[Federal Register Volume 59, Number 103 (Tuesday, May 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13165]


[[Page Unknown]]

[Federal Register: May 31, 1994]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 402

RIN 0970-AB28

 

State Legalization Impact Assistance Grants (SLIAG)

AGENCY: Administration for Children and Families, HHS, Office of 
Refugee Resettlement.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Administration for Children and Families proposes to amend 
the final rule implementing the State Legalization Impact Assistance 
Grant (SLIAG) program. This proposed rule provides that grant funds not 
expended by participating States by December 30, 1994, be reallotted to 
States with unreimbursed SLIAG-related costs. The intent of this 
proposal is to ensure that States with unreimbursed SLIAG-related costs 
are reimbursed for those costs to the extent to which funds are 
available at the end of the SLIAG program.

DATES: Comments must be received on or before August 1, 1994.

ADDRESSES: Comments may be mailed to Henley Portner, Division of State 
Legalization and Repatriation, Office of Refugee Resettlement, 
Administration for Children and Families, 370 L'Enfant Promenade, SW., 
6th floor, Washington, DC 20447.

FOR FURTHER INFORMATION CONTACT: David B. Smith (Director, Division of 
State Legalization and Repatriation), 202-401-9255.

SUPPLEMENTARY INFORMATION:

Background

    State Legalization Impact Assistance Grants (SLIAG) are mandated by 
the Immigration Reform and Control Act of 1986 (IRCA) (Pub. L. 99-603), 
as amended. The purpose of SLIAG is to lessen the financial impact on 
State and local governments that may result from the legalization of 
aliens under IRCA. The Department published a final rule, 45 CFR part 
402, implementing section 204 of IRCA, on March 10, 1988, and has 
subsequently amended that rule in response to programmatic and 
administrative requirements.
    The Labor/Health and Human Services FY 1993 Appropriations Act, 
Public Law 102-394, dated October 6, 1992, amended Section 204(b)(4) of 
IRCA. Section 204(b)(4) previously provided that funds under SLIAG 
would remain available to States for obligation through September 30, 
1994. The FY 1993 HHS Appropriations Act amendment to IRCA provides 
that any funds not expended as of December 30, 1994, be reallocated to 
participating States which have expended their entire allotments and 
which have incurred unreimbursed SLIAG-related costs in excess of their 
allotments. The basis for the reallocation is each State's percentage 
share of total unreimbursed SLIAG-related costs in all States. The 
amendment provides that reallocated SLIAG funds will be available to 
States until June 30, 1995.

Previous Formula Allocations of SLIAG Funds

    Section 204(b)(1) of IRCA mandated that, between FY 1988 and FY 
1994, SLIAG funds be allocated to States by a formula which took into 
account the population of eligible legalized aliens (ELAs) in each 
State; the ratio of ELAs in each State to the population of the State 
and to the number of ELAs in all States; the costs incurred by each 
State in providing services to ELAs; and the ratio of costs incurred by 
each State to the total of all such costs in all States. States' costs 
were to be reimbursed from their grants to the extent that these costs 
have been documented and determined to be allowable SLIAG-related costs 
as defined in the SLIAG regulations.
    At the beginning of the SLIAG program, very little information 
existed about the types of programs which the legalized alien 
population would access or about the participation rates of the 
legalized alien population in these programs. The costs submitted by 
States and used in the allocation formula in FY 1988 and FY 1989 were 
therefore estimates. (Since FY 1990, when States began to be able to 
document and submit the actual SLIAG-related costs they had incurred, 
the costs incorporated in the formula have also included States' actual 
SLIAG-related costs.) Current data indicate that the estimated costs 
used in the FY 1988 and FY 1989 allocations were imperfect predictors 
of what States' actual SLIAG-related costs would be in providing 
services to the ELA population. Furthermore, as mandated by the 
legislation, more than $1.8 billion in grant funds were allocated in FY 
1988 and FY 1989. Thus, over one-half of the funds appropriated under 
IRCA were allocated when States were only able to provide estimated 
costs for use in the allocation formula. For these reasons, some States 
have received grants that are projected to be in excess of the SLIAG-
related costs they will have incurred by the end of the program. Other 
States have received grants that are less than their total SLIAG-
related costs. The amendment to IRCA on reallocating unexpended funds 
will provide reimbursement for their costs to States whose grants are 
less than their allowable documented costs.

