[Federal Register Volume 62, Number 224 (Thursday, November 20, 1997)]
[Proposed Rules]
[Pages 62124-62231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30195]
[[Page 62123]]
_______________________________________________________________________
Part II
Department of Health and Human Services
_______________________________________________________________________
Administration for Children and Families
_______________________________________________________________________
45 CFR Part 270, et al.
Temporary Assistance for Needy Families Program (TANF); Proposed Rule
Federal Register / Vol. 62, No. 224 / Thursday, November 20, 1997 /
Proposed Rules
[[Page 62124]]
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
45 CFR Parts 270, 271, 272, 273, 274, 275
RIN 0970-AB64, 0970-AB76, and 0970-AB77
Temporary Assistance for Needy Families Program (TANF)
AGENCY: Administration for Children and Families, HHS.
ACTION: Proposed rule.
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SUMMARY: The Administration for Children and Families (ACF) proposes to
issue regulations governing key provisions of the new welfare block
grant program enacted in 1996--the Temporary Assistance for Needy
Families, or TANF, program. It replaces the national welfare program
known as Aid to Families with Dependent Children (AFDC) and the related
programs known as the Job Opportunities and Basic Skills Training
Program (JOBS) and the Emergency Assistance (EA) program.
The proposed rules reflect new Federal, State, and Tribal
relationships in the administration of welfare programs; a new focus on
moving recipients into work; and a new emphasis on program information,
measurement, and performance. The proposed rules also reflect the
Administration's commitment to regulatory reform.
DATES: You must submit comments by February 18, 1998.
ADDRESSES: You may mail or hand-deliver comments to the Administration
for Children and Families, Office of Family Assistance, 5th Floor East,
370 L'Enfant Promenade, SW, Washington, DC 20447. You may also transmit
written comments electronically via the Internet. To transmit comments
electronically, or download an electronic version of the proposed rule,
you should access the ACF Welfare Reform Home Page at http://
www.acf.dhhs.gov/news/welfare/ and follow any instructions provided.
We will make all comments available for public inspection on the
5th Floor East, 901 D Street, SW, Washington, DC 20447, from Monday
through Friday between the hours of 9 a.m. and 4 p.m. For additional
information, see Supplementary Information section of the preamble.
FOR FURTHER INFORMATION CONTACT: Mack Storrs, Director, Division of
Self-Sufficiency Programs, Office of Family Assistance, ACF, at 202-
401-9289, or Robert Shelbourne, Chief, Program Development Branch, at
202-401-5150.
Deaf and hearing-impaired individuals may call the Federal Dual
Party Relay Service at 1-800-877-8339 between 8 a.m. and 7 p.m. Eastern
time.
SUPPLEMENTARY INFORMATION:
Comment Procedures
We will not consider comments received beyond the 90-day comment
period in developing the final rule. Because of the large number of
comments we anticipate, we will only accept written comments. In
addition, all your comments should:
Be specific;
Address only issues raised by the proposed rule, not the
law itself;
Where appropriate, propose alternatives;
Explain reasons for any objections or recommended changes;
and
Reference the specific section of the proposed rule that
you are addressing.
We will not acknowledge the comments we receive. However, we will
review and consider all that are germane and received during the
comment period.
Table of Contents
I. The Personal Responsibility and Work Opportunity Reconciliation
Act
II. Regulatory Framework
A. Consultations
B. Related Regulations under Development
C. Statutory Context
D. Regulatory Reform
E. Scope of This Rulemaking
F. Applicability of the Rules
III. Principles Governing Regulatory Development
A. Regulatory Restraint
B. State Flexibility
C. Accountability for Meeting Program Requirements and Goals
IV. Discussion of Individual Regulatory Provisions
A. Part 270--General Temporary Assistance for Needy Families
(TANF) Provisions
B. Part 271--Ensuring that Recipients Work
C. Part 272--Accountability Provisions--General
D. Part 273--State TANF Expenditures
E. Part 274--Other Accountability Provisions
F. Part 275--Data Collection and Reporting Requirements
V. Regulatory Impact Analyses
A. Executive Order 12866
B. Regulatory Flexibility Analysis
C. Paperwork Reduction Act
D. Unfunded Mandates Reform Act of 1995
I. The Personal Responsibility and Work Opportunity Reconciliation
Act
On August 22, 1996, President Clinton signed ``The Personal
Responsibility and Work Opportunity Reconciliation Act of 1996''--or
PRWORA--into law. The first title of this new law (Pub. L. 104-193)
establishes a comprehensive welfare reform program designed to change
the nation's welfare system dramatically. The new program is called
Temporary Assistance for Needy Families, or TANF, in recognition of its
focus on moving recipients into work and time-limiting assistance.
Other key features of TANF include its provisions to reward States for
high performance and to encourage continued State expenditures on
assistance to needy families.
PRWORA repeals the existing welfare program known as Aid to
Families with Dependent Children (AFDC), which provided cash assistance
to needy families on an entitlement basis. It also repeals the related
programs known as the Job Opportunities and Basic Skills Training
program (JOBS) and Emergency Assistance (EA).
The new TANF program went into effect on July 1, 1997, except in
States that elected to submit a complete plan and implement the program
at an earlier date.
The new law reflects widespread, bipartisan agreement on a number
of key principles:
Welfare reform should help move people from welfare to
work.
Welfare should be a short-term, transitional experience,
not a way of life.
Parents should receive the child care and the health care
they need to protect their children as they move from welfare to work.
Child support programs should become tougher and more
effective in securing support from absent parents.
Because many factors contribute to poverty and dependency,
solutions to these problems should not be ``one size fits all.'' The
system should allow States, Indian tribes, and localities to develop
diverse and creative responses to their own problems.
The Federal government should focus less attention on
payment accuracy and program procedures and place more emphasis on
program results.
This landmark welfare reform legislation dramatically affects not
only needy families, but also intergovernmental relationships. It
challenges Federal, State, Tribal and local governments to foster
positive changes in the culture of the welfare system and to take more
responsibility for program results and outcomes. It transforms the way
agencies do business, requiring that they engage in genuine
partnerships with each other,
[[Page 62125]]
with businesses, community organizations and needy families.
The new law provides an unparalleled opportunity to achieve true
welfare reform. It also presents very significant challenges for
families and State and Tribal entities in light of the changing program
structure, loss of Federal entitlements, creation of time-limited
assistance, and new penalty and bonus provisions.
Most of the resources in the AFDC program went to support mothers
raising their children alone. In the early years, the expectation was
that these mothers would stay home and care for their children; in
fact, in a number of ways, program rules discouraged work. Over time,
as social and economic conditions changed, and more women entered the
work force, the expectations changed. In 1988, Congress enacted the new
JOBS program to provide education, training and employment that would
help needy families avoid long-term welfare dependence. By 1994, 20
percent of the non-exempt adult AFDC recipients nationwide were
participating in the JOBS program.
In spite of these changes, national sentiment supported more
drastic change. Policy-makers, agency officials and the public
expressed frustration about the slow progress being made in moving
welfare recipients into work and the continuing decline in family
stability. States were clamoring for more flexibility to reform their
programs.
While the Clinton Administration had supported individual reform
efforts in almost every State, approving 80 waivers in its first five
years, the waiver process was not an ideal way to achieve systemic
change. It required separate Federal approval of each individual reform
plan, limited the types of reforms that could be implemented, and
enabled reforms to take place only one State at a time. Governors
joined Congress and the President in declaring that the welfare system
was ``broken.''
After more than two years of discussion and negotiation, PRWORA
emerged as a bipartisan vehicle for comprehensive welfare reform. On
July 31, 1996, President Clinton issued a statement indicating that the
pending bill had the potential ``to transform a broken system that
traps too many people in a cycle of dependence to one that emphasizes
work and independence, to give people on welfare a chance to draw a
paycheck, not a welfare check. It gives us a better chance to give
those on welfare what we want for all families in America, the
opportunity to succeed at home and at work.''
The law that was enacted three weeks later gives States, and
federally recognized Indian tribes, the authority to use Federal
welfare funds ``in any manner that is reasonably calculated to
accomplish the purpose'' of the new program.
