[Federal Register Volume 62, Number 58 (Wednesday, March 26, 1997)]
[Proposed Rules]
[Pages 14382-14384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7662]


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LEGAL SERVICES CORPORATION

45 CFR Part 1639


Welfare Reform

AGENCY: Legal Services Corporation.

ACTION: Proposed rule.

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SUMMARY: Part 1639 was published on August 29, 1996, as an interim rule 
with a request for comments. The interim rule was intended to implement 
a provision in the Legal Services Corporation's (``Corporation'' or 
``LSC'') FY 1996 appropriations act which restricts recipients from 
initiating legal representation or challenging or in any way 
participating in an effort to reform a Federal or State welfare system. 
Although this restriction has been retained under the Corporation's FY 
1997 appropriations act, recently enacted Federal legislation has 
changed the status of the Federal welfare system. In light of this 
change in law, the Corporation requests comments on a proposed revised 
version of the interim rule. The interim rule remains effective, 
however, until a final version has been adopted and published by the 
Corporation.

DATES: Comments must be submitted on or before April 25, 1997.

ADDRESSES: Comments should be submitted to the Office of the General 
Counsel, Legal Services Corporation, 750 First Street NE., 11th Floor, 
Washington, DC 20002-4250.

FOR FURTHER INFORMATION CONTACT: Victor M. Fortuno, General Counsel 
(202) 336-8910.

SUPPLEMENTARY INFORMATION: The Board of Directors (``Board'') of the 
Legal Services Corporation adopted an interim rule on July 20, 1996, 
for publication in the Federal Register with a request for comments. 
The interim rule was published and became effective on August 29, 1996. 
See 61 FR 45757. The interim rule implements Sec. 504(a)(16) of the 
Corporation's FY 1996 appropriations act, Pub. L. 104-134, 110 Stat. 
1321 (1996), which restricts recipients of LSC funds from initiating 
legal representation or participating in efforts to reform a Federal or 
State welfare system.
    Subsequent to the adoption of the interim rule by the Board, 
Congress enacted and the President signed the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996, 110 Stat. 2105 (1996) 
( ``Personal Responsibility Act''). The Board's Operations and 
Regulations Committee (``Committee'') held public hearings on the 
interim rule on December 13, 1996, and March 7, 1997. At the March 
meeting, the Committee adopted proposed revisions to the definitions in 
the interim rule to incorporate most provisions of the Personal 
Responsibility Act and requested that the proposed revisions be 
published for public comment. For comparison purposes, the interim rule 
can be found at 61 FR 45757 (Aug. 29, 1996).
    The version of the rule in this publication has no force of law and 
is submitted only as a proposed revised version of the interim rule 
which, if published as final, would replace the

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interim rule. The interim version of the rule remains controlling law 
until replaced by a final rule adopted and published by the 
Corporation.
    A discussion of the proposed revisions to the interim rule is 
provided below.

Section 1639.2  Definitions

    The interim rule defined Federal or State welfare system to include 
Federal and State AFDC programs under Title IV-A of the Social Security 
Act, 42 U.S.C. 601 et seq. and provisions enacted by Congress or a 
State to replace or modify these programs, such as Title I of the 
Personal Responsibility Act. The proposed revision continues this 
definition and specifically incorporates Title I of the Personal 
Responsibility Act, which replaced the AFDC program with the Temporary 
Assistance for Needy Family (``TANF'') Block Grant. Also included in 
the definition would be any components or requirements from other 
public benefit or human services programs that are part of the AFDC 
program, such as requirements of establishment of paternity and 
cooperation with child support enforcement. In addition, it would also 
include State changes in the AFDC program and State efforts to 
implement TANF, as well as State efforts to eliminate AFDC and replace 
it with a new program (for example, the Wisconsin Works program). 
Federal or State welfare system would also include any State AFDC 
programs or their replacements which are continued under TANF and are 
being conducted under waivers granted by the Department of Health and 
Human Services, pursuant to Sec. 1115 of the Social Security Act or 
other enacted legislation.
    Written comments supported the definition in the interim rule. 
However, the Committee seeks comments on the revised definition, which 
incorporates all other provisions of the Personal Responsibility Act, 
except for the Child Support provisions in Title III, and is proposed 
to respond to stated congressional concerns. Upon consideration of the 
legislative history of the Corporation's FY 1996 appropriations act and 
the entire welfare reform debate, including the debate over the Gramm 
Amendment to the Senate Welfare Reform bill, the Committee proposes 
this new definition as more accurately implementing the intent of 
Congress.
    The proposed revised definition does not include the changes in the 
Child Support Enforcement Program provisions in Title III of the 
Personal Responsibility Act, because there are significant differences 
between these provisions and the other provisions in the Personal 
Responsibility Act. Congress intended to restrict participation in 
efforts to reform welfare systems, and the child support program is not 
a welfare program. The child support program is basically a law 
enforcement program conducted by the courts and administrative agencies 
which has two main activities: (1) Establishing paternity and support 
obligations, and (2) enforcing support orders. No public benefits are 
paid to families participating in the IV-D system. The only money that 
is paid to families is private support payments collected from 
noncustodial parents. In addition, more than half of the families 
participating in the IV-D system are non-welfare, working families, and 
75% of child support collections made by the IV-D system go to non-
welfare families. Finally, although the statutory provision refers to 
seeking relief from a welfare agency, in some states the child support 
program is run by the state attorney general's office or state revenue 
department, not by a welfare agency.
    Before adopting a final rule, the Corporation specifically seeks 
comments on whether all of the provisions of the Personal 
Responsibility Act should be included within the definition of Federal 
or State welfare system and on the practical effect that including 
other provisions of the Personal Responsibility Act will have on the 
representation of eligible clients. Comments are solicited also on the 
proposal to exclude the Child Support provisions.
    The revised definition continues to include State General 
Assistance, General Relief, Direct Relief, Home Relief or similar state 
means-tested programs for basic subsistence which operate with State 
funding or under State mandate, and new programs enacted by States to 
replace or modify these programs.
    Federal or State welfare system does not include provisions in 
Federal programs which were not amended by the Personal Responsibility 
Act. Such programs as the Job Training Partnership Act, Medicaid, 
Medicare, Unemployment Insurance, Veterans Benefits, and Social 
Security would not be included within the definition of Federal or 
State welfare system under the proposed changes, since they were not 
amended by the Personal Responsibility Act.
    This proposed version makes no changes to the definition of Reform 
of a Federal or State welfare system.
    The term existing law was defined in the interim rule to include 
only Federal, State or local statutory laws or ordinances. Written 
comments on the interim rule generally supported this definition, 
although several pointed out that the definition did not make clear 
that laws or ordinances included within the definition were limited to 
those enacted to reform a Federal or State welfare system. The interim 
rule's definition also did not include regulations having the force and 
effect of law. This revised version provides that existing law includes 
regulations having the force and effect of law as well as laws and 
ordinances. It also clarifies that an existing law is one enacted to 
reform a Federal or State welfare system. The Corporation will consider 
comments on whether regulations should be included within the 
definition of existing law and the effect which the inclusion of 
regulations will have on the representation of eligible clients.

