[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14326]


[[Page Unknown]]

[Federal Register: June 15, 1994]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Parts 95 and 205

 

Elimination of Enhanced Funding for Family Assistance Management 
Information Systems

AGENCY: Administration for Children and Families, HHS.

ACTION: Final rule.

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SUMMARY: This final rule implements provisions of the Omnibus Budget 
Reconciliation Act of 1993 (OBRA-93), which eliminate enhanced Federal 
funding for Family Assistance Management Information Systems (FAMIS). 
Technical changes are also made to update the list of automated systems 
subject to enhanced funding and to provide the current title of the 
agency.

DATES: Effective Date: April 1, 1994. For States whose legislatures 
meet biennially and do not have a regular session scheduled in calendar 
year 1994, this final rule applies no later than the first day of the 
first calendar quarter beginning after the close of the first regular 
session of the State legislature convening after August 10, 1993.

FOR FURTHER INFORMATION CONTACT:
Bill Davis, State Data Systems Staff, 370 L'Enfant Promenade SW., 
Washington, DC 20447, telephone (202) 401-6404.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    This final rule does not contain any information collection 
activities and, therefore, no approvals are necessary under section 
3504(h) of the Paperwork Reduction Act of 1980 (Pub. L. 96-511).

Statutory Authority

    These regulations are published under the general authority of 
section 1102 of the Social Security Act (the Act) which requires the 
Secretary to publish such rules and regulations as may be necessary for 
the efficient administration of the functions for which she is 
responsible under the Act.

Justification for Dispensing With Notice of Proposed Rulemaking and 30-
Day Delayed Effective Date Requirement

    The amendments to these regulations are being published in final 
form. The Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), 
provides that if the Department has good cause for finding that a 
Notice of Proposed Rulemaking is unnecessary, impracticable or contrary 
to the public interest, it may dispense with such notice if it 
incorporates a brief statement in the final regulation of the reasons 
for doing so. Section 553(d)(3) of the APA permits the Department to 
bypass a 30-day waiting period prior to a rule's effective date for 
similar reasons.
    The Department finds that there is good case to dispense with 
Notice of Proposed Rulemaking and a 30-day waiting period with respect 
to the current regulatory changes. A notice and comment period and a 
30-day waiting period are unnecessary as the amendments simply 
implement statutory provisions and do not involve administrative 
discretion. Moreover, the States have previously been notified by the 
Department (via ACF-AT-93-16 issued November 1, 1993) that OBRA-93 has 
eliminated enhanced Federal funding for FAMIS, and that the lower 
Federal funding rate is effective, in most cases, on April 1, 1994.

Background and Description of Regulatory Provisions

    Section 13741 of OBRA-93 amended section 403 of the Social Security 
Act by eliminating enhanced Federal financial funding for certain 
categories of AFDC expenditures, including AFDC program expenditures 
pertaining to the planning, design, and development or installation of 
an approved Family Assistance Management Information System (FAMIS).
    The current enhanced Federal matching rate for FAMIS is 90 percent. 
This rate is reduced to 50 percent under OBRA-93. Accordingly, the 
funding provisions at 45 CFR 205.38(a) are revised to stipulate that 
the availability of 90 percent funding is terminated effective March 
31, 1994, after which time the rate is reduced to 50 percent.
    While 50 percent is the only Federal financial participation rate 
available for FAMIS activities beginning April 1, 1994, those system 
developments efforts already in progress and approved at the enhanced 
rate continue to be subject to the requirements of Sec. 205.35 through 
Sec. 205.38 until the system is completed and certified by the 
Administration for Children and Families. The Department will continue 
to recover pursuant to section 402(e)(2)(C) of the Social Security Act 
the 40 percent incentive portion of Federal financial participation 
expended should the state fail to meet the statewide implementation 
date specified in its approved Advance Planning Document.
    We have also made technical changes to reflect a 1991 agency 
reorganization by replacing references to the ``Family Support 
Administration (FSA)'' with ``the Administration for Children and 
Families (ACF)'' each time they appear in Sec. 205.35 through 
Sec. 205.38.
    Conforming changes have also been made to 45 CFR part 95, subpart 
F, Automatic Data Processing Equipment and Services--Conditions for 
Federal Financial Participation, Sec. 95.605 (pertaining to 
definitions) and Secs. 95.611 and 95.625 (pertaining to FFP) to remove 
references to the availability of enhanced funding under title IV-A. At 
the same time, we are adding references in Secs. 95.611 and 95.625 to 
title IV-E relevant to the availability of enhanced funding since 
section 13713 of OBRA-93 made such funding available for Statewide 
Automated Child Welfare Information Systems from October 1, 1993 
through September 30, 1996 (see 58 FR 67939, December 22, 1993).
    Technical changes have also been made to this section to reflect 
the current agency designation as explained above and to correct a 
typographical error. The reference at 45 CFR 96.625(b), with respect to 
regulations governing title XIX should be 42 CFR part 433, subpart C, 
rather than 45 CFR part 433, subpart C.

Regulatory Impact Analysis

    Executive Order 12866 requires that regulations be reviewed to 
ensure that they are consistent with the priorities and principles set 
forth in the Executive Order. The Department has determined that this 
rule is consistent with these priorities and principles. No costs are 
associated with this rule as it merely ensures consistency between the 
statute and regulations.