It provides them broad flexibility to set eligibility rules and
decide what benefits are most appropriate. It also enables States to
implement their new programs without getting the ``approval'' of the
Federal government. In short, it offers States and Tribes an
opportunity to try new, far-reaching changes that can respond more
effectively to the needs of families within their own unique
environments.
PRWORA redefines the Federal role in administration of the nation's
welfare system. It limits Federal regulatory and approval authority,
but gives the Federal government new responsibilities for tracking
State performance. In a select number of areas, it calls for penalties
when States fail to comply with program requirements, and it provides
bonuses for States that perform well in meeting new program goals.
Under the new statute, program funding and assistance for families
both come with new expectations and responsibilities. Adults receiving
assistance are expected to engage in work activities and develop the
capability to support themselves before their time-limited assistance
runs out. States and Tribes are expected to assist recipients making
the transition to employment. They are also expected to meet work
participation rates and other critical program requirements in order to
maintain their Federal funding and avoid penalties.
Some important indicators of the change in expectations are: time
limits; higher participation rates; the elimination of numerous
exemptions from participation requirements that existed under prior
law; and the addition of a statutory option for States to require
individual responsibility plans. Taken together, these provisions
signal an expectation that we must broaden participation beyond the
``job-ready.''
In meeting these expectations, States need to examine their
caseloads, identify the causes of long-term underemployment and
dependency, and work with families, communities, businesses, and other
social service agencies in resolving employment barriers. In some
cases, States may need to provide intervention services for families in
crisis or may need to adapt program models to accommodate individuals
with disabilities or other special needs. TANF gives States the
flexibility they need to respond to such individual family needs, but,
in return, it expects States to move towards a strategy that provides
appropriate services for all needy families.
II. Regulatory Framework
A. Consultations
In the spirit of both regulatory reform and PRWORA, we implemented
a broad and far-reaching consultation strategy prior to the drafting of
this Notice of Proposed Rulemaking (NPRM). In Washington, we set up
numerous meetings with outside parties to gain information on the major
issues underlying the work, penalty, and data collection provisions of
the new law. In our ten regional offices, we used a variety of
mechanisms--including meetings, conference calls, and written
solicitations--to garner views from ``beyond the Beltway.''
The purpose of these discussions was to gain a variety of
informational perspectives about the potential benefits and pitfalls of
alternative regulatory approaches. We spoke with a number of different
audiences, including: representatives of State, Tribal and local
governments; nonprofit and community organizations; business and labor
groups; and experts from the academic, foundation, and advocacy
communities. We solicited both written and oral comments, and we worked
to ensure that information and concerns raised during this process were
shared with both the staff working on individual regulatory issues and
key policy-makers.
These consultations were very useful in helping us identify key
issues and evaluate policy options. However, we would like to emphasize
that we are publishing these regulations as a proposed rule. Thus, all
interested parties have the opportunity to voice their concerns and
react to specific policy proposals. We will review comments we receive
during the comment period and take them into consideration before
issuing a final rule.
B. Related Regulations Under Development
This NPRM addresses the work, accountability, and data collection
and reporting provisions of the new TANF program. Over the next several
months, we expect to issue a number of other related proposed rules,
covering: child poverty rates; high performance bonuses; illegitimacy
reduction bonuses; and Tribal TANF and work programs.
We will also be issuing a number of NPRMs on the child support
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enforcement provisions found in title III of PRWORA.
This NPRM does not include the provisions for the new Welfare-to-
Work (WTW) provisions at section 403(a)(5) of the Act, as created by
section 5001(a)(1) of Pub. L. 105-33. The Secretary of Labor is
responsible for issuing regulations on these provisions and the
provisions at section 5001(c), regarding WTW grants for Tribes.
Information about this program is available on the Web at http://
wtw.doleta.gov.
This NPRM does include the conforming amendment to the definition
of ``qualified State expenditures'' required by section 5001(a)(2) of
Pub. L. 105-33, as well as the amendments to the TANF provisions at
sections 5001(d), 5001(g)(1), and 5001(h). Section 5001(d) addresses
treatment of assistance under WTW under the TANF time limits. Section
5001(g)(1) provides a new penalty that takes away WTW funds when a
State fails to meet the TANF MOE requirements. Section 5001(h)
addresses the relationship between an individual penalty and work
requirements.
This NPRM does not include the provision at section 5001(g)(2),
which requires repayment of WTW funds to the Secretary of Labor
following a finding by the Secretary of Labor of misuse of funds. Since
the Department of Labor is responsible for administering this penalty
and receives any repaid funds, it would not be appropriate for us to
issue rules on this provision.
Under section 5001(e) of Pub. L. 105-33, we have responsibility for
regulating the WTW data reporting requirements, under section 411(a) of
the Act, as amended.
We will issue a rulemaking that addresses these requirements at a
later date, following consultation with the Department of Labor, State
agencies, Private Industry Councils, and other affected parties.
We encourage States and others who are interested in these areas to
review and comment on these proposed rules when they are published in
the Federal Register.
You should be aware of the important relationships between this
regulatory package and the other packages that will be following. In
particular, we would like to point out that section 412 of the Social
Security Act (as amended by PRWORA) provides that federally recognized
Tribes may elect to operate their own TANF programs, and Tribes that
operated their own JOBS programs may continue to receive those funds to
operate Tribal work programs.
The choice Tribes make on TANF will depend on a number of factors,
including the nature of services and benefits available under the State
program. Thus, Tribes have a direct interest in the regulations
governing State programs.
Tribes also have an interest in these regulations because some of
the rules we develop for State programs could eventually apply to the
Tribal programs. In particular, we urge Tribes to note the data
collection and reporting requirements at part 275. While the statute
allows Tribes to negotiate certain program requirements, it subjects
Tribal programs to the same data collection and reporting requirements
as States.
We would also like to direct the Tribes to the maintenance-of-
effort (MOE) policies discussed at Sec. 273.1. In that section, we
propose that State contributions to a Tribal program could count toward
a State's MOE. Tribes should be aware that this proposal could have
important implications for the funding of Tribal programs and State-
Tribal relations.
In order for welfare reform to succeed in Indian country, it is
important for State and Tribal governments to work together on a number
of key issues, including data exchange and coordination of services. We
remind States that Tribes have a right under law to operate their own
programs. States should cooperate in providing the information
necessary for Tribes to implement their own programs.
Likewise, Tribes should cooperate with States in identifying Tribal
members and tracking receipt of assistance.
We are also issuing separate final rules to make conforming changes
to our existing rules in chapter II of title 45.
In the first, we will be repealing the obsolete regulations for the
EA, JOBS, and the IV-A child care programs, and some rules covering
administrative requirements of the AFDC programs. This rulemaking will
be a final rule, effective upon publication. We expect to eliminate
about 82 pages from the Code of Federal Regulations.
Later on, we will be issuing a final rule that deletes or replaces
obsolete AFDC and title IV-A references throughout chapter II. This
second rulemaking will take additional time because the AFDC provisions
are intertwined with provisions for other programs that are not
repealed. Also, it is not clear that we should repeal all the AFDC
provisions because Medicaid, foster care and other programs depend on
the AFDC rules in effect under prior law. Because of these complexities
and the non-urgent nature of the conforming changes, the second rule is
on a slower schedule.
PRWORA also makes changes to other major programs administered by
ACF, the Department, and other Federal agencies that may significantly
affect a State's success in implementing welfare reform. For example,
title VI of PRWORA repeals the child care programs that were previously
authorized under title IV-A of the Social Security Act (the Act). In
their place, it provides two new sources of child care funding for the
Lead Agency that administers the Child Care and Development Block Grant
program. A major purpose of the increases in child care funding
provided under PRWORA is to assist low-income families in their efforts
to be self-sufficient. We issued proposed rules covering this new
funding and amendments to the Child Care and Development Block Grant
program on July 23, 1997. Comments were due within 60 days of that
date.
We encourage you to look in the Federal Register for rulemaking
actions on related programs and to take the opportunity to comment.
C. Statutory Context
These proposed rules reflect PRWORA, as enacted, and amended by
Pub. L. 104-327 and Pub. L. 105-33.
The changes made by Pub. L. 104-237 are fairly limited in scope; we
discuss them in the preamble on contingency fund MOE requirements at
Secs. 274.71, 274.72, and 274.77.
