[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67235-67241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32085]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Parts 301, 302, 303, 304, 306 and 307

RIN 0970-AB57


Child Support Enforcement Program; State Plan Approval and Grant 
Procedures, State Plan Requirements, Standards for Program Operations, 
Federal Financial Participation, Optional Cooperative Agreements for 
Medical Support Enforcement and Computerized Support Enforcement 
Systems

Agency: Office of Child Support Enforcement (OCSE), HHS.

Action: Final rule.

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Summary: This final rule revises or removes regulations, in part or 
whole, in response to the President's Memorandum of March 4, 1995 to 
heads of Departments and Agencies which announced a government-wide 
Regulatory Reinvention Initiative to reduce or eliminate burdens on 
States, other governmental agencies or the private sector. This rule 
also implements Public Law 104-35 which extends the date from October 
1, 1995 to October 1, 1997 by which States will have in effect, and 
approved by the Secretary, an operational automated data processing and 
information retrieval system meeting all requirements of Federal law 
enacted on or before the date of enactment of the Family Support Act of 
1988.

EFFECTIVE DATE: The final rule is effective December 20, 1996.

FOR FURTHER INFORMATION CONTACT: Division of Policy and Planning, OCSE, 
specifically: Marilyn R. Cohen, (202) 401-5366.

[[Page 67236]]

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    This rule does not require information collection activities and, 
therefore, no approvals are necessary under the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3507(d)).

Statutory Authority

    This regulation is issued under the authority granted to the 
Secretary by section 1102 of the Social Security Act (The Act). Section 
1102 of the Act requires the Secretary to publish regulations that may 
be necessary for the efficient administration of the functions for 
which she is responsible under the Act. In accordance with the 
Presidential directive to executive branch regulatory agencies to 
identify existing regulations that are redundant or obsolete, OCSE has 
examined Chapter III of Title 45, Code of Federal Regulations to 
evaluate those areas where regulations should be removed.

Background

    The Child Support Enforcement Amendments of 1984 (Pub. L. 98-378) 
featured provisions that required critical improvements in State and 
local child support enforcement programs. We are continuing this 
improvement by responding to the President's Memorandum of March 4, 
1995 to heads of Departments and Agencies which announced a government-
wide Regulatory Reinvention Initiative to reduce or eliminate mandated 
burdens on States, other governmental agencies or the private sector.
    The Presidential Memorandum required Agencies, by June 1, 1995, to 
conduct a page-by-page review of all regulations to eliminate or revise 
those that are outdated or otherwise in need of reform. OCSE conducted 
such a review, resulting in the revisions set forth in this document. 
Both substantive and technical changes are made including 
recodification such as renumbering and terminology revisions. We 
consider the changes in this final rule as only the first part of our 
response to the President's Regulation Reinvention Initiative. We are 
working with our partners to identify additional regulations which 
should be reevaluated given the new direction of regulatory 
reinvention.
    We deferred recommending any changes in existing rules which are 
impacted by enactment of the Personal Responsibility and Work Act 
Opportunity Reconciliation Act of 1996 (PRWORA). The deferred 
regulations will be reviewed in light of the PRWORA. At such time we 
will also determine whether the new requirements will be implemented by 
regulation or by other means. Because of enactment of the PRWORA, we 
have withdrawn the proposed changes in the requirements on making 
information available to consumer reporting agencies. The requirements 
in PRWORA on consumer reporting agencies supersede those in the NPRM 
and will be implemented along with the other new requirements.

Description of Regulatory Provisions

    This rule makes technical revisions, including recodification, to 
the various regulations, governing the child support program, as 
follows:

Section 301.1  General Definitions

    We are removing the specified years for Applicable matching rate of 
``1983 through 1987, 70 percent, FY 1988 and FY 1989, 68%,'' referenced 
in section 301.1 as such dates have passed.

Section 301.15  Grants

    We are making two technical revisions in this section. Part of the 
mailing address in paragraph (a)(1) is updated by replacing, ``Social 
and Rehabilitation Service, Attention: Finance Division, Washington, DC 
20201'' with ``Administration for Children and Families, Office of 
Program Support, Division of Formula, Entitlement and Block Grants, 370 
L'Enfant Promenade, S.W., Washington, D.C. 20447.'' In addition, we are 
replacing the phrase, ``Subpart G Matching and Cost Sharing'' with ``45 
CFR 74.23 Cost Sharing or Matching'' and replacing the phrase ``Subpart 
I Financial Reporting Requirements'' with ``45 CFR 74.52 Financial 
Reporting'' in paragraph (e). This latter revision coincides with 
substantial revisions of 45 CFR Part 74 by DHHS August 25, 1994 (59 FR 
43760).

