[Federal Register Volume 59, Number 196 (Wednesday, October 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25178]


[[Page Unknown]]

[Federal Register: October 12, 1994]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 233

 

Aid to Families With Dependent Children; Adult Assistance 
Programs; Income and Resource Disregards Related to Interests of 
Individual Indians in Trust or Restricted Lands

AGENCY: Administration for Children and Families (ACF), HHS.

ACTION: Proposed rule.

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SUMMARY: These proposed regulations incorporate additional statutory 
disregards in the rules for the Aid to Families With Dependent Children 
(AFDC) program and the adult assistance programs in Guam, Puerto Rico 
and the Virgin Islands. Included is the income disregard provided under 
section 13736 of Pub. L. 103-66, the Omnibus Budget Reconciliation Act 
of 1993, which amends section 8 of Pub. L. 93-134. This income 
disregard is effective January 1, 1994. This amendment provides that up 
to $2,000 per year of income derived from interests of individual 
Indians in trust or restricted lands shall not be considered in 
determining assistance under the Social Security Act or any other 
Federal or federally assisted program.
    Additionally, we propose to incorporate the resource disregard 
provided under section 8 of Pub. L. 93-134, as added by section 4 of 
Pub. L. 97-458, effective January 12, 1983. This provision requires 
that interests of individual Indians in trust or restricted lands shall 
not be considered a resource in determining eligibility for assistance 
under the Social Security Act or any other Federal or federally 
assisted program.

DATES: Interested persons and agencies are invited to submit written 
comments concerning the proposed regulations no later than December 12, 
1994.

FOR FURTHER INFORMATION CONTACT:

Mr. Mack A. Storrs, Division of AFDC Program, Office of Family 
Assistance, Administrative for Children and Families, Fifth Floor, 370 
L'Enfant Promenade, SW, Washington, DC 20447, Telephone (202) 401-9289.

SUPPLEMENTARY INFORMATION:

Discussion of Proposed Rule Provisions

Disregard of Certain Income Derived From Interests of Individual 
Indians in Trust or Restricted Lands

    Effective January 1, 1994, section 13736 of Pub. L. 103-66, the 
Omnibus Budget Reconciliation Act of 1993, amends section 8 of Pub. L. 
93-134 to provide that up to $2,000 per year of amounts derived from 
interests of individual Indians in trust or restricted lands shall not 
be counted as income. The Conference Report identifies ``leases on 
individually-owned trust or restricted Indian lands'' as such interests 
[H.R. Rep. No. 103-111, 103D Cong., 1st Sess., 494-495 (1993)]. The 
income generally comes from interests in lands allotted to individual 
Indians many years ago. Income to individual Indians generated by these 
interests is likely to be quite small because many of the original 
interests is allotted lands have fractionized over time due to the 
inheritance of multiple heirs over several generations.
    Under the proposed regulations, the disregard of up to $2,000 per 
year would be applicable only to income. Any disregarded amounts 
retained by an individual after the month in which they are received 
would be counted as a resource. We also propose to give States the 
flexibility to define the yearly period for applying the income 
disregard.
    Section 233.20 would be amended by redesignating paragraph 
(a)(4)(i) as (a)(4)(i)(a), and adding a new paragraph (a)(4)(i)(b) to 
incorporate the income disregard required by section 8 of Pub. L. 93-
134, as amended.

Disregard of Individual Indian Interests in Trust or Restricted Lands 
From Consideration as a Resource

    Public Law 93-134, enacted October 19, 1973, provides for the use 
or distribution of certain Indian judgment funds. Public Law 97-458, 
enacted January 12, 1983, made several amendments to Pub. L. 93-134. 
One amendment made by section 4 of Pub. L. 97-458 was the addition of a 
new section 8 to Pub. L. 93-134. Section 8 of Pub. L. 93-134 requires 
that interests of individual Indians in trust or restricted lands shall 
not be considered a resource in determining eligibility for assistance 
under the Social Security Act of any other Federal or federally 
assisted program.
    Although this provision was effective in 1983, it was not 
incorporated in the regulations at that time because it was considered 
unnecessary. Interests in trust or restricted lands are not considered 
a resource under the definition of available income and resources in 
existing regulations at 45 CFR 233.20(a)(3)(ii)(D). These regulations 
provide, in pertinent part, that income and resources are considered 
available both when actually available and when the applicant or 
recipient has a legal interest in a liquidated sum and has the legal 
ability to make such sum available for support and maintenance.
    However, we now propose to incorporate the resource disregard in 
order to prevent any confusion that may result were we to incorporate 
only the income disregard provided under section 13736 of Pub. L. 103-
66. Therefore, we would further amend section 233.20 by adding 
paragraph (a)(4)(ii)(v) to incorporate the resource disregard required 
by section 8 of Pub. L. 93-134, as added by section 4 of Pub. L. 97-
458.

