)(iii) of 
this section, may not be in excess of the maximum amounts permitted 
under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 
1673(b));
    (ii) That the employer must send the amount to the SDU within 7 
business days of the date the noncustodial parent is paid, and must 
report to the SDU the date on which the amount was withheld from the 
noncustodial parent's income;
    (iii) That, in addition to the amount withheld for support, the 
employer may deduct a fee established by the State for administrative 
costs incurred for each withholding, if the State permits a fee to be 
deducted;
    (iv) That the withholding is binding upon the employer until further 
notice by the State;
    (v) That the employer is subject to a fine to be determined under 
State law for discharging a noncustodial parent from employment, 
refusing to employ, or taking disciplinary action against any 
noncustodial parent because of the withholding;
    (vi) That, if the employer fails to withhold income in accordance 
with the provisions of the notice, the employer is liable for the 
accumulated amount the employer should have withheld from the 
noncustodial parent's income;
    (vii) That the withholding under this section shall have priority 
over any other legal process under State law against the same income;
    (viii) That the employer may combine withheld amounts from 
noncustodial parents' income in a single payment to each appropriate 
agency requesting withholding and separately identify the portion of the 
single payment which is attributable to each individual noncustodial 
parent;
    (ix) That the employer must withhold from the noncustodial parent's 
income the amount specified in the notice and pay such amount to the 
State disbursement unit within 7 business days after the date the income 
would have been paid to the noncustodial parent.
    (x) That the employer must notify the State promptly when the 
noncustodial parent terminates employment and provide the noncustodial 
parent's last known address and the name and address of the noncustodial 
parent's new employer, if known.
    (2) In the case of an immediate withholding under paragraph (b) of 
this section, the State must issue the notice to the employer specified 
in paragraph (e)(1) of this section within 2 business days of the date 
the State's computerized support enforcement system receives notice of 
income and income source from a court, another State, an employer, the 
Federal Parent Locator Service, or another source recognized by the 
State, or the date information regarding a newly hired employee is 
entered into the State Directory of New Hires, or if information is not 
received by the State's computerized support enforcement system or its 
State Directory of New Hires, within 15 calendar days of the date the 
support order is received if the employer's address is known on that 
date, or, if the address is unknown on that date, within 2 business days 
of the date the State's computerized support enforcement system receives 
notice of income and income source from a court, another State, an 
employer, the Federal Parent Locator Service, or another source 
recognized by the State, or the date information regarding a newly hired 
employee is entered into the State Directory of New Hires, or if 
information is not received by the State's computerized support 
enforcement system or its State Directory of New Hires, within 15 
calendar days of locating the employer's address.
    (3) In the case of initiated withholding, the State must send the 
notice to the employer required under paragraph (e)(1) of this section 
within 2 business days of the date the State's computerized support 
enforcement system receives notice of income and income source from a 
court, another State, an employer, the Federal Parent

[[Page 279]]

Locator Service, or another source recognized by the State, or the date 
information regarding a newly hired employee is entered into the State 
Directory of New Hires, or if information is not received by the State's 
computerized support enforcement system or its State Directory of New 
Hires, within 15 calendar days of the date specified in paragraph (c)(1) 
of this section if the employer's address is known on that date, or, 
within 2 business days of the date the State's computerized support 
enforcement system receives notice of income and income source from a 
court, another State, an employer, the Federal Parent Locator Service, 
or another source recognized by the State, or the date information 
regarding a newly hired employee is entered into the State Directory of 
New Hires, or if information is not received by the State's computerized 
support enforcement system or its State Directory of New Hires, within 
15 calendar days of locating the employer's address.
    (4) If the noncustodial parent changes employment within the State 
when a withholding is in effect, the State must notify the noncustodial 
parent's new employer, in accordance with the requirements of paragraph 
(e)(1) of this section, that the withholding is binding on the new 
employer.
    (f) Interstate withholding. (1) The State law must require employers 
to comply with a withholding notice issued by any State.
    (2) When an out-of-State IV-D agency requests direct withholding, 
the employer must be required to withhold funds as directed in the 
notice but to apply the income withholding laws of the noncustodial 
parent's principal place of employment to determine:
    (i) The employer's fee for processing the withholding notice;
    (ii) The maximum amount that may be withheld from the noncustodial 
parent's income;
    (iii) The time periods to implement the withholding notice and to 
remit the withheld income;
    (iv) The priorities for withholding and allocating income withheld 
for multiple child support obligees; and
    (v) Any withholding term or conditions not specified in the 
withholding order.
    (3) In other than direct withholding actions:
    (i) A State may require registration for orders from other States 
for purposes of enforcement through withholding only if registration is 
for the sole purpose of obtaining jurisdiction for enforcement of the 
order; does not confer jurisdiction on the court or agency for any other 
purpose (such as modification of the underlying or original support 
order or resolution of custody or visitation disputes); and does not 
delay implementation of withholding beyond the timeframes established in 
paragraphs (e)(2) and (e)(3) of this section.
    (ii) Within 20 calendar days of a determination that withholding is 
required in a particular case, and, if appropriate, receipt of any 
information necessary to carry out withholding, the initiating State 
must notify the IV-D agency of the State in which the noncustodial 
parent is employed to implement interstate withholding. The notice must 
contain all information necessary to carry out the withholding, 
including the amount requested to be withheld, a copy of the support 
order and a statement of arrearages, if appropriate. If necessary, the 
State where the support order is entered must provide the information 
necessary to carry out the withholding within 30 calendar days of 
receipt of a request for information by the initiating State.
    (iii) The State in which the noncustodial parent is employed must 
implement withholding in accordance with this section upon receipt of 
the notice from the initiating State required in paragraph (f)(3)(ii) of 
this section.
    (iv) The State in which the noncustodial parent is employed must 
notify the State in which the custodial parent is receiving services 
when the noncustodial parent is no longer employed in the State and 
provide the name and address of the noncustodial parent and new 
employer, if known.
    (4) The withholding must be carried out in full compliance with all 
procedural due process requirements of the State in which the 
noncustodial parent is employed.
    (5) Except with respect to when withholding must be implemented 
which is

[[Page 280]]

controlled by the State where the support order was entered, the law and 
procedures of the State in which the noncustodial parent is employed 
shall apply.
    (g) Provision for withholding in all child support orders. Child 
support orders issued or modified in the State whether or not being 
enforced under the State IV-D plan must have a provision for withholding 
of income. This requirement does not alter the requirement governing all 
IV-D cases in paragraph (a)(4) of this section that enforcement under 
the State plan must proceed without the need for a withholding provision 
in the order.
    (h) Notice to employer in all child support orders. The notice to 
employers in all child support orders must be on an OMB-approved Income 
Withholding for Support form.
    (i) Payments sent to the SDU in child support order not enforced 
under the State IV-D plan. Income withholding payments made under child 
support orders initially issued in the State on or after January 1, 1994 
that are not being enforced under the State IV-D plan must be sent to 
the State Disbursement Unit for disbursement to the family in accordance 
with sections 454B and 466(a)(8) and (b)(5) of the Act and Sec.
302.32(a) of this chapter.

[57 FR 30682, July 10, 1992, as amended at 64 FR 6251, 6252, Feb. 9, 
1999; 68 FR 25304, May 12, 2003; 81 FR 93566, Dec. 20, 2016]



Sec.303.101  Expedited processes.

    (a) Definition. Expedited processes means administrative and 
judicial procedures (including IV-D agency procedures) required under 
section 466(a)(2) and (c) of the Act;
    (b) Basic requirement. (1) The State must have in effect and use, in 
interstate and intrastate cases, expedited processes as specified under 
this section to establish paternity and to establish, modify, and 
enforce support orders.
    (2) Under expedited processes:
    (i) In IV-D cases needing support order establishment, regardless of 
whether paternity has been established, action to establish support 
orders must be completed from the date of service of process to the time 
of disposition within the following timeframes: (A) 75 percent in 6 
months; and (B) 90 percent in 12 months.
    (ii) In IV-D cases where a support order has been established, 
actions to enforce the support order must be taken within the timeframes 
specified in Sec. Sec.303.6(c)(2) and 303.100;
    (iii) For purposes of the timeframe at Sec.303.101(b)(2)(i), in 
cases where the IV-D agency uses long-arm jurisdiction and disposition 
occurs within 12 months of service of process on the alleged father or 
noncustodial parent, the case may be counted as a success within the 6 
month tier of the timeframe, regardless of when disposition occurs in 
the 12 month period following service of process.
    (iv) Disposition, as used in paragraphs (b)(2)(i) and (iii) of this 
section, means the date on which a support order is officially 
established and/or recorded or the action is dismissed.
    (c) Safeguards. Under expedited processes:
    (1) Paternities and orders established by means other than full 
judicial process must have the same force and effect under State law as 
paternities and orders established by full judicial process within the 
State;
    (2) The due process rights of the parties involved must be 
protected;
    (3) The parties must be provided a copy of the voluntary 
acknowledgment of paternity, paternity determination, and/or support 
order;
    (4) Action taken may be reviewed under the State's generally 
applicable administrative or judicial procedures.
    (d) Functions. The functions performed by presiding officers under 
expedited processes must include at minimum:
    (1) Taking testimony and establishing a record;
    (2) Evaluating evidence and making recommendations or decisions to 
establish paternity and to establish and enforce orders;
    (3) Accepting voluntary acknowledgment of paternity or support 
liability and stipulated agreements setting the amount of support to be 
paid;
    (4) Entering default orders upon a showing that process has been 
served on the defendant in accordance with State law, that the defendant 
failed to respond to service in accordance with

[[Page 281]]

State procedures, and any additional showing required by State law; and
    (5) Ordering genetic tests in contested paternity cases in 
accordance with Sec.303.5(d)(1).
    (e) Exemption for political subdivisions. A State may request an 
exemption from any of the requirements of this section for a political 
subdivision on the basis of the effectiveness and timeliness of 
paternity establishment, support order issuance or enforcement within 
the political subdivision in accordance with the provisions of Sec.
302.70(d) of this chapter.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19655, May 9, 1985, as amended at 50 FR 23958, June 7, 1985; 59 
FR 66251, Dec. 23, 1994; 64 FR 6252, Feb. 9, 1999; 68 FR 25305, May 12, 
2003]



Sec.303.102  Collection of overdue support by State income tax refund 
offset.

    (a) Overdue support qualifying for offset. Overdue support qualifies 
for State income tax refund offset if:
    (1) There has been an assignment of the support obligation under 
section 408(a)(3) of the Act or section 471(a)(17) of the Act or the IV-
D agency is providing services under Sec.302.33 of this chapter, and
    (2) The State does not determine, using guidelines it must develop 
which are generally available to the public, that the case is 
inappropriate for application of this procedure.
    (b) Accuracy of amounts referred for offset. The IV-D agency must 
establish procedures to ensure that:
    (1) Amounts referred for offset have been verified and are accurate; 
and
    (2) The appropriate State office or agency is notified of any 
significant reductions in (including an elimination of) an amount 
referred for collection by State income tax refund offset.
    (c) Procedures for contesting offset and for reimbursing excess 
amounts offset. (1) The State must establish procedures, which are in 
full compliance with the State's procedural due process requirements, 
for a noncustodial parent to use to contest the referral of overdue 
support for State income tax refund offset.
    (2) If the offset amount is found to be in error or to exceed the 
amount of overdue support, the State IV-D agency must take steps to 
refund the excess amount in accordance with procedures that include a 
mechanism for promptly reimbursing the noncustodial parent.
    (3) The State must establish procedures for ensuring that in the 
event of a joint return, the noncustodial parent's spouse can apply for 
a share of the refund, if appropriate, in accordance with State law.
    (d) Notice to custodial parent. The IV-D agency must inform 
individuals receiving services under Sec.302.33 of this chapter, in 
advance that, for cases in which medical support rights have been 
assigned under 42 CFR 433.146, and amounts are collected which represent 
specific dollar amounts designated in the support order for medical 
purposes, amounts offset will be distributed under Sec.302.51(c) of 
this chapter.
    (e) Advance notice to noncustodial parent. The State must send a 
written advance notice to inform the noncustodial parent of the referral 
for State income tax refund offset and of the opportunity to contest the 
referral.
    (f) Fee for certain cases. The State IV-D agency may charge an 
individual who is receiving services under Sec.302.33(a)(1) (i) or 
(iii) of this chapter a reasonable fee to cover the cost of collecting 
past-due support using State tax refund offset. The State must inform 
the individual in advance of the amount of any fee charged.
    (g) Distribution of collections. (1) The State must distribute 
collections received as a result of State income tax refund offset:
    (i) In accordance with section 457 of the Act and Sec. Sec.302.51 
and 302.52 of this chapter; and
    (ii) For cases in which medical support rights have been assigned 
under 42 CFR 433.146, and amounts are collected which represent specific 
dollar amounts designated in the support order for medical purposes, 
under Sec.302.51(c) of this chapter.
    (2) If the amount collected is in excess of the amounts required to 
be distributed under paragraph (g)(1) of this section, the IV-D agency 
must repay the excess to the noncustodial parent whose State income tax 
refund was offset within a reasonable period in accordance with State 
law.

[[Page 282]]

    (3) The State must credit amounts offset on individual payment 
records.
    (h) Information to the IV-D agency. The State agency responsible for 
processing the State tax refund offset must notify the State IV-D agency 
of the noncustodial parent's home address and social security number or 
numbers. The State IV-D agency must provide this information to any 
other State involved in enforcing the support order.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19655, May 9, 1985; 50 FR 31720, Aug. 6, 1985, as amended at 51 
FR 37731, Oct. 24, 1986; 54 FR 32312, Aug. 4, 1989; 56 FR 8005, Feb. 26, 
1991; 64 FR 6252, Feb. 9, 1999; 68 FR 25305, May 12, 2003]



Sec.303.104  Procedures for posting security, bond or guarantee to
secure payment of overdue support.

    (a) The State shall have in effect and use procedures which require 
that noncustodial parents post security, bond or give some other 
guarantee to secure payment of overdue support.
    (b) The State must provide advance notice to the noncustodial parent 
regarding the delinquency of the support payment and the requirement of 
posting security, bond or guarantee, and inform the noncustodial parent 
of his or her rights and the methods available for contesting the 
impending action, in full compliance with the State's procedural due 
process requirements.
    (c) The State must develop guidelines which are generally available 
to the public to determine whether the case is inappropriate for 
application of this procedure.

(Approved by the Office of Management and Budget under control number 
0960-0385)

[50 FR 19656, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]



Sec.303.106  Procedures to prohibit retroactive modification of child
support arrearages.

    (a) The State shall have in effect and use procedures which require 
that any payment or installment of support under any child support order 
is, on and after the date it is due:
    (1) A judgment by operation of law, with the full force, effect, and 
attributes of a judgment of the State, including the ability to be 
enforced;
    (2) Entitled as a judgment to full faith and credit in such State 
and in any other State; and
    (3) Not subject to retroactive modification by such State or by any 
other State except as provided in paragraph (b) of this section.
    (b) The procedures referred to in paragraph (a)(3) of this section 
may permit modification with respect to any period during which there is 
pending a petition for modification, but only from the date that notice 
of such petition has been given, either directly or through the 
appropriate agent, to the obligee or (where the obligee is the 
petitioner) to the obligor.

[54 FR 15764, Apr. 19, 1989]



Sec.303.107  Requirements for cooperative arrangements.

    The State must ensure that all cooperative arrangements:
    (a) Contain a clear description of the specific duties, functions 
and responsibilities of each party;
    (b) Specify clear and definite standards of performance which meet 
Federal requirements;
    (c) Specify that the parties will comply with title IV-D of the Act, 
implementing Federal regulations and any other applicable Federal 
regulations and requirements;
    (d) Specify the financial arrangements including budget estimates, 
covered expenditures, methods of determining costs, procedures for 
billing the IV-D agency, and any relevant Federal and State 
reimbursement requirements and limitations;
    (e) Specify the kind of records that must be maintained and the 
appropriate Federal, State and local reporting and safeguarding 
requirements; and
    (f) Specify the dates on which the arrangement begins and ends, any 
conditions for revision or renewal, and the circumstances under which 
the arrangement may be terminated.

[54 FR 30223, July 19, 1989]



Sec.303.108  Quarterly wage and unemployment compensation claims 
reporting to the National Directory of New Hires.

    (a) What definitions apply to quarterly wage and unemployment 
compensation

[[Page 283]]

claims reporting? When used in this section:
    (1) Reporting period means time elapsed during a calendar quarter, 
e.g. January-March, April-June, July-September, October-December.
    (2) Wage information means:
    (i) The name of the employee;
    (ii) The social security number of the employee;
    (iii) The aggregate wages of the employee during the reporting 
period; and
    (iv) The name, address (and optionally, any second address for wage 
withholding purposes), and Federal employer identification number of an 
employer reporting wages.
    (3) Unemployment compensation or claim information means:
    (i) Whether an individual is receiving, has received or has applied 
for unemployment compensation;
    (ii) The individual's name and current (or most recent) home 
address;
    (iii) The individual's social security number; and
    (iv) The aggregate gross amount of compensation the claimant 
received during the reporting quarter.
    (b) What data must be transmitted to the National Directory of New 
Hires? The State shall disclose quarterly, to the National Directory of 
New Hires, wage and claim information as defined in paragraph (a) of 
this section that is collected pursuant to a State's unemployment 
compensation program referenced in Title III of the Act or pursuant to 
section 1137 of the Act.
    (c) What timeframes apply for reporting quarterly wage and 
unemployment compensation claims data? The State shall report wage 
information for the reporting period no later than the end of the second 
month following the reporting period. The State shall report claim 
information for the reporting period no later than the end of the first 
month following the reporting period.
    (d) What reporting formats will be used for reporting data? The 
State must use standardized formats established by the Secretary of 
Health and Human Services for reporting wage and claim information.

[63 FR 36190, July 2, 1998; 68 FR 62161, Oct. 31, 2003, as amended at 85 
FR 35207, June 9, 2020]



Sec.303.109  Procedures for State monitoring, evaluation and reporting
on programs funded by Grants to States for Access and Visitation 
Programs.

    (a) Monitoring. The State must monitor all programs funded under 
Grants to States for Access and Visitation Programs to ensure that the 
programs are providing services authorized in section 469B(a) of the 
Act, are being conducted in an effective and efficient manner, are 
complying with Federal evaluation and reporting requirements, and 
contain safeguards to insure the safety of parents and children.
    (b) Evaluation. The State:
    (1) May evaluate all programs funded under Grants to States for 
Access and Visitation Programs;
    (2) Must assist in the evaluation of significant or promising 
projects as determined by the Secretary;
    (c) Reporting. The State must:
    (1) Report a detailed description of each program funded, providing 
the following information, as appropriate: service providers and 
administrators, service area (rural/urban), population served (income, 
race, marital status), program goals, application or referral process 
(including referral sources), voluntary or mandatory nature of the 
programs, types of activities, and length and features of a completed 
program;
    (2) Report data including: the number of applicants/referrals for 
each program, the total number of participating individuals, and the 
number of persons who have completed program requirements by authorized 
activities (mediation--voluntary and mandatory, counseling, education, 
development of parenting plans, visitation enforcement--including 
monitoring, supervision and neutral drop-off and pickup) and development 
of guidelines for visitation and alternative custody arrangements; and
    (3) Report the information required in paragraphs (c)(1) and (c)(2) 
of this section annually, at such time, and in such form, as the 
Secretary may require.

[64 FR 15136, Mar. 30, 1999]

[[Page 284]]



PART 304_FEDERAL FINANCIAL PARTICIPATION--Table of Contents



Sec.
304.10 General administrative requirements.
304.11 Effect of State rules.
304.12 Incentive payments.
304.15 Cost allocation.
304.20 Availability and rate of Federal financial participation.
304.21 Federal financial participation in the costs of cooperative 
          arrangements with courts and law enforcement officials.
304.22 Federal financial participation in purchased support enforcement 
          services.
304.23 Expenditures for which Federal financial participation is not 
          available.
304.24 Equipment--Federal financial participation.
304.25 Treatment of expenditures; due date.
304.26 Determination of Federal share of collections.
304.27 [Reserved]
304.29 Applicability of other regulations.
304.30 Public sources of State's share.
304.40 Repayment of Federal funds by installments.
304.50 Treatment of program income.
304.95 [Reserved]

    Authority: 42 U.S.C. 651 through 655, 657, 1302, 1396a(a)(25), 
1396b(d)(2), 1396b(o), 1396b(p), and 1396(k).

    Source: 40 FR 27166, June 26, 1975, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 304 appear at 64 FR 
6252, Feb. 9, 1999.



Sec.304.10  General administrative requirements.

    As a condition for Federal financial participation, the provisions 
of 45 CFR part 75 (with the exception of 45 CFR 75.306, Cost sharing or 
matching and 45 CFR 75.341, Financial reporting) establishing uniform 
administrative requirements and cost principles shall apply to all 
grants made to States under this part.

[81 FR 93566, Dec. 20, 2016]



Sec.304.11  Effect of State rules.

    Subject to the provisions and limitations of title IV-D of the Act 
and chapter III, Federal financial participation will be available in 
expenditures made under the State plan (including the administration 
thereof) in accordance with applicable State laws, rules, regulations, 
and standards governing expenditures by State and local child support 
enforcement agencies.



Sec.304.12  Incentive payments.

    (a) Definitions. For the purposes of this section:
    Non-title IV-A collections means support collections, on behalf of 
individuals receiving services under this title, satisfying a support 
obligation which has not been assigned under section 408(a)(3) of the 
Act or section 471(a)(17) of the Act, including collections treated in 
accordance with paragraph (b)(4)(ii) of this section .
    Title IV-A collections means support collections satisfying an 
assigned support obligation under section 408(a)(3) of the Act or 
section 471(a)(17) of the Act, including collections treated in 
accordance with paragraph (b)(4)(ii) of this section.
    Total IV-D administrative costs means total IV-D administrative 
expenditures claimed by a State in a specified fiscal year adjusted in 
accordance with paragraphs (b)(4)(iii), (b)(4)(iv) and (b)(4)(v) of this 
section.
    (b) Incentive payments to States. Effective October 1, 1985, the 
Office shall compute incentive payments for States for a fiscal year in 
recognition of title IV-A collections and of non-title IV-A collections.
    (1) A portion of a State's incentive payment shall be computed as a 
percentage of the State's title IV-A collections, and a portion of the 
incentive payment shall be computed as a percentage of its non-title IV-
A collections. The percentages are determined separately for title IV-A 
and non-title IV-A portions of the incentive. The percentages are based 
on the ratio of the State's title IV-A collections to the State's total 
administrative costs and the State's non-title IV-A collections to the 
State's total administrative costs in accordance with the following 
schedule:

------------------------------------------------------------------------
                                                              Percent of
                                                              collection
  Ratio of collections to total IV-D administrative costs     paid as an
                                                              incentive
------------------------------------------------------------------------
Less than 1.4..............................................          6.0
At least 1.4...............................................          6.5
At least 1.6...............................................          7.0
At least 1.8...............................................          7.5
At least 2.0...............................................          8.0
At least 2.2...............................................          8.5
At least 2.4...............................................          9.0
At least 2.6...............................................          9.5
At least 2.8...............................................         10.0
------------------------------------------------------------------------


[[Page 285]]

    (2) The ratios of the State's title IV-A and non-title IV-A 
collections to total IV-D administrative costs will be truncated at one 
decimal place.
    (3) The portion of the incentive payment paid to a State for a 
fiscal year in recognition of its non-title IV-A collections is limited 
to the percentage of the portion of the incentive payment paid for that 
fiscal year in recognition of its title IV-A collections, as follows:
    (i) 100 percent in fiscal years 1986 and 1987;
    (ii) 105 percent in fiscal year 1988;
    (iii) 110 percent in fiscal year 1989; and
    (iv) 115 percent in fiscal year 1990 and thereafter.
    (4) In calculating the amount of incentive payments, the following 
conditions apply:
    (i) Only those title IV-A and non-title IV-A collections distributed 
and expenditures claimed by the State in the fiscal year shall be used 
to determine the incentive payment payable for that fiscal year;
    (ii) Support collected by one State on behalf of individuals 
receiving IV-D services in another State shall be treated as having been 
collected in full by each State;
    (iii) Fees paid by individuals, recovered costs, and program income 
such as interest earned on collections shall be deducted from total IV-D 
administrative costs;
    (iv) At the option of the State, laboratory costs incurred in 
determining paternity may be excluded from total IV-D administrative 
costs; and
    (v) Effective January 1, 1990, amounts expended by the State in 
carrying out a special project under section 455(e) of the Act shall not 
be included in the State's total IV-D administrative costs.
    (vi) Costs of demonstration projects for evaluating model procedures 
for reviewing child support awards under section 103(e) of Public Law 
100-485 shall not be included in the State's total IV-D administrative 
costs.
    (c) Payment of incentives. (1) The Office will estimate the total 
incentive payment that each State will receive for the upcoming fiscal 
year.
    (2) Each State will include one-quarter of the estimated total 
payment in its quarterly collection report which will reduce the amount 
that would otherwise be paid to the Federal government to reimburse its 
share of assistance payments under Sec. Sec.302.51 and 302.52 of this 
chapter.
    (3) Following the end of a fiscal year, the Office will calculate 
the actual incentive payment the State should have received based on the 
reports submitted for that fiscal year. If adjustments to the estimate 
made under paragraph (c)(1) of this section are necessary, the State's 
IV-A grant award will be reduced or increased because of over- or under-
estimates for prior quarters and for other adjustments.

[54 FR 32312, Aug. 4, 1989, as amended at 56 FR 8005, Feb. 26, 1991; 64 
FR 6252, Feb. 9, 1999; 81 FR 93567, Dec. 20, 2016]



Sec.304.15  Cost allocation.

    A State agency in support of its claims under title IV-D of the 
Social Security Act must have an approved cost allocation plan on file 
with the Department in accordance with the requirements contained in 
Subpart E of 45 CFR part 95. Subpart E also sets forth the effect on FFP 
if the requirements contained in that subpart are not met.

[47 FR 17509, Apr. 23, 1982]



Sec.304.20  Availability and rate of Federal financial participation.

    (a) Federal financial participation at the applicable matching rate 
is available for:
    (1) Necessary and reasonable expenditures for child support services 
and activities to carry out the State title IV-D plan;
    (2) Parent locator services for individuals eligible pursuant to 
Sec.302.33 of this title;
    (3) Paternity and support services under the State plan for 
individuals eligible pursuant to Sec.302.33 of this chapter.
    (b) Services and activities for which Federal financial 
participation will be available will be those made to carry out the 
State title IV-D plan, including obtaining child support, locating 
noncustodial parents, and establishing paternity, that are determined by 
the

[[Page 286]]

Secretary to be necessary and reasonable expenditures properly 
attributed to the Child Support Enforcement program including, but not 
limited to the following:
    (1) The administration of the State Child Support Enforcement 
program, including but not limited to the following:
    (i) The establishment and administration of the State plan;
    (ii) Monitoring the progress of program development and operations 
and evaluating the quality, efficiency, effectiveness and scope of 
support enforcement services available in each political subdivision;
    (iii) The establishment of all necessary agreements with other 
Federal, State, and local agencies or private providers to carry out 
Child Support Enforcement program activities in accordance with 
Procurement Standards, 45 CFR 75.326 through 75.340. These agreements 
may include:
    (A) Necessary administrative agreements for support services;
    (B) Utilization of State and local information resources;
    (C) Cooperation with courts and law enforcement officials, and 
Indian Tribes or Tribal organizations pursuant to Sec.302.34 of this 
chapter;
    (iv) Securing compliance with the requirements of the State plan in 
operations under any agreements;
    (v) The development and maintenance of systems for fiscal and 
program records and reports required to be made to the Office based on 
these records;
    (vi) The development of a cost allocation system pursuant to Sec.
304.15 of this chapter;
    (vii) The financial control of the State plan including the 
administration of Federal grants pursuant to Sec.301.15 of this 
chapter;
    (viii) The establishment of agreements with agencies administering 
the State's title IV-A and IV-E plans including criteria for:
    (A) Referring cases to and from the IV-D agency;
    (B) Reporting on a timely basis information necessary to the 
determination and redetermination of eligibility and amount of 
assistance payments;
    (C) The procedures to be used to transfer collections from the IV-D 
agency to the IV-A or IV-E agency before or after the distribution 
described in Sec.302.51 or Sec.302.52, respectively, of this 
chapter;
    (D) The procedures to be used to coordinate services; and
    (E) Agreements to exchange data as authorized by law.
    (ix) The establishment of agreements with State agencies 
administering Medicaid or CHIP, including appropriate criteria for:
    (A) Referring cases to and from the IV-D agency;
    (B) The procedures to be used to coordinate services;
    (C) Agreements to exchange data as authorized by law; and
    (D) Transferring collections from the IV-D agency to the Medicaid 
agency in accordance with Sec.302.51(c) of this chapter.
    (2) The establishment of paternity including, but not limited to:
    (i) Reasonable attempts to determine the identity of the child's 
father such as:
    (A) Investigation;
    (B) The development of evidence including the use of the polygraph 
and genetic tests;
    (C) Pre-trial discovery;
    (ii) Court or other actions to establish paternity pursuant to 
procedures established under State statutes or regulations having the 
effect of law;
    (iii) Identifying competent laboratories that perform genetic tests 
as described in Sec.303.5(c) of this chapter and making a list of 
those laboratories available;
    (iv) Referral of cases to the IV-D agency of another State to 
establish paternity when appropriate;
    (v) Cooperation with other States in determining paternity;
    (vi) Payments up to $20 to hospitals, State birth record agencies, 
and other entities designated by the State and participating in the 
State's voluntary paternity establishment program, under Sec.303.5(g) 
of this chapter, for each voluntary acknowledgment obtained pursuant to 
an agreement with the IV-D agency;
    (vii) Developing and providing to parents and family members, 
hospitals,

[[Page 287]]

State birth records agencies, and other entities designated by the State 
and participating in the State's voluntary paternity establishment 
program, under Sec.303.5(g) of this chapter, educational and outreach 
activities, written and audiovisual materials about paternity 
establishment and forms necessary to voluntarily acknowledge paternity; 
and
    (viii) Reasonable and essential short-term training associated with 
the State's program of voluntary paternity establishment services under 
Sec.303.5(g).
    (3) The establishment and enforcement of support obligations 
including, but not limited to:
    (i) Investigation, the development of evidence and when appropriate, 
bringing court actions;
    (ii) Determination of the amount of the child support obligation 
including developing the information needed for a financial assessment;
    (iii) Referral of cases to the IV-D agency of another State to 
establish a child support obligation when appropriate;
    (iv) Enforcement of a support obligation including those activities 
associated with collections and the enforcement of court orders, such as 
contempt citations, issuance of warrants, investigation, income 
withholding and processing, and the obtaining and enforcing of court-
ordered support through civil or criminal proceedings either in the 
State that granted the order or in another State;
    (v) Bus fare or other minor transportation expenses to enable 
custodial or noncustodial parties to participate in child support 
proceedings and related activities;
    (vi) Services to increase pro se access to adjudicative and 
alternative dispute resolution processes in IV-D cases related to 
providing child support services; and
    (vii) Investigation and prosecution of fraud related to child and 
spousal support.
    (4) The collection and distribution of support payments including:
    (i) An effective system for making collections of established 
support obligations and identifying delinquent cases and attempting to 
collect support from these cases;
    (ii) Referral of cases to the IV-D agency of another State for 
collection when appropriate;
    (iii) Making collections for another State;
    (iv) The distribution of funds as required by this chapter;
    (v) Making the IV-A agency aware of the amounts collected and 
distributed to the family for the purposes of determining eligibility 
for, and amount of, assistance under the State title IV-A plan;
    (vi) Making the Medicaid agency aware of amounts collected and 
distributed to the family for the purposes of determining eligibility 
for assistance under the State XIX plan.
    (5) The establishment and operation of the State parent locator 
service including:
    (i) Utilization of appropriate State and local locate sources to 
locate noncustodial parents;
    (ii) Utilization of the Federal Parent Locator Service;
    (iii) Collection of the fee pursuant to Sec.303.70(e) of this 
chapter;
    (iv) Referral of requests for location of a noncustodial parent to 
the IV-D agency of another State;
    (v) Cooperation with another State in locating a noncustodial 
parent.
    (6) Activities related to requests for certification of collection 
of support delinquencies by the Secretary of the Treasury pursuant to 
Sec.303.71 of this chapter.
    (7) Activities related to requests for utilization of the United 
States district courts pursuant to Sec.303.73 of this chapter.
    (8) Establishing and maintaining case records as required by Sec.
303.2 of this chapter.
    (9) The operation of systems that meet the conditions of Sec.
307.35(a) of this chapter.
    (10) Systems approved in accordance with 45 CFR part 95, subpart F. 
(See Sec.307.35(b) of this chapter.)
    (11) Medical support activities as specified in Sec. Sec.303.30, 
303.31, and 303.32 of this chapter.
    (12) Educational and outreach activities intended to inform the 
public, parents and family members, and young people who are not yet 
parents about

[[Page 288]]

the Child Support Enforcement program, responsible parenting and co-
parenting, family budgeting, and other financial consequences of raising 
children when the parents are not married to each other.

[40 FR 27166, June 26, 1975]

    Editorial Note: For Federal Register citations affecting Sec.
304.20, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.govinfo.gov.



Sec.304.21  Federal financial participation in the costs of 
cooperative arrangements with courts and law enforcement officials.

    (a) General. Subject to the conditions and limitations specified in 
this part, Federal financial participation (FFP) at the applicable 
matching rate is available in the costs of cooperative agreements with 
appropriate courts and law enforcement officials in accordance with the 
requirements of Sec.302.34 of this chapter. Law enforcement officials 
mean district attorneys, attorneys general, similar public attorneys and 
prosecutors and their staff, and corrections officials. When performed 
under agreement, which is reflected in a record, costs of the following 
activities are subject to reimbursement:
    (1) The activities, including administration of such activities, 
specified in Sec.304.20(b)(2) through (8), (11), and (12);
    (2) Reasonable and essential short term training of court and law 
enforcement staff assigned on a full or part time basis to support 
enforcement functions under the cooperative agreement.
    (b) Limitations. Federal financial participation is not available 
in:
    (1) Service of process and court filing fees unless the court or law 
enforcement agency would normally be required to pay the cost of such 
fees;
    (2) Costs of compensation (salary and fringe benefits) of judges;
    (3) Costs of travel and training related to the judicial 
determination process incurred by judges;
    (4) Office-related costs, such as space, equipment, furnishings and 
supplies, incurred by judges;
    (5) Compensation (salary and fringe benefits), travel and training, 
and office-related costs incurred by administrative and support staffs 
of judges;
    (6) Costs of cooperative arrangements that do not meet the 
requirements of Sec.303.107 of this chapter.
    (c) Methods of determining costs. The State IV-D agency has 
discretion with respect to the method of calculating eligible 
expenditures by courts and law enforcement officials under cooperative 
agreements. However, any method used must account for specific costs 
incurred on behalf of cases receiving services under the IV-D State 
plan.
    (d) When agreements take effect. FFP is available in IV-D costs 
incurred as of the first day of the calendar quarter in which a 
cooperative agreement or amendment is signed by parties sufficient to 
create a contractual arrangement under State law.

[47 FR 53017, Nov. 24, 1982, as amended at 47 FR 57284, Dec. 23, 1982; 
50 FR 19656, May 9, 1985; 54 FR 30223, July 19, 1989; 64 FR 6252, Feb. 
9, 1999; 81 FR 93567, Dec. 20, 2016]



Sec.304.22  Federal financial participation in purchased support 
enforcement services.

    Federal financial participation is available at the applicable 
matching rate for the purchase of support enforcement services as 
provided for in the State plan to the extent that payment for such 
purchased services is in accordance with rates of payment established by 
the State which do not exceed the amounts reasonable and necessary to 
assure quality of such service and in the case of such services 
purchased from other public agencies, the cost reasonably assignable to 
such services. The determination that the amounts are reasonable and 
necessary and that the costs are reasonably assignable must be fully 
documented in the IV-D agency records. Support enforcement services 
which may be purchased with Federal financial participation are those 
for which Federal financial participation is otherwise available under 
Sec.304.20 and which are included under the approved State plan.

[40 FR 27166, June 26, 1975, as amended at 47 FR 57282, Dec. 23, 1982; 
50 FR 19656, May 9, 1985]

[[Page 289]]



Sec.304.23  Expenditures for which Federal financial participation
is not available.

    Federal financial participation at the applicable matching rate is 
not available for:
    (a) Activities related to administering titles I, IV-A, IV-B, IV-E, 
X, XIV, XVI, XIX, XX, or XXI of the Act or 7 U.S.C. Chapter 51.
    (b) Purchased support enforcement services which are not secured in 
accordance with Sec.304.22.
    (c) Construction and major renovations.
    (d) Education and training programs and educational services for 
State and county employees and court personnel except direct cost of 
short-term training provided to IV-D agency staff in accordance with 
Sec. Sec.304.20(b)(2)(viii) and 304.21.
    (e) Any expenditures which have been reimbursed by fees collected as 
required by this chapter.
    (f) Any costs of those caseworkers described in Sec.303.20(e) of 
this chapter.
    (g) Any expenditures made to carry out an agreement under Sec.
303.15 of this chapter.
    (h) The costs of counsel for indigent defendants in IV-D actions.
    (i) Any expenditures for jailing of parents in child support 
enforcement cases.
    (j) The costs of guardians ad litem in IV-D actions.

[81 FR 93567, Dec. 20, 2016]



Sec.304.24  Equipment--Federal financial participation.

    Claims for Federal financial participation in the cost of equipment 
under the Child Support Enforcement Program are to be determined in 
accordance with subpart G of 45 CFR part 95. Requirements concerning the 
management and disposition of equipment under the Child Support 
Enforcement Program are also prescribed in subpart G of 45 CFR part 95.

[47 FR 41576, Sept. 21, 1982]



Sec.304.25  Treatment of expenditures; due date.

    (a) Treatment of expenditures. Expenditures are considered to be 
made on the date on which the cash disbursements occur or the date to 
which allocated in accordance with part 75 of this title. In the case of 
local administration, the date of disbursements by the local agency 
governs. In the case of purchase of services from another public agency, 
the date of disbursements by such other public agency governs. Different 
rules may be applied with respect to a State, either generally or for 
particular classes of expenditures only upon justification by the State 
to the Office of Child Support Enforcement and approval by the Office.
    (b) Due date for expenditure statements. The due date for the 
submission of the quarterly statement of expenditures under Sec.301.15 
of this chapter is 45 days after the end of the quarter.

[42 FR 26427, May 24, 1977, as amended at 81 FR 3021, Jan. 20, 2016; 81 
FR 93568, Dec. 20, 2016]



Sec.304.26  Determination of Federal share of collections.

    (a) From the amounts of support collected by the State and retained 
as reimbursement for title IV-A payments and foster care maintenance 
payments under title IV-E, the State shall reimburse the Federal 
government the Federal share of the support collections. In computing 
the Federal share of support collections for assistance payments made 
under titles IV-A and IV-E, the State shall use the Federal medical 
assistance percentage in effect for the fiscal year in which the amount 
is distributed. The Federal medical assistance percentage is:
    (1) 75 percent for Puerto Rico, the Virgin Islands, Guam, and 
American Samoa for the distribution of retained IV-A collections; 55 
percent for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana 
Islands, and American Samoa for the distribution of retained IV-E 
collections; 70 percent for the District of Columbia for the 
distribution of retained IV-E collections; and
    (2) As defined in section 1905(b) of the Act as in effect on 
September 30, 1995, for any other State.
    (b) [Reserved]

[64 FR 6252, Feb. 9, 1999, as amended at 68 FR 25305, May 12, 2003; 81 
FR 93568, Dec. 20, 2016]

[[Page 290]]



Sec.304.27  [Reserved]



Sec.304.29  Applicability of other regulations.

    Sections 201.14 and 201.15 of chapter II of title 45 of the Code of 
Federal Regulations, which establish procedures for disallowance, 
deferral and reconsideration of claims for expenditures submitted by the 
States, shall apply to all expenditures claimed for FFP under title IV-D 
of the Act. For purposes of applying those provisions under title IV-D, 
Service shall read Office which refers to the Office of Child Support 
Enforcement; Administrator shall read Director which refers to the 
Director, Office of Child Support Enforcement; Deputy Administrator 
shall read Deputy Director which refers to the Deputy Director, Office 
of Child Support Enforcement; Regional Commissioner shall read Regional 
Administrator which refers to the Regional Administrator of the 
Administration for Children and Families; and State shall refer to the 
State IV-D agency.

[42 FR 3843, Jan. 21, 1977, as amended at 64 FR 6253, Feb. 9, 1999]



Sec.304.30  Public sources of State's share.

    (a) Public funds, other than those derived from private resources, 
used by the IV-D agency for its child support enforcement program may be 
considered as the State's share in claiming Federal reimbursement where 
such funds are:
    (1) Appropriated directly to the IV-D agency; or
    (2) Funds of another public agency which are:
    (i) Transferred to the IV-D agency and are under its administrative 
control; or
    (ii) Certified by the contributing public agency as representing 
expenditures under the State's IV-D plan, subject to the limitations of 
this part.
    (b) Public funds used by the IV-D agency for its child support 
enforcement program may not be considered as the State's share in 
claiming Federal reimbursement where such funds are:
    (1) Federal funds, unless authorized by Federal law to be used to 
match other Federal funds;
    (2) Used to match other Federal funds.

[41 FR 7105, Feb. 17, 1976]



Sec.304.40  Repayment of Federal funds by installments.

    (a) Basic conditions. When a State has been reimbursed Federal funds 
for expenditures claimed under title IV-D, which is later determined to 
be unallowable for Federal financial participation, the State may make 
repayment of such Federal funds in installments provided:
    (1) The amount of the repayment exceeds 2\1/2\ percent of the 
estimated annual State share of expenditures for the IV-D program as set 
forth in paragraph (b) of this section; and
    (2) The State has notified the OCSE Regional Office in a record of 
its intent to make installment repayments. Such notice must be given 
prior to the time repayment of the total was otherwise due.
    (b) Criteria governing installment repayments. (1) The number of 
quarters over which the repayment of the total unallowable expenditures 
will be made will be determined by the percentage the total of such 
repayment is of the estimated State share of the annual expenditures for 
the IV-D program as follows:

------------------------------------------------------------------------
                                                               Number of
   Total repayment amount as percentage of State share of      quarters
          annual expenditures for the IV-D program              to make
                                                               repayment
------------------------------------------------------------------------
2.5 percent or less.........................................           1
Greater than 2.5, but not greater than 5....................           2
Greater than 5, but not greater than 7.5....................           3
Greater than 7.5, but not greater than 10...................           4
Greater than 10, but not greater than 15....................           5
Greater than 15, but not greater than 20....................           6
Greater than 20, but not greater than 25....................           7
Greater than 25, but not greater than 30....................           8
Greater than 30, but not greater than 47.5..................           9
Greater than 47.5, but not greater than 65..................          10
Greater than 65, but not greater than 82.5..................          11
Greater than 82.5, but not greater than 100.................          12
------------------------------------------------------------------------


The quarterly repayment amounts for each of the quarters in the 
repayment schedule shall not be less than the following percentages of 
estimated State share of the annual expenditures for the program against 
which the recovery is made.

[[Page 291]]



------------------------------------------------------------------------
                                                              Repayment
                                                             installment
                                                              may not be
             For each of the following quarters               less than
                                                                these
                                                             percentages
------------------------------------------------------------------------
1 to 4.....................................................          2.5
5 to 8.....................................................          5.0
9 to 12....................................................         17.5
------------------------------------------------------------------------


If the State chooses to repay amounts representing higher percentages 
during the early quarters, any corresponding reduction in required 
minimum percentages would be applied first to the last scheduled 
payment, then to the next to the last payment, and so forth as 
necessary.
    (2) The latest required financial reports submitted by the State 
shall be used to estimatethe State's share of annual expenditures for 
the IV-D program. That estimated share shall be the sum of the State's 
share of the estimates for four quarters, beginning with the quarter in 
which the first installment is to be paid.
    (3) In case of termination of the program, the actual State share--
rather than the estimate--shall be used for determining whether the 
amount of the repayment exceeds 2\1/2\ percent of the annual State share 
for the IV-D program. The annual State share in these cases will be 
determined using payments computable for Federal funding as reported for 
the program by the State on its Quarterly Report of Expenditures and 
Estimates submitted for the last four quarters preceding the date on 
which the program was terminated.
    (4) Repayment shall be accomplished through adjustment in the 
quarterly grants over the period covered by the repayment schedule.
    (5) The amount of the repayment for purpose of paragraphs (a) and 
(b) of this section may not include any amount previously approved for 
installment repayment.
    (6) The repayment schedule may be extended beyond 12 quarterly 
installments if the total repayment amount exceeds 100% of the estimated 
State share of annual expenditures.

In these circumstances, the criteria in paragraphs (b) (1) and (2) or 
(3) of this section, as appropriate, shall be followed for repayment of 
the amount equal to 100% of the annual State share. The remaining amount 
of the repayment shall be in quarterly amounts not less than those for 
the 9th through 12th quarters.
    (7) The amount of a retroactive claim to be paid a State will be 
offset against any amounts to be, or already being, repaid by the State 
in installments, under the same title of the Social Security Act. Under 
this provision the State may choose to:
    (i) Suspend payments until the retroactive claim due the State has, 
in fact, been offset; or
    (ii) Continue payments until the reduced amount of its debt 
(remaining after the offset), has been paid in full. This second option 
would result in a shorter payment period.

A retroactive claim for the purpose of this regulation is a claim 
applicable to any period ending 12 months or more prior to the beginning 
of the quarter in which the payment is to be made by the Service.

[42 FR 28885, June 6, 1977, as amended at 52 FR 273, Jan. 5, 1987; 64 FR 
6253, Feb. 9, 1999; 68 FR 25305, May 12, 2003; 81 FR 93568, Dec. 20, 
2016]



Sec.304.50  Treatment of program income.

    The IV-D agency must exclude from its quarterly expenditure claims 
an amount equal to:
    (a) All fees which are collected during the quarter under the title 
IV-D State plan; and
    (b) All interest and other income earned during the quarter 
resulting from services provided under the IV-D State plan.

[49 FR 36772, Sept. 19, 1984]



Sec.304.95  [Reserved]



PART 305_PROGRAM PERFORMANCE MEASURES, STANDARDS, FINANCIAL 
INCENTIVES, AND PENALTIES--Table of Contents



Sec.
305.0 Scope.
305.1 Definitions.
305.2 Performance measures.
305.31 Amount of incentive payment.
305.32 Requirements applicable to calculations.

[[Page 292]]

305.33 Determination of applicable percentages based on performance 
          levels.
305.34 Payment of incentives.
305.35 Reinvestment.
305.40 Penalty performance measures and levels.
305.42 Penalty phase-in.
305.60 Types and scope of Federal audits.
305.61 Penalty for failure to meet IV-D requirements.
305.62 Disregard of a failure which is of a technical nature.
305.63 Standards for determining substantial compliance with IV-D 
          requirements.
305.64 Audit procedures and State comments.
305.65 State cooperation in the audit.
305.66 Notice, corrective action year, and imposition of penalty.

    Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

    Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.



Sec.305.0  Scope.

    This part implements the incentive system requirements as described 
in section 458A (to be redesignated as section 458 effective October 1, 
2001) of the Act and the penalty provisions as required in sections 
409(a)(8) and 452(g) of the Act. This part also implements Federal audit 
requirements under sections 409(a)(8) and 452(a)(4) of the Act. Sections 
305.0 through 305.2 contain general provisions applicable to this part. 
Sections 305.31 through 305.36 of this part describe the incentive 
system. Sections 305.40, 305.42 and Sec. Sec.305.60 through 305.66 
describe the penalty and audit processes.

[65 FR 82208, Dec. 27, 2000, as amended at 85 FR 72911, Nov. 16, 2020]



Sec.305.1  Definitions.

    The definitions found in Sec.301.1 of this chapter are also 
applicable to this part. In addition, for purposes of this part:
    (a) The term IV-D case means a parent (mother, father, or putative 
father) who is now or eventually may be obligated under law for the 
support of a child or children receiving services under the title IV-D 
program. A parent is a separate IV-D case for each family with a 
dependent child or children that the parent may be obligated to support. 
If both parents are absent and liable or potentially liable for support 
of a child or children receiving services under the IV-D program, each 
parent is considered a separate IV-D case. In counting cases for the 
purposes of this part, States may exclude cases closed under Sec.
303.11 and cases over which the State has no jurisdiction. Lack of 
jurisdiction cases are those in which a non-custodial parent resides in 
the civil jurisdictional boundaries of another country or federally 
recognized Indian Tribe and no income or assets of this individual are 
located or derived from outside that jurisdiction and the State has no 
other means through which to enforce the order.
    (b) The term Current Assistance collections means collections 
received and distributed on behalf of individuals whose rights to 
support are required to be assigned to the State under title IV-A of the 
Act, under title IV-E of the Act, or under title XIX of the Act. In 
addition, a referral to the State's IV-D agency must have been made.
    (c) The term Former Assistance collections means collections 
received and distributed on behalf of individuals whose rights to 
support were formerly required to be assigned to the State under title 
IV-A (TANF or Aid to Families with Dependent Children, AFDC), title IV-E 
(Foster Care), or title XIX (Medicaid) of the Act.
    (d) The term Never Assistance/Other collections means all other 
collections received and distributed on behalf of individuals who are 
receiving child support enforcement services under title IV-D of the 
Act.
    (e) The term total IV-D dollars expended means total IV-D 
administrative expenditures claimed by a State in a specified fiscal 
year adjusted in accordance with Sec.305.32 of this part.
    (f) The term Consumer Price Index or CPI means the last Consumer 
Price Index for all-urban consumers published by the Department of 
Labor. The CPI for a fiscal year is the average of the Consumer Price 
Index for the 12-month period ending on September 30 of the fiscal year.
    (g) The term State incentive payment share for a fiscal year means 
the incentive base amount for the State for the fiscal year divided by 
the sum of the incentive base amounts for all of the States for the 
fiscal year.

[[Page 293]]

    (h) The term incentive base amount for a fiscal year means the sum 
of the State's performance level percentages (determined in accordance 
with Sec.305.33) multiplied by the State's corresponding maximum 
incentive base on each of the following measures:
    (1) The paternity establishment performance level;
    (2) The support order performance level;
    (3) The current collections performance level;
    (4) The arrears collections performance level; and
    (5) the cost-effectiveness performance level.
    (i) The term reliable data, means the most recent data available 
which are found by the Secretary to be reliable and is a state that 
exists when data are sufficiently complete and error free to be 
convincing for their purpose and context. State data must meet a 95 
percent standard of reliability effective beginning in fiscal year 2001. 
This is with the recognition that data may contain errors as long as 
they are not of a magnitude that would cause a reasonable person, aware 
of the errors, to doubt a finding or conclusion based on the data.
    (j) The term complete data means all reporting elements from OCSE 
reporting forms, necessary to compute a State's performance levels, 
incentive base amount, and maximum incentive base amount, have been 
provided within timeframes established in instructions to these forms 
and Sec.305.32(f) of this part.



Sec.305.2  Performance measures.

    (a) The child support incentive system measures State performance 
levels in five program areas:
    Paternity establishment; support order establishment; current 
collections; arrearage collections; and cost-effectiveness. The penalty 
system measures State performance in three of these areas: Paternity 
establishment; establishment of support orders; and current collections.
    (1) Paternity Establishment Performance Level. States have the 
choice of being evaluated on one of the following two measures for their 
paternity establishment percentage (commonly known as the PEP). The 
count of children shall not include any child who is a dependent by 
reason of the death of a parent (unless paternity is established for 
that child). It shall also not include any child whose parent is found 
to have good cause for refusing to cooperate with the State agency in 
establishing paternity, or for whom the State agency determines it is 
against the best interest of the child to pursue paternity issues.
    (i) IV-D Paternity Establishment Percentage means the ratio that the 
total number of children in the IV-D caseload in the fiscal year (or, at 
the option of the State, as of the end of the fiscal year) who have been 
born out-of-wedlock and for whom paternity has been established or 
acknowledged, bears to the total number of children in the IV-D caseload 
as of the end of the preceding fiscal year who were born out-of-wedlock. 
The equation to compute the measure is as follows (expressed as a 
percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.045

    (ii) Statewide Paternity Establishment Percentage means the ratio 
that the total number of minor children who have been born out-of-
wedlock and for whom paternity has been established or acknowledged 
during the fiscal year,

[[Page 294]]

bears to the total number of children born out-of-wedlock during the 
preceding fiscal year. The equation to compute the measure is as follows 
(expressed as a percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.046

    (2) Support Order Establishment Performance Level. This measure 
requires a determination of whether or not there is a support order for 
each case. These support orders include all types of legally enforceable 
orders, such as court, default, and administrative. Since the measure is 
a case count at a point-in-time, modifications to an order do not affect 
the count. The equation to compute the measure is as follows (expressed 
as a percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.047

    (3) Current Collections Performance Level. Current support is money 
applied to current support obligations and does not include payment 
plans for payment towards arrears. If included, voluntary collections 
must be included in both the numerator and the denominator. This measure 
is computed monthly and the total of all months is reported at the end 
of the year. The equation to compute the measure is as follows 
(expressed as a percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.048

    (4) Arrearage Collection Performance Level. This measure includes 
those cases where all of the past-due support was disbursed to the 
family, or retained by the State because all the support was assigned to 
the State. If some of the past-due support was assigned to the State and 
some was to be disbursed to the family, only those cases where some of 
the support actually went to the family can be included. The equation to 
compute the measure is as follows (expressed as a percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.049

    (5) Cost-Effectiveness Performance Level. Interstate incoming and 
outgoing distributed collections will be included for both the 
initiating and the responding State in this measure. The equation to 
compute this measure is as follows (expressed as a ratio):

[[Page 295]]

[GRAPHIC] [TIFF OMITTED] TR27DE00.050

    (b) For incentive purposes, the measures will be weighted in the 
following manner. Each State will earn five scores based on performance 
on each of the five measures. Each of the first three measures 
(paternity establishment, order establishment, and current collections) 
earn 100 percent of the collections base as defined in Sec.305.31(e) 
of this part. The last two measures (collections on arrears and cost-
effectiveness) earn a maximum of 75 percent of the collections base as 
defined in Sec.305.31(e) of this part.



Sec.305.31  Amount of incentive payment.

    (a) The incentive payment for a State for a fiscal year is equal to 
the incentive payment pool for the fiscal year, multiplied by the State 
incentive payment share for the fiscal year.
    (b) The incentive payment pool is:
    (1) $422,000,000 for fiscal year 2000;
    (2) $429,000,000 for fiscal year 2001;
    (3) $450,000,000 for fiscal year 2002;
    (4) $461,000,000 for fiscal year 2003;
    (5) $454,000,000 for fiscal year 2004;
    (6) $446,000,000 for fiscal year 2005;
    (7) $458,000,000 for fiscal year 2006;
    (8) $471,000,000 for fiscal year 2007;
    (9) $483,000,000 for fiscal year 2008; and
    (10) For any succeeding fiscal year, the amount of the incentive 
payment pool for the fiscal year that precedes such succeeding fiscal 
year multiplied by the percentage (if any) by which the CPI for such 
preceding fiscal year exceeds the CPI for the second preceding fiscal 
year. In other words, for each fiscal year following fiscal year 2008, 
the incentive payment pool will be multiplied by the percentage increase 
in the CPI between the two preceding years. For example, if the CPI 
increases by 1 percent between fiscal years 2007 and 2008, then the 
incentive pool for fiscal year 2009 would be a 1 percent increase over 
the $483,000,000 incentive payment pool for fiscal year 2008, or 
$487,830,000.
    (c) The State incentive payment share for a fiscal year is the 
incentive base amount for the State for the fiscal year divided by the 
sum of the incentive base amounts for all of the States for the fiscal 
year.
    (d) A State's maximum incentive base amount for a fiscal year is the 
State's collections base for the fiscal year for the paternity 
establishment, support order, and current collections performance 
measures and 75 percent of the State's collections base for the fiscal 
year for the arrearage collections and cost-effectiveness performance 
measures.
    (e) A State's maximum incentive base amount for a State for a fiscal 
year is zero, unless a Federal audit performed under Sec.305.60 of 
this part determines that the data submitted by the State for the fiscal 
year and used to determine the performance level involved are complete 
and reliable.
    (f) A State's collections base for a fiscal year is equal to: two 
times the sum of the total amount of support collected for Current 
Assistance cases plus two times the total amount of support collected in 
Former Assistance cases, plus the total amount of support collected in 
Never Assistance/other cases during the fiscal year, that is: 2(Current 
Assistance collections + Former Assistance collections) + all other 
collections.



Sec.305.32  Requirements applicable to calculations.

    In calculating the amount of incentive payments or penalties, the 
following conditions apply:
    (a) Each measure is based on data submitted for the Federal fiscal 
year. The Federal fiscal year runs from October 1st of one year through 
September 30th of the following year.
    (b) Only those Current Assistance, Former Assistance and Never 
Assistance/other collections disbursed and those expenditures claimed by 
the State in the fiscal year will be used to determine the incentive 
payment payable for that fiscal year;
    (c) Support collected by one State at the request of another State 
will be treated as having been collected in full by each State;

[[Page 296]]

    (d) Amounts expended by the State in carrying out a special project 
under section 455(e) of the Act will be excluded from the State's total 
IV-D dollars expended in computing incentive payments;
    (e) Fees paid by individuals, recovered costs, and program income 
such as interest earned on collections will be deducted from total IV-D 
dollars expended; and
    (f) States must submit data used to determine incentives and 
penalties following instructions and formats as required by HHS on 
Office of Management and Budget (OMB) approved reporting instruments. 
Data necessary to calculate performance for incentives and penalties for 
a fiscal year must be submitted to the Office of Child Support 
Enforcement by December 31st, the end of the first quarter after the end 
of the fiscal year. Only data submitted as of December 31st will be used 
to determine the State's performance for the prior fiscal year and the 
amount of incentive payments due the States.



Sec.305.33  Determination of applicable percentages based on
performance levels.

    (a) A State's paternity establishment performance level for a fiscal 
year is, at the option of the State, the IV-D paternity establishment 
percentage or the Statewide paternity establishment percentage 
determined under Sec.305.2 of this part. The applicable percentage for 
each level of a State's paternity establishment performance can be found 
in table 1 of this part, except as provided in paragraph (b) of this 
section.
    (b) If the State's paternity establishment performance level for a 
fiscal year is less than 50 percent, but exceeds its paternity 
establishment performance level for the immediately preceding fiscal 
year by at least 10 percentage points, then the State's applicable 
percentage for the paternity establishment performance level is 50 
percent.
    (c) A State's support order establishment performance level for a 
fiscal year is the percentage of the total number of cases where there 
is a support order determined under Sec. Sec.305.2 and 305.32 of this 
part. The applicable percentage for each level of a State's support 
order establishment performance can be found on table 1 of this part, 
except as provided in paragraph (d) of this section.
    (d) If the State's support order establishment performance level for 
a fiscal year is less than 50 percent, but exceeds the State's support 
order establishment performance level for the immediately preceding 
fiscal year by at least 5 percentage points, then the State's applicable 
percentage is 50 percent.

 Table 1--If the Paternity Establishment or Support Order Establishment
                          Performance Level Is:
  (Use this table to determine the applicable percentage levels for the
   paternity establishment and support order establishment performance
                               measures.)
------------------------------------------------------------------------
                             But less than:           The applicable
  At least: (percent)           (percent)             percentage is:
------------------------------------------------------------------------
              80         ......................               100
              79                       80                      98
              78                       79                      96
              77                       78                      94
              76                       77                      92
              75                       76                      90
              74                       75                      88
              73                       74                      86
              72                       73                      84
              71                       72                      82
              70                       71                      80
              69                       70                      79
              68                       69                      78
              67                       68                      77
              66                       67                      76
              65                       66                      75
              64                       65                      74
              63                       64                      73
              62                       63                      72
              61                       62                      71
              60                       61                      70
              59                       60                      69
              58                       59                      68
              57                       58                      67
              56                       57                      66
              55                       56                      65
              54                       55                      64
              53                       54                      63
              52                       53                      62
              51                       52                      61
              50                       51                      60
               0                       50                       0
------------------------------------------------------------------------

    (e) A State's current collections performance level for a fiscal 
year is equal to the total amount of current support collected during 
the fiscal year divided by the total amount of current support owed 
during the fiscal year in all IV-D cases, determined under Sec. Sec.
305.2 and 305.32 of this part. The applicable percentage with respect to 
a State's current collections performance level can

[[Page 297]]

be found on table 2, except as provided in paragraph (f) of this 
section.
    (f) If the State's current collections performance level for a 
fiscal year is less than 40 percent but exceeds the current collections 
performance level of the State for the immediately preceding fiscal year 
by at least 5 percentage points, then the State's applicable percentage 
is 50 percent.
    (g) A State's arrearage collections performance level for a fiscal 
year is equal to the total number of IV-D cases in which payments of 
past-due child support were received and distributed during the fiscal 
year, divided by the total number of IV-D cases in which there was past-
due child support owed, as determined under Sec. Sec.305.2 and 305.32 
of this part. The applicable percentage with respect to a State's 
arrearage collections performance level can be found on table 2 except 
as provided in paragraph (h) of this section.
    (h) If the State's arrearage collections performance level for a 
fiscal year is less than 40 percent but exceeds the arrearage 
collections performance level for the immediately preceding fiscal year 
by at least 5 percentage points, then the State's applicable percentage 
is 50 percent.

Table 2--If the Current Collections or Arrearage Collections Performance
                                Level Is:
   (Use this table to determine the percentage levels for the current
      collections and arrearage collections performance measures.)
------------------------------------------------------------------------
                                                                  The
                                                    But less  applicable
                At least (percent                    than:    percentage
                                                   (percent)      is:
                                                               (percent)
------------------------------------------------------------------------
80...............................................  .........         100
79...............................................         80          98
78...............................................         79          96
77...............................................         78          94
76...............................................         77          92
75...............................................         76          90
74...............................................         75          88
73...............................................         74          86
72...............................................         73          84
71...............................................         72          82
70...............................................         71          80
69...............................................         70          79
68...............................................         69          78
67...............................................         68          77
66...............................................         67          76
65...............................................         66          75
64...............................................         65          74
63...............................................         64          73
62...............................................         63          72
61...............................................         62          71
60...............................................         61          70
59...............................................         60          69
58...............................................         59          68
57...............................................         58          67
56...............................................         57          66
55...............................................         56          65
54...............................................         55          64
53...............................................         54          63
52...............................................         53          62
51...............................................         52          61
50...............................................         51          60
49...............................................         50          59
48...............................................         49          58
47...............................................         48          57
46...............................................         47          56
45...............................................         46          55
44...............................................         45          54
43...............................................         55          53
42...............................................         43          52
41...............................................         42          51
40...............................................         41          50
0................................................         40           0
------------------------------------------------------------------------

    (i) A State's cost-effectiveness performance level for a fiscal year 
is equal to the total amount of IV-D support collected and disbursed or 
retained, as applicable during the fiscal year, divided by the total 
amount expended during the fiscal year, as determined under Sec. Sec.
305.2 and 305.32 of this part. The applicable percentage with respect to 
a State's cost-effectiveness performance level can be found on table 3.

