[Federal Register Volume 59, Number 52 (Thursday, March 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6136]


[[Page Unknown]]

[Federal Register: March 17, 1994]


_______________________________________________________________________

Part III





Department of Health and Human Services





_______________________________________________________________________



Administration on Aging



_______________________________________________________________________



45 CFR Part 1321




Grants for State and Community Programs on Aging; Proposed Rule
DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration on Aging

45 CFR Part 1321

RIN 6666-1212

 
Grants for State and Community Programs on Aging

AGENCY: Department of Health and Human Services (HHS), Administration 
on Aging (AoA).

ACTION: Notice of proposed rulemaking.

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

SUMMARY: This Notice of Proposed Rulemaking (NPRM) requests comments 
from the public on proposed changes to rules concerning grants for 
State and community programs on aging. These changes are required to 
clarify and implement Older Americans Act (Act) Sections 305(a)(2)(C), 
305(a)(2)(D), 307(b)(1), 307(c), 307(d), and 307(e) as amended by the 
1992 amendments to the Act. The Act now requires the Commissioner on 
Aging to review and approve each State's intrastate formula for the 
distribution of funds under Title III of the Act, and requires the 
State to specify the bases and impact of its intrastate funding formula 
on each Planning and Service Area (PSA) in its State plan.

DATES: In order to be considered, comments on this proposed rule must 
be received on or before May 16, 1994.

ADDRESSES: Please address comments to: Edwin Walker, Associate 
Commissioner, Office of State and Community Programs, Administration on 
Aging, room 4737, 330 Independence Avenue SW., Washington, DC 20201.
    Beginning 14 days after close of the comment period, comments will 
be available for public inspection in room 4740, 330 Independence 
Avenue SW., Washington, DC 20201, Monday through Friday between the 
hours of 9 a.m. and 4 p.m.

FOR FURTHER INFORMATION CONTACT:
David Bunoski, (202) 260-0669.

SUPPLEMENTARY INFORMATION:

I. Program Background and Purpose

    The Older Americans Act was first enacted in 1965 and was amended 
eleven times between 1965 and 1992. The President signed the Older 
Americans Act Amendments of 1992 (Pub. L. 102-375) on September 30, 
1992.
    On February 23, 1993, the Secretary of the Department of Health and 
Human Services, Donna E. Shalala, pursuant to the authority permitted 
by section 2 of Reorganization Plan No. 1 of 1953, 42 U.S.C. 3501, and 
5 U.S.C. 301, designated the position of Assistant Secretary for Aging 
to perform the duties and functions of the Commissioner of Aging. The 
term ``Commissioner'' will be used in these regulations, however, in 
order to comport with Public Law 102-375, which retains the title of 
Commissioner for the head of the Administration on Aging.
    The 1992 amendments to the Older Americans Act reemphasize the 
intention of the Congress to target services and resources on the needs 
and problems of those older individuals identified as having the 
greatest economic need, the greatest social need, and those who are 
low-income minority. These amendments, for the first time, require that 
approval of the State plan be dependent on approval of the intrastate 
funding formula. The basis of these regulations are those provisions of 
the 1992 amendments to the Act that directly affect a State's 
intrastate funding formula and which:
     Require the Commissioner on Aging under section 304(c) of 
the Act to approve a State's intrastate funding formula prior to the 
release of Title III funds;
     Require State agencies under section 307(a)(33) of the Act 
to include descriptive statements about the intrastate funding 
formula's assumptions, goals, and outcomes based on the allocation of 
funds to each Planning and Service Area; and
     Require the Commissioner on Aging under section 
305(a)(2)(C) to assist States in the development of their intrastate 
funding formulas by providing them with guidelines.

II. Purpose of the NPRM

    The Administration on Aging (AoA) is proposing to revise the 
current rules governing the State agencies' development and submission 
of an intrastate funding formula by providing new guidance and to amend 
the current rules affecting State plans and State plan submissions. 
These revisions are designed to be consistent with those provisions in 
the 1992 amendments to the Act that require greater targeting on those 
older individuals in greatest economic need, greatest social need, and 
low-income minority older individuals.
    The 1992 amendments to the Older Americans Act (Pub. L. 102-375) 
now require States to submit their intrastate funding formulas to the 
Commissioner on Aging for approval, rather than only for review and 
comment, as was the case prior to the 1992 amendments. The amendments 
also require the Commissioner to provide guidance to States in the 
development of their intrastate funding formulas. AoA has interpreted 
the amendments to require that this guidance be in addition to the 
language contained in section 305(a)(2)(C) of the statute which 
requires State agencies to take into account the geographic 
distribution, greatest economic and greatest social need of older 
individuals in the development of their intrastate funding formulas. If 
the Commissioner does not approve the intrastate funding formula, a new 
requirement under section 304(c) requires the Commissioner to withhold 
the State's allotment of funds.
    In order to comply with these new statutory requirements as well as 
address the intent of Congress that targeting services and resources on 
the needs and problems of those older individuals identified as having 
the greatest economic need, the greatest social need, and those who are 
low-income minority be accomplished through the intrastate funding 
formula, the Commissioner has developed standards for review and 
provided directions to a State agency on how to evaluate whether its 
formula meets those standards. The proposed regulations are designed to 
provide a State agency with flexibility to either maintain its current 
formula or, if necessary to allow for the development of a modified or 
new formula that addresses the requirements set out by Congress in 
section 305(a)(2)(C) of the Older Americans Act. These proposed 
regulations require that careful consideration be given to the 
geographic distribution of older individuals in the State, and the 
distribution among the planning and service areas of older individuals 
with greatest economic need and older individuals with greatest social 
need, with particular attention to low-income minority individuals.
    Section 304(c) now requires the Commissioner to withhold funds if 
the Commissioner does not approve a State's intrastate funding formula. 
In the course of developing these intrastate funding formulas, States 
are now required, under sections 305(a)(2)(C) and 305(d), to publish 
their intrastate funding formulas for review and comment by the public. 
This publication for review and comment must include: ``(1) A 
descriptive statement of the formula's assumptions and goals, and the 
application of the definitions of greatest economic or social need; (2) 
a numerical statement of the actual funding formula to be used; (3) a 
listing of the population, economic, and social data to be used for 
each planning and service area in the State; and (4) a demonstration of 
the allocation of funds, pursuant to the funding formula, to each 
planning and service area in the State.'' In addition, section 
307(a)(33) now requires the State plan to include the statement and the 
demonstration required by paragraphs (2) and (4) of section 305(d), and 
provides that the Commissioner may not approve the State plan unless 
the Commissioner approves the statement and demonstration.
    In light of these new requirements, AoA believes it is of critical 
importance that States have as much time as possible to review their 
current intrastate funding formulas, and, if necessary, modify them or 
develop new formulas; to consult with area agencies as required in 
section 305(a)(2)(C); to publish their plans for review and comment as 
required in section 305(d); and to seek and obtain legislation or 
legislative approval prior to submitting the formulas for approval, if 
necessary. To ensure that States have the time to accomplish these 
steps, AoA is publishing this NPRM separately from, and in advance of, 
its notice of other rules being developed in response to the 1992 
amendments to the Act.