Reallocation of Unexpended Funds

    To implement the amendment, we are proposing to add section 402.34, 
concerning allocation of unexpended funds, to the SLIAG regulations. 
This section would provide that any SLIAG funds unexpended as of 
December 30, 1994, would be reallocated to States with unreimbursed 
SLIAG-related costs to the extent to which such funds are available. 
Section 402.2, Definitions, would be amended to define ``unreimbursed 
SLIAG-related costs'' as those costs the Department has accepted as of 
March 15, 1995, which exceed the amount of the allotments the State had 
received through September 30, 1994. ``Unexpended funds'' would be 
defined as the amount by which the allotments received by a State 
through September 30, 1994, exceed the amount of the State's SLIAG-
related costs accepted by the Department as of March 15, 1995.
    Since the funds made available to States pursuant to Public Law 
102-394 would be reallotments of previously allotted funds, no 
application for reallocated funds would be required. The Department's 
acceptance of documented SLIAG-related costs which establish that the 
State has SLIAG-related costs in excess of the total amount of its 
allotments through FY 1994 would constitute the State's request for 
reallocated funds. Sections 402.30 and 402.40 would be amended to 
explain that no application is required to receive reallocated funds.

Source of Data for Reallocation

    States must document the actual SLIAG-related costs they have 
incurred in the annual reports which they submit to the Department for 
each year during which a State receives or during which a State 
obligates or expends SLIAG funds. The annual reports therefore provide 
the data necessary to determine the total SLIAG-related costs incurred 
by a State in providing allowable services.
    The annual reports required by Sec. 402.51 are due 90 days after 
the end of the fiscal year. Annual reports for FY 1994 are due December 
29, 1994. Since the determination of unreimbursed SLIAG-related costs 
would be based on the SLIAG-related costs reported in the annual 
reports and accepted by the Department as of March 15, 1995, 
Sec. 402.11 would be amended to clarify that reimbursement for SLIAG-
related costs is available only for costs which have been accepted by 
the Department by that date. No reimbursement under SLIAG for any grant 
year would be available for costs not submitted by December 29, 1994, 
or not found acceptable by the Department as of March 15, 1995. The 
latter date would allow sufficient time for States to submit any 
necessary revisions to their FY 1994 and earlier years' annual reports 
resulting from Department review before the determination of total 
unexpended funds and unreimbursed SLIAG-related costs is made.
    Section 402.26 currently states that obligations of grant funds 
must be expended within 90 days of the end of the funding period. Since 
the funding period for all SLIAG grants ends on September 30, 1994, no 
obligations of funds for SLIAG-related activities may be made after 
that date. All obligations must be expended by December 29, 1994, for 
States to receive reimbursement.
    The current regulations also state that the deadline for expending 
obligations may be extended if extenuating circumstances prevent a 
State from meeting it. The amendment to IRCA, however, requires that 
funds unexpended as of December 30, 1994, be reallocated to States with 
unreimbursed SLIAG-related costs. For this reason, the proposed rule 
would revise Sec. 402.26 to state that all obligations must be expended 
by December 29, 1994, without the possibility of extension. This change 
will allow the Department to determine the amount of unexpended funds 
as of December 30, 1994, as mandated by IRCA.

Calculation of Unexpended Funds and Unreimbursed Costs

    A new Sec. 402.34 would be added to the SLIAG regulations to 
establish the procedure for allocating unexpended funds to States with 
unreimbursed SLIAG-related costs. To determine unexpended funds and 
unreimbursed SLIAG-related costs, (1) the cumulative amount of 
allotments received by each State through September 30, 1994, would be 
calculated; (2) the total costs accepted by the Department as of March 
15, 1995, based on the annual cost reports submitted by the State, 
would be calculated; and (3) total costs for each State would be 
subtracted from each State's cumulative allotments.
    The positive results of this subtraction would constitute each 
State'e unexpended funds. The unexpended funds for each State would be 
added together to determine the total amount of unexpended funds in all 
States.
    Any negative results of this subtraction would constitute a State's 
unreimbursed SLIAG-related costs. Total unreimbursed SLIAG-related 
costs for participating States would be the sum of the negative results 
of this calculation.