        Table 3--If the Cost-Effectiveness Performance Level Is:
     (Use this table to determine the percentage level for the cost-
                   effectiveness performance measure.)
------------------------------------------------------------------------
                                                     But less   The app.
                     At least:                        than:       % is
------------------------------------------------------------------------
5.00..............................................  .........        100
4.50..............................................       4.99         90
4.00..............................................       4.50         80
3.50..............................................       4.00         70
3.00..............................................       3.50         60
2.50..............................................       3.00         50
2.00..............................................       2.50         40
0.00..............................................       2.00          0
------------------------------------------------------------------------



Sec.305.34  Payment of incentives.

    (a) Each State must report one-fourth of its estimated annual 
incentive payment on each of its four quarterly collections' reports for 
a fiscal year. When combined with the amounts

[[Page 298]]

claimed on each of the State's four quarterly expenditure reports, the 
portion of the annual estimated incentive payment as reported each 
quarter will be included in the calculation of the next quarterly grant 
awarded to the State under title IV-D of the Act.
    (b) Following the end of each fiscal year, HHS will calculate the 
State's annual incentive payment, using the actual collection and 
expenditure data and the performance data submitted by December 31st by 
the State and other States for that fiscal year. A positive or negative 
grant will then be awarded to the State under title IV-D of the Act to 
reconcile an actual annual incentive payment that has been calculated to 
be greater or lesser, respectively, than the annual incentive payment 
estimated prior to the beginning of the fiscal year.
    (c) Payment of incentives is contingent on a State's data being 
determined complete and reliable by Federal auditors.



Sec.305.35  Reinvestment.

    (a) A State must expend the full amount of incentive payments 
received under this part to supplement, and not supplant, other funds 
used by the State to carry out IV-D program activities or funds for 
other activities approved by the Secretary which may contribute to 
improving the effectiveness or efficiency of the State's IV-D program, 
including cost-effective contracts with local agencies, whether or not 
the expenditures for the activity are eligible for reimbursement under 
this part.
    (b) In those States in which incentive payments are passed through 
to political subdivisions or localities, such payments must be used in 
accordance with this section.
    (c) State IV-D expenditures may not be reduced as a result of the 
receipt and reinvestment of incentive payments.
    (d) A base amount will be determined by subtracting the amount of 
incentive funds received and reinvested in the State IV-D program for 
fiscal year 1998 from the total amount expended by the State in the IV-D 
program during the same period. Alternatively, States have an option of 
using the average amount of the previous three fiscal years (1996, 1997, 
and 1998) as a base amount. This base amount of State spending must be 
maintained in future years. Incentive payments under this part must be 
used in addition to, and not in lieu of, the base amount. Non-compliance 
will result in disallowances of incentive amounts equal to the amount of 
funds supplanted.
    (e) Using the Form OCSE-396, ``Child Support Enforcement Program 
Quarterly Financial Report,'' the State Current Spending Level will be 
calculated by determining the State Share of Total Expenditures Claimed 
for all four quarters of the fiscal year minus State Share of IV-D 
Administrative Expenditures Made Using Funds Received as Incentive 
Payments for all four quarters of the fiscal year, plus the Federal 
Parent Locator Service (FPLS) fees for all four quarters of the fiscal 
year.
    (1) The State Share of Expenditures Claimed is: Total Expenditures 
Claimed for the Current Quarter and the Prior Quarter Adjustments minus 
the Federal Share of Total Expenditures Claimed for the Current Quarter 
and Prior Quarter Adjustments claimed on the Form OCSE-396 for all four 
quarters of the fiscal year.
    (2) The State Share of IV-D Administrative Expenditures Made Using 
Funds Received as Incentive Payments is: IV-D Administrative 
Expenditures Made Using Funds Received as Incentive Payments for the 
Current Quarter and the Prior Quarter Adjustments minus the Federal 
Share of IV-D Administrative Expenditures Made Using Funds Received as 
Incentive Payments for the Current Quarter and Prior Quarter Adjustments 
claimed on the Form OCSE-396 for all four quarters of the fiscal year.
    (3) The Fees for the Use of the Federal Parent Locator Service 
(FPLS) can be computed by adding the FPLS fees claimed on the Form OCSE-
396 for all four quarters of the fiscal year.
    (f) Requests for approval of expending incentives on activities not 
currently eligible for funding under the IV-D program, but which would 
benefit the IV-D program, must be submitted in accordance with 
instructions issued by

[[Page 299]]

the Commissioner of the Office of Child Support Enforcement.

[65 FR 82208, Dec. 27, 2000, as amended at 81 FR 93568, Dec. 20, 2016]



Sec.305.40  Penalty performance measures and levels.

    (a) There are three performance measures for which States must 
achieve certain levels of performance in order to avoid being penalized 
for poor performance. These measures are the paternity establishment, 
support order establishment, and current collections measures set forth 
in Sec.305.2 of this part. The levels the State must meet are:
    (1) The paternity establishment percentage which is required under 
section 452(g) of the Act for penalty purposes. States have the option 
of using either the IV-D paternity establishment percentage or the 
statewide paternity establishment percentage defined in Sec.305.2 of 
this part. Table 4 shows the level of performance at which a State will 
be subject to a penalty under the paternity establishment measure.

     Table 4--Statutory Penalty Performance Standards for Paternity
                              Establishment
 (Use this table to determine the level of performance for the paternity
            establishment measure that will incur a penalty.)
------------------------------------------------------------------------
                                Increase required     Penalty FOR FIRST
             PEP              over previous year's   FAILURE if increase
                                       PEP                 not met
------------------------------------------------------------------------
90% or more.................  None................  No Penalty.
75% to 89%..................  2%..................  1-2% TANF Funds.
50% to 74%..................  3%..................  1-2% TANF Funds.
45% to 49%..................  4%..................  1-2% TANF Funds.
40% to 44%..................  5%..................  1-2% TANF Funds.
39% or less.................  6%..................  1-2% TANF Funds.
------------------------------------------------------------------------

    (2) The support order establishment performance measure is set forth 
in Sec.305.2 of this part. For purposes of the penalty with respect to 
this measure, there is a threshold of 40 percent, below which a State 
will be penalized unless an increase of 5 percent over the previous year 
is achieved--which will qualify it for an incentive. Performance in the 
40 percent to 49 percent range with no significant increase will not be 
penalized but neither will it qualify for an incentive payment. Table 5 
shows at which level of performance a State will incur a penalty under 
the child support order establishment measure.

         Table 5--Performance Standards for Order Establishment
   (Use this table to determine the level of performance for the order
            establishment measure that will incur a penalty.)
------------------------------------------------------------------------
                                  Increase over
      Performance level           previous year       Incentive/Penalty
------------------------------------------------------------------------
50% or more.................  no increase over      Incentive.
                               previous year
                               required.
40% to 49%..................  w/5% increase over    Incentive.
                               previous year.
                              w/out 5% increase...  No Incentive/No
                                                     Penalty.
Less than 40%...............  w/5% increase over    Incentive.
                               previous year.
                              w/out 5% increase...  Penalty equal to 1-
                                                     2% of TANF funds
                                                     for the first
                                                     failure, 2-3% for
                                                     second failure, and
                                                     so forth, up to a
                                                     maximum of 5% of
                                                     TANF funds.
------------------------------------------------------------------------

    (3) The current collections performance measure is set forth in 
Sec.305.2 of this part. There is a threshold of 35 percent below which 
a State will be penalized unless an increase of 5 percent over the 
previous year is achieved (that qualifies it for an incentive). 
Performance in the 35 percent to 40 percent range with no significant 
increase will not be penalized but neither will it qualify for an 
incentive payment. Table 6 shows at which level of performance the State 
will incur a penalty under the current collections measure.

[[Page 300]]



         Table 6--Performance Standards for Current Collections
  (Use this table to determine the level of performance for the current
             collections measure that will incur a penalty.)
------------------------------------------------------------------------
                                  Increase over
      Performance level           previous year       Incentive/Penalty
------------------------------------------------------------------------
40% or more.................  no increase over      Incentive.
                               previous year
                               required.
35% to 39%..................  w/5% increase over    Incentive.
                               previous year.
                              w/out 5% increase...  No Incentive/No
                                                     Penalty.
less than 35%...............  w/5% increase over    Incentive.
                               previous year.
                              w/out 5% increase...  Penalty equal to 1-
                                                     2% of TANF funds
                                                     for the first
                                                     failure, 2-3% for
                                                     second failure, and
                                                     so forth, up to a
                                                     maximum of 5% of
                                                     TANF funds.
------------------------------------------------------------------------

    (b) The provisions listed under Sec.305.32 of this part also apply 
to the penalty performance measures.



Sec.305.42  Penalty phase-in.

    States are subject to the performance penalties described in Sec.
305.40 based on data reported for FY 2001. Data reported for FY 2000 
will be used as a base year to determine improvements in performance 
during FY 2001. There will be an automatic one-year corrective action 
period before any penalty is assessed. The penalties will be assessed 
and then suspended during the corrective action period.



Sec.305.60  Types and scope of Federal audits.

    (a) OCSE will conduct audits, at least once every three years (or 
more frequently if the State fails to meet performance standards and 
reliability of data requirements) to assess the completeness, 
authenticity, reliability, accuracy and security of data and the systems 
used to process the data in calculating performance indicators under 
this part;
    (b) Also, OCSE will conduct audits to determine the adequacy of 
financial management of the State IV-D program, including assessments 
of:
    (1) Whether funds to carry out the State program are being 
appropriately expended, and are properly and fully accounted for; and
    (2) Whether collections and disbursements of support payments are 
carried out correctly and are fully accounted for; and
    (c) OCSE will conduct audits for such other purposes as the 
Secretary may find necessary.
    (1) These audits include audits to determine if the State is 
substantially complying with one or more of the requirements of the IV-D 
program (with the exception of the requirements of section 454(24) of 
the Act relating to statewide-automated systems and section 454(27)(A) 
and (B)(i) relating to the State Disbursement Unit) as defined in Sec.
305.63 of this part. Other audits will be conducted at the discretion of 
OCSE.
    (2) Audits to determine substantial compliance will be initiated 
based on substantiated evidence of a failure by the State to meet IV-D 
program requirements. Evidence, which could warrant an audit to 
determine substantial compliance, includes:
    (i) The results of two or more State self-reviews conducted under 
section 454(15)(A) of the Act which: Show evidence of sustained poor 
performance; or indicate that the State has not corrected deficiencies 
identified in previous self-assessments, or that those deficiencies are 
determined to seriously impact the performance of the State's program; 
or
    (ii) Evidence of a State program's systemic failure to provide 
adequate services under the program through a pattern of non-compliance 
over time.
    (d) OCSE will conduct audits of the State's IV-D program through 
inspection, inquiries, observation, and confirmation and in accordance 
with standards promulgated by the Comptroller General of the United 
States in ``Government Auditing Standards.''



Sec.305.61  Penalty for failure to meet IV-D requirements.

    (a) A State will be subject to a financial penalty and the amounts 
otherwise payable to the State under title IV-A of the Act will be 
reduced in accordance with Sec.305.66:
    (1) If on the basis of:

[[Page 301]]

    (i) Data submitted by the State or the results of an audit conducted 
under Sec.305.60 of this part, the State's program failed to achieve 
the paternity establishment percentages, as defined in section 452(g)(2) 
of the Act and Sec.305.40 of this part, or to meet the support order 
establishment and current collections performance measures as set forth 
in Sec.305.40 of this part; or
    (ii) The results of an audit under Sec.305.60 of this part, the 
State did not submit complete and reliable data, as defined in Sec.
305.1 of the part; or
    (iii) The results of an audit under Sec.305.60 of this part, the 
State failed to substantially comply with one or more of the 
requirements of the IV-D program, as defined in Sec.305.63; and
    (2) With respect to the immediately succeeding fiscal year, the 
State failed to take sufficient corrective action to achieve the 
appropriate performance levels or compliance or the data submitted by 
the State are still incomplete and unreliable.
    (b) The reductions under paragraph (c) of this section will be made 
for quarters following the end of the corrective action year and will 
continue until the end of the first quarter throughout which the State, 
as appropriate:
    (1) Has achieved the paternity establishment percentages, the order 
establishment or the current collections performance measures set forth 
in Sec.305.40 of this part;
    (2) Is in substantial compliance with IV-D requirements as defined 
in Sec.305.63 of this part; or
    (3) Has submitted data that are determined to be complete and 
reliable.
    (c) The payments for a fiscal year under title IV-A of the Act will 
be reduced by the following percentages:
    (1) One to two percent for the first finding under paragraph (a) of 
this section;
    (2) Two to three percent for the second consecutive finding; and
    (3) Not less than three percent and not more than 5 percent for the 
third or a subsequent consecutive finding.
    (d) The reduction will be made in accordance with the provisions of 
45 CFR 262.1(b)-(e) and 262.7.



Sec.305.62  Disregard of a failure which is of a technical nature.

    A State subject to a penalty under Sec.305.61(a)(1)(ii) or (iii) 
of this part may be determined, as appropriate, to have submitted 
adequate data or to have achieved substantial compliance with one or 
more IV-D requirements, as defined in Sec.305.63 of this part, if the 
Secretary determines that the incompleteness or unreliability of the 
data, or the noncompliance with one or more of the IV-D requirements, is 
of a technical nature which does not adversely affect the performance of 
the State's IV-D program or does not adversely affect the determination 
of the level of the State's paternity establishment or other performance 
measures percentages.



Sec.305.63  Standards for determining substantial compliance with
IV-D requirements.

    For the purposes of a determination under Sec.305.61(a)(1)(iii) of 
this part, in order to be found to be in substantial compliance with one 
or more of the IV-D requirements as a result of an audit conducted under 
Sec.305.60 of this part, a State must meet the standards set forth 
below for each specific IV-D State plan requirement or requirements 
being audited and contained in parts 302 and 303 of this chapter, 
measured as follows:
    (a) The State must meet the requirements under the following areas:
    (1) Statewide operations, Sec.302.10 of this chapter;
    (2) Reports and maintenance of records, Sec.302.15(a) of this 
chapter;
    (3) Separation of cash handling and accounting functions, Sec.
302.20 of this chapter; and
    (4) Notice of collection of assigned support, Sec.302.54 of this 
chapter.
    (b) The State must provide services required under the following 
areas in at least 90 percent of the cases reviewed:
    (1) Establishment of cases, Sec.303.2(a) of this chapter; and
    (2) Case closure criteria, Sec.303.11 of this chapter.
    (c) The State must provide services required under the following 
areas in at least 75 percent of the cases reviewed:

[[Page 302]]

    (1) Collection and distribution of support payments, including: 
collection and distribution of support payments by the IV-D agency under 
Sec.302.32(b) of this chapter; distribution of support collections 
under Sec.302.51 of this chapter; and distribution of support 
collected in title IV-E foster care maintenance cases under Sec.302.52 
of this chapter;
    (2) Establishment of paternity and support orders, including: 
Establishment of a case under Sec.303.2(b) of this chapter; services 
to individuals not receiving TANF or title IV-E foster care assistance, 
under Sec.302.33(a)(1) through (4) of this chapter; provision of 
services in intergovernmental IV-D cases under Sec.303.7(a), (b), (c), 
(d)(1) through (5) and (7) through (10), and (e) of this chapter; 
location of non-custodial parents under Sec.303.3 of this chapter; 
establishment of paternity under Sec.303.5(a) and (f) of this chapter; 
guidelines for setting child support awards under Sec.302.56 of this 
chapter; and establishment of support obligations under Sec.303.4(d), 
(e) and (f) of this chapter;
    (3) Enforcement of support obligations, including, in all 
appropriate cases: establishment of a case under Sec.303.2(b) of this 
chapter; services to individuals not receiving TANF or title IV-E foster 
care assistance, under Sec.302.33(a)(1) through (4) of this chapter; 
provision of services in intergovernmental IV-D cases under Sec.
303.7(a), (b), (c), (d)(1) through (5) and (7) through (10), and (e) of 
this chapter; location of non-custodial parents under Sec.303.3 of 
this chapter; enforcement of support obligations under Sec.303.6 of 
this chapter and State laws enacted under section 466 of the Act, 
including submitting once a year all appropriate cases in accordance 
with Sec.303.6(c)(3) of this chapter to State and Federal income tax 
refund offset; and wage withholding under Sec.303.100 of this chapter. 
In cases in which wage withholding cannot be implemented or is not 
available and the non-custodial parent has been located, States must use 
or attempt to use at least one enforcement technique available under 
State law in addition to Federal and State tax refund offset, in 
accordance with State laws and procedures and applicable State 
guidelines developed under Sec.302.70(b) of this chapter;
    (4) Review and adjustment of child support orders, including: 
Establishment of a case under Sec.303.2(b) of this chapter; services 
to individuals not receiving TANF or title IV-E foster care assistance, 
under Sec.302.33(a)(1) through (4) of this chapter; provision of 
services in intergovernmental IV-D cases under Sec.303.7(a), (b), (c), 
(d)(1) through (5) and (7) through (10), and (e) of this chapter; 
location of non-custodial parents under Sec.303.3 of this chapter; 
guidelines for setting child support awards under Sec.302.56 of this 
chapter; and review and adjustment of support obligations under Sec.
303.8 of this chapter; and
    (5) Medical support, including: establishment of a case under Sec.
303.2(b) of this chapter; services to individuals not receiving TANF or 
title IV-E foster care assistance, under Sec.302.33(a)(1) through (4) 
of this chapter; provision of services in intergovernmental IV-D cases 
under Sec.303.7(a), (b), (c), (d)(1) through (5) and (7) through (10), 
and (e) of this chapter; location of non-custodial parents under Sec.
303.3 of this chapter; securing medical support information under Sec.
303.30 of this chapter; and securing and enforcing medical support 
obligations under Sec. Sec.303.31 and 302.32 of this chapter; and
    (6) Disbursement of support payments in accordance with the 
timeframes in section 454B of the Act and Sec.302.32 of this chapter.
    (d) With respect to the 75 percent standard in paragraph (c) of this 
section:
    (1) Notwithstanding timeframes for establishment of cases in Sec.
303.2(b) of this chapter; provision of services in interstate IV-D cases 
under Sec.303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and 
(7) and (10) of this chapter; location and support order establishment 
under Sec.303.3(b)(3) and (5), and Sec.303.4(d) of this chapter, if 
a support order needs to be established in a case and an order is 
established during the audit period in accordance with the State's 
guidelines for setting child support awards, the State will be 
considered to have taken appropriate action in that case for audit 
purposes.
    (2) Notwithstanding timeframes for establishment of cases in Sec.
303.2(b) of

[[Page 303]]

this chapter; provision of services in interstate IV-D cases under Sec.
303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and (7) and (10) 
of this chapter; and location and review and adjustment of support 
orders contained in Sec.303.3(b)(3) and (5), and Sec.303.8 of this 
chapter, if a particular case has been reviewed and meets the conditions 
for adjustment under State laws and procedures and Sec.303.8 of this 
chapter, and the order is adjusted, or a determination is made, as a 
result of a review, during the audit period, that an adjustment is not 
needed, in accordance with the State's guidelines for setting child 
support awards, the State will be considered to have taken appropriate 
action in that case for audit purposes.
    (3) Notwithstanding timeframes for establishment of cases in Sec.
303.2(b) of this chapter; provision of services in interstate IV-D cases 
under Sec.303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and 
(7) and (10) of this chapter; and location and wage withholding in Sec.
303.3(b) (3) and (5), and Sec.303.100 of this chapter, if wage 
withholding is appropriate in a particular case and wage withholding is 
implemented and wages are withheld during the audit period, the State 
will be considered to have taken appropriate action in that case for 
audit purposes.
    (4) Notwithstanding timeframes for establishment of cases in Sec.
303.2(b) of this chapter; provision of services in interstate IV-D cases 
under Sec.303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and 
(7) and (10) of this chapter; and location and enforcement of support 
obligations in Sec.303.3(b) (3) and (5), and Sec.303.6 of this 
chapter, if wage withholding is not appropriate in a particular case, 
and the State uses at least one enforcement technique available under 
State law, in addition to Federal and State income tax refund offset, 
which results in a collection received during the audit period, the 
State will be considered to have taken appropriate action in the case 
for audit purposes.
    (e) The State must meet the requirements for expedited processes 
under Sec.303.101(b)(2)(i) and (iii), and (e) of this chapter.

[65 FR 82208, Dec. 27, 2000, as amended at 73 FR 42442, July 21, 2008; 
75 FR 38644, July 2, 2010; 81 FR 93568, Dec. 20, 2016]



Sec.305.64  Audit procedures and State comments.

    (a) Prior to the start of the actual audit, Federal auditors will 
hold an audit entrance conference with the IV-D agency. At that 
conference, the auditors will explain how the audit will be performed 
and make any necessary arrangements.
    (b) At the conclusion of audit fieldwork, Federal auditors will 
afford the State IV-D agency an opportunity for an audit exit conference 
at which time preliminary audit findings will be discussed and the IV-D 
agency may present any additional matter it believes should be 
considered in the audit findings.
    (c) After the exit conference, Federal auditors will prepare and 
send to the IV-D agency a copy of their interim report on the results of 
the audit. Within a specified timeframe from the date the report was 
sent, the IV-D agency may submit comments, which are reflected in a 
record, on any part of the report which the IV-D agency believes is in 
error. The auditors will note such comments and incorporate any response 
into the final audit report.

[65 FR 82208, Dec. 27, 2000, as amended at 81 FR 93568, Dec. 20, 2016]



Sec.305.65  State cooperation in audit.

    (a) Each State shall make available to the Federal auditors such 
records or other supporting documentation (electronic and manual) as the 
audit staff may request, including records to support the data as 
submitted on the Federal statistical and financial reports that will be 
used to calculate the State's performance. The State shall also make 
available personnel associated with the State's IV-D program to provide 
information that the audit staff may find necessary in order to conduct 
or complete the audit.
    (b) States must provide evidence to Office that their data are 
complete and reliable as defined in Sec.305.1 of this part.
    (c) Failure to comply with the requirements of this section with 
respect

[[Page 304]]

to audits conducted to determine compliance with IV-D requirements under 
Sec.305.60 of this part, may necessitate a finding that the State has 
failed to comply with the particular criteria being audited.

[65 FR 82208, Dec. 27, 2000, as amended at 85 FR 35208, June 9, 2020]



Sec.305.66  Notice, corrective action year, and imposition of penalty.

    (a) If a State is found by the Secretary to be subject to a penalty 
as described in Sec.305.61, the OCSE will notify the State, in a 
record, of such finding.
    (b) The notice will:
    (1) Explain the deficiency or deficiencies which result in the State 
being subject to a penalty, indicate the amount of the potential 
penalty, and give reasons for the finding; and
    (2) Specify that the penalty will be assessed in accordance with the 
provisions of 45 CFR 262.1(b) through (e) and 262.7 if the State is 
found to have failed to correct the deficiency or deficiencies cited in 
the notice during the automatic corrective action year (i.e., the 
succeeding fiscal year following the year with respect to which the 
deficiency occurred.)
    (c) The penalty under Sec.305.61 of this part will be assessed if 
the Secretary determines that the State has not corrected the deficiency 
or deficiencies cited in the notice by the end of the corrective action 
year.
    (d) Only one corrective action period is provided to a State with 
respect to a given deficiency where consecutive findings of 
noncompliance are made with respect to that deficiency. In the case of a 
State against which the penalty is assessed and which failed to correct 
the deficiency or deficiencies cited in the notice by the end of the 
corrective action year, the penalty will be effective for any quarter 
after the end of the corrective action year and ends for the first full 
quarter throughout which the State IV-D program is determined to have 
corrected the deficiency or deficiencies cited in the notice.
    (e) A consecutive finding occurs only when the State does not meet 
the same criterion or criteria cited in the notice in paragraph (a) of 
this section.

[65 FR 82208, Dec. 27, 2000, as amended at 81 FR 93568, Dec. 20, 2016]

                           PART 306 [RESERVED]



PART 307_COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS--Table of Contents



Sec.
307.0 Scope of this part.
307.1 Definitions.
307.5 Mandatory computerized support enforcement systems.
307.10 Functional requirements for computerized support enforcement 
          systems in operation by October 1, 1997.
307.11 Functional requirements for computerized support enforcement 
          systems in operation by October 1, 2000.
307.13 Security and confidentiality for computerized support enforcement 
          systems in operation after October 1, 1997.
307.15 Approval of advance planning documents for computerized support 
          enforcement systems.
307.20 Submittal of advance planning documents for computerized support 
          enforcement systems.
307.25 Review and certification of computerized support enforcement 
          systems.
307.35 Federal financial participation at the applicable matching rate 
          for computerized support enforcement systems.
307.40 Suspension of approval of advance planning documents for 
          computerized support enforcement systems.

    Authority: 42 U.S.C. 652 through 658, 664, 666 through 669A, and 
1302.

    Source: 49 FR 33260, Aug. 22, 1984, unless otherwise noted.



Sec.307.0  Scope of this part.

    This part implements sections 452(d) and (e), 454(16) and (24), 
454A, and 455(a)(1)(A) and (B), and (a)(3)(A) of the Act which 
prescribe:
    (a) The requirement for computerized support enforcement systems;
    (b) The functional requirements that a statewide computerized 
support enforcement system must meet;
    (c) Security and confidentiality requirements for computerized 
support enforcement systems;
    (d) The criteria the Office must determine exist prior to approving 
an advance planning document (APD);
    (e) The requirements and procedures for the submittal of an APD;
    (f) The requirement for continuous review of each approved statewide 
computerized support enforcement system;
    (g) The availability of FFP at the 90 percent rate;

[[Page 305]]

    (h) The availability of FFP at the applicable matching rate; and
    (i) The conditions under which the Office will suspend approval of 
an APD.

[57 FR 47002, Oct. 14, 1992, as amended at 63 FR 44814, Aug. 21, 1998]



Sec.307.1  Definitions.

    (a) Alternative approach to APD requirements means that the State 
has developed an APD that does not meet all conditions for APD approval 
in Sec.307.15(b) resulting in the need for a waiver under Sec.307.5.
    (b) Business day means a day on which State offices are open for 
business.
    (c) Alternative system means the separate manual and/or automated 
processes that perform one or more of the required functions separately 
from the base system and that interfaces with the base system to ensure 
that the State can meet all requirements for purposes of the audit 
prescribed in section 403(h) of the Act. These separate processes may 
involve geographic areas, such as counties; administrative 
jurisdictions, such as courts; or separate means by which the State 
meets particular program requirements, e.g., collection of support for 
non-IV-A cases.
    (d) Alternative system configuration means an alternative to a 
comprehensive computerized support enforcement system. It includes a 
base system with electronic linkages to an alternative system(s), which 
is not part of the State's computerized support enforcement project 
(i.e., not the State's sole system effort), but which is necessary to 
meet the functional requirements of the statewide, comprehensive 
computerized support enforcement system under Sec.307.10, or Sec.
307.11.
    (e) Base system means the hardware, operational software, 
applications software and electronic linkages in an alternative system 
configuration which allow the State to monitor, account for and control 
all support enforcement services and activities under the State plan.
    (f) Certification means approval of an operational computerized 
support enforcement system based on a determination that the system has 
an efficient and effective design and is comprehensive, except where a 
waiver applies.
    (g) Comprehensive means that a computerized support enforcement 
system meets the requirements prescribed in Sec.307.10, or Sec.
307.11 of this part, as further defined in the OCSE guideline entitled 
``Automated Systems for Child Support Enforcement: A Guide for States.''
    (h) Computerized support enforcement system means a comprehensive, 
statewide system or an alternative system configuration which 
encompasses all political subdivisions within the State and which 
effectively and efficiently;
    (1) Introduces, processes, accounts for and monitors data used by 
the Child Support Enforcement program in carrying out activities under 
the State plan; and
    (2) Produces utilization and management information about support 
enforcement services as required by the State IV-D agency and Federal 
government for program administration and audit purposes.
    (i) Planning means: (1) The preliminary project activity to 
determine the requirements necessitating the project, the activities to 
be undertaken, and the resources required to complete the project;
    (2) The preparation of an APD;
    (3) The preparation of a detailed project plan describing when and 
how the computer system will be designed or transferred and adapted; and
    (4) The preparation of a detailed implementation plan describing 
specific training, testing, and conversion plans to install the computer 
system.
    (j) The following terms are defined at 45 CFR part 95, subpart F, in 
Sec.95.605:

``Advance Planning Document'';
``Annually Updated APD'';
``Design'' or ``System Design'';
``Development'';
``Enhancement'';
``Implementation Advance Planning Document'';
``Initial APD'';
``Installation'';
``Operation'';
``Planning Advance Planning Document'';
``Requirements Analysis''; and
``Software''.


[[Page 306]]


    (k) The definitions found in Sec.301.1 of this chapter are also 
applicable to this part.

[57 FR 47002, Oct. 14, 1992, as amended at 63 FR 44814, Aug. 21, 1998; 
68 FR 25305, May 12, 2003]



Sec.307.5  Mandatory computerized support enforcement systems.

    (a) Basic requirement. (1) By October 1, 1997, each State must have 
in effect an operational computerized support enforcement system, which 
meets Federal requirements under Sec.302.85(a)(1) of this chapter, 
OCSE will review each system to certify that these requirements are met; 
and
    (2) By October 1, 2000, each State must have in effect an 
operational computerized support enforcement system, which meets Federal 
requirements under Sec.302.85(a)(2) of this chapter. OCSE will review 
each system to certify that these requirements are met.
    (b) Waiver option. A State may apply for a waiver of any functional 
requirement in Sec.307.10, or Sec.307.11 by presenting a plan for an 
alternative system configuration, or a waiver of any conditions for APD 
approval in Sec.307.15(b) by presenting an alternative approach. 
Waiver requests must be submitted and approved as part of the State's 
APD or APD update.
    (c) Conditions for waiver. The Secretary may grant a State a waiver 
if:
    (1) The State demonstrates that it has an alternative approach to 
the APD requirements or an alternative system configuration that enables 
the State, in accordance with part 305 of this chapter, to be in 
substantial compliance with the other requirements of this chapter; and 
either:
    (2) The waiver request meets the criteria set forth in section 
1115(c) (1), (2) and (3) of the Act; or
    (3) The State provides assurance, which is reflected in a record, 
that steps will be taken to otherwise improve the State's Child Support 
Enforcement program.
    (d) APD submittal requirements for alternative system configuration. 
APDs submitted by States which include requests for waiver for an 
alternative system configuration must, in addition to meeting conditions 
of Sec.307.15(b):
    (1) Describe the State's base system;
    (2) Include a detailed description of the separate automated or 
manual processes the State plans to use and how they will interface with 
the base system;
    (3) Provide documentation that the alternative system configuration 
will enable the State to be in substantial compliance with title IV-D of 
the Act in accordance with section 403(h) of the Act and implementing 
regulations. In addition, if the State is subject to a Notice under 
Sec.305.66 of this part that it did not substantially comply with one 
or more of the requirements of title IV-D of the Act, at the time a 
waiver request is submitted, the State must:
    (i) Demonstrate that the deficiency is not related to or caused by 
the performance of the system; or
    (ii) Specify the corrective action taken to modify the system if the 
system contributed to the deficiency.
    (e) APD submittal requirements for alternative approach. APDs 
submitted by States which include requests for waiver of conditions for 
APD approval in Sec.307.15(b) must demonstrate why meeting the 
conditions is unnecessary or inappropriate.
    (f) Review of waiver requests. (1) The Office will review waiver 
requests to assure that all necessary information is provided, that all 
processes provide for effective and efficient program operation, and 
that the conditions for waiver in paragraph (d) of this section are met.
    (2) When a waiver is approved, it becomes part of the State's 
approved APD. A waiver is subject to the APD suspension provisions in 
Sec.307.40.
    (3) When a waiver is disapproved, the APD will be disapproved. The 
APD disapproval is a final administrative decision and is not subject to 
administrative appeal.
    (g) FFP limitations. (1) The provisions of Sec. Sec.307.30 and 
307.35 apply to requests for FFP for costs of computerized support 
enforcement systems.
    (2) FFP for alternative system configurations is further limited as 
follows:
    (i) FFP is available at the enhanced matching rate for development 
of the base system and for hardware, operational system software, and 
electronic

[[Page 307]]

linkages with the separate components of an alternative system 
configuration.
    (ii) FFP is available at the applicable matching rate for minor 
alterations to the separate automated or manual processes that are part 
of an alternative system configuration and for operating costs including 
hardware, operational software and applications software of a 
computerized support enforcement system.
    (iii) FFP is not available for developing new systems or making 
major changes and enhancements to separate automated or manual processes 
so that alternative system configurations meet conditions for waiver.

[57 FR 47003, Oct. 14, 1992, as amended at 61 FR 67241, Dec. 20, 1996; 
63 FR 44814, Aug. 21, 1998; 81 FR 93568, Dec. 20, 2016; 85 FR 72911, 
Nov. 16, 2020]



Sec.307.10  Functional requirements for computerized support
enforcement systems in operation by October 1, 1997.

    At a minimum, each State's computerized support enforcement system 
established under the title IV-D State plan at Sec.302.85(a)(1) of 
this chapter must:
    (a) Be planned, designed, developed, installed or enhanced in 
accordance with an initial and annually updated APD approved under Sec.
307.15; and
    (b) Control, account for, and monitor all the factors in the support 
collection and paternity determination processes under the State plan. 
At a minimum this must include:
    (1) Maintaining identifying information such as social security 
numbers, names, dates of birth, home addresses and mailing addresses 
(including postal zip codes) on individuals against whom support 
obligations are sought to be established or enforced and on individuals 
to whom support obligations are owed, and other data as required by the 
Office;
    (2) Periodically verifying the information on individuals referred 
to in paragraph (b)(1) of this section with Federal, State and local 
agencies, both intrastate and interstate;
    (3) Maintaining data necessary to meet Federal Reporting 
Requirements on a timely basis as prescribed by the Office;
    (4) Maintaining information pertaining to:
    (i) Delinquency and enforcement activities;
    (ii) Intrastate, interstate and Federal location of absent parents;
    (iii) The establishment of paternity; and
    (iv) The establishment of support obligations;
    (5) Collecting and distributing both intrastate and interstate 
support payments;
    (6) Computing and distributing incentive payments to political 
subdivisions which share in the cost of funding the program and to other 
political subdivisions based on efficiency and effectiveness if the 
State has chosen to pay such incentives;
    (7) Maintaining accounts receivable on all amounts owed, collected, 
and distributed;
    (8) Maintaining costs of all services rendered, either directly or 
by interfacing with State financial management and expenditure 
information;
    (9) Accepting electronic case referrals and update information from 
the State's title IV-A program and using that information to identify 
and manage support enforcement cases;
    (10) Transmitting information electronically to provide data to the 
State's TANF system so that the IV-A agency can determine (and report 
back to the IV-D system) whether a collection of support causes a change 
in eligibility for, or the amount of aid under, the IV-A program;
    (11) Providing security to prevent unauthorized access to, or use 
of, the data in the system;
    (12) Providing management information on all IV-D cases under the 
State plan from initial referral or application through collection and 
enforcement;
    (13) Providing electronic data exchange with the State Medicaid 
system to provide for case referral and the transfer of the medical 
support information specified in 45 CFR 303.30 and 303.31;
    (14) Using automated processes to assist the State in meeting State 
plan requirements under part 302 of this chapter and Standards for 
program operations under part 303 of this chapter, including but not 
limited to:

[[Page 308]]

    (i) The automated maintenance and monitoring of accurate records of 
support payments;
    (ii) Providing automated maintenance of case records for purposes of 
the management and tracking requirements in Sec.303.2 of this chapter;
    (iii) Providing title IV-D case workers with on-line access to 
automated sources of absent parent employer and wage information 
maintained by the State when available, by establishing an electronic 
link or by obtaining an extract of the data base and placing it on-line 
for access throughout the State;
    (iv) Providing locate capability by automatically referring cases 
electronically to locate sources within the State (such as State motor 
vehicle department, State department of revenue, and other State 
agencies), and to the Federal Parent Locator Service and utilizing 
electronic linkages to receive return locate information and place the 
information on-line to title IV-D case workers throughout the State;
    (v) Providing capability for electronic funds transfer for purposes 
of income withholding and interstate collections;
    (vi) Integrating all processing of interstate cases with the 
computerized support enforcement system, including the central registry; 
and
    (15) Providing automated processes to enable the Office to monitor 
State operations and assess program performance through the audit 
conducted under section 452(a) of the Act.

[57 FR 47003, Oct. 14, 1992, as amended at 63 FR 44815, Aug. 21, 1998; 
68 FR 25305, May 12, 2003]



Sec.307.11  Functional requirements for computerized support 
enforcement systems in operation by October 1, 2000.

    At a minimum, each State's computerized support enforcement system 
established and operated under the title IV-D State plan at Sec.
302.85(a)(2) of this chapter must:
    (a) Be planned, designed, developed, installed or enhanced, and 
operated in accordance with an initial and annually updated APD approved 
under Sec.307.15 of this part;
    (b) Control, account for, and monitor all the factors in the support 
collection and paternity determination processes under the State plan. 
At a minimum, this includes the following:
    (1) The activities described in Sec.307.10, except paragraphs 
(b)(3), (8) and (11); and
    (2) The capability to perform the following tasks with the frequency 
and in the manner required under, or by this chapter:
    (i) Program requirements. Performing such functions as the Secretary 
may specify related to management of the State IV-D program under this 
chapter including:
    (A) Controlling and accounting for the use of Federal, State and 
local funds in carrying out the program either directly, through an 
auxiliary system or through an interface with State financial management 
and expenditure information; and
    (B) Maintaining the data necessary to meet Federal reporting 
requirements under this chapter in a timely basis as prescribed by the 
Office;
    (ii) Calculation of Performance Indicators. Enabling the Secretary 
to determine the incentive payments and penalty adjustments required by 
sections 452(g) and 458 of the Act by:
    (A) Using automated processes to:
    (1) Maintain the requisite data on State performance for paternity 
establishment and child support enforcement activities in the State; and
    (2) Calculate the paternity establishment percentage for the State 
for each fiscal year;
    (B) Having in place system controls to ensure the completeness, and 
reliability of, and ready access to, the data described in paragraph 
(b)(2)(i)(A)(1) of this section, and the accuracy of the calculation 
described in paragraph (b)(2)(i)(A)(2) of this section; and
    (iii) System Controls: Having systems controls (e.g., passwords or 
blocking of fields) to ensure strict adherence to the policies described 
in Sec. 307.13(a); and
    (3) Activities described in the Act that were added by the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 
104-193, not otherwise addressed in this part.

[[Page 309]]

    (c) Collection and Disbursement of Support Payments. To the maximum 
extent feasible, assist and facilitate the collection and disbursement 
of support payments through the State disbursement unit operated under 
section 454B of the Act through the performance of functions which, at a 
minimum, include the following:
    (1) Transmission of orders and notices to employers and other 
debtors for the withholding of income:
    (i) Within 2 business days after receipt of notice of income, and 
the income source subject to withholding from a court, another State, an 
employer, the Federal Parent Locator Service, or another source 
recognized by the State; and
    (ii) Using uniform formats prescribed by the Secretary;
    (2) Ongoing monitoring to promptly identify failures to make timely 
payment of support; and
    (3) Automatic use of enforcement procedures, including those under 
section 466(c) of the Act if payments are not timely, and the following 
procedures:
    (i) Identify cases which have been previously identified as 
involving a noncustodial parent who is a recipient of Supplemental 
Security Income (SSI) payments or concurrent SSI payments and Social 
Security Disability Insurance (SSDI) or Social Security Retirement (SSR) 
benefits under title II of the Act, to prevent garnishment of these 
funds from the noncustodial parent's financial account; and
    (ii) Return funds to a noncustodial parent, within 5 business days 
after the agency determines that SSI payments or concurrent SSI payments 
and SSDI or SSR benefits under title II of the Act, in the noncustodial 
parent's financial account have been incorrectly garnished.
    (iii) At the option of the State, identify cases involving a 
noncustodial parent who is a recipient of concurrent SSI payments and 
either SSDI or SSR benefits under title II of the Act and prevent 
garnishment of these funds from the noncustodial parent through an 
income withholding order; and return funds to a noncustodial parent in 
accordance with Sec.303.100(a)(8), after the agency determines that 
concurrent SSI payments and either SSDI or SSR benefits have been 
incorrectly garnished from the noncustodial parent through an income 
withholding order.
    (d) Expedited Administrative Procedures. To the maximum extent 
feasible, be used to implement the expedited administrative procedures 
required by section 466(c) of the Act.
    (e) State case registry. Have a State case registry that meets the 
requirements of this paragraph.
    (1) Definitions. When used in this paragraph and paragraph (f) of 
this section, the following definitions shall apply.
    (i) Participant means an individual who owes or is owed a duty of 
support, imposed or imposable by law, or with respect to or on behalf of 
whom a duty of support is sought to be established, or who is an 
individual connected to an order of support or a child support case 
being enforced.
    (ii) Participant type means the custodial party, non-custodial 
parent, putative father, or child, associated with a case or support 
order contained in the State or Federal case registry.
    (iii) locate request type refers to the purpose of the request for 
additional matching services on information sent to the Federal case 
registry, for example, a IV-D locate (paternity or support establishment 
or support enforcement), parental kidnapping or custody and visitation.
    (iv) locate source type refers to the external sources a locate 
submitter desires the information sent to the Federal case registry to 
also be matched against.
    (2) The State case registry shall contain a record of:
    (i) Every IV-D case receiving child support enforcement services 
under an approved State plan; and
    (ii) Every support order established or modified in the State on or 
after October 1, 1998.
    (3) Standardized data elements shall be included for each 
participant. These data elements shall include:
    (i) Names;
    (ii) Social security numbers;
    (iii) Dates of birth;
    (iv) Case identification numbers;
    (v) Other uniform identification numbers;

[[Page 310]]

    (vi) Data elements required under paragraph (f)(1) of this section 
necessary for the operation of the Federal case registry;
    (vii) Issuing State of an order; and
    (viii) Any other information that the Secretary may require.
    (4) The record required under paragraph (e)(2) of this section shall 
include information for every case in the State case registry receiving 
services under an approved State plan that has a support order in 
effect. The information must include:
    (i) The amount of monthly (or other frequency) support owed under 
the order;
    (ii) Other amounts due or overdue under the order including 
arrearages, interest or late payment penalties and fees;
    (iii) Any amounts described in paragraph (e)(4) (i) and (ii) of this 
section that have been collected;
    (iv) The distribution of such collected amounts;
    (v) The birth date and, beginning no later than October 1, 1999, the 
name and social security number of any child for whom the order requires 
the provision of support; and
    (vi) The amount of any lien imposed in accordance with section 
466(a)(4) of the Act to enforce the order.
    (5) Establish and update, maintain, and regularly monitor case 
records in the State case registry for cases receiving services under 
the State plan. To ensure information on an established IV-D case is up 
to date, the State should regularly update the system to make changes to 
the status of a case, the participants of a case, and the data contained 
in the case record. This includes the following:
    (i) Information on administrative and judicial orders related to 
paternity and support;
    (ii) Information obtained from comparisons with Federal, State or 
local sources of information;
    (iii) Information on support collections and distributions; and
    (iv) Any other relevant information.
    (6) States may link local case registries of support orders through 
an automated information network in meeting paragraph (e)(2)(ii) of this 
section provided that all other requirements of this paragraph are met.
    (f) Information Comparisons and other Disclosures of Information. 
Extract information, at such times and in such standardized format or 
formats, as may be required by the Secretary, for purposes of sharing 
and comparing with, and receiving information from, other data bases and 
information comparison services, to obtain or provide information 
necessary to enable the State, other States, the Office or other Federal 
agencies to carry out this chapter. As applicable, these comparisons and 
disclosures must comply with the requirements of section 6103 of the 
Internal Revenue Code of 1986 and the requirements of section 453 of the 
Act. The comparisons and sharing of information include:
    (1) Effective October 1, 1998, (or for the child data, not later 
than October 1, 1999) furnishing the following information to the 
Federal case registry on participants in cases receiving services under 
the State plan and in support orders established or modified on or after 
October 1, 1998, and providing updates of such information within five 
(5) business days of receipt by the IV-D agency of new or changed, 
information, including information which would necessitate adding or 
removing a Family Violence indicator and notices of the expiration of 
support orders:
    (i) State Federal Information Processing Standard (FIPS) code and 
optionally, county code;
    (ii) State case identification number;
    (iii) State member identification number;
    (iv) Case type (IV-D, non-IV-D);
    (v) Social security number and any necessary alternative social 
security numbers;
    (vi) Name, including first, middle, last name and any necessary 
alternative names;
    (vii) Sex (optional);
    (viii) Date of birth;
    (ix) Participant type (custodial party, non-custodial parent, 
putative father, child);
    (x) Family violence indicator (domestic violence or child abuse);
    (xi) Indication of an order;
    (xii) Locate request type (optional);
    (xiii) Locate source (optional); and

[[Page 311]]

    (xiv) Any other information of the Secretary may require.
    (2) Requesting or exchanging information with the Federal parent 
locator service for the purposes specified in section 453 of the Act;
    (3) Exchanging information with State agencies, both within and 
outside of the State, administering programs under titles IV-A and XIX 
of the Act, as necessary to perform State agency responsibilities under 
this chapter and under such programs; and
    (4) Exchanging information with other agencies of the State, and 
agencies of other States, and interstate information networks, as 
necessary and appropriate, to assist the State and other States in 
carrying out the purposes of this chapter.

[63 FR 44815, Aug. 21, 1998, as amended at 81 FR 93568, Dec. 20, 2016; 
85 FR 35208, June 9, 2020]



Sec.307.13  Security and confidentiality for computerized support
enforcement systems in operation after October 1, 1997.

    The State IV-D agency shall:
    (a) Information integrity and security. Have safeguards protecting 
the integrity, accuracy, completeness of, access to, and use of data in 
the computerized support enforcement system. These safeguards shall 
include written policies concerning access to data by IV-D agency 
personnel, and the sharing of data with other persons to:
    (1) Permit access to and use of data to the extent necessary to 
carry out the State IV-D program under this chapter;
    (2) Specify the data which may be used for particular IV-D program 
purposes, and the personnel permitted access to such data;
    (3) Permit disclosure of information to State agencies administering 
programs under titles IV (including Tribal programs under title IV), 
XIX, and XXI of the Act, and SNAP, to the extent necessary to assist 
them to carry out their responsibilities under such programs in 
accordance with section 454A(f)(3) of the Act, to the extent that it 
does not interfere with the IV-D program meeting its own obligations and 
subject to such requirements as prescribed by the Office.
    (4) Prohibit the disclosure of NDNH, FCR, financial institution, and 
IRS information outside the IV-D program except that:
    (i) IRS information is restricted as specified in the Internal 
Revenue Code;
    (ii) Independently verified information other than financial 
institution information may be released to authorized persons;
    (iii) NDNH and FCR information may be disclosed without independent 
verification to IV-B and IV-E agencies to locate parents and putative 
fathers for the purpose of establishing parentage or establishing 
parental rights with respect to a child; and
    (iv) NDNH and FCR information may be disclosed without independent 
verification to title IV-D, IV-A, IV-B and IV-E agencies for the purpose 
of assisting States to carry out their responsibilities to administer 
title IV-D, IV-A, IV-B and IV-E programs.
    (b) Monitoring of access. Monitor routine access to and use of the 
computerized support enforcement system through methods such as audit 
trails and feedback mechanisms to guard against, and promptly identify 
unauthorized access or use;
    (c) Training and information. Have procedures to ensure that all 
personnel, including State and local staff and contractors, who may have 
access to or be required to use confidential program data in the 
computerized support enforcement system are:
    (1) Informed of applicable requirements and penalties, including 
those in section 6103 of the Internal Revenue Service Code and section 
453 of the Act; and
    (2) Adequately trained in security procedures; and
    (d) Penalties. Have administrative penalties, including dismissal 
from employment, for unauthorized access to, disclosure or use of 
confidential information.

[63 FR 44816, Aug. 21, 1998, as amended at 73 FR 56445, Sept. 26, 2008; 
75 FR 81908, Dec. 29, 2010]

[[Page 312]]



Sec.307.15  Approval of advance planning documents for computerized 
support enforcement systems.

    (a) Approval of an APD. The Office shall not approve the APD and 
annually updated APD unless the document, when implemented, will carry 
out the requirements of Sec.307.10, or Sec.307.11 of this part. 
Conditions for APD approval are specified in this section.
    (b) Conditions for initial approval. In order to be approvable, an 
APD for a statewide computerized support enforcement system described 
under Sec.307.10, or Sec.307.11 must meet the following 
requirements:
    (1) The APD must represent the sole systems effort being undertaken 
by the State in accordance with Sec.307.10, or Sec.307.11. If the 
State is requesting a waiver under Sec.302.85 of this chapter, the APD 
must specify the conditions for which waiver is requested;
    (2) The APD must specify how the objectives of the computerized 
support enforcement system in Sec.307.10, or Sec.307.11 will be 
carried out throughout the State; this includes a projection of how the 
proposed system will meet the functional requirements of Sec.307.10, 
or Sec.307.11 and how the single State system will encompass all 
political subdivisions in the State by October 1, 1997, or October 1, 
2000 respectively.
    (3) The APD must assure the feasibility of the proposed effort and 
provide for the conduct of a requirements analysis study which address 
all system components within the State and includes consideration of the 
program mission, functions, organization, services and constraints 
related to the computerized support enforcement system;
    (4) The APD must indicate how the results of the requirements 
analysis study will be incorporated into the proposed system design, 
development, installation or enhancement;
    (5) The APD must contain a description of each component within the 
proposed computerized support enforcement system as required by Sec.
307.10, or Sec.307.11 and must describe information flows, input data, 
and output reports and uses;
    (6) The APD must describe the security requirements to be employed 
in the proposed computerized support enforcement system;
    (7) The APD must describe the intrastate and interstate interfaces 
set forth in Sec.307.10, or Sec.307.11 to be employed in the 
proposed computerized support enforcement system;
    (8) The APD must describe the projected resource requirements for 
staff, hardware, and other needs and the resources available or expected 
to be available to meet the requirements;
    (9) The APD must contain a proposed budget and schedule of life-
cycle milestones relative to the size, complexity and cost of the 
project which at a minimum address requirements analysis, program 
design, procurement and project management; and, a description of 
estimated expenditures by category and amount for:
    (i) Items that are eligible for funding at the enhanced matching 
rate, and
    (ii) Items related to developing and operating the system that are 
eligible for Federal funding at the applicable matching rate;
    (10) The APD must contain an implementation plan and backup 
procedures to handle possible failures in system planning, design, 
development, installation or enhancement.
    (i) These backup procedures must include provision for independent 
validation and verification (IV&V) analysis of a State's system 
development effort in the case of States:
    (A) That do not have in place a statewide automated child support 
enforcement system that meets the requirements of the FSA of 1988;
    (B) States which fail to meet a critical milestone, as identified in 
their APDs;
    (C) States which fail to timely and completely submit APD updates;
    (D) States whose APD indicates the need for a total system redesign;
    (E) States developing systems under waivers pursuant to section 
452(d)(3) of the Social Security Act; or,
    (F) States whose system development efforts we determine are at risk 
of failure, significant delay, or significant cost overrun.
    (ii) Independent validation and verification efforts must be 
conducted by an entity that is independent from the State (unless the 
State receives an

[[Page 313]]

exception from OCSE) and the entity selected must:
    (A) Develop a project workplan. The plan must be provided directly 
to OCSE at the same time it is given to the State.
    (B) Review and make recommendations on both the management of the 
project, both State and vendor, and the technical aspects of the 
project. The IV&V provider must provide the results of its analysis 
directly to OCSE at the same time it reports to the State.
    (C) Consult with all stakeholders and assess the user involvement 
and buy-in regarding system functionality and the system's ability to 
meet program needs.
    (D) Conduct an analysis of past project performance sufficient to 
identify and make recommendations for improvement.
    (E) Provide risk management assessment and capacity planning 
services.
    (F) Develop performance metrics which allow tracking project 
completion against milestones set by the State.
    (iii) The RFP and contract for selecting the IV&V provider (or 
similar documents if IV&V services are provided by other State agencies) 
must include the experience and skills of the key personnel proposed for 
the IV&V analysis and specify by name the key personnel who actually 
will work on the project and must be submitted to OCSE for prior 
approval.
    (11) The APD must describe each system considered during planning 
including the advantages of selecting the proposed solution. If a 
transfer system is not selected as the proposed solution, a transfer 
system must be among those systems considered. If a system that is 
already in place in the State could be enhanced to meet the requirements 
for a computerized support enforcement system, that system must be among 
the solutions considered;
    (12) The APD must contain a cost benefit analysis of the proposed 
computerized support enforcement system and all alternatives considered 
that describes the proposed improvements to the IV-D program in both 
qualitative and quantitative terms;
    (13) The APD must specify the basis for determining direct and 
indirect costs of the computerized support enforcement system during 
development and operation, including the methodology for determining 
costs of planning, design, development, installation or enhancement that 
are eligible for 90 percent Federal funding versus costs of development 
and operations that are eligible for Federal funding at the applicable 
matching rate;
    (14) The APD must contain a statement indicating the period of time 
the State expects to use the proposed computerized support enforcement 
system; and
    (15) The APD must include any waiver requested in accordance with 
Sec.307.5 of this chapter.
    (c) Conditions for approval of annual update. The APD for a 
computerized support enforcement system described under Sec.307.10, or 
Sec.307.11 must be updated annually. In order to be approvable, the 
annual update of an APD for a computerized support enforcement system 
described under Sec.307.10 must meet only those requirements of 
paragraph (b) of this section that are prescribed by instructions issued 
by the Office.

(Approved by the Office of Management and Budget under control number 
0960-0343)

[49 FR 33260, Aug. 22, 1984, as amended at 51 FR 37732, Oct. 24, 1986; 
55 FR 4379, Feb. 7, 1990; 57 FR 47004, Oct. 14, 1992; 61 FR 67241, Dec. 
20, 1996; 63 FR 44816, Aug. 21, 1998]



Sec.307.20  Submittal of advance planning documents for computerized
support enforcement systems.

    The State IV-D agency must submit an APD for a computerized support 
enforcement system, approved and signed by the State IV-D Director and 
the appropriate State official, in accordance with the submission 
process prescribed in 45 CFR part 95, subpart F.

[55 FR 4379, Feb. 7, 1990, as amended at 57 FR 47005, Oct. 14, 1992]



Sec.307.25  Review and certification of computerized support enforcement
systems.

    The Office will review, assess and inspect the planning, design, 
development, installation, enhancement and operation of computerized 
support enforcement systems developed under

[[Page 314]]

Sec.307.10, or Sec.307.11 to determine the extent to which such 
systems:
    (a) Meet the requirements found in Sec.307.15; and
    (b) Can be certified as meeting the requirements described in Sec.
307.10 and in the OCSE guideline entitled ``Automated Systems for Child 
Support Enforcement: A Guide for States''.

[57 FR 47005, Oct. 14, 1992, as amended at 63 FR 44817, Aug. 21, 1998]



Sec.307.35  Federal financial participation at the applicable matching
rate for computerized support enforcement systems.

    Federal financial participation at the applicable matching rate is 
available only in computerized support enforcement systems expenditures 
for:
    (a) The operation of a system that meets the requirements specified 
in Sec.307.10, or Sec.307.11 if the conditions for APD approval in 
Sec. Sec.307.5 and 307.15 are met; or
    (b) Systems approved in accordance with part 95, subpart F of this 
title. This may include expenditures for a system which were disallowed 
by the Office because the system failed to comply substantially with an 
APD approved under Sec.307.15.

[49 FR 33260, Aug. 22, 1984, as amended at 50 FR 19658, May 9, 1985; 57 
FR 47005, Oct. 14, 1992; 63 FR 44817, Aug. 21, 1998]



Sec.307.40  Suspension of approval of advance planning documents for
computerized support enforcement systems.

    (a) Suspension of approval. The Office will suspend approval of the 
APD for a computerized support enforcement system approved and developed 
under Sec.307.10, or Sec.307.11 as of the date that the system 
ceases to comply substantially with the criteria, requirements, and 
other provisions in the APD, including conditions in Sec.307.15(b) and 
the requirements in Sec.307.10 or Sec.307.11 of this part covered 
under a waiver granted in accordance with Sec.307.5. Federal funding 
will be disallowed as described in Sec.307.30(d) and Sec.307.31(d).
    (b) Duration of suspension. The suspension of approval of an APD 
under paragraph (a) shall remain in effect until the Office determines 
that actions required for Federal funding in the future, as specified in 
the notice of suspension, have been taken and the Office so notifies the 
State.

[49 FR 33260, Aug. 22, 1984, as amended at 57 FR 47005, Oct. 14, 1992; 
63 FR 44405, Aug. 19, 1998; 63 FR 44817, Aug. 21, 1998]



PART 308_ANNUAL STATE SELF-ASSESSMENT REVIEW AND REPORT--
Table of Contents



Sec.
308.0 Scope.
308.1 Self-assessment implementation methodology.
308.2 Required program compliance criteria.
308.3 Optional program areas of review.

    Authority: 42 U.S.C. 654(15)(A) and 1302.

    Source: 65 FR 77750, Dec. 12, 2000, unless otherwise noted.



Sec.308.0  Scope.

    This part establishes standards and criteria for the State self-
assessment review and report process required under section 454(15)(A) 
of the Act.



Sec.308.1  Self-assessment implementation methodology.

    (a) The IV-D agency must ensure the review meets Federal 
requirements and must maintain responsibility for and control of the 
results produced and contents of the annual report.
    (b) Sampling. A State must either review all of its cases or conduct 
sampling which meets the following conditions:
    (1) The sampling methodology maintains a minimum confidence level of 
90 percent for each criterion;
    (2) The State selects statistically valid samples of cases from the 
IV-D program universe of cases; and
    (3) The State establishes a procedure for the design of samples and 
assures that no portions of the IV-D case universe are omitted from the 
sample selection process.
    (c) Scope of review. A State must conduct an annual review covering 
all of the required criteria in Sec. 308.2.
    (d) Review period. Each review period must cover a 12-month period. 
The first review period shall begin no later than 12 months after the 
effective date of the final rule and subsequent reviews shall each cover 
the same 12-month period thereafter.

[[Page 315]]

    (e) Reporting. (1) The State must provide a report of the results of 
the self-assessment review to the appropriate OCSE Regional Office, with 
a copy to the Commissioner of OCSE, no later than 6 months after the end 
of the review period.
    (2) The report must include, but is not limited to:
    (i) An executive summary, including a summary of the mandatory 
program criteria findings;
    (ii) A description of optional program areas covered by the review;
    (iii) A description of sampling methodology used, if applicable;
    (iv) The results of the self-assessment reviews; and
    (v) A description of the corrective actions proposed and/or taken.



Sec.308.2  Required program compliance criteria.

    (a) Case closure. (1) The State must have and use procedures for 
case closure pursuant to Sec. 303.11 of this chapter in at least 90 
percent of the closed cases reviewed.
    (2) If a IV-D case was closed during the review period, the State 
must determine whether the case met requirements pursuant to Sec.
303.11 of this chapter.
    (b) Establishment of paternity and support order. The State must 
have and use procedures required in this paragraph in at least 75 
percent of the cases reviewed.
    (1) If an order for support is required and established during the 
review period, the case meets the requirements, notwithstanding the 
timeframes for: establishment of cases as specified in Sec. 303.2(b) of 
this chapter; provision of services in intergovernmental IV-D cases per 
Sec.303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and (7) and 
(10) of this chapter; and location and support order establishment under 
Sec. Sec.303.3(b)(3) and (5), and 303.4(d) of this chapter.
    (2) If an order was required, but not established during the review 
period, the State must determine the last required action and determine 
whether the action was taken within the appropriate timeframe. The 
following is a list of possible last actions:
    (i) Opening a case within 20 days pursuant to Sec.303.2(b) of this 
chapter;
    (ii) If location activities are necessary, using all appropriate 
sources within 75 days according to Sec.303.3(b)(3) of this chapter. 
This includes all the following locate sources as appropriate: custodial 
parent, Federal and State Parent Locator Services, U.S. Postal Service, 
State workforce agency, employment data, Department of Motor Vehicles, 
and credit bureaus;
    (iii) Repeating location attempts quarterly and when new information 
is received in accordance with Sec.303.3(b)(5) of this chapter;
    (iv) Establishing an order or completing service of process 
necessary to commence proceedings to establish a support order, or if 
applicable, paternity, within 90 days of locating the non-custodial 
parent, or documenting unsuccessful attempts to serve process in 
accordance with the State's guidelines defining diligent efforts 
pursuant to Sec. Sec.303.3(c) and 303.4(d) of this chapter.
    (c) Enforcement of orders. A State must have and use procedures 
required under this paragraph in at least 75 percent of the cases 
reviewed. Enforcement cases include cases in which ongoing income 
withholding is in place as well as cases in which new or repeated 
enforcement actions were required during the review period.
    (1) If income withholding was appropriate and a withholding 
collection was received during the last quarter of the review period and 
the case was submitted for Federal and State income tax refund offset, 
if appropriate, the case meets the requirements of Sec.303.6(c)(3) of 
this chapter, notwithstanding the timeframes for: establishment of cases 
in Sec.303.2(b) of this chapter; provision of services in 
intergovernmental IV-D cases under Sec.303.7(a)(4) through (8), (b), 
(c), (d)(2) through (5) and (7) and (10) of this chapter; and location 
and income withholding in Sec. Sec.303.3(b)(3) and (5), and 303.100 of 
this chapter.
    (2) If income withholding was not appropriate, and a collection was 
received during the review period, and the case was submitted for 
Federal and State income tax refund offset, if appropriate, then the 
case meets the requirements of Sec.303.6(c)(3) of this chapter, 
notwithstanding the timeframes for: establishment of cases in Sec.
303.2(b)

[[Page 316]]

of this chapter; provision of services in intergovernmental IV-D cases 
under Sec.303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and 
(7) and (10) of this chapter; and location and enforcement of support 
obligations in Sec. Sec.303.3(b)(3) and (5), and 303.6 of this 
chapter.
    (3) If an order needed enforcement during the review period, but 
income was not withheld or other collections were not received (when 
income withholding could not be implemented), the State must determine 
the last required action and determine whether the action was taken 
within the appropriate timeframes. The following is a list of possible 
last required actions:
    (i) If location activities are necessary, using all appropriate 
location sources within 75 days according to Sec.303.3(b)(3) of this 
chapter. Location sources include: custodial parent, Federal and State 
Parent Locator Services, U.S. Postal Service, State workforce agency, 
Department of Motor Vehicles, and credit bureaus;
    (ii) Repeating attempts to locate quarterly and when new information 
is received pursuant to Sec.303.3(b)(5) of this chapter;
    (iii) If there is no immediate income withholding order, initiating 
income withholding upon identifying a delinquency equal to one month's 
arrears, in accordance with Sec. 303.100(c) of this chapter;
    (iv) If immediate income withholding is ordered, sending a notice to 
the employer directing the employer to withhold from the income of the 
employee an amount equal to the monthly (or other periodic) support 
obligation (including any past due support obligation) of the employee, 
within:
    (A) Two business days after the date information regarding a newly 
hired employee is entered into the State Directory of New Hires and in 
which an information comparison conducted under section 453A(f) of the 
Act reveals a match;
    (B) Two business days after receipt of notice of, and the income 
source subject to withholding from a court, another State, an employer, 
the FPLS or another source recognized by the State.
    (v) If income withholding is not appropriate or cannot be 
implemented, taking an appropriate enforcement action (other than 
Federal and State income tax refund offset), unless service of process 
is necessary, within no more than 30 days of identifying a delinquency 
or identifying the location of the non-custodial parent, whichever 
occurs later in accordance with Sec.303.6(c)(2) of this chapter;
    (vi) If income withholding is not appropriate or cannot be 
implemented and service of process is needed, taking an appropriate 
enforcement action (other than Federal and State income tax refund 
offset), within no more than 60 days of identifying a delinquency or 
locating the non-custodial parent, whichever occurs later, or 
documenting unsuccessful attempts to serve process in accordance with 
the State's guidelines for defining diligent efforts and Sec.
303.6(c)(2) of this chapter;
    (vii) If the case has arrearages, submitting the case for Federal 
and State income tax refund offset during the review period, if 
appropriate, in accordance with Sec. Sec.303.72, 303.102 and 
303.6(c)(3) of this chapter.
    (d) Disbursement of collections. A State must have and use 
procedures required in this paragraph in at least 75 percent of the 
cases reviewed. With respect to the last payment received for each case:
    (1) States must determine whether disbursement of collection was 
made within two business days after receipt by the State Disbursement 
Unit from the employer or other source of periodic income in accordance 
with section 457(a) of the Act, if sufficient information identifying 
the payee is provided pursuant to section 454B(c) of the Act.
    (2) States may delay the distribution of collections toward 
arrearages until resolution of any timely appeals with respect to such 
arrearages pursuant to section 454B(c)(2) of the Act.
    (e) Securing and enforcing medical support orders. A State must have 
and use procedures required under this paragraph in at least 75 percent 
of the cases reviewed. A State must:
    (1) Determine whether support orders established or modified during 
the review period include medical support in accordance with Sec.
303.31(b) of this chapter.