III. Summary of the Provisions of the NPRM

Section 1321--Grants to State and Community Programs on Aging

    1321.3  Definitions--The term ``low-income'' is added in order to 
clarify its direct relationship to the new definition of poverty added 
to Title I by the 1992 amendments to the Act, and to assist State 
agencies in targeting resources when they develop their intrastate 
funding formulas.
    The term ``medically underserved areas,'' as used in 
Sec. 1321.37(g) of this proposed rule, is added to clarify where funds 
should be targeted in developing a method to allocate funds provided 
under section 303(f) of the Act.
    The term ``minority'' as defined in 28 CFR, subpart F, Sec. 42.402 
(e) is added in order to clarify who is a minority for the purposes of 
assisting States to determine who is a low-income minority older 
individual in developing their targeting strategies and activities as 
well as developing intrastate funding formulas.
    The term ``periodic,'' as used in sections 306(a)(6) and 307(a)(8) 
of the Act and part 1321 with respect to evaluations of, reports on, 
and public hearings on, activities carried out under State and area 
plans, is added to clarify that the term means, at a minimum, once each 
fiscal year (annually).
    The term ``rural area'' is defined as required by section 
307(a)(37) of the Act, to clarify the definition of rural area within a 
planning and service area, and to assist States in identifying actual 
and projected additional costs of providing services in rural areas as 
required under section 307(a)(37) as well as in the development of 
their intrastate funding formulas.
    1321.17  Content of State plan--this subjection is amended to 
reflect and clarify additional requirements in the 1992 amendments to 
the Act, to remove those sections and paragraphs that are now 
unnecessary because they are set forth in the Act under the 1992 
amendments, and to assure that States provide adequate descriptions and 
exhibits in the State plan to assist the public in understanding 
changes required by the 1992 amendments. The NPRM proposes to remove 
the assurances now required under current Sec. 1321.17(f)(1)-(3), (8)-
(10), (13), and (15) as unnecessary because they are now reflected in 
the 1992 amendments to the Act. The following new requirements are 
proposed pursuant to the 1992 amendments:
    (1) Section 1321.17(c)(1)-(4) is amended to require the State to 
show the distribution of Title III funds using the intrastate funding 
formula developed under section 305(a)(2)(C) of the Act, including--
     A description of how the State will meet the rural 
expenditure requirements under seciton 307(a)(3)(B) of the Act,
     An exhibit that details how the State meets the 
requirements of 307(a)(37) of the Act to identify total actual and 
projected costs of providing services in rural areas,
     A comparison between the current intrastate funding 
formula and the proposed one using the best available demographic data, 
the Commissioner's guidelines, the geographic distribution of older 
individuals, and of those older individuals in greatest economic and 
greatest social need with particular attention to low-income minority 
older individuals, as required by section 305(a)(2)(C) of the Act 
including:
     A numerical statement comparing the current intrastate 
funding formula to the proposed one under section 305(a)(2)(C);
     A comparison of the population, economic, and social data 
for each planning and service area used for the current and for the 
proposed formulas; and
     A comparison and demonstration of the allocation of Title 
III funds allocated to each planning and service area under the current 
intrastate funding formula and the one proposed;
    (2) Section 1321.17(c)(5) is added to assist AoA in monitoring and 
assessing the State's progress in meeting the new requirements under 
section 307(a)(37) of the Act which require that State plans identify, 
for each fiscal year of the plan, the actual and projected additional 
costs for providing services to older individuals residing in rural 
areas. In addition, the information obtained under this section will 
assist AoA in carrying out the requirements of section 202(b)(27)(A) of 
the Act which requires the Commissioner to ``conduct a study to 
determine ways in which Federal funds might be more effectively 
targeted to low-income minority older individuals, and older 
individuals residing in rural areas, to better meet the needs of States 
with a disproportionate number of older individuals with greatest 
economic need and older individuals with greatest social need.'' It is 
our expectation that providing this information in the State plan will 
greatly reduce the paperwork burden that would be incurred with a 
separate national study conducted solely for this purpose. Accordingly, 
using the definition of rural areas in Sec. 1321.3 of this NPRM, we 
propose that each State plan include a table displaying planning and 
service areas (PSA's) ranked by the proportion of rural older 
individuals in each as a percentage of the rural population in the 
State; showing the distribution of Title III funds in each PSA under 
the current intrastate funding formula and under the proposed 
intrastate funding formula (IFF); and the source of the distribution 
information (which must by law be the best available data).

                                 Example                                
------------------------------------------------------------------------
                                                        Distribution of 
                  PSA's ranked     Distribution of         title III    
                  by percentage       title III          allocation to  
     PSA's          of rural     allocation to rural   rural areas under
                  population in  areas under current     proposed IFF   
                   the State             IFF           (assume no change
                                                        in allocation)  
------------------------------------------------------------------------
PSA-A                     20%#3  Placer County--$2    Placer County--$2 
                                  million; Census      million; Census  
                                  tracts 2 and 3--     tracts 2 and 3-- 
                                  $1.5 million.        $1 million.      
PSA-B                      4%#6  Rosemount City--     Rosemount City--  
                                  $300,000; Census     $300,000; Census 
                                  tract 7--$700,000.   tract 7--        
                                                       $700,000.        
PSA-C                     30%#1  Census tracts 11,    Census tracts 11, 
                                  16, 19--$4           16, 19--$4       
                                  million; Auburn      million; Auburn  
                                  township--$2         township--$2     
                                  million; Tuluga      million; Tuluga  
                                  County--$3 million.  County--$3       
                                                       million.         
PSA-D                      6%#5  Entire PSA--$1.5     Entire PSA--$1    
                                  million.             million.         
PSA-E                     15%#4  Empire County--$1.5  Empire County--   
                                  million; Census      $1.5 million;    
                                  tracts 21, 32, 11,   Census tracts 21,
                                  & 47--$1.5 million.  32, 11, & 47--1.5
                                                       million.         
PSA-F                     25%#2  Yolo County--$2      Yolo County--$2   
                                  million; Lake        million; Lake    
                                  County--$3           County--$3       
                                  million; Census      million; Census  
                                  tracts 53, 44, 39--  tracts 53, 44,   
                                  $2 million; Blythe   39--$2 million;  
                                  County--$1 million.  Blythe County--$2
                                                       million.         
                --------------------------------------------------------
      Total                100%  $26 million........  $26 million.      
------------------------------------------------------------------------