Section 302.15  Reports and Maintenance of Records

    This rule implements section 454(10) of the Act which does not 
specify use of microfilm for record retention. We are removing 
paragraph (b) ``Conditions for Optional Use of Microfilm Copies,'' 
because microfilm use is obsolete due to automatic case tracking and 
electronic filing capability. This change results in the following: 
Paragraph (a) is without designation, paragraphs (a)(1) and (a)(2) are 
redesignated (a) and (b), and roman numerals (i) through (vii) are 
redesignated as arabic numbers (1) through (7), respectively. Removal 
of the microfilm reference does not preclude States from continuing to 
use microfilm as an information storage medium.

Section 302.33  Services to Individuals Not Receiving AFDC or Title IV-
E Foster Care Assistance

    We are removing paragraph (c)(1), Application Fee, as it refers to 
requirements in effect prior to October 1, 1985, which date has passed. 
Thus, paragraph (2) is renumbered as paragraph (1) and paragraph (3) is 
renumbered as paragraph (2). In addition, we are removing paragraph 
(e), Assignment, in order to eliminate unnecessary regulations. A State 
is not required to take an assignment but has discretion to do so. 
Removal of this subsection does not preclude a State from taking an 
assignment of rights from a non-AFDC recipient of IV-D services if 
necessary under State law or practice in order to deliver program 
service.

Section 302.34  Cooperative Arrangements

    The authorities for this rule are sections 1102 and 454(7) of the 
Act. Paragraph (b) specifies that cooperative arrangements existing 
prior to October 1, 1989, or entered into on or after October 1, 1989, 
must meet the criteria prescribed under Sec. 303.107 of this chapter by 
October 1, 1990. Therefore, we are removing paragraph (b) as the result 
of the passage of time. This revision leaves paragraph (a) without 
designation. We are also revising the first sentence of the remaining 
paragraph by adding ``under Sec. 303.107'' after ``cooperative 
arrangements.''

Section 302.36  Provision of Services in Interstate IV-D Cases

    The authorities for this rule are section 454(9) of the Act which 
addresses standards prescribed by the Secretary and section 1102 of the 
Act which addresses the Secretarial authority to issue regulations 
necessary for program administration. These requirements were 
originally placed in regulation to clarify that States are required to 
provide all necessary IV-D services in interstate cases. However, we 
are removing paragraphs (a)(1) through (a)(5), to eliminate repetition 
as Sec. 303.7(c)(7) also provides explicit provisions which specify the 
various functional responsibilities by the responding State. This does 
not alter the requirement for provision of services; it merely removes 
unnecessary text referenced elsewhere. This revision also removes the 
word, ``for:'' at the end of paragraph (a), thus leaving paragraph (a) 
without designation and ending the paragraph with the word, 
``chapter.''

[[Page 67237]]

Section 302.37  Distribution of Support Payments

    This rule implements section 454(11) of the Act. We are removing 
this section in an effort to reduce unnecessary rules because it 
references Secs. 302.32 and 302.51 which duplicate this section.

Section 302.54  Notice of Collection of Assigned Support

    This rule implements section 454(5) of the Act which does not 
specify dates. We are removing paragraph (a) which is obsolete as it 
specifies requirements in effect until December 31, 1992, which date 
has now passed. Thus, paragraph (b) is redesignated paragraph (a) and 
paragraph (c) is redesignated paragraph (b), respectively.
    We are also revising redesignated paragraph (a)(2) by adding the 
word, ``collected'' after the second mention of ``support'' to read as 
follows: ``The monthly notice must list separately payments collected 
from each absent parent when more than one absent parent owes support 
to the family and must indicate the amount of current support 
collected, the amount of arrearages collected and the amount of support 
collected which was paid to the family.'' This addition is made to 
clarify that it is the amount actually collected, not the amount owed 
that must be included in the notice, and will be consistent with the 
statutory language at section 454(5)(A) of the Act.
    Redesignated section 302.54(b)(1)(i) specifies one of the grounds 
upon which a State may be granted a waiver to permit the issuance of 
quarterly, rather than monthly, notices of the amount of support 
collected. Waivers granted under this criterion were based upon the 
State's lack of a computerized support enforcement system consistent 
with Federal requirements or the lack of an automated system that is 
able to generate monthly notices. Such waivers were valid through 
September 30, 1995.
    On October 12, 1995, Public Law 104-35 was signed into law, which 
revised section 454(24) of the Social Security Act. The revised statute 
extends the date from October 1, 1995 to October 1, 1997 by which 
States will have in effect, and approved by the Secretary, an 
operational automated data processing and information retrieval system 
meeting all requirements of Federal law enacted on or before the date 
of enactment of the Family Support Act of 1988. Because operating 
automated statewide systems are vital to a State's ability to issue 
monthly notices, we are revising the date clause to read ``Until 
September 30, 1997,'' in recognition of the additional time needed for 
States to have operational systems. Any automated system developed to 
meet the Federal requirements for a certified comprehensive Statewide 
system must produce mandated monthly notices of collections.
    States with previous waivers that expired September 30, 1995 can 
apply for extension of the waiver if the State does not have a 
computerized support enforcement system consistent with Federal 
requirements or lacks an automated system that is able to generate 
monthly notices. Extension of waivers will be granted as part of the 
State plan approval process.