[[Page 317]]

    (2) If reasonable in cost and accessible private health insurance 
was available and required in the order, but not obtained, determine 
whether the National Medical Support Notice was used to enforce the 
order in accordance with requirements in Sec.303.32 of this chapter.
    (3) Determine whether the State transferred notice of the health 
care provision, using the National Medical Support Notice required under 
Sec.303.32 of this chapter, to a new employer when a noncustodial 
parent, or at State option a custodial parent, was ordered to provide 
health insurance coverage and changed employment.
    (f) Review and adjustment of orders. A State must have and use 
procedures required under this paragraph in at least 75 percent of the 
cases reviewed.
    (1) If a case has been reviewed and meets the conditions for 
adjustment under State laws and procedures and Sec.303.8 of this 
chapter and the order is adjusted or a determination is made as a result 
of a review during the self-assessment period that an adjustment is not 
needed in accordance with the State's guidelines for setting child 
support awards, the State will be considered to have taken appropriate 
action in that case, notwithstanding the timeframes for: establishment 
of cases in Sec.303.2(b) of this chapter; provision of services in 
intergovernmental IV-D cases under Sec.303.7(a)(4) through (8), (b), 
(c), (d)(2) through (5) and (7) and (10) of this chapter; and location 
and review and adjustment of support orders contained in Sec. Sec.
303.3(b)(3) and (5), and 303.8 of this chapter.
    (2) If a case has not been reviewed, the State must determine the 
last required action and determine whether the action was taken within 
the appropriate timeframe. The following is a list of possible last 
required actions:
    (i) If location is necessary to conduct a review, using all 
appropriate location sources within 75 days of opening the case pursuant 
to Sec.303.3(b)(3) of this chapter. Location sources include: 
custodial parent, Federal and State Parent Locator Services, U.S. Postal 
Service, State workforce agency, unemployment data, Department of Motor 
Vehicles, and credit bureaus;
    (ii) Repeating location attempts quarterly and when new information 
is received pursuant to Sec.303.3(b)(5) of this chapter;
    (iii) Within 180 calendar days of receiving a request for a review 
or locating the non-requesting parent, whichever occurs later, 
conducting a review of the order and adjusting the order or determining 
that the order should not be adjusted pursuant to sec. 303.8(e) of this 
chapter;
    (iv) If an adjustment was made during the review period using cost 
of living or automated methods, giving both parties 30 days to contest 
any adjustment to that support order pursuant to sec. 466(a)(10)(A)(ii) 
of the Act.
    (3) The State must provide the custodial and non-custodial parents 
notices, not less often than once every three years, informing them of 
their right to request the State to review and, if appropriate, adjust 
the order. The first notice may be included in the order pursuant to 
sec. 466(a)(10)(C) of the Act.
    (g) Intergovernmental services. A State must have and use procedures 
required under this paragraph in at least 75 percent of the cases 
reviewed. For all intergovernmental cases requiring services during the 
review period, determine the last required action and determine whether 
the action was taken during the appropriate time frame:
    (1) Initiating intergovernmental cases:
    (i) Except when a State has determined that use of one-state 
remedies is appropriate in accordance with Sec.303.7(c)(3) of this 
chapter, within 20 calendar days of completing the actions required in 
Sec.303.7(c)(1) through (3) of the chapter, and, if appropriate, 
receipt of any necessary information needed to process the case, ask the 
appropriate intrastate tribunal or refer the case to the responding 
State agency, for a determination of the controlling order and a 
reconciliation of arrearages if such a determination is necessary, and 
refer any intergovernmental IV-D case to the appropriate State Central 
Registry, Tribal IV-D program, or Central Authority of a country for 
action, if one-state remedies are not appropriate;

[[Page 318]]

    (ii) If additional information is requested, providing the 
responding agency with an updated form and any necessary additional 
documentation, or notify the responding agency when the information will 
be provided, within 30 calendar days of the request pursuant to Sec.
303.7(c)(6) of this chapter;
    (iii) Within 20 calendar days after determining that a request for 
review of the order should be sent to another State IV-D agency and of 
receipt of information necessary to conduct the review, sending a 
request for review and adjustment pursuant to Sec.303.7(c)(9) of this 
chapter;
    (iv) Within 10 working days of closing its case pursuant to Sec.
303.11 of this chapter, notifying the responding agency pursuant to 
Sec.303.7(c)(11) of this chapter;
    (v) Within 10 working days of receipt of new information on a case, 
notifying the responding State pursuant to Sec.303.7(a)(7) of this 
chapter;
    (vi) Within 30 working days of receiving a request, providing any 
order and payment record information requested by a responding agency 
for a controlling order determination and reconciliation of arrearages, 
or notify the State IV-D agency when the information will be provided 
pursuant to Sec.303.7(a)(6) of this chapter.
    (2) Responding intergovernmental cases:
    (i) Within 10 working days of receipt of an intergovernmental IV-D 
case, the central registry reviewing submitted documentation for 
completeness, forwarding the case to the State Parent Locator Service 
(SPLS) for location services or to the appropriate agency for 
processing, acknowledging receipt of the case, and requesting any 
missing documentation from the initiating agency, and informing the 
initiating agency where the case was sent for action, pursuant to Sec.
303.7(b)(2) of this chapter;
    (ii) The central registry responding to inquiries from initiating 
agencies within 5 working days of a receipt of request for case status 
review pursuant to Sec.303.7(b)(4) of this chapter;
    (iii) Within 10 working days of locating the noncustodial parent in 
a different jurisdiction within the State or in a different State, 
forwarding/transmitting the forms and documentation in accordance with 
Federal requirements pursuant to Sec.303.7(d)(3) and (4) of this 
chapter;
    (iv) Within two business days of receipt of collections, forwarding 
any support payments to the initiating jurisdiction pursuant to section 
454B(c)(1) of the Act;
    (v) Within 10 working days of receipt of new information notifying 
the initiating jurisdiction of that new information pursuant to Sec.
303.7(a)(7) of this chapter;
    (vi) Within 30 working days of receiving a request, providing any 
order and payment record information requested by an initiating agency 
for a controlling order determination and reconciliation of arrearages, 
or notify the State IV-D agency when the information will be provided 
pursuant to Sec.303.7(a)(6) of this chapter;
    (vii) Within 10 working days of receipt of instructions for case 
closure from an initiating agency under Sec.303.7(c)(12) of this 
chapter, stopping the responding State's income withholding order or 
notice and closing the responding State's case, pursuant to Sec.
303.7(d)(9) of this chapter, unless the two States reach an alternative 
agreement on how to proceed.
    (h) Expedited processes. The State must have and use procedures 
required under this paragraph in the amounts specified in this paragraph 
in the cases reviewed for the expedited processes criterion.
    (1) In IV-D cases needing support orders established, regardless of 
whether paternity has been established, action to establish support 
orders must be completed from the date of service of process to the time 
of disposition within the following timeframes pursuant to Sec. 
303.101(b)(2)(i) of this chapter:
    (i) 75 percent in 6 months; and
    (ii) 90 percent in 12 months.
    (2) States may count as a success for the 6-month standard cases 
where the IV-D agency uses long-arm jurisdiction and disposition occurs 
within 12 months of service of process on the alleged father or non-
custodial parent.

[65 FR 77750, Dec. 12, 2000, as amended at 73 FR 42442, July 21, 2008; 
75 FR 38644, July 2, 2010; 81 FR 93568, Dec. 20, 2016]

[[Page 319]]



Sec.308.3  Optional program areas of review.

    (a) Program direction. A State may include a program direction 
review in its self-assessment for the purpose of analyzing the 
relationships between case results relating to program compliance areas, 
and performance and program outcome indicators. This review is an 
opportunity for States to demonstrate how they are trying to manage 
their resources to achieve the best performance possible. A program 
direction analysis could describe the following:
    (1) Initiatives that resulted in improved and achievable performance 
accompanied with supporting data;
    (2) Barriers impeding progress; and
    (3) Efforts to improve performance.
    (b) Program service enhancement. A State may include a program 
service enhancement report in its self-assessment that describes 
initiatives put into practice that improved program performance and 
customer service. This is an opportunity for States to promote their 
programs and innovative practices. Some examples of innovative 
activities that States may elect to discuss in the report include:
    (1) Steps taken to make the program more efficient and effective;
    (2) Efforts to improve client services;
    (3) Demonstration projects testing creative new ways of doing 
business;
    (4) Collaborative efforts being taken with partners and customers;
    (5) Innovative practices which have resulted in improved program 
performance;
    (6) Actions taken to improve public image;
    (7) Access/visitation projects initiated to improve non-custodial 
parents' involvement with the children and;
    (8) Efforts to engage non-custodial parents who owe overdue child 
support to pay that support or engage in work activities, such as 
subsidized employment, work experience, or job search.
    (c) A State may provide any of the optional information in 
paragraphs (a) and (b) of this section in narrative form.



PART 309_TRIBAL CHILD SUPPORT ENFORCEMENT (IV-D) PROGRAM--
Table of Contents



            Subpart A_Tribal IV-D Program: General Provisions

Sec.
309.01 What does this part cover?
309.05 What definitions apply to this part?
309.10 Who is eligible to apply for and receive Federal funding to 
          operate a Tribal IV-D program?

          Subpart B_Tribal IV-D Program Application Procedures

309.15 What is a Tribal IV-D program application?
309.16 What rules apply to start-up funding?
309.20 Who submits a Tribal IV-D program application and where?
309.35 What are the procedures for review of a Tribal IV-D program 
          application, plan or plan amendment?
309.40 What is the basis for disapproval of a Tribal IV-D program 
          application, plan or plan amendment?
309.45 When and how may a Tribe or Tribal organization request 
          reconsideration of a disapproval action?
309.50 What are the consequences of disapproval of a Tribal IV-D program 
          application, plan or plan amendment?

                 Subpart C_Tribal IV-D Plan Requirements

309.55 What does this subpart cover?
309.60 Who is responsible for administration of the Tribal IV-D program 
          under the Tribal IV-D plan?
309.65 What must a Tribe or Tribal organization include in a Tribal IV-D 
          plan in order to demonstrate capacity to operate a Tribal IV-D 
          program?
309.70 What provisions governing jurisdiction must a Tribe or Tribal 
          organization include in a Tribal IV-D plan?
309.75 What administrative and management procedures must a Tribe or 
          Tribal organization include in a Tribal IV-D plan?
309.80 What safeguarding procedures must a Tribe or Tribal organization 
          include in a Tribal IV-D plan?
309.85 What records must a Tribe or Tribal organization agree to 
          maintain in a Tribal IV-D plan?
309.90 What governing Tribal law or regulations must a Tribe or Tribal 
          organization include in a Tribal IV-D plan?
309.95 What procedures governing the location of custodial and 
          noncustodial parents must a Tribe or Tribal organization 
          include in a Tribal IV-D plan?
309.100 What procedures for the establishment of paternity must a Tribe 
          or Tribal

[[Page 320]]

          organization include in a Tribal IV-D plan?
309.105 What procedures governing child support guidelines must a Tribe 
          or Tribal organization include in a Tribal IV-D plan?
309.110 What procedures governing income withholding must a Tribe or 
          Tribal organization include in a Tribal IV-D plan?
309.115 What procedures governing the distribution of child support must 
          a Tribe or Tribal organization include in a Tribal IV-D plan?
309.120 What intergovernmental procedures must a Tribe or Tribal 
          organization include in a Tribal IV-D plan?

                  Subpart D_Tribal IV-D Program Funding

309.125 On what basis is Federal funding of Tribal IV-D programs 
          determined?
309.130 How will Tribal IV-D programs be funded and what forms are 
          required?
309.135 What requirements apply to funding, obligating and liquidating 
          Federal title IV-D grant funds?
309.145 What costs are allowable for Tribal IV-D programs carried out 
          under Sec.309.65(a) of this part?
309.150 What start-up costs are allowable for Tribal IV-D programs 
          carried out under Sec.309.65(b) of this part?
309.155 What uses of Tribal IV-D program funds are not allowable?

                 Subpart E_Accountability and Monitoring

309.160 How will OCSE determine if Tribal IV-D program funds are 
          appropriately expended?
309.165 What recourse does a Tribe or Tribal organization have to 
          dispute a determination to disallow Tribal IV-D program 
          expenditures?

       Subpart F_Statistical and Narrative Reporting Requirements

309.170 What statistical and narrative reporting requirements apply to 
          Tribal IV-D programs?

    Authority: 42 U.S.C. 655(f) and 1302.

    Source: 69 FR 16672, Mar. 30, 2004, unless otherwise noted.



            Subpart A_Tribal IV-D Program: General Provisions



Sec.309.01  What does this part cover?

    (a) The regulations in this part prescribe the rules for 
implementing section 455(f) of the Social Security Act. Section 455(f) 
of the Act authorizes direct grants to Indian Tribes and Tribal 
organizations to operate child support enforcement programs.
    (b) These regulations establish the requirements that must be met by 
Indian Tribes and Tribal organizations to be eligible for grants under 
section 455(f) of the Act. They establish requirements for: Tribal IV-D 
plan and application content, submission, approval, and amendment; 
program funding; program operation; uses of funds; accountability; 
reporting; and other program requirements and procedures.



Sec.309.05  What definitions apply to this part?

    The following definitions apply to this part:
    IV-D services are the services that are authorized or required for 
the establishment of paternity, establishment, modification, and 
enforcement of support orders, and location of noncustodial parents 
under title IV-D of the Act, this rule, the Tribal IV-D plan and program 
instructions issued by the Department.
    ACF means the Administration for Children and Families, U.S. 
Department of Health and Human Services.
    Act means the Social Security Act, unless otherwise specified.
    Assistant Secretary means the Assistant Secretary for Children and 
Families, Department of Health and Human Services.
    Central office means the Office of Child Support Enforcement.
    Child support order and child support obligation mean a judgment, 
decree, or order, whether temporary, final or subject to modification, 
issued by a court of competent jurisdiction, tribunal or an 
administrative agency for the support and maintenance of a child, 
including a child who has attained the age of majority under the law of 
the issuing jurisdiction, or of the parent with whom the child is 
living, which provides for monetary support, health care, arrearages, or 
reimbursement, and which may include related costs and fees, interest 
and penalties, income withholding, attorneys' fees, and other relief.
    The Department means the U.S. Department of Health and Human 
Services.

[[Page 321]]

    Income means any periodic form of payment due to an individual 
regardless of source, except that a Tribe may expressly decide to 
exclude per capita, trust, or Individual Indian Money (IIM) payments.
    Indian means a person who is a member of an Indian Tribe.
    Indian Tribe and Tribe mean any Indian or Alaska Native Tribe, band, 
nation, pueblo, village, or community that the Secretary of the Interior 
acknowledges to exist as an Indian Tribe and includes in the list of 
Federally-recognized Indian Tribal governments as published in the 
Federal Register pursuant to 25 U.S.C. 479a-1.
    Location means information concerning the physical whereabouts of 
the noncustodial parent, or the noncustodial parent's employer(s), and 
other sources of income or assets, as appropriate, which is sufficient 
and necessary to take the next appropriate action in a case.
    Non-cash support is support provided to a family in the nature of 
goods and/or services, rather than in cash, but which, nonetheless, has 
a certain and specific dollar value.
    Notice of Disapproval refers to the written notification from the 
Department that the Tribal IV-D application, IV-D plan, or plan 
amendment fails to meet the requirements for approval under applicable 
Federal statutes and regulations.
    OCSE refers to the Federal Office of Child Support Enforcement.
    Program development plan means a document detailing the specific 
steps a Tribe or Tribal organization will take to come into compliance 
with the requirements of Sec.309.65(a), and the timeframe associated 
with each step.
    Regional office refers to one of the regional offices of the 
Administration for Children and Families.
    Secretary means the Secretary of the Department of Health and Human 
Services or designee.
    TANF means the Temporary Assistance for Needy Families program as 
found at section 401 et seq. of the Social Security Act (42 U.S.C. 601 
et seq.).
    Title IV-D refers to the title of the Social Security Act that 
authorizes the Child Support Enforcement Program, including the Tribal 
Child Support Enforcement Program.
    Tribal IV-D agency means the organizational unit in the Tribe or 
Tribal organization that has the authority for administering or 
supervising the Tribal IV-D program under section 455(f) of the Act.
    Tribal custom means unwritten law having the force and effect of law 
within a particular Tribe.
    Tribal organization means any legally established organization of 
Indian Tribes which is sanctioned or chartered as a single governing 
body representing two or more Indian Tribes.



Sec.309.10  Who is eligible to apply for and receive Federal funding
to operate a Tribal IV-D program?

    The following Tribes or Tribal organizations are eligible to apply 
to receive Federal funding to operate a Tribal IV-D program meeting the 
requirements of this part:
    (a) An Indian Tribe with at least 100 children under the age of 
majority as defined by Tribal law or code, in the population subject to 
the jurisdiction of the Tribal court or administrative agency.
    (b) A Tribal organization that has been designated by two or more 
Indian Tribes to operate a Tribal IV-D program on their behalf, with a 
total of at least 100 children under the age of majority as defined by 
Tribal laws or codes, in the population of the Tribes subject to the 
jurisdiction of the Tribal court (or courts) or administrative agency 
(or agencies).
    (c) A Tribe or Tribal organization that can demonstrate to the 
satisfaction of the Secretary the capacity to operate a child support 
enforcement program and provide justification for operating a program 
with less than the minimum number of children may be granted a waiver of 
paragraph (a) or (b) of this section as appropriate.
    (1) A Tribe or Tribal organization's request for waiver of paragraph 
(a) or (b) of this section must include documentation sufficient to 
demonstrate that meeting the requirement is not necessary. Such 
documentation must state:

[[Page 322]]

    (i) That the Tribe or Tribal organization otherwise complies with 
the requirements established in subpart C of these regulations;
    (ii) That the Tribe or Tribal organization has the administrative 
capacity to support operation of a child support program under the 
requirements of this part;
    (iii) That the Tribal IV-D program will be cost effective; and
    (iv) The number of children under the jurisdiction of the Tribe or 
Tribal organization.
    (2) A Tribe or Tribal organization's request for a waiver may be 
approved if the Tribe or Tribal organization demonstrates to the 
satisfaction of the Secretary that it can provide the services required 
under 45 CFR part 309 in a cost effective manner even though the 
population subject to Tribal jurisdiction includes fewer than 100 
children.



          Subpart B_Tribal IV-D Program Application Procedures



Sec.309.15  What is a Tribal IV-D program application?

    (a) Initial application. The initial application for funding under 
Sec.309.65(a) may be submitted at any time. The initial application 
must include:
    (1) Standard Form (SF) 424, ``Application for Federal Assistance;''
    (2) SF 424A, ``Budget Information--Non-Construction Programs,'' 
including the following information:
    (i) A quarter-by-quarter estimate of expenditures for the funding 
period; and
    (ii) Notification of whether the Tribe or Tribal organization is 
requesting funds for indirect costs and if so, an election of a method 
under paragraph (a)(3) of this section to calculate estimated indirect 
costs; and
    (iii) A narrative justification for each cost category on the form; 
and either:
    (iv) A statement that the Tribe or Tribal organization has or will 
have the non-Federal share of program expenditures available, as 
required; or
    (v) A request for a waiver of the non-Federal share in accordance 
with Sec.309.130(e), if appropriate.
    (3) If the Tribe or Tribal organization requests funding for 
indirect costs, estimated indirect costs may be submitted either by:
    (i) Including documentation of the dollar amount of indirect costs 
allocable to the IV-D program; or
    (ii) Submission of its current indirect cost rate negotiated with 
the Department of Interior and the estimated amount of indirect costs 
calculated using the negotiated cost rate.
    (4) The Tribal IV-D plan. The initial application must include a 
comprehensive statement identifying how the Tribe or Tribal organization 
is meeting the requirements of subpart C of this part and that describes 
the capacity of the Tribe or Tribal organization to operate a IV-D 
program which meets the objectives of title IV-D of the Act, including 
establishment of paternity, establishment, modification, and enforcement 
of support orders, and location of noncustodial parents.
    (b) Additional application requirement for Tribal organizations. The 
initial and subsequent annual budget submissions of a Tribal 
organization must document that each participating Tribe authorizes the 
Tribal organization to operate a Tribal IV-D program on its behalf.
    (c) Annual budget submission. Following the initial funding period, 
the Tribe or Tribal organization operating a IV-D program must submit 
annually Form SF 424A, including all the necessary accompanying 
information and documentation described in paragraphs (a)(2) and (a)(3) 
of this section.
    (d) Plan Amendments. Plan amendments must be submitted in accordance 
with the requirements of Sec.309.35(e).



Sec.309.16  What rules apply to start-up funding?

    (a) The application for start-up funding under Sec.309.65(b) must 
include:
    (1) Standard Form (SF) 424, ``Application for Federal Assistance';
    (2) SF 424A, ``Budget Information--Non-Construction Programs,'' 
including the following information:
    (i) A quarter-by-quarter estimate of expenditures for the start-up 
period;
    (ii) Notification of whether the Tribe or Tribal organization is 
requesting funds for indirect costs and, if so, an

[[Page 323]]

election of a method to calculate estimated indirect costs under 
paragraph (a)(3) of this section; and
    (iii) A narrative justification for each cost category on the form;
    (3) If the Tribe or Tribal organization requests funding for 
indirect costs as part of its application for Federal start-up funds, 
estimated indirect costs may be submitted either by:
    (i) Including documentation of the dollar amount of indirect costs 
allocable to the IV-D program including the methodology used to arrive 
at these amounts; or
    (ii) Submission of its current indirect cost rate negotiated with 
the Department of Interior and the amount of estimated indirect costs 
using that rate.
    (iii) The amount of indirect costs must be included within the limit 
of $500,000 specified in paragraph (c) of this section.
    (4) With respect to each requirement in Sec.309.65(a) that the 
Tribe or Tribal organization currently meets, a description of how the 
Tribe or Tribal organization satisfies the requirement; and
    (5) With respect to each requirement in Sec.309.65(a) that the 
Tribe or Tribal organization does not currently meet, a program 
development plan which demonstrates to the satisfaction of the Secretary 
that the Tribe or Tribal organization has the capacity and will have in 
place a Tribal IV-D program that will meet the requirements outlined in 
Sec.309.65(a), within a reasonable, specific period of time, not to 
exceed two years. The Secretary must approve the program development 
plan. Disapproval of a program development plan is not subject to 
administrative appeal.
    (b) The process for approval and disapproval of applications for 
start-up funding under this section is found in Sec. Sec.309.35, 
309.40, 309.45, and 309.50. A disapproval of an application for start-up 
funding is not subject to administrative appeal.
    (c) Federal funding for start-up costs is limited to $500,000, which 
must be obligated and liquidated within two years after the first day of 
the quarter after the start-up application was approved. In 
extraordinary circumstances, the Secretary will consider a request to 
extend the period of time during which start-up funding will be 
available and/or to increase the amount of start-up funding provided. 
Denial of a request to extend the time during which start-up funding 
will be available or for an increase in the amount of start-up funding 
is not subject to administrative appeal.
    (1) The Secretary may grant a no-cost extension of time if the Tribe 
or Tribal organization demonstrates to the satisfaction of the Secretary 
that the extension will result in satisfaction of each requirement 
established in Sec.309.65(a) by the grantee and completion of the 
program development plan required under Sec.309.65(b)(2).
    (2) The Secretary may grant an increase in the amount of Federal 
start-up funding provided beyond the limit specified at paragraph (c) of 
this section and Sec.309.150 if--
    (i) The Tribe or Tribal organization demonstrates to the 
satisfaction of the Secretary that a specific amount of additional funds 
for a specific purpose or purposes will result in satisfaction of the 
requirements specified in Sec.309.65(a) which the Tribe or Tribal 
organization otherwise will be unable to meet; and
    (ii) The Tribe or Tribal organization demonstrates to the 
satisfaction of the Secretary that it has satisfied every applicable 
reporting requirement.
    (d) If a Tribe or Tribal organization receives start-up funding 
based on submission and approval of a Tribal IV-D application which 
includes a program development plan under Sec.309.65(b), a progress 
report that describes accomplishments to date in carrying out the plan 
must be submitted with the next annual refunding request.



Sec.309.20  Who submits a Tribal IV-D program application and where?

    (a) The authorized representative of the Tribe or Tribal 
organization must sign and submit the Tribal IV-D program application.
    (b) Applications must be submitted to the Office of Child Support 
Enforcement, Attention: Federal Office of Child Support Enforcement , 
with a copy to the appropriate regional office.

[69 FR 16672, Mar. 30, 2004, as amended at 85 FR 35208, June 9, 2020]

[[Page 324]]



Sec.309.35  What are the procedures for review of a Tribal IV-D
program application, plan or plan amendment?

    (a) The Secretary will promptly review a Tribal IV-D program 
application, plan or plan amendment to determine whether it conforms to 
the requirements of the Act and these regulations. Not later than the 
90th day following the date on which the Tribal IV-D application, plan 
or plan amendment is received by the Secretary, action will be taken 
unless additional information is needed. If additional information is 
needed from the Tribe or Tribal organization, the Secretary will 
promptly notify the Tribe or Tribal organization.
    (b) The Secretary will take action on the application, plan or plan 
amendment within 45 days of receipt of any additional information 
requested from the Tribe or Tribal organization.
    (c) Determinations as to whether the Tribal IV-D plan, including 
plan amendments, originally meets or continues to meet the requirements 
for approval are based on applicable Federal statutes, regulations and 
instructions applicable to Tribal IV-D programs. Guidance may be 
furnished to assist in the interpretation of the regulations.
    (d) After approval of the original Tribal IV-D program application, 
all relevant changes required by new Federal statutes, rules, 
regulations, and Department interpretations are required to be submitted 
so that the Secretary may determine whether the plan continues to meet 
Federal requirements and policies.
    (e) If a Tribe or Tribal organization intends to make any 
substantial or material change in any aspect of the Tribal IV-D program, 
a Tribal IV-D plan amendment must be submitted at the earliest 
reasonable time for approval under this section. The plan amendment must 
describe and, as appropriate, document the changes the Tribe or Tribal 
organization proposes to make to its IV-D plan, consistent with the 
requirements of applicable statutes and regulations.
    (f) The effective date of a plan or plan amendment may not be 
earlier than the first day of the fiscal quarter in which an approvable 
plan or plan amendment is submitted.



Sec.309.40  What is the basis for disapproval of a Tribal IV-D program
application, plan or plan amendment?

    (a) A IV-D application, plan, or plan amendment will be disapproved 
if:
    (1) The Secretary determines that the application, plan, or plan 
amendment fails to meet or no longer meets one or more of the 
requirements set forth in this part or any other applicable Federal 
regulations, statutes and implementing instructions;
    (2) The Secretary determines that required Tribal laws, code, 
regulations, and procedures are not in effect; and/or
    (3) The Secretary determines that the application, plan, or plan 
amendment is not complete, after the Tribe or Tribal organization has 
had the opportunity to submit the necessary information.
    (b)(1) Except as provided in paragraph (b)(2) of this section and 
Sec.309.45(h) of this part, a written Notice of Disapproval of the 
Tribal IV-D program application, plan, or plan amendment, as applicable, 
will be sent to the Tribe or Tribal organization upon the determination 
that any of the conditions of paragraph (a) of this section apply. The 
Notice of Disapproval will include the specific reason(s) for 
disapproval.
    (2) Where the Secretary believes an approved Tribal IV-D plan should 
be disapproved, he will notify the Tribe of his intent to disapprove the 
plan.
    (c) If the application, plan or plan amendment is incomplete and 
fails to provide enough information to make a determination to approve 
or disapprove, the Secretary will request the necessary information.



Sec.309.45  When and how may a Tribe or Tribal organization request
reconsideration of a disapproval action?

    (a) Except as specified under paragraphs (g) and (h) of this 
section, a Tribe or Tribal organization may request reconsideration of 
the disapproval of a Tribal IV-D application, plan or plan amendment by 
filing a written Request for Reconsideration to the Secretary within 60 
days of the date of the Notice of Disapproval.
    (b) The Request for Reconsideration must include:

[[Page 325]]

    (1) All documentation that the Tribe or Tribal organization believes 
is relevant and supportive of its application, plan or plan amendment; 
and
    (2) A written response to each ground for disapproval identified in 
the Notice of Disapproval, indicating why the Tribe or Tribal 
organization believes its application, plan or plan amendment conforms 
to the requirements for approval specified in applicable Federal 
statutes, regulations and office issuances; and
    (3) Whether or not the Tribe or Tribal organization requests a 
meeting or conference call with the Secretary.
    (c) After receiving a Request for Reconsideration that includes a 
request for a conference call or meeting, OCSE will determine whether to 
hold a conference call or a meeting with the Tribe or Tribal 
organization to discuss the reasons for disapproval of the application, 
plan, or plan amendment as well as the Tribe or Tribal organization's 
response. The Secretary will notify the Tribe or Tribal organization of 
the date and time of the conference call or meeting.
    (d) A conference call or meeting under Sec.309.45(c) shall be held 
not less than 30 days nor more than 60 days after the date the notice of 
such call or meeting is furnished to the Tribe or Tribal organization, 
unless both parties agree in writing to another time.
    (e) The Secretary will make a written determination affirming, 
modifying, or reversing disapproval of a Tribal IV-D program 
application, plan, or plan amendment within 60 days after the conference 
call or meeting is held, or within 60 days after the request for 
reconsideration that does not include a request for a meeting. This 
determination shall be the final decision of the Secretary.
    (f) The Secretary's determination that a Tribal IV-D application, 
new plan or plan amendment is not approvable remains in effect pending 
the reconsideration under this part.
    (g) Disapproval of start-up funding, a request for waiver of the 
100-child rule, and a request for waiver of the non-Federal Tribal share 
is not subject to administrative appeal.
    (h) Where the Secretary believes an approved Tribal IV-D plan should 
be disapproved, he will notify the Tribe of his intent to disapprove the 
plan. If the Tribe waives its right to reconsideration under this 
section, the Tribe may request a pre-decision hearing with 60 days of 
the date of the Notice of Intent to Disapprove the plan. The hearing 
will utilize the procedures at 45 CFR part 213.



Sec.309.50  What are the consequences of disapproval of a Tribal IV-D
program application, plan or plan amendment?

    (a) If an application or plan submitted pursuant to Sec.309.15 is 
disapproved, the Tribe or Tribal organization will receive no funding 
under Sec.309.65(a) or this part until a new application or plan is 
submitted and approved.
    (b) If a IV-D plan amendment is disapproved, there is no funding for 
the activity proposed in the plan amendment.
    (c) A Tribe or Tribal organization whose application, plan or plan 
amendment has been disapproved may reapply at any time.



                 Subpart C_Tribal IV-D Plan Requirements



Sec.309.55  What does this subpart cover?

    This subpart defines the Tribal IV-D plan provisions that are 
required to demonstrate that a Tribe or Tribal organization has the 
capacity to operate a child support enforcement program meeting the 
objectives of title IV-D of the Act and these regulations, including 
establishment of paternity, establishment, modification, and enforcement 
of support orders, and location of noncustodial parents.



Sec.309.60  Who is responsible for administration of the Tribal IV-D 
program under the Tribal IV-D plan?

    (a) Under the Tribal IV-D plan, the Tribe or Tribal organization 
shall establish or designate an agency to administer the Tribal IV-D 
plan. That agency shall be referred to as the Tribal IV-D agency.
    (b) The Tribe or Tribal organization is responsible and accountable 
for the operation of the Tribal IV-D program. Except where otherwise 
provided in

[[Page 326]]

this part, the Tribal IV-D agency need not perform all the functions of 
the Tribal IV-D program, so long as the Tribe or Tribal organization 
ensures that all approved functions are carried out properly, 
efficiently and effectively.
    (c) If the Tribe or Tribal organization delegates any of the 
functions of the Tribal IV-D program to another Tribe, a State, and/or 
another agency or entity pursuant to a cooperative arrangement, 
contract, or Tribal resolution, the Tribe or Tribal organization is 
responsible for securing compliance with the requirements of the Tribal 
IV-D plan by such Tribe, State, agency or entity. The Tribe or Tribal 
organization is responsible for submitting copies and appending to the 
Tribal IV-D plan any agreements, contracts, or Tribal resolutions 
between the Tribal IV-D agency and a Tribe, State, other agency or 
entity.



Sec.309.65  What must a Tribe or Tribal organization include in a
Tribal IV-D plan in order to demonstrate capacity to operate a Tribal 
IV-D program?

    (a) A Tribe or Tribal organization demonstrates capacity to operate 
a Tribal IV-D program meeting the objectives of title IV-D of the Act 
and these regulations by submission of a Tribal IV-D plan which contains 
the required elements listed in paragraphs (a)(1) through (14) of this 
section:
    (1) A description of the population subject to the jurisdiction of 
the Tribal court or administrative agency for child support purposes as 
specified under Sec.309.70;
    (2) Evidence that the Tribe or Tribal organization has in place 
procedures for accepting all applications for IV-D services and promptly 
providing IV-D services required by law and regulation;
    (3) Assurance that the due process rights of the individuals 
involved will be protected in all activities of the Tribal IV-D program, 
including establishment of paternity, and establishment, modification, 
and enforcement of support orders;
    (4) Administrative and management procedures as specified under 
Sec.309.75;
    (5) Safeguarding procedures as specified under Sec.309.80;
    (6) Assurance that the Tribe or Tribal organization will maintain 
records as specified under Sec.309.85;
    (7) Copies of all applicable Tribal laws and regulations as 
specified under Sec.309.90;
    (8) Procedures for the location of noncustodial parents as specified 
under Sec.309.95;
    (9) Procedures for the establishment of paternity as specified under 
Sec.309.100;
    (10) Guidelines for the establishment and modification of child 
support obligations as specified under Sec.309.105;
    (11) Procedures for income withholding as specified under Sec.
309.110;
    (12) Procedures for the distribution of child support collections as 
specified under Sec.309.115;
    (13) Procedures for intergovernmental case processing as specified 
under Sec.309.120; and
    (14) Tribally-determined performance targets for paternity 
establishment, support order establishment, amount of current support to 
be collected, amount of past due support to be collected, and any other 
performance measures a Tribe or Tribal organization may want to submit.
    (b) If a Tribe or Tribal organization currently is unable to satisfy 
any or all of the requirements specified in paragraph (a) of this 
section:
    (1) It may demonstrate capacity to operate a Tribal IV-D program 
meeting the objectives of title IV-D of the Act and these regulations by 
submission of an application for start-up funding as required by Sec.
309.16(a) of this part.
    (2) The Secretary may cease start-up funding to a Tribe or Tribal 
organization if that Tribe or Tribal organization fails to satisfy one 
or more provisions or milestones described in its program development 
plan within the timeframe specified in such plan.



Sec.309.70  What provisions governing jurisdiction must a Tribe or
Tribal organization include in a Tribal IV-D plan?

    A Tribe or Tribal organization must include in its Tribal IV-D plan 
a description of the population subject to the jurisdiction of the 
Tribal court or administrative agency for child support enforcement 
purposes and certify that there are at least 100 children

[[Page 327]]

under the age of majority in the population subject to the jurisdiction 
of the Tribe in accordance with Sec.309.10 of this part and subject to 
Sec.309.10(c).



Sec.309.75  What administrative and management procedures must a Tribe
or Tribal organization include in a Tribal IV-D plan?

    A Tribe or Tribal organization must include in its Tribal IV-D plan 
the administrative and management provisions contained in this section:
    (a) A description of the structure of the IV-D agency and the 
distribution of responsibilities within the agency.
    (b) Evidence that all Federal funds and amounts collected by the 
Tribal IV-D agency are protected against loss. Tribes and Tribal 
organizations may comply with this paragraph by submitting documentation 
that establishes that every person who receives, disburses, handles, or 
has access to or control over funds collected under the Tribal IV-D 
program is covered by a bond or insurance sufficient to cover all 
losses.
    (c) Procedures under which notices of support collected, itemized by 
month of collection, are provided to families receiving services under 
the Tribal IV-D program at least once a year. In addition, a notice must 
be provided at any time to either the custodial or noncustodial parent 
upon request.
    (d) A certification that for each year during which the Tribe or 
Tribal organization receives or expends funds pursuant to section 455(f) 
of the Act and this part, it shall comply with the provisions of chapter 
75 of Title 31 of the United States Code (the Single Audit Act of 1984, 
Pub. L. 98-502, as amended) and 45 CFR part 75, subpart F.
    (e) If the Tribe or Tribal organization intends to charge an 
application fee or recover costs in excess of the fee, the Tribal IV-D 
plan must provide that:
    (1) The application fee must be uniformly applied by the Tribe or 
Tribal organization and must be:
    (i) A flat amount not to exceed $25.00; or
    (ii) An amount based on a fee schedule not to exceed $25.00.
    (2) The Tribal IV-D agency may not charge an application fee in an 
intergovernmental case referred to the Tribal IV-D agency for services 
under Sec.309.120.
    (3) No application fee may be charged to an individual receiving 
services under titles IV-A, IV-E foster care maintenance assistance, or 
XIX (Medicaid) of the Act.
    (4) The Tribal IV-D agency must exclude from its quarterly 
expenditure claims an amount equal to all fees which are collected and 
costs recovered during the quarter.

[69 FR 16672, Mar. 30, 2004, as amended at 85 FR 35208, June 9, 2020]



Sec.309.80  What safeguarding procedures must a Tribe or Tribal 
organization include in a Tribal IV-D plan?

    A Tribe or Tribal organization must include in its Tribal IV-D plan 
safeguarding provisions in accordance with this section:
    (a) Procedures under which the use or disclosure of personal 
information received by or maintained by the Tribal IV-D agency is 
limited to purposes directly connected with the administration of the 
Tribal IV-D program, or titles IV-A and XIX with the administration of 
other programs or purposes prescribed by the Secretary in regulations.
    (b) Procedures for safeguards that are applicable to all 
confidential information handled by the Tribal IV-D agency and that are 
designed to protect the privacy rights of the parties, including:
    (1) Safeguards against unauthorized use or disclosure of information 
relating to proceedings or actions to establish paternity, or to 
establish, modify or enforce support;
    (2) Prohibitions against the release of information on the 
whereabouts of one party or the child to another party against whom a 
protective order with respect to the former party or the child has been 
entered;
    (3) Prohibitions against the release of information on the 
whereabouts of one party or the child to another person if the Tribe has 
reason to believe that the release of the information to that person may 
result in physical or emotional harm to the party or child; and
    (4) Procedures in accordance with any specific safeguarding 
regulations applicable to Tribal IV-D programs promulgated by the 
Secretary.

[[Page 328]]

    (c) Procedures under which sanctions must be imposed for the 
unauthorized use or disclosure of information covered by paragraphs (a) 
and (b) of this section.



Sec.309.85  What records must a Tribe or Tribal organization agree
to maintain in a Tribal IV-D plan?

    A Tribal IV-D plan must provide that:
    (a) The Tribal IV-D agency will maintain records necessary for the 
proper and efficient operation of the program, including records 
regarding:
    (1) Applications for child support services;
    (2) Efforts to locate noncustodial parents;
    (3) Actions taken to establish paternity and obtain and enforce 
support;
    (4) Amounts owed, arrearages, amounts and sources of support 
collections, and the distribution of such collections;
    (5) IV-D program expenditures;
    (6) Any fees charged and collected, if applicable; and
    (7) Statistical, fiscal, and other records necessary for reporting 
and accountability required by the Secretary.
    (b) The Tribal IV-D agency will comply with the retention and access 
requirements at 45 CFR 75.361 through 75.370, including the requirement 
that records be retained for at least three years.

[69 FR 16672, Mar. 30, 2004, as amended at 81 FR 3021, Jan. 20, 2016]



Sec.309.90  What governing Tribal law or regulations must a Tribe or 
Tribal organization include in a Tribal IV-D plan?

    (a) A Tribe or Tribal organization must include in its Tribal IV-D 
plan Tribal law, code, regulations, and/or other evidence that provides 
for:
    (1) Establishment of paternity for any child up to and including at 
least 18 years of age;
    (2) Establishment and modification of child support obligations;
    (3) Enforcement of child support obligations, including requirements 
that Tribal employers comply with income withholding as required under 
Sec.309.110; and
    (4) Location of custodial and noncustodial parents.
    (b) In the absence of written laws and regulations, a Tribe or 
Tribal organization may provide in its plan detailed descriptions of any 
Tribal custom or common law with the force and effect of law which 
enables the Tribe or Tribal organization to satisfy the requirements in 
paragraph (a) of this section.



Sec.309.95  What procedures governing the location of custodial and
noncustodial parents must a Tribe or Tribal organization include in
a Tribal IV-D plan?

    A Tribe or Tribal organization must include in its Tribal IV-D plan 
the provisions governing the location of custodial and noncustodial 
parents and their assets set forth in this section.
    (a) The Tribal IV-D agency must attempt to locate custodial or 
noncustodial parents or sources of income and/or assets when location is 
required to take necessary action in a case; and
    (b) The Tribal IV-D agency must use all sources of information and 
records reasonably available to the Tribe or Tribal organization to 
locate custodial or noncustodial parents and their sources of income and 
assets.



Sec.309.100  What procedures for the establishment of paternity must
a Tribe or Tribal organization include in a Tribal IV-D plan?

    (a) A Tribe or Tribal organization must include in its Tribal IV-D 
plan the procedures for the establishment of paternity included in this 
section. The Tribe must include in its Tribal IV-D plan procedures under 
which the Tribal IV-D agency will:
    (1) Attempt to establish paternity by the process established under 
Tribal law, code, and/or custom in accordance with this section;
    (2) Provide an alleged father the opportunity to voluntarily 
acknowledge paternity; and
    (3) In a contested paternity case (unless otherwise barred by Tribal 
law) require the child and all other parties to submit to genetic tests 
upon the request of any such party, if the request is supported by a 
sworn statement by the party--
    (i) Alleging paternity, and setting forth facts establishing a 
reasonable

[[Page 329]]

possibility of the requisite sexual contact between parties; or
    (ii) Denying paternity, and setting forth facts establishing a 
reasonable possibility of the nonexistence of sexual contact between the 
parties.
    (b) The Tribal IV-D agency need not attempt to establish paternity 
in any case involving incest or forcible rape, or in any case in which 
legal proceedings for adoption are pending, if, in the opinion of the 
Tribal IV-D agency, it would not be in the best interests of the child 
to establish paternity.
    (c) When genetic testing is used to establish paternity, the Tribal 
IV-D agency must identify and use accredited laboratories which perform, 
at reasonable cost, legally and medically-acceptable genetic tests which 
intend to identify the father or exclude the alleged father.
    (d) Establishment of paternity under this section has no effect on 
Tribal enrollment or membership.



Sec.309.105  What procedures governing child support guidelines must 
a Tribe or Tribal organization include in a Tribal IV-D plan?

    (a) A Tribal IV-D plan must: (1) Establish one set of child support 
guidelines by law or action of the tribunal for setting and modifying 
child support obligation amounts;
    (2) Include a copy of child support guidelines governing the 
establishment and modification of child support obligations;
    (3) Indicate whether non-cash payments will be permitted to satisfy 
support obligations, and if so;
    (i) Require that Tribal support orders allowing non-cash payments 
also state the specific dollar amount of the support obligation; and
    (ii) Describe the type(s) of non-cash support that will be permitted 
to satisfy the underlying specific dollar amount of the support order; 
and
    (iii) Provide that non-cash payments will not be permitted to 
satisfy assigned support obligations;
    (4) Indicate that child support guidelines will be reviewed and 
revised, if appropriate, at least once every four years;
    (5) Provide that there shall be a rebuttable presumption, in any 
proceeding for the award of child support, that the amount of the award 
that would result from the application of the guidelines established 
consistent with this section is the correct amount of child support to 
be awarded; and
    (6) Provide for the application of the guidelines unless there is a 
written finding or a specific finding on the record of the tribunal that 
the application of the guidelines would be unjust or inappropriate in a 
particular case in accordance with criteria established by the Tribe or 
Tribal organization. Such criteria must take into consideration the 
needs of the child. Findings that rebut the guidelines must state the 
amount of support that would have been required under the guidelines and 
include a justification of why the order varies from the guidelines.
    (b) The guidelines established under paragraph (a) of this section 
must at a minimum:
    (1) Take into account the needs of the child and the earnings and 
income of the noncustodial parent; and
    (2) Be based on specific descriptive and numeric criteria and result 
in a computation of the support obligation.



Sec.309.110  What procedures governing income withholding must a Tribe
or Tribal organization include in a Tribal IV-D plan?

    A Tribe or Tribal organization must include in its Tribal IV-D plan 
copies of Tribal laws providing for income withholding in accordance 
with this section.
    (a) In the case of each noncustodial parent against whom a support 
order is or has been issued or modified under the Tribal IV-D plan, or 
is being enforced under such plan, so much of his or her income, as 
defined in Sec.309.05, must be withheld as is necessary to comply with 
the order.
    (b) In addition to the amount to be withheld to pay the current 
month's obligation, the amount withheld must include an amount to be 
applied toward liquidation of any overdue support.
    (c) The total amount to be withheld under paragraphs (a) and (b) of 
this section may not exceed the maximum amount permitted under section 
303(b) of the Consumer Credit Protection Act (15 U.S.C. 1673(b)), but 
may be set at a lower amount.

[[Page 330]]

    (d) Income withholding must be carried out in compliance with the 
procedural due process requirements established by the Tribe or Tribal 
organization.
    (e) The Tribal IV-D agency will promptly refund amounts which have 
been improperly withheld.
    (f) The Tribal IV-D agency will promptly terminate income 
withholding in cases where there is no longer a current order for 
support and all arrearages have been satisfied.
    (g) If the employer fails to withhold income in accordance with the 
provision of the income withholding order, the employer will be liable 
for the accumulated amount the employer should have withheld from the 
noncustodial parent's income.
    (h) Income shall not be subject to withholding in any case where:
    (1) Either the custodial or noncustodial parent demonstrates, and 
the tribunal enters a finding, that there is good cause not to require 
income withholding; or
    (2) A signed written agreement is reached between the noncustodial 
and custodial parent, which provides for an alternative arrangement, and 
is reviewed and entered into the record by the tribunal.
    (i) Where immediate income withholding is not in place, the income 
of the noncustodial parent shall become subject to withholding, at the 
earliest, on the date on which the payments which the noncustodial 
parent has failed to make under a Tribal support order are at least 
equal to the support payable for one month.
    (j) The only basis for contesting a withholding is a mistake of 
fact, which for purposes of this paragraph, means an error in the amount 
of current or overdue support or in the identity of the alleged 
noncustodial parent.
    (k) Tribal law must provide that the employer is subject to a fine 
to be determined under Tribal law for discharging a noncustodial parent 
from employment, refusing to employ, or taking disciplinary action 
against any noncustodial parent because of the withholding.
    (l) To initiate income withholding, the Tribal IV-D agency must send 
the noncustodial parent's employer a notice using the standard Federal 
income withholding form.
    (m) The Tribal IV-D agency must allocate withheld amounts across 
multiple withholding orders to ensure that in no case shall allocation 
result in a withholding for one of the support obligations not being 
implemented.
    (n) The Tribal IV-D agency is responsible for receiving and 
processing income withholding orders from States, Tribes, and other 
entities, and ensuring orders are properly and promptly served on 
employers within the Tribe's jurisdiction.



Sec.309.115  What procedures governing the distribution of child
support must a Tribe or Tribal organization include in a Tribal
IV-D plan?

    A Tribe or Tribal organization must specify in its Tribal IV-D plan 
procedures for the distribution of child support collections in each 
Tribal IV-D case, in accordance with this section.
    (a) General Rule: The Tribal IV-D agency must, in a timely manner:
    (1) Apply collections first to satisfy current support obligations, 
except as provided in paragraph (e) of this section; and
    (2) Pay all support collections to the family unless the family is 
currently receiving or formerly received assistance from the Tribal TANF 
program and there is an assignment of support rights to the Tribe's TANF 
agency, or the Tribal IV-D agency has received a request for assistance 
in collecting support on behalf of the family from a State or Tribal IV-
D agency.
    (b) Current Receipt of Tribal TANF: If the family is currently 
receiving assistance from the Tribal TANF program and has assigned 
support rights to the Tribe and:
    (1) There is no request for assistance in collecting support on 
behalf of the family from a State or Tribal IV-D agency under Sec.
309.120 of this part, the Tribal IV-D agency may retain collections on 
behalf of the family, not to exceed the total amount of Tribal TANF paid 
to the family. Any remaining collections must be paid to the family.
    (2) There is a request for assistance in collecting support on 
behalf of the family from a State or Tribal IV-D agency under Sec.
309.120, the Tribal IV-D

[[Page 331]]

agency may retain collections, not to exceed the total amount of Tribal 
TANF paid to the family. Except as provided in paragraph (f) of this 
section, the Tribal IV-D agency must send any remaining collections, as 
appropriate, to the requesting State IV-D agency for distribution under 
section 457 of the Act and 45 CFR 302.51 or 302.52, or to the requesting 
Tribal IV-D agency for distribution in accordance with this section.
    (c) Former Receipt of Tribal TANF: If the family formerly received 
assistance from the Tribal TANF program and there is an assignment of 
support rights to the Tribe and:
    (1) There is no request for assistance in collecting support from a 
State or Tribal IV-D agency under Sec.309.120 of this part, the Tribal 
IV-D agency must pay current support and any arrearages owed to the 
family to the family and may then retain any excess collections, not to 
exceed the total amount of Tribal TANF paid to the family. Any remaining 
collections must be paid to the family.
    (2) There is a request for assistance in collecting support from a 
State or Tribal IV-D agency under Sec.309.120 of this part, the Tribal 
IV-D agency must send all support collected, as appropriate, to the 
requesting State IV-D agency for distribution under section 457 of the 
Act or 45 CFR 302.51 or 302.52, or to the requesting Tribal IV-D agency 
for distribution under this section, except as provided in paragraph (f) 
of this section.
    (d) Requests for Assistance from State or Tribal IV-D Agency: If 
there is no assignment of support rights to the Tribe as a condition of 
receipt of Tribal TANF and the Tribal IV-D agency has received a request 
for assistance in collecting support on behalf of the family from a 
State or another Tribal IV-D agency under Sec.309.120 of this part, 
the Tribal IV-D agency must send all support collected to either the 
State IV-D agency for distribution in accordance with section 457 of the 
Act and 45 CFR 302.51 and 302.52, or to the Tribal IV-D agency for 
distribution under this section, as appropriate, except as provided in 
paragraph (f) of this section.
    (e) Federal Income Tax Refund Offset Collections: Any collections 
received based on Federal income tax refund offset under section 464 of 
the Act and distributed by the Tribal IV-D agency must be applied to 
satisfy child support arrearages.
    (f) Option to Contact Requesting Agency for Appropriate 
Distribution: Rather than send collections to a State or another Tribal 
IV-D agency for distribution as required under Sec.309.115 (b)(2), 
(c)(2) and (d), a Tribal IV-D agency may contact the requesting State 
IV-D agency to determine appropriate distribution under section 457 of 
the Act, or the other Tribal IV-D agency to determine appropriate 
distribution under this section, and distribute collections as directed 
by the other agency.

[69 FR 16672, Mar. 30, 2004, as amended at 81 FR 93569, Dec. 20, 2016]



Sec.309.120  What intergovernmental procedures must a Tribe or Tribal
organization include in a Tribal IV-D plan?

    A Tribe or Tribal organization must specify in its Tribal IV-D plan:
    (a) That the Tribal IV-D agency will extend the full range of 
services available under its IV-D plan to respond to all requests from, 
and cooperate with, State and other Tribal IV-D agencies; and
    (b) That the Tribe or Tribal organization will recognize child 
support orders issued by other Tribes and Tribal organizations, and by 
States, in accordance with the requirements under the Full Faith and 
Credit for Child Support Orders Act, 28 U.S.C. 1738B.



                  Subpart D_Tribal IV-D Program Funding



Sec.309.125  On what basis is Federal funding of Tribal IV-D programs
determined?

    Federal funding of Tribal IV-D programs is based on information 
contained in the Tribal IV-D application. The application must include a 
proposed budget and a description of the nature and scope of the Tribal 
IV-D program and must give assurance that the program will be 
administered in conformity with applicable requirements of title IV-D of 
the Act, regulations contained in this part, and other official 
issuances of the Department

[[Page 332]]

that specifically state applicability to Tribal IV-D programs.



Sec.309.130  How will Tribal IV-D programs be funded and what forms
are required?

    (a) General mechanism. (1) Tribes and Tribal organizations with 
approved Tribal plans under title IV-D will receive Federal grant funds 
in an amount equal to the percentage specified in paragraph (c) of this 
section of the total amount of approved and allowable expenditures under 
the plan for the administration of the Tribal child support enforcement 
program.
    (2) Tribes and Tribal organizations eligible for grants of less than 
$1 million per 12-month funding period will receive a single annual 
award. Tribes and Tribal organizations eligible for grants of $1 million 
or more per 12-month funding period will receive four equal quarterly 
awards.
    (b) Financial Form Submittal Requirements. Tribes and Tribal 
organizations receiving Federal funding under this part are required to 
submit the following financial forms, and such other forms as the 
Secretary may designate, to OCSE:
    (1) Standard Form (SF) 424, ``Application for Federal Assistance,'' 
to be submitted with the initial grant application for funding under 
Sec.309.65(a) and (b) (60 days prior to the start of the funding 
period);
    (2) SF 424A, ``Budget Information--Non-Construction Programs,'' to 
be submitted annually, no later than August 1 (60 days prior to the 
start of the funding period) in accordance with Sec.309.15(a)(2) of 
this part. With each submission, the following information must be 
included:
    (i) A quarter-by-quarter estimate of expenditures for the funding 
period; and
    (ii) Notification of whether the Tribe or Tribal organization is 
requesting funds for indirect costs and an election of a method to 
calculate estimated indirect costs; and
    (iii) A narrative justification for each cost category on the form; 
and for funding under Sec.309.65(a) either:
    (iv) A statement certifying that the Tribe or Tribal organization 
has or will have the non-Federal share of program expenditures 
available, as required, or
    (v) A request for a waiver of the non-Federal share in accordance 
with paragraph (e) of this section;
    (3) SF 425, ``Federal Financial Report,'' to be submitted quarterly 
within 30 days after the end of each of the first three quarters of the 
funding period and within 30 days after the end of each of the first 
three quarters of the liquidation period. The final report for each 
period is due within 90 days after the end of the fourth quarter of both 
the funding and the liquidation period; and
    (4) Form OCSE-34, ``Child Support Enforcement Program Quarterly 
Collection Report'' must be submitted no later than 45 days following 
the end of each fiscal quarter. No revisions or adjustments of the 
financial reports submitted for any quarter of the fiscal year will be 
accepted by OCSE later than December 31, which is 3 months after the end 
of the fiscal year.
    (c) Federal share of program expenditures. (1) During the period of 
start-up funding specified in Sec.309.16, a Tribe or Tribal 
organization will receive Federal grant funds equal to 100 percent of 
approved and allowable expenditures made during that period. Federal 
start-up funds are limited to a total of $500,000.
    (2) During a 3-year period, beginning with the first day of the 
first quarter of the funding grant specified under Sec.309.135(a)(2), 
a Tribe or Tribal organization will receive Federal grant funds equal to 
90 percent of the total amount of approved and allowable expenditures 
made during that period for the administration of the Tribal child 
support enforcement program.
    (3)(i) Except as provided in paragraph (c)(3)(ii) of this section, 
for all periods following the three-year period specified in paragraph 
(c)(2) of this section, a Tribe or Tribal organization will receive 
Federal grant funds equal to 80 percent of the total amount of approved 
and allowable expenditures made for the administration of the Tribal 
child support enforcement program.
    (ii) A Tribe or Tribal organization will receive Federal grant funds 
equal to 90 percent of pre-approved costs of

[[Page 333]]

installing the Model Tribal IV-D System.
    (d) Non-Federal share of program expenditures. Each Tribe or Tribal 
organization that operates a child support enforcement program under 
title IV-D and Sec.309.65(a), unless the Secretary has granted a 
waiver pursuant to Sec.309.130(e), must provide the non-Federal share 
of funding, equal to:
    (1) 10 percent of approved and allowable expenditures during the 3-
year period specified in paragraph (c)(2) of this section or;
    (2) 20 percent of approved and allowable expenditures during the 
subsequent periods specified in paragraph (c)(3) of this section.
    (3) The non-Federal share of program expenditures must be provided 
either with cash or with in-kind contributions and must meet the 
requirements found in 45 CFR 75.306.
    (e) Waiver of non-Federal share of program expenditures. (1) Under 
certain circumstances, the Secretary may grant a temporary waiver of 
part or all of the non-Federal share of expenditures.
    (i) If a Tribe or Tribal organization anticipates that it will be 
temporarily unable to contribute part or all of the non-Federal share of 
funding under paragraph (d) of this section, it must submit a written 
request that this requirement be temporarily waived. A request for a 
waiver of part or all of the non-Federal share must be sent to ACF, 
included with the submission of SF 424A, no later than 60 days prior to 
the start of the funding period for which the waiver is being requested, 
except as provided in paragraph (e)(1)(ii) of this section. An untimely 
or incomplete request will not be considered.
    (ii) If, after the start of the funding period, an emergency 
situation such as a hurricane or flood occurs such that the grantee 
would need to request a waiver of the non-Federal costs, it may do so. 
The request for a waiver must be submitted in accordance with the 
procedures specified in paragraphs (e)(2), (3) and (4) of this section. 
Any waiver request other than one submitted with the initial application 
must be submitted as soon as the adverse effect of the emergency 
situation giving rise to the request is known to the grantee.
    (2) A request for a waiver of part or all of the non-Federal share 
must include the following:
    (i) A statement of the amount of the non-Federal share that the 
Tribe is requesting be waived;
    (ii) A narrative statement describing the circumstances and 
justification for the waiver request;
    (iii) Portions of the Tribal budget for the funding period 
sufficient to demonstrate that any funding shortfall is not limited to 
the Tribal IV-D program and that any uncommitted Tribal reserve funds 
are insufficient to meet the non-Federal funding requirement;
    (iv) Copies of any additional financial documents in support of the 
request;
    (v) A detailed description of the attempts made to secure the 
necessary funds and in-kind contributions from other sources and the 
results of those attempts, including copies of all relevant 
correspondence; and
    (vi) Any other documentation or other information that the Secretary 
may require to make this determination.
    (3) The Tribe or Tribal organization must demonstrate to the 
satisfaction of the Secretary that it temporarily lacks resources to 
provide the non-Federal share. In its request for a temporary waiver, 
the Tribe or Tribal organization must be able to demonstrate that it:
    (i) Lacks sufficient resources to provide the required non-Federal 
share of costs;
    (ii) Has made reasonable, but unsuccessful, efforts to obtain non-
Federal share contributions; and
    (iii) Has provided all required information requested by the 
Secretary.
    (4) All statements in support of a waiver request must be supported 
by evidence including, but not limited to, a description of how the 
Tribe or Tribal organization's circumstances relate to its capacity to 
provide child support enforcement services. The following statements 
will be considered insufficient to merit a waiver under this section 
without documentary evidence satisfactory to the Secretary:
    (i) Funds have been committed to other budget items;
    (ii) A high rate of unemployment;

[[Page 334]]

    (iii) A generally poor economic condition;
    (iv) A lack of or a decline in revenue from gaming, fishing, timber, 
mineral rights and other similar revenue sources;
    (v) A small or declining tax base; and
    (vi) Little or no economic development.
    (5)(i) If approved, a temporary waiver submitted under either 
paragraph (e)(1)(i) or (ii) of this section will expire on the last day 
of the funding period for which it was approved and is subject to review 
at any time during the funding period and may be revoked, if changing 
circumstances warrant.
    (ii) Unless the Tribe receives a written approval of its waiver 
request, the funding requirements stated in paragraph (d) of this 
section remain in effect.
    (iii) If the request for a waiver is denied, the denial is not 
subject to administrative appeal.
    (f) Increase in approved budget. (1) A Tribe or Tribal organization 
may request an increase in the approved amount of its current budget by 
submitting a revised SF 424A to ACF and explaining why it needs the 
additional funds. The Tribe or Tribal organization should submit this 
request at least 60 days before additional funds are needed, to allow 
the Secretary adequate time to review the estimates and issue a revised 
grant award, if appropriate.
    (2) If the change in Tribal IV-D budget estimate results from a 
change in the Tribal IV-D plan, the Tribe or Tribal organization must 
submit a plan amendment in accordance with Sec.309.35(e) of this part, 
a revised SF 424 and a revised SF 424A with its request for additional 
funding. The effective date of a plan amendment may not be earlier than 
the first day of the fiscal quarter in which an approvable plan is 
submitted in accordance with Sec.309.35(f) of this part. The Secretary 
must approve the plan amendment before approving any additional funding.
    (3) Any approved increase in the Tribal IV-D budget will necessarily 
result in a proportional increase in the non-Federal share, unless a 
waiver of the non-Federal share has been granted.
    (g) Obtaining Federal funds. Tribes and Tribal organizations will 
obtain Federal funds on a draw down basis from the Department's Payment 
Management System on a letter of credit system for payment of advances 
of Federal funds.
    (h) Grant administration requirements. The provisions of part 75 of 
this title, establishing uniform administrative requirements and cost 
principles, shall apply to all grants made to Tribes and Tribal 
organizations under this part.