    In the above hypothetical example, the table shows the effect on 
rural areas of a proposed intrastate funding formula which would reduce 
the funds allocated to PSA-A and PSA-D, and increase the funds 
allocated to PSA-F.
    (3) Section 1321.17(f)(9)(i) (previously 1321.17(f)(14)(i)) is 
revised to clarify when a State agency may permit an area agency to use 
Title III service dollars to fund program development and coordination 
activities. Under current policy, AoA provides State and area agencies 
with the flexibility to explore new and alternative methods for 
providing supportive and nutrition services through a comprehensive and 
coordinated delivery system by permitting the expenditure of service 
dollars, under section 304(d)(1)(D), for that purpose. During the past 
five years, State and area agencies have raised issues about whether 
section 1321.17(c)(14)(i) of the current rule clearly establishes the 
threshold at which State agencies may allow area agencies to so use 
section 304(d)(1)(D) service funds is based on the total allotment of 
Title III dollars awarded a State, including State plan administration, 
or based on the total amount of Title III dollars awarded to area 
agencies for the provision of supportive and nutrition services under 
section 304(d)(1)(D) of the Act.
    This regulation makes clear that a State agency may not fund 
program development and coordinated activities as a cost of supportive 
services until the State agency has funded area plan administration to 
a level of at least 10 percent of the Title III funds in section 
304(d)(1)(D), with the exception of those funds provided for in section 
303(b)(3) and section 303(f), which are not distributed through the 
State's IFF.
    (4) Section 1321.17(f)(10) is added to require a new assurance that 
States provide the Commissioner with a periodic update of the plan to 
reflect the actual and projected additional costs of providing services 
in rural areas, as required by the new section 307(a)(37) of the Act;
    (5) Section 1321.17(f)(11) is added to require a new assurance that 
the State agency, in consultation with each area agency, will set 
specific objectives for the provision of Title III funded services to 
low-income minority older individuals, and assure that such objectives 
are included in the area plan; and
    (6) Section 1321.17(f)(12) is added to require a new assurance that 
the State will support area plan objectives by undertaking specific 
program development, advocacy, and outreach efforts focused on the 
needs of low-income minority older individuals and provide the 
Commissioner with a written description of its activities to be 
included in the Commissioner's annual report to the Congress.
    (7) Section 1321.17(g) is added to clarify and set out those 
requirements that States which are designated Single Planning and 
Service Areas must meet to receive a grant under Title III of the Act.
    1321.21  Submission of the State plan or plan amendments to the 
Commissioner for approval--this section is revised by requiring States 
to submit their State plans or plan amendments for approval at least 90 
days prior to the effective date of the plan or plan amendment rather 
than the current 45 days. This change was made in order to facilitate 
simultaneous review and technical assistance, if needed, by the AoA 
Regional Office. The additional 45 days also provides the State agency 
with additional time to discuss any deficiencies the Regional Office 
may find in the State plan or the intrastate funding formula and for 
the State to correct them. It is AoA's intention that this additional 
time during the pre-approval period will assist States and AoA in 
assuring that State plans and intrastate funding formulas are approved 
in a timely manner.
    1321.37  Intrastate funding formula--this section is revised to 
comply with the 1992 amendments to the Act that require the 
Commissioner to provide guidelines to State agencies in the development 
of their intrastate funding formulas, and to approve each State's 
intrastate funding formula as a condition of approving the State plan.
    The Commissioner's guidelines are intended to provide State 
agencies with criteria for developing intrastate funding formulas that 
target the needs of those in greatest economic and social need, and 
low-income minorities within each PSA. The guidelines also provide area 
agencies, service providers, older individuals, units of general 
purpose local government, and the pubic with a method by which to 
assess the State's proposed intrastate funding formula impact in each 
planning and service area. We anticipate that the public hearing 
process at both the State and local levels will provide groups, 
organizations, and individuals that may be affected with as much 
information as possible about the actual impact the formula will have 
on current and projected plans and services within the PSA's.
    AoA is aware that there may be changes in the allocation of Title 
III funds to PSA's if State agencies determine that it is necessary to 
modify current or develop new intrastate funding formulas in response 
to changes in demographics, or in compliance with the Commissioner's 
guidelines in these regulations. Whether the formula remains the same, 
is modified or a new formula is developed, it is essential that the 
process of targeting older individuals in greatest economic and social 
need with particular emphasis on low-income minority individuals have a 
demonstrable outcome.
    The 1992 Amendments strengthen the targeting provisions of the OAA 
through a number of requirements relating to State Units on Aging 
(SUAs), area agencies on aging (AAAs) and service providers. The 
Amendments require SUAs to set specific objectives and describe actions 
used to increase participation of low-income minority older individuals 
(Section 305(a)(2)(G)); require SUAs to provide technical assistance to 
minority service providers (Section 305(a)(1)(D)); require area plans 
to include specific service objectives for minority targeting (Section 
306(a)(5)(A)(i)); provide assurances that providers serve low-income 
minority individuals in accordance with their need for services 
(Section 306(a)(5)(A)(ii)); and require that all AAA activities must 
include a focus on the needs of low-income minority older individuals 
(Section 306(a)(5)(C)).
    In determining how funds available under Title III are to be 
distributed to implement these objectives, the 1992 Amendments make it 
clear that States must base the distribution of funds on an intrastate 
funding formula that takes into account the distribution of older 
individuals, and of older individuals with greatest economic need and 
older individuals with greatest social need, with particular attention 
to low-income minority older individuals. The Amendments also require 
that the SUA submit its formula to the Commissioner for approval.
    The guidelines proposed here in accordance with section 
305(c)(2)(C) having the following objectives:

     To provide flexibility for the States to develop a 
formula, based on the provisions of the Act, which is appropriate to 
the conditions in each State; and
     To provide criteria for approval by the Commissioner 
which are outcome rather than process oriented and meet a standard 
of administrative simplicity.