Section 302.80  Medical Support Enforcement

    We are revising Sec. 302.80 by removing the reference to ``Part 306 
of this chapter'' in paragraph (a) and replacing it with ``Secs. 303.30 
and 303.31 of this chapter''. We are making this revision as Part 306 
is being removed with this final regulation.

Section 302.85  Mandatory Computerized Support Enforcement System

    On October 12, 1995, Public Law 104-35 was signed into law, which 
revises section 454(24) of the Social Security Act. The revised statute 
extends the date from October 1, 1995 to October 1, 1997 by which 
States must have in effect, and approved by the Secretary, an 
operational automated data processing and information retrieval system 
meeting all requirements of Federal law enacted on or before the date 
of enactment of the Family Support Act of 1988. Because the deadline by 
which States must have operational automated systems has been changed, 
we are removing the date in paragraph (a)(2) ``October 1, 1995'' and 
replacing it with ``October 1, 1997.''

Section 303.10  Procedures for Case Assessment and Prioritization

    This rule was issued under authority of section 1102 of the Act, as 
part of implementation of the Child Support Enforcement Amendments of 
1984 (Pub.L. 98-378). We are removing this section because case 
assessment and prioritization procedures are permissive and standards 
for an effective program at 45 CFR Part 303 require the State to 
provide necessary IV-D services in all cases in an efficient and 
effective manner. Therefore, it is not necessary to place this 
information in regulation.

Section 303.31  Securing and Enforcing Medical Support Obligations

    This rule implements section 452(f) of the Act. We are replacing 
references to ``Sec. 306.50(a)'' with ``Sec. 303.30(a)'' in paragraphs 
(b)(6) and (b)(7). This technical change is required to correct a 
clerical error. Revisions to Secs. 303.30 and 303.31 set forth in the 
final rule issued March 8, 1991 (56 FR 7988) did not make these 
technical changes.

Section 303.73  Applications To Use the Courts of the United States To 
Enforce Court Orders

    This regulation is based on sections 452(a)(8) and 460 of the Act. 
We are significantly streamlining this section in order to remove 
unnecessary regulatory language. An Action Transmittal (AT) issued 
February 6, 1976 (OCSE-AT-76-1) and revised May 12, 1976 (OCSE-AT-76-8) 
covers paragraphs (a) and (b) of the regulation. Since the procedures 
in this regulation are infrequently used, and their use is 
discretionary, it is sufficient for users to follow guidance in the AT. 
The AT, widely available to State child support agencies, gives express 
instructions for submitting cases for consideration for referral to 
Federal court. It is unnecessary to place paragraph (c) in regulation 
as it merely specifies internal instructions to the Regional Office.
    Therefore, we are revising the end of the introductory portion of 
paragraph (a) by removing, ``to demonstrate that'' and completing the 
paragraph by adding, ``in accordance with instructions issued by the 
Office,'' thus deleting paragraphs (a)(1) through (c).

Section 303.100  Procedures for Wage or Income Withholding

    In the administration of wage or income withholding, 
Sec. 303.100(g)(3) requires that effective October 1, 1995, States must 
be capable of receiving withheld amounts and accounting information 
which are electronically transmitted by the employer to the State. This 
effective date for electronic funds transfer capability was directly 
linked to the date by which States are required to have operational 
automated child support enforcement systems. On October 12, 1995, 
Public Law 104-35 was signed into law, which revised section 454(24) of 
the Social Security Act. The revised statute extends the date from 
October 1, 1995 to October 1, 1997 by which States will have in effect, 
and approved by the Secretary, an operational automated data processing 
and information retrieval system meeting all requirements of Federal 
law enacted on or before the date of enactment of the Family Support 
Act of 1988. Because the deadline by which States must have operational 
automated systems has been changed, we are revising the introductory 
clause in

[[Page 67238]]

paragraph (g)(3) to remove the phrase ``Effective October 1, 1995,'' 
and replacing it with ``Effective October 1, 1997,''.