Pub. L. 105-33 created the new Welfare-to-Work (WTW) program, made
a few substantive changes to the TANF program, and made numerous
technical corrections to the TANF statute. Throughout the preamble
discussion and the appendices, you will note references to the
amendments made by this legislation. However, as we previously
mentioned, this NPRM includes only a limited number of changes related
to the new WTW provisions. The Department of Labor has primary
responsibility for administering the program and issuing the WTW
regulations. We have responsibility for issuing rules on the WTW data
collection requirements, but will be doing that at a subsequent date.
D. Regulatory Reform
In its latest Document Drafting Handbook, the Office of the Federal
Register supports the efforts of the National Performance Review and
encourages Federal agencies to produce more reader-friendly
regulations. In drafting this proposed rule, we have paid close
attention to this guidance. Individuals who are familiar with our
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existing welfare regulations should notice that this package
incorporates a more readable style. This rulemaking effort gave us a
unique opportunity to change our approach because we were starting from
scratch rather than amending an existing rule.
In the spirit of facilitating understanding, we have included some
preamble discussion and regulatory text to give you a broader context
for other parts of the rulemaking document. Examples include the
provisions in subparts A and G of part 271 (which address work
provisions other than participation rates and penalties) and
Sec. 270.20 (which includes the statutory goals of the program). These
sections are primarily explanatory or restatements of the statutory
requirements. The language used and the surrounding discussion should
indicate the nature of the provision.
In the same spirit, we have included draft data collection and
reporting forms as appendices to the proposed rules even though we do
not intend to publish the forms as part of the final rule. We thought
that the inclusion of the draft forms would expand public access to
this information and make it easier to comment on our data collection
and reporting plans.
E. Scope of This Rulemaking
Our initial regulatory plan for TANF included three separate TANF
regulations--one each on work, penalties, and data collection and
reporting. However, we decided it would be better to incorporate these
into a single regulatory package. While this decision resulted in a
much larger document, it should facilitate your understanding of the
entire regulatory framework of the TANF program, as well as your review
and comment.
F. Applicability of the Rules
As we indicated in previous policy guidance to the States, a State
may operate its program under a reasonable interpretation of the
statute prior to our issuance of final rules. Thus, in determining
whether a State is subject to a penalty, we will not apply regulatory
interpretations retroactively. You can find a statement of this policy
at Sec. 270.40(b) of the proposed rules.
III. Principles Governing Regulatory Development
A. Regulatory Restraint
Under the new section 417 of the Act, the Federal government may
not regulate State conduct or enforce any TANF provision except to the
extent expressly provided by law. This limitation on Federal authority
is consistent with the philosophy of State flexibility and the general
State and Congressional interest in shifting more responsibility for
program policy and procedures to the States.
We are interpreting this provision to allow us to regulate in two
different kinds of situations: (1) where Congress has explicitly
directed the Secretary to regulate (for example, under the caseload
reduction provisions, described below); and (2) where Congress has
charged HHS with enforcing penalties, even if there is no explicit
mention of regulation. In this latter case, we believe we have an
obligation to States to set out, in regulations, the criteria we will
use in carrying out our express authority to enforce certain TANF
provisions by assessing penalties.
Throughout the proposed rule, we have endeavored to regulate in a
manner that does not impinge on a State's ability to design an
effective and responsive program.
You will also note that this rulemaking does not cover the non-
discrimination provisions at section 408(c). This subsection specifies
that any program or activity receiving TANF funds is subject to the:
(1) Age Discrimination Act of 1975; (2) section 504 of the
Rehabilitation Act of 1973; (3) the Americans with Disabilities Act of
1990; and (4) title VI of the Civil Rights Act of 1964. Since ACF is
not responsible for administering these provisions of law, and they are
not TANF provisions, this rulemaking does not include them.
Individuals with questions about the requirements of the non-
discrimination laws, or concerns about compliance of individual TANF
programs with them, should address their comments or concerns to the
Director, Office of Civil Rights, Department of Health and Human
Services, 200 Independence Ave, SW, Room 522A, Washington, DC 20201.
B. State Flexibility
In the Conference Report to PRWORA, Congress stated that the best
welfare solutions come from those closest to the problems, not from the
Federal government. Thus, the legislation creates a broad block grant
to each State to reform welfare in ways that work best. It gives States
the flexibility to design their own programs, define who will be
eligible, establish what benefits and services will be available, and
develop their own strategies for achieving program goals, including how
to help recipients move into the work force.
Under the law and under these proposed rules, States may implement
innovative and creative strategies for supporting the critical goals of
work and responsibility. For example, they may choose to expend funds
on earned income tax credits or transportation assistance that would
help low-wage workers keep their jobs. They could also extend
employment services to non-custodial parents, by including them within
the definition of ``eligible families.''
To ensure that our rules support the legislative goals of PRWORA,
we are committed to gathering information on how States are responding
to the new opportunities available to them. We reserve the right to
revisit some issues, either through legislative or regulatory
proposals, if we identify situations where State actions are not
furthering the objectives of the Act.
C. Accountability for Meeting Program Requirements and Goals
The new law gives States enormous flexibility to design their TANF
programs in ways that strengthen families and promote work,
responsibility, and self-sufficiency. At the same time, however, it
reflects a bipartisan commitment to ensuring that State programs
support the goals of welfare reform. To this end, the statutory
provisions on data collection, bonuses, and penalties are crucial
because they allow us to track what is happening to needy families and
children under the new law, measure program outcomes, and promote key
program objectives.
Work
We believe the central goal of the new law is to move welfare
recipients into work. The law reflects this important goal in a number
of ways:
Work receives prominent mention in the statutory goals at
section 401 and the plan provisions in section 402;
Section 407 establishes specific work participation rates
each State must achieve;
Section 409 provides significant financial penalties
against any State that fails to achieve the required participation
rates;
Section 411 provides specific authority for the Secretary
to establish data reporting requirements to capture necessary data on
work participation rates; and
Section 413 calls for ranking of States based on the
effectiveness of their work programs.
These proposed rules reflect a similar, special focus on promoting
the work objectives of the Act. We are proposing
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specific rules under sections 407, 409, and 411 designed to ensure that
States meet the statutory requirements. You should look at the proposed
rules in part 271, and the related preamble discussion, for specific
details.
This Administration has already shown its commitment to promoting
the work objectives of this new law in several ways. Before the
legislation was passed, we worked very hard to ensure that Congress
passed strong work provisions and provided adequate child care funding
and other program supports.
Since enactment, the President has announced a number of additional
welfare-to-work initiatives designed to promote work. These include
implementation of a new ``Work Opportunity Tax Credit'' that provides
incentives for employers to hire welfare recipients and proposals to:
Extend and expand this credit;
Increase investments in distressed communities; and
Provide $3 billion in additional funding to help
communities move hard-to-serve recipients into jobs.
As part of budget reconciliation, Congress increased the Work
Opportunity Tax Credit, available to employers who hire long-term
welfare recipients, and funded a new Welfare-to-Work (WTW) program.
States, localities, and Indian Tribes will receive the additional $3
billion in WTW funds in FYs 1998 and 1999.
The President has also challenged America's businesses, its large
non-profit sector and the executive branch of the Federal government to
make job opportunities available to welfare recipients. On March 8,
1997, he directed all Federal agencies to submit plans describing the
efforts they would make to respond to this challenge. In response to
this directive, Federal agencies identified more than 10,000 jobs that
would be available for welfare recipients over the next four years.
(You can find additional information on this initiative on the Web at
http://w2w.fed.gov.)
Meeting the Needs of Low-Income Families and Children
In a number of different ways, the new law works to ensure that the
needs of low-income children and families are met. First, it provides a
guaranteed base level of Federal funding for the TANF programs. Then,
in times of special financial need, it makes additional funding
available through a $2 billion Contingency Fund and through a Federal
loan fund. It also authorizes several studies to monitor changes in the
situations of needy children and families that occur after enactment.
For example, it requires us to report on how certain children are
affected by the provisions of the new law, and to track State child
poverty rates, and initiate corrective actions by States when such
rates rise.
Domestic Violence
We wish to bring one particular provision--known as the Family
Violence Option (FVO)--to your attention. This provision, at section
402(a)(7), gives States the option to waive certain program
requirements for certain victims of domestic violence. It thus provides
a valuable framework for identifying victims of domestic violence and
developing appropriate service strategies for them.
