[Federal Register Volume 59, Number 235 (Thursday, December 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30234]


[[Page Unknown]]

[Federal Register: December 8, 1994]


      
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Part VI





Department of Labor





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Employment and Training Administration



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20 CFR Part 625




Disaster Unemployment Assistance Program; Advance Notice of Proposed 
Rulemaking
DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 625

 RIN 1205-AA50

 
Disaster Unemployment Assistance Program; Advance Notice of 
Proposed Rulemaking and Request for Comments

AGENCY: Employment and Training Administration, Labor.

ACTION: Advance notice of proposed rulemaking; request for comments.

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SUMMARY: The agency is considering revision of certain sections of the 
implementing regulation of the Disaster Unemployment Assistance (DUA) 
Program. Such revisions would clarify and simplify the States' 
administration of the Program which provides a weekly assistance amount 
to individuals unemployed as a direct result of a major disaster. The 
Department hereby provides an opportunity for public participation in 
developing proposed rules. If the Department decides to proceed with 
this rulemaking after reviewing the comments filed in response to this 
notice, a proposed rule will be published in accordance with the 
Administrative Procedure Act (5 U.S.C. 553).

DATES: Written comments on this advance notice of proposed rulemaking 
must be received in the Department of Labor on or before February 6, 
1995.

ADDRESSES: Written comments may be mailed or delivered to Mary Ann 
Wyrsch, Director, Unemployment Insurance Service, Employment and 
Training Administration, U.S. Department of Labor, Room S4231, 200 
Constitution Avenue NW., Washington, DC 20210.
    All comments received will be available for public inspection 
during normal business hours in Room S4231 at the above address.

FOR FURTHER INFORMATION CONTACT:
Robert Gillham, Group Chief, Federal Programs Group, Division of 
Program Development and Implementation, Office of Program Management in 
the Unemployment Insurance Service at the above address: Telephone 
(202) 219-5312 (this is not a toll-free number). This advanced notice 
of proposed rulemaking is available in alternative formats for the 
disabled, such as on electronic file, on computer disk and audio tape. 
They may be obtained at the above office.