Section 304.10   General Administrative Requirements

    We have replaced the parenthetical phrase, ``(with the exception of 
Subpart G, Matching and Cost Sharing and Subpart I, Financial Reporting 
Requirements)'' with ``(with the exception of 45 CFR 74.23, Cost 
Sharing or Matching and 45 CFR 74.52, Financial Reporting).'' This 
revision is being made to coincide with substantial revisions of 45 CFR 
Part 74 by DHHS August 25, 1994 (59 FR 43760).

Section 304.20  Availability and Rate of Federal Financial 
Participation

    We have made several technical revisions to update and correct this 
section. In paragraph (b)(1)(iii), we are replacing the phrase 
``Subpart P'' with ``... in accordance with the Procurement Standards 
found in 45 CFR 74.40 et. seq.'' We are making this revision to 
coincide with substantial revisions of 45 CFR Part 74 by DHHS August 
25, 1994 (59 FR 43760) because the regulation is applicable to the 
Child Support Enforcement program .
    In paragraph (b)(1)(vi), we are changing the reference from 
``Sec. 302.16'' to ``Sec. 304.15.'' We are making this technical 
revision because Sec. 304.15 is a cross-reference to the DHHS 
regulations on cost allocation at 45 CFR Part 95, Subpart E which 
replaced 45 CFR 302.16. In paragraph (b)(3)(iv), we are replacing 
``attachment'' with ``withholding'', in order to make the terminology 
consistent with the enactment of the Child Support Enforcement 
Amendments of 1984 (Pub. L. 98-378).
    In paragraph (b)(8), we are correcting a clerical error by 
replacing ``Sec. 302.2'' with ``Sec. 303.2.'' Finally, in paragraph 
(b)(11), we are removing ``Part 306, Subpart B, of this chapter'' and 
replacing it with ``Secs. 303.30 and 303.31 of this chapter''. We are 
making this technical fix to update this section to reflect the 
revision made in 1990 to redesignate Part 306 Subpart B as Secs. 303.30 
and 303.31.

Section 304.23  Expenditures for which Federal Financial Participation 
Is Not Available

    In paragraph (g), we are removing ``Part 306 of this chapter'' and 
replacing it with ``Secs. 303.30 and 303.31 of this chapter''.

Section 304.95  State Commissions on Child Support

    This rule was required by section 15 of Public Law 98-378 to be 
implemented by December 1, 1984 with a report of findings and 
recommendations to the Governor by October 1, 1985. We are removing 
this section as the requirement for a State to have a Commission on 
Child Support as a condition of eligibility for Federal funding expired 
on October 1, 1985. Although it is no longer mandatory, nothing 
precludes a State from having such a Commission.

Part 306  Optional Cooperative Agreements for Medical Support 
Enforcement; Section 306.0 Scope of This Part, Section 306.2 
Cooperative Agreement, Section 306.10 Functions To Be Performed Under a 
Cooperative Agreement, Section 306.11 Administrative Requirements of 
Cooperative Agreements, Section 306.20 Prior Approval of Cooperative 
Agreements, Section 306.21 Subsidiary Cooperative Agreements With 
Courts and Law Enforcement Officials, Section 306.22 Purchase of 
Service Agreements, and Section 306.30 Source of Funds

    Cooperative agreements for medical support enforcement was first 
added to the IV-D regulations (Part 306) in the February 11, 1980 joint 
final rule by the Health Care Financing Administration (HCFA) and OCSE 
implementing section 11 of Public Law 95-142 which added a new section 
1912 to the Social Security Act. Section 1912 authorized the Third 
Party Liability (TPL) program in the Medicaid agency and required the 
State to require Medicaid recipients, as a condition of Medicaid 
eligibility, to assign their support rights to any medical support and 
to cooperate with the State in establishing paternity and obtaining 
third party payments. Section 1912 also required the State plan to 
provide for the State Medicaid agency to make cooperative agreements 
with the State IV-D agency, and other appropriate agencies, courts, and 
law enforcement officials to assist in the TPL program, with an 
incentive payment to political subdivision, other State, or other 
entity that makes the TPL collection.
    As a result of an increasing degree of responsibility for IV-D 
agencies to perform medical support functions, very few of the 
functions listed in Sec. 306.10 continue to be optional. Many of the 
requirements listed as ``optional'' for IV-D agencies to perform under 
agreements with State Medicaid agencies have become mandatory under 
title IV-D (e.g., obtain sufficient health insurance information, 
Sec. 303.30; secure health insurance coverage, Sec. 303.31). This 
leaves only two optional procedures in Sec. 306.10 ((f) file insurance 
claims and (h) take direct action to recover TPL).
    We are removing and reserving Part 306. This will give States 
flexibility to enter into cooperative agreements with Medicaid agencies 
to perform activities which are beyond the mandatory medical support 
activities of the IV-D program. Cooperative agreements for medical 
support enforcement is a statutory requirement mandated on the Health 
Care Financing Administration (HCFA) which was placed in regulation at 
42 CFR 433.152 but optional for IV-D. This removal will not affect the 
continuation of existing cooperative agreements or formulation of 
future agreements between State child support agencies and State 
Medicaid agencies.