[69 FR 16672, Mar. 30, 2004, as amended at 75 FR 8520, Feb. 25, 2010; 81 
FR 3021, Jan. 20, 2016; 81 FR 93569, Dec. 20, 2016]



Sec.309.135  What requirements apply to funding, obligating and 
liquidating Federal title IV-D grant funds?

    (a) Funding period--(1) Ongoing funding. Federal title IV-D grant 
funds will be awarded to Tribes and Tribal organizations for use during 
a 12-month period equivalent to the Federal fiscal year of October 1 
through September 30.
    (2) Initial grant. A Tribe or Tribal organization may request that 
its initial IV-D grant be awarded for a funding period of less than one 
year (but at least six months) or more than one year (but not to exceed 
17 months) to enable its program funding cycle to coincide with the 
funding period specified in paragraph (a)(1) of this section.
    (b) Obligation period. A Tribe or Tribal organization must obligate 
its Federal title IV-D grant funds no later than the last day of the 
funding period for which they were awarded. Any of these funds remaining 
unobligated after that date must be returned to the Department.
    (c) Liquidation period. A Tribe or Tribal organization must 
liquidate the Federal title IV-D grant funds obligated during the 
obligation period specified in paragraph (b) of this section no later 
than the last day of the 12-month period immediately following the 
obligation period. Any of these funds remaining unliquidated after that 
date must be returned to the Department.
    (d) Funding reductions. As required under Sec.309.130(b)(3), a 
Tribe or Tribal organization will report quarterly on Form SF 269A the 
amount of Federal

[[Page 335]]

title IV-D grant funds that have been obligated and liquidated and the 
amounts that remain unobligated and unliquidated at the end of each 
fiscal quarter during the obligation and liquidation periods. The 
Department will reduce the amount of the Tribe or Tribal organization's 
Federal title IV-D grant funds for the funding period by any amount 
reported as remaining unobligated on the report following the last day 
of the obligation period. The Department will further reduce the amount 
of the Tribe or Tribal organization's Federal title IV-D grant funds for 
the funding period by any amount reported as remaining unliquidated on 
the report following the last day of the liquidation period.
    (e) Extension requests. A Tribe or Tribal organization may submit a 
written request for an extension of the deadline for liquidating Federal 
title IV-D grant funds. Such a request must be sent to ACF, to the 
attention of the Federal grants officer named on the most recent grant 
award. The request must be submitted as soon as it is clear that such an 
extension will be needed; any request received after the end of the 
liquidation period will not be considered. The request must include a 
detailed explanation of the extenuating circumstances or other reasons 
for the request and must state the date by which the Tribe anticipates 
all obligated funds will be liquidated. Unless the Tribe receives a 
written approval of its request, the deadline stated in paragraph (c) of 
this section remains in effect.



Sec.309.145  What costs are allowable for Tribal IV-D programs carried
out under Sec.309.65(a) of this part?

    Federal funds are available for costs of operating a Tribal IV-D 
program under an approved Tribal IV-D application carried out under 
Sec.309.65(a) of this part, provided that such costs are determined by 
the Secretary to be reasonable, necessary, and allocable to the program. 
Allowable activities and costs include:
    (a) Administration of the Tribal IV-D program, including but not 
limited to the following:
    (1) Establishment and administration of the Tribal IV-D plan;
    (2) Monitoring the progress of program development and operations, 
and evaluating the quality, efficiency, effectiveness, and scope of 
available support enforcement services;
    (3) Establishment of all necessary agreements with other Tribal, 
State, and local agencies or private providers for the provision of 
child support enforcement services in accordance with Procurement 
Standards found in 45 CFR 75.326 through 75.340. These agreements may 
include:
    (i) Necessary administrative agreements for support services;
    (ii) Use of Tribal, Federal, State, and local information resources;
    (iii) Cooperation with courts and law enforcement officials;
    (iv) Securing compliance with the requirements of the Tribal IV-D 
program plan in operations under any agreements;
    (v) Development and maintenance of systems for fiscal and program 
records and reports required to be made to OCSE based on these records; 
and
    (vi) Development of cost allocation systems.
    (b) Establishment of paternity, including:
    (1) Establishment of paternity in accordance with Tribal law codes, 
and/or custom in accordance with Sec.309.100 of this part, as outlined 
in the approved Tribal IV-D plan;
    (2) Reasonable attempts to determine the identity of a child's 
father, such as:
    (i) Investigation;
    (ii) Development of evidence, including the use of genetic testing 
performed by accredited laboratories; and
    (iii) Pre-trial discovery;
    (3) Actions taken by a tribunal to establish paternity pursuant to 
procedures established by Tribal law, and/or codes or custom in 
accordance with Sec.309.100 of this part;
    (4) Identifying accredited laboratories that perform genetic tests 
(as appropriate); and
    (5) Referrals of cases to another Tribal IV-D agency or to a State 
to establish paternity when appropriate.
    (c) Establishment, modification, and enforcement of support 
obligations, including:

[[Page 336]]

    (1) Investigation, development of evidence and, when appropriate, 
court or administrative actions;
    (2) Determination of the amount of the support obligation (including 
determination of income and allowable non-cash support under Tribal IV-D 
guidelines, if appropriate);
    (3) Enforcement of a support obligation, including those activities 
associated with collections and the enforcement of court orders, 
administrative orders, warrants, income withholding, criminal 
proceedings, and prosecution of fraud related to child support; and
    (4) Investigation and prosecution of fraud related to child and 
spousal support cases receiving services under the IV-D plan.
    (d) Collection and disbursement of support payments, including:
    (1) Establishment and operation of an effective system for making 
collections and identifying delinquent cases and collecting from them;
    (2) Referral or transfer of cases to another Tribal IV-D agency or 
to a State IV-D program when appropriate; and
    (3) Services provided for another Tribal IV-D program or for a State 
IV-D program.
    (e) Establishment and operation of a Tribal Parent Locator Service 
(TPLS) or agreements for referral of cases to a State PLS, another 
Tribal PLS, or the Federal PLS for location purposes.
    (f) Activities related to requests to State IV-D programs for 
enforcement services for the Federal Income Tax Refund Offset.
    (g) Establishing and maintaining case records.
    (h) Automated data processing computer systems, including:
    (1) Planning efforts in the identification, evaluation, and 
selection of an automated data processing computer system solution 
meeting the program requirements defined in a Tribal IV-D plan and the 
automated systems requirements in part 310 of this chapter;
    (2) Installation, operation, maintenance, and enhancement of a Model 
Tribal IV-D System as defined in and meeting the requirements of part 
310 of this title;
    (3) Procurement, installation, operation and maintenance of 
essential Office Automation capability;
    (4) Establishment of Intergovernmental Service Agreements with a 
State and another comprehensive Tribal IV-D agency for access to the 
State or other Tribe's existing automated data processing computer 
system to support Tribal IV-D program operations, and Reasonable Costs 
associated with use of such a system;
    (5) Operation and maintenance of a Tribal automated data processing 
system funded entirely with Tribal funds if the software ownership 
rights and license requirements in Sec.310.25(c)(1) are met; and
    (6) Other automation and automated data processing computer system 
costs in accordance with instructions and guidance issued by the 
Secretary.
    (i) Staffing and equipment that are directly related to operating a 
Tribal IV-D program.
    (j) The portion of salaries and expenses of a Tribe's chief 
executive and staff that is directly attributable to managing and 
operating a Tribal IV-D program.
    (k) The portion of salaries and expenses of tribunals and staff that 
is directly related to required Tribal IV-D program activities.
    (l) Service of process.
    (m) Training on a short-term basis that is directly related to 
operating a Tribal IV-D program.
    (n) Costs associated with obtaining technical assistance that are 
directly related to operating a IV-D program, from non-Federal third-
party sources, including other Tribes, Tribal organizations, State 
agencies, and private organizations, and costs associated with providing 
such technical assistance to public entities.
    (o) Any other costs that are determined to be reasonable, necessary, 
and allocable to the Tribal IV-D program in accordance with the cost 
principles in 45 CFR part 75, subpart E. The total amount that may be 
claimed under the Tribal IV-D grant are allowable direct costs, plus the 
allocable portion of allowable indirect costs, minus any applicable 
credits.
    (1) All claimed costs must be adequately documented; and
    (2) A cost is allocable if the goods or services involved are 
assignable to the grant according to the relative benefit

[[Page 337]]

received. Any cost that is allocable to one Federal award may not be 
charged to other Federal awards to overcome funding deficiencies, or for 
any other reason.

[69 FR 16672, Mar. 30, 2004, as amended at 75 FR 8520, Feb. 25, 2010; 81 
FR 3021, Jan. 20, 2016; 81 FR 93569, Dec. 20, 2016]



Sec.309.150  What start-up costs are allowable for Tribal IV-D
programs carried out under Sec.309.65(b) of this part?

    Federal funds are available for costs of developing a Tribal IV-D 
program, provided that such costs are reasonable, necessary, and 
allocable to the program. Federal funding for Tribal IV-D program 
development under Sec.309.65(b) may not exceed a total of $500,000, 
unless additional funding is provided pursuant to Sec.309.16(c). 
Allowable start-up costs and activities include:
    (a) Planning for the initial development and implementation of a 
Tribal IV-D program;
    (b) Developing Tribal IV-D laws, codes, guidelines, systems, and 
procedures;
    (c) Recruiting, hiring, and training Tribal IV-D program staff; and
    (d) Any other reasonable, necessary, and allocable costs with a 
direct correlation to the initial development of a Tribal IV-D program, 
consistent with the cost principles in 45 CFR part 75, subpart E, and 
approved by the Secretary.

[69 FR 16672, Mar. 30, 2004, as amended at 81 FR 3021, Jan. 20, 2016]



Sec.309.155  What uses of Tribal IV-D program funds are not allowable?

    Federal IV-D funds may not be used for:
    (a) Activities related to administering other programs, including 
those under the Social Security Act;
    (b) Construction and major renovations;
    (c) Any expenditures that have been reimbursed by fees or costs 
collected, including any fee collected from a State;
    (d) Expenditures for jailing of parents in Tribal IV-D cases;
    (e) The cost of legal counsel for indigent defendants in Tribal IV-D 
program actions;
    (f) The cost of guardians ad litem in Tribal IV-D cases; and
    (g) All other costs that are not reasonable, necessary, and 
allocable to Tribal IV-D programs, under the costs principles in 45 CFR 
part 75, subpart E.

[69 FR 16672, Mar. 30, 2004, as amended at 85 FR 35208, June 9, 2020]



                 Subpart E_Accountability and Monitoring



Sec.309.160  How will OCSE determine if Tribal IV-D program funds
are appropriately expended?

    OCSE will rely on audits conducted under 45 CFR part 75, Subpart F--
Audit Requirements. The Department has determined that this program is 
to be audited as a major program in accordance with section 215(c) of 
the circular. The Department may supplement the required audits through 
reviews or audits conducted by its own staff.

[69 FR 16672, Mar. 30, 2004, as amended at 81 FR 3021, Jan. 20, 2016; 81 
FR 93569, Dec. 20, 2016]



Sec.309.165  What recourse does a Tribe or Tribal organization have 
to dispute a determination to disallow Tribal IV-D program expenditures?

    If a Tribe or Tribal organization disputes a decision to disallow 
Tribal IV-D program expenditures, the grant appeals procedures outlined 
in 45 CFR part 16 are applicable.



       Subpart F_Statistical and Narrative Reporting Requirements



Sec.309.170  What statistical and narrative reporting requirements
apply to Tribal IV-D programs?

    (a) Tribes and Tribal organizations operating a Tribal IV-D program 
must submit to OCSE the Child Support Enforcement Program: Quarterly 
Report of Collections (Form OCSE-34). The reports for each of the first 
three quarters of the funding period are due 45 days after the end of 
each quarterly reporting period. The report for the fourth quarter is 
due 90 days after the

[[Page 338]]

end of the fourth quarter of each funding period.
    (b) Tribes and Tribal organizations must submit the following 
information and statistics for Tribal IV-D program activity and caseload 
for each annual funding period:
    (1) Total number of cases and, of the total number of cases, the 
number that are State or Tribal TANF cases and the number that are non-
TANF cases;
    (2) Total number of out-of-wedlock births in the previous year and 
total number of paternities established or acknowledged;
    (3) Total number of cases and the total number of cases with a 
support order;
    (4) Total amount of current support due and collected;
    (5) Total amount of past-due support owed and total collected;
    (6) A narrative report on activities, accomplishments, and progress 
of the program, including success in reaching the performance targets 
established by the Tribe or Tribal organization;
    (7) Total costs claimed;
    (8) Total amount of fees and costs recovered; and
    (9) Total amount of laboratory paternity establishment costs.
    (c) A Tribe or Tribal organization must submit Tribal IV-D program 
statistical and narrative reports required by paragraph (b) of this 
section no later than 90 days after the end of each funding period.

[69 FR 16672, Mar. 30, 2004, as amended at 85 FR 35208, June 9, 2020]



PART 310_COMPUTERIZED TRIBAL IV-D SYSTEMS AND OFFICE AUTOMATION--
Table of Contents



                      Subpart A_General Provisions

Sec.
310.0 What does this part cover?
310.1 What definitions apply to this part?

 Subpart B_Requirements for Computerized Tribal IV	D Systems and Office 
                               Automation

310.5 What options are available for Computerized Tribal IV-D Systems 
          and Office Automation?
310.10 What are the functional requirements for the Model Tribal IV-D 
          System?
310.15 What are the safeguards and processes that comprehensive Tribal 
          IV-D agencies must have in place to ensure the security and 
          privacy of Computerized Tribal IV-D Systems and Office 
          Automation?

   Subpart C_Funding for Computerized Tribal IV	D Systems and Office 
                               Automation

310.20 What are the conditions for funding the installation, operation, 
          maintenance and enhancement of Computerized Tribal IV-D 
          Systems and Office Automation?
310.25 What conditions apply to acquisitions of Computerized Tribal IV-D 
          Systems?
310.30 Under what circumstances would FFP be suspended or disallowed in 
          the costs of Computerized Tribal IV-D Systems?
310.35 Under what circumstances would emergency FFP be available for 
          Computerized Tribal IV-D Systems?

  Subpart D_Accountability and Monitoring Procedures for Computerized 
                           Tribal IV	D Systems

310.40 What requirements apply for accessing systems and records for 
          monitoring Computerized Tribal IV-D Systems and Office 
          Automation?

    Authority: 42 U.S.C. 655(f) and 1302.

    Source: 75 FR 8520, Feb. 25, 2010, unless otherwise noted.



                      Subpart A_General Provisions



Sec.310.0  What does this part cover?

    This part addresses conditions for funding and requirements 
governing Computerized Tribal IV-D Systems and Office Automation 
including:
    (a) The automated systems options for comprehensive Tribal IV-D 
programs in Sec.310.5 of this part;
    (b) The functional requirements for the Model Tribal IV-D Systems in 
Sec.310.10 of this part;
    (c) The security and privacy requirements for Computerized Tribal 
IV-D Systems and Office Automation in Sec.310.15 of this part;
    (d) The conditions for funding the installation, operation, 
maintenance, and enhancement of Computerized Tribal IV-D Systems and 
Office Automation in Sec.310.20 of this part;
    (e) The conditions that apply to acquisitions of Computerized Tribal 
IV-D Systems in Sec.310.25 of this part; and

[[Page 339]]

    (f) The accountability and monitoring of Computerized Tribal IV-D 
Systems in Sec.310.40 of this part.



Sec.310.1  What definitions apply to this part?

    (a) The following definitions apply to this part and part 309:
    (1) Automated Data Processing Services (ADP Services) means services 
for installation, maintenance, operation, and enhancement of ADP 
equipment and software performed by a comprehensive Tribal IV-D agency 
or for that agency through a services agreement or other contractual 
relationship with a State, another Tribe or private sector entity.
    (2) Comprehensive Tribal IV-D agency means the organizational unit 
in the Tribe or Tribal organization that has the authority for 
administering or supervising a comprehensive Tribal IV-D program under 
section 455(f) of the Act and implementing regulations in part 309 of 
this chapter. This is an agency meeting all requirements of Sec.
309.65(a) of this chapter which is not in the start-up phase under Sec.
309.65(b) of this chapter.
    (3) Computerized Tribal IV-D System means a comprehensive Tribal IV-
D program's system of data processing that is performed by electronic or 
electrical machines so interconnected and interacting as to minimize the 
need for human assistance or intervention. A Computerized Tribal IV-D 
System is:
    (i) The Model Tribal IV-D System; or
    (ii) Access to a State or comprehensive Tribal IV-D agency's 
existing automated data processing computer system through an 
Intergovernmental Service Agreement;
    (4) Installation means the act of installing ADP equipment and 
software, performing data conversion, and turnover to operation status.
    (5) Maintenance is the totality of activities required to provide 
cost-effective support to an operational ADP system. Maintenance is 
generally routine in nature and can include activities such as: 
Upgrading ADP hardware, and revising/creating new reports, making 
limited data element/data base changes, minor data presentation changes, 
and other software corrections.
    (6) Model Tribal IV-D System means an ADP system designed and 
developed by OCSE for comprehensive Tribal IV-D programs to include 
system specifications and requirements as specified in this part. The 
Model Tribal IV-D System effectively and efficiently allows a 
comprehensive Tribal IV-D agency to monitor, account for, and control 
all child support enforcement services and activities pursuant to part 
309 of this chapter.
    (7) Office Automation means a generic adjunct component of a 
computer system that supports the routine administrative functions in an 
organization (e.g., electronic mail, word processing, internet access), 
as well as similar functions performed as part of an automated data 
processing system. Office Automation is not specifically designed to 
meet the programmatic and business-centric needs of an organization.
    (8) Reasonable Cost means a cost that is determined to be reasonable 
if, in its nature and amount, it does not exceed that which would be 
incurred by a prudent person under the circumstances prevailing at the 
time the decision was made to incur the cost. In determining 
reasonableness with regard to ADP systems cost, consideration shall be 
given to:
    (i) Whether the cost is of a type generally recognized as ordinary 
and necessary for the operation of a comprehensive Tribal IV-D agency;
    (ii) The restraints or requirements imposed by such factors as: 
Sound business practices; arms-length bargaining; Federal, Tribal laws 
and regulations; and terms and conditions of any direct Federal funding;
    (iii) Whether the individual concerned acted with prudence in the 
circumstances considering his or her responsibilities to the 
comprehensive Tribal IV-D agency, its employees, the public at large, 
and the Federal Government;
    (iv) Market prices for comparable goods or services;
    (v) Significant deviations from the established practices of the 
comprehensive Tribal IV-D agency which may unjustifiably increase the 
cost; and

[[Page 340]]

    (vi) Whether a project's Total Acquisition Cost is in excess of the 
comprehensive Tribal IV-D agency's total Tribal IV-D program grant award 
for the year in which the request is made.
    (9) Service Agreement means a document signed by the Tribe or Tribal 
organization operating a comprehensive Tribal IV-D program under Sec.
309.65(a) and the State or other comprehensive Tribal IV-D program 
whenever the latter provides data processing services to the former and 
identifies those ADP services that the State or other comprehensive 
Tribal IV-D program will provide to the Tribe or Tribal organization. 
Additionally, a Service Agreement would include the following details:
    (i) Schedule of charges for each identified ADP service and a 
certification that these charges apply equally to all users;
    (ii) Description of the method(s) of accounting for the services 
rendered under the agreement and computing service charges;
    (iii) Assurances that services provided will be timely and 
satisfactory;
    (iv) Assurances that information in the computer system as well as 
access, use and disposal of ADP data will be safeguarded in accordance 
with proposed Sec.310.15;
    (v) Beginning and ending dates of the period of time covered by the 
Service Agreement; and
    (vi) Schedule of expected total charges for the period of the 
Service Agreement.
    (10) Simplified Acquisition Threshold for ADP systems, equipment, 
and service acquisitions means a Tribe or Tribal organization's monetary 
threshold for determining whether competitive acquisition rules are 
required for a given procurement or $100,000, whichever is less.
    (b) The following terms apply to this part and are defined in Sec.
95.605 of this title: ``Acquisition''; ``Advance Planning Document 
(APD)''; ``Design or System Design''; ``Development''; ``Enhancement''; 
``Federal Financial Participation (FFP)''; ``Operation''; ``Project''; 
``Software''; and ``Total Acquisition Cost''.
    (c) All of the terms defined in Sec.309.05 of this chapter apply 
to this part.



 Subpart B_Requirements for Computerized Tribal IV	D Systems and Office 
                               Automation



Sec.310.5  What options are available for Computerized Tribal
IV-D Systems and office automation?

    (a) Allowable computerized support enforcement systems for a 
Comprehensive Tribal IV-D agency. A comprehensive Tribal IV-D agency may 
have in effect an operational computerized support enforcement system 
that meets Federal requirements under this part.
    (b) Computerized Tribal IV-D Systems. A Computerized Tribal IV-D 
System must be one of the design options listed below. A comprehensive 
Tribal IV-D program may automate its case processing and recordkeeping 
processes through:
    (1) Installation, operation, maintenance, or enhancement of the 
Model Tribal IV-D System designed by OCSE to address the program 
requirements defined in a Tribal IV-D plan in accordance with Sec.
309.65(a) of this chapter and the functional requirements in Sec.
310.10 of this part;
    (2) Establishment of Intergovernmental Service Agreements with a 
State or another comprehensive Tribal IV-D agency for access to that 
agency's existing automated data processing computer system to support 
comprehensive Tribal IV-D program operations.
    (c) Office Automation. A comprehensive Tribal IV-D agency may opt to 
conduct automated data processing and recordkeeping activities through 
Office Automation. Allowable activities under this paragraph include 
procurement, installation, operation and maintenance of essential Office 
Automation capability as defined in Sec.310.1 of this part.
    (d) Alternative to Computerized Tribal IV-D Systems and Office 
Automation. A comprehensive Tribal IV-D agency may design, develop, 
procure, or enhance an automated data processing system funded entirely 
with Tribal funds.



Sec.310.10  What are the functional requirements for the Model Tribal
IV-D System?

    A Model Tribal IV-D System must:

[[Page 341]]

    (a) Accept, maintain and process the actions in the support 
collection and paternity determination processes under the Tribal IV-D 
plan, including:
    (1) Identifying information such as Social Security numbers, names, 
dates of birth, home addresses and mailing addresses (including postal 
zip codes) on individuals against whom paternity and support obligations 
are sought to be established or enforced and on individuals to whom 
support obligations are owed, and other data as may be requested by 
OCSE;
    (2) Verifying information on individuals referred to in paragraph 
(a)(1) of this section with Tribal, Federal, State and local agencies, 
both intra-tribal and intergovernmental;
    (3) Maintaining information pertaining to:
    (i) Applications and referrals for Tribal IV-D services, including:
    (A) Case record;
    (B) Referral to the appropriate processing unit (i.e., locate or 
paternity establishment);
    (C) Caseworker notification;
    (D) Case Identification Number; and
    (E) Participant Identification Number;
    (ii) Delinquency and enforcement activities;
    (iii) Intra-tribal, intergovernmental, and Federal location of the 
putative father and noncustodial parents;
    (iv) The establishment of paternity;
    (v) The establishment of support obligations;
    (vi) The payment and status of current support obligations;
    (vii) The payment and status of arrearage accounts;
    (4) Maintaining data on case actions administered by both the 
initiating and responding jurisdictions in intergovernmental cases;
    (b) Update, maintain and manage all IV-D cases under the Tribal IV-D 
plan from initial application or referral through collection and 
enforcement, including any events, transactions, or actions taken 
therein;
    (c) Record and report any fees collected, either directly or by 
interfacing with State or Tribal financial management and expenditure 
information;
    (d) Distribute current support and arrearage collections in 
accordance with Federal regulations at Sec.309.115 of this chapter and 
Tribal laws;
    (e) Maintain, process and monitor accounts receivable on all amounts 
owed, collected, and distributed with regard to:
    (1) Detailed payment histories that include the following:
    (i) Amount of each payment;
    (ii) Date of each collection;
    (iii) Method of payment;
    (iv) Distribution of payments; and
    (v) Date of each disbursement;
    (2) Automated income withholding activities such as:
    (i) Recording and maintaining any date the noncustodial parent 
defaults on payment of the support obligation in an amount equal to the 
support payable for one month;
    (ii) Generating the Standard Federal Income Withholding Form; and
    (iii) Allocating amounts received by income withholding according to 
Sec. Sec.309.110 and 309.115 of this chapter.
    (f) Maintain and automatically generate data necessary to meet 
Federal reporting requirements on a timely basis as prescribed by OCSE. 
At a minimum this must include:
    (1) Yearly notices on support collected, which are itemized by month 
of collection and provided to families receiving services under the 
comprehensive Tribal IV-D program as required in Sec.309.75(c) of this 
chapter, to all case participants regarding support collections; and
    (2) Reports submitted to OCSE for program monitoring and program 
performance as required in Sec.309.170 of this chapter;
    (g) Provide automated processes to enable OCSE to monitor Tribal IV-
D program operations and to assess program performance through the audit 
of financial and statistical data maintained by the system; and
    (h) Provide security to prevent unauthorized access to, or use of, 
the data in the system as detailed in Sec.310.15 of this part.

[[Page 342]]



Sec.310.15  What are the safeguards and processes that comprehensive
Tribal IV-D agencies must have in place to ensure the security and 
privacy of Computerized Tribal IV-D Systems and Office Automation?
          

    (a) Information integrity and security. The comprehensive Tribal IV-
D agency must have safeguards on the integrity, accuracy, completeness, 
access to, and use of data in the Computerized Tribal IV-D System and 
Office Automation. Computerized Tribal IV-D Systems and Office 
Automation should be compliant with the Federal Information Security 
Management Act, and the Privacy Act. The required safeguards must 
include written policies and procedures concerning the following:
    (1) Periodic evaluations of the system for risk of security and 
privacy breaches;
    (2) Procedures to allow Tribal IV-D personnel controlled access and 
use of IV-D data, including:
    (i) Specifying the data which may be used for particular IV-D 
program purposes, and the personnel permitted access to such data;
    (ii) Permitting access to and use of data for the purpose of 
exchanging information with State and Tribal agencies administering 
programs under titles IV-A, IV-E and XIX of the Act to the extent 
necessary to carry out the comprehensive Tribal IV-D agency's 
responsibilities with respect to such programs;
    (3) Maintenance and control of application software program data;
    (4) Mechanisms to back-up and otherwise protect hardware, software, 
documents, and other communications; and,
    (5) Mechanisms to report breaches or suspected breaches of 
personally identifiable information to the Department of Homeland 
Security, and to respond to those breaches.
    (b) Monitoring of access. The comprehensive Tribal IV-D agency must 
monitor routine access to and use of the Computerized Tribal IV-D System 
and Office Automation through methods such as audit trails and feedback 
mechanisms to guard against, and promptly identify, unauthorized access 
or use;
    (c) Training and information. The comprehensive Tribal IV-D agency 
must have procedures to ensure that all personnel, including Tribal IV-D 
staff and contractors, who may have access to or be required to use 
confidential program data in the Computerized Tribal IV-D System and 
Office Automation are adequately trained in security procedures.
    (d) Penalties. The comprehensive Tribal IV-D agency must have 
administrative penalties, including dismissal from employment, for 
unauthorized access to, disclosure or use of confidential information.



   Subpart C_Funding for Computerized Tribal IV	D Systems and Office 
                               Automation



Sec.310.20  What are the conditions for funding the installation, 
operation, maintenance and enhancement of Computerized Tribal IV-D
Systems and Office Automation?
          

    (a) Conditions that must be met for FFP at the applicable matching 
rate in Sec.309.130(c) of this chapter for Computerized Tribal IV-D 
Systems. The following conditions must be met to obtain 90 percent FFP 
in the costs of installation of the Model Tribal IV-D System and FFP at 
the applicable matching rate under Sec.309.130(c) of this chapter in 
the costs of operation, maintenance, and enhancement of a Computerized 
Tribal IV-D System:
    (1) A comprehensive Tribal IV-D agency must have submitted, and OCSE 
must have approved, an Advance Planning Document (APD) for the 
installation and enhancement of a Computerized Tribal IV-D System;
    (2) An APD for installation of a Computerized Tribal IV-D System 
must:
    (i) Represent the sole systems effort being undertaken by the 
comprehensive Tribal IV-D agency under this part;
    (ii) Describe the projected resource requirements for staff, 
hardware, software, network connections and other needs and the 
resources available or expected to be available to meet the 
requirements;
    (iii) Contain a proposed schedule of project milestones with detail 
sufficient to describe the tasks, activities, and complexity of the 
initial implementation project;

[[Page 343]]

    (iv) Contain a proposed budget including a description of 
expenditures by category and amount for items related to installing, 
operating, maintaining, and enhancing the Computerized Tribal IV-D 
System; and
    (v) Contain a statement that the comprehensive Tribal IV-D agency 
agrees in writing to use the Computerized Tribal IV-D System for a 
minimum period of time;
    (3) The following conditions, in addition to those in paragraphs 
(a)(1) and (2) of this section, must be met to obtain FFP in the 
installation costs of access to a State or another comprehensive Tribal 
IV-D program's ADP system established under an Intergovernmental Service 
Agreement. The comprehensive Tribal IV-D agency must:
    (i) Maintain a copy of each intergovernmental cooperative agreement 
and Service Agreement in its files for Federal review; and
    (ii) Ensure that the:
    (A) Service Agreement for which FFP is being sought, meets the 
definition of a Service Agreement as defined in Sec.310.1 of this 
title;
    (B) Claims for FFP conform to the timely claim provisions of part 95 
subpart A of this title; and
    (C) Service Agreement was not previously disapproved by the 
Department.
    (4) The following conditions, in addition to those in paragraphs 
(a)(1) through (3) of this section, must be met in order for a 
comprehensive Tribal IV-D agency to obtain FFP in the costs of 
enhancements to its Computerized Tribal IV-D System:
    (i) The project's Total Acquisition Cost cannot exceed the 
comprehensive Tribal IV-D agency's total Tribal IV-D program grant award 
for the year in which the acquisition request is made; and
    (ii) The APD budget, schedule and commitment to use the Computerized 
Tribal IV-D System for a specified minimum period of time must be 
updated to reflect the enhancement project.
    (5) To receive FFP in the costs of the operation and maintenance of 
a Computerized Tribal IV-D System installed under Sec.310.20 or 
developed under Sec.309.145(h)(5), which refers to a Tribal automated 
data processing system that is funded entirely with Tribal funds, the 
comprehensive Tribal IV-D agency must include operation and maintenance 
costs in its annual Title IV-D program budget submission in accordance 
with Sec.309.15(c) of this chapter;
    (6) To receive FFP in the costs of the installation, operation, and 
maintenance of essential Office Automation capabilities, the 
comprehensive Tribal IV-D agency must include such costs in its annual 
Title IV-D program budget submission in accordance with Sec.309.15(c) 
of this chapter;
    (b) Procedure for APD Submittal. The comprehensive Tribal IV-D 
agency must submit an APD for a Computerized Tribal IV-D System to the 
Commissioner of OCSE, Attention: Division of State and Tribal Systems. 
The APD submitted by the comprehensive Tribal IV-D agency must be 
approved and signed by the comprehensive Tribal IV-D agency Director and 
the appropriate Tribal officials prior to submission to OCSE for 
approval.



Sec.310.25  What conditions apply to acquisitions of Computerized
Tribal IV-D Systems?

    (a) APD Approval. A comprehensive Tribal IV-D agency must have an 
approved APD in accordance with the applicable requirements of Sec.
310.20 of this part prior to initiating acquisition of a Computerized 
Tribal IV-D System.
    (b) Procurements. Requests for Proposals (RFP) and similar 
procurement documents, contracts, and contract amendments involving 
costs eligible for FFP, must be submitted to OCSE for approval prior to 
release of the procurement document, and prior to the execution of the 
resultant contract when a procurement is anticipated to or will exceed 
the Simplified Acquisition Threshold;
    (c) Software and ownership rights. (1) All procurement and contract 
instruments must include a clause that provides that the comprehensive 
Tribal IV-D agency will have all ownership rights to Computerized Tribal 
IV-D System software or enhancements thereof and all associated 
documentation designed, developed or installed with FFP. 
Intergovernmental Service

[[Page 344]]

Agreements are not subject to this paragraph.
    (2) OCSE reserves a royalty-free, nonexclusive, and irrevocable 
license to reproduce, publish, or otherwise use and to authorize others 
to use for Federal Government purposes, such software, modifications and 
documentation.
    (3) FFP is not available for the costs of rental or purchase of 
proprietary application software developed specifically for a 
Computerized Tribal IV-D System. Commercial-off-the-shelf (COTS) 
software packages that are sold or leased to the general public at 
established catalog or market prices are not subject to the ownership 
and license provisions of this requirement.
    (d) Requirements for acquisitions under the threshold amount. A 
comprehensive Tribal IV-D agency is not required to submit procurement 
documents, contracts, and contract amendments for acquisitions under the 
Simplified Acquisition Threshold unless specifically requested to do so 
in writing by OCSE.



Sec.310.30  Under what circumstances would FFP be suspended or
disallowed in the costs of Computerized Tribal IV-D Systems?

    (a) Suspension of APD approval. OCSE will suspend approval of the 
APD for a Computerized Tribal IV-D System approved under this part as of 
the date that the system ceases to comply substantially with the 
criteria, requirements, and other provisions of the APD. OCSE will 
notify a Tribal IV-D agency in writing in a notice of suspension, with 
such suspension effective as of the date on which there is no longer 
substantial compliance.
    (b) Suspension of FFP. If OCSE suspends approval of an APD in 
accordance with this part during the installation, operation, or 
enhancement of a Computerized Tribal IV-D System, FFP will not be 
available in any expenditure incurred under the APD after the date of 
the suspension until the date OCSE determines that the comprehensive 
Tribal IV-D agency has taken the actions specified in the notice of 
suspension described in paragraph (a) of this section. OCSE will notify 
the comprehensive Tribal IV-D agency in writing upon making such a 
determination.



Sec.310.35  Under what circumstances would emergency FFP be available
for Computerized Tribal IV-D Systems?

    (a) Conditions that must be met for emergency FFP. OCSE will 
consider waiving the approval requirements for acquisitions in emergency 
situations, such as natural or man-made disasters, upon receipt of a 
written request from the comprehensive Tribal IV-D agency. In order for 
OCSE to consider waiving the approval requirements in Sec.310.25 of 
this part, the following conditions must be met:
    (1) The comprehensive Tribal IV-D agency must submit a written 
request to OCSE prior to the acquisition of any ADP equipment or 
services. The written request must be sent by registered mail and 
include:
    (i) A brief description of the ADP equipment and/or services to be 
acquired and an estimate of their costs;
    (ii) A brief description of the circumstances which resulted in the 
comprehensive Tribal IV-D agency's need to proceed prior to obtaining 
approval from OCSE; and
    (iii) A description of the harm that will be caused if the 
comprehensive Tribal IV-D agency does not acquire immediately the ADP 
equipment and services.
    (2) Upon receipt of the information, OCSE will, within 14 working 
days of receipt, take one of the following actions:
    (i) Inform the comprehensive Tribal IV-D agency in writing that the 
request has been disapproved and the reason for disapproval; or
    (ii) Inform the comprehensive Tribal IV-D agency in writing that 
OCSE recognizes that an emergency exists and that within 90 calendar 
days from the date of the initial written request under paragraph (a)(1) 
of this section the comprehensive Tribal IV-D agency must submit a 
formal request for approval which includes the information specified at 
Sec.310.25 of this title in order for the ADP equipment or services 
acquisition to be considered for OCSE's approval.
    (b) Effective date of emergency FFP. If OCSE approves the request 
submitted under paragraph (a)(2) of this section, FFP will be available 
from the date the

[[Page 345]]

comprehensive Tribal IV-D agency acquires the ADP equipment and 
services.



  Subpart D_Accountability and Monitoring Procedures for Computerized 
                           Tribal IV	D Systems



Sec.310.40  What requirements apply for accessing systems and records
for monitoring Computerized Tribal IV-D Systems and Office Automation?

    In accordance with part 95 of this title, a comprehensive Tribal IV-
D agency must allow OCSE access to the system in all of its aspects, 
including installation, operation, and cost records of contractors and 
subcontractors, and of Service Agreements at such intervals as are 
deemed necessary by OCSE to determine whether the conditions for FFP 
approval are being met and to determine the efficiency, effectiveness, 
reasonableness of the system and its cost.

                        PARTS 311	399 [RESERVED]

[[Page 347]]



CHAPTER IV--OFFICE OF REFUGEE RESETTLEMENT, ADMINISTRATION FOR CHILDREN 
          AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES




  --------------------------------------------------------------------
Part                                                                Page
400             Refugee Resettlement Program................         349
401             Cuban/Haitian Entrant Program...............         383
402             State Legalization Impact Assistance Grants.         384
403             Review of regulations (Eff. 3-22-22)........         397
404-409        [Reserved]

410             Care and placement of unaccompanied alien 
                    children................................         399
411             Standards to prevent, detect, and respond to 
                    sexual abuse and sexual harassment 
                    involving unaccompanied children........         409
412-499        [Reserved]

[[Page 349]]



PART 400_REFUGEE RESETTLEMENT PROGRAM--Table of Contents



                         Subpart A_Introduction

Sec.
400.1 Basis and purpose of the program.
400.2 Definitions.
400.3 [Reserved]

           Subpart B_Grants to States for Refugee Resettlement

                             The State Plan

400.4 Purpose of the plan.
400.5 Content of the plan.
400.6 [Reserved]
400.7 Submittal of the State plan and plan amendments for Governor's 
          review.
400.8 Approval of State plans and plan amendments.
400.9 Administrative review of decisions on approval of State plans and 
          plan amendments.
400.10 [Reserved]

                        Award of Grants to States

400.11 Award of Grants to States.
400.12 Adverse determinations concerning State grants.
400.13 Cost allocation.

                    Subpart C_General Administration

400.20-400.21 [Reserved]
400.22 Responsibility of the State agency.
400.23 Hearings.
400.24 [Reserved]
400.25 Residency requirements.
400.26 [Reserved]
400.27 Safeguarding and sharing of information.
400.28 Maintenance of records and reports.

       Subpart D_Immigration Status and Identification of Refugees

400.40 Scope.
400.41 Definitions.

                     Documentation of Refugee Status

400.43 Requirements for documentation of refugee status.
400.44 Restriction.

                    Subpart E_Refugee Cash Assistance

400.45 Requirements for the operation of an AFDC-type RCA program.
400.48 Basis and scope.
400.49 Recovery of overpayments and correction of underpayments.
400.50 Opportunity to apply for cash assistance.
400.51 Determination of eligibility under other programs.
400.52 Emergency cash assistance to refugees.
400.53 General eligibility requirements.
400.54 Notice and Hearings.
400.55 Availability of agency policies.

                       Public/Private RCA Program

400.56 Structure.
400.57 Planning and consultation process.
400.58 Content and submission of public/private RCA plan.
400.59 Eligibility for the public/private RCA program.
400.60 Payment levels.
400.61 Services to public/private RCA recipients.
400.62 Treatment of eligible secondary migrants, asylees, and Cuban/
          Haitian entrants.
400.63 Preparation of local resettlement agencies.

                   Publicly-Administered RCA Programs

400.65 Continuation of a public-administered RCA program.
400.66 Eligibility and payment levels in a publicly-administered RCA 
          program.
400.67 Non-applicable TANF requirements.
400.68 Notification to local resettlement agency.
400.69 Alternative RCA programs.

 Applications, Determinations of Eligibility, and Furnishing Assistance

400.55 Opportunity to apply for cash assistance.
400.56 Determination of eligibility under other programs.
400.57 Emergency cash assistance to refugees.

          Conditions of Eligibility for Refugee Cash Assistance

400.60 General eligibility requirements.
400.61 Consideration of income and resources.
400.62 Need standards and payment levels.
400.63 Proration of shelter, utilities, and similar needs.
400.64 Other AFDC requirements applicable to refugee cash assistance.

    Subpart F_Requirements for Employability Services and Employment

400.70 Basis and scope.
400.71 Definitions.
400.72 Arrangements for employability services.

                          General Requirements

400.75 Registration for employment services, participation in 
          employability service programs and targeted assistance 
          programs, going to job interviews, and

[[Page 350]]

          acceptance of appropriate offers of employment.
400.76 Criteria for exemption from registration for employment services, 
          participation in employability service programs, and 
          acceptance of appropriate offers of employment.
400.77 Effect of quitting employment or failing or refusing to 
          participate in required services.
400.79 Development of an employability plan.

     Criteria for Appropriate Employability Services and Employment

400.81 Criteria for appropriate employability services and employment.

    Failure or Refusal To Accept Employability Services or Employment

400.82 Failure or refusal to accept employability services or 
          employment.
400.83 Mediation and fair hearings.

                  Subpart G_Refugee Medical Assistance

400.90 Basis and scope.
400.91 Definitions.

 Applications, Determinations of Eligibility, and Furnishing Assistance

400.93 Opportunity to apply for medical assistance.
400.94 Determination of eligibility for Medicaid.

        Conditions of Eligibility for Refugee Medical Assistance

400.100 General eligibility requirements.
400.101 Financial eligibility standards.
400.102 Consideration of income and resources.
400.103 Coverage of refugees who spend down to State financial 
          eligibility standards.
400.104 Continued coverage of recipients who receive increased earnings 
          from employment.

                        Scope of Medical Services

400.105 Mandatory services.
400.106 Additional services.
400.107 Medical screening.

                    Subpart H_Child Welfare Services

400.110 Basis and scope.
400.111 Definitions.
400.112 Child welfare services for refugee children.
400.113 Duration of eligibility.
400.114 [Reserved]
400.115 Establishing legal responsibility.
400.116 Service for unaccompanied minors.
400.117 Provision of care and services.
400.118 Case planning.
400.119 Interstate movement.
400.120 Reporting requirements.

                    Subpart I_Refugee Social Services

400.140 Basis and scope.
400.141 Definitions.

 Applications, Determinations of Eligibility, and Provision of Services

400.145 Opportunity to apply for services.

                     Funding and Service Priorities

400.146 Use of funds.
400.147 Priority in provision of services.

                          Purchase of Services

400.148 Purchase of services.

          Conditions of Eligibility for Refugee Social Services

400.150 General eligibility requirements.
400.152 Limitations on eligibility for services.

                    Scope of Refugee Social Services

400.154 Employability services.
400.155 Other services.
400.156 Service requirements.

                        Subpart J_Federal Funding

400.200 Scope.

    Federal Funding For Expenditures for Determining Eligibility and 
                    Providing Assistance and Services

400.202 Extent of Federal funding.
400.203 Federal funding for cash assistance.
400.204 Federal funding for medical assistance.
400.205 Federal funding for assistance and services for unaccompanied 
          minors.
400.206 Federal funding for social services and targeted assistance 
          services.
400.207 Federal funding for administrative costs.
400.208 Claims involving family units which include both refugees and 
          nonrefugees.
400.209 Claims involving family units which include refugees who have 
          been in the United States more than 36 months.
400.210 Time limits for obligating and expending funds and for filling 
          State claims.
400.211 Methodology to be used to determine time-eligibility of 
          refugees.
400.212 Restrictions in the use of funds.
400.220 Counting time-eligibility of refugees.

                    Subpart K_Waivers and Withdrawals

400.300 Waivers.
400.301 Withdrawal from the refugee program.

[[Page 351]]

                      Subpart L_Targeted Assistance

400.310 Basis and scope.
400.311 Definitions.
400.312 Opportunity to apply for services.

                     Funding and Service Priorities

400.313 Use of funds.
400.314 Priority in provision of services.
400.315 General eligibility requirements.
400.316 Scope of targeted assistance services.
400.317 Service requirements.
400.318 Eligible grantees.
400.319 Allocation of funds.

    Authority: Section 412(a)(9), Immigration and Nationality Act (8 
U.S.C. 1522(a)(9)).

    Source: 45 FR 59323, Sept. 9, 1980, unless otherwise noted.



                         Subpart A_Introduction



Sec.400.1  Basis and purpose of the program.

    (a) This part prescribes requirements concerning grants to States 
and other public and private non-profit agencies, wherever applicable 
under title IV of the Immigration and Nationality Act.
    (b) It is the purpose of this program to provide for the effective 
resettlement of refugees and to assist them to achieve economic self-
sufficiency as quickly as possible.
    (c) Under the authority in section 412(a)(6)(B) of the Immigration 
and Nationality Act, the Director has established the provision of 
employment services and English language training as a priority in 
accomplishing the purpose of this program.

[51 FR 3912, Jan. 30, 1986, as amended at 60 FR 33601, June 28, 1995]



Sec.400.2  Definitions.

    The following definitions are applicable for purposes of this part:
    AABD means aid to the aged, blind, and disabled under title XVI of 
the Social Security Act.
    AB means aid to the blind under title X of the Social Security Act.
    Act means the Immigration and Nationality Act.
    APTD means aid to the permanently and totally disabled under title 
XIV of the Social Security Act.
    Case management services means the determination of which service(s) 
to refer a refugee to, referral to such service(s), and tracking of the 
refugee's participation in such service(s).
    Cash assistance means financial assistance to refugees, including 
TANF, SSI, refugee cash assistance, and general assistance, as defined 
herein, under title IV of the Act.
    Designee, when referring to the State agency's designee, means an 
agency designated by the State agency for the purpose of carrying out 
the requirements of this part.
    Director means the Director, Office of Refugee Resettlement.
    Economic self-sufficiency means earning a total family income at a 
level that enables a family unit to support itself without receipt of a 
cash assistance grant.
    Family unit means an individual adult, married individuals without 
children, or parents, or custodial relatives, with minor children who 
are not eligible for TANF, who live in the same household.
    Federal Funding or `FF' means Federal funding for a State's 
expenditures under the refugee resettlement program.
    General assistance program means a financial and/or medical 
assistance program existing in a State or local jurisdiction which: (a) 
Is funded entirely by State and/or local funds; (b) is generally 
available to needy persons residing in the State or locality who meet 
specified income and resource requirements; and (c) consists of one-time 
emergency, or ongoing assistance intended to meet basic needs of 
recipients, such as food, clothing, shelter, medical care, or other 
essentials of living.
    HHS means the Department of Health and Human Services.
    Local resettlement agency means a local affiliate or subcontractor 
of a national voluntary agency that has entered into a grant, contract, 
or cooperative agreement with the United States Department of State or 
other appropriate Federal agency to provide for the reception and 
initial placement of refugees in the United States.
    Medical assistance means medical services to refugees, including 
Medicaid, refugee medical assistance, and general assistance, as defined 
herein, under title IV of the Act.

[[Page 352]]

    National voluntary agency means one of the national resettlement 
agencies or a State or local government that has entered into a grant, 
contract, or cooperative agreement with the United States Department of 
State or other appropriate Federal agency to provide for the reception 
and initial placement of refugees in the United States.
    OAA means old age assistance under title I of the Social Security 
Act.
    ORR means the Office of Refugee Resettlement.
    Plan means a written description of the State's refugee resettlement 
program and a commitment by the State to administer or supervise the 
administration of the program in accordance with Federal requirements in 
this part.
    RCA Plan means a written description of the public/private RCA 
program administered by local resettlement agencies under contract or 
grant with a State.
    Refugee means an individual who meets the definitions of a refugee 
under section 101(a)(42) of the Act.
    Refugee cash assistance (RCA) means cash assistance provided under 
section 412(e) of the Act to refugees who are ineligible for TANF, OAA, 
AB, APTD, AABD, or SSI.
    Refugee medical assistance (RMA) means: (a) Medical assistance 
provided under section 412(e) of the Act to refugees who are ineligible 
for the Medicaid program; and (b) services provided in accordance with 
Sec. Sec.400.106 and 400.107 of this part.
    Secretary means the Secretary of HHS.
    Sponsor means an individual, church, civic organization, State or 
local government, or other group or organization which has agreed to 
help in the reception and initial placement of refugees in the United 
States and other public and private non-profit agencies, wherever.
    SSI means supplemental security income under title XVI of the Social 
Security Act.
    State means the 50 States, the District of Columbia, Guam, Puerto 
Rico, the Virgin Islands, the Commonwealth of the Northern Mariana 
Islands, American Samoa, and the Trust Territories of the Pacific.
    State agency means the agency (or agencies) designated by the 
Governor or the appropriate legislative authority of the State to 
develop and administer, or supervise the administration of, the plan and 
includes any local agencies administering the plan under supervision of 
the State agency.
    State Coordinator means the individual designated by the Governor or 
the appropriate legislative authority of the State to be responsible 
for, and who is authorized to, ensure coordination of public and private 
resources in refugee resettlement.
    Support services means services provided or contracted for by a 
State, which are designed to meet resettlement needs of refugees, for 
which funding is available under title IV of the Act.
    TANF means temporary assistance for needy families under Title IV-A 
of the Social Security Act.
    Time-eligibility means the period for which FF (Federal funding) is 
provided under Sec. Sec.400.203 and 400.204 of this part, after 
applying the limitation ``[s]ubject to the availability of funds'' in 
accordance with Sec.400.202.
    Title IV of the Act means title IV, Chapter 2, of the Immigration 
and Nationality Act.

[51 FR 3912, Jan. 30, 1986, as amended at 54 FR 5475, Feb. 3, 1989; 58 
FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 1993; 65 FR 15442, Mar. 
22, 2000]



Sec.400.3  [Reserved]



           Subpart B_Grants to States for Refugee Resettlement

                             The State Plan



Sec.400.4  Purpose of the plan.

    (a) In order for a State to receive refugee resettlement assistance 
from funds appropriated under section 414 of the Act, it must submit to 
ORR a plan that meets the requirements of title IV of the Act and of 
this part and that is approved under Sec.400.8 of this part.
    (b) A State must certify no later than 30 days after the beginning 
of each Federal fiscal year that the approved State plan is current and 
continues in effect. If a State wishes to change its plan, a State must 
submit a

[[Page 353]]

proposed amendment to the plan. The proposed amendment will be reviewed 
and approved or disapproved in accordance with Sec.400.8.

[51 FR 3912, Jan. 30, 1986, as amended at 60 FR 33602, June 28, 1995]



Sec.400.5  Content of the plan.

    The plan must:
    (a) Provide for the designation of, and describe the organization 
and functions of, a State agency (or agencies) responsible for 
developing the plan and administering, or supervising the administration 
of, the plan;
    (b) Describe how the State will coordinate cash and medical 
assistance with support services to ensure their successful use to 
encourage effective refugee resettlement and to promote employment and 
economic self-sufficiency as quickly as possible.
    (c) Describe how the State will ensure that language training and 
employment services are made available to refugees receiving cash 
assistance, and to other refugees, including State efforts to actively 
encourage refugee registration for employment services;
    (d) Identify an individual designated by the Governor or the 
appropriate legislative authority of the State, with the title of State 
Coordinator, who is employed by the State and will have the 
responsibility and authority to ensure coordination of public and 
private resources in refugee resettlement in the State;
    (e) Provide for, and describe the procedures established for, the 
care and supervision of, and legal responsibility (including legal 
custody and/or guardianship under State law, as appropriate) for, 
unaccompanied refugee children in the State;
    (f) Provide for and describe (1) the procedures established to 
identify refugees who, at the time of resettlement in the State, are 
determined to have medical conditions requiring, or medical histories 
indicating a need for, treatment or observation, and (2) the procedures 
established to monitor any necessary treatment or observation;
    (g) Provide that assistance and services funded under the plan will 
be provided to refugees without regard to race, religion, nationality, 
sex, or political opinion; and
    (h) Provide that the State will, unless exempted from this 
requirement by the Director, assure that meetings are convened, not less 
often than quarterly, whereby representatives of local resettlement 
agencies, local community service agencies, and other agencies that 
serve refugees meet with representatives of State and local governments 
to plan and coordinate the appropriate placement of refugees in advance 
of the refugees' arrival. All existing exemptions to this requirement 
will expire 90 days after the effective date of this rule. Any State 
that wishes to be exempted from the provisions regarding the holding and 
frequency of meetings may apply by submitting a written request to the 
Director. The request must set forth the reasons why the State considers 
these meetings unnecessary because of the absence of problems associated 
with the planning and coordination of refugee placement. An approved 
exemption will remain in effect for three years, at which time a State 
may reapply.
    (i) Provide that the State will:
    (1) Comply with the provisions of title IV, Chapter 2, of the Act 
and official issuances of the Director;
    (2) Meet the requirements in this part;
    (3) Comply with all other applicable Federal statutes and 
regulations in effect during the time that it is receiving grant 
funding; and
    (4) Amend the plan as needed to comply with standards, goals, and 
priorities established by the Director.

(Approved by the Office of Management and Budget under control number 
0960-0418)

[51 FR 3912, Jan. 30, 1986, as amended at 60 FR 33602, June 28, 1995; 65 
FR 15443, Mar. 22, 2000]



Sec.400.6  [Reserved]



Sec.400.7  Submittal of the State plan and plan amendments for Governor's 
review.

    A plan or plan amendment under title IV of the Act must be submitted 
to the State Governor or his or her designee, for review, comment, and 
signature before the plan is submitted to ORR.

[51 FR 3913, Jan. 30, 1986]

[[Page 354]]



Sec.400.8  Approval of State plans and plan amendments.

    (a) The State agency must submit the State plan and plan amendments 
which have been signed by the Governor, or his or her designee, together 
with one copy of such plan or amendment, to the Director of ORR, or his 
or her designee, for approval. States are encouraged to consult with the 
Director, or his or her designee, when a plan or amendment is in 
preparation.
    (b) The Director, or his or her designee, may initiate any necessary 
discussions with the State agency to clarify aspects of the plan.
    (c) No later than 45 days after the State plan or plan amendment is 
submitted, the Director, or his or her designee, will--(1) Determine 
whether a State plan or plan amendment meets or continues to meet 
requirements for approval based on relevant Federal statutes and 
regulations, and (2) approve or disapprove the plan or plan amendment.
    (d) The Director, or designee, will notify the State agency promptly 
of all actions taken on State plans and amendments.
    (e) The effective date of an approved State plan or plan amendment 
may not be earlier than the first day of the calendar quarter in which 
the State agency submits the plan or plan amendment, except as otherwise 
approved by the Director.

[51 FR 3913, Jan. 30, 1986]



Sec.400.9  Administrative review of decisions on approval of State 
plans and plan amendments.

    (a) Any State dissatisfied with a determination by the Director, or 
his or her designee, under Sec.400.8 with respect to any plan or plan 
amendment may, within 60 days after the date of notification of such 
determination, file a petition with the Director, or designee, for 
reconsideration of the determination.
    (b) A State may request that a hearing be held, but it is not 
required to do so.
    (c) If a State requests a hearing, the Director, or designee, will 
notify the State within 30 days after receipt of such a petition, of the 
time and location of the hearing to reconsider the issue.
    (d) The hearing must be held not less than 30 days nor more than 60 
days after the date the notice of the hearing is furnished to the State, 
unless the Director, or designee, and the State agree in writing on 
another time.
    (e) The hearing procedures in part 213 of this title will be used 
except that:
    (1) ``The Director'' is substituted where there is a reference to 
``the Administrator,'' and
    (2) ``ORR Hearing Clerk'' is substituted where there is reference to 
the ``SRS Hearing Clerk.''
    (f) The Director will affirm, modify, or reverse the original 
decisions within 60 days of the receipt of the State's petition or, if a 
hearing is held, within 60 days after the hearing.
    (g) The initial determination by the Director, or designee, that a 
plan or amendment is not approvable shall remain in effect pending the 
reconsideration.
    (h) If the Director reverses the original decision, ORR will 
reimburse any funds incorrectly withheld or otherwise denied.

[51 FR 3913, Jan. 30, 1986]



Sec.400.10  [Reserved]

                        Award of Grants to States



Sec.400.11  Award of Grants to States.

    (a) Quarterly grants. Subject to the availability of funds (and in 
accordance with the limitations of subpart J of this part), ORR will 
make two types of quarterly grants to eligible States:
    (1) Grants for cash assistance, medical assistance, and related 
administrative costs (``CMA grants''), for the following purposes: Cash 
assistance provided by a State or local public agency under the program 
of temporary assistance for needy families (TANF) under part A of title 
IV of the Social Security Act, under the adult assistance programs 
(AABD, AB, APTD, or OAA) in the territories, or under section 412(e) of 
the Immigration and Nationality Act; foster care maintenance provided 
under part E of title IV of the Social Security Act; State supplementary 
payments under section 1616(a) of the Social Security Act or section 212 
of the Pub. L.

[[Page 355]]

93-66; medical assistance under title XIX of the Social Security Act or 
under section 412(e) of the Immigration and Nationality Act; assistance 
and services to unaccompanied minors under section 412(d)(2)(B) of the 
Immigration and Nationality Act; and cash or medical assistance provided 
under a public assistance program established under authority other than 
Federal law and under which such assistance is generally available to 
needy individuals or families in similar circumstances within the State; 
and
    (2) Grants for social services, as set forth in this part. ORR will 
compute the amount of the quarterly awards based on documents submitted 
by the State agency in accordance with this section and such other 
pertinent facts as the Director may find necessary.
    (b) Form and manner of State application for grant award--(1) CMA 
grants. For quarterly grants for cash assistance, medical assistance, 
and related administrative costs, including assistance and services to 
unaccompanied minors (``CMA grants''), a State must submit to the 
Director, or designee, yearly estimates for reimbursable costs for the 
fiscal year, identified by type of expense, and a justification 
statement in support of the estimates no later than 45 days prior to the 
beginning of the fiscal year in accordance with guidelines prescribed by 
the Director.
    (2) Grants for refugee social services. For quarterly grants for 
refugee social services, a State must submit to the Director, or 
designee, an annual plan developed on the basis of local consultative 
process on a form and at a time prescribed by the Director.
    (3) Quarterly adjustments. If a State revises its estimates required 
in paragraph (b)(1), it must submit to the Director, or designee, the 
revisions, accompanied by a justification statement, no later than 30 
days prior to the beginning of the quarter in which the revision or 
adjustment applies.
    (c) Financial status report. A State must submit to the Director, or 
designee, a financial status report described in Sec.75.341 of this 
title, no later than 30 days after the end of each quarter. Final 
financial reports must be submitted in accordance with the requirements 
described in Sec.400.210.
    (d) Review. ORR will determine whether the State's description of 
services, estimates, other relevant information, and any adjustments to 
be made for prior periods meet the requirements under this part, and 
will compute the quarterly award.
    (e) Grant award. (1) ORR will transmit to the State the grant award 
form showing, by type of assistance, the amount of the award.
    (2) The State may draw funds, under the Department's Payment 
Management System (PMS), as needed, to meet the Federal share of 
disbursements.

(Approved by the Office of Management and Budget under control number 
0960-0418)

[51 FR 3913, Jan. 30, 1986, as amended at 54 FR 5475, Feb. 3, 1989; 60 
FR 33602, June 28, 1995; 65 FR 15443, Mar. 22, 2000; 81 FR 3021, Jan. 
20, 2016]



Sec.400.12  Adverse determinations concerning State grants.

    (a) Policy. The Secretary has established a Departmental Grant 
Appeals Board for the purpose of reviewing and providing hearings on 
post-award disputes which may arise in the administration of certain 
grant programs by constituent agencies of HHS. Section 16.3(c) of this 
title mandates an appellant to exhaust any preliminary appeal process 
required by regulation before a formal appeal to the Board will be 
allowed. Paragraph (d) of this section provides an informal preliminary 
appeal process for resolution of such disputes within ORR prior to 
appeal to the Board.
    (b) Scope. Adverse determinations to which this procedure is 
applicable are as follows:
    (1) Termination, in whole or in part, of a grant for failure of the 
grantee to carry out its approved project or program in accordance with 
applicable law and the terms and conditions of such assistance or for 
failure of the grantee otherwise to comply with any law, regulation, 
assurance, term, or condition applicable to the grant.
    (2) A determination that an expenditure not allowable under the 
grant has been charged to the grant or that the grantee has otherwise 
failed to discharge its obligation to account for grant funds.

[[Page 356]]

    (3) The disapproval of a grantee's written request for permission to 
incur an expenditure during the term of a grant.
    (4) A determination that a grant is void because the award was 
obtained fraudulently, or was otherwise illegal or invalid from 
inception.
    (c) Notice of adverse determination. If the Director, or his or her 
designee, makes an adverse determination with respect to a grant, he or 
she shall promptly issue a notice of adverse determination to the State 
which contains the reasons for the determination in sufficient detail to 
enable the State agency to respond and informing the State agency of the 
opportunity for review under paragraph (d) of this section.
    (d) Request for review of an adverse determination. (1) If the State 
agency wants a review of the determination, it must submit a request for 
such review to the Director no later than 30 days after the postmark on 
the notice, unless an extension of time is granted for good cause.
    (2) The request for review must contain a full statement of the 
State's position with respect to the determination being appealed and 
the pertinent facts and reasons in support of such position. The State 
agency must attach to the submission a copy of the notice.
    (3) The Director may, at his or her discretion, invite the State to 
discuss pertinent issues and to submit such additional information as he 
or she deems appropriate.
    (4) Based on his or her review, the Director will send a written 
response to the State. If the response is adverse to the State's 
position, the correspondence shall state the State's right to appeal to 
the Departmental Grant Appeals Board, pursuant to part 16 of this title.
    (e) Request for appeal of an adverse determination. (1) To appeal an 
adverse determination, a State agency must file an appeal with the 
Departmental Grant Appeals Board, in accordance with requirements 
contained in part 16 of this title.
    (2) The State's application for review must be postmarked no later 
than 30 days after the postmark on the Director's response to the 
State's request for review in paragraph (d)(4) of this section.