SUPPLEMENTARY INFORMATION: Section 410(a) of The Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (Stafford Act) (42 U.S.C. 
5177) sets forth the outlines of the DUA Program. The President is 
authorized by section 410(a) of the Stafford Act to provide to any 
individual unemployed as a result of a major disaster declared by the 
President under the Stafford Act ``such benefit assistance as he deems 
appropriate while such individual is unemployed for the weeks of such 
unemployment with respect to which the individual is not entitled to 
any other unemployment compensation * * * or waiting period credit.'' 
Other terms of section 410(a) provide that disaster unemployment 
assistance (DUA) is to be furnished to individuals for no longer than 
26 weeks after the major disaster is declared; and for any week of 
unemployment a DUA payment is not to exceed the maximum weekly benefit 
amount authorized under the unemployment compensation (UC) law of the 
State in which the disaster occurred.
    Pursuant to a delegation of authority (51 FR 4988, February 10, 
1986) to the Secretary of Labor from the Director of the Federal 
Emergency Management Agency (FEMA), the DUA Program authorized by 
section 410(a) of the Stafford Act and the appeals of assistance 
provisions at section 423 are implemented in regulations promulgated by 
the Department of Labor (Department) and published at Part 625 of title 
20 of the Code of Federal Regulations. The DUA program is administered 
by the States in accordance with an agreement each State has signed 
with the Secretary of Labor.
    The DUA Program regulations were last amended with the publishing 
of a final rule in the Federal Register on May 16, 1991 (56 FR 22800). 
These amendments were basically limited to the changes to the DUA 
Program effected by the Disaster Relief and Emergency Assistance 
Amendments of 1988 (Pub. L. 100-107, November 23, 1988). Prior to the 
1991 final rule, the DUA Program regulations were last revised with 
publication of a final rule in the Federal Register on September 16, 
1977 (42 FR 46712).
    From 1977 until the summer of 1993 only occasional questions 
(primarily from the State agencies administering the program) 
concerning application or interpretation of the regulations to 
individual cases arose. The Department was able to respond to these 
occasional questions with specific answers relative to the individual 
case or to provide other guidance. The questions and responses did not 
warrant revisions of the DUA regulations.
    However, the major disasters declared in nine Midwest States due to 
the magnitude and severity of storms and flooding during the late 
spring and summer of 1993 caused the Department to respond to hundreds 
of inquiries from the State agencies concerning the DUA Program. These 
inquiries stemmed from the diversity of occupations and situations for 
thousands of unemployed individuals; the unavailability of individual 
and employer records due to flooding; the loss of transportation or 
accessibility to roads, bridges, etc.; and the fact that many thousands 
of individuals were able to continue partial employment. The 
Department's responses ranged from policy interpretations, such as the 
use of projected income expected for the year if the disaster had not 
occurred for purposes of computing a weekly amount and utilization of 
projected income after the disaster for determining reductions from the 
weekly amount for partial unemployment during a week, to blanket 
extensions of the filing period. These inquiries required the 
Department's review of the regulations and its past policy and guidance 
before a response could be provided. This review pointed out 
inconsistencies, lack of clarity, and unnecessary complexities in the 
regulations that hindered the Department's and States' administration 
of the DUA Program.
    Based on the hundreds of inquiries and questions from the State 
agencies administering the program, individuals, Governors, members of 
Congress, and other organizations, the Department believes that changes 
need to be made to the DUA Program regulations to address the above 
concerns. Therefore, the Department has decided to follow the process 
described below to make necessary amendments. The Department has also 
solicited comments from all the State agencies administering the DUA 
Program concerning needed changes. The paramount concern expressed in 
all the inquiries mentioned above and comments solicited from the State 
agencies dealt with the computation and amount of DUA payable for a 
week of unemployment under the provisions of 20 CFR 625.6, ``Disaster 
Unemployment Assistance: Weekly Amount.'' Therefore, the Department has 
determined that Sec. 625.6 should be amended as expeditiously as 
possible in order to provide a simpler, less complex computation of a 
reasonable DUA weekly payment to individuals unemployed due to a major 
disaster. To that end, the Department is planning to publish separately 
in the Federal Register an interim final rule amending Sec. 625.6, 
effective upon publication, with a request for comments. Due to the 
inconsistencies and unduly restrictive provisions in the current 
Sec. 625.6, the Department believes that it is contrary to the public 
interest and harmful to potential beneficiaries to not have the changes 
in place prior to the seasons of the year when most major disasters 
occur. Any comments received on that separate interim final rule 
amending Sec. 625.6 will be considered before a final rule is issued. 
Comments on the interim final rule should be submitted in accordance 
with the instructions provided therein, not as part of this notice.
    The purpose of this document is to inform the public of other 
provisions in 20 CFR Part 625 to which the Department is considering 
amendments, in order to provide the public with an opportunity for 
input prior to the specific Departmental proposed regulation. In 
addition, comments are requested on any other provisions of 20 CFR Part 
625, other than Sec. 625.6.
    As a matter of background, the first line of defense to an 
individual's unemployment due to a disaster is the UC program. UC 
partially replaces wages lost during temporary periods of unemployment 
so an individual can continue to obtain certain necessities (food, 
clothing, and shelter). Weekly DUA payments are designed to provide UC-
type assistance to the individual who is unemployed as a direct result 
of a major disaster declared by the President and is not eligible for 
UC. Like UC payments, the DUA Program is designed to provide temporary 
partial income replacement in order that the individual unemployment as 
a direct result of a major disaster can provide for the necessities of 
living. DUA and UC are not programs designed to provide 100 percent 
income replacement or to ameliorate business losses to self-employed 
individuals who suffer such losses due to a major disaster.
    In addition, DUA and UC payments are not based on need. Individuals 
must have performed some services indicating an attachment to the 
workforce, and, in the cases of DUA, an individual may qualify if the 
individual was prevented from commencing employment or self-employment. 
This is the major difference between unemployment programs and needs-
based programs.
    Therefore, considering that the framework and purpose of the DUA 
Program is akin to the UC Program, the Department is considering the 
following proposed amendments to 20 CFR Part 625. The Department 
requests comments on these proposed amendments as well as any other 
provision of 20 CFR 625, other than Sec. 625.6.