Section 307.5  Mandatory Computerized Support Enforcement Systems

    On October 12, 1995, Public Law 104-35 was signed into law, which 
revised section 454(24) of the Social Security Act. The revised statute 
extends the date from October 1, 1995 to October 1, 1997 by which 
States will have in effect, and approved by the Secretary, an 
operational automated data processing and information retrieval system 
meeting all requirements of Federal law enacted on or before the date 
of enactment of the Family Support Act of 1988. Because the deadline by 
which States must have operational automated systems has been changed, 
we are removing the date in paragraph (a) ``October 1, 1995'' and 
replacing it with ``October 1, 1997.''

Section 307.15  Approval of Advance Planning Documents for Computerized 
Support Enforcement Systems

    On October 12, 1995, Public Law 104-35 was signed into law, which 
revised section 454(24) of the Social Security Act. The revised statute 
extends the date from October 1, 1995 to October 1, 1997 by which 
States will have in effect, and approved by the Secretary, an 
operational automated data processing and information retrieval system 
meeting all requirements of Federal law enacted on or before the date 
of enactment of the Family Support Act of 1988. Therefore, we are 
removing the date in paragraph (b)(2) ``October 1, 1995'' and replacing 
it with ``October 1, 1997.''

Response to Comments

    We have received over 55 comments from representatives of State and 
local

[[Page 67239]]

agencies, national organizations, advocacy groups, and private citizens 
on the proposed rule published January 29, 1996 in the Federal Register 
(61 FR 2774). Comments received and our responses are as follows:

Services to Individuals Not Receiving AFDC or Title IV-E Foster Care 
Assistance (Assignment)--Section 302.33(e)

    1. Comment: We received one comment supporting removal of this 
paragraph and a number of comments suggesting removal would allow 
States to require assignments from non-AFDC cases which would violate 
Federal policy. The commenters indicated that it would deter custodial 
parents from requesting help.
    Response: Having non-AFDC cases assign their right to support is a 
State law issue, not a Federal issue. For non-AFDC cases, States cannot 
require the kind of assignment that gives them the authority to retain 
support, or any other assignment under State law as a condition of 
eligibility for IV-D services. The type of assignment that was 
specified in Sec. 302.33(e) is used by some States as an administrative 
technique to provide services. In such States, legal authority must be 
given to them in order to collect money on behalf of the family. 
Assignment for this purpose is not the same as the usual definition of 
assignment set forth in Federal regulations at 45 CFR 301.1. We are not 
changing policy but merely removing the citation because it is 
unnecessary.
    2. Comment: A number of commenters took the position that by 
deleting this paragraph, States would not be required to inform the 
custodial parents that assignments are not required.
    Response: We encourage States to inform custodial parents when such 
assignment is required and clearly explain the reason for this type of 
assignment. However, as indicated above, this is an issue of State law 
and procedures, and this notice should not be a Federal mandate in the 
current environment of having as few Federal regulations as possible.

Notice of Collection of Assigned Support (Grant a Waiver)--
302.54(b)(1)(i), Formerly (c)(1)(i)