[51 FR 3914, Jan. 30, 1986]



Sec.400.13  Cost allocation.

    (a) A State must allocate costs, both direct and indirect, 
appropriately between the Refugee Resettlement Program (RRP) and other 
programs which it administers.
    (b) Within the RRP, a State must allocate costs appropriately among 
its CMA grant, social services grant, and any other Refugee Resettlement 
Program (RRP) grants which it may receive, as prescribed by the 
Director.
    (c) Certain administrative costs incurred for the overall management 
of the State's refugee program (e.g., development of the State plan, 
overall program coordination, and salary and travel costs of the State 
Refugee Coordinator), as identified by the Director, may be charged to 
the CMA grant. All other costs must be allocated among the CMA grant, 
social services grant, and any other Refugee Resettlement Program (RRP) 
grants.
    (d) Costs of case management services, as defined in Sec.400.2, 
may not be charged to the CMA grant.
    (e) Administrative costs incurred by local resettlement agencies in 
the administration of the public/private RCA program (i.e., 
administrative costs of providing cash assistance) may be charged to the 
CMA grant. Administrative costs of managing the services component of 
the RCA program must be charged to the social services grant.

[54 FR 5476, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995; 65 
FR 15443, Mar. 22, 2000]



                    Subpart C_General Administration

    Source: 51 FR 3914, Jan. 30, 1986, unless otherwise noted.



Sec. Sec.400.20-400.21  [Reserved]



Sec.400.22  Responsibility of the State agency.

    (a) The State agency may not delegate, to other than its own 
officials, responsibility for administering or supervising the 
administration of the plan.
    (b) The State agency must have--

[[Page 357]]

    (1) Methods for informing staff of State policies, standards, 
procedures, and instructions; and
    (2) Systematic planned examination and evaluation of operations in 
local offices.



Sec.400.23  Hearings.

    (a) A State must provide applicants for, and recipients of, 
assistance and services under the Act with an opportunity for a hearing 
to contest adverse determinations using hearing procedures set forth in 
Sec.205.10(a) of this title for public assistance programs unless 
otherwise specified in this part.
    (b) If the issue is the date of entry into the United States of an 
applicant for or recipient of assistance or services, the State or its 
designee must provide for prompt resolution of the issue by inspection 
of the individual's documentation issued by the Immigration and 
Naturalization Service (INS) or by information obtained from INS, rather 
than by hearing.

[51 FR 3914, Jan. 30, 1986, as amended at 65 FR 15443, Mar. 22, 2000]



Sec.400.24  [Reserved]



Sec.400.25  Residency requirements.

    A State may not impose requirements as to duration of residence as a 
condition of participation in the State's program for the provision of 
assistance or services.



Sec.400.26  [Reserved]



Sec.400.27  Safeguarding and sharing of information.

    (a) Except for purposes directly connected with, and necessary to, 
the administration of the program, a State must ensure that no 
information about, or obtained from, an individual and in possession of 
any agency providing assistance or services to such individual under the 
plan, will be disclosed in a form identifiable with the individual 
without the individual's consent, or if the individual is a minor, the 
consent of his or her parent or guardian.
    (b) The provision by a State to a local resettlement agency or by a 
local resettlement agency to a State, of information as to whether an 
individual has applied for or is receiving cash assistance and the 
individual's address and telephone number is to be considered undertaken 
for a purpose directly connected with, and necessary to, the 
administration of the program during the first 36 months after such 
individual's entry into the United States.

[51 FR 3914, Jan. 30, 1986, as amended at 54 FR 5476, Feb. 3, 1989; 65 
FR 15443, Mar. 22, 2000]



Sec.400.28  Maintenance of records and reports.

    (a) A State must provide for the maintenance of such operational 
records as are necessary for Federal monitoring of the State's refugee 
resettlement program in accordance with 45 CFR 75.361 through 75.370. 
This recordkeeping must include:
    (1) Documentation of services and assistance provided, including 
identification of individuals receiving those services;
    (2) Records on the location, progress, and status of unaccompanied 
minor refugee children, including the last known address of parents; and
    (3) Documentation that necessary medical followup services and 
monitoring have been provided.
    (b) A State must submit statistical or programmatic information that 
the Director determines to be required to fulfill his or her 
responsibility under the Act on refugees who receive assistance and 
services which are provided, or the costs of which are reimbursed, under 
the Act.

(Approved by the Office of Management and Budget under control number 
0960-0418)

[51 FR 3914, Jan. 30, 1986, as amended at 81 FR 3021, Jan. 20, 2016]



       Subpart D_Immigration Status and Identification of Refugees

    Source: 51 FR 3915, Jan. 30, 1986, unless otherwise noted.



Sec.400.40  Scope.

    This subpart sets forth requirements concerning the immigration 
status and identification of eligible applicants for assistance under 
title IV of the Act.

[[Page 358]]



Sec.400.41  Definitions

    For purposes of this subpart--
    Applicant for asylum means an individual who has applied for, but 
has not been granted, asylum under section 208 of the Act.
    Asylee means an individual who has been granted asylum under section 
208 of the Act.

                     Documentation of Refugee Status



Sec.400.43  Requirements for documentation of refugee status.

    (a) An applicant for assistance under title IV of the Act must 
provide proof, in the form of documentation issued by the Immigration 
and Naturalization Service (INS), of one of the following statuses under 
the Act as a condition of eligibility:
    (1) Paroled as a refugee or asylee under section 212(d)(5) of the 
Act;
    (2) Admitted as a refugee under section 207 of the Act;
    (3) Granted asylum under section 208 of the Act;
    (4) Cuban and Haitian entrants, in accordance with requirements in 
45 CFR part 401;
    (5) Certain Amerasians from Vietnam who are admitted to the U.S. as 
immigrants pursuant to section 584 of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1988 (as contained 
in section 101(e) of Public Law 100-202 and amended by the 9th proviso 
under Migration and Refugee Assistance in title II of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Acts, 
1989 (Public Law 100-461 as amended)); or
    (6) Admitted for permanent residence, provided the individual 
previously held one of the statuses identified above.
    (b) The Director will issue instructions specifying the 
documentation that applicants for assistance must submit.

[51 FR 3915, Jan. 30, 1986, as amended at 65 FR 15443, Mar. 22, 2000]



Sec.400.44  Restriction.

    An applicant for asylum is not eligible for assistance under title 
IV of the Act unless otherwise provided by Federal law.

[51 FR 3915, Jan. 30, 1986, as amended at 65 FR 15443, Mar. 22, 2000]



                    Subpart E_Refugee Cash Assistance

    Source: 65 FR 15443, Mar. 22, 2000, unless otherwise noted.



Sec.400.45  Requirements for the operation of an AFDC-type RCA program.

    This section applies to a State's RCA program that follows the 
State's rules under the Aid to Families with Dependent Children (AFDC) 
program under title IV-A of the Social Security Act, prior to amendment 
by Public Law 104-33. A State must continue to apply these rules to its 
RCA program until it implements a new RCA program under Sec.400.56 or 
Sec.400.65. A State that receives an approved waiver under Sec.
400.300 to continue an AFDC-type RCA program must follow the rules in 
this section.
    (a) Recovery of overpayments and correction of underpayments. The 
State agency must comply with regulations at Sec.233.20(a)(13) of this 
title governing recovery of overpayments and correction of underpayments 
in the AFDC program.
    (b) Opportunity to apply for cash assistance. (1) A State must 
provide any individual wishing to do so, an opportunity to apply for 
cash assistance and must determine the eligibility of each applicant.
    (2) In determining eligibility for cash assistance, the State must--
    (i) Comply with the regulations at part 206 of this title governing 
applications, determinations of eligibility, and furnishing assistance 
under public assistance programs, as applicable to the AFDC program;
    (ii) Determine eligibility for other cash assistance programs in 
accordance with Sec.400.51; and
    (iii) Comply with regulations at Sec. Sec.400.54(a)(3) and 400.68.
    (c) Emergency cash assistance to refugees--A State must comply with 
the regulations at Sec.400.52.
    (d) General eligibility requirements--A State must comply with the 
regulations at Sec.400.53.

[[Page 359]]

    (e) Consideration of income and resources. In considering the income 
and resources of applicants for and recipients of refugee cash 
assistance, the State agency must:
    (1) Apply the regulations at Sec.233.20(a)(3) through (2) of this 
title for considering income and resources of AFDC applicants; and
    (2) Apply the regulations at Sec.400.66(b) through (d).
    (f) Need standards and payment levels. (1) In determining need for 
refugee cash assistance, a State agency must use the State's AFDC need 
standards established under Sec.233.20(a)(1) and (2) of this title.
    (2) In determining the amount of the refugee cash assistance payment 
to an eligible refugee who meets the standards in paragraph (f)(1) of 
this section and applying the consideration of income and resources in 
paragraph (e) of this section and in Sec.400.66(b) through (d), a 
State must pay 100 percent of the payment level which would be 
appropriate for an eligible filing unit of the same size under the AFDC 
program.
    (3) The State agency may use the date of application as the date 
refugee cash assistance begins in order to provide payments quickly to 
newly arrived refugees.
    (g) Proration of shelter, utilities, and similar needs--If a State 
prorated allowances for shelter, utilities, and similar needs in its 
AFDC program under Sec.233.20(a)(5) of this title, it must prorate 
such allowances in the same manner in its refugee assistance programs.
    (h) Other AFDC requirements applicable to refugee cash assistance--
In administering the program of refugee cash assistance, the State 
agency must also apply the following AFDC regulations in this title:
    233.31 Budgeting methods for AFDC.
    233.32 Payment and budget months (AFDC).
    233.33 Determining eligibility prospectively for all payment months 
(AFDC).
    233.34 Computing the assistance payment in the initial one or two 
months (AFDC).
    233.35 Computing the assistance payment under retrospective 
budgeting after the initial one or two months (AFDC).
    233.36 Monthly reporting (AFDC)--which shall apply to recipients of 
refugee cash assistance who have been in the United States more than 6 
months.
    233.37 How monthly reports are treated and what notices are required 
(AFDC).
    235.110 Fraud.

                                 General



Sec.400.48  Basis and scope.

    This subpart sets forth requirements concerning grants to States 
under section 412(e) of the Act for refugee cash assistance (RCA). 
Sections 400.48 through 400.55 apply to both public/private RCA programs 
and publicly-administered RCA programs.



Sec.400.49  Recovery of overpayments and correction of underpayments.

    The State agency or its designee agency(s) must maintain a procedure 
to ensure recovery of overpayments and correction of underpayments in 
the RCA program.



Sec.400.50  Opportunity to apply for cash assistance.

    (a) A State or its designee agency(s) must provide any individual 
wishing to do so, an opportunity to apply for cash assistance and must 
determine the eligibility of each applicant as promptly as possible 
within no more than 30 days from the date of application.
    (b) A State or its designee agency(s) must inform applicants about 
the eligibility requirements and the rights and responsibilities of 
applicants and recipients under the program.
    (c) In determining eligibility for cash assistance, the State or its 
designee agency(s) must promptly refer elderly or disabled refugees and 
refugees with dependent children to other cash assistance programs to 
apply for assistance in accordance with Sec.400.51.



Sec.400.51  Determination of eligibility under other programs.

    (a) TANF. For refugees determined ineligible for cash assistance 
under the TANF program, the State or its designee must determine 
eligibility for refugee cash assistance in accordance with Sec. Sec.
400.53 and 400.59 in the case of the public/private RCA program or

[[Page 360]]

Sec. Sec.400.53 and 400.66 in the case of a publicly-administered RCA 
program.
    (b) Cash assistance to the aged, blind, and disabled--(1) SSI. (i) 
The State agency or its designee must refer refugees who are 65 years of 
age or older, or who are blind or disabled, promptly to the Social 
Security Administration to apply for cash assistance under the SSI 
program.
    (ii) If the State agency or its designee determines that a refugee 
who is 65 years of age or older, or blind or disabled, is eligible for 
refugee cash assistance, it must furnish such assistance until 
eligibility for cash assistance under the SSI program is determined, 
provided the conditions of eligibility for refugee cash assistance 
continue to be met.
    (2) OAA, AB, APTD, or AABD. In Guam, Puerto Rico, and the Virgin 
Islands--
    (i) Eligibility for cash assistance under the OAA, AB, APTD, or AABD 
program must be determined for refugees who are 65 years or older, or 
who are blind or disabled; and
    (ii) If a refugee who is 65 years of age or older, or blind or 
disabled, is determined to be eligible for refugee cash assistance, such 
assistance must be furnished until eligibility for cash assistance under 
the OAA, AB, APTD, or AABD program is determined, provided the 
conditions of eligibility for refugee cash assistance continue to be 
met.



Sec.400.52  Emergency cash assistance to refugees.

    If the State agency or its designee determines that a refugee has an 
urgent need for cash assistance, it should process the application for 
cash assistance as quickly as possible and issue the initial payment to 
the refugee on an emergency basis.



Sec.400.53  General eligibility requirements.

    (a) Eligibility for refugee cash assistance is limited to those 
who--
    (1) Are new arrivals who have resided in the U.S. less than the RCA 
eligibility period determined by the ORR Director in accordance with 
Sec.400.211;
    (2) Are ineligible for TANF, SSI, OAA, AB, APTD, and AABD programs;
    (3) Meet immigration status and identification requirements in 
subpart D of this part or are the dependent children of, and part of the 
same family unit as, individuals who meet the requirements in subpart D, 
subject to the limitation in Sec.400.208 with respect to nonrefugee 
children; and
    (4) Are not full-time students in institutions of higher education, 
as defined by the Director.
    (b) A refugee may be eligible for refugee cash assistance under this 
subpart during a period to be determined by the Director in accordance 
with Sec.400.211.



Sec.400.54  Notice and hearings.

    (a) Timely and adequate notice. (1) A written notice must be sent or 
provided to a recipient at least 10 days before the date upon which 
refugee cash assistance will be reduced, suspended, or terminated.
    (2) In providing notice to an applicant or recipient to indicate 
that assistance has been authorized, denied, reduced, suspended, or 
terminated, the written notice must clearly state the action that will 
be taken, the reasons for the action, and the right to request a 
hearing.
    (3) In providing notice to an applicant or recipient to indicate 
that assistance has been authorized, denied, reduced, suspended, or 
terminated, the State or its designee agency(s) must specify the 
program(s) to which the notice applies, clearly distinguishing between 
RCA and other assistance programs. For example, in the case of a 
publicly-administered program, if a refugee applies for assistance and 
is determined ineligible for TANF but eligible for refugee cash 
assistance, the notice to the applicant must specify clearly the 
determinations with respect both to TANF and to refugee cash assistance. 
When a recipient of refugee cash assistance is notified of termination 
because of reaching the time limit on such assistance, the State or its 
designee must review the case file to determine possible eligibility for 
TANF or GA due to changed circumstances and the notice to the recipient 
must indicate the result of that determination as well as the 
termination of RCA.

[[Page 361]]

    (b) Hearings. All applicants for and recipients of refugee cash 
assistance must be provided an opportunity for a hearing to contest 
adverse determinations. States must ensure that hearings meet the due 
process standards in Goldberg v. Kelly, 397 U.S. 254 (1970).
    (1) Public/private RCA programs. The State must specify in the 
public/private RCA plan the hearing procedures to be used in the RCA 
program. The plan may specify that the local resettlement agency(s) will 
refer all hearing requests to a State-administered hearing process. If 
the plan does not specify the use of a State-administered hearing 
process, then the procedures to be followed must include:
    (i) The State or local resettlement agency(s) responsible for the 
provision of RCA must provide an applicant for or recipient of refugee 
cash assistance an opportunity for an oral hearing to contest adverse 
determinations. Hearings must be conducted by an impartial official or 
designee of the State or local resettlement agency who has not been 
involved directly in the initial determination of the action in 
question.
    (ii) The State must ensure that procedures are established to 
provide refugees a right of final appeal for an in-person hearing 
provided by an impartial, independent entity outside of the local 
resettlement agency.
    (iii) Final administrative action must be taken within 60 days from 
the date of a request for a hearing.
    (2) Publicly-administered RCA programs. The State must specify in 
the State Plan referenced in Sec.400.4 the public agency hearing 
procedures it intends to use in the RCA program.
    (3) In both a public/private RCA program and a publicly-administered 
RCA program, the written notice of any hearing determination must 
adequately explain the basis for the decision and the refugee's right to 
request any further administrative or judicial review.
    (4) In both a public/private RCA program and a publicly-administered 
RCA program, a refugee's benefits may not be terminated prior to 
completion of final administrative action, but are subject to recovery 
by the agency if the action is sustained.
    (5) In both a public/private RCA program and a publicly-administered 
RCA program, a hearing need not be granted when Federal law requires 
automatic grant adjustments for classes of recipients unless the reason 
for an individual appeal is an incorrect grant computation.
    (6) In both a public/private RCA program and a publicly-administered 
RCA program, a hearing need not be granted when assistance is terminated 
because the eligibility time period imposed by law has been reached, 
unless there is a disputed issue of fact that is unresolved by the 
process in Sec.400.23.



Sec.400.55  Availability of agency policies.

    A State, or the agency(s) responsible for the provision of RCA, must 
make available to refugees the written policies of the RCA program, 
including agency policies regarding eligibility standards, the duration 
and amount of cash assistance payments, the requirements for 
participation in services, the penalties for non-cooperation, and client 
rights and responsibilities to ensure that refugees understand what they 
are eligible for, what is expected of them, and what protections are 
available to them. The State, or the agency(s) responsible for the 
provision of RCA, must ensure that agency policy materials and all 
notices required in Sec. Sec.400.54, 400.82, and 400.83, are made 
available in written form in English and in appropriate languages where 
a significant number or proportion of the recipient population needs 
information in a particular language. In regard to refugee language 
groups that constitute a small number or proportion of the recipient 
population, the State, or the agency(s) responsible for the provision of 
RCA, at a minimum, must use an alternative method, such as verbal 
translation in the refugee's native language, to ensure that the content 
of the agency's policies is effectively communicated to each refugee.

                       Public/Private RCA Program



Sec.400.56  Structure.

    (a) States may choose to enter into a partnership agreement with 
local resettlement agencies for the operation

[[Page 362]]

of a public/private RCA program. Sections 400.56 through 400.63 apply to 
the public/private RCA program.
    (b) The public/private RCA program must be administered by the State 
through contracts or grants with local resettlement agencies or a lead 
resettlement agency that provides initial resettlement services under 
the terms of the Department of State Cooperative Agreement for Reception 
and Placement.
    (c) The public/private RCA program must be statewide, unless the 
State determines that it is not in the best interests of refugees to 
provide a public/private RCA program in a particular area of the State.
    (d) Local resettlement agencies may be responsible for determining 
eligibility, and authorizing and providing payments to eligible 
refugees.
    (e) States and local resettlement agencies may not propose to 
operate a public/private RCA program and a publicly-administered RCA 
program in the same geographic location.
    (f) States must ensure the provision of RCA assistance to eligible 
refugees in the State who are sponsored by local resettlement agencies 
in bordering states, where applicable.



Sec.400.57  Planning and consultation process.

    A State that wishes to establish a public/private RCA program must 
engage in a planning and consultation process with the local agencies 
that resettle refugees in the State to develop a public/private RCA plan 
in accordance with the requirements under Sec.400.58.
    (a) Primary participants in the planning process must include 
representatives of the State and each local agency that resettles 
refugees in the State. During the planning process, the State must fully 
consult with representatives of counties, refugee mutual assistance 
associations (MAAs), local community services agencies, national 
voluntary agencies that resettle refugees in the State, representatives 
of each refugee ethnic group, and other agencies that serve refugees.
    (b) Each local resettlement agency that resettles refugees in the 
State must inform its national resettlement agency of the proposed 
public/private RCA program and must obtain a letter of agreement from 
the national agency that indicates that the national agency supports the 
public/private RCA plan and will continue to place refugees in the State 
under the public/private RCA program.



Sec.400.58  Content and submission of public/private RCA plan.

    (a) States and local resettlement agencies must develop a public/
private RCA plan which describes how the State and local resettlement 
agencies will administer and provide refugee cash assistance to eligible 
refugees. The plan must describe the agreed-upon public/private RCA 
program including:
    (1) The proposed income standard to be used to determine RCA 
eligibility;
    (2) The proposed payment levels to be used to provide cash 
assistance to eligible refugees;
    (3) Assurance that the payment levels established are not lower than 
the comparable State TANF amounts;
    (4) A detailed description of how benefit payments will be 
structured, including a description of employment incentives and/or 
income disregards to be used, if any, as well as methods of payment to 
be used, such as direct cash or vendor payments;
    (5) A description of how all RCA eligible refugees residing in the 
State will have reasonable access to cash assistance and services;
    (6) A description of the procedures to be used to ensure appropriate 
protections and due process for refugees, such as the correction of 
underpayments, notice of adverse action and the right to mediation, a 
pre-dermination hearing, and an appeal to an independent entity;
    (7) A description of proposed exemptions from participation in 
employability services;
    (8) A description of the employment and self-sufficiency services to 
be provided to RCA recipients by--
    (i) Local resettlement agencies under contract or grant, and/or
    (ii) Other refugee services providers;
    (9) Procedures for providing RCA to eligible secondary migrants who 
move

[[Page 363]]

to the State, including secondary migrants who were sponsored by a local 
resettlement agency that does not have a presence in the receiving 
State;
    (10) If applicable, provisions for providing assistance to refugees 
resettling in the State who are sponsored by a local resettlement agency 
in a bordering State which does not have an office in the State of 
resettlement;
    (11) A description of the procedures to be used to safeguard the 
disclosure of information regarding refugee clients;
    (12) Letters of agreement from the national voluntary resettlement 
agencies that indicate support for the proposed public/private RCA 
program and indicate that refugee placements in the State will continue 
under the public/private RCA program;
    (13) A breakdown of the proposed program and administrative costs of 
both the cash assistance and service components of the public/private 
RCA program, including any per capita caps on administrative costs only 
if a State proposes to use such caps; and
    (14) The proposed implementation date for the State's public/private 
RCA program;
    (b) In cases where the State, after consultation with the local 
resettlement agencies in the State, determines that a public/private RCA 
program is not feasible statewide and proposes to implement a public/
private RCA program in only a portion of the State and to operate a 
publicly-administered RCA program in the balance of the State, the 
State's RCA plan must include the information required in Sec.
400.65(b).
    (c) The plan must be signed by the Governor or his or her designee.
    (d) The Director of ORR will follow the procedures in Sec.400.8 
for the approval of public/private RCA plans. An approved public/private 
RCA plan will be incorporated into the refugee program State Plan.
    (e) Any amendments to the public/private RCA plan must be developed 
in consultation with the local resettlement agencies and must be 
submitted to ORR in accordance with Sec.400.8. The Director of ORR 
will follow the procedures in Sec.400.8 for approval of amendments to 
public/private RCA plans.



Sec.400.59  Eligibility for the public/private RCA program.

    (a) Eligibility for refugee cash assistance under the public/private 
program is limited to those who meet the income eligibility standard 
established by the State after consultation with local resettlement 
agencies in the State.
    (b) Any resources remaining in the applicant's country of origin may 
not be considered in determining income eligibility.
    (c) A sponsor's income and resources may not be considered to be 
accessible to a refugee solely because the person is serving as a 
sponsor.
    (d) Any cash grant received by a refugee under the Department of 
State or Department of Justice Reception and Placement programs may not 
be considered in determining income eligibility.



Sec.400.60  Payment levels.

    (a) Under the public/private RCA program, States and the local 
resettlement agencies contracted or awarded grants to administer the RCA 
program must make monthly cash assistance payments to eligible refugees 
that do not exceed the following payment ceilings, according to the 
number of persons in the family unit, except as noted in paragraphs (b) 
and (c) of this section. For family units greater than 4 persons, the 
payment ceiling may be increased by $70 for each additional person.

------------------------------------------------------------------------
                                                                Monthly
                     Size of family unit                        payment
                                                                ceiling
------------------------------------------------------------------------
1 person.....................................................       $335
2 persons....................................................        450
3 persons....................................................        570
4 persons....................................................        685
------------------------------------------------------------------------

    (b) States and local resettlement agencies may not make payments to 
refugees that are lower than the State's TANF payment for the same sized 
family unit. In States that have TANF payment levels that are higher 
than the ceilings established in this section, States and local 
resettlement agencies must provide payment levels under the public/
private RCA program that are comparable to the State's TANF payment 
levels.

[[Page 364]]

    (c) Income disregards and other incentives. (1) States and local 
resettlement agencies may design an assistance program that combines RCA 
payments with income disregards or other incentives such as employment 
bonuses, or graduated payments in order to encourage early employment 
and self-sufficiency, as long as the total combined payments to a 
refugee do not exceed the ORR monthly ceilings established in this 
section multiplied by the allowable number of months of RCA eligibility.
    (2) States that elect to exceed monthly payment ceilings in order to 
provide employment incentives must budget their resources to ensure that 
sufficient RCA funds are available to cover a refugee's cash assistance 
needs in the latter months of a refugee's eligibility period, if needed.
    (d) If the Director determines that the payment ceilings need to be 
adjusted for inflation, the Director will publish a document in the 
Federal Register announcing the new payment ceilings.



Sec.400.61  Services to public/private RCA recipients.

    (a) Services provided to recipients of refugee cash assistance in 
the public/private RCA program may be provided by the local resettlement 
agencies that administer the public/private RCA program or by other 
refugee service agencies.
    (b) Allowable services under the public/private program are limited 
to those services described in Sec. Sec.400.154 and 400.155 and are to 
be funded in accordance with Sec.400.206.
    (c) In public/private programs in which local resettlement agencies 
are responsible for administering both cash assistance and services, 
States and local resettlement agencies must coordinate on a regular 
basis with refugee mutual assistance associations and other ethnic 
representatives that represent or serve the ethnic populations that are 
being resettled in the U.S. to ensure that the services provided under 
the public/private RCA program:
    (1) Are appropriate to the linguistic and cultural needs of the 
incoming populations; and
    (2) Are coordinated with the longer-term resettlement services 
frequently provided by ethnic community organizations after the end of 
the time-limited RCA eligibility period.
    (d) In public/private programs in which the agencies responsible for 
providing services to RCA recipients are not the same agencies that 
administer the cash assistance program, the State must:
    (1) Establish procedures to ensure close coordination between the 
local resettlement agencies that provide cash assistance and the 
agencies that provide services to RCA recipients; and
    (2) Set up a system of accountability that identifies the 
responsibilities of each participating agency and holds these agencies 
accountable for the results of the program components for which they are 
responsible.



Sec.400.62  Treatment of eligible secondary migrants, asylees,
and Cuban/Haitian entrants.

    The State and local resettlement agencies must establish procedures 
to ensure that eligible secondary migrant refugees, asylees, and Cuban/
Haitian entrants have access to public/private RCA assistance if they 
wish to apply. In developing these procedures, consideration must be 
given to ensuring coverage of eligible secondary migrants and other 
eligible applicants who were sponsored by a resettlement agency which 
does not have a presence in the State or who were not sponsored by any 
agency.



Sec.400.63  Preparation of local resettlement agencies.

    The State and the national voluntary agencies whose affiliate 
agencies will be responsible for implementing the public/private RCA 
program:
    (a) Must determine the training needed to enable local resettlement 
agencies to achieve a smooth implementation of the RCA program; and
    (b) Must provide the training in a uniform way to ensure that all 
local resettlement agencies in the State will implement the public/
private RCA program in a consistent manner.

[[Page 365]]

                   Publicly-Administered RCA Programs



Sec.400.65  Continuation of a publicly-administered RCA program.

    Sections 400.65 through 400.69 apply to publicly-administered RCA 
programs. If a State chooses to operate a publicly-administered RCA 
program:
    (a) The State may operate its refugee cash assistance program 
consistent with its TANF program.
    (b) The State must submit an amendment to its State Plan, describing 
the elements of its TANF program that will be used in its refugee cash 
assistance program.



Sec.400.66  Eligibility and payment levels in a publicly-administered
RCA program.

    (a) In administering a publicly-administered refugee cash assistance 
program, the State agency must operate its refugee cash assistance 
program consistent with the provisions of its TANF program in regard to:
    (1) The determination of initial and on-going eligibility (treatment 
of income and resources, budgeting methods, need standard);
    (2) The determination of benefit amounts (payment levels based on 
size of the assistance unit, income disregards);
    (3) Proration of shelter, utilities, and similar needs; and
    (4) Any other State TANF rules relating to financial eligibility and 
payments.
    (b) The State agency may not consider any resources remaining in the 
applicant's country of origin in determining income eligibility.
    (c) The State agency may not consider a sponsor's income and 
resources to be accessible to a refugee solely because the person is 
serving as a sponsor.
    (d) The State agency may not consider any cash grant received by the 
applicant under the Department of State or Department of Justice 
Reception and Placement programs.
    (e) The State agency may use the date of application as the date 
refugee cash assistance begins in order to provide payments quickly to 
newly arrived refugees.



Sec.400.67  Non-applicable TANF requirements.

    States that choose to operate an RCA program modeled after TANF may 
not apply certain TANF requirements to refugee cash assistance 
applicants or recipients as follows: TANF work requirements may not 
apply to RCA applicants or recipients, and States must meet the 
requirements in subpart I of this part with respect to the provision of 
services for RCA recipients.



Sec.400.68  Notification to local resettlement agency.

    (a) The State must notify promptly the local resettlement agency 
which provided for the initial resettlement of a refugee whenever the 
refugee applies for refugee cash assistance under a publicly-
administered RCA program.
    (b) The State must contact the applicant's sponsor or the local 
resettlement agency concerning offers of employment and inquire whether 
the applicant has voluntarily quit employment or has refused to accept 
an offer of employment within 30 consecutive days immediately prior to 
the date of application, in accordance with Sec.400.77(a).



Sec.400.69  Alternative RCA programs.

    A State that determines that a public/private RCA program or a 
publicly-administered program modeled after its TANF program is not the 
best approach for the State may choose instead to establish an 
alternative approach under the Wilson/Fish program, authorized by 
section 412(e)(7) of the INA.



    Subpart F_Requirements for Employability Services and Employment

    Source: 54 FR 5477, Feb. 3, 1989, unless otherwise noted.



Sec.400.70  Basis and scope.

    This subpart sets forth requirements for applicants for and 
recipients of refugee cash assistance under both the public/private RCA 
program and the publicly-administered RCA program concerning 
registration for employment services, participation in social

[[Page 366]]

services or targeted assistance, and acceptance of appropriate 
employment under section 412(e)(2)(A) of the Act. A refugee who is an 
applicant for or recipient of refugee cash assistance must comply with 
the requirements in this subpart.

[60 FR 33602, June 28, 1995, as amended at 65 FR 15448, Mar. 22, 2000]



Sec.400.71  Definitions.

    For purposes of this subpart and Subpart I--
    Appropriate agency providing employment services means an agency 
providing services specified under Sec.400.154(a) of this part which 
are specifically designed to assist refugees in becoming employed, which 
must include an established program of job referral to, and job 
placement with, private employers, and which must be determined 
acceptable by the State.
    Employability plan means an individualized written plan for a 
refugee registered for employment services that sets forth a program of 
services intended to result in the earliest possible employment of the 
refugee.
    Employability services means services, as specified in Sec.400.154 
of this part, designed to enable an individual to obtain employment and 
to improve the employability or work skills of the individual.
    Employable means not exempt from registration for employment 
services under Sec.400.76 of this part.
    Employment services means the services specified in Sec.400.154(a) 
of this part.
    Family self-sufficiency plan means a plan that addresses the 
employment-related service needs of the employable members in a family 
for the purpose of enabling the family to become self-supporting through 
the employment of one or more family members.
    Registrant means an individual who has registered for employment 
services under Sec.400.75 of this part.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995; 65 
FR 15448, Mar. 22, 2000]



Sec.400.72  Arrangements for employability services.

    Paragraphs (a) and (b) of this section apply equally to States that 
operate a public/private RCA program and to States that operate a 
publicly-administered RCA program. Paragraph (c) applies only to 
publicly-administered RCA programs.
    (a) The State agency must make such arrangements as are necessary to 
enable refugees to meet the requirements of, and receive the 
employability services specified in, this subpart.
    (b) If a State agency makes such arrangements with another agency or 
agencies, it must retain responsibility for meeting the requirements in 
this subpart.
    (c) In order for an agency to qualify to receive referrals from the 
State agency of refugees required to register for employability 
services, such agency must agree to advise the State agency whenever 
such a refugee fails or refuses to participate in the required services 
or to accept an offer of employment.

[54 FR 5477, Feb. 3, 1989, as amended at 65 FR 15448, Mar. 22, 2000]

                          General Requirements



Sec.400.75  Registration for employment services, participation in 
employability service programs and targeted assistance programs, 
going to job interviews, and acceptance of appropriate offers of
employment.
          

    (a) As a condition for receipt of refugee cash assistance, a refugee 
who is not exempt under Sec.400.76 of this subpart must, except for 
good cause shown--
    (1) Register with an ``appropriate agency providing employment 
services,'' as defined in Sec.400.71, and within 30 days of receipt of 
aid participate in the employment services provided by such agency, as 
defined in Sec.400.154(a) of this part.
    (2) Go to a job interview which is arranged by the State agency or 
its designee.
    (3) Accept at any time, from any source, an offer of employment, as 
determined to be appropriate by the State agency or its designee.
    (4) Participate in any employability service program which provides 
job or language training in the area in which the refugee resides, which 
is funded under section 412(c) of the Act, and which is determined to be 
available and appropriate for that refugee; or if such a program funded 
under section

[[Page 367]]

412(c) is not available or appropriate in the area in which the refugee 
resides, any other available and appropriate program in such area.
    (5) Participate in any targeted assistance program in the area in 
which the refugee resides, which is funded under section 412(c) of the 
Act, and which is determined to be available and appropriate for that 
refugee.
    (6)(i) Accept an offer of employment which is determined to be 
appropriate by the local resettlement agency which was responsible for 
the initial resettlement of the refugee or by the appropriate State or 
local employment service;
    (ii) Go to a job interview which is arranged through such agency or 
service; and
    (iii) Participate in a social service or targeted assistance program 
which such agency or service determines to be available or appropriate.
    (b) The State agency or its designee must permit, but may not 
require, the voluntary registration for employment services of an 
applicant or recipient who is exempt under Sec.400.76 of this part.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995; 65 
FR 15448, Mar. 22, 2000]



Sec.400.76  Criteria for exemption from registration for employment
services, participation in employability service programs, and 
acceptance of appropriate offers of employment.
          

    States and local resettlement agencies operating a public/private 
RCA program, as well as States operating a publicly-administered RCA 
program, may determine what specific exemptions, if any, are appropriate 
for recipients of a time-limited RCA program in their State.

[65 FR 15448, Mar. 22, 2000]



Sec.400.77  Effect of quitting employment or failing or refusing to
participate in required services.

    (a) As a condition of eligibility for refugee cash assistance, an 
employable applicant may not, without good cause, within 30 consecutive 
calendar days immediately prior to the application for assistance (or 
such longer period required by Sec.400.82(c)(2), if applicable), have 
voluntarily quit employment or have refused to accept an offer of 
employment determined to be appropriate by the State agency or its 
designee, using criteria set forth in Sec.400.81.
    (b) As a condition of continued receipt of refugee cash assistance, 
an employable recipient may not, without good cause, voluntarily quit 
employment or fail or refuse to meet the requirements of Sec.
400.75(a).

[54 FR 5477, Feb. 3, 1989, as amended at 65 FR 15448, Mar. 22, 2000]



Sec.400.79  Development of an employability plan.

    (a) An individual employability plan must be developed as part of a 
family self-sufficiency plan where applicable for each recipient of 
refugee cash assistance in a family unit who is not exempt under Sec.
400.76 of this part.
    (b) If such a plan has been developed by the local resettlement 
agency which sponsored the refugee, or its designee, the State agency, 
or its designee, may accept this plan if it determines that the plan is 
appropriate for the refugee and meets the requirements of this subpart.
    (c) The employability plan must--
    (1) Be designed to lead to the earliest possible employment and not 
be structured in such a way as to discourage or delay employment or job-
seeking; and
    (2) Contain a definite employment goal, attainable in the shortest 
time period consistent with the employability of the refugee in relation 
to job openings in the area.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995; 65 
FR 15448, Mar. 22, 2000]

     Criteria for Appropriate Employability Services and Employment



Sec.400.81  Criteria for appropriate employability services and
employment.

    The State agency or its designee must determine if employability 
services and employment are appropriate in accordance with the following 
criteria:
    (a) The services or employment must meet the following criteria, or, 
if approved by the Director, the comparable

[[Page 368]]

criteria applied by the State in an alternative program for TANF 
recipients:
    (1) All assignments must be within the scope of the individual's 
employability plan. The plan may be modified to reflect changed services 
or employment conditions.
    (2) The services or employment must be related to the capability of 
the individual to perform the task on a regular basis. Any claim of 
adverse effect on physical or mental health must be based on adequate 
medical testimony from a physician or licensed or certified psychologist 
indicating that participation would impair the individual's physical or 
mental health.
    (3) The total daily commuting time to and from home to the service 
or employment site must not normally exceed 2 hours, not including the 
transporting of a child to and from a child care facility, unless a 
longer commuting distance or time is generally accepted in the 
community, in which case the round trip commuting time must not exceed 
the generally accepted community standards.
    (4) When child care is required, the care must meet the standards 
normally required by the State in its work and training programs for 
TANF recipients.
    (5) The service or work site to which the individual is assigned 
must not be in violation of applicable Federal, State, or local health 
and safety standards.
    (6) Assignments must not be made which are discriminatory in terms 
of age, sex, race, creed, color, or national origin.
    (7) Appropriate work may be temporary, permanent, full-time, part-
time, or seasonal work if such work meets the other standards of this 
section.
    (8) The wage shall meet or exceed the Federal or State minimum wage 
law, whichever is applicable, or if such laws are not applicable, the 
wage shall not be substantially less favorable than the wage normally 
paid for similar work in that labor market.
    (9) The daily hours of work and the weekly hours of work shall not 
exceed those customary to the occupation. And
    (10) No individual may be required to accept employment if:
    (i) The position offered is vacant due to a strike, lockout, or 
other bona fide labor dispute; or
    (ii) The individual would be required to work for an employer 
contrary to the conditions of his existing membership in the union 
governing that occupation. However, employment not governed by the rules 
of a union in which he or she has membership may be deemed appropriate.
    (11) In addition to meeting the other criteria of this paragraph, 
the quality of training must meet local employers' requirements so that 
the individual will be in a competitive position within the local labor 
market. The training must also be likely to lead to employment which 
will meet the appropriate work criteria.
    (b) If an individual is a professional in need of professional 
refresher training and other recertification services in order to 
qualify to practice his or her profession in the United States, the 
training may consist of full-time attendance in a college or 
professional training program, provided that such training: Is approved 
as part of the individual's employability plan by the State agency, or 
its designee; does not exceed one year's duration (including any time 
enrolled in such program in the United States prior to the refugee's 
application for assistance); is specifically intended to assist the 
professional in becoming relicensed in his or her profession; and, if 
completed, can realistically be expected to result in such relicensing. 
This training may only be made available to individuals who are 
employed.
    (c) A job offered, if determined appropriate under the requirements 
of this subpart, is required to be accepted by the refugee without 
regard to whether such job would interrupt a program of services planned 
or in progress unless the refugee is currently participating in a 
program in progress of on-the-job training (as described in Sec.
400.154(c)) or vocational training (as described in Sec.400.154(e)) 
which meets the requirements of this part and which is being

[[Page 369]]

carried out as part of an approved employability plan.

[54 FR 5477, Feb. 3, 1989, as amended at 65 FR 15448, Mar. 22, 2000]

    Failure or Refusal To Accept Employability Services or Employment



Sec.400.82  Failure or refusal to accept employability services
or employment.

    (a) Termination of assistance. When, without good cause, an 
employable non-exempt recipient of refugee cash assistance under the 
public/private RCA program or under a publicly-administered RCA program 
has failed or refused to meet the requirements of Sec.400.75(a) or has 
voluntarily quit a job, the State, or the agency(s) responsible for the 
provision of RCA, must terminate assistance in accordance with 
paragraphs (b) and (c) of this section.
    (b) Notice of intended termination--(1) In cases of proposed action 
to reduce, suspend, or terminate assistance, the State or the agency(s) 
responsible for the provision of RCA, must give timely and adequate 
notice, in accordance with adverse action procedures required at Sec.
400.54.
    (2) The State, or the agency(s) responsible for the provision of 
RCA, must provide written procedures in English and in appropriate 
languages, in accordance with requirements in Sec.400.55, for the 
determination of good cause, the sanctioning of refugees who do not 
comply with the requirements of the program, and for the filing of 
appeals by refugees.
    (3) In addition to the requirements in Sec.400.54, the written 
notice must include--
    (i) An explanation of the reason for the action and the proposed 
adverse consequences; and
    (ii) Notice of the recipient's right to mediation and a hearing 
under Sec.400.83.
    (4) A written notice in English and a written translated notice, or 
a verbal translation of the notice, in accordance with the requirements 
in Sec.400.55, must be sent or provided to a refugee at least 10 days 
before the date upon which the action is to become effective.
    (c) Sanctions. (1) If the sanctioned individual is the only member 
of the filing unit, the assitance shall be terminated. If the filing 
unit includes other members, the State shall not take into account the 
sanctioned individual's needs in determining the filing unit's need for 
assistance.
    (2) The sanction applied in paragraph (b)(3)(i) of this section 
shall remain in effect for 3 payment months for the first such failure 
and 6 payment months for any subsequent such failure.

[54 FR 5477, Feb. 3, 1989, as amended at 60 FR 33602, June 28, 1995; 65 
FR 15448, Mar. 22, 2000]



Sec.400.83  Mediation and fair hearings.

    (a) Mediation--(1) Public/private RCA program. The State must ensure 
that a mediation period prior to imposition of sanctions is provided to 
refugees by local resettlement agencies under the public/private RCA 
program. Mediation shall begin as soon as possible, but no later than 10 
days following the date of failure or refusal to participate, and may 
continue for a period not to exceed 30 days. Either the State (or local 
resettlement agency(s) responsible for the provision of RCA) or the 
recipient may terminate this period sooner when either believes that the 
dispute cannot be resolved by mediation.
    (2) Publicly-administered RCA programs. Under a publicly-
administered RCA program, the State must use the same procedures for 
mediation/conciliation as those used in its TANF program, if available.
    (b) Hearings. The State or local resettlement agency(s) responsible 
for the provision of RCA must provide an applicant for, or recipient of, 
refugee cash assistance an opportunity for a hearing, using the same 
procedures and standards set forth in Sec.400.54, to contest a 
determination concerning employability, or failure or refusal to carry 
out job search or to accept an appropriate offer of employability 
services or employment, resulting in denial or termination of 
assistance.

[65 FR 15448, Mar. 22, 2000]



                  Subpart G_Refugee Medical Assistance

    Source: 54 FR 5480, Feb. 3, 1989, unless otherwise noted.

[[Page 370]]



Sec.400.90  Basis and scope.

    This subpart sets forth requirements concerning grants to States 
under section 412(e) of the Act for refugee medical assistance (RMA), as 
defined at Sec.400.2 of this part.



Sec.400.91  Definitions.

    For purposes of this subpart--
    Medically needy means individuals who are eligible for medical 
assistance under a State's approved Medicaid State plan in accordance 
with section 1902(a)(10)(C) of the Social Security Act.
    Spend down means to deduct from countable income incurred medical 
expenses, thereby lowering the amount of countable income to a level 
that meets financial eligibility requirements in accordance with 42 CFR 
435.831 (or, as applicable to Guam, the Virgin Islands, and Puerto Rico, 
42 CFR 436.831).

  Applications, Determinations of Eligibility, and Furnishing Assist- 
                                  ance



Sec.400.93  Opportunity to apply for medical assistance.

    (a) A State must provide any individual wishing to do so an 
opportunity to apply for medical assistance and must determine the 
eligibility of each applicant.
    (b) In determining eligibility for medical assistance, the State 
agency must comply with regulations governing applications, 
determinations of eligibility, and furnishing Medicaid (including the 
opportunity for fair hearings) in the States and the District of 
Columbia under 42 CFR part 435, subpart J, and in Guam, Puerto Rico, and 
the Virgin Islands under 42 CFR part 436, subpart J, and 42 CFR part 
431, subpart E.
    (c) Notwithstanding any other provision of law, the State must 
notify promptly the agency (or local affiliate) which provided for the 
initial resettlement of a refugee whenever the refugee applies for 
medical assistance.
    (d) In providing notice to an applicant or recipient to indicate 
that assistance has been authorized or that it has been denied or 
terminated, the State must specify the program(s) to which the notice 
applies, clearly distinguishing between refugee medical assistance and 
Medicaid or the State Children's Health Insurance Program (SCHIP). For 
example, if a refugee applies for assistance, is determined ineligible 
for Medicaid or the State Children's Health Insurance Program (SCHIP) 
but eligible for refugee medical assistance, the notice must specify 
clearly the determinations with respect both to Medicaid or the State 
Children's Health Insurance Program (SCHIP) and to refugee medical 
assistance.

[54 FR 5480, Feb. 3, 1989, as amended at 65 FR 15449, Mar. 22, 2000]



Sec.400.94  Determination of eligibility for Medicaid.

    (a) The State must determine Medicaid and SCHIP eligibility under 
its Medicaid and SCHIP State plans for each individual member of a 
family unit that applies for medical assistance.
    (b) A State that provides Medicaid to medically needy individuals in 
the State under its State plan must determine a refugee applicant's 
eligibility for Medicaid as medically needy.
    (c) A State must provide medical assistance under the Medicaid and 
SCHIP programs to all refugees eligible under its State plans.
    (d) If the appropriate State agency determines that the refugee 
applicant is not eligible for Medicaid or SCHIP under its State plans, 
the State must determine the applicant's eligibility for refugee medical 
assistance.

[54 FR 5480, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995; 65 
FR 15449, Mar. 22, 2000]

        Conditions of Eligibility for Refugee Medical Assistance



Sec.400.100  General eligibility requirements.

    (a) Eligibility for refugee medical assistance is limited to those 
refugees who--
    (1) Are ineligible for Medicaid or SCHIP but meet the financial 
eligibility standards under Sec.400.101;
    (2) Meet immigration status and identification requirements in 
subpart D of this part or are the dependent children of, and part of the 
same assistance unit as, individuals who meet the

[[Page 371]]

requirements in subpart D, subject to the limitation in Sec.400.208 of 
this part with respect to nonrefugee children;
    (3) Meet eligibility requirements and conditions in this subpart;
    (4) Provide the name of the resettlement agency which resettled 
them; and
    (5) Are not full-time students in institutions of higher education, 
as defined by the Director, except where such enrollment is approved by 
the State, or its designee, as part of an individual employability plan 
for a refugee under Sec.400.79 of this part or a plan for an 
unaccompanied minor in accordance with Sec.400.112.
    (b) A refugee may be eligible for refugee medical assistance under 
this subpart during a period of time to be determined by the Director in 
accordance with Sec.400.211.
    (c) The State agency may not require that a refugee actually receive 
or apply for refugee cash assistance as a condition of eligibility for 
refugee medical assistance.
    (d) All recipients of refugee cash assistance who are not eligible 
for Medicaid or SCHIP are eligible for refugee medical assistance.

[45 FR 59323, Sept. 9, 1980, as amended at 58 FR 46090, Sept. 1, 1993; 
58 FR 64507, Dec. 8, 1993; 60 FR 33603, June 28, 1995; 65 FR 15449, Mar. 
22, 2000]



Sec.400.101  Financial eligibility standards.

    In determining eligibility for refugee medical assistance, the State 
agency must use--
    (a) In States with medically needy programs under 42 CFR part 435, 
subpart D:
    (1) The State's medically needy financial eligibility standards 
established under 42 CFR part 435, subpart I, and as reflected in the 
State's approved title XIX State Medicaid plan; or
    (2) A financial eligibility standard established at up to 200% of 
the national poverty level; and
    (b) In States without a medically needy program:
    (1) The State's AFDC payment standards and methodologies in effect 
as of July 16, 1996, including any modifications elected by the State 
under section 1931(b)(2) of the Social Security Act; or
    (2) A financial eligibility standard established at up to 200% of 
the national poverty level.

[54 FR 5480, Feb. 3, 1989, as amended at 65 FR 15449, Mar. 22, 2000]



Sec.400.102  Consideration of income and resources.

    (a) Except as specified in paragraphs (b), (c), and (d) of this 
section, in considering financial eligibility of applicants for refugee 
medical assistance, the State agency must--
    (1) In States with medically needy programs, use the standards 
governing determination of income eligibility in 42 CFR 435.831, and as 
reflected in the State's approved title XIX State Medicaid plan.
    (2) In States without medically needy programs, use the standards 
and methodologies governing consideration of income and resources of 
AFDC applicants in effect as of July 16, 1996, including any 
modifications elected by the State under section 1931(b)(2) of the 
Social Security Act.
    (b) The State may not consider in-kind services and shelter provided 
to an applicant by a sponsor or local resettlement agency in determining 
eligibility for and receipt of refugee medical assistance.
    (c) The State may not consider any cash assistance payments provided 
to an applicant in determining eligibility for and receipt of refugee 
medical assistance.
    (d) The State must base eligibility for refugee medical assistance 
on the applicant's income and resources on the date of application. The 
State agency may not use the practice of averaging income prospectively 
over the application processing period in determining income eligibility 
for refugee medical assistance.

[65 FR 15449, Mar. 22, 2000]



Sec.400.103  Coverage of refugees who spend down to State financial
eligibility standards.

    States must allow applicants for RMA who do not meet the financial 
eligibility standards elected in Sec.400.101 to spend down to such 
standard using an

[[Page 372]]

appropriate method for deducting incurred medical expenses.

[65 FR 15449, Mar. 22, 2000]



Sec.400.104  Continued coverage of recipients who receive increased 
earnings from employment.

    (a) If a refugee who is receiving refugee medical assistance 
receives earnings from employment, the earnings shall not affect the 
refugee's continued medical assistance eligibility.
    (b) If a refugee, who is receiving Medicaid and has been residing in 
the U.S. less than the time-eligibility period for refugee medical 
assistance, becomes ineligible for Medicaid because of earnings from 
employment, the refugee must be transferred to refugee medical 
assistance without an RMA eligibility determination.
    (c) Under paragraphs (a) and (b) of this section, a refugee shall 
continue to receive refugee medical assistance until he/she reaches the 
end of his or her time-eligibility period for refugee medical 
assistance, in accordance with Sec.400.100(b).
    (d) In cases where a refugee is covered by employer-provided health 
insurance, any payment of RMA for that individual must be reduced by the 
amount of the third party payment.

[65 FR 15449, Mar. 22, 2000]

                        Scope of Medical Services



Sec.400.105  Mandatory services.

    In providing refugee medical assistance to refugees, a State must 
provide at least the same services in the same manner and to the same 
extent as under the State's Medicaid program, as delineated in 42 CFR 
part 440.



Sec.400.106  Additional services.

    If a State or local jurisdiction provides additional medical 
services beyond the scope of the State's Medicaid program to destitute 
residents of the State or locality through public facilities, such as 
county hospitals, the State may provide to refugees who are determined 
eligible under Sec.400.94, only to the extent that sufficient funds 
are appropriated, or Sec.400.100 of this part the same services 
through public facilities.

[54 FR 5480, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]



Sec.400.107  Medical screening.

    (a) As part of its refugee medical assistance program, a State may 
provide a medical screening to a refugee provided--
    (1) The screening is in accordance with requirements prescribed by 
the Director, or his or her designee; and
    (2) Written approval for the screening program or project has been 
provided to the State by the Director, or designee.
    (b) If such screening is done during the first 90 days after a 
refugee's initial date of entry into the United States, it may be 
provided without prior determination of the refugee's eligibility under 
Sec.400.94 or Sec.400.100 of this part.

[54 FR 5480, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995; 65 
FR 15449, Mar. 22, 2000]



                    Subpart H_Child Welfare Services

    Source: 51 FR 3915, Jan. 30, 1986, unless otherwise noted.



Sec.400.110  Basis and scope.

    This subpart prescribes requirements concerning grants to States 
under section 412(d)(2)(B) of the Act for child welfare services to 
refugee unaccompanied minors.



Sec.400.111  Definitions.

    For purposes of this subpart--
    Child welfare agency means an agency licensed or approved under 
State law to provide child welfare services to children in the State.
    Unaccompanied minor means a person who has not yet attained 18 years 
of age (or a higher age established by the State of resettlement in its 
child welfare plan under title IV-B of the Social Security Act for the 
availability of child welfare services to any other child in the State); 
who entered the United States unaccompanied by and not destined to (a) a 
parent or (b) a close nonparental adult relative who is willing and able 
to care for the child or (c) an adult with a clear and court-verifiable 
claim to custody of the

[[Page 373]]

minor; and who has no parent(s) in the United States. Limitation: No 
child may be considered by a State to be unaccompanied for the purpose 
of this part unless such child was identified by INS at the time of 
entry as unaccompanied, except that a child who was correctly classified 
as unaccompanied by a State in accordance with Action Transmittal SSA-
AT-79-04 (and official interpretations thereof by the Director) prior to 
the effective date of this definition may continue to be so classified 
until such status is terminated in accordance with Sec.400.113(b) of 
this subpart; and the Director may approve the classification of a child 
as unaccompanied on the basis of information provided by a State showing 
that such child should have been classified as unaccompanied at the time 
of entry.
    Title IV-B plan means a State's plan for providing child welfare 
services to children in the State under part B of title IV of the Social 
Security Act.



Sec.400.112  Child welfare services for refugee children.

    (a) In providing child welfare services to refugee children in the 
State, a State must provide the same child welfare services and benefits 
to the same extent as are provided to other children of the same age in 
the State under a State's title IV-B plan.
    (b) A State must provide child welfare services to refugee children 
according to the State's child welfare standards, practices, and 
procedures.
    (c) Foster care maintenance payments must be provided under a 
State's program under title IV-E of the Social Security Act if a child 
is eligible under that program.



Sec.400.113  Duration of eligibility.

    (a) Except as specified in paragraph (b), a refugee child may be 
eligible for services under Sec.400.112 of this part during the 36-
month period beginning with the first month the child entered the United 
States.
    (b) An unaccompanied minor continues to meet the definition of 
``unaccompanied minor'' and is eligible for benefits and services under 
Sec. Sec.400.115 through 400.120 of this part until the minor--
    (1) Is reunited with a parent; or
    (2) Is united with a nonparental adult (relative or nonrelative) 
willing and able to care for the child to whom legal custody and/or 
guardianship is granted under State law; or
    (3) Attains 18 years of age or such higher age as the State's title 
IV-B plan prescribes for the availability of child welfare services to 
any other child in the State.



Sec.400.114  [Reserved]



Sec.400.115  Establishing legal responsibility.

    (a) A State must ensure that legal responsibility is established, 
including legal custody and/or guardianship, as appropriate, in 
accordance with applicable State law, for each unaccompanied minor who 
resettles in the State. The State must initiate procedures for 
establishing legal responsibility for the minor, with an appropriate 
court (if action by a court is required by State law), within 30 days 
after the minor arrives at the location of resettlement.
    (b) In establishing legal responsibility, including legal custody 
and/or guardianship under State law, as appropriate, the minor's natural 
parents should not be contacted in their native country since contact 
could be dangerous to the parents.
    (c) Unaccompanied minors are not generally eligible for adoption 
since family reunification is the objective of the program. In certain 
rare cases, adoption may be permitted pursuant to adoption laws in the 
State of resettlement, provided a court finds that: (1) Adoption would 
be in the best interest of the child; and (2) there is termination of 
parental rights (for example, in situations where the parents are dead 
or are missing and presumed dead) as determined by the appropriate State 
court. When adoption occurs, the child's status as an unaccompanied 
minor terminates.



Sec.400.116  Service for unaccompanied minors.

    (a) A State must provide unaccompanied minors with the same range of 
child welfare benefits and services available in foster care cases to 
other

[[Page 374]]

children in the State. Allowable benefits and services may include 
foster care maintenance (room, board, and clothing) payments; medical 
assistance; support services; services identified in the State's plans 
under titles IV-B and IV-E of the Social Security Act; services 
permissible under title XX of the Social Security Act; and expenditures 
incurred in establishing legal responsibility.
    (b) A State may provide additional services if the Director, or his 
or her designee, determines such services to be reasonable and necessary 
for a particular child or children and provides written notification of 
such determination to the State.



Sec.400.117  Provision of care and services.

    (a) A State may provide care and services to an unaccompanied minor 
directly or through arrangements with a public or private child welfare 
agency approved or licensed under State law.
    (b) If a State arranges for the care and services through a public 
or private nonprofit child welfare agency, it must retain oversight 
responsibility for the appropriateness of the unaccompanied minor's 
care.



Sec.400.118  Case planning.

    (a) A State, or its designee under Sec.400.117, must develop and 
implement an appropriate plan for the care and supervision of, and 
services provided to, each unaccompanied minor, to ensure that the child 
is placed in a foster home or other setting approved by the legally 
responsible agency and in accordance with the child's need for care and 
for social, health, and educational services.
    (b) Case planning for unaccompanied minors must, at a minimum, 
address the following elements:
    (1) Family reunification;
    (2) Appropriate placement of the unaccompanied child in a foster 
home, group foster care, residential facility, supervised independent 
living, or other setting, as deemed appropriate in meeting the best 
interest and special needs if the child.
    (3) Health screening and treatment, including provision for medical 
and dental examinations and for all necessary medical and dental 
treatment.
    (4) Orientation, testing, and counseling to facilitate the 
adjustment of the child to American culture.
    (5) Preparation for participation in American society with special 
emphasis upon English language instruction and occupational as well as 
cultural training as necessary to facilitate the child's social 
integration and to prepare the child for independent living and economic 
self-sufficiency.
    (6) Preservation of the child's ethnic and religious heritage.
    (c) A State, or its designee under section 400.117 of this part, 
must review the continuing appropriateness of each unaccompanied minor's 
living arrangement and services no less frequently than every 6 months.

(Approved by the Office of Management and Budget under control number 
0960-0418)



Sec.400.119  Interstate movement.

    After the initial placement of an unaccompanied minor, the same 
procedures that govern the movement of nonrefugee foster cases to other 
States apply to the movement of unaccompanied minors to other States.



Sec.400.120  Reporting requirements.

    A State must submit to ORR, on forms prescribed by the Director, the 
following reports on each unaccompanied minor:
    (a) An initial report within 30 days of the date of the minor's 
placement in the State;
    (b) A progress report every 12 months beginning with 12 months from 
the date of the initial report in paragraph (a);
    (c) A change of status report within 60 days of the date that--
    (1) The minor's placement is changed;
    (2) Legal responsibility of any kind for the minor is established or 
transferred; or
    (d) A final report within 60 days of the date of that the minor--
    (1) Is reunited with a parent; or
    (2) Is united with an adult, other than a parent, in accordance with 
Sec.400.113(b) or Sec.400.115(c) of this part.

[[Page 375]]

    (3) Is emancipated.

(Approved by the Office of Management and Budget under control number 
0960-0418)



                    Subpart I_Refugee Social Services



Sec.400.140  Basis and scope.

    This subpart sets forth requirements concerning formula allocation 
grants to States under section 412(c) of the Act for refugee social 
services.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]



Sec.400.141  Definitions.

    For purposes of this subpart--
    Refugee social services means any service set forth in Sec.400.154 
or Sec.400.155 of this subpart.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

  Applications, Determinations of Eligibility, and Provision of Serv- 
                                  ices



Sec.400.145  Opportunity to apply for services.

    (a) A State must provide any individual wishing to do so an 
opportunity to apply for services and determine the eligibility of each 
applicant.
    (b) Except as otherwise specified in this subpart, a State must 
determine eligibility for and provide refugee social services specified 
in Sec. Sec.400.154 and 400.155 in accordance with the same procedures 
which it follows in its social service program under title XX of the 
Social Security Act with respect to determining eligibility, acting on 
applications and requests for services, and providing notification of 
right to a hearing.
    (c) A State must insure that women have the same opportunities as 
men to participate in all services funded under this part, including job 
placement services.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

                     Funding and Service Priorities



Sec.400.146  Use of funds.

    The State must use its social service grants primarily for 
employability services designed to enable refugees to obtain jobs within 
one year of becoming enrolled in services in order to achieve economic 
self-sufficiency as soon as possible. Social services may continue to be 
provided after a refugee has entered a job to help the refugee retain 
employment or move to a better job. Social service funds may not be used 
for long-term training programs such as vocational training that last 
for more than a year or educational programs that are not intended to 
lead to employment within a year.

[60 FR 33603, June 28, 1995]



Sec.400.147  Priority in provision of services.

    A State must plan its social service program and allocate its social 
service funds in such a manner that services are provided to refugees in 
the following order of priority, except in certain individual extreme 
circumstances:
    (a) All newly arriving refugees during their first year in the U.S., 
who apply for services;
    (b) Refugees who are receiving cash assistance;
    (c) Unemployed refugees who are not receiving cash assistance; and
    (d) Employed refugees in need of services to retain employment or to 
attain economic independence.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995]

                          Purchase of Services



Sec.400.148  Purchase of services.

    A state may provide services directly or it may purchase services 
from public or private service providers.

[54 FR 5481, Feb. 3, 1989]

          Conditions of Eligibility for Refugee Social Services



Sec.400.150  General eligibility requirements.

    Eligibility for refugee social services is limited to those refugees 
who--
    (a) Meet immigration status and identification requirements in 
Subpart D of this part;
    (b) Meet the other eligibility requirements and conditions in this 
subpart.

[54 FR 5481, Feb. 3, 1989]

[[Page 376]]



Sec.400.152  Limitations on eligibility for services.

    (a) A State may provide the social services defined in Sec.400.154 
to refugees who are 16 years of age or older and who are not full-time 
students in elementary or secondary school, except that such a student 
may be provided services under Sec.400.154 (a) and (b) in order to 
obtain part-time or temporary (e.g., summer) employment while a student 
or full-time permanent employment upon completion of schooling.
    (b) A State may not provide services under this subpart, except for 
citizenship and naturalization preparation services and referral and 
interpreter services, to refugees who have been in the United States for 
more than 60 months.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995; 65 
FR 15449, Mar. 22, 2000]

                    Scope of Refugee Social Services



Sec.400.154  Employability services.