Amendments Under Consideration

    1. The Department is considering amending Sec. 625.2 to add a 
definition for ``Department'' to mean the U.S. Department of Labor and 
the Employment and Training Administration (ETA) within the Department. 
Under Secretary's Order No. 4-75 (40 FR 18515), ETA has authority to 
administer the DUA Program. In various documents issued to implement 
the DUA Program, references are made to the Department. Adding the 
definition is a technical clarification only to set forth in the 
regulations what is commonly understood by customers, such as State 
agencies, and is a common practice in all Departmental issuances.
    2. The Department is considering amending Sec. 625.2 (s) and (t), 
the definitions of an ``unemployed worker'' and ``unemployed self-
employed individual.'' Currently, these definitions include, in part, 
individuals who were employed or self-employed, or were to commence 
employment or self-employment, in the major disaster area at the time 
the major disaster began. The amendment to Sec. 625.2 (s) and (t) would 
also include individuals who reside in the major disaster area but are 
unable to reach their place of employment or self-employment outside of 
the major disaster area, and individuals who must travel through a 
major disaster area to their employment or self-employment, but are 
unable to do so as a direct result of the major disaster. The 
Department is considering this amendment based on the ``liberal 
construction'' requirement of Sec. 625.1(b). To limit eligibility for 
DUA to only those individuals who were employed or self-employed, or 
who were to commence employment or self-employment, in the major 
disaster area is a narrow construction and does not carry out the 
purposes of the Stafford Act.
    This amended definition would recognize that in today's mobile 
labor force not everyone resides in or near the location of his/her 
employment or self-employment. If a major disaster occurs that directly 
prevents the individual from performing services, i.e., meeting one or 
more of the causes of unemployment set out in Sec. 625.5, the 
individual should not be denied eligibility simply because he/she 
actually worked outside the major disaster area or was to commence work 
outside the disaster area. The State agency would make the same fact-
finding as it does now for individuals who are unable to reach their 
place of employment or self-employment under Sec. 625.5 (a)(2) and 
(b)(2). The State agencies would consider factors such as alternate 
means of transportation, other routes to work where the major disaster 
has disrupted the usual and/or shortest route, commuting patterns in 
the area, and the reasonableness of utilizing such alternatives in 
order to continue employment or self-employment.
    3. The Department is considering amending Sec. 625.4(g) to provide 
that an individual must be a citizen or national of the United States 
or, if an alien, be in ``satisfactory immigration status,'' as a 
condition of eligibility for DUA. This is based on the able and 
available requirements common to all State UC laws.
    The DUA Program provides for a type of unemployment compensation in 
which cash benefits are payable to individuals with respect to their 
unemployment as the direct result of a major disaster, which is 
analogous to the basis under which compensation is awarded under the 
Federal-State UC program. Accordingly, in implementing section 410(a) 
of the Stafford Act, Sec. 625.4(g) adapted the able and available 
requirement from the Federal-State unemployment compensation program by 
requiring the individual to be able and available ``within the meaning 
of the applicable State law * * *.''
    This able and available requirement pertains to all applicants for 
DUA, including aliens. The Department addressed the availability 
requirement for unemployment as it pertains to aliens in UIPL 1-86 (51 
FR 29713, August 20, 1986) and UIPLs 12-87, 12-87, Change 1, and 6-89 
(54 FR 10102, 10113 and 10116, respectively, March 9, 1989). The 
Department stated in these documents that an alien must be authorized 
to work by the Immigration and Naturalization Service to be available 
for work.
    Since the able and available provisions of State law apply to the 
DUA Program by virtue of Sec. 625.4(g), an alien must be authorized to 
work for those weeks for which DUA is claimed in order to be eligible 
for DUA. If an alien meets the exception provision of Sec. 625.4(g), in 
that an individual injured as a result of the major disaster is deemed 
to meet the able and available requirement, such alien must still be in 
``satisfactory immigration status'' because the injury does not convey 
such status to an alien. The Department plans to amend Sec. 625.4(g) to 
make this clear.
    The requirement that a DUA claimant be authorized to work during 
the period that benefits are claimed also parallels the requirements of 
sections 303(f) and 1137(d) of the Social Security Act (SSA) (42 U.S.C. 
503(f) and 42 U.S.C. 1320b-7(d), respectively) applicable to UC 
programs. The application of these provisions to the DUA Program was 
discussed in the preamble of the final rule implementing the 1988 
amendments, discussed above, and published in the Federal Register on 
May 16, 1991 (56 FR 22800, 22802-22803).
    4. The Department is considering amending Sec. 625.4(g) to provide 
that a deceased individual will not meet the able and available 
requirement within the meaning of the applicable State law after the 
date of death. See item 6 of this Advanced Notice of Proposed 
Rulemaking (ANPRM) which would provide for the new breadwinner or major 
support for a household to receive DUA in lieu of the decedent.
    5. The Department is considering amending Sec. 625.4 to add a new 
paragraph (j). This new paragraph would provide that employment in a 
Federal, State or locally funded temporary job designed to assist in 
clean-up or other activities to enable the community to recover from 