This Administration is strongly committed to reducing domestic
violence, and we encourage all States to consider adopting the Family
Violence Option. In working with domestic violence cases, we also
encourage States to pay special attention to the need for maintaining
the confidentiality of case-record information and the victims' own
assessments of their safety needs and their abilities to meet program
requirements.
During our consultations, we heard numerous questions about the
relationship between State policies on domestic violence and the
determination of State work and time-limit penalties. Congress
considered this issue in its budget resolution, but decided to study
the issue further rather than to amend the statute during budget
reconciliation. Our regulations seek to implement the statute in a way
that is consistent with both the language of the statute and our
national interest in fostering appropriate State responses to domestic
violence.
The FVO provides States with a specific vehicle for addressing
domestic violence among recipients of TANF assistance. The provision
envisions that States would screen and identify victims of violence,
conduct individual assessments, and develop temporary safety and
service plans that would protect victims from any immediate dangers,
stabilize their living situations, and explore avenues for overcoming
dependency.
The family's individual circumstances or service plans may require
that certain program requirements (e.g., regarding time limits and
child support cooperation) be temporarily waived in cases where
compliance with such requirements would make it difficult for
individuals to escape domestic violence, unfairly penalize victims, or
put individuals at further risk of domestic violence. In these cases,
the FVO allows States to grant such waivers.
Under TANF, States must meet numerical standards for work
participation and the percentage of families that may receive
federally-funded assistance for more than five years. The statutory
language on calculating work participation rates makes no reference to
domestic violence cases or to a State's good cause waivers of work
requirements under the Family Violence Option. Thus, we think that the
clearest reading of this statutory provision includes victims of
domestic violence in the calculation of the work participation rates.
The statutory language on time limits refers to victims of domestic
violence, but not to the good cause waivers provided under the Family
Violence Option. The statutory language suggests that victims of
domestic violence would be included in the 20 percent limit on
exceptions to the time limit.
However, there is legitimate concern among States and others that
election of the FVO might put States at special risk of incurring
financial penalties. In granting good cause waivers of program
requirements under the FVO, they may make it more difficult for
themselves to meet the numerical requirements on time limits and the
work participation rates.
Our proposed rules attempt to remain true to the statutory
provisions on work and time limits and to ensure that election of the
FVO is an authentic choice for States. In deciding to address these
waiver cases under ``reasonable cause'' rather than through direct
changes in the penalty calculations, we are reflecting the statutory
language and maintaining the focus on moving families to self-
sufficiency. At the same time, we are giving States some protection
from penalties when their failures to meet the standard rates are
attributable to the granting of good cause domestic violence waivers
that are based on individual assessments, are temporary, and include
individualized service and safety plans. We hope our proposal will
alleviate concern among States that attention to the needs of victims
of domestic violence might place them at special risk of a financial
penalty.
Our proposed rules recognize that, through the FVO, Congress gave
unique status to victims of domestic violence under the TANF program.
Likewise, under our proposed rules, this group of recipients receives
special recognition under the ``reasonable cause'' provisions for the
work and time-limit penalties.
At Sec. 270.30, the proposed rules reflect our expectation that
good cause waivers
[[Page 62129]]
will be bona fide waivers provided within the framework of the FVO.
Under this framework: (1) State policies would provide for
individualized responses and service strategies, consistent with the
needs of individual victims; (2) waivers of program requirements would
be temporary in nature (e.g., would not be granted for longer than six
months); and (3) in lieu of program requirements, victims of domestic
violence would be served in alternative ways, consistent with their
individualized safety and service plans.
In specifying that good cause waivers should not exceed six months
in length, we have attempted to balance two distinct objectives: (1)
giving States the flexibility they need to respond appropriately to the
individual circumstances of domestic violence victims; and (2) assuring
that the work objectives of the Act are not undermined.
We do not intend that all good cause waivers should last six
months. The length of the waiver should reflect the State's
individualized determination of what length of time a client needs. We
expect that the length of the waiver could be substantially shorter in
some cases. Also, we expect that, in some cases, States might have to
renew a waiver or issue a second waiver (i.e., because a victim of
domestic violence suffered from continued abuse that required further
protection and response).
We welcome comments on whether our proposed approach and language
achieve the balance we are seeking.
We want to ensure that our rules work to foster, not undermine, the
objectives of the Act. Our goal is to promote the provision of
appropriate alternative services for victims of domestic violence that
foster both safety and self-sufficiency.
To ensure that these policies have the desired effect, we limit the
availability of ``reasonable cause'' to States that have adopted the
FVO. In addition, in the definitions section of the proposed rule (at
Sec. 270.30), we specify criteria that will apply in deciding whether a
good cause domestic violence waiver exists. Also, we reserve the right
to audit States claiming ``reasonable cause'' to ensure that good cause
domestic violence waivers that States include in their ``reasonable
cause'' documentation meet the specified criteria.
In addition, we intend to monitor the number of good cause waivers
granted by States and their effect on work and time limits. We want to
ensure that States identify victims of domestic violence so that they
may be appropriately served, rather than exempted and denied services
that lead to independence. We also want to ensure that the provision of
good cause waivers does not affect a State's overall effort in moving
families towards self-sufficiency. Thus, we will be looking at
information on program expenditures and participation levels to see if
States granting good cause domestic violence waivers are making
commitments to assist all families in moving toward work.
If we find that good cause waivers are not having the desired
effects, we may propose regulatory or legislative remedies to address
the problems we identify.
For additional discussion of our proposals, see Secs. 270.30,
271.52 and 274.3 of the preamble and proposed rule.
Use of Funds
The new law imposes several restrictions on the use of both Federal
and State funds to help ensure that program expenditures serve program
goals. More specifically, the statute: (1) places a cap on the
percentage of funds spent on administrative costs; (2) authorizes
audits and penalties to protect against the misuse of funds; (3)
establishes a number of limitations on the use of Federal funds; and
(4) defines the conditions under which expenditures of State funds may
count for MOE purposes. In general, States must expend both their
Federal funds and their own State monies on activities that are
consistent with the purposes of the TANF program. (For additional
information on allowable uses of Federal TANF and State MOE funds, see
ACF's guidance, TANF-ACF-PA-97-1, dated January 31, 1997, and the
preamble discussion for part 273.)
Maintenance-of-Effort (MOE)
One of the most important provisions in the new law designed to
protect needy families and children is the TANF maintenance-of-effort
(MOE) requirement. This provision requires States to maintain a certain
level of spending on welfare, based on historic (i.e., fiscal year (FY)
1994) expenditure levels. Because this provision is critical to the
successful implementation of the law, Congress gave us the authority to
enforce State compliance in meeting this requirement, and it receives
significant attention in this proposed rule.
Under the data collection, work, and penalty provisions of the
proposed rule, at parts 271-275, we took care to propose rules that:
(1) ensure that States continue to make the required investments in
meeting the needs of low-income children and families; (2) prevent
States from either supplanting State funds with Federal funds or using
their MOE funds to meet extraneous program or fiscal needs; (3) give us
adequate information to meet our statutory responsibility to determine
what is happening in State programs; and (4) take a broad view of work
effort, caseload reduction, and program performance.
We recognize that States have more flexibility in spending State
MOE funds than Federal funds, especially when they expend their MOE
funds in separate State programs. However, the proposed rules also
recognize and try to protect against actions that might undermine
important goals of welfare reform. This is the same concern that we
voiced in policy guidance we issued on MOE in January (TANF-ACF-PA-97-
1). In particular, we noted that States could design their programs so
as to avoid the work requirements of the new law or to avoid returning
a share of their child support collections to the Federal government.
To mitigate these potential negative consequences, we indicated our
intent to both take administrative actions and seek legislative
remedies. As part of our commitment to taking administrative action, we
are proposing to require States, under certain circumstances, to report
information about the families served by States under separate State
programs. Only through this additional reporting will we be able to
determine the full nature and scope of State efforts to move needy
families into work and the actual caseload reductions States are
achieving. (See the preamble discussion and regulation under part 272,
subpart D, and part 275.)
In TANF-ACF-PA-97-1, we indicated that States not making a good-
faith effort on work in their separate State programs would not be
eligible for a reasonable cause exception from the penalty for failing
to achieve their work rate. The proposed rule incorporates and expands
that proposal.