List of Subjects in 45 CFR Part 1639

    Grant programs; Legal services; Welfare reform.

    For reasons set forth in the preamble, LSC proposes to revise 45 
CFR part 1639 to read as follows:

PART 1639--WELFARE REFORM

Sec.
1639.1  Purpose.
1639.2  Definitions.
1639.3  Prohibition.
1639.4  Permissible representation of eligible clients.
1639.5  Exceptions for public rulemaking and responding to requests 
with non-LSC funds.
1639.6  Recipient policies and procedures.

    Authority: 42 U.S.C. 2996g(e); Pub. L. 104-208, 110 Stat. 3009; 
Pub. L. 104-134, 110 Stat. 1321.


Sec. 1639.1  Purpose.

    The purpose of this rule is to ensure that LSC recipients do not 
initiate litigation, challenge or participate in efforts to reform a 
Federal or State welfare system. The rule also clarifies when 
recipients may engage in representation on behalf of an individual 
client seeking specific relief from a welfare agency and under what 
circumstances recipients may use funds from sources other than the 
Corporation to comment on public rulemaking or respond to requests from 
legislative or administrative officials involving a reform of a Federal 
or State welfare system.


Sec. 1639.2  Definitions.

    (a)(1) Federal or State welfare system as used in this part means:
    (i) the Federal and State AFDC program under Title IV-A of the 
Social

[[Page 14384]]

Security Act as amended by the Personal Responsibility Work Opportunity 
Reconciliation Act of 1996, 110 Stat. 2105 (1996), and new programs or 
provisions enacted by Congress or the States to replace or modify these 
programs, including State AFDC programs conducted under Federal waiver 
authority;
    (ii) all other provisions of the Personal Responsibility Work 
Opportunity Reconciliation Act of 1996, 110 Stat. 2105 (1996), except 
for the Child Support provisions of Title III; and
    (iii) General Assistance or similar State means-tested programs 
conducted by States or by counties with State funding or under State 
mandates, and new programs or provisions enacted by States to replace 
or modify these programs;
    (2) Federal or State welfare system does not include other public 
benefit programs, unless changes to such programs are part of a reform 
of the AFDC or General Assistance programs.
    (b) Reform of a Federal or State welfare system as used in this 
part means a legislative or administrative effort to change key 
components of the Federal or State welfare system, including laws and 
regulations that implement the changes.
    (c) Existing law as used in this part means Federal, State or local 
statutory laws, ordinances or regulations having the force and effect 
of law, which are enacted to reform a Federal or State welfare system.


Sec. 1639.3  Prohibition.

    Except as provided in Secs. 1639.4 and 1639.5, recipients may not 
initiate legal representation, or participate in any other way in 
litigation, lobbying or rulemaking involving efforts to reform a 
Federal or State welfare system. Prohibited activities include 
participation in:
    (a) Litigation challenging laws or regulations enacted as part of a 
reform of a Federal or State welfare system.
    (b) Rulemaking involving proposals that are being considered to 
implement a reform of a Federal or State welfare system.
    (c) Lobbying or other advocacy before legislative or administrative 
bodies undertaken directly or through grassroots efforts involving 
pending or proposed legislation that is part of a reform of a Federal 
or State welfare system.
    (d) Litigation or other advocacy undertaken with regard to the 
granting or denying of State requests for Federal waivers of Federal 
requirements for AFDC.


Sec. 1639.4  Permissible representation of eligible clients.

    Recipients may represent an individual eligible client who is 
seeking specific relief from a welfare agency, if such relief does not 
involve an effort to amend or otherwise challenge existing law in 
effect on the date of the initiation of the representation.


Sec. 1639.5  Exceptions for public rulemaking and responding to 
requests with non-LSC funds.

    Consistent with the provisions of 45 CFR 1612.6 (a)-(e), recipients 
may use non-LSC funds to comment in a public rulemaking proceeding or 
respond to a written request for information or testimony from a 
Federal, State or local agency, legislative body, or committee, or a 
member thereof, regarding an effort to reform a Federal or State 
welfare system.


Sec. 1639.6  Recipient policies and procedures.

    Each recipient shall adopt written policies and procedures to guide 
its staff in complying with this part.

    Dated: March 21, 1997.
Victor M. Fortuno,
General Counsel.
[FR Doc. 97-7662 Filed 3-25-97; 8:45 am]
BILLING CODE 7050-01-P