    The criteria developed in these guidelines are based on the 
principle that funds and services should be targeted on older 
individuals in greatest economic need and older individuals in greatest 
social need, with particular attention to low-income minority older 
individuals.
    There are two criteria for approval of the formula:

    (1) to be approved, the formula may not allocate less funds to 
each PSA with a high concentration of low-income minority older 
individuals than would have been allocated to each of these PSA's by 
application of the current formula to the most recent decennial U.S. 
census data or the best available data.

    In view of the provisions in the Act which require particular 
attention to low-income minority older individuals, this criterion is 
intended to ensure that the proposed formula will not divert funds from 
PSA's with the highest concentrations of such individuals, when applied 
to the same population data as the old formula.

    (2) to be approved, the formula may not allocate less funds, 
from the total amount subject to allocation, to each PSA with a high 
concentration of low-income minority older individuals that would be 
allocated to each of these PSA's if the formula submitted for 
approval were based solely on the factors of age, i.e., 60+, and 
greatest economic need, i.e., the proportion of older individuals 
below the poverty line.

    In view of the provisions in the Act which require particular 
attention to low-income minority older individuals, the introduction of 
social need factors in the formula should, if anything, increase funds 
distributed to PSA's with the highest concentrations of low-income 
minority older individuals to an amount no less than would go to the 
PSA based only on age and economic need. In no event may the 
introduction of social need factors decrease such funds.
    A standard procedure is proposed for identifying the PSA's with the 
highest concentrations of low-income minority older individuals. After 
the State ranks the PSA's based on the proportion of low-income 
minority older individuals to all older individuals in the PSA, those 
PSA's with the highest proportion of low-income minority individuals 
which, taken together, contain 51 percent of all low-income minority 
older individuals in the State shall be, for the purposes of this rule, 
considered the PSA's with the highest concentrations of low-income 
minority older individuals.

BILLING CODE 4150-04-M

TP17MR94.000


BILLING CODE 4150-04-C
    In the example above, PSA's A and B constitute the PSAs with the 
highest concentration of low-income minority older individuals (see 
column 4) and have a combined total of 76% of the State's total low-
income minority elderly population (see column 6), which meets the 51% 
requirement.
    This example represents a hypothetical State's proposed formula 
that meets the proposed criteria for approval in that PSA's A and B 
would not receive less funds under the proposed formula (col. 9 ) than 
either would have received by application of the current formula to the 
most recent decennial U.S. census data (col. 7), and neither PSA would 
receive less funds under the formula (col. 9) than it would if funds 
were distributed solely on the basis of age and greatest economic need 
(col. 8). Finally, this example shows that when more than one PSA is 
required to accumulate 51 percent of the low-income minority older 
individuals in the State, the distribution to each such PSA must 
satisfy both specified criteria.
    AoA has developed the criteria for approval of an intrastate 
funding formula so as to ensure that social need factors do not result 
in decreased funding to PSA's with the highest concentration of low-
income minority older individuals.
    We note that the proposed guidelines do not speak to the 
distributional effects on PSA's which contain the other 49 percent of 
the low-income minority older individuals in the State (which may also 
contain a significant number of older individuals in greatest economic 
need, greatest social need, and low-income minority older individuals). 
However, it should be observed that the law requires that SUAs, area 
agencies on aging, and service providers utilize effective methods of 
targeting services to older individuals who are in the greatest 
economic need and the greatest social need, with particular attention 
to low-income minority older individuals in all PSA's. Thus, 
irrespective of the distribution of Title III funds, the SUA's, AAA's, 
and service providers are required to comply with the targeting 
requirements in the Act, using such Title III funds and other sources 
as are available to support services to individuals in targeted groups.
    1321.76 Appeal process to the Commissioner--this subsection is 
added to Subpart E to reflect the Commissioner's new responsibilities 
under section 305(b)(5)(C)(i) of the 1992 amendments to the Act.
    We anticipate that some Title III funds may shift among PSA's if 
intrastate funding formulas are modified or changed in accordance with 
these proposed regulations. Although the 1992 amendments to the Act and 
these proposed rules do not require a change in PSA boundaries, section 
305(a)(1)(E) of the Act requires States to consider the total number of 
older individuals 60+, older individuals in greatest economic need, and 
older individuals in greatest social need, with particular attention to 
low-income minority older individuals residing in the State, in 
dividing the State into distinct PSA's. As a result of the 1990 census, 
States may elect to change some PSA boundaries in order to reflect 
changes in demographics and geographic locations of particular groups 
of older individuals based on the 1990 census. AoA is proposing this 
new rule to provide parties adversely affected by a State's decision to 
change PSA boundaries with an opportunity to appeal to the 
Commissioner, pursuant to section 305(b)(5)(C) of the Act.
    1321.77 Scope--this subsection is revised to allow for alternative 
methods of dispute resolution, and to reflect the requirements of the 
1992 amendments to the Act which allow an appeal to the Secretary of 
HHS after the Commissioner has disapproved a State's plan, plan 
amendment or intrastate funding formula. AoA includes these revisions 
in these proposed rules in order to clarify appeals procedures that are 
to apply when the Commissioner does not approve the intrastate funding 
formula under section 305(a)(2)(C) or otherwise finds that a State plan 
has failed to meet the requirements of Section 307.
    1321.79 When a decision is effective--this subsection is revised to 
include a State's right to appeal to the Secretary.
    1321.81 How the State may appeal--this subsection is revised to 
describe how a State may appeal to the Secretary.

Impact Analysis

Executive Order 12866

    Executive Order 12866 requires that regulations be reviewed to 
ensure that they are consistent with the priorities and principles set 
forth in the Executive Order. The Department of Health and Human 
Services has determined that this rule is consistent with these 
priorities and principles. An assessment of the costs and benefits of 
available regulatory alternatives (including not regulating) 
demonstrated that the approach taken in the regulation is the most 
cost-effective and least burdensome while still achieving the 
regulatory objectives.