    1. Comment: One commenter supports us in extending the date for the 
waiver to use a quarterly notice rather than a monthly notice to 
October 1, 1997 and a number of commenters are against this extension.
    Response: Congress provided authority for a waiver recognizing the 
importance of an automated system to generate monthly notices. On 
October 12, 1995, Public Law 104-35 was signed into law which revised 
Section 454(24) of the Social Security Act. The revised statute extends 
the date from October 1, 1995 to October 1, 1997 by which States will 
have in effect, and approved by the Secretary, an operational automated 
data processing and information retrieval system meeting all 
requirements of Federal law enacted on or before the date of enactment 
of the Family Support Act of 1988. Although most States have made 
significant progress in their Statewide systems development efforts, 
most States do not have certified systems and will be helped by this 
extension. Because waivers available under this paragraph are linked to 
the existence of an operational automated system, we extended this date 
accordingly.
    2. Comment: A few commenters urged that States who already have a 
waiver should not have to reapply for a waiver but should have the 
waiver extended automatically.
    Response: States with previous waivers that expired September 30, 
1995 can apply for extension of the waiver if the State does not have a 
computerized support enforcement system consistent with Federal 
requirements or lacks an automated system that is able to generate 
monthly notices. Extension of waivers will be granted as part of the 
State plan approval process.
    3. Comment: One commenter asked that we clarify that a waiver from 
monthly reporting will be available after October 1, 1997 for States 
that include an Automated Voice Response System with their Statewide 
system that provides the required notice information.
    Response: We believe the regulation is clear at section 
302.54(b)(1)(ii) that waivers may be granted indefinitely to provide 
quarterly notices if a State has a toll-free automated voice response 
system. In addition, as specified in the preamble to the final monthly 
notice regulation issued July 10, 1992 (57 FR 30666), indefinite 
waivers of the monthly notice requirement are allowed if States send 
quarterly notices and have an automated voice response system which 
provides all required information in Sec. 302.54(b)(2).
    4. Comment: Another commenter thought notices were unnecessary for 
former AFDC recipients when the State only has assigned arrears to 
collect as they have no interest in this information and are difficult 
to locate.
    Response: Section 454(5) of the Act and the implementing 
regulations at 45 CFR 302.54(a)(1) require that notice must be given to 
any custodial parent who has made an assignment to the State under 
section 402(a)(26) of the Act, and a collection applied to assigned 
arrears was made during the month unless they cannot be located.

Procedures for Case Assessment and Prioritization--Section 303.10

    1. Comment: We received several comments favoring removal of this 
section as it is difficult to implement and removal will give State 
programs the flexibility to manage their caseloads efficiently and 
effectively. Other commenters indicated that retaining this section 
would insure States know they can set priorities within the timeframes 
if they wish and allow IV-D agencies to operate more efficiently. One 
commenter indicated that removal would allow States to ignore cases in 
certain status/priorities regardless of staff limitations.
    Response: States are allowed discretion in the management of their 
program and we do not believe that regulating such discretion offers a 
benefit. IV-D agencies may set priorities without specific reference to 
such discretion in Federal regulations. The Standards for Program 
operations at 45 CFR Part 303 require the States to work all cases 
within specified timeframes. States will continue to have discretion to 
prioritize their work providing these program standards are met.

Applications to Use the Courts of the United States To Enforce Court 
Order--303.73

    1. Comment: A number of commenters indicated that removal of this 
section would limit further the number of cases using this enforcement 
technique as requestors would not have access to the Action Transmittal 
(AT) and that ATs are less easily accessed than CFRs.
    Response: Program instructions for this enforcement technique are 
clearly laid out in Action Transmittals OCSE-AT-76-1 and OCSE-AT-76-8 
which are accessible to the public on the Internet. AT-76-1 includes 
the application form with instructions on how to fill out each blank 
and AT-76-8 includes a corrected citation.

Procedures for Wage or Income Withholding--303.100

    1. Comment: Several commenters requested that we do not extend the 
deadline for accepting wage withholding collections through Electronic 
Funds Transfer from October 1, 1995 to October 1, 1997 as wage

[[Page 67240]]

withholding is an important tool for collecting child support.
    Response: Electronic Funds Transfer (EFT) is directly linked to 
automation. Extension of the deadline for EFT does not delay wage 
withholding, but rather delays the requirements for States to accept 
wage withholding collections from employers through EFT. Because Public 
Law 104-35 extends the date by which States must have in effect, and 
approved by the Secretary, an operational automated data processing and 
information retrieval system by two years, this conforming change 
regarding the use of EFT is necessary.

Optional Cooperative Agreements for Medical Support Enforcement--Part 
306

    1. Comment: One commenter questioned where it would be stated in 
regulations that a State IV-D agency may enter into a cooperative 
agreement with a Medicaid agency to provide services not mandated by 
title IV-D if section 306.10 is removed. The commenter further 
questioned whether a IV-D agency may enter into cooperative agreements 
to perform functions beyond those now listed in section 306.10.
    Response: Cooperative agreements were never required under title 
IV-D of the Act, and OCSE regulations. A IV-D agency may, at its 
discretion, enter into cooperative agreements with Medicaid agencies to 
perform functions beyond those mandated by title IV-D so long as the 
Medicaid agency pays for the costs of such activities. Since the 
optional cooperative agreements for medical support enforcement 
activities are not required by the statute, and few States have entered 
into these agreements, we are deleting these provisions from the 
regulations.
    2. Comment: A commenter asked whether FFP will become available for 
all medical support enforcement services performed under a cooperative 
agreement with Medicaid when section 306.30 is removed.
    Response: According to section 304.23(g), medical support services 
performed under cooperative agreement with title XIX Medicaid agencies 
are not eligible for FFP from OCSE. Activities performed by the IV-D 
agency under a cooperative agreement with the Medicaid agency must be 
funded by the Medicaid agency.
    3. Comment: A number of commenters pointed out two additional 
references to be deleted with this removal (i.e. 45 CFR Part 306 from 
sections 302.80 and 304.23(g)) in addition to our proposed removal from 
section 304.20(b)(11).
    Response: We appreciate this being brought to our attention and 
have deleted these references.