More specifically, it indicates that States would not be eligible
for a reasonable cause exception from the time-limit penalty or any of
the three work-related penalties if we detect a significant pattern of
diversion of families to separate State programs that has the effect of
undermining the work participation requirements of the Act. In general,
diverting States would not be eligible for reductions in the work
penalty amounts. Finally, they would be ineligible for a penalty
reduction under corrective compliance if they did not correct the
diversion and meet the other
[[Page 62130]]
conditions for reduction specified in these proposed rules.
In the January guidance we expressed similar concerns about the
effect of separate State programs on the Federal share of child support
collections. Therefore, our proposal in this area is similar to our
proposal to prevent undermining of the work participation provisions.
More specifically, we would deny States reasonable cause for the time-
limit, work participation, child support cooperation, and work sanction
penalties if we detect a significant pattern of diversion of families
into separate State programs that results in the diversion of the
Federal share of child support collections to State coffers. States
undertaking such diversions would also be ineligible for reductions in
the amounts of any of these four penalties under corrective compliance
unless they also corrected the diversion during the corrective
compliance process.
In making these proposals, we note that the Secretary has
considerable discretion in determining whether to reduce penalties or
grant a good cause exception.
Getting recipients to work is the most critical component to
achieving the purposes of TANF--making welfare a program of temporary
assistance for families moving to self-sufficiency. The Secretary has
determined that, to prevent circumvention of this purpose, it is
appropriate to limit the availability of the reasonable cause exception
and penalty reduction if a State attempts to avoid the work
participation requirements. Congress has reinforced the importance of
appropriate work for recipients in four of the established penalties in
section 409 of the Act--work participation rates, continuing assistance
when child care is not available, sanctioning families that fail to
participate in work, and continuation of assistance beyond 60 months.
To carry out the intent of Congress that work be a central part of the
TANF program, if we detect that a State is avoiding the work
requirements by diverting a significant number of families to separate
State programs, we will not grant this State a reasonable cause
exception from any of the four penalties most closely tied to the work
requirements, either in the form of a reduction in its work penalty
based on degree of non-compliance or as a reduction in any of the four
penalties as the result of achieving substantial (but not full)
compliance.
The other key component to achieving self-sufficiency is
implementation of the child support enforcement provisions. The Federal
government has a major role to play in such enforcement (particularly
with regard to the operation of the New Hire Directory and the Federal
Parent Locator Service). It also has a continuing interest in the
effectiveness of these programs and, under TANF, maintains its
commitment to the funding of needy families whose children have been
deprived of parental support and care.
We are concerned that a State's diverting cases to separate State
programs would not only have unintended, negative consequences for the
Federal budget and the Federal government's ability to ensure an
effective child support program; it would also diminish the State's
accountability for ensuring that needy families take appropriate steps
towards achieving self-sufficiency. The Secretary has determined that,
in the interest of protecting the key goals of TANF, it is appropriate
to exercise her discretion to set penalty amounts and forgive penalties
in a manner that will ensure that States do not divert cases
inappropriately. Thus, if we detect a significant pattern of diversion
of families to separate State programs that has the effect of diverting
the Federal share of child support collections, we will not grant a
reasonable cause exception or reduced penalty through corrective
compliance for the following four penalties: work participation, time
limits, failure to cooperate with paternity establishment and child
support enforcement requirements, or failure to impose work sanctions.
We plan to monitor States' actions to determine if they constitute
a significant pattern of diversion. For example, if, based on an
examination of statistical or other evidence, we came to the conclusion
that a State was assigning people to a separate State program in order
to divert the Federal share of child support collections, or in order
to evade the work requirements, we would conclude that this is a
significant pattern of diversion and would deny the State certain types
of penalty relief.
A State would be permitted the opportunity to prove that this
pattern was actually the result of State policies and objectives that
were entirely unrelated to the goal of diversion, but we would make the
final judgment as to what constitutes a significant pattern of
diversion.
For the specific regulatory changes associated with these policies,
see Secs. 271.51, 272.5 (c) and (d), and 272.6(i)(2).
We will also propose to require States seeking to receive high
performance bonuses to report on families served by separate State
programs. We will address this issue more fully in the coming NPRM on
high performance bonuses.
In the policy announcement, we advised States to think carefully
about the risks to the long-term viability of their TANF programs if
they rely too extensively on separate State MOE programs. In general,
States cannot receive contingency funds unless their expenditures
within the TANF program are at 100 percent of historic State
expenditures. Thus, excessive State reliance on expenditures outside
the TANF program to meet MOE requirements could make access to
contingency funds difficult during economic downturns.
Child-Only Cases
Since the January guidance came out, we have also become concerned
that States might be able to avoid the work participation rates and
time limits by excluding adults (particularly parents) from their
eligible cases. Given the flexibility available to States under the
statute and regulations, it appears possible that States could protect
themselves from the requirement and the associated penalty risk by
converting regular welfare cases into child-only cases. Such
conversions would seriously undermine these critical provisions of
welfare reform.
To protect against these negative consequences, in the work and
time-limit sections of this proposed rule, we would prohibit States
from converting cases to child-only cases for the purpose of avoiding
penalties and require annual reporting of any such exclusions (with
explanations). We are also proposing to recalculate a State's work
participation rates and time limit exemptions if we determine that a
State has excluded cases from its calculations for the purpose of
avoiding penalties in these areas. See Secs. 271.22, 271.24, and 274.1
for the specific proposals.
IV. Discussion of Individual Regulatory Provisions
Following is a discussion of all the regulatory provisions we have
included in this package. The discussion follows the order of the
regulatory text, addressing each part and section in turn.
A. Part 270--General Temporary Assistance for Needy Families (TANF)
Provisions
This part of the proposed rules helps set the framework for the
rest of the proposed rule. For the convenience of the reader, it
reiterates the goals stated in the new section 401. It also includes
[[Page 62131]]
a set of definitions that are common to the different parts of the
proposed rule.
What does this part cover? (Sec. 270.10)
This section of the proposed rules indicates that part 270 includes
provisions that are applicable across all the TANF regulations in this
rulemaking.
What is the purpose of the TANF program? (Sec. 270.20)
This section of the proposed rules repeats the statutory goals of
the TANF program. In brief, they include reducing dependency and out-
of-wedlock pregnancies; developing employment opportunities and more
effective work programs; and promoting family stability.
While we do not elaborate on the statutory language, we would like
to point out that, in a number of ways, the new law speaks to the need
to protect needy and vulnerable children. States should keep this
implicit goal in mind as they implement their new programs.
What definitions apply under the TANF regulations? (Sec. 270.30)
This section of the proposed rule includes definitions of the terms
used in parts 270 through 275. It does not include definitions that
pertain only to individual provisions. You should look to the
appropriate individual parts of the proposed rules for definitions that
are provision-specific.
In drafting this section of the proposed rule, we defined only a
limited number of terms used in the statute and regulations. We
understood that excessive definition of terms could unduly and
unintentionally limit State flexibility in designing programs that best
serve their needs. For example, we did not define ``family'' or ``head-
of-household.'' States are thus free to define what types of families
would be eligible for TANF assistance. (However, we suggest that you
look at the sections of this rule covering work participation rates
(Secs. 271.22 and 271.24), MOE requirements (subpart A of part 273),
time limits (Sec. 274.1), and data collection definitions (Sec. 275.2);
none of these sections creates a definition of family, but all address
the definition of the term ``family'' in describing key requirements on
States.)
We also decided not to define the individual work activities that
count for the purpose of calculating a State's participation rates. You
should look to the preamble discussion for Sec. 273.13 and subpart C of
part 271, respectively, for additional discussion of these decisions.
You will note that we use the term ``we'' throughout the regulatory
text and preamble. The term ``we'' means the Secretary of the
Department of Health and Human Services or any of the following
individuals or agencies acting on her behalf: the Assistant Secretary
for Children and Families, the Regional Administrators for Children and
Families, the Department of Health and Human Services, and the
Administration for Children and Families.
Likewise, you should note that we use the term ``Act'' to refer to
the Social Security Act, as amended by the new welfare law. We use the
term ``PRWORA'' when we refer to the new law itself. A section
reference is a Social Security Act reference if we use neither term.