Regulatory Flexibility Act of 1980

    The Regulatory Flexibility Act of 1980, Pub. L. 96-354, requires 
that an agency prepare a regulatory flexibility analysis for a proposed 
or final rule if the rule would have significant economic impact on a 
substantial number of ``small entities'', i.e. small businesses, small 
non-profit organizations, or small governmental jurisdictions.
    The responsibility for meeting the requirements of the regulations 
proposed in this NPRM is on the State agencies and to a lesser extent 
on area agencies. Actual delivery of services may be provided in some 
circumstances by proprietary, public, and not-for-profit agencies or 
organizations under grants or contracts from State or area agencies. 
Although area agencies and most service delivery agencies and 
organizations are ``small entities'' within the meaning of the Act, 
this rule will impose no significant burdens on State agencies, area 
agencies or other affected parties and will provide flexibility to 
State and area agencies in implementing the provisions of the Act. For 
these reasons, the Secretary hereby certifies that these regulations 
will not have a significant economic impact on a substantial number of 
small entities.

Paperwork Reduction Act

    This proposed rule contains information collection requirements 
which are subject to review by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act of 1980. The title, 
description, and respondent description of the information collection 
are shown below with an estimate of the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    Title: Grants for State and Community Programs on Aging.
    Description: The 1992 amendments to the Older Americans Act (Pub. 
L. 102-375) now require States to submit their intrastate funding 
formulas to the Commissioner on Aging for approval, rather than only 
for review and comment, as was the case prior to the 1992 amendments. 
The amendments also require the Commission to provide guidance to 
States in the development of their intrastate funding formulas. AoA has 
interpreted the amendments to require that this guidance be in addition 
to the language contained in section 305(a)(2)(C) of the statute which 
requires State agencies to take into account the geographic 
distribution, greatest economic and greatest social need of older 
individuals, with particular attention to low-income minority 
individuals, in the development of their intrastate funding formulas. 
If the Commissioner does not approve the intrastate funding formula, a 
new requirement under section 304(c) requires the Commissioner to 
withhold the State's allotment of supportive and nutrition funds under 
Title III of the Act.
    In order to comply with these new statutory requirements as well as 
address the intent of Congress, the Commissioner has developed 
regulatory standards, and provided directions for each State agency on 
how to evaluate whether its formula meets those standards. The proposed 
regulations are designed to provide a State agency with flexibility to 
either maintain its current formula or, if necessary, to allow for the 
development of a modified or new formula that addresses the 
requirements set out by Congress in section 305(a)(2)(C) of the Act. 
These proposed regulations require that careful consideration be given 
to the geographic distribution of older individuals in the State, and 
the distribution among the planning and service areas of older 
individuals with greatest economic need and older individuals with 
greatest social need, with particular attention to low-income minority 
individuals.
    Because section 304(c) now requires the Commissioner to withhold 
funds if the Commissioner does not approve a State's intrastate funding 
formula, States cannot reasonably be expected to develop intrastate 
funding formulas that can be approved, unless they receive regulatory 
guidelines. Further, in the course of developing their intrastate 
funding formulas, States are required, under sections 305(a)(2)(C) and 
305(d), to publish their intrastate funding formulas for review and 
comment by the public. This publication for review and comment must 
include: ``(1) A descriptive statement of the formula's assumptions and 
goals, and the application of the definitions of greatest economic or 
social need; (2) a numerical statement of the actual funding formula to 
be used; (3) a listing of the population, economic, and social data to 
be used for each planning and service area in the State; and (4) a 
demonstration of the allocation of funds, pursuant to the funding 
formula, to each planning and service area in the State.'' In addition, 
section 307(a)(33) now requires the State plan to include the statement 
and the demonstration required by paragraphs (2) and (4) of section 
305(d) of the Act. The Commissioner may not approve the State plan 
unless the Commissioner approves the statement and demonstration. These 
proposed regulations provide States with guidelines on how to make an 
acceptable numerical statement and an acceptable demonstration of the 
allocation of funds.
    Description of Respondents: State or local governments and non-
profit institutions.

                                           Estimated Annualized Burden                                          
                               [Reporting burden associated with the regulations]                               
----------------------------------------------------------------------------------------------------------------
                                                 Respondents   Responses      Total        Hours/       Total   
              Regulation section                  per year      per year   Respondents  Respondents     burden  
----------------------------------------------------------------------------------------------------------------
1321.17(c)--Intrastate funding formula                                                                          
 development..................................           11             1           11           80          880
1321.17(d)--Intrastate funding formula                                                                          
 approval.....................................          (11)            1           11            8           88
1321.17(e)--Intrastate formula publication for                                                                  
 review and comment...........................          (11)            1           11           30          330
1321.17(g)--Determination of medically under                                                                    
 served and separate allocation...............           11             1           11           20          220
1321.17(h)--Demonstration of targeting by                                                                       
 single planning and service areas............            4             1            4           25          100
----------------------------------------------------------------------------------------------------------------

    Total reporting burden 1618.

    Basis for estimates: The statute allows States to submit their 
State plans every two, three, or four years. Our estimates are based on 
the average number of State plan submissions per year during the four 
year periods between Older Americans Act reauthorizations. We estimate 
that 11 State agencies will incur regulatory burdens in complying with 
the requirements under proposed sections 1321.17 (c), (d), and (e); 11 
State agencies will incur regulatory burdens in complying with proposed 
section 1321.17(g); and 4 State agencies and trust territories will 
incur regulatory burdens in complying with proposed section 1321.17(h). 
Because some States have chosen two or three year State plans, they 
will either submit new plans or amend approved plans more than once 
during the four years between reauthorizations. The table above 
projects our estimate that on average 26 of the 57 State agencies and 
trust territories will incur burdens on complying with these proposed 
requirements once a year.
    We have submitted a copy of this proposed rule to OMB for its 
review of these information collections. Send comments regarding this 
burden estimate or any other aspect of this collection of information, 
including suggestions for reducing this burden to Allison Eydt, HHS 
Desk Officer, Human Resources and Housing, OMB, and to the Office of 
Information and Regulatory Affairs, OMB, Washington, DC 20503.

List of Subjects in 45 CFR Part 1321

45 CFR Part 1321

    Administrative practice and procedure, Aged, Grant programs--
Indians, Grant programs--social programs, Indians, Legal services, 
Nutrition, Reporting and recordkeeping requirements.