Allocation of Unexpended Funds

    To allocate the unexpected funds, each State's percentage share of 
total unreimbursed SLIAG-related costs would be calculated. The 
percentage for each State would be found by dividing each State's 
unreimbursed SLIAG-related costs by the total amount or unreimbursed 
SLIAG-related costs for all States with such costs. The percentages 
thus obtained would be multiplied by the total amount of unexpended 
funds to determine the allocation for each State with unreimbursed 
SLIAG-related costs.

Allotment of Unexpended Funds

    The amount determined by the above calculation would constitute 
each State's allocation. The amount of the allotment awarded to each 
State would depend on whether the total amount of unexpended funds is 
greater or less than the total amount of unreimbursed costs. To 
determine the amount of each State's allotment, the total amount of 
unexpended funds would be compared to the total amount of unreimbursed 
SLIAG-related costs. If unexpended funds are less than total reimbursed 
costs, each State would receive an allotment equal to the amount of its 
allocation (i.e., its percentage share of total unexpended funds). If 
unexpended funds are greater than unreimbursed costs, each State's 
allotment would equal the amount of its accepted unreimbursed SLIAG-
related costs.

Use of Reallotted Funds

    Currently, funds provided under SLIAG may be used by States for 
reimbursement of SLIAG-related costs incurred in the fiscal year in 
which the funds are awarded and during the following fiscal years of 
the program. Section 402.10 would be amended to allow funds reallotted 
after December 30, 1994, to be used by States for reimbursement of 
approved SLIAG-related costs incurred in any fiscal year of the 
program. The section would also be amended to state that funds provided 
in FY 1993 and FY 1994 may be used for costs incurred in FY 1990 and in 
succeeding years, as prescribed by Public Law 102-394.
    In accordance with the amendment to IRCA, the reallotted funds 
would remain available to States through June 30, 1995, for 
reimbursement of their SLIAG-related costs. We anticipate that States 
will have drawn down the amount of their approved SLIAG-related costs 
(or, for States with costs in excess of their grants, the amount of 
their allotments) before December 30, 1994. If, however, a State has 
not drawn down the full allowable amount, the funds allotted before 
September 30, 1994, would also continue to be available for drawdown 
through June 30, 1995. After June 30, 1995, no funds--either previously 
allotted or reallotted funds--would remain available. Section 402.11, 
Limitations on use of SLIAG funds, would be amended to state that funds 
awarded under SLIAG are available for drawdown through June 30, 1995.

Reporting

    To implement this amendment, Sec. 402.51 would be revised to 
clarify the reporting requirements for FY 1994 and FY 1995. The annual 
reports due 90 days after the end of FY 1994 would, as currently 
required, include costs incurred during FY 1994. States have until 
December 29, 1994, to expend obligations incurred through September 30, 
1994. since all SLIAG-related costs must be documented and reported to 
the Department before States may be reimbursed for them, this proposed 
rule would require that SLIAG-related costs incurred as a result of 
expending obligations between September 30, 1994, and December 29, 
1994, be submitted to the Department in the FY 1994 annual report.
    Since all SLIAG-related costs for which the reallotments will be 
provided would have been submitted in previous annual reports and 
accepted by the Department, no annual report would be required for FY 
1995. Section 402.51 would be amended to indicate that Financial Status 
Reports (SF 269) are required 90 days after the last day (June 30, 
1995) on which States could draw down funds from their allotments 
(i.e., by September 28, 1995).

Regulatory Procedures

Executive Order 12866

    Executive Order 12866 requires that regulations be reviewed to 
ensure that they are consistent with priorities and principles set 
forth in the Executive Order. The Department 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 an least burdensome while still 
achieving the regulatory objectives.