the effects of the major disaster is not employment that renders the 
individual ineligible for future DUA once the temporary job ends. Under 
the DUA Program, an individual is ineligible for further DUA under a 
major disaster declaration if that individual is reemployed in suitable 
employment or has commenced services in self-employment, since the 
individual would no longer be unemployed as a direct result of the 
major disaster. This amendment would clarify the Department's position 
that such temporary employment is not suitable employment, since it is 
not employment that was or is the individual's principal source of 
income and the individual's livelihood was or is dependent on such 
employment. Thus, the temporary employment would not disqualify the 
individual from continuing to receive DUA after the temporary 
employment ends.
    6. The Department is considering amending Sec. 625.5, 
``Unemployment caused by a major disaster,'' to provide a definition of 
the phrase ``as a direct result of the major disaster,'' as utilized 
for purposes of Sec. 625.5(a) and (b) in determining if an individual's 
unemployment is directly caused by the major disaster. Section 410(a) 
of the Stafford Act provides that ``the President is authorized to 
provide to any individual unemployed as a result of a major disaster * 
* *.'' This same language was in the Disaster Relief Acts of 1969, 
1970, and 1974. The Department's regulations have always provided that 
the unemployment must be ``as a direct result'' of the major disaster, 
but it has never been defined. Over the years, various interpretations 
have been applied by the States and the Department, with the result 
that some individuals unemployed for indirect or secondary reasons have 
been determined eligible. Therefore, to ensure greater uniformity, the 
Department is considering defining the phrase ``as a direct result of 
the major disaster.''
    For purposes of Sec. 625.5(a)(1) and (3) and Sec. 625.5(b)(1) and 
(3), the definition would limit eligibility to an unemployed individual 
who: (1Z) Can no longer perform services or commerce services in 
employment or self-employment because the job site or work location is 
made inoperable or is inaccessible as a direct result of the major 
disaster or (2) is unable to perform a majority (over 50 percent) of 
his/her usual and customary services that were being performed prior to 
the major disaster because sales to customers coming to the job site or 
work location have been substantially reduced as a direct result of the 
major disaster. Examples of reasons that may qualify an individual for 
DUA are:
    (1) The building(s) where services are performed in employment or 
self-employment is destroyed, under water, or has had structural damage 
causing it to be closed for safety reasons.
    (2) In the case of self-employed farmers or agricultural workers, 
the crop land or other real property where services are performed is 
under water, destroyed, or otherwise unavailable for performing 
services, or the crop(s) ready for harvest have been destroyed or 
cannot be harvested.
    (3) Power and/or water services that are necessary for performing 
services have been disrupted and work sites are closed until utility 
services are restored.
    (4) Tourists who usually come to a craft and souvenir shop within 
the major disaster area no longer are able to come to the major 
disaster area because of the disruption caused by the major disaster, 
and, therefore, a majority of the services of providing crafts and 
souvenirs can no longer be performed.
    The intent of amending Sec. 625.5(a)(1) and (3) and 
Sec. 625.5(b)(1) and (3) would be to provide equal treatment, for DUA 
eligibility purposes, among individuals who produce a product and those 
who provide a service (e.g., salespersons, shop owners, suppliers, 
etc.). Under the Department's current interpretation, an individual in 
the service section is not eligible for DUA if that individual can 
perform his/her customary services but customers are not seeking these 
services for reasons directly related to the major disaster. This 
amendment would change the Department's current interpretation and 
provide DUA eligibility (assuming the individual met the other DUA 
qualifying requirements) to an unemployed individual providing a 
service when a majority of his/her customers are not seeking these 
services as a direct result of the major disaster.
    On another point, under current Sec. 625.5(a)(2) and (b)(2), 
eligibility is limited to those cases where the individual's principal 
means of transportation to the job site or work location was made 
inoperable or destroyed as a direct result of the major disaster and 
there were no reasonable alternative means of transportation. In 
addition, under Sec. 625.5(a)(2) and (b)(2), an individual is 
considerable unable to reach a place of employment or self-employment 
as a direct result of the major disaster if all reasonable routes, by 
whatever means of transportation utilized by the individual, are closed 
or inaccessible to the individual, and there are no other reasonable 
routes or methods of transportation available that could be utilized. 
In determining eligibility under the provisions of paragraph (a)(2) and 
(b)(2), State agencies currently consider factors such as the normal 
commuting patterns and distances for the area, the availability of 
alternate transportation, and any attempts by the individual to get to 
the work site. The State agencies would continue to utilize the above 
factors in determining DUA eligibility under paragraphs (a)(2) and 
(b)(2). Paragraphs (a)(2) and (b)(2) of Sec. 625.5 are applicable to 
the amendments to Sec. 625.2(s) and (t) that the Department is 
considering and are described in item 2 of this ANPRM.
    Examples of situations where an individual may be eligible for DUA 
are:
    (1) The individual's only means of transportation is destroyed or 
made inoperable by the disaster and there are no other reasonable means 