    Dated: February 22, 1994.
Fernando M. Torres-Gil,
Commissioner on Aging, Assistant Secretary for Aging.

    Approved:

    Dated: March 2, 1994.
Donna E. Shalala,
Secretary of Health and Human Services.

    For the reasons set forth in the preamble, 45 CFR part 1321 is 
proposed to be amended as follows:

PART 1321--GRANTS TO STATE AND COMMUNITY PROGRAMS ON AGING

    1. The authority for part 1321 continues to read as follows:

    Authority: 42 U.S.C. 3001 et seq.; title III of the Older 
Americans Act, as amended.

Subpart A--Introduction

    2. Section 1321.3 is amended by revising the definition of 
``Periodic'' and adding definitions in alphabetical order as follows:


Sec. 1321.3  Definitions.

* * * * *
    Low-income means below the official poverty guidelines (as defined 
by the Office of Management and Budget, and adjusted by the Secretary 
(HHS) in accordance with subsection 673(2) of the Community Services 
Block Grant Act (42 U.S.C. 9902(2)).
* * * * *
    Medically underserved areas, as used in Sec. 1321.37(g), are those 
areas within planning and service areas which are identified by the 
State as having low ratios, relative to other areas in the State, of 
primary care physicians per 1,000 individuals age 60 and over.
    Minority, as used in this Part, are confined to the following 
designations:
    (1) Black, not of Hispanic Origin. A person having origins in any 
of the black racial groups of Africa.
    (2) Hispanic. A person of Mexican, Puerto Rican, Cuban, Central or 
South American or other Spanish culture or origin, regardless of race.
    (3) Asian or Pacific Islander. A person having origins in any of 
the original peoples of the Far East, Southeast Asia, the Indian 
Subcontinent, or the Pacific Islands. This area includes, for example, 
China, Japan, Korea, the Philippine Islands, and Samoa.
    (4) American Indian or Alaskan Native. A person having origins in 
any of the original peoples of North America, and who maintain cultural 
identification through tribal affiliation or community recognition.
* * * * *
    Periodic, as used in sections 306(a)(6) and 307(a)(8) of the Act 
with respect to evaluations of, reports on, and public hearings on, 
activities carried out under State and area plans, means, at a minimum, 
once each fiscal year (annually).
    Rural area, as used in this part, means any area that is not 
defined as urban. Urban areas comprise:
    (1) Urbanized areas (incorporated places and adjacent densely 
settled territory with a combined minimum population of 50,000) and
    (2) All other places with 2,500 or more inhabitants.

Subpart B--State Agency Responsibilities

    3. Section 1321.17 is revised to read as follows:


Sec. 1321.17  Content of State plan.