Regulatory Flexibility Analysis

    The Secretary certifies, under 5 U.S.C. 605(b), as enacted by the 
Regulatory Flexibility Act (Pub. L. 96-354), that this final rule will 
not result in a significant impact on a substantial number of small 
entities. The primary impact is on State governments and individuals 
and results from restating the provisions of the statute. State 
governments are not considered small entities under the Act.

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 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.

List of Subjects

45 CFR Part 301

    Child support, Grant programs/social programs.

45 CFR Part 302

    Child support, Grant programs/social programs, Reporting and 
recordkeeping requirements.

45 CFR Parts 303 and 304

    Child support, Grant programs/social programs, Reporting and 
recordkeeping requirements.

45 CFR Part 306

    Child support, Grant programs/social programs, Medicaid.

45 CFR Part 307

    Child support, Grant programs/social programs, Computerized support 
enforcement systems.

(Catalog of Federal Domestic Assistance Programs No. 93.563, Child 
Support Enforcement Program)

    Dated: November 22, 1996.
Olivia A. Golden,
Acting Assistant Secretary for Children and Families.

    For the reasons discussed above, title 45 chapter III of the Code 
of Federal Regulations is amended as follows:

PART 301--STATE PLAN APPROVAL AND GRANT PROCEDURES

    1. The authority citation for Part 301 continues to read as set 
forth below:

    Authority: 42 U.S.C. 651 through 658, 660, 664, 666, 667, 1301, 
and 1302.

    2. Section 301.1 is amended by revising the definition for 
``applicable matching rate'' to read as follows:


Sec. 301.1  [Amended]

* * * * *
    Applicable matching rate means the rate of Federal funding of State 
IV-D programs' administrative costs for the appropriate fiscal year. 
The applicable matching rate for FY 1990 and thereafter is 66 percent.
* * * * *


Sec. 301.15  [Amended]

    3. In 301.15, paragraph (a)(1) is amended by revising ``Social and 
Rehabilitation Service, Attention: Finance Division, Washington, DC 
20201'' to read ``Administration for Children and Families, Office of 
Program Support, Division of Formula, Entitlement and Block Grants, 370 
L'Enfant Promenade, S.W., Washington, DC 20447'' and paragraph (e) is 
amended by revising ``Subpart G Matching and Cost Sharing'' with ``45 
CFR 74.23 Cost Sharing or Matching'' and revising ``Subpart I Financial 
Reporting Requirements'' to read ``45 CFR 74.52 Financial Reporting.''

PART 302--STATE PLAN REQUIREMENTS

    4. The authority citation for Part 302 continues to read as 
follows:

    Authority: 42 U.S.C. 651 through 658, 664, 666, 667, 1302, 
1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), 1396(k).


Sec. 302.15  [Amended]

    5. In Sec. 302.15, paragraph (b) is removed and paragraphs (a), 
introductory text, (a)(1) introductory text, (a)(1) (i) through (vii) 
and (2) are redesignated as Sec. 302.15, introductory text, (a) 
introductory text, (a)(1) through (7) and (b) respectively.


Sec. 302.33  [Amended]

    6. In Sec. 302.33, paragraph (c)(1) is removed, paragraphs (c)(2) 
and (c)(3) are redesignated as (c)(1) and (c)(2), and paragraph (e) is 
removed.


Sec. 302.34  [Amended]

    7. In Sec. 302.34, paragraph (b) is removed, paragraph (a) is 
amended by removing the paragraph designation and the first sentence is 
amended by adding ``under Sec. 303.107'' after ``cooperative 
arrangements'' in the first sentence.


Sec. 302.36  [Amended]

    8. In Sec. 302.36, paragraph (a) introductory text is amended by 
removing ``for:'' and inserting a period

[[Page 67241]]

in its place at the end of the paragraph and removing paragraphs (a)(1) 
through (a)(5).


Sec. 302.37  [Removed and Reserved]

    9. Section 302.37 is removed and reserved.
    10. In Sec. 302.54, paragraph (a) is removed, paragraphs (b) and 
(c) are redesignated (a) and (b), respectively, the reference to 
``Until September 30, 1995'' in newly designated paragraph (b)(1)(i) is 
revised to read ``Until September 30, 1997'', and newly designated 
paragraph (a)(2) is revised to read as follows:


Sec. 302.54  Notice of collection of assigned support.