of transportation available.
    (2) The primary route utilized by the individual (private or public 
transportation) to the work site or job location is destroyed or made 
impassable as a direct result of the major disaster and there are no 
reasonable alternate routes or means of transportation available.
    (3) An individual, such as a traveling salesperson, over-the-road 
or local truck driver, real estate salesperson, or supplier, is unable 
to perform a majority (over 50 percent) of the usual and customary 
services because of closed or impassable streets or roads to the 
location(s) where sales would occur or products are to be delivered.
    The Department is also considering amending Sec. 625.5(a)(5) and 
(b)(4) to clarify its position on individuals who are unable to perform 
services in employment or self-employment because of an injury caused 
as a direct result of the major disaster. The Department has 
interpreted these paragraphs to mean that the injury must have been 
accidental and coincidental with the disaster, not as a result of 
individuals putting themselves in a position (by personal choice not 
directly related to the individual's employment or self-employment) 
where there was likelihood or risk of personal injury or other physical 
harm due to the individuals' overall health condition(s).
    Some examples of injuries not caused as a direct result of the 
major disaster are:
    (1) An individual does not report to work because he/she elects to 
participate in sandbagging activities to prevent flooding of the 
community and, as a result, suffers an injury.
    (2) An individual elects not to report to work because he/she 
elects to repair damage to his/her house caused by the major disaster, 
and the individual is injured while doing the repairs.
    Examples of injuries caused as a direct result of a major disaster 
where an individual may be eligible for DUA are:
    (1) An individual is asleep at home and a tornado strikes the house 
injuring the individual.
    (2) An individual is performing service in employment or self-
employment at a work site and an explosion or fire occurs as a direct 
result of a major disaster causing the individual to be injured.
    (3) While traveling to or from the worksite, the individual is 
injured as the result of the destruction of the mode of transportation 
used which is the direct result of the major disaster.
    (4) While carrying out normal day-to-day activities not associated 
with the effects of the major disaster (e.g., going to the grocery 
store or doing usual household chores), the individual is injured as a 
direct result of the major disaster.
    The above examples indicate situations where individuals may be 
considered unemployed as a direct result of a major disaster under the 
amendments to Sec. 625.5 the Department is considering. They illustrate 
the direct link between the major disaster and the individuals' 
unemployment that the Department would require, but they are not 
limiting situations. They reflect the Department's position that an 
individual's unemployment must be the immediate result of the major 
disaster--the major disaster must be the primary cause of the 
unemployment, not some remote, indirect or distant cause of the 
individual's unemployment or loss of income, as would be the case where 
the injury stemmed from a personal choice related to the major 
disaster. In this regard, the Department recognizes that individuals 
may be faced with personal choices such as protecting property and 
family. However, in these situations, the unemployment of the 
individual may not be the direct result of the major disaster, but may 
be the result of the personal choice which is an indirect or secondary 
link to the major disaster.
    For purposes of Sec. 625.5(a)(4), the Department is considering 
adopting the following position on an individual who becomes the 
breadwinner or major support for a household because the head of the 
household has died as a direct result of the major disaster. The 
Department is considering a requirement that the deceased head of the 
household must have been a wage earning member of the household related 
by blood, marriage, adoption, or other legal arrangement to the 
individual who becomes the breadwinner or major support for the 
household, and who shared a common residence with the individual. The 
deceased wage earning head of household must have provided, through 
employment for wages, one-half or more of the household income or means 
of livelihood during the base period utilized for purposes of computing 
a DUA weekly amount under Sec. 625.6, or would have provided such 
income but for unemployment during the base period.
    7. The Department is considering amending Sec. 625.8(a) to provide 
that the period to file a timely DUA initial application is 60 days 
from the date of the State agency's announcement of the availability of 
DUA, or, if longer, the period announced by FEMA for individuals to 
file for other disaster relief programs under the jurisdiction or 
coordination of FEMA. For those few major disaster declarations where 
DUA is the only disaster relief program authorized in the agreement 
between FEMA and the Governor of the State in which the major disaster 
was declared, the Department is considering a filing deadline of 60 
days from the announcement date of the major disaster. This deadline, 
at the request of the State agency for good cause, could be uniformly 
extended by the Department for all DUA applicants filing in the State. 
In no event, however, would any extension of the timely filing period 
granted by the Department extend beyond 15 days after the expiration of 
the Disaster Assistance Period. The current provision in Sec. 625.8(a) 
that authorizes acceptance of an application filed more than 30 days 
after the State agency's announcement of the availability of DUA if an 
individual had good cause for the late filing would be considered for 
elimination for the following reasons.