    To receive a grant under this part, a State shall have an approved 
State plan as prescribed in section 307 of the Act. In addition to 
meeting the requirements of section 307, a State plan shall include:
    (a) Identification by the State of the sole State agency that has 
been designated to develop and administer the plan.
    (b) Statewide program objectives to implement the requirements 
under Title III of the Act and any objectives established by the 
Commissioner through the rulemaking process.
    (c) A resource allocation plan which indicates the proposed use of 
all Title III funds administered by a State agency, and the 
distribution of Title III funds to each planning and service area using 
the intrastate funding formula developed under section 305(a)(2)(C), 
and published in accordance with the requirements of section 305(d); 
contains a descriptive narrative explaining how the State will meet the 
requirements of section 307(a)(3)(B); and contains an exhibit that 
details how the State will meet the requirements of section 307(a)(37) 
of the Act, including:
    (1) A descriptive statement and comparison of the current 
intrastate funding formula's assumptions and goals and those of the 
proposed formula developed as required under section 305(a)(2)(C) for 
the Commissioner's approval;
    (2) A numerical statement of the current intrastate funding formula 
compared to the formula developed as required under section 
305(a)(2)(C) for the Commissioner's approval;
    (3) A listing of the population, economic, and social data to be 
used for each planning and service area in the State;
    (4) A comparison and demonstration (i.e., statement) of the 
allocation of funds, pursuant to the current intrastate funding 
formula, applied to the best available data, for each planning and 
service area in the State compared to the allocation of funds for each 
planning and service area using the formula developed as required under 
section 305(a)(2)(C) for the Commissioner's approval; and
    (5) In accordance with the definition of rural areas in 
Sec. 1321.3, the State must submit the following supporting information 
displayed in one table:
    (i) The Planning and Service Areas (PSA's) ranked from high to low 
based on the proportion of rural individuals age 60 years and over to 
the total population age 60 years and over in each PSA;
    (ii) The distribution of funds to rural areas in each of the PSA's 
based on the current formula; and
    (iii) The distribution of funds to rural areas in each of the PSA's 
using the formula developed under section 305(a)(2)(C) for the 
Commissioner's approval.
    (d) Identification of the geographic boundaries of each planning 
and service area and of the area agency on aging designated for each 
planning and service area, if appropriate.
    (e) For the preceding year, the number of low-income minority older 
individuals and older individuals residing in rural areas, and a 
description of the methods used to satisfy their service needs, as 
required by sections 307(a) (23) and (29) of the Act.
    (f) Each of the assurances and provisions required in sections 305 
and 307 of the Act, and provisions that the State meets each of the 
requirements under sections 1321.5 through 1321.83 of this part, and 
the following assurances as prescribed by the Commissioner:
    (1) Procedures exist to ensure that all services under this part 
are provided without use of any means tests;
    (2) All services provided under Title III meet any existing State 
and local licensing, health and safety requirements for the provision 
of those services;
    (3) Older individuals are provided opportunities to voluntarily 
contribute to the cost of services;
    (4) Area plans shall specify as submitted, or be amended annually 
to include, details of the amount of funds expended for each priority 
service during the past fiscal year;
    (5) The State agency shall develop policies in consultation with 
the area agencies on aging governing all aspects of programs operated 
under this part, including the manner in which the ombudsman program 
operates at the State level and the relation of the ombudsman program 
to area agencies on aging where area agencies on aging have been 
designated;
    (6) Area agencies on aging shall compile available information, 
with necessary supplementation, on courses of post-secondary education 
offered to older individuals with little or no tuition. The assurance 
shall include a commitment by the area agencies on aging to make a 
summary of the information available to older individuals at 
multipurpose senior centers, congregate nutrition sites, and in other 
appropriate places.
    (7) Individuals with disabilities who reside in a non-institutional 
household with and are accompanied by an individual eligible for 
congregate meals under this part shall be provided a meal on the same 
basis that meals are provided to volunteers pursuant to subsection 
307(a)(13)(I) of the Act.
    (8) Individuals with disabilities who reside in a non-institutional 
household with an individual eligible for home delivered meals under 
this part shall be provided a meal on the same basis that meals are 
provided to volunteers pursuant to subpart 307(a)(13)(I) of this Act.
    (9) (i) The State agency will not fund program development and 
coordination activities as a cost of supportive services for the 
administration of area plans until it has first spent 10 percent of the 
total of its funds allotted under section 304(d)(1)(D) for the 
administration of area plans;
    (ii) State and area agencies on aging will, consistent with 
budgeting cycles (annually, biennially, or otherwise), submit the 
details of proposals to pay for program development and coordination as 
a cost of supportive services, to the general public for review and 
comment; and
    (iii) The State agency certifies that any such expenditure by an 
area agency on aging will have a direct and positive impact on the 
enhancement of services for older individuals in the planning and 
service area.
    (10) The State agency will update the plan periodically to reflect 
the actual and projected additional costs of providing services under 
this title as required in section 307(a)(37) of the Act.
    (11) The State agency shall set specific objectives, in 
consultation with each of its area agencies on aging, for each planning 
and service area for providing services funded under Title III to low-
income minority older individuals, and such objectives must be included 
in the area plan.
    (12) The State, in support of area plan objectives developed under 
section 306(a)(1) of the Act, will undertake specific program 
development, advocacy, and outreach efforts focused on the needs of 
low-income minority older individuals and provide the Commissioner a 
written description of its activities and accomplishments in an annual 
report due not later than 60 days following the close of the fiscal 
year.
    (g) To receive a grant under this part, a State that is designated 
a Single Planning and Service Area must have an approved State plan as 
prescribed in section 307 of the Act, with the exception of sections 
307(a)(3)(B), 305(a)(2)(C) and 305(d) as cross referenced in section 
307. The State plan must also meet the provisions of this rule as set 
out in:
    (1) Section 1321.17(a);
    (2) Section 1321.17(b);
    (3) Section 1321.17(c) using other appropriate geographical 
designations as appropriate in place of planning and service areas, and 
excluding Secs. 1321.17(c)(1) through 1321.17(c)(4);
    (4) Section 1321.17(c)(5) using other appropriate geographical 
designations as appropriate in place of planning and service areas;
    (5) Section 1321.17(e); and
    (6) Section 1321.17(f) with the exception of those sections of the 
Act as noted in Secs. 1321.17(c) and 1321.17(f)(9). States will use 
single planning and service area in place of area agency wherever it 
appears.
    4. Section 1321.21 is revised to read as follows:
    Sec. 1321.21 Submission of the State plan or plan amendment to the 
Commissioner for approval.
    Each State plan or plan amendment which requires approval of the 
Commissioner shall be signed by the Governor or the Governor's designee 
and submitted to the Commissioner for approval at least 90 calendar 
days before the proposed effective date of the plan or plan amendment.
    5. Section 1321.37 is revised to read as follows:
    Sec. 1321.37 Intrastate funding formula.
    (a) The State agency, after consultation with all area agencies on 
aging in the State, shall, based on the requirements of section 
305(a)(2) (C) and (E) of the Act, with the exception of those funds 
provided for in section 303(b)(3) and section 303(f) of the Act, 
develop and use one intrastate funding formula for the allocation to 
all area agencies of all funds under section 304(d)(1)(D) of the Older 
Americans Act.
    (b) In developing its intrastate formula, the State agency shall 
use the most current U.S. decennial census data or the best available 
data.
    (c) The State agency shall submit its formula to the Commissioner 
for review and approval at least 90 days prior to the period for which 
it will apply in the State. The State agency shall also submit at the 
same time the following supporting information displayed in one table:
    (1) The Planning and Service Areas (PSA's) ranked cumulatively from 
high to low based on the proportion of low-income minority individuals 
(as defined in Sec. 1321.3) age 60 years and over (as defined in 
section 102(38) of the Act) to the total population age 60 years and 
over in the PSA;
    (2) The distribution of funds to each of the PSA's as applied to 
the best available data under the current formula;
    (3) The distribution of funds to each of the PSA's based on a 
formula with population age 60 and over and population age 60 and over 
in greatest economic need (as defined in section 102(29) of the Act) as 
the only factors and using the best available data; and
    (4) The distribution of funds to each of the PSA's based on the 
intrastate funding formula submitted to the Commissioner for approval.
    (d) The Commissioner shall approve the intrastate funding formula 
if the following criteria are satisfied when applied to each of the top 
ranked PSA's which cumulatively contain fifty one percent of all low-
income minority older individuals in the State under paragraph (c)(1) 
of this section, rounded to the nearest integer:
    (1) No less funds are allocated to each PSA in the top fifty one 
percent of all PSA's ranked cumulatively under paragraph (c)(1) of this 
section than would be allocated to each of those PSA's by application 
of the current formula to the most recent decennial census or the best 
available data; and
    (2) Each PSA in the top fifty one percent of all PSA's ranked 
cumulatively under paragraph (c)(1) of this section is allotted no less 
funds, from the total amount subject to allocation in section 
304(d)(1)(D), under the formula submitted for approval than each of 
these PSA's would have received under a formula with 60 years and over 
and greatest economic need as the only factors.
    (e) The State agency shall publish the formula for review and 
comment by older individuals, other appropriate agencies and 
organizations, and the general public.
    (f) At least every two years the State agency shall review the most 
recent U.S. decennial census or the best available data and shall, 
based on any changes, allocate funds under section 304(d)(1)(D) through 
its intrastate funding formula. The States shall submit a report to the 
Commissioner detailing any changes in the distribution of funds by PSA 
not later than 30 days after the allocation.
    (g) The intrastate funding formula shall provide for a separate 
allocation of funds received under subsection 303(f) for disease 
prevention and health promotion. The State agency shall award such 
funds to priority planning and service areas which the State agency 
determines:
    (1) Are medically underserved; and
    (2) In which there are large numbers of individuals age 60 and 
older in greatest economic need.
    (h) State agencies in those States which have been designated as 
single planning and service areas are not required to have an 
intrastate funding formula but shall demonstrate in their State plan as 
required in Sec. 1321.17(g) that the funds received under the Older 
Americans Act are used in a manner which targets services to older 
individuals in greatest economic need and older individuals in greatest 
social need, with particular attention to low-income minority older 
individuals.