    A State may provide the following employability services--
    (a) Employment services, including development of a family self-
sufficiency plan and an individual employability plan, world-of-work and 
job orientation, job clubs, job workshops, job development, referral to 
job opportunities, job search, and job placement and followup.
    (b) Employability assessment services, including aptitude and skills 
testing.
    (c) On-the job training, when such training is provided at the 
employment site and is expected to result in full-time, permanent, 
unsubsidized employment with the employer who is providing the training.
    (d) English language instruction, with an emphasis on English as it 
relates to obtaining and retaining a job.
    (e) Vocational training, including driver education and training 
when provided as part of an individual employability plan.
    (f) Skills recertification, when such training meets the criteria 
for appropriate training in Sec.400.81(b) of this part.
    (g) Day care for children, when necessary for participation in an 
employability service or for the acceptance or retention of employment.
    (h) Transportation, when necessary for participation in an 
employability service or for the acceptance or retention of employment.
    (i) Translation and interpreter services, when necessary in 
connection with employment or participation in an employability service.
    (j) Case management services, as defined in Sec.400.2 of this 
part, for refugees who are considered employable under Sec.400.76 and 
for recipients of TANF and GA who are considered employable, provided 
that such services are directed toward a refugee's attainment of 
employment as soon as possible after arrival in the United States.
    (k) Assistance in obtaining Employment Authorization Documents 
(EADs).

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995; 65 
FR 15449, Mar. 22, 2000]



Sec.400.155  Other services.

    A State may provide the following other services--
    (a) Information and referral services.
    (b) Outreach services, including activities designed to familiarize 
refugees with available services, to explain the purpose of these 
services, and facilitate access to these services.
    (c) Social adjustment services, including:
    (1) Emergency services, as follows: Assessment and short-term 
counseling to persons or families in a perceived crisis; referral to 
appropriate resources; and the making of arrangements for necessary 
services.
    (2) Health-related services, as follows: Information; referral to 
appropriate resources; assistance in scheduling appointments and 
obtaining services; and counseling to individuals or families to help 
them understand and identify their physical and mental health needs and 
maintain or improve their physical and mental health.
    (3) Home management services, as follows: Formal or informal 
instruction to individuals or families in management of household 
budgets, home maintenance, nutrition, housing standards, tenants' 
rights, and other consumer education services.

[[Page 377]]

    (d) Day care for children, when necessary for participation in a 
service other than an employability service.
    (e) Transportation, when necessary for participation in a service 
other than an employability service.
    (f) Translation and interpreter services, when necessary for a 
purpose other than in connection with employment or participation in an 
employability service.
    (g) Case management services, when necessary for a purpose other 
than in connection with employment or participation in employability 
services.
    (h) Any additional service, upon submission to and approval by the 
Director of ORR, aimed at strengthening and supporting the ability of a 
refugee individual, family, or refugee community to achieve and maintain 
economic self-sufficiency, family stability, or community integration 
which has been demonstrated as effective and is not available from any 
other funding source.
    (i) Citizenship and naturalization preparation services, including 
English language training and civics instruction to prepare refugees for 
citizenship, application assistance for adjustment to legal permanent 
resident status and citizenship status, assistance to disabled refugees 
in obtaining disability waivers from English and civics requirements for 
naturalization, and the provision of interpreter services for the 
citizenship interview.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33603, June 28, 1995; 65 
FR 15449, Mar. 22, 2000]



Sec.400.156  Service requirements.

    (a) In order to avoid interference with refugee employment, English 
language instruction and vocational training funded under this part must 
be provided to the fullest extent feasible outside normal working hours.
    (b) In planning and providing services under Sec. Sec.400.154 and 
400.155, a State must take into account those services which a 
resettlement agency is required to provide for a refugee whom it 
sponsors in order to ensure the provision of seamless, coordinated 
services to refugees that are not duplicative.
    (c) English language instruction funded under this part must be 
provided in a concurrent, rather than sequential, time period with 
employment or with other employment-related services.
    (d) Services funded under this part must be refugee-specific 
services which are designed specifically to meet refugee needs and are 
in keeping with the rules and objectives of the refugee program, except 
that vocational or job skills training, on-the-job training, or English 
language training need not be refugee-specific.
    (e) Services funded under this part must be provided to the maximum 
extent feasible in a manner that is culturally and linguistically 
compatible with a refugee's language and cultural background.
    (f) Services funded under this part must be provided to the maximum 
extent feasible in a manner that includes the use of bilingual/
bicultural women on service agency staffs to ensure adequate service 
access by refugee women.
    (g) A family self-sufficiency plan must be developed for anyone who 
receives employment-related services funded under this part.

[54 FR 5481, Feb. 3, 1989, as amended at 60 FR 33604, June 28, 1995]



                        Subpart J_Federal Funding

    Source: 51 FR 3916, Jan. 30, 1986, unless otherwise noted.



Sec.400.200  Scope.

    This subpart specifies when, and the extent to which, Federal 
funding (FF) is available under this regulation in expenditures for 
determining eligibility and for providing assistance and services to 
refugees determined eligible under this part, and prescribes limitations 
and conditions on FF for those expenditures.

    Federal Funding for Expenditures for Determining Eligibility and 
                    Providing Assistance and Services



Sec.400.202  Extent of Federal funding.

    Subject to the availability of funds and under the terms and 
conditions approved by the Director, FF will be provided for 100 percent 
of authorized allowable costs of determining eligibility and providing 
assistance and services in accordance with this part.

[[Page 378]]



Sec.400.203  Federal funding for cash assistance.

    (a) To the extent that sufficient funds are appropriated, Federal 
funding is available for cash assistance provided to eligible refugees 
during the 36-month period beginning with the first month the refugee 
entered the United States, as follows--
    (1) If a refugee is eligible for TANF, adult assistance programs, or 
foster care maintenance payments under title IV-E of the Social Security 
Act, FF is available only for the non-Federal share of such assistance.
    (2) If a refugee is eligible for SSI, FF is available for any 
supplementary payment a State may provide under that program.
    (b) Federal funding is available for refugees cash assistance (RCA) 
provided to eligible refugees during a period of time to be determined 
by the Director in accordance with Sec.400.211.
    (c) To the extent that sufficient funds are appropriated, Federal 
funding is available for general assistance (GA) provided to eligible 
refugees during the 24-month period beginning with the 13th month after 
the refugee entered the United States.

[51 FR 3916, Jan. 30, 1986, as amended at 53 FR 32224, Aug. 24, 1988; 58 
FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 1993; 60 FR 33604, June 
28, 1995; 65 FR 15450, Mar. 22, 2000]



Sec.400.204  Federal funding for medical assistance.

    (a) To the extent that sufficient funds are appropriated, Federal 
funding is available for the non-Federal share of medical assistance 
provided to refugees who are eligible for Medicaid or adult assistance 
programs during the 36-month period beginning with the first month the 
refugee entered the United States.
    (b) Federal funding is available for refugee medical assistance 
(RMA) provided to eligible refugees during a period of time to be 
determined by the Director in accordance with Sec.400.211.
    (c) To the extent that sufficient funds are appropriated, Federal 
funding is available for a State's expenditures for medical assistance 
under a general assistance (GA) program during the 24-month period 
beginning with the 13th month after the refugee entered the United 
States.

[51 FR 3916, Jan. 30, 1986, as amended at 53 FR 32225, Aug. 24, 1988; 58 
FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 1993; 60 FR 33604, June 
28, 1995]



Sec.400.205  Federal funding for assistance and services for 
unaccompanied minors.

    Federal funding is available for a State's expenditures for service 
to unaccompanied minors under Sec. Sec.400.115 through 400.120 of this 
part until the minor's status as an unaccompanied minor is terminated as 
specified by Sec.400.113.



Sec.400.206  Federal funding for social services and targeted 
assistance services.

    (a) Federal funding is available for refugee social services as set 
forth in Subpart I of this part, including the reasonable and necessary 
identifiable administrative costs of providing such services, in 
accordance with allocations by the Director.
    (b) Federal funding is available for targeted assistance services as 
set forth in subpart L of this part, including reasonable and necessary 
identifiable State administrative costs of providing such services, not 
to exceed 5 percent of the total targeted assistance award to the State.

[54 FR 5483, Feb. 3, 1989, as amended at 60 FR 33604, June 28, 1995]



Sec.400.207  Federal funding for administrative costs.

    Federal funding is available for reasonable and necessary 
identifiable administrative costs of providing assistance and services 
under this part only for those assistance and service programs set forth 
in Sec. Sec.400.203 through 400.205 for which Federal funding is 
currently made available under the refugee program. A State may claim 
only those costs that are determined to be reasonable and allowable as 
defined by the Administration for Children and Families. Such costs may 
include reasonable and necessary administrative costs incurred by local 
resettlement agencies in providing assistance and services under a 
public/private RCA program. Administrative costs may be

[[Page 379]]

included in a State's claims against its quarterly grants for the 
purposes set forth in Sec. Sec.400.203 through 400.205 of this part.

[60 FR 33604, June 28, 1995, as amended at 65 FR 15450, Mar. 22, 2000]



Sec.400.208  Claims involving family units which include both refugees
and nonrefugees.

    (a) Federal funding is available for a State's expenditures for 
assistance and services to a family unit which includes a refugee parent 
or two refugee parents and one or more of their children who are 
nonrefugees, including children who are United States citizens.
    (b) Federal funding is not available for a State's expenditures for 
assistance and services provided to a nonrefugee adult member of a 
family unit or to a nonrefugee child or children in a family unit if one 
parent in the family unit is a nonrefugee.

[51 FR 3916, Jan. 30, 1986, as amended at 65 FR 15450, Mar. 22, 2000]



Sec.400.209  Claims involving family units which include refugees who 
have been in the United States more than 36 months.

    Federal funding is not available for State expenditures for cash and 
medical assistance and child welfare services (except services for 
unaccompanied minors) provided to any refugee within a family unit who 
has been in the United States
    (a) More than 36 months if the family unit is eligible for TANF, 
SSI, Medicaid, GA, or child welfare services (except services for 
unaccompanied minors), or
    (b) More than a period of time to be determined by the Director in 
accordance with Sec.400.211 if the family unit is eligible for RCA or 
RMA. A State agency must exclude expenditures made on behalf of such 
refugees from its claim.

[51 FR 3916, Jan. 30, 1986, as amended at 53 FR 32225, Aug. 24, 1988; 57 
FR 1115, Jan. 10, 1992; 58 FR 46090, Sept. 1, 1993; 58 FR 64507, Dec. 8, 
1993; 65 FR 15450, Mar. 22, 2000]



Sec.400.210  Time limits for obligating and expending funds and for 
filing State claims.

    Federal funding is available for a State's expenditures for 
assistance and services to eligible refugees for which the following 
time limits are met:
    (a) CMA grants, as described at Sec.400.11(a)(1) of this part:
    (1) Except for services for unaccompanied minors, a State must use 
its CMA grants for costs attributable to the Federal fiscal year (FFY) 
in which the Department awards the grants. With respect to CMA funds 
used for services for unaccompanied minors, the State may use its CMA 
funds for services provided during the Federal fiscal year following the 
FFY in which the Department awards the funds.
    (2) A State's final financial report on expenditures of CMA grants, 
including CMA expenditures for services for unaccompanied minors, must 
be received no later than one year after the end of the FFY in which the 
Department awarded the grant. At that time, the Department will 
deobligate any unexpended funds, including any unliquidated obligations.
    (b) Social service grants and targeted assistance grants, as 
described, respectively, at Sec. Sec.400.11(a)(2) and 400.311 of this 
part:
    (1) A State must obligate its social service and targeted assistance 
grants no later than one year after the end of the FFY in which the 
Department awards the grant.
    (2) A State must expend its social service and targeted assistance 
grants no later than two years after the end of the FFY in which the 
Department awards the grant. A State's final financial report on 
expenditures of social services and targeted assistance grants must be 
received no later than 90 days after the end of the two-year expenditure 
period. At that time, if a State's final financial expenditure report 
has not been received, the Department will deobligate any unexpended 
funds, including any unliquidated obligations, based on a State's last 
submitted financial report.

[60 FR 33604, June 28, 1995, as amended at 65 FR 15450, Mar. 22, 2000]

[[Page 380]]



Sec.400.211  Methodology to be used to determine time-eligibility of 
refugees.

    (a) The time-eligibility period for refugee cash assistance and 
refugee medical assistance will be determined by the Director each year, 
based on appropriated funds available for the fiscal year. The Director 
will make a determination of the eligibility period each year as soon as 
possible after funds are appropriated for the refugee program, and also 
at subsequent points during the fiscal year, only if a reduction in the 
eligibility period is indicated, based on updated information on refugee 
flows and State reports on receipt of assistance and expenditures. The 
method to be used to determine the RCA/RMA eligibility period will 
include the following steps and will be applied to various RCA/RMA time-
eligibility periods in order to determine the time-eligibility period 
which will provide the most number of months without incurring a 
shortfall in funds for the fiscal year.
    (1) The time-eligibility population for the projected fiscal year 
will be estimated on the basis of the refugee admissions ceiling 
established by the President for that fiscal year and the anticipated 
arrival of other persons eligible for refugee assistance, to the extent 
that data on these persons are available. The anticipated pattern of 
refugee flow for the projected fiscal year will be estimated based on 
the best available historical and current refugee flow information that 
will most accurately forecast the refugee flow for the projected fiscal 
year. These arrival figures will then be used to determine the time-
eligible population for a given duration of RCA/RMA benefits.
    (2) The average annual number of RCA and RMA recipients will be 
determined by multiplying the estimated time-eligible population 
established in paragraph (a)(1) of this section by the estimated RCA and 
RMA participation rates. The RMA participation rate will take into 
account both RCA recipients, who are also eligible for RMA, and RMA-only 
recipients. Recipient data from quarterly performance reports submitted 
by States for the most recent 4 quarters for which reports are available 
will be used to determine the appropriate participation rates for 
various RCA/RMA time-eligibility periods.
    (3) The average annual per recipient cost for RCA and RMA will be 
estimated separately, based on estimated per recipient costs for the 
most recent fiscal year, using available data, and inflated for the 
projected fiscal year using projected increases in per capita cash 
assistance costs for RCA and per capita Medicaid costs for RMA.
    (4) The expected average number of RCA recipients will be multiplied 
by the expected RCA per recipient cost to derive estimated RCA costs. 
The expected average annual number of RMA recipients will be multiplied 
by the expected RMA per recipient cost to derive estimated RMA costs.
    (5) State administrative costs for the projected fiscal year for all 
States in the aggregate will be estimated based on total actual 
allowable expenditures for State administration for the most recent 
fiscal year. The variable portion of administrative costs will be 
adjusted for changes in program participation and inflated by the 
Consumer Price Index (CPI) for all items as estimated by the Office of 
Management and Budget (OMB). The fixed portion of administrative costs 
will be adjusted by the CPI inflator only.
    (6) The total estimated costs for the projected fiscal year will 
equal the combined estimated costs for RCA, RMA, and State 
administration as calculated in paragraphs (a)(1) through (5) of this 
section.
    (b) If, as the Director determines, the period of eligibility needs 
to be changed from the eligibility period in effect at the time, the 
Director will publish a final notice in the Federal Register, announcing 
the new period of eligibility for refugee cash assistance and refugee 
medical assistance and the effective date for implementing the new 
eligibility period. States will be given as much notice as available 
funds will allow without resulting in a further reduction in the 
eligibility period. At a minimum, States will be given 30 days' notice.

[58 FR 64507, Dec. 8, 1993, as amended at 65 FR 15450, Mar. 22, 2000]

[[Page 381]]



Sec.400.212  Restrictions in the use of funds.

    Federal funding under this part is not available for travel outside 
the United States without the written approval of the Director.

[60 FR 33604, June 28, 1995]



Sec.400.220  Counting time-eligibility of refugees.

    A State may calculate the time-eligibility of a refugee under this 
part in either of the following ways:
    (a) On the basis of calendar months, in which case the month of 
arrival in the United States must count as the first month; or
    (b) On the basis of the actual date of arrival, in which case each 
month will be counted from that specific date.

[54 FR 5483, Feb. 3, 1989]



                    Subpart K_Waivers and Withdrawals



Sec.400.300  Waivers.

    If a State wishes to apply for a waiver of a requirement of this 
part, the Director may waive such requirement with respect to such 
State, unless required by statute, if the Director determines that such 
waiver will advance the purposes of this part and is appropriate and 
consistent with Federal refugee policy objectives. To the fullest extent 
practicable, the Director will approve or disapprove an application for 
a waiver within 130 days of receipt of such application. The Director 
shall provide timely written notice of the reasons for denial to States 
whose applications are disapproved.

[60 FR 33604, June 28, 1995]



Sec.400.301  Withdrawal from the refugee program.

    (a) In the event that a State decides to cease participation in the 
refugee program, the State must provide 120 days advance notice to the 
Director before withdrawing from the program.
    (b) To participate in the refugee program, a State is expected to 
operate all components of the refugee program, including refugee cash 
and medical assistance, social services, preventive health, and an 
unaccompanied minors program if appropriate. A State is also expected to 
play a coordinating role in the provision of assistance and services in 
accordance with Sec.400.5(b). In the event that a State wishes to 
retain responsibility for only part of the refugee program, it must 
obtain prior approval from the Director of ORR. Such approval will be 
granted if it is in the best interest of the Government.
    (c) When a State withdraws from all or part of the refugee program, 
the Director may authorize a replacement designee or designees to 
administer the provision of assistance and services, as appropriate, to 
refugees in that State. A replacement designee must adhere to the same 
regulations under this part that apply to a State-administered program, 
with the exception of the following provisions: 45 CFR 400.5(d), 400.7, 
400.51(b)(2)(i), 400.58(c), 400.94(a), 400.94(b), 400.94(c), and subpart 
L. Replacement designees must also adhere to the Subpart L regulations 
regarding formula allocation grants for targeted assistance, if the 
State authorized the replacement designee appointed by the Director to 
act as its agent in applying for and receiving targeted assistance 
funds. Certain provisions are excepted because they apply only to States 
and become moot when a State withdraws from participation in the refugee 
program and is replaced by another entity. States would continue to be 
responsible for administering the other excepted provisions because 
these provisions refer to the administration of other State-run public 
assistance programs.

[60 FR 33604, June 28, 1995, as amended at 65 FR 15450, Mar. 22, 2000]



                      Subpart L_Targeted Assistance

    Source: 60 FR 33604, June 28, 1995, unless otherwise noted.



Sec.400.310  Basis and scope.

    This subpart sets forth requirements concerning formula allocation 
grants to States under section 412(c)(2) of the Act for targeted 
assistance.



Sec.400.311  Definitions.

    For purposes of this subpart--

[[Page 382]]

    ``Targeted assistance grants'' means formula allocation funding to 
States for assistance to counties and similar areas in the States where, 
because of factors such as unusually large refugee populations 
(including secondary migration), high refugee concentrations, and high 
use of public assistance by refugees, there exists and can be 
demonstrated a specific need for supplementation of available resources 
for services to refugees.



Sec.400.312  Opportunity to apply for services.

    A State must provide any individual wishing to do so an opportunity 
to apply for targeted assistance services and determine the eligibility 
of each applicant.

                     Funding and Service Priorities



Sec.400.313  Use of funds.

    A State must use its targeted assistance funds primarily for 
employability services designed to enable refugees to obtain jobs with 
less than one year's participation in the targeted assistance program in 
order to achieve economic self-sufficiency as soon as possible. Targeted 
assistance services may continue to be provided after a refugee has 
entered a job to help the refugee retain employment or move to a better 
job. Targeted assistance funds may not be used for long-term training 
programs such as vocational training that last for more than a year or 
educational programs that are not intended to lead to employment within 
a year.



Sec.400.314  Priority in provision of services.

    A State must plan its targeted assistance program and allocate its 
targeted assistance funds in such a manner that services are provided to 
refugees in the following order of priority, except in certain 
individual extreme circumstances:
    (a) Cash assistance recipients, particularly long-term recipients;
    (b) Unemployed refugees who are not receiving cash assistance; and
    (c) Employed refugees in need of services to retain employment or to 
attain economic independence.



Sec.400.315  General eligibility requirements.

    (a) For purposes of determining eligibility of refugees for services 
under this subpart, the same standards and criteria shall be applied as 
are applied in the determination of eligibility for refugee social 
services under Sec. Sec.400.150 and 400.152(a).
    (b) A State may not provide services under this subpart, except for 
referral and interpreter services, to refugees who have been in the 
United States for more than 60 months, except that refugees who are 
receiving employability services, as defined in Sec.400.316, as of 
September 30, 1995, as part of an employability plan, may continue to 
receive those services through September 30, 1996, or until the services 
are completed, whichever occurs first, regardless of their length of 
residence in the U.S.



Sec.400.316  Scope of targeted assistance services.

    A State may provide the same scope of services under this subpart as 
may be provided to refugees under Sec. Sec.400.154 and 400.155, with 
the exception of Sec.400.155(h).



Sec.400.317  Service requirements.

    In providing targeted assistance services to refugees, a State must 
adhere to the same requirements as are applied to the provision of 
refugee social services under Sec.400.156.



Sec.400.318  Eligible grantees.

    Eligible grantees are those agencies of State governments which are 
responsible for the refugee program under 45 CFR 400.5 in States 
containing counties which qualify for targeted assistance awards. The 
use of targeted assistance funds for services to Cuban and Haitian 
entrants is limited to States which have an approved State plan under 
the Cuban/Haitian Entrant Program (CHEP).



Sec.400.319  Allocation of funds.

    (a) A State with more than one qualifying targeted assistance county 
may allocate its targeted assistance funds differently from the formula 
allocations for counties presented in the ORR targeted assistance notice 
in a fiscal

[[Page 383]]

year only on the basis of its population of refugees who arrived in the 
U.S. during the most recent 5-year period. A State may use welfare data 
as an additional factor in the allocation of targeted assistance funds 
if it so chooses; however, a State may not assign a greater weight to 
welfare data than it has assigned to population data in its allocation 
formula.
    (b) A State must assure that not less than 95 percent of the total 
award to the State is made available to the qualified county or 
counties, except in those cases where the qualified county or counties 
have agreed to let the State administer the targeted assistance program 
in the county's stead.



PART 401_CUBAN/HAITIAN ENTRANT PROGRAM--Table of Contents



Sec.
401.1 [Reserved]
401.2 Definitions.
401.3-401.11 [Reserved]
401.12 Cuban and Haitian entrant cash and medical assistance.

    Authority: Sec. 501(a), Pub. L. 96-422, 94 Stat. 1810 (8 U.S.C. 1522 
note); Executive Order 12341 (January 21, 1982).

    Source: 47 FR 10850, Mar. 12, 1982, unless otherwise noted.



Sec.401.1  [Reserved]



Sec.401.2  Definitions.

    For purposes of this part a Cuban and Haitian entrant or entrant is 
defined as:
    (a) Any individual granted parole status as a Cuban/Haitian Entrant 
(Status Pending) or granted any other special status subsequently 
established under the immigration laws for nationals of Cuba or Haiti, 
regardless of the status of the individual at the time assistance or 
services are provided; and
    (b) Any other national of Cuba or Haiti
    (1) Who:
    (i) Was paroled into the United States and has not acquired any 
other status under the Immigration and Nationality Act;
    (ii) Is the subject of exclusion or deportation proceedings under 
the Immigration and Nationality Act; or
    (iii) Has an application for asylum pending with the Immigration and 
Naturalization Service; and
    (2) With respect to whom a final, nonappealable, and legally 
enforceable order of deportation or exclusion has not been entered.



Sec. Sec.401.3-401.11  [Reserved]



Sec.401.12  Cuban and Haitian entrant cash and medical assistance.

    Except as may be otherwise provided in this section, cash and 
medical assistance shall be provided to Cuban and Haitian entrants by 
the same agencies, under the same conditions, and to the same extent as 
such assistance is provided to refugees under part 400 of this title.
    (a) For purposes of determining the eligibility of Cuban and Haitian 
entrants for cash and medical assistance under this section and the 
amount of assistance for which they are eligible under this section, the 
same standards and criteria shall be applied as are applied in the 
determination of eligibility for an amount of cash and medical 
assistance for refugees under subparts E and G of part 400 of this 
title.
    (b) Federal reimbursement will be provided to States for the costs 
of providing cash and medical assistance (and related administrative 
costs) to Cuban and Haitian entrants according to procedures and 
requirements, including procedures and requirements relating to the 
submission and approval of a State plan, identical to those applicable 
to the Refugee Program and set forth in part 400 of this title.
    (c) The number of months during which an entrant may be eligible for 
cash and medical assistance for which Federal reimbursement is available 
under this section shall be counted starting with the first month in 
which an individual meeting the definition of a Cuban and Haitian 
entrant in Sec.401.2 was first issued documentation by the Immigration 
and Naturalization Service indicating:
    (1) That the entrant has been granted parole by the Attorney General 
under the Immigration and Nationality Act,
    (2) That the entrant is in a voluntary departure status, or

[[Page 384]]

    (3) That the entrant's residence in a United States community is 
known to the Immigration and Naturalization Service.
    The amendments are to be issued under the authority contained in 
section 412(a)(9), Immigration and Nationality Act (8 U.S.C. 
1522(a)(9)).

[47 FR 10850, Mar. 12, 1982, as amended at 65 FR 15450, Mar. 22, 2000]



PART 402_STATE LEGALIZATION IMPACT ASSISTANCE GRANTS--
Table of Contents



                         Subpart A_Introduction

Sec.
402.1 General.
402.2 Definitions.

                         Subpart B_Use of Funds

402.10 Allowable use of funds.
402.11 Limitations on Use of SLIAG Funds.
402.12 Use of SLIAG Funds for Costs Incurred Prior to October 1, 1987.

                   Subpart C_Administration of Grants

402.20 General provisions.
402.21 Fiscal control.
402.22 [Reserved]
402.23 Repayment.
402.24 Withholding.
402.25 Appeals.
402.26 Time period for obligation and expenditure of grant funds.

                       Subpart D_State Allocations

402.30 Basis of awards.
402.31 Determination of allocations.
402.32 Determination of state allotments.
402.33 Allotment of excess funds.
402.34 Allocation of unexpected funds.

                      Subpart E_State Applications

402.40 General.
402.41 Application content.
402.42 Application format.
402.43 Application deadline.
402.44 Basis for approval.
402.45 Amendments to applications.

                  Subpart F_Recordkeeping and Reporting

402.50 Recordkeeping.
402.51 Reporting.

    Authority: 8 U.S.C. 1255a note, as amended.

    Source: 53 FR 7858, Mar. 10, 1988, unless otherwise noted.



                         Subpart A_Introduction



Sec.402.1  General.

    (a) These regulations implement section 204 of Pub. L. 99-603, the 
Immigration Reform and Control Act of 1986 (IRCA), as amended. This act 
establishes a temporary program of State Legalization Impact Assistance 
Grants (SLIAG) for States. The purpose of SLIAG is to lessen the 
financial impact on State and local governments resulting from the 
adjustment of immigration status under the Act of certain groups of 
aliens residing in the States, the District of Columbia, Puerto Rico, 
the Virgin Islands, and Guam.
    (b) Funds appropriated by section 204 may be applied by States with 
approved applications to certain State and local government costs 
incurred:
    (1) In providing public assistance and public health assistance to 
eligible legalized aliens,
    (2) For making payments to State educational agencies for the 
purpose of assisting local educational agencies in providing certain 
educational services to eligible legalized aliens,
    (3) To provide public education and outreach to lawful temporary 
resident aliens concerning the adjustment to lawful permanent resident 
status and other matters,
    (4) To make payments for education and outreach efforts by State 
agencies regarding unfair discrimination in employment practices based 
on national origin or citizenship status, and
    (5) To administer the funds provided under this part.

[56 FR 21246, May 7, 1991]



Sec.402.2  Definitions.

    As used in this part--
    The Act means the Immigration Reform and Control Act of 1986, Public 
Law 99-603, as amended.
    Allocation means an amount designated for a State, as determined 
under Sec.402.31, Sec.402.33, or Sec.402.34.
    Allotment means the total amount awarded to a State, as determined 
under Sec.402.31, Sec.402.33, or Sec.402.34.
    Department means the U.S. Department of Health and Human Services.
    Educational Services means:

[[Page 385]]

    (1) For eligible legalized aliens regardless of age enrolled in 
elementary or secondary school, services allowable under section 607 of 
the Emergency Immigrant Education Act, 20 U.S.C. 4101, et seq. (Pub. L. 
98-511), as in effect on November 6, 1986.
    (2) For adult eligible legalized aliens:
    (i) Services authorized under the Adult Education Act, 20 U.S.C. 
1201 et seq. (Pub. L. 89-750, as amended), as in effect November 6, 
1986, and
    (ii) English language and other programs designed to enable eligible 
legalized aliens to attain the citizenship skills required by section 
245A(b)(1)(D)(i) of the INA.
    Eligible legalized alien means an alien whose status has been 
adjusted to lawful temporary resident under section 245A, 210, or 210A 
of the Immigration and Nationality Act, beginning on the effective date 
of such adjustment as established by the Immigration and Naturalization 
Service, and continuing until the end of the five-year period beginning 
on the effective date of such adjustment, provided that during that time 
the alien remains in lawful temporary or permanent resident status 
granted under the Act.
    Employment discrimination education and outreach means education and 
outreach efforts by State agencies regarding unfair discrimination in 
employment practices based on national origin or citizenship status.
    INA means the Immigration and Nationality Act, 8 U.S.C. 1101, et 
seq.
    Local educational agency means--
    (a) A public board of education or other public authority legally 
constituted within a State for either administrative control of or 
direction of, or to perform service functions for, public elementary or 
secondary schools in--
    (1) A city, county, township, school district, or other political 
subdivision of a State; or
    (2) Such combination of school districts or counties a State 
recognizes as an administrative agency for its public elementary or 
secondary schools; or
    (b) Any other public institution or agency that has administrative 
control and direction of a public elementary or secondary school.
    Local government has the same meaning as in 45 CFR part 92.
    Nonpublic, as applied to an agency, organization, or institution, 
means that the agency, organization, or institution is nonprofit and is 
not under Federal or public supervision or control.
    Phase II outreach means public education and outreach (including the 
provision of information to individuals) to inform temporary resident 
aliens under section 210, 210A, 245A of the INA and aliens whose 
applications for such status are pending with the Immigration and 
Naturalization Service regarding:
    (1) The requirements of sections 210, 210A, and 245A of the INA 
regarding the adjustment of resident status;
    (2) Sources of assistance for such aliens obtaining the adjustment 
of status described in paragraph (1) of this definition, including 
educational, informational, and referral services, and the rights and 
responsibilities of such aliens and aliens lawfully admitted for 
permanent residence;
    (3) The identification of health, employment, and social services; 
and,
    (4) The importance of identifying oneself as a temporary resident 
alien to service providers.
    Program administrative costs means those costs associated with 
administering public assistance, public health assistance, educational 
services, Phase II outreach, and employment discrimination education and 
outreach activities.
    Public, as applied to an agency, organization, or institution, means 
that the agency, organization, or institution is under the 
administrative supervision or control of a government other than the 
Federal Government.
    Public assistance means cash, medical, or other assistance provided 
to meet the basic subsistence needs or health needs of individuals.
    (1) That is generally available to needy individuals residing in a 
State and
    (2) That is provided with funds from units of State or local 
government.

As used in this definition, basic subsistence needs are minimal living 
requirements, including food, shelter and clothing. For purposes of this 
definition, assistance is considered to have

[[Page 386]]

been provided to needy individuals if specified income or resource 
requirements are used to determine eligibility or the amount of a fee or 
other charges to be paid for services. Other assistance means assistance 
and services, other than cash or medical assistance, that are directed 
at meeting basic subsistence needs, and that meet all of the criteria in 
this definition. Other assistance also means assistance and services in 
which participation is required as a condition of receipt of cash or 
medical assistance.
    Public health assistance means health services (1) that are 
generally available to needy individuals residing in a State; (2) that 
receive funding from units of State or local government; and, (3) that 
are provided for the primary purpose of protecting the health of the 
general public, including, but not limited to, immunizations for 
immunizable diseases, testing and treatment for tuberculosis and 
sexually-transmitted diseases, and family planning services.
    Recipient means grantee or subgrantee.
    Secretary means the Secretary of the Department of Health and Human 
Services.
    SLIAG administrative costs means the direct and indirect costs 
related to administration of funds provided under this part, including: 
planning and conferring with local officials, preparing the application, 
audits, allocation of funds, tracking and recordkeeping, monitoring use 
of funds, and reporting.
    SLIAG-reimbursable activity means programs of public assistance, 
programs of public health assistance, educational services, employment 
discrimination education and outreach, Phase II outreach, program 
administrative costs, and SLIAG administrative costs, as those terms are 
defined in this part, that are included in a State's application 
approved pursuant to subpart E of this part.
    SLIAG-related costs means expenditures made: To provide public 
assistance, public health assistance, or educational services, as 
defined in this part, to eligible legalized aliens; to provide public 
health assistance to aliens applying on a timely basis to become lawful 
temporary residents under sections 210, 210A, or 245A of the INA during 
such time as that alien's application with INS is pending approval; to 
provide employment discrimination education and outreach, as defined in 
this part; to provide Phase II outreach, as defined in this part; and 
for SLIAG administrative costs, as defined in this part. SLIAG-related 
costs include all allowable expenditures, including program 
administrative costs determined in accordance with Sec.402.21(c), 
regardless of whether those expenditures actually are reimbursed or paid 
for with funds allotted to the State under this part. SLIAG-related 
costs for educational services, Phase II outreach, and employment 
discrimination education and outreach are limited to the amount of 
payment that can be made under the Act for those activities, as 
described in Sec.402.11 (e), (k) and (l), respectively. SLIAG-related 
costs exclude: (1) Expenditures by a State or local government for costs 
which are reimbursed or paid for by Federal programs other than SLIAG; 
and (2) program income (as defined in 45 CFR 74.42 or 45 CFR 92.25(b), 
as applicable) received from or on behalf of eligible legalized aliens 
receiving services or benefits for which payment or reimbursement may be 
made under this part.
    State means the 50 States, the District of Columbia, Puerto Rico, 
Guam, and the Virgin Islands of the United States.
    State educational agency means--
    (1) The State board of education or other agency or officer 
primarily responsible for the supervision of public elementary and 
secondary schools in a State. In the absence of this officer or agency, 
it is an officer or agency designated by the Governor or State law; or
    (2) The State board of education or other agency or officer 
primarily responsible for the State supervision of public elementary and 
secondary schools; or if there is a separate State agency or officer 
primarily responsible for supervision of adult education in public 
schools, then that agency or officer may be designated for the purpose 
of the Act by the Governor or by State law. If no agency or officer 
qualifies under the preceding sentence, the term means an appropriate 
agency or officer

[[Page 387]]

designated for the purpose of the Act by the Governor.
    Unexpended funds means the amount by which allotments awarded to a 
State, as determined under Sec. Sec.402.31 and 402.33 of this part, 
exceed the State's SLIAG-related costs, as defined in this part, 
reported in annual reports pursuant to Sec.402.51 and accepted by the 
Department as of March 15, 1995.
    Unreimbursed SLIAG-related costs means the amount by which a State's 
total SLIAG-related costs, as defined in this part, reported in annual 
reports pursuant to Sec.402.51 and accepted by the Department as of 
March 15, 1995, exceed the allotments awarded to a State, as determined 
under Sec. Sec.402.31 and 402.33 of this part.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 19808, Apr. 30, 1991; 56 
FR 21246, May 7, 1991; 59 FR 65726, Dec. 21, 1994]



                         Subpart B_Use of Funds



Sec.402.10  Allowable use of funds.

    (a) Funds provided under Sec.402.31 and 402.33 of this part for a 
fiscal year may be used only with respect to SLIAG-related costs 
incurred in that fiscal year or succeeding fiscal years, except that 
funds provided for FY 1993 and FY 1994 may be used for SLIAG-related 
costs incurred in FY 1990 or succeeding years. Funds provided under 
Sec.402.34 of this part may be used with respect to SLIAG-related 
costs incurred in any fiscal year of the program. Funds may be used, 
subject to Sec. Sec.402.11 and 402.26, for the following activities, 
as defined in this part:
    (1) Public assistance;
    (2) Public health assistance;
    (3) Educational services;
    (4) Employment discrimination education and outreach;
    (5) Phase II outreach;
    (6) SLIAG administrative costs; and
    (7) Program administrative costs.
    (b) Unless specifically prohibited by a statute enacted subsequent 
to November 6, 1986, a State may use SLIAG funds to pay the non-Federal 
share of costs allowable under (a) of this section incurred in providing 
assistance or services to eligible legalized aliens under Federal 
programs that have a matching or cost-sharing requirement, subject to 
the provisions of Sec.402.11(f) of this part.
    (c) [Reserved]
    (d) Except as provided for in Sec.402.11(n), funds awarded under 
this part may be used to reimburse or pay SLIAG-related costs incurred 
prior to the approval of a State's application or amendment to its 
application, pursuant to subpart E of this part, provided that such 
reimbursement or payment is consistent with the Act and this part.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 19808, Apr. 30, 1991; 56 
FR 21246, May 7, 1991; 59 FR 65726, Dec. 21, 1994]



Sec.402.11  Limitations on Use of SLIAG Funds.

    (a) Funds provided under this part may be used only for SLIAG-
reimbursable activities that--
    (1) Meet the definitions of Sec.402.2 of this part; and
    (2) Are otherwise consistent with the rules and procedures governing 
such activities.
    (b) Funds provided under this part may not be used for costs to the 
extent that those costs are otherwise reimbursed or paid for under other 
Federal programs.
    (c) The amount of reimbursement or payment may not exceed 100% of 
SLIAG-related costs, as defined in this part, associated with SLIAG-
reimbursable activites.
    (d) A State must use a minimum of 10 percent of its allotment under 
this part in any fiscal year for costs associated with each of the 
following program categories: public assistance, public health 
assistance, and educational services. In the event that a State does not 
require use of a full 10% in one of the above categories, it must 
allocate the unused portion equally among the remaining categories 
listed in this paragraph.
    (e) Payments for educational services in any fiscal year may not 
exceed the amounts described in (e) (3), (4) and (5) of this section, 
and are subject to the limitations in (e) (1), (2), and (6) of this 
section.
    (1) Payments may be made to a local educational agency in a fiscal 
year for the purpose of providing educational

[[Page 388]]

services to eligible legalized aliens enrolled in elementary or 
secondary school only if 500 eligible legalized aliens meeting the 
conditions in (e)(2) of this section, are enrolled in elementary or 
secondary public or non-public schools in that local educational 
agency's jurisdiction in that fiscal year or if such eligible legalized 
aliens represent at least 3 percent of the total number of students 
enrolled in elementary or secondary public or non-public schools within 
that local educational agency's jurisdiction in that fiscal year.
    (2) In computing payments to local education agencies or to 
providers of educational services described in section 204(c)(3)(C) of 
the Act, State educational agencies may take into account only eligible 
legalized aliens who have been enrolled in elementary or secondary 
school, public or non-public school or in educational activities for 
adults described in Sec.402.2 in the United States for fewer than 
three complete academic years.
    (3) The amount that may be paid in any fiscal year to a local 
educational agency with respect to eligible legalized aliens enrolled in 
elementary and secondary public or non-public school may not exceed an 
amount equal to $500 (less, in States receiving Emergency Immigrant 
Education Act (EIEA) funds, the amount described in (e)(6) of this 
section) multiplied by the number of eligible legalized aliens meeting 
the criteria specified in (e)(2) of this section, who are enrolled in 
public or private non-profit elementary and secondary schools in the 
jurisdiction of that local educational agency in that fiscal year.
    (4) The amount that may be paid in any fiscal year to a local 
educational agency or other provider of educational services for adults 
(who are not enrolled in elementary or secondary school), as described 
in section 204(c)(3)(C) of the Act, may not exceed an amount equal to 
$500 multiplied by the number of eligible legalized aliens meeting the 
criteria in paragraph (e)(2) of this section who receive educational 
services from that provider in that fiscal year.
    (5) In no event may the amount paid to a local education agency or 
other provider of educational services exceed the actual costs of 
providing those services to eligible legalized aliens, as determined in 
accordance with 45 CFR part 74 (for grants awarded in FY 1988) or 45 CFR 
part 92 (for grants awarded in FY 1989 and succeeding fiscal years).
    (6) The maximum amount of payment to a local educational agency with 
respect to eligible legalized aliens enrolled in elementary and 
secondary school will be reduced from the amount described in (e)(3) of 
this section, by an amount equal to the amount of funds received by the 
local educational agency with respect to such eligible legalized aliens 
pursuant to section 606 of the Emergency Immigrant Education Act.
    (f) Funds provided under this part may not be used to provide 
assistance under the programs of financial assistance from which 
eligible legalized aliens are barred by section 245A(h)(1), 210(f), or 
210A(d)(6) of the INA. However, such funds may be used for the State and 
local share of the costs of providing such assistance to eligible 
legalized aliens who are excepted from the bar by section 245A(h) (2) or 
(3), 210(f), or 210A(d)(6) of the INA, provided that such individuals 
are otherwise eligible for benefits under such programs, and that the 
costs of providing those benefits are otherwise allowable under the Act, 
this regulation, and the State's approved application.
    (g) Funds provided under this part shall not be used to perform 
abortions except where the life of the mother would be endangered if the 
fetus were carrier to term.
    (h) Funds provided under this part shall not be used to reimburse or 
pay costs inurred by any public or private entity or any individual, in 
the conduct of a medical examination as required for application for 
adjustment to lawful temporary resident status under 8 CFR 245a.2(i), 8 
CFR 210.2(d), or 8 CFR 210a.6(f).
    (i) Funds provided under this part shall not be used for client 
counselling or any other service which would assume responsibility for 
the adjustment of status of aliens to that of lawful temporary or 
permanent residence. This prohibition includes assisting an

[[Page 389]]

alien to appeal INS decisions or representation of an alien before any 
administrative or judicial body.
    (j) Funds under this part shall not be used to investigate or 
prosecute discrimination complaints beyond initial intake and referral, 
to pay legal fees or other expenses incurred to provide legal counsel to 
a party alleging discrimination, or to represent such parties before any 
administrative or judicial body.
    (k) A State may use funds to make payments for Phase II outreach 
activities, including related program administration, from allotments 
made to it under this part for FY 1989 and succeeding fiscal years. The 
maximum amount that a State may use for this purpose from a fiscal 
year's allotment is the greater of 1% of its allotment for that fiscal 
year or $100,000.
    (l) A State may use funds to make payments for employment 
discrimination education and outreach activities, including related 
program administration, from allotments made to it under this part for 
FY 1989 and succeeding fiscal years. The maximum amount that a State may 
use from a fiscal year's allotment for this purpose is the greater of 1% 
of the State's allotment for that fiscal year or $100,000.
    (m) [Reserved]
    (n)(1) Except as provided for in paragraph (n)(2) of this section, a 
State may use SLIAG funds alloted to it for a fiscal year to reimburse 
or pay only those SLIAG-related costs for employment discrimination 
education and outreach activities which occurred after approval by the 
Department of an application or amendment describing those activities, 
as required by Sec.402.41(d).
    (2) Costs incurred in FY 1990 prior to approval by the Department of 
an application or amendment containing the information required by Sec.
402.41(d), but after December 18, 1989, for reproduction and 
dissemination of public information material certified by the Office of 
the Special Counsel for Immigration-Related Unfair Employment Practices, 
Department of Justice (hereafter, ``Office of the Special Counsel''), 
pursuant to paragraph (o) of this section may be reimbursed with funds 
allotted under this part.
    (o)(1) With respect to employment discrimination education and 
outreach, a State shall not use SLIAG funds to pay for the cost of 
producing or distributing materials prepared for public dissemination 
unless the Office of the Special Counsel has certified that those 
materials meet the criteria in paragraph (o)(2) of this section.
    (2) Certification of materials described in paragraph (o)(1) of this 
section shall consist of a finding by the Office of the Special Counsel 
that information contained in such materials relating to the 
discrimination provision of the Act is legally accurate and that those 
materials include reference to the Office of the Special Counsel as a 
source of information and referral for complaints of discrimination 
based on citizenship status or national origin. Information regarding 
the Office of the Special Counsel shall include its address and 
telephone number, including the toll-free number and toll-free TDD 
number for the hearing impaired. The Office of the Special Counsel, in 
the exercise of discretion, may agree to the deletion of any portion of 
the information referenced in the previous sentence, in those instances 
where space limitations in printed materials, or time limitations in 
electronically recorded materials, make inclusion of all the required 
information impractical.
    (p) Funds provided under this part may be used only for SLIAG-
related costs submitted to the Department pursuant to Sec.402.51 and 
accepted as allowable costs by March 15, 1995.
    (q) Funds made available to a State pursuant to Sec.402.34 shall 
be utilized by the State to reimburse all allowable costs within 90 days 
after such State has received a reallocation of funds from the 
Secretary, but in no event later than July 31, 1995.

[53 FR 7858, Mar. 10, 1991, as amended at 56 FR 19808, Apr. 30, 1991; 56 
FR 21247, May 7, 1991; 59 FR 65726, Dec. 21, 1994]



Sec.402.12  Use of SLIAG Funds for Costs Incurred Prior to October 1, 1987.

    (a) Except as indicated in (b) and (c) of this section, States may 
not use funds provided under this part of costs incurred prior to 
October 1, 1987.
    (b) A State may use funds provided under this part for 
administrative

[[Page 390]]

costs incurred prior to October 1, 1987, but after November 6, 1986, 
that are directly associated with implementation of this part. Such 
costs may include planning, preparing the application, establishing fund 
accounting and reporting systems, data development associated with the 
application, and other costs directly resulting from planning for 
implementation of this part.
    (c) A State may use funds provided under this part for costs 
incurred prior to October 1, 1987, but after November 6, 1986, in 
providing public health assistance to eligible legalized aliens and to 
applicants for lawful temporary residence under sections 210, 210A and 
245A of the INA, in conformity with the provisions of Sec.402.10(a).

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21247, May 7, 1991]



                   Subpart C_Administration of Grants



Sec.402.20  General provisions.

    Except where otherwise required by Federal law, the Department rules 
codified at 45 CFR part 74 (for grants awarded in FY 1988) or 45 CFR 
part 92 (for grants awarded in FY 1989 and succeeding fiscal years), 
relating to the administration of grants, apply to funds awarded under 
this part. A State may, however, apply any or all provisions of part 92 
to FY 1988 SLIAG funds.

[56 FR 19808, Apr. 30, 1991]



Sec.402.21  Fiscal control.

    (a) Fiscal control and accounting procedures must be sufficient to 
permit preparation of reports required by the Act, this regulation, and 
other applicable statutes and regulations.
    (b) States must have accounting procedures in place which allow 
funds provided under this part to be traced from drawdown to allowable 
SLIAG-related costs. Allowability of the amount and purpose of 
expenditures must be established for each recipient of SLIAG funds. 
States must demonstrate that SLIAG-related costs, as defined in this 
part, incurred in SLIAG-reimbursable activities, equal or exceed the 
amount of SLIAG funds expended with respect to costs incurred in those 
activities. Documentation of the method of accounting and appropriate 
supporting information must be available for audit purposes and for 
Federal program reviews. To establish allowability of expenditures, 
States may use methods prescribed in (c) of this section. Alternatively, 
the State may use any other reliable method of cost calculation, subject 
to Federal review.
    (c)(1) For public assistance, States may establish allowability by 
accounting for actual expenditures made to or on behalf of identifiable 
eligible legalized aliens who qualify for and receive assistance and/or 
services from the recipient, or by use of a statistically valid sampling 
of a recipient's public assistance caseload.
    (2) For public health assistance, States may establish allowability 
by accounting for actual expenditures made to or on behalf of 
identifiable eligible legalized aliens, or applicants for lawful 
temporary resident status under sections 210, 210A, or 245A of the INA, 
who qualify for and receive such assistance and/or services, by use of a 
statistically valid sampling of clients in the public health system of 
the State or local government, or by using the ratio of eligible 
legalized aliens in a service population to all members of the relevant 
service population.
    (3) For educational services, States must be able to demonstrate 
that:
    (i) Funds provided under this part were used to provide educational 
services, as defined in this part, to eligible legalized aliens, as 
defined in this part; and,
    (ii) Payments to local educational agencies or other providers of 
educational services, as described in section 204(c)(3)(C) of the Act, 
did not exceed the amounts described in Sec.402.11(e) of this part.
    (4) With respect to Phase II outreach, as defined in this part, a 
State must demonstrate that the costs of activities that provide 
information directly to specific individuals are attributable only to 
lawful temporary residents under sections 210, 210A, or 245A of the INA, 
and applicants for such status whose applications were pending with the 
Immigration and Naturalization Service at the time information is 
provided. For Phase II outreach activities

[[Page 391]]

that do not involve the provision of information directly to specific 
individuals, States must demonstrate that such activities are targeted 
predominantly to or intended primarily for lawful temporary residents 
under sections 210, 210A, or 245A of the INA or applicants for such 
status whose applications are pending with the Immigration and 
Naturalization Service at the time information is provided. The State 
must demonstrate that the amount of any fiscal year's allotment used for 
this purpose did not exceed the amount described in Sec.402.11(k) and 
was consistent with the limitations of Sec.402.11(i).
    (5) With respect to employment discrimination education and 
outreach, as defined in this part, the State must demonstrate that funds 
were expended only for activities described in the State's approved 
application pursuant to Sec.402.41(d) and the limitations of Sec.
402.11 (i), (n), and (o) and that the amount of any fiscal year's 
allotment used for this purpose did not exceed the amount described in 
Sec.402.11(1).
    (6)(i) For program administrative costs, as defined in this part, a 
State may establish allowability by use of the proportion of eligible 
legalized aliens provided assistance and/or services allowable under 
this part by a recipient, as defined in this part, relative to all 
persons provided such assistance and/or services; by use of the 
proportion of program or service costs actually incurred in providing 
assistance and/or services allowable under this part by a recipient, 
relative to all costs of providing the same assistance and/or services 
allowable under this part by the recipient; or by use of such other 
basis as will document that administrative costs incurred in providing 
such assistance and/or services and reimbursed under this part are 
allowable, allocable to SLIAG, and reasonable.
    (ii) Consistent with section 604 of the Emergency Immigrant 
Education Act, of the amount paid to a State educational agency for 
educational services, only 1.5 percent may be used for administrative 
costs incurred by the State educational agency in carrying out its 
function under this part.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21247, May 7, 1991]



Sec.402.22  [Reserved]



Sec.402.23  Repayment.

    The Department will order a State to repay amounts found not to have 
been expended in accordance with Federal law, regulations, the State's 
approved application, or terms of the State's grant. If a State refuses 
to repay such amounts, the Department may offset the amount against any 
other amount to which the State is or may become entitled under this 
part.



Sec.402.24  Withholding.

    After notice and opportunity for a hearing, the Secretary may 
withhold payment of funds to any State which is not using its allotment 
in accordance with the Act, these regulations, 45 CFR part 74 (for 
grants awarded in FY 1988) or 45 CFR part 92 (for grants awarded in FY 
1989 and succeeding fiscal years), and terms of the grant award.

[56 FR 19808, Apr. 30, 1991]



Sec.402.25  Appeals.

    Appeals under this Subpart will be subject to 45 CFR part 16, 
Procedures of the Departmental Grant Appeals Board.



Sec.402.26  Time period for obligation and expenditure of grant funds.

    (a) Any amount awarded to a State for a fiscal year and remaining 
unobligated at the end of such year shall remain available to the State 
for obligation in subsequent fiscal years, but not after September 30, 
1994. The funding period of a SLIAG grant begins on October 1 of the 
Federal fiscal year for which the allotment is made and ends on 
September 30, 1994.
    (b) Obligations by the State of funds awarded under Sec. Sec.
402.31 and 402.33 must be liquidated within the time limit set by 45 CFR 
92.23(b). This time limit will not be extended. The time limit 
established by 45 CFR 92.23(b) does not apply to funds awarded under 
Sec.402.34.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 19808, Apr. 30, 1991; 59 
FR 65727, Dec. 21, 1994]

[[Page 392]]



                       Subpart D_State Allocations



Sec.402.30  Basis of awards.

    The Secretary will award funds in a fiscal year under Sec.402.31 
or Sec.402.33 to States with approved applications for that fiscal 
year in accordance with the apportionment of funds from the Office of 
Management and Budget. The Secretary will award funds under Sec.402.34 
to States whose annual reports submitted pursuant to Sec.402.51 
establish that their allowable SLIAG-related costs exceed the total of 
their allotments, as determined under Sec. Sec.402.31 and 402.33. The 
grant award constitutes the authority to draw and expend funds for the 
purposes set forth in the Act and this regulation.

[53 FR 7858, Mar. 10, 1988, as amended at 59 FR 65727, Dec. 21, 1994]



Sec.402.31  Determination of allocations.

    (a) Allocation formula. Allocations will be computed according to a 
formula using the following factors and weights:
    (1) 50 percent based on the State's eligible legalized alien 
population, with 49 percent based upon the number of eligible legalized 
aliens in a State relative to the number of such aliens in all States, 
and 1 percent to States which have higher-than-average ratios of 
eligible legalized aliens to total population relative to the average 
for all States, based on the proportional number of such aliens; and
    (2) 50 percent based on the ratio of SLIAG-related costs in a State 
to the total of all such costs in all States.
    (b) Calculation of allocations. (1) Each time the Department 
calculates State allocations, it will use the best data then available 
to the Secretary on the distribution of eligible legalized aliens by 
State.
    (2) For all years except fiscal years 1993 and 1994, the Department 
will determine each State's SLIAG-related costs to be included in the 
computation of its allocation for a fiscal year by adding to the sum of 
SLIAG-related costs reported for all previous fiscal years by that 
State, pursuant to Sec.402.51(e) (1) and (2), the total amount of 
estimated SLIAG-related costs included in the State's approved 
application for that fiscal year, pursuant to Sec.402.41(c) (1) and 
(2). For fiscal years 1993 and 1994, the Department will add to the 
amount of estimated SLIAG-related costs included in the State's approved 
applications for fiscal years 1993 and 1994, respectively, the sum of 
SLIAG-related costs for all previous years ending with FY 1991 (for FY 
1993 applications) or FY 1992 (for FY 1994 applications), and the first 
and second quarters of FY 1992 (for FY 1993 applications) or FY 1993 
(for FY 1994 applications), pursuant to Sec.402.52(e)(4). In the event 
that a State has not submitted an approved report for a fiscal year, the 
Department will include no costs for that fiscal year in its 
calculation.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21248, May 7, 1991; 57 
FR 19386, May 6, 1992; 58 FR 31913, June 7, 1993; 59 FR 65727, Dec. 21, 
1994]



Sec.402.32  Determination of state allotments.

    Except as noted below, a State's allotment is the difference between 
the amount determined under Sec.402.31(b) of this regulation and the 
cumulative amount previously allotted to the State. In the event that 
the amount determined under Sec.402.31(b) is less than the cumulative 
amount previously allotted to a State, that State's allotment will be 
zero. The allotments of the remaining States would be calculated by 
multiplying the difference between the amount determined under Sec.
402.31(b) of this regulation and the cumulative amount previously 
allotted to the State by the ratio of the amount of funds available for 
grants to States to the sum of the differences between the amounts 
determined under Sec.402.31(b) and the amounts previously awarded to 
those States.

[56 FR 21248, May 7, 1991]



Sec.402.33  Allotment of excess funds.

    If a State fails to qualify for an allotment in a particular fiscal 
year because it did not submit an approvable application by the deadline 
established in Sec.402.43 of this part, or is not allotted its 
designated allocation amount because it indicated in its application 
that it does not intend to use, in the fiscal year for which the 
application is

[[Page 393]]

made or in any succeeding fiscal year before FY 1995, the full amount of 
its allocation, funds which would otherwise have been allotted to the 
State in that fiscal year shall be allotted among the remaining States 
submitting timely approved applications in proportion to the amount that 
otherwise would have been allotted to such State in that fiscal year.

[56 FR 19808, Apr. 30, 1991]



Sec.402.34  Allocation of unexpended funds.

    (a) Any unexpended funds, as defined in this part, from allotments 
awarded to States under Sec. Sec.402.31 and 402.33 of this part, will 
be allocated to States with unreimbursed SLIAG-related costs, as defined 
in this part.
    (b) To determine the allocations, the ratio of each State's 
unreimbursed SLIAG-related costs to the total of all such costs in all 
States will be calculated. The ratio for each State with unreimbursed 
SLIAG-related costs will be multiplied by total unexpended funds to 
determine the allocation for each State. The amount allotted to a State 
will be the amount of the State's allocation under this section or the 
amount of the State's unreimbursed SLIAG-related costs, whichever is 
less.

[59 FR 65727, Dec. 21, 1994]



                      Subpart E_State Applications



Sec.402.40  General.

    In order to be eligible for funds available under Sec. Sec.402.31 
and 402.33 of this part in a fiscal year, a State must submit an annual 
application. A State's application must be approved by the Secretary 
prior to the award of funds to that State. In order to be eligible for 
funds under Sec.402.34 of this part, a State must submit annual 
reports pursuant to Sec.402.51 which establish that the State has 
incurred SLIAG-related costs in excess of the amount of the allotments 
it received under Sec. Sec.402.31 and 402.33 of this part.

[53 FR 7858, Mar. 10, 1988, as amended at 59 FR 65727, Dec. 21, 1994]



Sec.402.41  Application content.

    A State application must:
    (a) Contain certifications by the chief executive officer or an 
individual specifically designated to make such certifications on behalf 
of the chief executive officer that, notwithstanding other contents of 
the application, the State assures that:
    (1) Funds allotted to the State will be used only to carry out the 
purposes described in the Act and this part.
    (2) The State will provide a fair method for the allocation of funds 
among State and local agencies (as determined by the State) in 
accordance with the information in the application as required under (b) 
and (c) of this section and in accordance with the provisions of Sec.
402.11(d) of this part, which sets forth minimum funding levels for 
program categories.
    (3) Fiscal control and accounting procedures used in the 
administration of SLIAG funds will be established that are adequate to 
meet the requirements established by the Act and this regulation.
    (4) The State will comply with the prohibitions against 
discrimination on the basis of age under the Age Discrimination Act of 
1975, on the basis of handicap under section 504 of the Rehabilitation 
Act of 1973, on the basis of sex under title IX of the Education 
Amendments of 1972, on the basis of race, color, or national origin 
under title VI of the Civil Rights Act of 1964, and on the basis of sex 
or religion under section 204(h)(1)(B) of the Immigration Reform and 
Control Act of 1986.
    (b) Contain information on the number of eligible legalized aliens 
residing in the State. A State may either (1) adopt as its official 
State-level estimate the estimate of the State's number of eligible 
legalized aliens provided by the Department, or (2) provide its own 
estimate, including detailed information on the method and data used in 
deriving the estimate. If a State has previously provided this 
information to the Department, it need not be included in the 
application unless the information has changed.
    (c) Contain an estimate of likely SLIAG-related costs for the fiscal 
year for which application is being made for each program or activity in 
which SLIAG-related costs will be incurred.

[[Page 394]]

Programs and activities must be identified by the purposes listed in 
Sec.402.10(a). Such estimates for FY 1988 should include, as a 
discrete subset, costs incurred in FY 1987, pursuant to Sec.402.12.
    (d) Contain the following information pertaining to the estimates 
required by paragraph (c) of this section (the application must include 
sufficient detail to permit assessment by the Department of the 
reasonableness of such estimates and the allowability of such costs 
under the Act and this part):
    (1)(i) Descriptions of the programs and activities for which SLIAG-
related costs will be incurred; and,
    (ii) If a State elects to use its allotment for employment 
discrimination education and outreach, a description of the State's 
planned education and outreach activities, including: descriptions of 
the kinds of government or private agencies or other entities, if any, 
through which these activities will be conducted; brief descriptions of 
the targeted audience(s) for these activities; and, preproduction copies 
or the text of any material intended for distribution to the public to 
be produced or disseminated with SLIAG funds, if available at the time 
the application is submitted.
    (2) Descriptions of the methodologies used to determine SLIAG-
related cost. This description is to include (i) the methodology used in 
determining the proportion (or actual number) of eligible legalized 
aliens who are likely to participate in or benefit from the program or 
service, and (ii) a description of how a unit or other measure of the 
cost of providing services or benefits was calculated, or, if the 
estimate is based on actual cost data, a description of how the data 
were obtained. For SLIAG administrative costs, Phase II outreach, and 
employment discrimination education and outreach, the descriptions must 
instead include the basis for the estimate of SLIAG-related costs, as 
defined in this part.
    (e) Contain information on the criteria for and administrative 
methods of disbursing funds received under this part.
    (f) Designate a single point of contact (SPOC) in the State 
responsible for securing and submitting information required by the Act 
and this regulation and provide the name, title, mailing address, and 
telephone number of such official. If the grantee agency is different 
from the SPOC, also provide the name, title, mailing address, and 
telephone number of the official in that agency responsible for State 
administration of funds available under this part. In either case, 
provide the employer identification number of the grantee agency. If the 
State elects to use SLIAG funds for employment discrimination education 
and outreach, it must also designate in its application a contact person 
for this activity, if different from the single point of contact.

[53 FR 7858, May 7, 1991, as amended at 56 FR 21248, May 7, 1991; 56 FR 
49707, Oct. 1, 1991]



Sec.402.42  Application format.

    A State may determine the format of its application as long as it 
contains all the information required by Sec.402.41.



Sec.402.43  Application deadline.

    (a) An application from a State for SLIAG funds for any Federal 
fiscal year except fiscal years 1993 and 1994 must be received by the 
Department by October 1 of that fiscal year. Applications for fiscal 
years 1993 and 1994 must be received by July 1, 1992, and July 1, 1993, 
respectively. If a State fails to submit an application by this date, 
funds which it may otherwise have been eligible to receive shall be 
distributed among States submitting timely approved applications in 
accordance with Sec.402.33 of this part.
    (b) In order to receive funds under this part, a State's application 
for any fiscal year except fiscal years 1993 and 1994 must be approvable 
by the Secretary by December 15 of that fiscal year. Applications for 
fiscal years 1993 and 1994 must be approvable by the Secretary by 
September 15, 1992, and September 15, 1993, respectively. This may 
necessitate a State's providing clarification, revision, or additional 
material, as required, to render its application approvable by the 
Secretary. If a State fails to render its application approvable by the 
Secretary by these dates, funds which it may otherwise have been 
eligible to receive shall be distributed among States which have

[[Page 395]]

submitted approvable applications in accordance with Sec.402.32 of 
this part.