Some of the definitions in this section incorporate the statutory
definitions in PRWORA. We included these definitions largely for the
reader's convenience. These statutory definitions include: ``adult,''
``minor child,'' ``eligible State,'' ``Indian, Indian Tribe and Tribal
organization,'' ``State,'' and ``Territories.''
We also propose some clarifying definitions. These include
explanations of commonly used acronyms (such as ACF, AFDC, EA, IEVS,
JOBS, MOE, PRWORA and TANF, as well as the new WTW) and commonly used
terms and phrases (such as the Act and the Secretary). While the
meaning of many of these is generally understood, we included them to
ensure a common understanding.
We are also proposing a number of definitions that have substantial
policy significance, for clarification purposes. For example, the
definitions distinguish among several types of expenditures. These
distinctions are critical because the applicability of the TANF
requirements vary depending on the source of funds for the
expenditures. In particular, it is important to distinguish between
expenditures from the Federal TANF grant and from the State funds
expended to meet MOE requirements (either within the TANF program or in
separate State programs).
Federal expenditures. This is short-hand for the State expenditure
of Federal TANF funds.
Qualified State Expenditures. This term refers to expenditures that
count for TANF MOE purposes (at section 409(a)(7)). By regulation, we
are proposing that most of the requirements that apply for countable
TANF MOE expenditures also apply for Contingency Fund MOE purposes.
TANF MOE. This term refers to the expenditure of State funds that a
State must make in order to meet the MOE requirement at section
409(a)(7).
Contingency Fund MOE. This term refers to expenditures of State
funds that a State must make in order to meet the Contingency Fund MOE
requirements under sections 403(b) and 409(a)(10). States must meet
this MOE level in order to retain contingency funds made available to
them for the fiscal year. Note that this term is more limited in scope
than the term ``TANF MOE.'' See discussion at subpart B of part 274 for
additional details.
State MOE expenditures. This term refers to any expenditure of
State funds that may count for TANF MOE or Contingency Fund purposes.
It includes both State TANF expenditures and expenditures under
separate State programs.
State TANF expenditures. This term encompasses the expenditure of
State funds within the State's TANF program. It identifies the only
expenditures that can be counted toward the Contingency Fund MOE,
except for expenditures made under the Child Care and Development Fund.
It includes both commingled and segregated State TANF expenditures.
Commingled State TANF expenditures. This term identifies the
expenditure of State funds, within the TANF program, that are
commingled with Federal funds. Such expenditures may count toward both
the State's TANF MOE and Contingency Fund MOE. To the extent that
expended State funds are commingled with Federal funds, they are
subject to the Federal rules.
Segregated State TANF expenditures. This term identifies State
funds expended within the TANF program that are not commingled with
Federal funds. Such expenditures count for both TANF MOE and
Contingency Fund MOE purposes. They are not subject to many of the TANF
requirements that apply only to Federal funds (including time limits).
Separate State program. This term identifies programs operated
outside of TANF in which the expenditure of State funds count toward
TANF MOE, but generally does not count for Contingency Fund MOE. With
one exception (for CCDF expenditures), expenditure of State funds must
be made within the TANF program in order to count as MOE for
Contingency Fund purposes.
The definitions also distinguish among different categories and
amounts of TANF grant funds. These distinctions are important because
they affect the size of grant adjustments and total funding available
to the State. In some
[[Page 62132]]
cases, different spending rules apply to different categories of funds.
State Family Assistance Grant (or SFAG). This term refers to the
annual allocation of Federal funds to a State under the formula at
section 403(a)(1).
Adjusted State Family Assistance Grant, or ``Adjusted SFAG.'' This
term refers to the grant awarded to a State through the formula and
annual allocation at section 403(a)(1), minus any reductions due to the
implementation of a Tribal TANF program to serve Indians residing in
the State. You should note the distinction between this term and the
``SFAG,'' because of their significance in determining spending
limitations and the amount of penalties that might be assessed against
a State under parts 271-275.
TANF funds. This term includes not just amounts made available to a
State through the SFAG, but also other amounts available under section
403, including bonuses, supplemental grants, and contingency funds.
Federal funds. This has the same meaning as ``TANF funds.'' In
expending Federal funds, States are subject to more restrictions than
they are in expending State MOE as discussed in this NPRM under subpart
B of part 273.
You should also note the definition of ``assistance'' proposed in
this section.
Assistance. The terms ``assistance'' and ``families receiving
assistance'' are used in the PRWORA in many critical places, including:
(1) in most of the prohibitions and requirements at section 408, which
limit the provision of assistance; (2) in the numerator and denominator
of the work participation rates in section 407(b); and (3) the data
collection requirements of section 411(a). Largely through reference,
the term also affects the scope of the penalty provisions in section
409. Thus, it is important that States have a definition of
``assistance.'' At the same time, because TANF replaces AFDC, EA and
JOBS, and provides much greater flexibility than these programs, what
constitutes assistance is less clear than it was in the past.
Because PRWORA is a block grant, and it incorporates three
different programs, a State may provide some forms of support under
TANF that would not commonly be considered public assistance. Some of
this support might resemble the types of short-term, crisis-oriented
support that was previously provided under the EA program. Other forms
might be more directly related to the work objectives of the Act and
not have a direct monetary value to the family. We are proposing to
exclude some of these forms of support from the definition of
assistance.
The general legislative history for this title indicates that
Congress meant that this term encompass more than cash assistance;
beyond that, it is not very informative (H.R. Rep. No. 725, 104 Cong.,
2d Sess (1996)). Our consultations did not produce clear guidance in
this area either. However, they did identify some areas where
clarification would be helpful. Therefore, this proposed rule contains
essentially the same definition as we suggested in our January policy
announcement (TANF-ACF-PA-97-1), with some additional clarifications.
In our January proposal, we took the view that the definition of
assistance should encompass most forms of support. However, we
recognized two basic forms of support that would not be considered
welfare and proposed to exclude them from the definition. In brief, the
two exclusions were: (1) services that had no direct monetary value and
did not involve direct or indirect income support; and (2) one-time,
short-term assistance.
In the proposed rule, we are clarifying that child care, work
subsidies, and allowances that cover living expenses for individuals in
education or training are included within the definition of assistance.
For this purpose, child care includes payments or vouchers for direct
child care services, as well as the value of direct child care services
provided under contract or a similar arrangement. It does not include
child care services such as information and referral or counseling, or
child care provided on a short-term, ad hoc basis. Work subsidies
includes payments to employers to help cover the costs of employment or
on-the-job training.
We are also proposing to define one-time, short-term assistance as
assistance that is paid no more than once in any twelve-month period,
is paid within a 30-day period, and covers needs that do not extend
beyond a 90-day period. In response to the policy announcement, we
received a number of questions about what the term ``one-time, short-
term'' meant. Based on our experience with the EA program, we realized
that a wide range of interpretations was possible, and we were
concerned that States might try to define as ``short-term'' or ``one-
time'' many situations where assistance was of a significant and
ongoing nature. We hope our proposal will give States the flexibility
to meet short-term and emergency needs (such as an automobile repair),
without invoking too many administrative requirements and undermining
the objectives of the Act. We welcome comments on whether the proposed
policy achieves this end.
Under the policy announcement and proposed rule, we define the
minimum types of services and benefits that must be included. Based on
comments we received, we considered allowing States to include
additional kinds of benefits and services, at their option. However, we
were concerned that varying State definitions would create additional
comparability problems with respect to data collection and penalty
determinations. Also, we were concerned that an expanded definition
might have undesirable program effects. For example, it could extend
child support assignment to cases where it would not be appropriate.
If States expanded their definitions of assistance, they would have
to apply that same definition under all provisions of the regulations.
Thus, if something fell within the definition of assistance, the family
receiving that type of benefit would be subject to data collection and
reporting, child support assignment and cooperation requirements, work
requirements, and Federal time limits. In response to the policy
announcement, we have also received a number of questions about the
treatment of TANF assistance under the child support enforcement
program. The Office of Child Support Enforcement will be issuing
guidance on the distribution of child collections under PRWORA; this
guidance will explain the treatment of TANF assistance under the new
distribution rules.