Paperwork Reduction Act

    This rule imposes no new reporting or recordkeeping requirements, 
and therefore, no approvals are necessary under section 3504 of the 
Paperwork Reduction Act of 1980 (Public Law 96-511).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (Public Law 96-354) requires the 
Federal government to anticipate and reduce the impact of regulations 
and paperwork requirements on small entities.
    The primary impact of this rule is on State governments. Therefore, 
we certify that this rule will not have a significant economic impact 
on a substantial number of small entities because it affects the 
reallocation and reallotment of SLIAG funds to State governments. Thus, 
a regulatory flexibility analysis is not required.

[Catalogue of Federal Domestic Assistance Program No. 93.565, State 
Legalization Impact Assistance Grants]

List of Subjects in 45 CFR Part 402

    Administrative cost, Aliens, Allocation formula, Allotment, 
Education, Grant programs, Immigration, Immigration Reform and Control 
Act, Public assistance, Public health assistance, Reporting and 
recordkeeping requirements, State Legalization Impact Assistance 
Grants.

    Dated: March 22, 1994
Mary Jo Bane,
Assistant Secretary for Children and Families.
    Dated: May 14, 1994.
Donna E. Shalala,
Secretary, Department of Health and Human Services.

    For the reasons set out in the preamble, the Administration for 
Children and Families proposes to amend 45 CFR part 402 as follows:

PART 402--STATE LEGALIZATION IMPACT ASSISTANCE GRANTS

    1. The authority citation for part 402 continues to read as 
follows:

    Authority: 8 U.S.C. 1255a note, as amended.

    2. Section 402.2 is amended by revising the definitions of 
``allocation'' and ``allotment'' and by adding definitions for 
``unexpended funds'' and ``unreimbursed SLIAG-related costs'' to read 
as follows:


Sec. 402.2  Definitions.

* * * * *
    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.
* * * * *
    Unexpended funds means the amount by which allotments awarded to a 
State, as determined under Sec. 402.31 and Sec. 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. 402.31 and Sec. 402.33 of this part.
    3. Section 402.10(a) if revised to read as follows:


Sec. 402.10  Allowable use of funds.

    (a) Funds provided under Sec. 402.31 and Sec. 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 Secs. 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.
* * * * *
    4. In Sec. 402.11, paragraphs (p) and (q) are added to read as 
follows:


Sec. 402.11  Limitations on use of SLIAG funds.

* * * * *
    (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 awarded under this part will remain available to States 
for reimbursement of SLIAG-related costs until June 30, 1995.
    5. In Sec. 402.26, paragraph (b) is revised to read as follows:


Sec. 402.26  [Amended]

* * * * *
    (b) Obligations of funds by States must be expended by December 29, 
1994.
    6. Section 402.30 is amended by revising the first sentence and 
adding a second sentence to read as follows:


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. 402.31 and Sec. 402.33. * * 
*
    7. Section 402.34 is added to read as follows:


Sec. 402.34  Allocation of unexpended funds.

    (a) Any unexpended funds, as defined in this part, from allotments 
awarded to States under Sec. 402.31 and Sec. 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.
    8. Section 402.40 is amended by revising the first sentence and 
adding a third sentence to read as follows:


Sec. 402.40  General.

    In order to be eligible for funds available under Sec. 402.31 or 
Sec. 402.33 of this part in a fiscal year, a State must submit an 
annual application. * * * 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. 402.31 and Sec. 402.33 of this part.
    9. Section 402.51 is amended by redesignating paragraph (a) as 
paragraph (a)(1) and revising the first sentence of that paragraph, by 
adding paragraph (a)(2), and by revising the introductory text of 
paragraph (c) to read as follows:


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. * * *
    (2) A State which expends funds pursuant to Sec. 402.26(b) must 
submit a report containing the information identified in (e) of this 
section. The report is due no later than December 29, 1994. A State 
which receives funds pursuant to Sec. 402.34 must submit a report 
containing the information identified in (c) of this section. The 
report is due no later than September 28, 1995.
* * * * *
    (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. 402.31 and Sec. 402.33, and as of June 
30, 1995, for funds received under Sec. 402.34, including:
* * * * *
(Approved by the Office of Management and Budget under control 
number 0970-0079)

[FR Doc. 94-13165 Filed 5-27-94; 8:45 am]
BILLING CODE 4184-01-M