(Approved by the Office of Management and Budget under control number 
0970-0079)

[53 FR 7858, Mar. 10, 1988, as amended at 54 FR 23984, June 5, 1989; 55 
FR 26207, June 27, 1990; 56 FR 21248, May 7, 1991; 57 FR 19386, May 6, 
1992; 58 FR 31913, June 7, 1993]



Sec.402.44  Basis for approval.

    (a) The Department will review each State's application to ensure 
that it contains all of the required assurances and information and 
otherwise is consistent with the Act and this part.
    (b) The Department will assess the reasonableness of each State's 
estimates of SLIAG-related costs, as required by Sec.402.41(c) (1) and 
(2), based on the following:
    (1) Are the activities for which estimates are included in the 
application allowable under the Act and this part?
    (2) Are the rates of participation by eligible legalized aliens in 
the activities for which estimates of SLIAG-related costs are included 
in the application and other assumptions underlying the cost estimates 
based on reliable empirical data?
    (3) To what extent are the estimates based on actual costs incurred? 
Are actual costs based on methodologies described in this part or other 
methodologies likely to result in valid measures of SLIAG-related costs?
    (4) Do current estimates appear to be consistent with past 
estimates, known actual costs pursuant to Sec.402.41(c)(2), and 
current INS eligible legalized alien population data?
    (5) Are revised estimates a result (all or in part) of changes in 
program activities?
    (c) The Department will notify the State that (1) its application 
has been approved or (2) its application has been disapproved, together 
with the reasons for disapproval.
    (d)(1) The Department will forward to the Office of Special Counsel 
information provided by a State pursuant to Sec.402.41(d).
    (2) The Office of the Special Counsel will review information 
forwarded to it by the Department pursuant to paragraph (d) (1) of this 
section to determine whether the activities described therein conflict 
with or unnecessarily duplicate other employment discrimination 
education and outreach efforts. Certification to the Department by the 
Office of the Special Counsel that the State's submission meets this 
criterion is a prerequisite for approval by the Department.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21248, May 7, 1991]



Sec.402.45  Amendments to applications.

    (a)(1) If, during the course of a fiscal year, a State adds a 
program or activity for which it intends to claim reimbursement or make 
payment in that fiscal year, it must submit an amendment (containing 
appropriate information pursuant to Sec.402.41(c)) to its approved 
application for that fiscal year prior to the due date for reports 
required by Sec.402.51 of this part.
    (2) If a State plans to initiate employment discrimination education 
and outreach activities not described in its application pursuant to 
Sec.402.41(d), it must submit an application amendment, which shall be 
reviewed in accordance with procedures described in Sec.402.41(d) of 
this part. The Department's approval of such an amendment is a 
prerequisite for the initiation of such new activities, except as 
provided for in Sec.402.11(n) (2).
    (b) Except as provided for in Sec.402.11(k) and (n), a State may 
use SLIAG funds received for a fiscal year to reimburse or pay SLIAG 
related costs for programs or activities described in paragraph (a) of 
this section retroactive to the date the activity began, but no earlier 
than the first day of the fiscal year and only to the extent described 
in Sec.402.10(d), except that funds received in FY 1992, if any, may 
be used for costs incurred on or after October 1, 1989. Costs incurred 
prior to October 1, 1987, are allowable only to the extent described in 
Sec.402.12.

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21249, May 7, 1991]



                  Subpart F_Recordkeeping and Reporting



Sec.402.50  Recordkeeping.

    A State must provide for the maintenance of such records as are 
necessary:

[[Page 396]]

    (a) To meet the requirements of the Act and Department regulations 
relating to retention of and access to records.
    (b) To allow the State to provide to the Department (1) an accurate 
description of its activities undertaken with SLIAG funds, and (2) a 
complete record of the purposes for which SLIAG funds were spent, and of 
the recipients of such funds; and
    (c) To allow the Department and auditors of the State to determine 
the extent to which SLIAG funds were expended consistent with the Act 
and this regulation.



Sec.402.51  Reporting.

    (a)(1) After the end of each Federal fiscal year through FY 1994 for 
which it received or during which it obligated or expended SLIAG funds 
and by the due date indicated below, a State must submit annual reports 
containing the information identified in (c) and (e) of this section. 
The reports are due no later than 90 days after the end of a Federal 
fiscal year.
    (2) A State which receives funds pursuant to Sec. Sec.402.31 and 
402.33 and which expends funds pursuant to Sec.402.26(b) must submit a 
report containing the information identified in paragraph (e) of this 
section. The report is due no later than December 29, 1994.
    (b)(1) Failure to submit the annual report required in (a) of this 
section by the deadline, without prior written permission from the 
Secretary, constitutes a basis for withholding of SLIAG funds.
    (2) Failure by a State to submit the required information prior to 
the calculation of allocations pursuant to Subpart D will result in the 
Secretary's including no SLIAG-related costs for the fiscal year for 
that State in the calculation of State allocations.
    (c) A State's annual report must provide information on the status 
of each fiscal year's funds, as of September 30, for the fiscal year for 
funds received under Sec. Sec.402.31 and 402.33, including:
    (1) Identification of the amount obligated and the amount expended 
by the State grantee agency;
    (2) Identification of any amount remaining unobligated at the end of 
the fiscal year which the State intends to carry over to succeeding 
fiscal years; and,
    (3) Identification of any amount remaining unobligated at the end of 
the fiscal year which the State does not desire to carry over to the 
succeeding fiscal year.
    (d) A State must use SF-269 in its reporting under paragraph (c) of 
this section, but it may determine the format of its annual report 
content under paragraph (e) of this section.
    (e)(1) For all years except fiscal years 1992 and 1993, a State's 
annual report must also provide the actual SLIAG-related costs incurred 
during the fiscal year. The report must provide, for each program or 
activity identified in the State's application, the amount of SLIAG-
related costs, as defined in this part, incurred in that program or 
activity, identified as public assistance, public health assistance, 
educational services, Phase II outreach, employment discrimination 
education and outreach, and SLIAG administrative costs, as defined in 
this part, the amount of SLIAG funds obligated for that program or 
activity, and the time period for which the funds were obligated.
    (2) The report must contain a description of the methodology used to 
determine actual SLIAG-related costs, if different from the description 
provided in the State's application pursuant to Sec.402.41 (d) (2) of 
this part.
    (3) Federal and State costs of providing assistance under a State 
plan approved under title XIX of the Social Security Act to aliens whose 
status has been adjusted under sections 245A and 210A of the INA by 
virtue of the exceptions to the bar to Medicaid eligibility (sections 
245A (h) (2) and (3) of the INA) must be shown separately in States' 
reports.
    (4) For fiscal years 1992 and 1993, a State must report actual 
SLIAG-related costs, pursuant to paragraphs (e) (1), (2) and (3) of this 
section, for the first and second quarters, along with its application 
for SLIAG funding for fiscal years 1993 and 1994, respectively, in 
accordance with Sec.402.43(a) of this

[[Page 397]]

part, and for the third and fourth quarters in accordance with paragraph 
(a) of this section.

(Approved by the Office of Management and Budget under control number 
0970-0079)

[53 FR 7858, Mar. 10, 1988, as amended at 56 FR 21249, May 7, 1991; 57 
FR 19386, May 6, 1992; 58 FR 31913, June 7, 1993; 59 FR 65727, Dec. 21, 
1994]



PART 403_REVIEW OF REGULATIONS (Eff. 3-22-22)--Table of Contents



Sec.
403.1 Retrospective review of existing regulations.
403.2-403.5 [Reserved]

    Authority: 5 U.S.C. 301; 5 U.S.C. 610; 6 U.S.C. 279; 8 U.S.C. 
1103(a)(3); 8 U.S.C. 1232; 8 U.S.C. 1255a note; 8 U.S.C. 1522 note; 8 
U.S.C. 1522(a)(9); 42 U.S.C. 15607(d).

    Source: 86 FR 5760, Jan. 19, 2021, unless otherwise noted.

    Effective Date Note: At 86 FR 5760, Jan. 19, 2021, part 403 was 
added, and at 86 FR 15404, Mar. 23, 2021, its effective date was delayed 
until Mar. 22, 2022.



Sec.403.1  Retrospective review of existing regulations.

    (a) This section applies to and shall be deemed to amend all 
regulations issued by the Secretary or his delegates or sub-delegates in 
this chapter.
    (b) For purposes of this section,
    (1) Assess shall refer to a determination by the Department, in 
consultation with other Federal agencies as appropriate, as to whether 
the Sections issued as part of the same rulemaking (and any amendments 
or additions that may have been added thereafter) currently have a 
significant economic impact upon a substantial number of small entities.
    (2) Review shall refer to a process conducted by the Department, in 
consultation with other Federal agencies as appropriate, the purpose of 
which shall be to determine whether Sections that were issued as part of 
the same rulemaking (and any amendments or additions that may have been 
issued thereafter) should be continued without change, or should be 
amended or rescinded, consistent with the stated objectives of 
applicable statutes, to minimize any significant economic impact of the 
Sections upon a substantial number of small entities.
    (3) Section (when capitalized) shall mean a section of the Code of 
Federal Regulations. For example, 42 CFR 2.13 is a Section, and 42 CFR 
2.14 is another Section (see 1 CFR 21.11).
    (4) Year of the Section's promulgation shall mean the year the 
Section first became effective, irrespective of whether it was 
subsequently amended.
    (5) Significant economic impact upon a substantial number of small 
entities shall have the meaning of that term in section 610 of title 5 
of the United States Code.
    (c)(1) Unless a Section expires earlier or is rescinded, all 
Sections issued by the Secretary or his delegates or sub-delegates in 
this chapter shall expire at the end of:
    (i) Five calendar years after the year that this section first 
becomes effective;
    (ii) Ten calendar years after the year of the Section's 
promulgation; or
    (iii) Ten calendar years after the last year in which the Department 
assessed and (if review of the Section is required pursuant to paragraph 
(d) of this section) reviewed the Section, whichever is latest.
    (2) The last year in which the Department assessed and (if review of 
the Section is required) reviewed the Section shall be the year during 
which the findings of the assessment and (if required) the review of a 
Section are published in the Federal Register pursuant to paragraph (f) 
of this section.
    (3)(i) If, prior to the expiration of a Section under paragraph 
(c)(1) of this section, the Secretary makes a written determination that 
the public interest requires continuation of the Section in force beyond 
the date on which the Section would otherwise expire under paragraph 
(c)(1), the Secretary may continue the Section in force one time for a 
period stated in the determination, which shall not exceed one calendar 
year.
    (ii) The Department shall promptly publish in the Federal Register 
any written determination under paragraph (c)(3)(i) of this section.
    (iii) The authority of the Secretary under paragraph (c)(3)(i) of 
this section is not delegable and may be exercised

[[Page 398]]

only by the Secretary or, when the office of the Secretary is vacant or 
the Secretary has become unable to perform the functions and duties of 
the office of the Secretary, by the individual acting as Secretary in 
accordance with the law.
    (d) The Department is required to review those rulemakings (and any 
amendments or additions that may have been added thereafter) that the 
Department assesses have a significant economic impact upon a 
substantial number of small entities. In reviewing rulemakings to 
minimize any significant economic impact on a substantial number of 
small entities in a manner consistent with the stated objectives of 
applicable statutes, the Department's review shall consider the 
following factors:
    (1) The continued need for the rulemaking, consideration of which 
shall include but not be limited to the extent to which the rulemaking 
defines terms or sets standards used in or otherwise applicable to other 
Federal rules;
    (2) The nature of complaints or comments received concerning the 
rulemaking from the public;
    (3) The complexity of the rulemaking;
    (4) The extent to which the rulemaking overlaps, duplicates or 
conflicts with other Federal rules, and, to the extent feasible, with 
State and local governmental rules;
    (5) The degree to which technology, economic conditions, or other 
factors have changed in the area affected by the rulemaking since the 
rulemaking was promulgated or the last time the rulemaking was reviewed 
by the Department; and
    (6) Whether the rulemaking complies with applicable law.
    (e) If the review concludes the Section should be amended or 
rescinded, the Department shall have two years from the date that the 
findings of the review are published in the Federal Register pursuant to 
paragraph (f) of this section to amend or rescind the Section. If the 
Secretary determines that completion of the amendment or rescission is 
not feasible by the established date, he shall so certify in a statement 
published in the Federal Register and may extend the completion date by 
one year at a time, no more than three times, for a total of not more 
than five years (inclusive of the initial two-year period).
    (f) The results of all assessments and reviews conducted in a 
calendar year, including the full underlying analyses and data used to 
support the results (subject to any applicable privilege, protections 
for confidential business information, or explicit legal prohibition on 
disclosure), shall be published in a single document in the Federal 
Register during that calendar year. The document shall be organized in a 
manner that enables both the Department and the public to readily 
determine which assessments and reviews were conducted during that 
calendar year. The document shall also specify the year by which the 
next assessment (and, if required, the next review) of the Section shall 
be completed.
    (g) Paragraph (c) of this section shall not apply to:
    (1) Sections that are prescribed by Federal law, such that the 
Department exercises no discretion as to whether to promulgate the 
Section and as to what is prescribed by the Section. For Sections 
described in this paragraph (g)(1) that are adopted after the effective 
date of this section, the Federal law described in this paragraph (g)(1) 
shall be cited in the notice of adoption.
    (2) Sections whose expiration pursuant to this section would violate 
any other Federal law.
    (3) This section.
    (4) Sections that involve a military or foreign affairs function of 
the United States.
    (5) Sections addressed solely to internal agency management or 
personnel matters.
    (6) Sections related solely to Federal Government procurement.
    (7) Sections that were issued jointly with other Federal agencies, 
or that were issued in consultation with other agencies because of a 
legal requirement to consult with that other agency.
    (h) When the Department commences the process of performing an 
assessment or review, it shall state on a Department-managed website the 
Section(s) whose assessment or review it is commencing. It shall also 
announce

[[Page 399]]

once a month in the Federal Register those new assessments or reviews 
that it has commenced in the last month. The Department will create a 
docket on Regulations.gov for each assessment or review that the 
Department is conducting. The public will be able to submit comments to 
the dockets of each rulemaking being assessed or reviewed. Each docket 
shall specify the date by which comments must be received. There shall 
also be a general docket on Regulations.gov where the public can submit 
comments requesting that the Department assess or review a Section.
    (i) Any provision of this section held to be invalid or 
unenforceable by its terms, or as applied to any person or circumstance, 
shall be construed so as to continue to give the maximum effect to the 
provision permitted by law, unless such holding shall be one of utter 
invalidity or unenforceability, in which event the provision shall be 
severable from this section and shall not affect the remainder thereof 
or the application of the provision to persons not similarly situated or 
to dissimilar circumstances.



Sec. Sec.403.2-403.5  [Reserved]

                        PARTS 404	409 [RESERVED]



PART 410_CARE AND PLACEMENT OF UNACCOMPANIED ALIEN CHILDREN--
Table of Contents



      Subpart A_Care and Placement of Unaccompanied Alien Children

Sec.
410.100 Scope of this part.
410.101 Definitions.
410.102 ORR care and placement of unaccompanied alien children.

   Subpart B_Determining the Placement of an Unaccompanied Alien Child

410.200 Purpose of this subpart.
410.201 Considerations generally applicable to the placement of an 
          unaccompanied alien child.
410.202 Placement of an unaccompanied alien child in a licensed program.
410.203 Criteria for placing an unaccompanied alien child in a secure 
          facility.
410.204 Considerations when determining whether an unaccompanied alien 
          child is an escape risk.
410.205 Applicability of Sec.410.203 for placement in a secure 
          facility.
410.206 Information for unaccompanied alien children concerning the 
          reasons for his or her placement in a secure or staff secure 
          facility.
410.207 Custody of an unaccompanied alien child placed pursuant to this 
          subpart.
410.208 Special needs minors.
410.209 Procedures during an emergency or influx.

    Subpart C_Releasing an Unaccompanied Alien Child From ORR Custody

410.300 Purpose of this subpart.
410.301 Sponsors to whom ORR releases an unaccompanied alien child.
410.302 Sponsor suitability assessment process requirements leading to 
          release of an unaccompanied alien child from ORR custody to a 
          sponsor.

                       Subpart D_Licensed Programs

410.400 Purpose of this subpart.
410.401 Applicability of this subpart.
410.402 Minimum standards applicable to licensed programs.
410.403 Ensuring that licensed programs are providing services as 
          required by the regulations in this part.

        Subpart E_Transportation of an Unaccompanied Alien Child

410.500 Conducting transportation for an unaccompanied alien child in 
          ORR's custody.

           Subpart F_Transfer of an Unaccompanied Alien Child

410.600 Principles applicable to transfer of an unaccompanied alien 
          child.

                      Subpart G_Age Determinations

410.700 Conducting age determinations.
410.701 Treatment of an individual who appears to be an adult.

       Subpart H_Unaccompanied Alien Children's Objections to ORR 
                             Determinations

410.800 Purpose of this subpart.
410.801 Procedures.
410.810 Hearings.

    Authority: 6 U.S.C. 279, 8 U.S.C. 1103(a)(3), 8 U.S.C. 1232.

    Source: 84 FR 44530, Aug. 23, 2019, unless otherwise noted.

[[Page 400]]



      Subpart A_Care and Placement of Unaccompanied Alien Children



Sec.410.100  Scope of this part.

    This part governs those aspects of the care, custody, and placement 
of unaccompanied alien children (UACs) agreed to in the settlement 
agreement reached in Jenny Lisette Flores v. Janet Reno, Attorney 
General of the United States, Case No. CV 85-4544-RJK (C.D. Cal. 1996). 
ORR operates the UAC program as authorized by section 462 of the 
Homeland Security Act of 2002, Public Law 107-296, 6 U.S.C. 279, and 
section 235 of the William Wilberforce Trafficking Victims Protection 
Reauthorization Act of 2008 (TVPRA), Public Law 110-457, 8 U.S.C. 1232. 
This part does not govern or describe the entire program.



Sec.410.101  Definitions.

    DHS means the Department of Homeland Security.
    Director means the Director of the Office of Refugee Resettlement 
(ORR), Administration for Children and Families, Department of Health 
and Human Services.
    Emergency means an act or event (including, but not limited to, a 
natural disaster, facility fire, civil disturbance, or medical or public 
health concerns at one or more facilities) that prevents timely 
transport or placement of UACs, or impacts other conditions provided by 
this part.
    Escape risk means there is a serious risk that an unaccompanied 
alien child (UAC) will attempt to escape from custody.
    Influx means a situation in which there are, at any given time, more 
than 130 minors or UACs eligible for placement in a licensed facility 
under this part or corresponding provisions of DHS regulations, 
including those who have been so placed or are awaiting such placement.
    Licensed program means any program, agency, or organization that is 
licensed by an appropriate State agency to provide residential, group, 
or foster care services for dependent children, including a program 
operating group homes, foster homes, or facilities for special needs 
UAC. A licensed program must meet the standards set forth in Sec.
410.402. All homes and facilities operated by a licensed program, 
including facilities for special needs minors, are non-secure as 
required under State law. However, a facility for special needs minors 
may maintain that level of security permitted under State law which is 
necessary for the protection of a UAC or others in appropriate 
circumstances, e.g., cases in which a UAC has drug or alcohol problems 
or is mentally ill.
    ORR means the Office of Refugee Resettlement, Administration for 
Children and Families, Department of Health and Human Services.
    Secure facility means a State or county juvenile detention facility 
or a secure ORR detention facility, or a facility with an ORR contract 
or cooperative agreement having separate accommodations for minors. A 
secure facility does not need to meet the requirements of Sec.410.402, 
and is not defined as a ``licensed program'' or ``shelter'' under this 
part.
    Shelter means a licensed program that meets the standards set forth 
in Sec.410.402.
    Special needs minor means a UAC whose mental and/or physical 
condition requires special services and treatment by staff. A UAC may 
have special needs due to drug or alcohol abuse, serious emotional 
disturbance, mental illness, intellectual disability, or a physical 
condition or chronic illness that requires special services or 
treatment. A UAC who has suffered serious neglect or abuse may be 
considered a special needs minor if the UAC requires special services or 
treatment as a result of neglect or abuse.
    Sponsor, also referred to as custodian, means an individual (or 
entity) to whom ORR releases a UAC out of ORR custody.
    Staff secure facility means a facility that is operated by a 
program, agency or organization licensed by an appropriate State agency 
and that meets the standards for licensed programs set forth in Sec.
410.402. A staff secure facility is designed for a UAC who requires 
close supervision but does not need placement in a secure facility. It 
provides 24-hour awake supervision, custody, care, and treatment. It 
maintains

[[Page 401]]

stricter security measures, such as intensive staff supervision, than a 
shelter in order to control problem behavior and to prevent escape. A 
staff secure facility may have a secure perimeter but is not equipped 
internally with major restraining construction or procedures typically 
associated with correctional facilities.
    Unaccompanied alien child (UAC) means:
    (1) An individual who: Has no lawful immigration status in the 
United States; has not attained 18 years of age; and with respect to 
whom:
    (i) There is no parent or legal guardian in the United States; or
    (ii) No parent or legal guardian in the United States is available 
to provide care and physical custody.
    (2) When an alien previously determined to have been a UAC has 
reached the age of 18, when a parent or legal guardian in the United 
States is available to provide care and physical custody for such an 
alien, or when such alien has obtained lawful immigration status, the 
alien is no longer a UAC. An alien who is no longer a UAC is not 
eligible to receive legal protections limited to UACs.



Sec.410.102  ORR care and placement of unaccompanied alien children.

    (a) ORR coordinates and implements the care and placement of UAC who 
are in ORR custody by reason of their immigration status.
    (b) For all UACs in ORR custody, DHS and DOJ (Department of Justice) 
handle other matters, including immigration benefits and enforcement 
matters, as set forth in their respective statutes, regulations and 
other authorities.
    (c) ORR shall hold UACs in facilities that are safe and sanitary and 
that are consistent with ORR's concern for the particular vulnerability 
of minors.
    (d) Within all placements, UACs shall be treated with dignity, 
respect, and special concern for their particular vulnerability.



   Subpart B_Determining the Placement of an Unaccompanied Alien Child



Sec.410.200  Purpose of this subpart.

    This subpart sets forth what ORR considers when placing a UAC in a 
particular ORR facility, in accordance with the Flores settlement 
agreement.



Sec.410.201  Considerations generally applicable to the placement of 
an unaccompanied alien child.

    (a) ORR places each UAC in the least restrictive setting that is in 
the best interest of the child and appropriate to the UAC's age and 
special needs, provided that such setting is consistent with its 
interests to ensure the UAC's timely appearance before DHS and the 
immigration courts and to protect the UAC's well-being and that of 
others.
    (b) ORR separates UACs from delinquent offenders.
    (c) ORR makes reasonable efforts to provide placements in those 
geographical areas where DHS apprehends the majority of UAC.
    (d) Facilities where ORR places UACs will provide access to toilets 
and sinks, drinking water and food as appropriate, medical assistance if 
a UAC is in need of emergency services, adequate temperature control and 
ventilation, adequate supervision to protect UAC from others, and 
contact with family members who were arrested with the minor.
    (e) If there is no appropriate licensed program immediately 
available for placement of a UAC pursuant to this subpart, and no one to 
whom ORR may release the UAC pursuant to subpart C of this part, the UAC 
may be placed in an ORR-contracted facility, having separate 
accommodations for minors, or a State or county juvenile detention 
facility. In addition to the requirement that UACs shall be separated 
from delinquent offenders, every effort must be taken to ensure that the 
safety and well-being of the UAC detained in these facilities are 
satisfactorily provided for by the staff. ORR makes all reasonable 
efforts to place each UAC in a licensed program as expeditiously as 
possible.
    (f) ORR makes and records the prompt and continuous efforts on its 
part toward family reunification. ORR

[[Page 402]]

continues such efforts at family reunification for as long as the minor 
is in ORR custody.



Sec.410.202  Placement of an unaccompanied alien child in a licensed
program.

    ORR places UACs into a licensed program promptly after a UAC is 
transferred to ORR legal custody, except in the following circumstances:
    (a) A UAC meeting the criteria for placement in a secure facility 
set forth in Sec.410.203;
    (b) As otherwise required by any court decree or court-approved 
settlement; or,
    (c) In the event of an emergency or influx of UACs into the United 
States, in which case ORR places the UAC as expeditiously as possible in 
accordance with Sec.410.209; or
    (d) If a reasonable person would conclude that the UAC is an adult 
despite his or her claims to be a minor.



Sec.410.203  Criteria for placing an unaccompanied alien child in a 
secure facility.

    (a) Notwithstanding Sec.410.202, ORR may place a UAC in a secure 
facility if the UAC:
    (1) Has been charged with, is chargeable, or has been convicted of a 
crime, or is the subject of delinquency proceedings, has been 
adjudicated delinquent, or is chargeable with a delinquent act, and 
where ORR deems those circumstances demonstrate that the UAC poses a 
danger to self or others. ``Chargeable'' means that ORR has probable 
cause to believe that the UAC has committed a specified offense. The 
provision in this paragraph (a)(1) does not apply to a UAC whose offense 
is:
    (i) An isolated offense that was not within a pattern or practice of 
criminal activity and did not involve violence against a person or the 
use or carrying of a weapon; or
    (ii) A petty offense, which is not considered grounds for stricter 
means of detention in any case;
    (2) While in DHS or ORR's custody or while in the presence of an 
immigration officer, has committed, or has made credible threats to 
commit, a violent or malicious act (whether directed at himself/herself 
or others);
    (3) Has engaged, while in a licensed program or staff secure 
facility, in conduct that has proven to be unacceptably disruptive of 
the normal functioning of the licensed program or staff secure facility 
in which he or she has been placed and removal is necessary to ensure 
the welfare of the UAC or others, as determined by the staff of the 
licensed program or staff secure facility (e.g., drug or alcohol abuse, 
stealing, fighting, intimidation of others, or sexually predatory 
behavior), and ORR determines the UAC poses a danger to self or others 
based on such conduct;
    (4) For purposes of placement in a secure residential treatment 
centers (RTC), if a licensed psychologist or psychiatrist determines 
that the UAC poses a risk of harm to self or others; or
    (5) Is otherwise a danger to self or others.
    (b) ORR Federal Field Specialists review and approve all placements 
of UAC in secure facilities consistent with legal requirements.
    (c) ORR reviews, at least monthly, the placement of a UAC into a 
secure, staff secure, or RTC facility to determine whether a new level 
of care is more appropriate.
    (d) Notwithstanding ORR's ability under the rules in this subpart to 
place UACs who are ``otherwise a danger to self or others'' in secure 
placements, the provision in this section does not abrogate any 
requirements to place UACs in the least restrictive setting appropriate 
to their age and special needs.



Sec.410.204  Considerations when determining whether an unaccompanied
alien child is an escape risk.

    When determining whether a UAC is an escape risk, ORR considers, 
among other factors, whether:
    (a) The UAC is currently under a final order of removal;
    (b) The UAC's immigration history includes:
    (1) A prior breach of a bond;
    (2) A failure to appear before DHS or the immigration court;
    (3) Evidence that the UAC is indebted to organized smugglers for his 
or her transport; or

[[Page 403]]

    (4) A voluntary departure or a previous removal from the United 
States pursuant to a final order of removal; and
    (c) The UAC has previously absconded or attempted to abscond from 
state or Federal custody.



Sec.410.205  Applicability of Sec.410.203 for placement in a secure 
facility.

    ORR does not place a UAC in a secure facility pursuant to Sec.
410.203 if less restrictive alternatives are available and appropriate 
under the circumstances. ORR may place a UAC in a staff secure facility 
or another licensed program as an alternative to a secure facility.



Sec.410.206  Information for unaccompanied alien children concerning
the reasons for his or her placement in a secure or staff secure 
facility.

    Within a reasonable period of time, ORR provides each UAC placed or 
transferred to a secure or staff secure facility with a notice of the 
reasons for the placement in a language the UAC understands.



Sec.410.207  Custody of an unaccompanied alien child placed pursuant 
to this subpart.

    A UAC who is placed in a licensed program pursuant to this subpart 
remains in the custody of ORR, and may only be transferred or released 
under its authority. However, in the event of an emergency, a licensed 
program may transfer temporarily the physical placement of a UAC prior 
to securing permission from ORR, but must notify ORR of the transfer as 
soon as possible, but in all cases within eight hours of the transfer. 
Upon release to an approved sponsor, a UAC is no longer in the custody 
of ORR.



Sec.410.208  Special needs minors.

    ORR assesses each UAC to determine if he or she has special needs, 
and if so, places the UAC, whenever possible, in a licensed program in 
which ORR places unaccompanied alien children without special needs, but 
which provides services and treatment for such special needs.



Sec.410.209  Procedures during an emergency or influx.

    In the event of an emergency or influx that prevents the prompt 
placement of UAC in licensed programs, ORR makes all reasonable efforts 
to place each UAC in a licensed program as expeditiously as possible 
using the following procedures:
    (a) ORR maintains an emergency placement list of at least 80 beds at 
programs licensed by an appropriate state agency that are potentially 
available to accept emergency placements.
    (b) ORR implements its contingency plan on emergencies and influxes.
    (c) Within one business day of the emergency or influx, ORR, if 
necessary, contacts the programs on the emergency placement list to 
determine available placements. To the extent practicable, ORR will 
attempt to locate emergency placements in geographic areas where 
culturally and linguistically appropriate community services are 
available.
    (d) In the event that the number of UAC needing placement exceeds 
the available appropriate placements on the emergency placement list, 
ORR works with governmental and nongovernmental organizations to locate 
additional placements through licensed programs, county social services 
departments, and foster family agencies.
    (e) ORR maintains a list of UACs affected by the emergency or influx 
including each UAC's:
    (1) Name;
    (2) Date and country of birth;
    (3) Date of placement in ORR's custody; and
    (4) Place and date of current placement.
    (f) Each year ORR reevaluates the number of regular placements 
needed for UAC to determine whether the number of regular placements 
should be adjusted to accommodate an increased or decreased number of 
UAC eligible for placement in licensed programs.

[[Page 404]]



    Subpart C_Releasing an Unaccompanied Alien Child From ORR Custody



Sec.410.300  Purpose of this subpart.

    This subpart covers the policies and procedures used to release, 
without unnecessary delay, a UAC from ORR custody to an approved 
sponsor.



Sec.410.301  Sponsors to whom ORR releases an unaccompanied alien child.

    (a) ORR releases a UAC to an approved sponsor without unnecessary 
delay, but may continue to retain custody of a UAC if ORR determines 
that continued custody is necessary to ensure the UAC's safety or the 
safety of others, or that continued custody is required to secure the 
UAC's timely appearance before DHS or the immigration courts.
    (b) When ORR releases a UAC without unnecessary delay to an approved 
sponsor, it releases in the following order of preference:
    (1) A parent;
    (2) A legal guardian;
    (3) An adult relative (brother, sister, aunt, uncle, or 
grandparent);
    (4) An adult individual or entity designated by the parent or legal 
guardian as capable and willing to care for the UAC's well-being in:
    (i) A declaration signed under penalty of perjury before an 
immigration or consular officer; or
    (ii) Such other document that establishes to the satisfaction of 
ORR, in its discretion, the affiant's parental relationship or 
guardianship;
    (5) A licensed program willing to accept legal custody; or
    (6) An adult individual or entity seeking custody, in the discretion 
of ORR, when it appears that there is no other likely alternative to 
long term custody, and family reunification does not appear to be a 
reasonable possibility.



Sec.410.302  Sponsor suitability assessment process requirements 
leading to release of an unaccompanied alien child from ORR custody
to a sponsor.

    (a) The licensed program providing care for the UAC shall make and 
record the prompt and continuous efforts on its part towards family 
reunification and the release of the UAC pursuant to the provisions of 
this section.
    (b) ORR requires a background check, including verification of 
identity and which may include verification of employment of the 
individuals offering support, prior to release.
    (c) ORR also may require further suitability assessment, which may 
include interviews of members of the household, investigation of the 
living conditions in which the UAC would be placed and the standard of 
care he or she would receive, a home visit, a fingerprint-based 
background and criminal records check on the prospective sponsor and on 
adult residents of the prospective sponsor's household, and follow-up 
visits after release. Any such assessment also takes into consideration 
the wishes and concerns of the UAC.
    (d) If the conditions identified in TVPRA at 8 U.S.C. 1232(c)(3)(B) 
are met, and require a home study, no release to a sponsor may occur in 
the absence of such a home study.
    (e) The proposed sponsor must sign an affidavit of support and a 
custodial release agreement of the conditions of release. The custodial 
release agreement requires that the sponsor:
    (1) Provide for the UAC's physical, mental, and financial well-
being;
    (2) Ensure the UAC's presence at all future proceedings before DHS 
and the immigration courts;
    (3) Ensure the UAC reports for removal from the United States if so 
ordered;
    (4) Notify ORR, DHS, and the Executive Office for Immigration Review 
of any change of address within five days following a move;
    (5) Notify ORR and DHS at least five days prior to the sponsor's 
departure from the United States, whether the departure is voluntary or 
pursuant to a grant of voluntary departure or an order of removal;
    (6) Notify ORR and DHS if dependency proceedings involving the UAC 
are initiated and also notify the dependency court of any immigration 
proceedings pending against the UAC;

[[Page 405]]

    (7) Receive written permission from ORR if the sponsor decides to 
transfer legal custody of the UAC to someone else. Also, in the event of 
an emergency (e.g., serious illness or destruction of the home), a 
sponsor may transfer temporary physical custody of the UAC prior to 
securing permission from ORR, but the sponsor must notify ORR as soon as 
possible and no later than 72 hours after the transfer; and
    (8) Notify ORR and DHS as soon as possible and no later than 24 
hours of learning that the UAC has disappeared, has been threatened, or 
has been contacted in any way by an individual or individuals believed 
to represent an immigrant smuggling syndicate or organized crime.
    (f) ORR is not required to release a UAC to any person or agency it 
has reason to believe may harm or neglect the UAC or fail to present him 
or her before DHS or the immigration courts when requested to do so.



                       Subpart D_Licensed Programs



Sec.410.400  Purpose of this subpart.

    This subpart covers the standards that licensed programs must meet 
in keeping with the principles of treating UACs in custody with dignity, 
respect and special concern for their particular vulnerability.



Sec.410.401  Applicability of this subpart.

    This subpart applies to all licensed programs, regardless of whether 
they are providing care in shelters, staff secure facilities, 
residential treatment centers, or foster care and group home settings.



Sec.410.402  Minimum standards applicable to licensed programs.

    Licensed programs must:
    (a) Be licensed by an appropriate State agency to provide 
residential, group, or foster care services for dependent children;
    (b) Comply with all applicable state child welfare laws and 
regulations and all state and local building, fire, health and safety 
codes;
    (c) Provide or arrange for the following services for each UAC in 
care, including:
    (1) Proper physical care and maintenance, including suitable living 
accommodations, food, appropriate clothing, and personal grooming items;
    (2) Appropriate routine medical and dental care, family planning 
services, and emergency health care services, including a complete 
medical examination (including screening for infectious disease) within 
48 hours of admission, excluding weekends and holidays, unless the UAC 
was recently examined at another facility; appropriate immunizations in 
accordance with the U.S. Public Health Service (PHS), Center for Disease 
Control; administration of prescribed medication and special diets; 
appropriate mental health interventions when necessary;
    (3) An individualized needs assessment that must include:
    (i) Various initial intake forms;
    (ii) Essential data relating to the identification and history of 
the UAC and family;
    (iii) Identification of the UAC's special needs including any 
specific problems that appear to require immediate intervention;
    (iv) An educational assessment and plan;
    (v) An assessment of family relationships and interaction with 
adults, peers and authority figures;
    (vi) A statement of religious preference and practice;
    (vii) An assessment of the UAC's personal goals, strengths and 
weaknesses; and
    (viii) Identifying information regarding immediate family members, 
other relatives, godparents or friends who may be residing in the United 
States and may be able to assist in family reunification;
    (4) Educational services appropriate to the UAC's level of 
development and communication skills in a structured classroom setting, 
Monday through Friday, which concentrate primarily on the development of 
basic academic competencies and secondarily on English Language Training 
(ELT), including:
    (i) Instruction and educational and other reading materials in such 
languages as needed;

[[Page 406]]

    (ii) Instruction in basic academic areas that include science, 
social studies, math, reading, writing, and physical education; and
    (iii) The provision to a UAC of appropriate reading materials in 
languages other than English for use during the UAC's leisure time;
    (5) Activities according to a recreation and leisure time plan that 
include daily outdoor activity, weather permitting, at least one hour 
per day of large muscle activity and one hour per day of structured 
leisure time activities, which do not include time spent watching 
television. Activities must be increased to at least three hours on days 
when school is not in session;
    (6) At least one individual counseling session per week conducted by 
trained social work staff with the specific objectives of reviewing the 
UAC's progress, establishing new short-term objectives, and addressing 
both the developmental and crisis-related needs of each UAC;
    (7) Group counseling sessions at least twice a week. This is usually 
an informal process and takes place with all the UACs present. This is a 
time when new UACs are given the opportunity to get acquainted with the 
staff, other children, and the rules of the program. It is an open forum 
where everyone gets a chance to speak. Daily program management is 
discussed and decisions are made about recreational and other program 
activities, etc. This is a time for staff and UACs to discuss whatever 
is on their minds and to resolve problems;
    (8) Acculturation and adaptation services that include information 
regarding the development of social and inter-personal skills that 
contribute to those abilities necessary to live independently and 
responsibly;
    (9) Upon admission, a comprehensive orientation regarding program 
intent, services, rules (provided in writing and verbally), expectations 
and the availability of legal assistance;
    (10) Whenever possible, access to religious services of the UAC's 
choice;
    (11) Visitation and contact with family members (regardless of their 
immigration status) which is structured to encourage such visitation. 
The staff must respect the UAC's privacy while reasonably preventing the 
unauthorized release of the UAC;
    (12) A reasonable right to privacy, which must include the right to:
    (i) Wear his or her own clothes, when available;
    (ii) Retain a private space in the residential facility, group or 
foster home for the storage of personal belongings;
    (iii) Talk privately on the phone, as permitted by the house rules 
and regulations;
    (iv) Visit privately with guests, as permitted by the house rules 
and regulations; and
    (v) Receive and send uncensored mail unless there is a reasonable 
belief that the mail contains contraband;
    (13) Family reunification services designed to identify relatives in 
the United States as well as in foreign countries and assistance in 
obtaining legal guardianship when necessary for release of the UAC; and
    (14) Legal services information regarding the availability of free 
legal assistance, the right to be represented by counsel at no expense 
to the government, the right to a removal hearing before an immigration 
judge, the right to apply for asylum or to request voluntary departure 
in lieu of removal;
    (d) Deliver services in a manner that is sensitive to the age, 
culture, native language and the complex needs of each UAC;
    (e) Formulate program rules and discipline standards with 
consideration for the range of ages and maturity in the program and that 
are culturally sensitive to the needs of each UAC to ensure the 
following:
    (1) UAC must not be subjected to corporal punishment, humiliation, 
mental abuse, or punitive interference with the daily functions of 
living, such as eating or sleeping: And
    (2) Any sanctions employed must not:
    (i) Adversely affect either a UAC's health, or physical or 
psychological well-being; or
    (ii) Deny UAC regular meals, sufficient sleep, exercise, medical 
care, correspondence privileges, or legal assistance;
    (f) Develop a comprehensive and realistic individual plan for the 
care of each UAC in accordance with the

[[Page 407]]

UAC's needs as determined by the individualized needs assessment. 
Individual plans must be implemented and closely coordinated through an 
operative case management system;
    (g) Develop, maintain and safeguard individual client case records. 
Licensed programs must develop a system of accountability that preserves 
the confidentiality of client information and protects the records from 
unauthorized use or disclosure; and
    (h) Maintain adequate records and make regular reports as required 
by ORR that permit ORR to monitor and enforce the regulations in this 
part and other requirements and standards as ORR may determine are in 
the interests of the UAC.



Sec.410.403  Ensuring that licensed programs are providing services 
as required by the regulations in this part.

    ORR monitors compliance with the terms of the regulations in this 
part.



        Subpart E_Transportation of an Unaccompanied Alien Child



Sec.410.500  Conducting transportation for an unaccompanied alien 
child in ORR's custody.

    (a) ORR does not transport UACs with adult detainees.
    (b) When ORR plans to release a UAC from its custody under the 
family reunification provisions at Sec. Sec.410.201 and 410.302, ORR 
assists without undue delay in making transportation arrangements. ORR 
may, in its discretion, provide transportation to UAC.



           Subpart F_Transfer of an Unaccompanied Alien Child



Sec.410.600  Principles applicable to transfer of an unaccompanied
alien child.

    (a) ORR transfers a UAC from one placement to another with all of 
his or her possessions and legal papers.
    (b) If the UAC's possessions exceed the amount permitted normally by 
the carrier in use, the possessions are shipped to the UAC in a timely 
manner.
    (c) ORR does not transfer a UAC who is represented by counsel 
without advance notice to his or her legal counsel. However, ORR may 
provide notice to counsel within 24 hours of the transfer in unusual and 
compelling circumstances such as:
    (1) Where the safety of the UAC or others has been threatened;
    (2) The UAC has been determined to be an escape risk consistent with 
Sec.410.204; or
    (3) Where counsel has waived such notice.



                      Subpart G_Age Determinations



Sec.410.700  Conducting age determinations.

    Procedures for determining the age of an individual must take into 
account the totality of the circumstances and evidence, including the 
non-exclusive use of radiographs, to determine the age of the 
individual. ORR may require an individual in ORR's custody to submit to 
a medical or dental examination conducted by a medical professional or 
to submit to other appropriate procedures to verify his or her age. If 
ORR subsequently determines that such an individual is a UAC, he or she 
will be treated in accordance with ORR's UAC regulations in this part 
for all purposes.



Sec.410.701  Treatment of an individual who appears to be an adult.

    If, the procedures in Sec.410.700 would result in a reasonable 
person concluding that an individual is an adult, despite his or her 
claim to be under the age of 18, ORR must treat such person as an adult 
for all purposes.



       Subpart H_Unaccompanied Alien Children's Objections to ORR 
                             Determinations



Sec.410.800  Purpose of this subpart.

    This subpart concerns UACs' objections to ORR placement.



Sec.410.801  Procedures.

    (a) For UACs not placed in licensed programs, ORR shall--within a 
reasonable period of time--provide a notice of the reasons for housing 
the minor in

[[Page 408]]

secure or staff secure facility. Such notice shall be in a language the 
UAC understands.
    (b) ORR shall promptly provide each UAC not released with:
    (1) A list of free legal services providers compiled by ORR and that 
is provided to UAC as part of a Legal Resource Guide for UAC (unless 
previously given to the UAC); and
    (2) The following explanation of the right of potential review:

    ``ORR usually houses persons under the age of 18 in an open setting, 
such as a foster or group home, and not in detention facilities. If you 
believe that you have not been properly placed or that you have been 
treated improperly, you may call a lawyer to seek assistance. If you 
cannot afford a lawyer, you may call one from the list of free legal 
services given to you with this form.''



Sec.410.810  Hearings.

    (a) A UAC may request that an independent hearing officer employed 
by HHS determine, through a written decision, whether the UAC would 
present a risk of danger to the community or risk of flight if released.
    (1) Requests under this section may be made by the UAC, his or her 
legal representative, or his or her parent or legal guardian.
    (2) UACs placed in secure or staff secure facilities will receive a 
notice of the procedures under this section and may use a form provided 
to them to make a written request for a hearing under this section.
    (b) In hearings conducted under this section, HHS bears the initial 
burden of production to support its determination that a UAC would pose 
a danger or flight risk if discharged from HHS' care and custody. The 
burden of persuasion is then on the UAC to show that he or she will not 
be a danger to the community or flight risk if released, using a 
preponderance of the evidence standard.
    (c) In hearings under this section, the UAC may be represented by a 
person of his or her choosing, at no cost to the government. The UAC may 
present oral and written evidence to the hearing officer and may appear 
by video or teleconference. ORR may also choose to present evidence 
either in writing, or by appearing in person, or by video or 
teleconference.
    (d) A hearing officer's decision that a UAC would not be a danger to 
the community (or risk of flight) if released is binding upon ORR, 
unless the provisions of paragraph (e) of this section apply.
    (e) A hearing officer's decision under this section may be appealed 
to the Assistant Secretary of the Administration for Children and 
Families. Any such appeal request shall be in writing, and must be 
received within 30 days of the hearing officer decision. The Assistant 
Secretary will reverse a hearing officer decision only if there is a 
clear error of fact, or if the decision includes an error of law. Appeal 
to the Assistant Secretary shall not affect a stay of the hearing 
officer's decision to release the UAC, unless within five business days 
of such hearing officer decision, the Assistant Secretary issues a 
decision in writing that release of the UAC would result in a 
significant danger to the community. Such a stay decision must include a 
description of behaviors of the UAC while in care and/or documented 
criminal or juvenile behavior records from the UAC demonstrating that 
the UAC would present a danger to community if released.
    (f) Decisions under this section are final and binding on the 
Department, and a UAC may only seek another hearing under this section 
if the UAC can demonstrate a material change in circumstances. 
Similarly, ORR may request the hearing officer to make a new 
determination under this section if at least one month has passed since 
the original decision, and ORR can show that a material change in 
circumstances means the UAC should no longer be released.
    (g) This section cannot be used to determine whether a UAC has a 
suitable sponsor, and neither the hearing officer nor the Assistant 
Secretary may order the UAC released.
    (h) This section may not be invoked to determine the UAC's placement 
while in HHS custody. Nor may this section be invoked to determine level 
of custody for the UAC.

[[Page 409]]



PART 411_STANDARDS TO PREVENT, DETECT, AND RESPOND TO SEXUAL ABUSE 
AND SEXUAL HARASSMENT INVOLVING UNACCOMPANIED CHILDREN--
Table of Contents



Sec.
411.5 General definitions.
411.6 Definitions related to sexual abuse and sexual harassment.

                           Subpart A_Coverage

411.10 Coverage of ORR care provider facilities.

                      Subpart B_Prevention Planning

411.11 Zero tolerance toward sexual abuse and sexual harassment; 
          Prevention of Sexual Abuse Coordinator and Compliance Manager.
411.12 Contracting with or having a grant from ORR for the care of UCs.
411.13 UC supervision and monitoring.
411.14 Limits to cross-gender viewing and searches.
411.15 Accommodating UCs with disabilities and UCs who are limited 
          English proficient (LEP).
411.16 Hiring and promotion decisions.
411.17 Upgrades to facilities and technologies.

                      Subpart C_Responsive Planning

411.21 Victim advocacy, access to counselors, and forensic medical 
          examinations.
411.22 Policies to ensure investigation of allegations and appropriate 
          agency oversight.

                    Subpart D_Training and Education

411.31 Care provider facility staff training.
411.32 Volunteer and contractor training.
411.33 UC education.
411.34 Specialized training: Medical and mental health care staff.

  Subpart E_Assessment for Risk of Sexual Victimization and Abusiveness

411.41 Assessment for risk of sexual victimization and abusiveness.
411.42 Use of assessment information.

                           Subpart F_Reporting

411.51 UC reporting.
411.52 Grievances.
411.53 UC access to outside confidential support services.
411.54 Third-party reporting.
411.55 UC access to attorneys or other legal representatives and 
          families.

            Subpart G_Official Response Following a UC Report

411.61 Staff reporting duties.
411.62 Protection duties.
411.63 Reporting to other care provider facilities and DHS.
411.64 Responder duties.
411.65 Coordinated response.
411.66 Protection of UCs from contact with alleged abusers.
411.67 Protection against retaliation.
411.68 Post-allegation protection.

            Subpart H_ORR Incident Monitoring and Evaluation

411.71 ORR monitoring and evaluation of care provider facilities 
          following an allegation of sexual abuse or sexual harassment.
411.72 Reporting to UCs.

                 Subpart I_Interventions and Discipline

411.81 Disciplinary sanctions for staff.
411.82 Corrective actions for contractors and volunteers.
411.83 Interventions for UCs who engage in sexual abuse.

                Subpart J_Medical and Mental Health Care

411.91 Medical and mental health assessments; history of sexual abuse.
411.92 Access to emergency medical and mental health services.
411.93 Ongoing medical and mental health care for sexual abuse and 
          sexual harassment victims and abusers.

                  Subpart K_Data Collection and Review

411.101 Sexual abuse and sexual harassment incident reviews.
411.102 Data collection.
411.103 Data review for corrective action.
411.104 Data storage, publication, and destruction.

                 Subpart L_Audits and Corrective Action

411.111 Frequency and scope of audits.
411.112 Auditor qualifications.
411.113 Audit contents and findings.
411.114 Audit corrective action plan.
411.115 Audit appeals.

    Authority: 42 U.S.C. 15607 (d).

    Source: 79 FR 77789, Dec. 24, 2014, unless otherwise noted.



Sec.411.5  General definitions.

    For the purposes of this part, the following definitions apply:

[[Page 410]]

    ACF means the Administration for Children and Families.
    Care provider facility means any ORR funded program that is 
licensed, certified, or accredited by an appropriate State or local 
agency to provide residential or group services to UCs, including a 
program of group homes or facilities for children with special needs or 
staff-secure services for children. Emergency care provider facilities 
are included in this definition but may or may not be licensed, 
certified, or accredited by an appropriate State or local agency.
    Contractor means a person who, or entity that, provides services on 
a recurring basis pursuant to a contractual agreement with ORR or with a 
care provider facility or has a sub-contractual agreement with the 
contractor.
    DHS means the Department of Homeland Security.
    Director means the Director of the Office of Refugee Resettlement.
    DOJ means the Department of Justice.
    Emergency means a sudden, urgent, usually unexpected occurrence or 
occasion requiring immediate action.
    Emergency care provider facility is a type of care provider facility 
that is temporarily opened to provide temporary emergency shelter and 
services for UCs during an influx. Emergency care provider facilities 
may or may not be licensed by an appropriate State or local agency.
    Exigent circumstances means any set of temporary and unforeseen 
circumstances that require immediate action in order to combat a threat 
to the security of a care provider facility or a threat to the safety 
and security of any person.
    Gender refers to the attitudes, feelings, and behaviors that a given 
culture associates with a person's biological sex.
    Gender identity refers to one's sense of oneself as male, female, or 
transgender.
    Gender nonconforming means a person whose appearance or manner does 
not conform to traditional societal gender expectations.
    HHS means the Department of Health and Human Services.
    Intersex means a person whose sexual or reproductive anatomy or 
chromosomal pattern does not seem to fit typical definitions of male or 
female. Intersex medical conditions are sometimes referred to as 
disorders of sex development.
    Law enforcement means any local, State, or Federal enforcement 
agency with the authority and jurisdiction to investigate whether any 
criminal laws were violated.
    LGBTQI means lesbian, gay, bisexual, transgender, questioning, or 
intersex.
    Limited English proficient (LEP) means individuals for whom English 
is not the primary language and who may have a limited ability to read, 
write, speak, or understand English.
    Medical practitioner means a health professional who, by virtue of 
education, credentials, and experience, is permitted by law to evaluate 
and care for patients within the scope of his or her professional 
practice. A ``qualified medical practitioner'' refers to a professional 
who also has successfully completed specialized training for treating 
sexual abuse victims.
    Mental health practitioner means a mental health professional who, 
by virtue of education, credentials, and experience, is permitted by law 
to evaluate and care for patients within the scope of his or her 
professional practice. A ``qualified mental health practitioner'' refers 
to a professional who also has successfully completed specialized 
training for treating sexual abuse victims.
    ORR refers to the Office of Refugee Resettlement.
    Pat-down search means a sliding or patting of the hands over the 
clothed body of an unaccompanied child by staff to determine whether the 
individual possesses contraband.
    Secure care provider facility is a type of care provider facility 
with a physically secure structure and staff responsible for controlling 
violent behavior. ORR uses a secure care provider facility as the most 
restrictive placement option for a UC who poses a danger to him or 
herself or others or has been charged with having committed a criminal 
offense. A secure care provider facility is a juvenile detention center.

[[Page 411]]

    Sex refers to a person's biological status and is typically 
categorized as male, female, or intersex. There are a number of 
indicators of biological sex, including sex chromosomes, gonads, 
internal reproductive organs, and external genitalia.
    Sexual Assault Forensic Examiner (SAFE) means a ``medical 
practitioner'' who has specialized forensic training in treating sexual 
assault victims and conducting forensic medical examinations.
    Sexual Assault Nurse Examiner (SANE) means a registered nurse who 
has specialized forensic training in treating sexual assault victims and 
conducting forensic medical examinations.
    Special needs means mental and/or physical conditions that require 
special services and treatment by staff. A UC may have special needs due 
to a disability as defined in section 3 of the Americans with 
Disabilities Act of 1990, 42 U.S.C. 12102(2).
    Staff means employees or contractors of ORR or a care provider 
facility, including any entity that operates within a care provider 
facility.
    Strip search means a search that requires a person to remove or 
arrange some or all clothing so as to permit a visual inspection of the 
person's breasts, buttocks, or genitalia.
    Substantiated allegation means an allegation that was investigated 
and determined to have occurred.
    Traditional foster care means a type of care provider facility where 
a UC is placed with a family in a community-based setting. The State or 
locally licensed foster family is responsible for providing basic needs 
in addition to responsibilities as outlined by the State or local 
licensed child placement agency, State and local licensing regulations, 
and any ORR policies related to foster care. The UC attends public 
school and receives on-going case management and counseling services. 
The care provider facility facilitates the provision of additional 
psychiatric, psychological, or counseling referrals as needed. 
Traditional foster care may include transitional or short-term foster 
care as well as long-term foster care providers.
    Transgender means a person whose gender identity (i.e., internal 
sense of feeling male or female) is different from the person's assigned 
sex at birth.
    Unaccompanied child (UC) means a child:
    (1) Who has no lawful immigration status in the United States;
    (2) Who has not attained 18 years of age; and
    (3) With respect to whom there is no parent or legal guardian in the 
United States or there is no parent or legal guardian in the United 
States available to provide care and physical custody.
    Unfounded allegation means an allegation that was investigated and 
determined not to have occurred.
    Unsubstantiated allegation means an allegation that was investigated 
and the investigation produced insufficient evidence to make a final 
determination as to whether or not the event occurred.
    Volunteer means an individual who donates time and effort on a 
recurring basis to enhance the activities and programs of ORR or the 
care provider facility.
    Youth care worker means employees primarily responsible for the 
supervision and monitoring of UCs in housing units, educational areas, 
recreational areas, dining areas, and other program areas of a care 
provider facility.



Sec.411.6  Definitions related to sexual abuse and sexual harassment.

    For the purposes of this part, the following definitions apply:
    Sexual abuse means--
    (1) Sexual abuse of a UC by another UC; and
    (2) Sexual abuse of a UC by a staff member, grantee, contractor, or 
volunteer.
    Sexual abuse of a UC by another UC includes any of the following 
acts, if the victim does not consent, is coerced into such act by overt 
or implied threats of violence, or is unable to consent or refuse:
    (1) Contact between the penis and the vulva or the penis and the 
anus, including penetration, however slight;
    (2) Contact between the mouth and the penis, vulva, or anus;
    (3) Penetration of the anal or genital opening of another person, 
however

[[Page 412]]

slight, by a hand, finger, object, or other instrument; and
    (4) Any other intentional touching, either directly or through the 
clothing, of the genitalia, anus, groin, breast, inner thigh, or the 
buttocks of another person, excluding contact incidental to a physical 
altercation.
    Sexual abuse of a UC by a staff member, grantee, contractor, or 
volunteer includes any of the following acts, with or without the 
consent of the UC:
    (1) Contact between the penis and the vulva or the penis and the 
anus, including penetration, however slight;
    (2) Contact between the mouth and the penis, vulva, or anus;
    (3) Contact between the mouth and any body part where the staff 
member, contractor, or volunteer has the intent to abuse, arouse, or 
gratify sexual desire;
    (4) Penetration of the anal or genital opening, however slight, by a 
hand, finger, object, or other instrument, that is unrelated to official 
duties or where the staff member, grantee, contractor, or volunteer has 
the intent to abuse, arouse, or gratify sexual desire;
    (5) Any other intentional contact, either directly or through the 
clothing, of or with the genitalia, anus, groin, breast, inner thigh, or 
the buttocks, that is unrelated to official duties or where the staff 
member, grantee, contractor, or volunteer has the intent to abuse, 
arouse, or gratify sexual desire;
    (6) Any attempt, threat, or request by a staff member, grantee, 
contractor, or volunteer to engage in the activities described in 
paragraphs (1) through (5) of this definition;
    (7) Any display by a staff member, grantee, contractor, or volunteer 
of his or her uncovered genitalia, buttocks, or breast in the presence 
of a UC; and
    (8) Voyeurism by a staff member, grantee, contactor, or volunteer.
    Sexual harassment includes--
    (1) Repeated and unwelcome sexual advances, requests for sexual 
favors, or verbal comments, gestures, phone calls, emails, texts, social 
media messages, pictures sent or shown, other electronic communication, 
or actions of a derogatory or offensive sexual nature by one UC towards 
another; and
    (2) Repeated verbal comments, gestures, phone calls, emails, texts, 
social media messages, pictures sent or shown, or other electronic 
communication of a sexual nature to a UC by a staff member, grantee, 
contractor, or volunteer, including demeaning references to gender, 
sexually suggestive or derogatory comments about body or clothing, or 
obscene language or gestures.
    Voyeurism by a staff member, grantee, contractor, or volunteer means 
an invasion of privacy of a UC by a staff member, grantee, contractor, 
or volunteer for reasons unrelated to official duties, such as 
inappropriately viewing a UC perform bodily functions or bathing; 
requiring a UC to expose his or her buttocks, genitals, or breasts; or 
recording images of all or part of a UC's naked body or of a UC 
performing bodily functions.



                           Subpart A_Coverage



Sec.411.10  Coverage of ORR care provider facilities.

    (a) This part applies to all ORR care provider facilities except 
secure care provider facilities and traditional foster care homes. 
Secure care provider facilities must, instead, follow the Department of 
Justice's National Standards to Prevent, Detect, and Respond to Prison 
Rape, 28 CFR part 115. Traditional foster care homes are not subject to 
this part.
    (b) Emergency care provider facilities are subject to every section 
in this part except:
    (1) Section 411.22(c);
    (2) Section 411.71(b)(4);
    (3) Section 411.101(b);
    (4) Section 411.102(c), (d), and (e); and
    (5) Subpart L.
    (c) Emergency care provider facilities must implement the standards 
in this rule, excluding the standards listed above, within fifteen (15) 
days of opening. The Director, however, may, using unreviewable 
discretion, waive or modify specific sections for a particular emergency 
care provider facility for good cause. Good cause would only be found in 
cases where the temporary nature of the emergency care provider facility 
makes compliance with the provision impracticable or impossible, and the 
Director determines that the emergency care provider facility could not,

[[Page 413]]

without substantial difficulty, meet the provision in the absence of the 
waiver or modification.
    (d) For the purposes of this part, the terms related to sexual abuse 
and sexual harassment refer specifically to the sexual abuse or sexual 
harassment of a UC that occurs at an ORR care provider facility while in 
ORR care and custody. Incidents of past sexual abuse or sexual 
harassment or sexual abuse or sexual harassment that occurs in any other 
context other than in ORR care and custody are not within the scope of 
this regulation.



                      Subpart B_Prevention Planning



Sec.411.11  Zero tolerance toward sexual abuse and sexual harassment;
Prevention of Sexual Abuse Coordinator and Compliance Manager.

    (a) ORR must have a written policy mandating zero tolerance toward 
all forms of sexual abuse and sexual harassment and outlining ORR's 
approach to preventing, detecting, and responding to such conduct. ORR 
must ensure that all policies and services related to this rule are 
implemented in a culturally-sensitive and knowledgeable manner that is 
tailored for a diverse population.
    (b) ORR must employ or designate an upper-level, ORR-wide Prevention 
of Sexual Abuse Coordinator (PSA Coordinator) with sufficient time and 
authority to develop, implement, and oversee ORR efforts to comply with 
these standards in all of its care provider facilities.
    (c) Care provider facilities must have a written policy mandating 
zero tolerance toward all forms of sexual abuse and sexual harassment 
and outlining the care provider facility's approach to preventing, 
detecting, and responding to such conduct. The care provider facility 
also must ensure that all policies and services related to this rule are 
implemented in a culturally-sensitive and knowledgeable manner that is 
tailored for a diverse population. ORR will review and approve each care 
provider facility's written policy.
    (d) Care provider facilities must employ or designate a Prevention 
of Sexual Abuse Compliance Manager (PSA Compliance Manager) with 
sufficient time and authority to develop, implement, and oversee the 
care provider facility's efforts to comply with the provisions set forth 
in this part and serve as a point of contact for ORR's PSA Coordinator.



Sec.411.12  Contracting with or having a grant from ORR for the care
of UCs.

    (a) When contracting with or providing a grant to a care provider 
facility, ORR must include in any new contracts, contract renewals, 
cooperative agreements, or cooperative agreement renewals the entity's 
obligation to adopt and comply with these standards.
    (b) For organizations that contract, grant, or have a sub-grant with 
a care provider facility to provide residential services to UCs, the 
organization must, as part of the contract or cooperative agreement, 
adopt and comply with the provisions set forth in this part.
    (c) All new contracts, contract renewals, and grants must include 
provisions for monitoring and evaluation to ensure that the contractor, 
grantee, or sub-grantee is complying with these provisions.



Sec.411.13  UC supervision and monitoring.

    (a) Care provider facilities must develop, document, and make their 
best effort to comply with a staffing plan that provides for adequate 
levels of staffing, and, where applicable under State and local 
licensing standards, video monitoring, to protect UCs from sexual abuse 
and sexual harassment.
    (b) In determining adequate levels of UC supervision and determining 
the need for video monitoring, the care provider facility must take into 
consideration the physical layout of the facility, the composition of 
the UC population, the prevalence of substantiated and unsubstantiated 
incidents of sexual abuse and sexual harassment, and any other relevant 
factors. Video monitoring equipment may not be placed in any bathroom, 
shower or bathing area, or other area where UCs routinely undress.
    (c) Care provider facilities must conduct frequent unannounced 
rounds to identify and deter sexual abuse and sexual harassment. Such 
rounds must

[[Page 414]]

be implemented during night as well as day shifts. Care provider 
facilities must prohibit staff from alerting others that rounds are 
occurring, unless such announcement is related to the legitimate 
operational functions of the care provider facility.



Sec.411.14  Limits to cross-gender viewing and searches.