For those concerned about the inclusion of child care in the
definition of assistance, we would point out the child care
expenditures made under the CCDBG program are not subject to TANF
requirements, and States have the authority to transfer up to 30
percent of their TANF grant to the CCDBG program.
We are proposing to collect data on how much of the program
expenditures are being spent on different kinds of ``assistance'' and
``non-assistance.'' See the discussion of the TANF Financial Report at
part 275 for additional details.
If the data show that large portions of the program resources are
being spent on ``non-assistance,'' we would have concerns that the
flexibility in our definition of ``assistance'' is undermining the
goals of the legislation. We would then look more closely at the ``non-
assistance'' being provided and try to assess whether work
requirements, time limits, case-record data and child support
assignment would be appropriate for those cases. If necessary, we would
consider a change to the
[[Page 62133]]
definition of ``assistance'' or other remedies.
You should also note the definitions of ``waiver'' and
``inconsistency'' in this part.
Waiver and Inconsistency. Under the new section 415, States that
received approval for welfare reform waivers under section 1115 before
July 1, 1997, have the option to operate their cash assistance programs
under some or all of these waivers. For States electing this option,
provisions of the new law that are inconsistent with the waivers do not
take effect until the expiration of the applicable waivers. States have
raised numerous questions about how we will interpret this provision,
particularly with regard to what is a waiver and an inconsistency.
Since a waiver extension might affect the application of certain of
the penalty provisions within a State, we are defining both terms. Part
of our responsibility in administering the penalty provisions is to
provide notice concerning the rules we will utilize in applying the
penalties.
The issue in defining waiver concerns the scope of the provision,
specifically how much of the current or underlying law (i.e., the
provisions of title IV-A as in effect on August 21, 1996) are properly
considered to be part of the waiver. Three possible interpretations
were suggested. The first is a very limited definition in which a
waiver is only the specific change to the AFDC statute as articulated
in the waiver list that was included in the terms and conditions for
each demonstration project. The second possible interpretation is that
a waiver includes all the underlying law; that, in effect, the AFDC
statute, as modified by the waiver terms and conditions, would continue
to apply in a State continuing a demonstration project. The third
interpretation is that the waiver includes only some parts of the
unwaived underlying law.
We believe the third option is the best. It seems most consistent
with the Congressional intent to allow States to finish testing the
welfare reform policies they had initiated through waivers by allowing
sufficient flexibility to continue relevant aspects of those policies.
It recognizes that, although some requirements may not have
specifically been part of the waiver (as there was no need for a waiver
under AFDC), the requirements are an integral part of the demonstration
embodied in the waiver.
The first interpretation option is too narrow to allow continuation
of many demonstration objectives; thus, it seems inconsistent with the
Congressional intent. Similarly, to allow a State to continue the AFDC
program in its entirety, even when a particular AFDC provision was not
necessary to the demonstration, would seem to frustrate the intent of
Congress in enacting TANF. Rather, we believe section 415 was intended
to allow States to continue their reform policies, but not the AFDC
program in its entirety.
The definition of ``waiver'' we are proposing allows a State the
flexibility to include applicable provisions of prior law, but only if
their inclusion were necessary to achieve the objective of the approved
waiver.
At Sec. 271.60, we provide an example of the application of the
definitions of waiver and inconsistent to the work requirements and
explain their implications. We also discuss the application of the
definitions to control and experimental groups.
After extensive deliberations, we have also defined what makes the
new law ``inconsistent'' with a waiver. We propose that a provision of
TANF is inconsistent with a waiver only if the State must change its
waiver policy in order to comply with the TANF requirement. A TANF
provision is not inconsistent if it is possible for the TANF
requirement and the waiver policy to operate concurrently.
For example, if the State has a time limit that runs for two years
and then has extensions if the recipient is ``playing by the rules,''
that time limit can run in tandem with the Federal time limit until the
five-year limit on Federal assistance is reached. At that point, the
TANF restriction would be inconsistent with providing further
assistance under the demonstration's extension. However, since there is
an inconsistency at that point, section 415 would allow a State to
continue such assistance until the demonstration ended.
We considered two alternative definitions of inconsistency. The
first was that just having a waiver that differs in any respect from
the TANF requirement creates an immediate inconsistency. For example,
under this definition, the State time limit and the Federal time limit
would run sequentially. However, this definition seems to create an
artificial inconsistency where one does not exist in fact; thus, it
seems contrary to the statute.
The second alternative was to find that a waiver was not
inconsistent with the TANF provisions of the law if TANF restrictions
related only to the expenditure of Federal funds and did not prohibit
States from continuing their waiver policies with their own funds.
However, application of this theory could lead to a finding of no
inconsistency for all waiver provisions, including those in the major
areas of work and time limits. It would thus render section 415
meaningless.
At Sec. 274.1, we provide additional discussion regarding the
implications of our definition of inconsistency.
You should also note the definitions of ``Family Violence Option,''
``good cause domestic violence waiver,'' and ``victim of domestic
violence.''
Family Violence Option, Good Cause Domestic Violence Waivers, and
Victims of Domestic Violence. These definitions are relevant to State
claims of ``reasonable cause'' for failing to meet the work
participation rate and time-limit requirements of the Act. Under parts
271 and 274, a State's decision to implement the Family Violence Option
and its provision of good cause waivers to victims of domestic violence
under that provision create a special-case situation that may affect a
State's eligibility for a reasonable cause exception from these two
penalties.
Finally, we would like you to note that Sec. 273.0(b) contains a
definition of ``administrative costs.'' This definition is important
because States are subject to 15 percent caps on the amount of Federal
TANF and State MOE funds they may spend on administrative activities.
When are these provisions in effect? (Sec. 270.40)
This section of the proposed rules provides only the general time
frames for the effective dates of the TANF provisions. Many of the
penalty and funding provisions have delayed effective dates. For
example, most penalties would not be assessed against States in the
first year of the program, and reductions in grants due to penalties
would not occur before FY 1998 because reductions take place in the
year following the failure. You should look to the discussion on the
individual regulatory sections for specific information on effective
dates.
This section also makes the important point that we will not
retroactively apply rules against States. With respect to any actions
or behavior that occurs before we issue final rules, we will judge
State actions and behavior only against a reasonable interpretation of
the statute.
B. Part 271--Ensuring That Recipients Work
What does this part cover? (Sec. 271.1)
This section identifies the scope of part 271: the mandatory work
requirements of TANF.
[[Page 62134]]
What definitions apply to this part? (Sec. 271.2)
This section cross-references the general definitions for the TANF
regulations established under part 270.
Supart A--Individual Responsibility
During our extensive consultations, a number of groups and
individuals asked how the requirements on individuals relate to the
State participation requirements and penalties. To help clarify what
the law expects of individuals as opposed to the requirements it places
on States, we have decided to outline a recipient's statutory
responsibilities as part of the proposed rules. In so doing, we only
paraphrase the statute, without interpreting these provisions.
Inclusion of these provisions in the regulation does not indicate our
intent to enforce these statutory provisions, but our expectation is
that States will meet these requirements. We have included the
requirements in the regulation for informational and contextual
reasons.
What work requirements must an individual meet? (Sec. 271.10)
PRWORA promotes self-sufficiency and independence by expanding work
opportunities for welfare recipients while holding individuals to a
higher standard of personal responsibility for the support of their
children. The legislation expands the concept of mutual responsibility,
introduced under the Family Support Act of 1988. It espouses the view
that income assistance to families with able-bodied adults should be
transitional and conditioned upon their efforts to become self-
sufficient. As States and communities assume new responsibilities for
helping adults get work and earn paychecks quickly, parents face new,
tougher work requirements.
Readers should understand that the law imposes a requirement on
each parent or caretaker to work (see section 402(a)(1)(A)(ii)). That
requirement applies when the State determines the individual is ready
to work, or after (s)he has received assistance for 24 months,
whichever happens first. For this requirement, the State defines what
work activities meet the requirement.
In addition, there is a requirement that each parent or caretaker
participate in community service employment if s(he) has received
assistance for two months and is not either engaged in work in
accordance with section 407(c) or exempt from work requirements. The
State must establish minimum hours of work and the tasks involved. A
State may opt out of this provision if it chooses. A State may impose
other work requirements on individuals, but there is no further Federal
requirement to work.