Regulatory Flexibility Act

    Consistent with the Regulatory Flexibility Act (Pub. L. 96-354) 
which requires the Federal government to anticipate and reduce the 
impact of rules and paperwork requirements on small businesses and 
other small entities, the Secretary certifies that this rule has no 
significant effect on a substantial number of small entities. 
Therefore, a regulatory flexibility analysis is not required.

List of Subjects

45 CFR Part 95

    Claims, Computer technology, Grant programs--health, Grant 
programs, Social programs, Social security.

45 CFR Part 205

    Computer technology, Grant programs--social programs, Privacy, 
Public assistance programs, Reporting and recordkeeping requirements, 
Wages.

(Catalog of Federal Domestic Assistance Program Numbers 13.645 Child 
Welfare Services--State Grants; Foster Care Maintenance; 13.659, 
Adoption Assistance; 13.679, Child Support Enforcement Program; 
13.174, Medical Assistance Program; 13.808, Assistance Payments--
Maintenance Assistance; 13.810, Assistance Payments--State and Local 
Training)

    Dated: April 1, 1994.
Mary Jo Bane,
Assistant Secretary for Children and Families.

    Approved: June 5, 1994.
Donna E. Shalala,
Secretary.

PART 95--GENERAL ADMINISTRATION--GRANT PROGRAMS (PUBLIC ASSISTANCE 
AND MEDICAL ASSISTANCE)

    1. The authority citation for part 95 continues to read as follows:

    Authority: Secs. 402(a)(5), 452(a)(1), 1102, and 1902(a)(4) of 
the Social Security Act, 42 U.S.C. 602(a)(5), 652(a)(1), 1302, 
1396a(a)(4); 5 U.S.C. 301 and 8 U.S.C. 1521.

    2. Section 95.605 is amended by revising the definition of 
``Enhanced matching rate'' to read as follows:


Sec. 95.605  Definitions.

* * * * *
    Enhanced matching rate means the higher than regular rate of FFP 
authorized by Title IV-D, IV-E, and XIX of the Social Security Act for 
acquisition of services and equipment that conform to specific 
requirements designed to improve administration of the Child Support 
Enforcement, Foster Care and Adoption Assistance, and Medicaid 
programs.
* * * * *
    3. Section 95.611 is amended by revising paragraphs (a)(2) and 
(a)(5) to read as follows:


Sec. 95.611  Prior approval conditions.

    (a) * * *
    (2) A State shall obtain prior written approval from the Department 
as specified in paragraph (b) of this section, when the State plans to 
acquire ADP equipment or services with proposed FFP at the enhanced 
matching rate authorized by 45 CFR part 307, 45 CFR 1355.55 or 42 CFR 
part 433, subpart C, regardless of the acquisition cost, except as 
specified in paragraph (a)(3) of this section.
* * * * *
    (5) Except as provided for in paragraph (a)(6) of this section, the 
State shall submit requests for Department approval, signed by the 
appropriate State official, to the Director, Administration for 
Children and Families, Office of Information Management Systems. The 
State shall send to ACF one copy of the request for each HHS component, 
from which the State is requesting funding, and one for the State Data 
Systems Staff, the coordinating staff for these requests. The State 
must also send one copy of the request directly to each Regional 
program component and one copy to the Regional Director.
* * * * *
    4. Section 95.625 is revised to read as follows:


Sec. 96.625  Increased FFP for certain ADP systems.

    (a) General. FFP is available at enhanced matching rates for the 
development of individual or integrated systems and the associated 
computer that support the administration of State plans for Titles IV-
D, IV-E and/or XIX provided the systems meet the specifically 
applicable provisions referenced in paragraph (b) of this section.
    (b) Specific reference to other regulations. The applicable 
regulations for the Title IV-D program are contained in 45 CFR part 
307. The applicable regulations for the Title IV-E program are 
contained in 45 CFR 1355.55. The applicable regulations for the Title 
XIX program are contained in 42 CFR part 433, subpart C.

PART 205--GENERAL ADMINISTRATION--PUBLIC ASSISTANCE PROGRAMS

    1. The authority citation for part 205 continues to read as 
follows:

    Authority: 42 U.S.C. 602, 603, 606, 607, 611, 1302, 1306(a), 
1320b-7.


Sec. 205.35  [Amended]

    2. Section 205.35 is amended by removing in the introductory text 
``Family Support Administration (FSA).'' and adding, in its place 
``Administration for Children and Families (ACF).''


Sec. 205.37  [Amended]

    3. Section 205.37 is amended by revising the heading of the section 
to read: ``Responsibilities of the Administration for Children and 
Families (ACF).'', and by removing the initials ``OFA'' in the third 
sentence of paragraph (a)(5) and adding in its place, the initials 
``ACF''.
    4. Section 205.38 is amended by revising paragraph (a) to read as 
follows:


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 APD. (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.
* * * * *


Secs. 205.37 and 205.38  [Amended]

    5. In addition to the amendments set forth above, in 45 CFR part 
205 remove the initials ``FSA'' and add, in its place, the initials 
``ACF'' in the following places:
    (a) Section 205.37(a), (b), (c), (d) and (e); and
    (b) Section 205.38(b), (c) and (e).

[FR Doc. 94-14326 Filed 6-14-94; 8:45 am]
BILLING CODE 4110-60-M