* * * * *
    (a) * * *
    (2) The monthly notice must list separately payments collected from 
each absent parent when more than one absent parent owes support to the 
family and must indicate the amount of current support collected, the 
amount of arrearages collected and the amount of support collected 
which was paid to the family.
* * * * *


Sec. 302.80  [Amended]

    11. Section 302.80 is amended by revising the reference to ``Part 
306 of this chapter'' in paragraph (a) to read ``Secs. 303.30 and 
303.31 of this chapter.''


Sec. 302.85  [Amended]

    12. In section 302.85, reference to ``October 1, 1995'' in 
paragraph (a)(2) is revised to read ``October 1, 1997.''

PART 303--STANDARDS FOR PROGRAM OPERATIONS

    13. The authority citation for Part 303 continues to read as 
follows:

    Authority: 42 U.S.C. 651 through 658, 660, 663, 664, 666, 667, 
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and 1396(k).


Sec. 303.10  [Removed and Reserved]

    14. Section 303.10 is removed and reserved.


Sec. 303.31  [Amended]

    15. In Sec. 303.31, reference to ``Sec. 306.50(a)'' is revised to 
read ``Sec. 303.30(a)'' in paragraphs (b)(6) and (b)(7).
    16. Section 303.73 is revised to read as follows:


Sec. 303.73  Applications to use the courts of the United States to 
enforce court orders.

    The IV-D agency may apply to the Secretary for permission to use a 
United States district court to enforce a support order of a court of 
competent jurisdiction against an absent parent who is present in 
another State if the IV-D agency can furnish evidence in accordance 
with instructions issued by the office.


Sec. 303.100  [Amended]

    17. In Sec. 303.100, reference to ``October 1, 1995'' in paragraph 
(g)(3) is revised to read ``October 1, 1997.''

PART 304--FEDERAL FINANCIAL PARTICIPATION

    18. The authority citation for Part 304 continues to read as 
follows:

    Authority: 42 U.S.C. 651 through 655, 657, 1302, 1396a(a)(25), 
1396b(d)(2), 1396b(o), 1396(p), and 1396(k).


Sec. 304.10  [Amended]

    19. In Sec. 304.10, the parenthetical phrase ``(with the exception 
of Subpart G, Matching and Cost Sharing and Subpart I, Financial 
Reporting Requirements)'' is replaced with ``(with the exception of 45 
CFR 74.23, Cost Sharing or Matching and 45 CFR 74.52, Financial 
Reporting).''


Sec. 304.20  [Amended]

    20. In Sec. 304.20, paragraph (b)(1)(iii) introductory text is 
amended by replacing ``Subpart P, Procurement Standards, 45 CFR Part 
74'' with ``in accordance with the Procurement Standards found in 45 
CFR 74.40 et seq.'', paragraph (b)(1)(vi) is amended by revising 
reference to ``Sec. 302.16 of this chapter'' to read ``Sec. 304.15'', 
paragraph (b)(3)(iv) is amended by revising the term ``attachment'' to 
read ``withholding;'', paragraph (b)(8) is amended by revising the 
reference ``Sec. 302.2'' to read ``Sec. 303.2'' and, paragraph (b)(11) 
is amended by revising ``Part 306, Subpart B, of this chapter'' with 
``Secs. 303.30 and 303.31 of this chapter''.


Sec. 304.23  [Amended]

    21. In Sec. 304.23, paragraph (g) is amended by replacing ``Part 
306 of this chapter'' with ``Secs. 303.30 and 303.31 of this chapter''.


Sec. 304.95  [Removed and Reserved]

    22. Section 304.95 is removed and reserved.

PART 306--OPTIONAL COOPERATIVE AGREEMENTS FOR MEDICAL SUPPORT 
ENFORCEMENT [REMOVED AND RESERVED]

    23. Part 306 is removed and reserved.

PART 307--COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS

    24. The authority citation for part 307 continues to read as 
follows:

    Authority: 42 U.S.C. 652 through 658, 664, 666, 667, and 1302.


Sec. 307.5  [Amended]

    25. In Sec. 307.5, reference to ``October 1, 1995'' in paragraph 
(a) is revised to read ``October 1, 1997.''


Sec. 307.15  [Amended]

    26. In Sec. 307.15, reference to ``October 1, 1995'' in paragraph 
(b)(2) is revised to read ``October 1, 1997.''

[FR Doc. 96-32085 Filed 12-19-96; 8:45 am]
BILLING CODE 4184-01-P