Subpart E--Hearing Procedures for State Agencies, Area Agencies on 
Aging, and Other Adversely Affected Parties

    6. Section 1321.76 is added to subpart E to read as follows:


Sec. 1321.76   Appeal Process--for Changes in Planning and Service 
Areas.

    This section sets forth the procedures the Commissioner follows for 
providing hearings to adversely affected parties under section 
305(b)(5)(C).
    (a) Any adversely affected party who has been provided a hearing 
and a written decision by the State agency may appeal the decision to 
the Commissioner in writing no later than 30 days following receipt of 
the State's decision.
    (b) The Commissioner, or the Commissioner's designee, will provide 
the opportunity for a hearing; if a hearing is requested, the 
Commissioner will issue a written decision within 60 days of the 
hearing; and if a hearing is not requested, the Commissioner will issue 
a written decision within 60 days of receipt of the items in paragraph 
(c) of this section.
    (c) When the Commissioner receives an appeal, the Commissioner will 
request the State Agency to submit:
    (1) A copy of the appellant's application for designation as a 
planning and service area;
    (2) A copy of the written decision of the State; and
    (3) Any other relevant information the Commissioner may require.
    (d) The Commissioner may:
    (1) Deny the appeal and uphold the decision of the State agency;
    (2) Grant the appeal and overturn the decision of the State agency; 
or
    (3) Take other appropriate action, including facilitating an 
alternative method of dispute resolution such as mediation, or 
remanding the appeal to the State agency after initial findings.
    7. Section 1321.77 is revised to read as follows:


Sec. 1321.77  Scope.

    (a) This section governs the procedures and opportunity for a 
hearing on:
    (1) Disapproval of a State plan or amendment;
    (2) Determination that a State agency does not meet one or more 
requirements of section 307 of the Act, including the intrastate 
funding formula requirement under section 305 of the Act; and
    (3) Determination that there is a failure in the provisions or the 
administration of an approved plan to comply substantially with Federal 
requirements, including failure to comply with any assurance required 
under the Act or under this rule.
    (b) Hearing procedures for State plan disapproval, as provided for 
in section 307(c) and subsection 307(d) of the Act are subject to the 
provisions of 45 CFR part 213 with the following exceptions:
    (1) Section 213.1(a); Secs. 213.32(d); and 213.33 do not apply.
    (2) Reference to ``SRS Hearing Clerk'' shall be understood to mean 
``HHS Hearing Clerk.''
    (3) References to ``Administrator'' shall be read to mean 
``Commissioner on Aging'' or, on appeal from the Commissioner's final 
decision, ``the Secretary.''
    8. Section 1321.79 is revised to read as follows:


Sec. 1321.79  When a decision is effective.

    (a) The State may appeal the Commissioner's decision to the 
Secretary within 30 days of the date of the decision, as provided in 
Sec. 1321.81. The Commissioner may set aside or otherwise modify the 
decision before the State files such an appeal.
    (b) If the State appeals the Commissioner's decision to the 
Secretary, then the Commissioner's decision will not take effect. The 
State may appeal the Secretary's decision to the United States Court of 
Appeals for the Circuit in which the State is located not later than 30 
days after such decision. The Secretary may set aside or modify the 
decision before the filing of the record in the Court. The Secretary's 
decision will become effective 31 days after the date of decision if 
the State does not appeal. If the State appeals the Secretary's 
decision, then it will become effective when the record is filed in the 
Court.
    (c) In lieu of appealing the Commissioner's decision to the 
Secretary, the State may appeal directly to the United States Court of 
Appeals for the Circuit in which the State is located within 30 days of 
the Commissioner's decision. The Commissioner may set aside or 
otherwise modify the decision before the filing of the record in the 
Court.
    (d) If the State appeals the Commissioner's decision to the United 
States Circuit Court of Appeals, then the Commissioner's decision will 
become effective on the date the appeal is filed. If the State does not 
appeal the Commissioner's decision, then the decision will become 
effective on the thirty-first day after the date of the decision.
    9. Section 1321.81 is revised to read as follows:


Sec. 1321.81  How the State may appeal.

    (a) A State may appeal the final decision of the Commissioner 
disapproving the State plan or plan amendment, finding non-compliance, 
or finding that a State agency does not meet one or more requirements 
of sections 305 or 307 of the Act, to the Secretary, as follows:
    (1) The State shall file the appeal to the Secretary, with a copy 
to the Commissioner, not later than 30 days after the Commissioner's 
final decision;
    (2) The State's appeal shall include a copy of the Commissioner's 
final decision, and the reason why the State claims it is incorrect;
    (3) Within 30 days of receipt of the appeal the Commissioner shall 
submit to the Secretary a copy of the record and a response to the 
State's claim;
    (4) The Secretary shall issue a written decision within 60 days of 
receipt of the Commissioner's decision;
    (5) The Secretary may:
    (i) Deny the appeal and uphold the Commissioner's decision;
    (ii) Grant the appeal and reverse the Commissioner's decision; or
    (iii) Take other appropriate action, including, but not limited to, 
facilitating an alternative method of dispute resolution such as 
mediation, or remanding the case to the Commissioner for further 
development of the record;
    (6) The Secretary may designate an appropriate Departmental 
employee to make a recommended decision before the Secretary issues a 
final written decision.
    (b) A State may appeal the final decision of the Commissioner or 
the Secretary to the United States Court of Appeals for the Circuit in 
which the State is located as provided in section 307(e) of the Act.
    10. Section 1321.83 is revised to read as follows:


Sec. 1321.83  How the Commissioner may reallot the State's withheld 
payments.

    The Commissioner will disburse funds withheld from the State 
directly to any public or nonprofit private organization or agency, or 
political subdivision of the State that has the authority and capacity 
to carry out the functions of the State agency and submits a State plan 
which meets the requirements of this part and which contains an 
agreement to meet the non-Federal share requirements.

[FR Doc. 94-6136 Filed 3-16-94; 8:45 am]
BILLING CODE 4150-04-M