    (a) Cross-gender pat-down searches of UCs must not be conducted 
except in exigent circumstances. For a UC that identifies as transgender 
or intersex, the ORR care provider facility must ask the UC to identify 
the gender of staff with whom he/she would feel most comfortable 
conducting the search.
    (b) All pat-down searches must be conducted in the presence of one 
additional care provider facility staff member unless there are exigent 
circumstances and must be documented and reported to ORR.
    (c) Strip searches and visual body cavity searches of UCs are 
prohibited.
    (d) Care provider facilities must permit UCs to shower, perform 
bodily functions, and change clothing without being viewed by staff, 
except: In exigent circumstances; when such viewing is incidental to 
routine room checks; is otherwise appropriate in connection with a 
medical examination or monitored bowel movement; if a UC is under age 6 
and needs assistance with such activities; a UC with special needs is in 
need of assistance with such activities; or the UC requests and requires 
assistance. If the UC has special needs and requires assistance with 
such activities, the care provider facility staff member must be of the 
same gender as the UC when assisting with such activities.
    (e) Care provider facilities must not search or physically examine a 
UC for the sole purpose of determining the UC's sex. If the UC's sex is 
unknown, it may be determined during conversations with the UC, by 
reviewing medical records, or, if necessary, learning that information 
as part of a broader medical examination conducted in private by a 
medical practitioner.
    (f) Care provider facilities must train youth care worker staff in 
proper procedures for conducting pat-down searches, including cross-
gender pat-down searches and searches of transgender and intersex UCs. 
All pat-down searches must be conducted in a professional and respectful 
manner, and in the least intrusive manner possible, consistent with 
security needs and existing ORR policy, including consideration of youth 
care worker staff safety.



Sec.411.15  Accommodating UCs with disabilities and UCs who are 
limited English proficient (LEP).

    (a) Care provider facilities must take appropriate steps to ensure 
that UCs with disabilities (including, for example, UCs who are deaf or 
hard of hearing, those who are blind or have low vision, or those who 
have intellectual, psychiatric, or speech disabilities) have an equal 
opportunity to participate in or benefit from all aspects of the care 
provider facility's efforts to prevent, detect, and respond to sexual 
abuse and sexual harassment. Such steps must include, when necessary to 
ensure effective communication with UCs who are deaf or hard of hearing, 
providing access to in-person, telephonic, or video interpretive 
services that enable effective, accurate, and impartial interpretation, 
both receptively and expressively, using any necessary specialized 
vocabulary. In addition, the care provider facility must ensure that any 
written materials related to sexual abuse and sexual harassment are 
translated and provided in formats or through methods that ensure 
effective communication with UCs with disabilities, including UCs who 
have intellectual disabilities, limited reading skills, or who are blind 
or have low vision.
    (b) Care provider facilities must take appropriate steps to ensure 
that UCs who are limited English proficient have an equal opportunity to 
participate in or benefit from all aspects of the care provider 
facility's efforts to prevent, detect, and respond to sexual abuse and 
sexual harassment, including steps to provide quality in-person or 
telephonic interpretive services and quality translation services that 
enable effective, accurate, and impartial interpretation and 
translation, both receptively and expressively, using any necessary 
specialized vocabulary.

[[Page 415]]

    (c) In matters relating to allegations of sexual abuse or sexual 
harassment, the care provider facility must provide quality in-person or 
telephonic interpretation services that enable effective, accurate, and 
impartial interpretation by someone other than another UC. Care provider 
facilities also must ensure that any written materials related to sexual 
abuse and sexual harassment, including notification, orientation, and 
instruction not provided by ORR, are translated either verbally or in 
written form into the preferred languages of UCs.



Sec.411.16  Hiring and promotion decisions.

    (a) Care provider facilities are prohibited from hiring or promoting 
any individual who may have contact with UCs and must not enlist the 
services of any contractor or volunteer who may have contact with UCs 
and who engaged in: Sexual abuse in a prison, jail, holding facility, 
community confinement facility, juvenile facility, other institution (as 
defined in 42 U.S.C. 1997), or care provider facility; who was convicted 
of engaging or attempting to engage in sexual activity facilitated by 
force, overt or implied threats of force, or coercion, or if the victim 
did not consent or was unable to consent or refuse; or who was civilly 
or administratively adjudicated to have engaged in such activity.
    (b) Care provider facilities considering hiring or promoting staff 
must ask all applicants who may have direct contact with UCs about 
previous misconduct described in paragraph (a) of this section in 
written applications or interviews for hiring or promotions and in any 
interviews or written self-evaluations conducted as part of performance 
evaluations of current employees. Care provider facilities also must 
impose upon employees a continuing affirmative duty to disclose any such 
misconduct, whether the conduct occurs on or off duty. Care provider 
facilities, consistent with law, must make their best efforts to contact 
all prior institutional employers of an applicant for employment to 
obtain information on substantiated allegations of sexual abuse or 
sexual harassment or any resignation during a pending investigation of 
alleged sexual abuse or sexual harassment.
    (c) Prior to hiring new staff who may have contact with UCs, the 
care provider facility must conduct a background investigation to 
determine whether the candidate for hire is suitable for employment with 
minors in a residential setting. Upon ORR request, the care provider 
facility must submit all background investigation documentation for each 
staff member and the care provider facility's conclusions.
    (d) Care provider facilities also must perform a background 
investigation before enlisting the services of any contractor or 
volunteer who may have contact with UCs. Upon ORR request, the care 
provider facility must submit all background investigation documentation 
for each contractor or volunteer and the care provider facility's 
conclusions.
    (e) Care provider facilities must either conduct a criminal 
background records check at least every five years for current 
employees, contractors, and volunteers who may have contact with UCs or 
have in place a system for capturing the information contained in a 
criminal background records check for current employees.
    (f) Material omissions regarding such misconduct or the provision of 
materially false information by the applicant or staff will be grounds 
for termination or withdrawal of an offer of employment, as appropriate.
    (g) Unless prohibited by law, the care provider facility must 
provide information on substantiated allegations of sexual abuse or 
sexual harassment involving a former employee upon receiving a request 
from another care provider facility or institutional employer for whom 
such employee has applied to work.
    (h) In the event the care provider facility contracts with an 
organization to provide residential services and/or other services to 
UCs, the requirements of this section also apply to the organization and 
its staff.



Sec.411.17  Upgrades to facilities and technologies.

    (a) When designing or acquiring any new facility and in planning any 
substantial expansion or modification of

[[Page 416]]

existing facilities, the care provider facility, as appropriate, must 
consider the effect of the design, acquisition, expansion, or 
modification upon their ability to protect UCs from sexual abuse and 
sexual harassment.
    (b) When installing or updating a video monitoring system, 
electronic surveillance system, or other monitoring technology in a care 
provider facility, the care provider facility, as appropriate, must 
consider how such technology may enhance its ability to protect UCs from 
sexual abuse and sexual harassment while maintaining UC privacy and 
dignity.



                      Subpart C_Responsive Planning



Sec.411.21  Victim advocacy, access to counselors, and forensic
medical examinations.

    (a) Care provider facilities must develop procedures to best utilize 
available community resources and services to provide valuable expertise 
and support in the areas of crisis intervention and counseling to most 
appropriately address victims' needs. Each care provider facility must 
establish procedures to make available outside victim services following 
incidents of sexual abuse and sexual harassment; the care provider 
facility must attempt to make available to the victim a victim advocate 
from a rape crisis center. If a rape crisis center is not available or 
if the UC prefers, the care provider facility may provide a licensed 
clinician on staff to provide crisis intervention and trauma services 
for the UC. The outside or internal victim advocate must provide 
emotional support, crisis intervention, information, and referrals.
    (b) Where evidentiarily or medically appropriate, and only with the 
UC's consent, the care provider facility must arrange for an alleged 
victim UC to undergo a forensic medical examination as soon as possible 
and that is performed by Sexual Assault Forensic Examiners (SAFEs) or 
Sexual Assault Nurse Examiners (SANEs) where possible. If SAFEs or SANEs 
cannot be made available, the examination may be performed by a 
qualified medical practitioner.
    (c) As requested by a victim, the presence of his or her outside or 
internal victim advocate, including any available victim advocacy 
services offered at a hospital conducting a forensic examination, must 
be allowed to the extent possible for support during a forensic 
examination and investigatory interviews.
    (d) To the extent possible, care provider facilities must request 
that the investigating agency follow the requirements of paragraphs (a) 
through (c) of this section.



Sec.411.22  Policies to ensure investigation of allegations and 
appropriate agency oversight.

    (a) ORR and care provider facilities must ensure that each 
allegation of sexual abuse and sexual harassment, including a third-
party or anonymous allegation, is immediately referred to all 
appropriate investigating authorities, including Child Protective 
Services, the State or local licensing agency, and law enforcement. Care 
provider facilities also must immediately report each allegation of 
sexual abuse and sexual harassment to ORR according to ORR policies and 
procedures. The care provider facility has an affirmative duty to keep 
abreast of the investigation(s) and cooperate with outside 
investigators. ORR also must remain informed of ongoing investigations 
and fully cooperate as necessary.
    (b) Care provider facilities must maintain or attempt to enter into 
a written memorandum of understanding or other agreement specific to 
investigations of sexual abuse and sexual harassment with the law 
enforcement agency, designated State or local Child Protective Services, 
and/or the State or local licensing agencies responsible for conducting 
sexual abuse and sexual harassment investigations, as appropriate. Care 
provider facilities must maintain a copy of the agreement or 
documentation showing attempts to enter into an agreement.
    (c) Care provider facilities must maintain documentation for at 
least ten years of all reports and referrals of allegations of sexual 
abuse and sexual harassment.
    (d) ORR will refer an allegation of sexual abuse to the Department 
of Justice or other investigating authority

[[Page 417]]

for further investigation where such reporting is in accordance with its 
policies and procedures and any memoranda of understanding.
    (e) All allegations of sexual abuse that occur at emergency care 
provider facilities operating on fully Federal properties must be 
reported to the Department of Justice in accordance with ORR policies 
and procedures and any memoranda of understanding.



                    Subpart D_Training and Education



Sec.411.31  Care provider facility staff training.

    (a) Care provider facilities must train or require the training of 
all employees who may have contact with UCs to be able to fulfill their 
responsibilities under these standards, including training on:
    (1) ORR and the care provider facility's zero tolerance policies for 
all forms of sexual abuse and sexual harassment;
    (2) The right of UCs and staff to be free from sexual abuse and 
sexual harassment and from retaliation for reporting sexual abuse and 
sexual harassment;
    (3) Definitions and examples of prohibited and illegal sexual 
behavior;
    (4) Recognition of situations where sexual abuse or sexual 
harassment may occur;
    (5) Recognition of physical, behavioral, and emotional signs of 
sexual abuse and methods of preventing and responding to such 
occurrences;
    (6) How to avoid inappropriate relationships with UCs;
    (7) How to communicate effectively and professionally with UCs, 
including UCs who are lesbian, gay, bisexual, transgender, questioning, 
or intersex;
    (8) Procedures for reporting knowledge or suspicion of sexual abuse 
and sexual harassment as well as how to comply with relevant laws 
related to mandatory reporting;
    (9) The requirement to limit reporting of sexual abuse and sexual 
harassment to personnel with a need-to-know in order to make decisions 
concerning the victim's welfare and for law enforcement, investigative, 
or prosecutorial purposes;
    (10) Cultural sensitivity toward diverse understandings of 
acceptable and unacceptable sexual behavior and appropriate terms and 
concepts to use when discussing sex, sexual abuse, and sexual harassment 
with a culturally diverse population;
    (11) Sensitivity and awareness regarding past trauma that may have 
been experienced by UCs;
    (12) Knowledge of all existing resources for UCs both inside and 
outside the care provider facility that provide treatment and counseling 
for trauma and legal advocacy for victims; and
    (13) General cultural competency and sensitivity to the culture and 
age of UC.
    (b) All current care provider facility staff and employees who may 
have contact with UCs must be trained within six months of the effective 
date of these standards, and care provider facilities must provide 
refresher information, as appropriate.
    (c) Care provider facilities must document that staff and employees 
who may have contact with UCs have completed the training.



Sec.411.32  Volunteer and contractor training.

    (a) Care provider facilities must ensure that all volunteers and 
contractors who may have contact with UCs are trained on their 
responsibilities under ORR and the care provider facility's sexual abuse 
and sexual harassment prevention, detection, and response policies and 
procedures as well as any relevant Federal, State, and local laws.
    (b) The level and type of training provided to volunteers and 
contractors may be based on the services they provide and the level of 
contact they will have with UCs, but all volunteers and contractors who 
have contact with UCs must be trained on the care provider facility's 
zero tolerance policies and procedures regarding sexual abuse and sexual 
harassment and informed how to report such incidents.
    (c) Each care provider facility must maintain written documentation 
that contractors and volunteers who may have contact with UCs have 
completed the required trainings.

[[Page 418]]



Sec.411.33  UC education.

    (a) During the intake process and periodically thereafter, each care 
provider facility must ensure that during orientation or a periodic 
refresher session, UCs are notified and informed of the care provider 
facility's zero tolerance policies for all forms of sexual abuse and 
sexual harassment in an age and culturally appropriate fashion and in 
accordance with Sec.411.15 that includes, at a minimum:
    (1) An explanation of the UC's right to be free from sexual abuse 
and sexual harassment as well as the UC's right to be free from 
retaliation for reporting such incidents;
    (2) Definitions and examples of UC-on-UC sexual abuse, staff-on-UC 
sexual abuse, coercive sexual activity, appropriate and inappropriate 
relationships, and sexual harassment;
    (3) An explanation of the methods for reporting sexual abuse and 
sexual harassment, including to any staff member, outside entity, and to 
ORR;
    (4) An explanation of a UC's right to receive treatment and 
counseling if the UC was subjected to sexual abuse or sexual harassment;
    (b) Care provider facilities must provide the UC notification, 
orientation, and instruction in formats accessible to all UCs at a time 
and in a manner that is separate from information provided about their 
immigration cases.
    (c) Care provider facilities must document all UC participation in 
orientation and periodic refresher sessions that address the care 
provider facility's zero tolerance policies.
    (d) Care provider facilities must post on all housing unit bulletin 
boards who a UC can contact if he or she is a victim or is believed to 
be at imminent risk of sexual abuse or sexual harassment in accordance 
with Sec.411.15.
    (e) Care provider facilities must make available and distribute a 
pamphlet in accordance with Sec.411.15 that contains, at a minimum, 
the following:
    (1) Notice of the care provider facility's zero-tolerance policy 
toward sexual abuse and sexual harassment;
    (2) The care provider facility's policies and procedures related to 
sexual abuse and sexual harassment;
    (3) Information on how to report an incident of sexual abuse or 
sexual harassment;
    (4) The UC's rights and responsibilities related to sexual abuse and 
sexual harassment;
    (5) How to contact organizations in the community that provide 
sexual abuse counseling and legal advocacy for UC victims of sexual 
abuse and sexual harassment;
    (6) How to contact diplomatic or consular personnel.



Sec.411.34  Specialized training: Medical and mental health care staff.

    (a) All medical and mental health care staff employed or contracted 
by care provider facilities must be specially trained, at a minimum, on 
the following:
    (1) How to detect and assess signs of sexual abuse and sexual 
harassment;
    (2) How to respond effectively and professionally to victims of 
sexual abuse and sexual harassment;
    (3) How and to whom to report allegations or suspicions of sexual 
abuse and sexual harassment; and
    (4) How to preserve physical evidence of sexual abuse. If medical 
staff conduct forensic examinations, such medical staff must receive 
training to conduct such examinations.
    (b) Care provider facilities must document that medical and mental 
health practitioners employed or contracted by the care provider 
facility received the training referenced in this section.
    (c) Medical and mental health practitioners employed or contracted 
by the care provider facility also must receive the training mandated 
for employees under Sec.411.31 or for contractors and volunteers under 
Sec.411.32, depending on the practitioner's status at the care 
provider facility.



  Subpart E_Assessment for Risk of Sexual Victimization and Abusiveness



Sec.411.41  Assessment for risk of sexual victimization and
abusiveness.

    (a) Within 72 hours of a UC's arrival at a care provider facility 
and periodically throughout a UC's stay, the care provider facility must 
obtain and use information about each UC's personal

[[Page 419]]

history and behavior using a standardized screening instrument to reduce 
the risk of sexual abuse or sexual harassment by or upon a UC.
    (b) The care provider facility must consider, at a minimum and to 
the extent that the information is available, the following criteria to 
assess UCs for risk of sexual victimization:
    (1) Prior sexual victimization or abusiveness;
    (2) Any gender nonconforming appearance or manner or Self-
identification as lesbian, gay, bisexual, transgender, questioning, or 
intersex and whether the resident may therefore be vulnerable to sexual 
abuse or sexual harassment;
    (3) Any current charges and offense history;
    (4) Age;
    (5) Any mental, physical, or developmental disability or illness;
    (6) Level of emotional and cognitive development;
    (7) Physical size and stature;
    (8) The UC's own perception of vulnerability; and
    (9) Any other specific information about an individual UC that may 
indicate heightened needs for supervision, additional safety 
precautions, or separation from certain other UCs.
    (c) This information must be ascertained through conversations with 
the UC during the intake process and medical and mental health 
screenings; during classification assessments; and by reviewing court 
records, case files, care provider facility behavioral records, and 
other relevant documentation from the UC's files. Only trained staff are 
permitted to talk with UCs to gather information about their sexual 
orientation or gender identity, prior sexual victimization, history of 
engaging in sexual abuse, mental health status, and mental disabilities 
for the purposes of the assessment required under paragraph (a) of this 
section. Care provider facilities must provide UCs an opportunity to 
discuss any safety concerns or sensitive issues privately.
    (d) The care provider facility must implement appropriate controls 
on the dissemination within the care provider facility of responses to 
questions asked pursuant to this standard in order to ensure that 
sensitive information is not exploited to the UC's detriment by staff or 
other UCs.



Sec.411.42  Use of assessment information.

    (a) The care provider facility must use the information from the 
risk assessment under Sec.411.41 to inform assignment of UCs to 
housing, education, recreation, and other activities and services. The 
care provider facility must make individualized determinations about how 
to ensure the safety and health of each UC.
    (b) Care provider facilities may not place UCs on one-on-one 
supervision as a result of the assessment completed in Sec.411.41 
unless there are exigent circumstances that require one-on-one 
supervision to keep the UC, other UCs, or staff safe, and then, only 
until an alternative means of keeping all residents and staff safe can 
be arranged. During any period of one-on-one supervision, a UC may not 
be denied any required services, including but not limited to daily 
large-muscle exercise, required educational programming, and social 
services, as reasonable under the circumstances. UCs on one-on-one 
supervision must receive daily visits from a medical practitioner or 
mental health care clinician as necessary unless the medical 
practitioner or mental health care clinician determines daily visits are 
not required. The medical practitioner or mental health care clinician, 
however, must continue to meet with the UC on a regular basis while the 
UC is on one-on-one supervision.
    (c) When making assessment and housing assignments for a transgender 
or intersex UCs, the care provider facility must consider the UC's 
gender self-identification and an assessment of the effects of a housing 
assignment on the UC's health and safety. The care provider facility 
must consult a medical or mental health professional as soon as 
practicable on this assessment. The care provider facility must not base 
housing assignment decisions of transgender or intersex UCs solely on 
the identity documents or physical anatomy of the UC; a UC's self-
identification of his/her gender and self-assessment of safety needs 
must always be taken into consideration as well. An

[[Page 420]]

identity document may include but is not limited to official U.S. and 
foreign government documentation, birth certificates, and other official 
documentation stating the UC's sex. The care provider facility's housing 
assignment of a transgender or intersex UCs must be consistent with the 
safety and security considerations of the care provider facility, State 
and local licensing standards, and housing and programming assignments 
of each transgender or intersex UCs must be regularly reassessed to 
review any threats to safety experienced by the UC.



                           Subpart F_Reporting



Sec.411.51  UC reporting.

    (a) The care provider facility must develop policies and procedures 
in accordance with Sec.411.15 to ensure that UCs have multiple ways to 
report to the care provider: Sexual abuse and sexual harassment, 
retaliation for reporting sexual abuse or sexual harassment, and staff 
neglect or violations of responsibilities that may have contributed to 
such incidents. The care provider facility also must provide access to 
and instructions on how UCs may contact their consular official, ORR's 
headquarters, and an outside entity to report these incidents. Care 
provider facilities must provide UCs access to telephones with free, 
preprogrammed numbers for ORR headquarters and the outside entity 
designated under Sec.411.51(b).
    (b) The care provider facility must provide and inform the UC of at 
least one way for UCs to report sexual abuse and sexual harassment to an 
entity or office that is not part of the care provider facility and is 
able to receive and immediately forward UC reports of sexual abuse and 
sexual harassment to ORR officials, allowing UCs to remain anonymous 
upon request. The care provider facility must maintain or attempt to 
enter into a memorandum of understanding or other agreement with the 
entity or office and maintain copies of agreements or documentation 
showing attempts to enter into agreements.
    (c) The care provider facility's policies and procedures must 
include provisions for staff to accept reports made verbally, in 
writing, anonymously, and from third parties. Staff must promptly 
document any verbal reports.
    (d) All allegations or knowledge of sexual abuse and sexual 
harassment by staff or UCs must be immediately reported to the State or 
local licensing agency, the State or local Child Protective Services 
agency, State or local law enforcement, and to ORR according to ORR's 
policies and procedures.



Sec.411.52  Grievances.

    (a) The care provider facility must implement written policies and 
procedures for identifying and handling time-sensitive grievances that 
involve an immediate threat to UC health, safety, or welfare related to 
sexual abuse and sexual harassment. All such grievances must be reported 
to ORR according to ORR policies and procedures.
    (b) The care provider facility's staff must bring medical 
emergencies to the immediate attention of proper medical and/or 
emergency services personnel for further assessment.
    (c) The care provider facility must issue a written decision on the 
grievance within five days of receipt.
    (d) To prepare a grievance, a UC may obtain assistance from another 
UC, care provider facility staff, family members, or legal 
representatives. Care provider facility staff must take reasonable steps 
to expedite requests for assistance from these other parties.



Sec.411.53  UC access to outside confidential support services.

    (a) Care provider facilities must utilize available community 
resources and services to provide valuable expertise and support in the 
areas of crisis intervention, counseling, investigation, and the 
prosecution of sexual abuse perpetrators to most appropriately address a 
sexual abuse victim's needs. The care provider facility must maintain or 
attempt to enter into memoranda of understanding or other agreements 
with community service providers, or if local providers are not 
available, with national organizations that provide legal advocacy and 
confidential emotional support services for immigrant victims of crime. 
The care provider facility must maintain copies

[[Page 421]]

of its agreements or documentation showing attempts to enter into such 
agreements.
    (b) Care provider facilities must have written policies and 
procedures to include outside agencies in the care provider facility's 
sexual abuse and sexual harassment prevention and intervention 
protocols, if such resources are available.
    (c) Care provider facilities must make available to UC information 
about local organizations that can assist UCs who are victims of sexual 
abuse and sexual harassment, including mailing addresses and telephone 
numbers (including toll-free hotline numbers where available). If no 
such local organizations exist, the care provider facility must make 
available the same information about national organizations. The care 
provider facility must enable reasonable communication between UCs and 
these organizations and agencies in a confidential manner and inform 
UCs, prior to giving them access, of the extent to which such 
communications will be confidential.



Sec.411.54  Third-party reporting.

    ORR must establish a method to receive third-party reports of sexual 
abuse and sexual harassment and must make available to the public 
information on how to report sexual abuse and sexual harassment on 
behalf of a UC.



Sec.411.55  UC access to attorneys or other legal representatives 
and families.

    (a) Care provider facilities must provide UCs confidential access to 
their attorney or other legal representative in accordance with the care 
provider's attorney-client visitation rules. The care provider's 
visitation rules must include provisions for immediate access in the 
case of an emergency or exigent circumstance. The care provider's 
attorney-client visitation rules must be approved by ORR to ensure the 
rules are reasonable and appropriate and include provisions for 
emergencies and exigent circumstances.
    (b) Care provider facilities must provide UCs access to their 
families, including legal guardians, unless ORR has documentation 
showing that certain family members or legal guardians should not be 
provided access because of safety concerns.



            Subpart G_Official Response Following a UC Report



Sec.411.61  Staff reporting duties.

    (a) All care provider facility staff, volunteers, and contractors 
must immediately report to ORR according to ORR policies and procedures 
and to State or local agencies in accordance with mandatory reporting 
laws: any knowledge, suspicion, or information regarding an incident of 
sexual abuse or sexual harassment that occurred while a UC was in ORR 
care; retaliation against UCs or staff who reported such an incident; 
and any staff neglect or violation of responsibilities that may have 
contributed to an incident or retaliation. ORR must review and approve 
the care provider facility's policies and procedures and ensure that the 
care provider facility specifies appropriate reporting procedures.
    (b) Care provider facility staff members who become aware of alleged 
sexual abuse or sexual harassment must immediately follow reporting 
requirements set forth by ORR's and the care provider facility's 
policies and procedures.
    (c) Apart from such reporting, care provider facility staff must not 
reveal any information related to a sexual abuse or sexual harassment 
report to anyone within the care provider facility except to the extent 
necessary for medical or mental health treatment, investigations, notice 
to law enforcement, or other security and management decisions.
    (d) Care provider facility staff must report any sexual abuse and 
sexual harassment allegations to the designated State or local services 
agency under applicable mandatory reporting laws in addition to law 
enforcement and the State and local licensing agency.
    (e) Upon receiving an allegation of sexual abuse or sexual 
harassment that occurred while a UC was in ORR care, the care provider 
facility head or his or her designee must report the allegation to the 
alleged victim's parents or legal guardians, unless ORR has evidence 
showing the parents or legal guardians should not be notified or the 
victim

[[Page 422]]

does not consent to this disclosure of information and is 14 years of 
age or older and ORR has determined the victim is able to make an 
independent decision.
    (f) Upon receiving an allegation of sexual abuse or sexual 
harassment that occurred while a UC was in ORR care, ORR will share this 
information with the UC's attorney of record within 48 hours of learning 
of the allegation unless the UC does not consent to this disclosure of 
information and is 14 years of age or older and ORR has determined the 
victim is able to make an independent decision.



Sec.411.62  Protection duties.

    If a care provider facility employee, volunteer, or contractor 
reasonably believes that a UC is subject to substantial risk of imminent 
sexual abuse or sexual harassment, he or she must take immediate action 
to protect the UC.



Sec.411.63  Reporting to other care provider facilities and DHS.

    (a) Upon receiving an allegation that a UC was sexually abused or 
sexually harassed while at another care provider facility, the care 
provider facility whose staff received the allegation must immediately 
notify ORR, but no later than 24 hours after receiving the allegation. 
ORR will then notify the care provider facility where the alleged abuse 
or harassment occurred.
    (b) The care provider facility must document that it provided such 
notification to ORR.
    (c) The care provider facility that receives such notification, to 
the extent that such care provider facility is covered by this part, 
must ensure that the allegation is referred for investigation in 
accordance with these standards.
    (d) Upon receiving an allegation that a UC was sexually abused or 
sexually harassed while in DHS custody, the care provider facility whose 
staff received the allegation must immediately notify ORR, but no later 
than 24 hours after receiving an allegation. ORR will then report the 
allegation to DHS in accordance with DHS policies and procedures.
    (e) The care provider facility must document that it provided such 
notification to ORR.



Sec.411.64  Responder duties.

    (a) Upon learning of an allegation that a UC was sexually abused 
while in an ORR care provider facility, the first care provider facility 
staff member to respond to the report must be required to:
    (1) Separate the alleged victim, abuser, and any witnesses;
    (2) Preserve and protect, to the greatest extent possible, any crime 
scene until the appropriate authorities can take steps to collect any 
evidence;
    (3) If the abuse occurred within a time period that still allows for 
the collection of physical evidence, request that the alleged victim not 
take any actions that could destroy physical evidence, including, as 
appropriate, washing, brush teeth, changing clothes, urinating, 
defecating, smoking, drinking, or eating; and
    (4) If the abuse occurred within a time period that still allows for 
the collection of physical evidence, request that the alleged abuser(s) 
and/or witnesses, as necessary, do not take any actions that could 
destroy physical evidence, including, as appropriate, washing, brushing 
teeth, changing clothes, urinating, defecating, smoking, drinking, or 
eating.
    (b) [Reserved]



Sec.411.65  Coordinated response.

    (a) Care provider facilities must develop a written institutional 
plan to coordinate actions taken by staff first responders, medical and 
mental health practitioners, outside investigators, victim advocates, 
and care provider facility leadership in response to an incident of 
sexual abuse to ensure that victims receive all necessary immediate and 
ongoing medical, mental health, and support services and that 
investigators are able to obtain usable evidence. ORR must approve the 
written institutional plan.
    (b) Care provider facilities must use a coordinated, 
multidisciplinary team approach to responding to sexual abuse.
    (c) If a victim of sexual abuse is transferred between ORR care 
provider facilities, ORR must, as permitted by law, inform the receiving 
care provider facility of the incident and the victim's

[[Page 423]]

potential need for medical or social services.
    (d) If a victim of sexual abuse is transferred from an ORR care 
provider facility to a non-ORR facility or sponsor, ORR must, as 
permitted by law, inform the receiving facility or sponsor of the 
incident and the victim's potential need for medical or social services, 
unless the victim requests otherwise.



Sec.411.66  Protection of UCs from contact with alleged abusers.

    ORR and care provider facility staff, contractors, and volunteers 
suspected of perpetrating sexual abuse or sexual harassment must be 
suspended from all duties that would involve or allow access to UCs 
pending the outcome of an investigation.



Sec.411.67  Protection against retaliation.

    Care provider facility staff, contractors, volunteers, and UCs must 
not retaliate against any person who reports, complains about, or 
participates in an investigation of alleged sexual abuse or sexual 
harassment. For the remainder of the UC's stay in ORR custody following 
a report of sexual abuse or sexual harassment, ORR and the care provider 
facility must monitor to see if there are facts that may suggest 
possible retaliation by UCs or care provider facility staff and must 
promptly remedy any such retaliation. ORR and the care provider facility 
must also monitor to see if there are facts that may suggest possible 
retaliation by UCs or care provider facility staff against any staff 
member, contractor, or volunteer and must promptly remedy any such 
retaliation. Items ORR and the care provider facility should monitor 
include but are not limited to any UC disciplinary reports, housing or 
program changes, negative performance reviews, or reassignments of 
staff. Care provider facilities must discuss any changes with the 
appropriate UC or staff member as part of their efforts to determine if 
retaliation is taking place and, when confirmed, immediately takes steps 
to protect the UC or staff member.



Sec.411.68  Post-allegation protection.

    (a) Care provider facilities must ensure that UC victims of sexual 
abuse and sexual harassment are assigned to a supportive environment 
that represents the least restrictive housing option possible to keep 
the UC safe and secure, subject to the requirements of Sec.411.42.
    (b) The care provider facility should employ multiple protection 
measures to ensure the safety and security of UC victims of sexual abuse 
and sexual harassment, including but not limited to: Housing changes or 
transfers for UC victims and/or abusers or harassers; removal of alleged 
UC abusers or harassers from contact with victims; and emotional support 
services for UCs or staff who fear retaliation for reporting sexual 
abuse or sexual harassment or cooperating with investigations.
    (c) A UC victim may be placed on one-on-one supervision in order to 
protect the UC in exigent circumstances. Before taking the UC off of 
one-on-one supervision, the care provider facility must complete a re-
assessment taking into consideration any increased vulnerability of the 
UC as a result of the sexual abuse or sexual harassment. The re-
assessment must be completed as soon as possible and without delay so 
that the UC is not on one-on-one supervision longer than is absolutely 
necessary for safety and security reasons.



            Subpart H_ORR Incident Monitoring and Evaluation



Sec.411.71  ORR monitoring and evaluation of care provider facilities 
following an allegation of sexual abuse or sexual harassment.

    (a) Upon receiving an allegation of sexual abuse or sexual 
harassment that occurs at an ORR care provider facility, ORR will 
monitor and evaluate the care provider facility to ensure that the care 
provider facility complied with the requirements of this section or ORR 
policies and procedures. Upon conclusion of an outside investigation, 
ORR must review any available completed investigation reports to 
determine whether additional monitoring and evaluation activities are 
required.
    (b) ORR must develop written policies and procedures for incident 
monitoring and evaluation of sexual abuse and sexual harassment 
allegations, including provision requiring:

[[Page 424]]

    (1) Reviewing prior complaints and reports of sexual abuse and 
sexual harassment involving the suspected perpetrator;
    (2) Determining whether actions or failures to act at the care 
provider facility contributed to the abuse or harassment;
    (3) Determining if any ORR policies and procedures or relevant legal 
authorities were broken; and
    (4) Retention of such reports for as long as the alleged abuser or 
harasser is in ORR custody or employed by ORR or the care provider 
facility, plus ten years.
    (c) ORR must ensure that its incident monitoring and evaluation does 
not interfere with any ongoing investigation conducted by State or local 
Child Protective Services, the State or local licensing agency, or law 
enforcement.
    (d) When outside agencies investigate an allegation of sexual abuse 
or sexual harassment, the care provider facility and ORR must cooperate 
with outside investigators.



Sec.411.72  Reporting to UCs.

    Following an investigation by the appropriate investigating 
authority into a UC's allegation of sexual abuse or sexual harassment, 
ORR must notify the UC in his/her preferred language of the result of 
the investigation if the UC is still in ORR care and custody and where 
feasible. If a UC has been released from ORR care when an investigation 
is completed, ORR should attempt to notify the UC. ORR may encourage the 
investigating agency to also notify other complainants or additional 
parties notified of the allegation of the result of the investigation.



                 Subpart I_Interventions and Discipline



Sec.411.81  Disciplinary sanctions for staff.

    (a) Care provider facilities must take disciplinary action up to and 
including termination against care provider facility staff with a 
substantiated allegation of sexual abuse or sexual harassment against 
them or for violating ORR or the care provider facility's sexual abuse 
and sexual harassment policies and procedures.
    (b) Termination must be the presumptive disciplinary sanction for 
staff who engaged in sexual abuse or sexual harassment.
    (c) All terminations for violations of ORR and/or care provider 
facility sexual abuse and sexual harassment policies and procedures or 
resignations by staff, who would have been terminated if not for their 
resignation, must be reported to law enforcement agencies and to any 
relevant State or local licensing bodies.
    (d) Any staff member with a substantiated allegation of sexual abuse 
or sexual harassment against him/her at an ORR care provider facility is 
barred from employment at any ORR care provider facility.



Sec.411.82  Corrective actions for contractors and volunteers.

    (a) Any contractor or volunteer with a substantiated allegation of 
sexual abuse or sexual harassment against him/her must be prohibited 
from working or volunteering at the care provider facility and at any 
ORR care provider facility.
    (b) The care provider facility must take appropriate remedial 
measures and must consider whether to prohibit further contact with UCs 
by contractors or volunteers who have not engaged in sexual abuse or 
sexual harassment but violated other provisions within these standards, 
ORR sexual abuse and sexual harassment policies and procedures, or the 
care provider's sexual abuse and sexual harassment policies and 
procedures.



Sec.411.83  Interventions for UCs who engage in sexual abuse.

    UCs must receive appropriate interventions if they engage in UC-on-
UC sexual abuse. Decisions regarding which types of interventions to use 
in particular cases, including treatment, counseling, or educational 
programs, are made with the goal of promoting improved behavior by the 
UC and ensuring the safety of other UCs and staff. Intervention 
decisions should take into account the social, sexual, emotional, and 
cognitive development of the UC and the UC's mental health status. 
Incidents of UC-on-UC abuse

[[Page 425]]

are referred to all investigating authorities, including law enforcement 
entities.



                Subpart J_Medical and Mental Health Care



Sec.411.91  Medical and mental health assessments; history of sexual
abuse.

    (a) If the assessment pursuant to Sec.411.41 indicates that a UC 
experienced prior sexual victimization or perpetrated sexual abuse, the 
care provider facility must ensure that the UC is immediately referred 
to a qualified medical or mental health practitioner for medical and/or 
mental health follow-up as appropriate. Care provider facility staff 
must also ensure that all UCs disclosures are reported in accordance 
with these standards.
    (b) When a referral for medical follow-up is initiated, the care 
provider facility must ensure that the UC receives a health evaluation 
no later than seventy-two (72) hours after the referral.
    (c) When a referral for mental health follow-up is initiated, the 
care provider facility must ensure that the UC receives a mental health 
evaluation no later than seventy-two (72) hours after the referral.



Sec.411.92  Access to emergency medical and mental health services.

    (a) Care provider facilities must provide UC victims of sexual abuse 
timely, unimpeded access to emergency medical treatment, crisis 
intervention services, emergency contraception, and sexually transmitted 
infections prophylaxis, in accordance with professionally accepted 
standards of care, where appropriate under medical or mental health 
professional standards.
    (b) Care provider facilities must provide UC victims of sexual abuse 
access to all medical treatment and crisis intervention services 
regardless of whether the victim names the abuser or cooperates with any 
investigation arising out of the incident.



Sec.411.93  Ongoing medical and mental health care for sexual abuse
and sexual harassment victims and abusers.

    (a) Care provider facilities must offer ongoing medical and mental 
health evaluations and treatment to all UCs who are victimized by sexual 
abuse or sexual harassment while in ORR care and custody.
    (b) The evaluation and treatment of such victims must include, as 
appropriate, follow-up services, treatment plans, and, when necessary, 
referrals for continued care following their transfer to or placement in 
other care provider facilities or their release from ORR care and 
custody.
    (c) The care provider facility must provide victims with medical and 
mental health services consistent with the community level of care.
    (d) Care provider facilities must ensure that female UC victims of 
sexual abuse by a male abuser while in ORR care and custody are offered 
pregnancy tests, as necessary. If pregnancy results from an instance of 
sexual abuse, care provider facility must ensure that the victim 
receives timely and comprehensive information about all lawful 
pregnancy-related medical services and timely access to all lawful 
pregnancy-related medical services. In order for UCs to make informed 
decisions regarding medical services, including, as appropriate, medical 
services provided under Sec.411.92, care provider facilities should 
engage the UC in discussions with family members or attorneys of record 
in accordance with Sec.411.55 to the extent practicable and follow 
appropriate State laws regarding the age of consent for medical 
procedures.
    (e) Care provider facilities must ensure that UC victims of sexual 
abuse that occurred while in ORR care and custody are offered tests for 
sexually transmitted infections as medically appropriate.
    (f) Care provider facilities must ensure that UC victims are 
provided access to treatment services regardless of whether the victim 
names the abuser or cooperates with any investigation arising out of the 
incident.
    (g) The care provider facility must attempt to conduct a mental 
health

[[Page 426]]

evaluation of all known UC-on-UC abusers within seventy-two (72) hours 
of learning of such abuse and/or abuse history and offer treatment when 
deemed appropriate by mental health practitioners.



                  Subpart K_Data Collection and Review



Sec.411.101  Sexual abuse and sexual harassment incident reviews.

    (a) Care provider facilities must conduct sexual abuse or sexual 
harassment incident reviews at the conclusion of every investigation of 
sexual abuse or sexual harassment and, where the allegation was either 
substantiated or unable to be substantiated but not determined to be 
unfounded, prepare a written report recommending whether the incident 
review and/or investigation indicates that a change in policy or 
practice could better prevent, detect, or respond to sexual abuse and 
sexual harassment. The care provider facility must implement the 
recommendations for improvement or must document its reason for not 
doing so in a written response. Both the report and response must be 
forwarded to ORR's Prevention of Sexual Abuse Coordinator. Care provider 
facilities also must collect accurate, uniform data for every reported 
incident of sexual abuse and sexual harassment using a standardized 
instrument and set of definitions.
    (b) Care provider facilities must conduct an annual review of all 
sexual abuse and sexual harassment investigations and resulting incident 
reviews to assess and improve sexual abuse and sexual harassment 
detection, prevention, and response efforts. The results and findings of 
the annual review must be provided to ORR's Prevention of Sexual Abuse 
Coordinator.



Sec.411.102  Data collection.

    (a) Care provider facilities must maintain all case records 
associated with claims of sexual abuse and sexual harassment, including 
incident reports, investigative reports, offender information, case 
disposition, medical and counseling evaluation findings, and 
recommendations for post-release treatment and/or counseling in 
accordance with these standards and applicable Federal and State laws 
and ORR policies and procedures.
    (b) On an ongoing basis, the PSA Compliance Manager must work with 
care provider facility management and ORR to share data regarding 
effective care provider facility response methods to sexual abuse and 
sexual harassment.
    (c) On a quarterly basis, the PSA Compliance Manager must prepare a 
report for ORR compiling information received about all incidents and 
allegations of sexual abuse and sexual harassment of UCs in the care 
provider facility during the period covered by the report as well as 
ongoing investigations and other pending cases.
    (d) On an annual basis, the PSA Compliance Manager must aggregate 
incident-based sexual abuse and sexual harassment data, including the 
number of reported sexual abuse and sexual harassment allegations 
determined to be substantiated, unsubstantiated, unfounded, or for which 
an investigation is ongoing. For each incident, information concerning 
the following also must be included:
    (1) The date, time, location, and nature of the incident;
    (2) The demographic background of the victim and perpetrator 
(including citizenship, nationality, age, and sex) that excludes 
specific identifying information;
    (3) The reporting timeline for the incident (including the name of 
the individual who reported the incident; the date and time the report 
was received by the care provider facility; and the date and time the 
incident was reported to ORR);
    (4) Any injuries sustained by the victim;
    (5) Post-report follow-up responses and action taken by the care 
provider facility (e.g., housing placement changes, medical 
examinations, mental health counseling);
    (6) Any interventions imposed on the perpetrator.
    (e) Care provider facilities must provide all data described in this 
section from the previous calendar year to ORR no later than August 31.

[[Page 427]]



Sec.411.103  Data review for corrective action.

    (a) ORR must review data collected and aggregated pursuant to 
Sec. Sec.411.101 and 411.102 in order to assess and improve the 
effectiveness of its sexual abuse and sexual harassment prevention, 
detection, and response policies, procedures, practices, and training, 
including:
    (1) Identifying problem areas;
    (2) Taking corrective actions on an ongoing basis; and
    (3) Preparing an annual report of its findings and corrective 
actions for each care provider facility as well as ORR as a whole.
    (b) Such report must include a comparison of the current year's data 
and corrective actions with those from prior years and must provide an 
assessment of ORR's progress in preventing, detecting, and responding to 
sexual abuse and sexual harassment.
    (c) The Director of ORR must approve ORR's annual report on ORR's UC 
Program as a whole and make the report available to the public through 
its Web site or otherwise make the report readily available to the 
public.
    (d) ORR may redact specific material from the reports when necessary 
for safety and security reasons but must indicate the nature of the 
material redacted.



Sec.411.104  Data storage, publication, and destruction.

    (a) ORR must ensure that data collected pursuant to Sec. Sec.
411.101 and 411.102 is securely retained in accordance with Federal and 
State laws and ORR record retention policies and procedures.
    (b) ORR must make all aggregated sexual abuse and sexual harassment 
data from ORR care provider facilities with which it provides a grant to 
or contracts with, excluding secure care providers and traditional 
foster care providers, available to the public at least annually on its 
Web site consistent with existing ORR information disclosure policies 
and procedures.
    (c) Before making any aggregated sexual abuse and sexual harassment 
data publicly available, ORR must remove all personally identifiable 
information.
    (d) ORR must maintain sexual abuse and sexual harassment data for at 
least 10 years after the date of its initial collection unless Federal, 
State, or local law requires for the disposal of official information in 
less than 10 years.



                 Subpart L_Audits and Corrective Action



Sec.411.111  Frequency and scope of audits.

    (a) Within three years of February 22, 2016, each care provider 
facility that houses UCs will be audited at least once; and during each 
three-year period thereafter.
    (b) ORR may expedite an audit if it believes that a particular care 
provider facility may be experiencing problems related to sexual abuse 
or sexual harassment.
    (c) ORR must develop and issue an instrument that is coordinated 
with the HHS Office of the Inspector General that will provide guidance 
on the conduct and contents of the audit.
    (d) The auditor must review all relevant ORR-wide policies, 
procedures, reports, internal and external audits, and licensing 
requirements for each care provider facility type.
    (e) The audits must review, at a minimum, a sampling of relevant 
documents and other records and other information for the most recent 
one-year period.
    (f) The auditor must have access to, and must observe, all areas of 
the audited care provider facilities.
    (g) ORR and the care provider facility must provide the auditor with 
the relevant documentation to complete a thorough audit of the care 
provider facility.
    (h) The auditor must retain and preserve all documentation 
(including, e.g., videotapes and interview notes) relied upon in making 
audit determinations. Such documentation must be provided to ORR upon 
request.
    (i) The auditor must interview a representative sample of UCs and 
staff, and the care provider facility must make space available suitable 
for such interviews.
    (j) The auditor must review a sampling of any available video 
footage and other electronically available data

[[Page 428]]

that may be relevant to the provisions being audited.
    (k) The auditor must be permitted to conduct private interviews with 
UCs.
    (l) UCs must be permitted to send confidential information or 
correspondence to the auditor.
    (m) Auditors must attempt to solicit input from community-based or 
victim advocates who may have insight into relevant conditions in the 
care provider facility.
    (n) All sensitive and confidential information provided to auditors 
will include appropriate designations and limitations on further 
dissemination. Auditors must follow appropriate procedures for handling 
and safeguarding such information.
    (o) Care provider facilities bear the affirmative burden on 
demonstrating compliance with the standards to the auditor.



Sec.411.112  Auditor qualifications.

    (a) An audit must be conducted by an entity or individual with 
relevant auditing or evaluation experience and is external to ORR.
    (b) All auditors must be certified by ORR, and ORR must develop and 
issue procedures regarding the certification process within six months 
of December 24, 2014, which must include training requirements.
    (c) No audit may be conducted by an auditor who received financial 
compensation from the care provider, the care provider's agency, or ORR 
(except for compensation received for conducting other audits) within 
the three years prior to ORR's retention of the auditor.
    (d) ORR, the care provider, or the care provider's agency must not 
employ, contract with, or otherwise financially compensate the auditor 
for three years subsequent to ORR's retention of the auditor, with the 
exception of contracting for subsequent audits.



Sec.411.113  Audit contents and findings.

    (a) Each audit must include a certification by the auditor that no 
conflict of interest exists with respect to his or her ability to 
conduct an audit of the care provider facility under review.
    (b) Audit reports must state whether care provider facility policies 
and procedures comply with all standards.
    (c) For each of these standards, the auditor must determine whether 
the audited care provider facility reaches one of the following 
findings: Exceeds Standard (substantially exceeds requirement of 
standard); Meets Standard (substantial compliance; complies in all 
material ways with the standard for the relevant review period); Does 
Not Meet Standard (requires corrective action). The audit summary must 
indicate, among other things, the number of provisions the care provider 
facility achieved at each grade level.
    (d) Audit reports must describe the methodology, sampling sizes, and 
basis for the auditor's conclusions with regard to each standard 
provision for each audited care provider facility and must include 
recommendations for any required correction action.
    (e) Auditors must redact any personally identifiable information of 
UCs or staff information from their reports but must provide such 
information to ORR upon request.
    (f) ORR must ensure that aggregated data on final audit reports is 
published on ORR's Web site, or is otherwise made readily available to 
the public. ORR must redact any sensitive or confidential information 
prior to providing such reports publicly.



Sec.411.114  Audit corrective action plan.

    (a) A finding of ``Does Not Meet Standard'' with one or more 
standards must trigger a 90-day corrective action period.
    (b) The auditor and ORR must jointly develop a corrective action 
plan to achieve compliance.
    (c) The auditor must take necessary and appropriate steps to verify 
implementation of the corrective action plan, such as reviewing updated 
policies and procedures or re-inspecting portions of a care provider 
facility.
    (d) After the 180-day corrective action period ends, the auditor 
must issue a final determination as to whether the care provider 
facility achieved compliance with those standards requiring corrective 
action.
    (e) If the care provider facility does not achieve compliance with 
each

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standard, it may (at its discretion and cost) request a subsequent audit 
once it believes that it achieved compliance.



Sec.411.115  Audit appeals.

    (a) A care provider facility may file an appeal with ORR regarding 
any specific audit finding that it believes to be incorrect. Such appeal 
must be filed within 90 days of the auditor's final determination.
    (b) If ORR determines that the care provider facility stated good 
cause for re-evaluation, the care provider facility may commission a re-
audit by an auditor mutually agreed upon by ORR and the care provider 
facility. The care provider facility must bear the costs of the re-
audit.
    (c) The findings of the re-audit are considered final.

                        PARTS 412	499 [RESERVED]

[[Page 431]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.


  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 433]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2021)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--599)
        VI  National Capital Planning Commission (Parts 600--699)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Guidance (Parts 200--
                299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300--
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
         X  Department of the Treasury (Parts 1000--1099)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Department of Housing and Urban Development (Parts 
                2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)

[[Page 434]]

     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
      XXIX  Department of Labor (Parts 2900--2999)
       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
     XXXVI  Office of National Drug Control Policy, Executive 
                Office of the President (Parts 3600--3699)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)
       LIX  Gulf Coast Ecosystem Restoration Council (Parts 5900--
                5999)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Office of Personnel Management and Office of the 
                Director of National Intelligence (Parts 1400--
                1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600--3699)

[[Page 435]]

    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  U.S. International Development Finance Corporation 
                (Parts 4300--4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
     XXXVI  Department of Homeland Security (Parts 4600--4699)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)

[[Page 436]]

     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
    XCVIII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)
         C  National Council on Disability (Parts 10000--10049)
        CI  National Mediation Board (Parts 10100--10199)
       CII  U.S. Office of Special Counsel (Parts 10200--10299)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--199)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Agricultural Marketing Service (Federal Grain 
                Inspection Service, Fair Trade Practices Program), 
                Department of Agriculture (Parts 800--899)

[[Page 437]]

        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  [Reserved]
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  [Reserved]
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 438]]

         L  Rural Business-Cooperative Service, and Rural 
                Utilities Service, Department of Agriculture 
                (Parts 5000--5099)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Agricultural Marketing Service (Fair Trade Practices 
                Program), Department of Agriculture (Parts 200--
                299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  [Reserved]
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  [Reserved]
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)

[[Page 439]]

        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research, Department of the 
                Treasury (Parts 1600--1699)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)

[[Page 440]]

      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  National Technical Information Service, Department of 
                Commerce (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
        XV  Office of the Under-Secretary for Economic Affairs, 
                Department of Commerce (Parts 1500--1599)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399) [Reserved]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599) [Reserved]

[[Page 441]]

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Agency for Global Media (Parts 500--599)
       VII  U.S. International Development Finance Corporation 
                (Parts 700--799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millennium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

[[Page 442]]

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799) 
                [Reserved]
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799) [Reserved]

[[Page 443]]

        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099) [Reserved]
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--899)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900--999)
        VI  Office of the Assistant Secretary, Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--799)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)

[[Page 444]]

        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance

[[Page 445]]

         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of Investment Security, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Department of Defense, Defense Logistics Agency (Parts 
                1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army, Department 
                of Defense (Parts 200--399)
        IV  Great Lakes St. Lawrence Seaway Development 
                Corporation, Department of Transportation (Parts 
                400--499)

[[Page 446]]

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Career, Technical, and Adult Education, 
                Department of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599) 
                [Reserved]
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799) 
                [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  [Reserved]
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  U.S. Copyright Office, Library of Congress (Parts 
                200--299)

[[Page 447]]

       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  National Institute of Standards and Technology, 
                Department of Commerce (Parts 400--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)
        IX  Federal Permitting Improvement Steering Council (Part 
                1900)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)

[[Page 448]]

       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management
       201  Federal Acquisition Security Council (Part 201)
            Subtitle E [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
   II--III  [Reserved]
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--699)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1099)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

[[Page 449]]

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
        IX  Denali Commission (Parts 900--999)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Administration for Children and Families, Department 
                of Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission of Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Parts 2300--2399)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

[[Page 450]]

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)
         V  The First Responder Network Authority (Parts 500--599)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)

[[Page 451]]

        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199) [Reserved]
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399) 
                [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)

[[Page 452]]

        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

[[Page 453]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2021)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     5, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, VIII, IX, X, XI; 9, 
                                                  II
Agricultural Research Service                     7, V
Agriculture, Department of                        2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, VIII, IX, X, XI; 9, 
                                                  II
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force, Department of                          32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 454]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI; 38, II
Army, Department of                               32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
  Federal Acquisition Regulation                  48, 19
Career, Technical, and Adult Education, Office    34, IV
     of
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazard Investigation Board    40, VI
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X, XIII
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce, Department of                           2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Affairs, Office of the Under-          15, XV
       Secretary for
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II; 37, IV
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Technical Information Service          15, XI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Secretary of Commerce, Office of                15, Subtitle A
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I
Defense, Department of                            2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III; 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I

[[Page 455]]

  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy, Department of                             32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Denali Commission                                 45, IX
Disability, National Council on                   5, C; 34, XII
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Office of the Under-Secretary   15, XV
     for
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Career, Technical, and Adult Education, Office  34, IV
       of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Policy, National Commission for        1, IV
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 5, XXIII; 10, II, 
                                                  III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99
  National Drug Control Policy, Office of         2, XXXVI; 21, III
  National Security Council                       32, XXI; 47, II
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
     States
[[Page 456]]

Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Permitting Improvement Steering Council   40, IX
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission of                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102

[[Page 457]]

  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes St. Lawrence Seaway Development       33, IV
     Corporation
Gulf Coast Ecosystem Restoration Council          2, LIX; 40, VIII
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X, XIII
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 5, XXXVI; 6, I; 8, 
                                                  I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Housing and Urban Development, Department of      2, XXIV; 5, LXV; 24, 
                                                  Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Independent Counsel, Offices of                   28, VI
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
   Secretary
[[Page 458]]

Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior, Department of                           2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Safety and Environmental Enforcement, Bureau    30, II
       of
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Development Finance Corporation,    5, XXXIII; 22, VII
     U.S.
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice, Department of                            2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Independent Counsel, Offices of                 28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor, Department of                              2, XXIX; 5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Federal Acquisition Regulation                  48, 29

[[Page 459]]

  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I, VI
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Libraries and Information Science, National       45, XVII
     Commission on
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Military Compensation and Retirement              5, XCIX
     Modernization Commission
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV, VI
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           2, XXXVI; 21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Geospatial-Intelligence Agency           32, I
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II; 37, IV
National Intelligence, Office of Director of      5, IV; 32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          5, CI; 29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI; 47, II

[[Page 460]]

National Technical Information Service            15, XI
National Telecommunications and Information       15, XXIII; 47, III, IV, V
     Administration
National Transportation Safety Board              49, VIII
Natural Resource Revenue, Office of               30, XII
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy, Department of                               32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, IV, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Contracts, Department of Labor             41, 50
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Utilities Service                           7, XVII, XVIII, XLII
Safety and Environmental Enforcement, Bureau of   30, II
Science and Technology Policy, Office of, and     32, XXIV; 47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
   Office of
[[Page 461]]

State, Department of                              2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Tennessee Valley Authority                        5, LXIX; 18, XIII
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Great Lakes St. Lawrence Seaway Development     33, IV
       Corporation
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury, Department of the                       2, X; 5, XXI; 12, XV; 17, 
                                                  IV; 31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
Truman, Harry S. Scholarship Foundation           45, XVIII
United States Agency for Global Media             22, V
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
U.S. Copyright Office                             37, II
U.S. Office of Special Counsel                    5, CII
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs, Department of                   2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I, VII
World Agricultural Outlook Board                  7, XXXVIII

[[Page 463]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2016 are enumerated in the following list. Entries indicate the 
nature of the changes effected. Page numbers refer to Federal Register 
pages. The user should consult the entries for chapters, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.govinfo.gov. For changes to this volume of the 
CFR prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 
1964-1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. 
The ``List of CFR Sections Affected 1986-2000'' is available at 
www.govinfo.gov.

                                  2016

45 CFR
                                                                   81 FR
                                                                    Page
Chapter II
261.64 (c) amended; interim.........................................3020
262 Authority citation revised......................................2104
262.1 (a)(16) added; (c)(2) revised.................................2104
262.2 (e) added.....................................................2105
262.3 (g) added.....................................................2105
    (a) and (f) amended; interim....................................3020
263.2 (e)(1) amended; interim.......................................3020
263.11 (b) amended; interim.........................................3020
263.14 Amended; interim.............................................3020
264 Authority citation revised......................................2105
264.0 (b) amended...................................................2105
264.60 Added........................................................2105
264.61 Added........................................................2105
265.7 (d)(4) and (f) amended; interim...............................3020
265.9 (b)(10) and (11) added........................................2105
286.30 (c) and (f)(2) amended; interim..............................3020
286.45 (c) and (d) amended; interim.................................3020
286.200 (b) amended; interim........................................3020
286.205 (b)(3)(iv) and (c) amended; interim.........................3020
286.270 (b) amended; interim........................................3020
287.60 (a) and (b) amended; interim.................................3021
Chapter III
301.1 Amended......................................................93560
301.13 Introductory text amended; (e) and (f) revised..............93560
301.15 (e) revised; interim.........................................3021
    (a) through (d) revised; (e) removed...........................93560
302.14 Amended; interim.............................................3021
    Revised........................................................93561
302.15 (a)(7) amended; interim......................................3021
    (a)(6) amended; (a)(7) revised; (a)(8) added...................93561
302.32 Heading, introductory text, (a), (b) introductory text and 
        (1) revised................................................93561
302.33 (a)(4) revised; (a)(6) added; (d)(2) amended................93561
302.34 Amended.....................................................93562
302.38 Revised.....................................................93562
302.50 (b)(2) revised..............................................93562
302.56 Revised.....................................................93562
302.65 (a), (c)(1), (2), (5), (6) and (7) amended; (b) and (c)(3) 
        revised....................................................93563
302.70 (a)(5)(v) and (8) revised; (d)(2) amended...................93563
302.85 (a)(1) and (b)(2)(ii) revised...............................93563
303 Authority citation revised.....................................93563
303.2 (a)(2) amended; (a)(3) revised...............................93563
303.3 (b)(1) revised; (b)(5) amended...............................93563
303.4 (b) revised..................................................93563

[[Page 464]]

303.5 (g)(6) revised...............................................93564
303.6 (c)(3) amended; (c)(4) redesignated as (c)(5); new (c)(4) 
        added......................................................93564
303.7 (c)(10) and (d)(10) revised; (f) added.......................93564
303.8 (b)(2) through (6) redesignated as (b)(3) through (7); new 
        (b)(2) added; new (b)(7) and (d) revised; (c) amended......93564
303.11 (d) amended; interim.........................................3021
    Revised........................................................93564
303.21 (f) revised.................................................61582
303.31 (a)(2), (3), (b)(1), (2), (3) introductory text, (i) and 
        (4) revised................................................93564
303.72 (d)(1) revised..............................................93566
303.100 (e)(1) introductory text revised; (h) and (i) added........93566
304.10 Amended; interim.............................................3021
    Revised........................................................93566
304.12 (c)(4) and (5) removed......................................93567
304.20 (b)(1)(iii) amended; interim.................................3021
    (a)(1), (b) introductory text, (1)(iii) introductory text, 
(viii) introductory text, (A), (ix), (2) introductory text, (vii), 
(3) introductory text and (11) revised; (b)(1)(viii)(C), (5)(v) 
and (9) amended; (b)(3)(v) redesignated as (b)(3)(vii); 
(b)(1)(viii)(D), (E), new (3)(v), (vi) and (12) added; (c) and (d) 
removed............................................................93567
304.21 (a) introductory text and (1) revised.......................93567
304.23 Revised.....................................................93567
304.25 (a) amended; interim.........................................3021
    (b) amended....................................................93568
304.26 (a)(1) revised; (b) and (c) removed.........................93568
304.40 (a)(2) revised..............................................93568
305 Authority citation revised.....................................93568
305.35 (d) amended; (e) redesignated as (f); new (e) added.........93568
305.36 Removed.....................................................93568
305.63 (d) introductory text revised...............................93568
305.64 (c) amended.................................................93568
305.66 (a) revised.................................................93568
307.5 (c)(3) revised...............................................93568
307.11 (c)(3) revised..............................................93568
308.2 (b)(2)(ii), (c)(3)(i) and (f)(2)(i) revised..................93568
309 Authority citation revised.....................................93569
309.85 (b) amended; interim.........................................3021
309.115 (b)(2) and (c)(2) amended..................................93569
309.130 (d)(3) and (h) amended; interim.............................3021
    (b)(3) and (4) revised.........................................93569
309.145 (a)(3) introductory text and (o) introductory text 
        amended; interim............................................3021
    (a)(3) introductory text revised...............................93569
309.150 (d) amended; interim........................................3021
309.160 Amended; interim............................................3021
    Amended........................................................93569
Chapter IV
400.11 (c) amended; interim.........................................3021
400.28 (a) introductory text amended; interim.......................3021

                                2017-2018

                       (No regulations published)

                                  2019

45 CFR
                                                                   84 FR
                                                                    Page
Chapter IV
410 Added; eff. 10-22-19...........................................44530

                                  2020

45 CFR
                                                                   85 FR
                                                                    Page
Subtitle B
Chapter III
302.33 Correction: (e) heading, (1) introductory text, (2), (4), 
        and (5) amended............................................35207
302.51 Correction: (a)(5)(i) and (ii) amended......................35207
303.7 Correction: (f) amended......................................35207
303.11 Correction: (b)(9)(ii) revised..............................35207
303.71 Correction: removed.........................................35207
303.73 Correction: removed.........................................35207
303.108 Correction: heading and (c) amended........................35207
305.0 Amended......................................................72911
305.65 Correction: (b) amended.....................................35208
307.5 (d)(3) amended...............................................72911
307.11 Correction: (c)(3)(i) and (ii) revised; (c)(3)(iii) added 
                                                                   35208
307.30 Correction: removed.........................................35208
307.31 Correction: removed.........................................35208
309.20 Correction: (b) amended.....................................35208
309.75 Correction: (d) amended.....................................35208

[[Page 465]]

309.155 Correction: (g) amended....................................35208
309.170 Correction: (a) amended....................................35208

                                  2021

  (Regulations published from January 1, 2021, through October 1, 2021)

45 CFR
                                                                   86 FR
                                                                    Page
Subtitle B
Chapter II
200 Added...........................................................5758
200 Regulation at 86 FR 5758 eff. date delayed to 3-22-22..........15404
Chapter III
300 Added...........................................................5759
300 Regulation at 86 FR 5752 eff. date delayed to 3-22-22..........15404
Chapter IV
403 Added...........................................................5760
403 Regulation at 86 FR 5760 eff. date delayed to 3-22-22..........15404


                                  [all]