    During the past few years the Department has received numerous 
requests from State agencies to authorize a blanket extension of the 
filing period for good cause for all individuals who are filing after 
the end of the 30-day announced filing period rather than the State 
agency having to determine good cause for late filing on an individual 
basis. Good cause has existed because of: concern about the successful 
notification of the availability of DUA to the entire potential 
applicant population; local State Agency offices being damaged or 
closed; destruction of roads and bridges that applicants would normally 
use to reach a local office; several amendments to major disaster 
declarations adding additional jurisdictions causing confusion on 
timely filing periods; and various other reasons. In addition, the 
current last filing date for the FEMA-announced disaster relief program 
does not coincide with the separately announced filing period for DUA. 
This has caused DUA applicants further confusion and, in some 
instances, to miss the DUA filing deadline because of the assumption 
that all disaster relief programs had the same filing period. Other 
Federal agencies, such as the Small Business Administration utilize the 
FEMA-determined filing deadline for its programs. The FEMA-determined 
filing period is applicable to an entire State or, in the case of the 
Midwest flooding, to all the States. Adoption of this change to 
Sec. 625.8(a) would eliminate the confusion surrounding amendments made 
to declarations and would have the various disaster relief programs 
utilizing the same ending date.
    The State agencies' requests for a blanket extension of the filing 
period have usually been for 30 days. When approved by the Department, 
this has resulted in a 60-day filing period, and this time period 
equals the 60-day period the Department is considering as a proposed 
amendment. Therefore, the Department does not expect many requests to 
be made for extensions, but it is the Department's view that provision 
should be made for them in the regulations.
    8. The Department is considering amending Sec. 625.8(c) to add a 
new paragraph to provide that an authorized legal representative, as 
determined under the laws of the applicable State, may file a DUA 
application and take any subsequent action on the application (such as 
an appeal) on behalf of an incapacitated applicant or an applicant's 
estate. This regulatory provision would set forth the Department's 
position and guidance now provided in UIPL No. 29-91.
    9. The Department is considering amending Sec. 625.14(c) to provide 
for two changes concerning exceptions to the recovery by offset of any 
debt due the United States. Section 625.14(c) provides that any DUA 
payable to an individual shall be applied by the State agency for the 
recovery by offset of any debt due the United States. It also provides 
that DUA payable shall not be applied or used by the State agency in 
any manner for the payment of any debt of the individual to any State 
or any other entity or person. The literal reading of this provision 
would limit offset to only those instances where a Federal debt is due. 
However, since the provisions of Sec. 625.14(c) went into effect, 
Federal laws have been amended to require the offset of UC for child 
support obligations being enforced under title IV-D of the SSA (section 
303(e)(2)(A)(iii), SSA; 42 U.S.C. 503(e)(2)(A)(iii)), as well as to 
make optional the offset of food stamp over-issuances (section 
303(d)(2)(B)(iii), SSA; 42 U.S.C. 503(d)(2)(B)(iii)). DUA payments are 
considered to be UC under 26 U.S.C. 85(c) and are, therefore, subject 
to the requirements of section 303(e)(2)(A)(iii) of the SSA in the case 
of child support obligations. Therefore, the Department is considering 
amending Sec. 625.14(c) to include the requirements for the offset of 
DUA for child support obligations being enforced under title IV-D of 
the SSA. The Department is also considering amending Sec. 625.14(c) to 
require the offset of DUA for food stamp over-issuances if the State 
makes such offsets under its State UC program.
    In addition, States are permitted to enter into cross-program 
offset agreements with the Secretary of Labor in accordance with 
section 303(g) of the SSA (42 U.S.C. 503(g)). In the final rule 
published May 16, 1991 (cited above), the Department added a new 
paragraph (3) to Sec. 625.14(b) providing that if the State has an 
agreement in effect to implement the cross-program offset provisions of 
section 303(g)(2) of the SSA, the provisions of such agreement are 
applicable to the DUA Program. However, no language was added to 
Sec. 625.14(c) to provide that if a State had a cross-program offset 
agreement in place under the provisions of section 303(g) of the SSA, 
intercept of DUA could be made to liquidate a debt due a State UC 
program. See UIPL 50-86 (51 FR 29713, 34273). For this reason, the 
Department is considering an amendment to Sec. 625.14(c) to provide for 
the intercept of DUA to liquidate a debt due the State UC program if 
the State has a cross-offset agreement under the section 303(g) of the 
SSA in place.
    10. The Department is considering amending Sec. 625.14(j), Criminal 
penalties, to specifically provide that the applicable Federal law 
under which an individual is subject to prosecution is 18 U.S.C. 1001. 
In addition, State agencies would be required to notify each applicant 
at the time of filing an initial application for DUA of the possibility 
of criminal prosecution under Sec. 1001 for fraudulently claiming DUA.
    11. The Department is considering amending Sec. 625.17, 
``Announcement of the beginning of a Disaster Assistance Period,'' to 
instruct the States to issue a notification setting the DUA filing 
deadline not later than the applicable date determined in accordance 
with Sec. 625.8. This provision would accommodate any filing period 
proposed under the amendments to Sec. 625.8 described in item 6 of this 
ANPRM.