Regulatory Procedures

Executive Order 12866, Regulatory Planning and Review

    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. 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.
    The total Federal and State cost for implementing this statutory 
amendment is estimated to be $10.6 million for the first full year with 
$5.8 million (55.2%) of this amount being the Federal share. Assuming 
that the number of additional Indian families becoming eligible for 
AFDC after the first year is an added 10 percent, then an added cost of 
$0.6 million is estimated for a total Federal cost of $6.4 million. 
These costs result from the statutory requirements and not from 
decisions made in the proposed rule.

Regulatory Flexibility Act

    We certify that these regulations will not have significant impact 
on a substantial number of small entities because they primarily affect 
State governments and individuals. Therefore, a regulatory flexibility 
analysis as provided in Pub. L. 96-354, the Regulatory Flexibility Act, 
is not required.

Paperwork Reduction Act

    There will be no new reporting or recordkeeping requirements 
imposed on the public or the States which would require clearance by 
the Office of Management and Budget under the Paperwork Reduction Act 
of 1980 (Pub. L. 95-511).

(Catalog of Federal Domestic Assistance Program 93.020, Public 
Assistance Maintenance Assistance (State Aid)).

List of Subjects in 45 CFR Part 233

    Aliens, Grant programs/social programs, Public assistance programs, 
Reporting and recordkeeping requirements.

    Dated: July 28, 1994.
Mary Jo Bane,
Assistant Secretary for Children and Families.
    Approved: September 8, 1994.
Donna E. Shalala,
Secretary of Health and Human Services.

    For the reasons set out in the preamble, Part 233, Chapter I, Title 
45, Code of Federal Regulations, is proposed to be amended as follows:

PART 233--COVERAGE AND CONDITIONS OF ELIGIBILITY IN FINANCIAL 
ASSISTANCE PROGRAMS

    1. The authority citation for Part 233 is revised to read as 
follows:

    Authority: 42 U.S.C. 301, 602, 602 (note), 606, 607, 1202, 1302, 
1352 and 1382 (note); and sec. 6 of Pub. L. 94-114, 89 Stat. 579; 
Pub. L. 99-603, 100 Stat. 3359; sec. 4 of Pub. L. 97-458, 96 Stat. 
2513; sec. 2 of Pub. L. 98-64, 97 Stat. 365; sec. 1883 of Pub. L. 
99-514, 100 Stat. 2916; sec. 15 of Pub. L. 100-241, 101 Stat. 1812; 
sec. 105(f) of Pub. L. 100-383, 102 Stat. 908; sec. 206(d) of Pub. 
L. 100-383, 102 Stat. 914; sec. 105(i) of Pub. L. 100-707, 102 Stat. 
4693; sec. 1(a) of Pub. L. 101-201, 103 Stat. 1795; sec. 10405 of 
Pub. L. 101-239, 103 Stat. 2489; sec. 501(c) of Pub. L. 101-392, 104 
Stat. 831; sec. 6(h)(2) of Pub. L. 101-426, 104 Stat. 925; and sec. 
471(a) of Pub. L. 102-325, 106 Stat. 606 and 25 U.S.C. 1452.

    2. Section 233.20 is amended by revising paragraphs (a)(4)(i) and 
adding (a)(4)(ii)(v) to read as follows:


Sec. 233.20  Need and amount of assistance.

    (a) * * *
    (4) * * *
    (i) Provide that in determining eligibility for public assistance 
and the amount of the assistance payment, the following will be 
disregarded as income:
    (a) For all programs except AFDC. If the State chooses to disregard 
income from all sources before applying other provisions for 
disregarding or setting aside income, specify the amount that is first 
to be disregarded, but not more than $7.50 per month, of any income of 
an individual, child or relative claiming assistance. All income must 
be included such as social security or other benefits, earnings, 
contributions from relatives, or other income the individual may have;
    (b) Pursuant to section 8 of Pub. L. 93-134, as amended by section 
13736 of Pub. L. 103-66, disregard as income up to $2,000 per year of 
amounts derived from leases or any other uses of interests of 
individual Indians in trust or restricted lands. Any amounts retained 
after the month in which they are received will be taken into account 
as resources.
    (ii) * * *
    (v) As resources, pursuant to section 8 of Pub. L. 93-134, as added 
by section 4 of Pub. L. 97-458, interests of individual Indians in 
trust or restricted lands.
* * * * *
[FR Doc. 94-25178 Filed 10-11-94; 8:45 am]
BILLING CODE 4184-01-M