Comments Invited

    The Department invites comments on the proposals listed above, or 
any other area of the DUA regulations, except Sec. 625.6, that the 
public views as needing clarification or amending. Comments on 
Sec. 625.6 may be filed in response to the separate rulemaking action 
to be published in the Federal Register.

Drafting Information

    This document was prepared under the direction and control of the 
Director, Unemployment Insurance Service, Employment and Training 
Administration, U.S. Department of Labor, 200 Constitution Avenue, NW., 
Washington, DC 20210: Telephone (202) 219-7831 (this is not a toll-free 
number).

Classification--Executive Order 12866

    This advance notice of proposed rulemaking provided in this 
document is classified as a ``significant regulatory action'' under 
Executive Order 12866 on Federal Regulations. The resulting final rule 
may:
    (1) Materially alter the budgetary impact of entitlements or the 
rights and obligations of recipients thereof; or
    (2) Raise novel legal or policy issues arising out of legal 
mandates and the President's priorities. It is not likely to:
    (3) Result in an annual effect on the economy of $100 million or 
more;
    (4) Create a serious inconsistency or interfere with action taken 
or planned by another agency.

Any cost and benefit analysis or assessment of the potential effects 
cannot be made with this advance notice of proposed rulemaking since 
the scope of the amendments will not be finalized until the notice of 
proposed rulemaking is completed based on comments received to this 
advance notice.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980, 44 U.S.C. 
Ch 35, approval has been obtained from the Office of Management and 
Budget (OMB) for the recordkeeping and reporting requirements under 
Sec. 625.16(a) for the DUA forms ETA 90-2, 81, 81A, 82, 83, and 84. The 
OMB control number for the 90-2 is 1205-0234, and for the 81, 81A, 82, 
83, and 84 it is 1205-0051. OMB approval has also been obtained for the 
recordkeeping and reporting requirements under Sec. 625.19(b), under 
OMB control number 1205-0051.

Catalog of Federal Domestic Assistance Number

    This program is listed in the Catalog of Federal Domestic 
Assistance at No. 17.225, ``Disaster Unemployment Assistance (DUA).''

Lists of Subjects in 20 CFR Part 625

    Disaster Unemployment Assistance, Labor, reemployment services, 
unemployment compensation.

    Signed at Washington, DC, on December 1, 1994.
Doug Ross,
Assistant Secretary of Labor.
[FR Doc. 94-30234 Filed 12-7-94; 8:45 am]
BILLING CODE 4510-30-M