These individual requirements are different from the work
requirements described at section 407. Section 407 applies a
requirement on each State to engage a certain percentage of its total
caseload and a certain percentage of its two-parent caseload in
specified work activities. For the State requirement, the law lists
what activities meet the requirement. A State could chose to use this
statutory list for the first requirement on individuals, but is not
required to do so. Subpart B below explains more fully what the
required work participation rates are for States and how they are
calculated. Subpart C explains the work activities and when an
individual is considered ``engaged in work'' for those rates.
Which recipients must have an assessment under TANF? (Sec. 271.11)
Each State must make an initial assessment of the skills, prior
work experience and employability of each recipient who is at least 18
years old, or has not completed high school (or equivalent) and is not
attending secondary school.
With respect to the timing of assessments, within 90 days of the
effective date of the State's TANF program (or up to 180 days, at State
option), the State may assess an individual who is already receiving
benefits as of that date. For any other recipient, the State may make
the assessment within 30 days of the date on which the individual is
determined to be eligible for assistance, but may increase this period
to as much as 90 days. For example, if a State begins operating its
TANF program on July 1, 1997, it may assess all individuals in its
existing caseload by September 30, 1997 (or, at State option, December
31, 1997). For any individual applying after July 1, 1997, the State
may do an assessment within 30 days (or 90 days, at State option).
What is an individual responsibility plan? (Sec. 271.12)
A State may require individuals to adhere to the requirements of an
individual responsibility plan. Developed in consultation with the
individual on the basis of the initial assessment described above, the
plan should set forth the obligations of both the individual and the
State. It should include an employment goal for the individual and a
plan to move him/her into private-sector employment as quickly as
possible. The proposed regulation includes more detailed suggestions
for the content of an individual responsibility plan.
May an individual be penalized for not following an individual
responsibility plan? (Sec. 271.13)
If the individual does not have good cause, (s)he may be penalized
for not following the individual responsibility plan that (s)he signed.
The State has the flexibility to establish good cause criteria, as well
as to determine what is an appropriate penalty to impose on the family.
This penalty is in addition to any other penalties the individual may
have incurred.
What is the penalty if an individual refuses to engage in work?
(Sec. 271.14)
If an individual refuses to engage in work in accordance with
section 407, the State must reduce the amount of assistance otherwise
payable to the family pro rata (or more, at State option) for the
period during the month in which the individual refused, subject to
good cause and other exceptions determined by the State. The State also
has the option to terminate the case.
Each State may establish its own criteria for determining when not
to impose a penalty on an individual. States may also establish other
rules governing penalties as needed.
Under the Family Violence Option, a State may waive work
requirements in cases where compliance would make it difficult for an
individual to escape domestic violence or would unfairly penalize
individuals who are or have been victimized by such violence or
individuals who are at risk of further domestic violence. The State
must determine that the individual receiving the program waiver has
good cause for failing to comply with the standard work requirements.
Can a family be penalized if a parent refuses to work because (s)he
cannot find child care? (Sec. 271.15)
A State may not reduce or terminate assistance to a single
custodial parent caring for a child under age six for refusing to
engage in required work, if the parent demonstrates an inability (as
determined by the State) to obtain needed child care. This exception
applies to penalties the State imposes for refusal to engage in work in
accordance with either section 407 or section 402(a)(1)(A)(ii) of the
Act. The parent's demonstrated inability must be for one of the
following reasons:
Appropriate child care within a reasonable distance from
the
[[Page 62135]]
individual's home or work site is unavailable;
Informal child care by a relative or under other
arrangements is unavailable or unsuitable; or
Appropriate and affordable formal child care arrangements
are unavailable.
This penalty exception underscores the pivotal role of child care
in supporting work and also recognizes that the lack of appropriate,
affordable child care can create unacceptable hardships on children and
families. To keep families moving toward self-sufficiency, and to
assess the State's compliance with this penalty exception, we have
described in the preamble to Sec. 274.20 our expectation that States
will have a process or procedure that: (1) Enables a family to
demonstrate its inability to obtain needed child care; (2) informs
parents that the family's benefits cannot be reduced or terminated when
they demonstrate that they are unable to work due to the lack of child
care for a child under the age of six; and (3) advises parents that the
time during which they are excepted from the penalty will still count
toward the time limit on benefits at section 408(a)(7).
Because the State has the authority to determine whether the
individual has demonstrated adequately an inability to obtain needed
child care, as the regulations indicate, we expect the State to define
the terms ``appropriate child care,'' ``reasonable distance,''
``unsuitability of informal care,'' and ``affordable child care
arrangements.'' The State should also provide families with the
criteria, including the definitions, that it will use to implement the
exception and the means by which a parent can demonstrate an inability
to obtain needed child care.
The proposed regulations for the Child Care and Development Fund
(CCDF) reinforce the importance of providing this vital information to
parents by requiring the child care Lead Agency, as part of its
consumer education efforts, to inform parents about: (1) The penalty
exception to the TANF work requirement; (2) the State's process or
procedure for determining a family's inability to obtain needed child
care; and (3) the fact that the exception does not extend the time
limit for receiving assistance. The information must also include the
definitions or criteria that the State employs to implement the State's
determination process.
Under the proposed CCDF rule, we would require the Lead Agency for
child care to coordinate with the TANF agency in order to understand
how the TANF agency defines and applies the terms of the statute
regarding the penalty exception and to include the definitions (listed
above) and criteria in the CCDF plan.
Thus, the proposed CCDF rule requires that the Lead Agency would
submit the definitions and criteria used by the State in determining
whether child care is available. We took this child care proposal into
consideration in drafting our proposed rule. Under Sec. 271.15, we
would require that the definitions and criteria be submitted, but would
not require that the TANF agency submit them directly. Our goal is to
ensure that these items are made available for audit and penalty
purposes and that they be part of the public record.
If, based on the child care final rule, we would not expect to
receive the criteria and definitions from the Lead Agency, we would add
a data element to one of the proposed TANF reporting forms (such as the
annual addendum) to incorporate them.
Does the imposition of a penalty affect an individual's work
requirement? (Sec. 271.16)
Section 408(c) of the Act, as amended by section 5001(h) of Pub. L.
105-33, clarifies that sanctions against recipients under TANF ``shall
not be construed to be a reduction in any wage paid to the
individual.'' This means that imposition of such penalties would not
result in a reduction in the number of hours of work required.
Subpart B--State Accountability
How will we hold a State accountable for achieving the work objectives
of TANF? (Sec. 271.20)
Work is the cornerstone of welfare reform. Research has
demonstrated that early connection to the labor force helps welfare
recipients make important steps toward self-sufficiency. The rigorous
work participation requirements embodied in the legislation provide
strong incentives to States to concentrate their resources in this
crucial area. This summary section makes the legislation's focus on
work and the requirements for work clear, while other sections address
each of these areas in more detail.
This section of the proposed regulations describes what a State
must do to meet the overall and two-parent work participation rates. It
explains that a State must submit data to allow us to measure each
State's success with the work participation rates. It notes that a
State meeting the minimum rates will have a reduced MOE requirement but
that a State failing to meet them risks a financial penalty.
What overall work rate must a State meet? (Sec. 271.21)
Section 407(a) establishes two minimum participation rates that a
State must meet for FYs 1997 through 2002 and thereafter. The first,
the overall work rate, is the percentage of all families receiving
assistance who must participate in work activities by fiscal year. This
section lists the statutory overall participation rate by fiscal year.
The second is the work rate for two-parent families, addressed below at
Secs. 271.23 and 271.24.
How will we determine a State's overall work rate? (Sec. 271.22)
This section of the proposed regulation restates in clear terms the
participation rate calculation specified in the statute. In particular,
without changing its meaning, we have phrased the denominator in a way
that we think is easier to understand than the statutory language.
We received many requests for guidance concerning how, for purposes
of the participation rates, a State should treat a family that it
exempts from work requirements. A State has the flexibility to
establish any exemptions it chooses; however, with two exceptions
(discussed below), the legislation offers no room to remove categories
of recipients from the denominator. PRWORA embodies the views that: (1)
Work is the best way to achieve independence; and (2) each individual
should participate to his or her greatest ability. As waiver projects
have demonstrated, innovative State programs can often find meaningful
ways for nearly every recipient to participate in work-related
activities. Therefore, the statute and the proposed regulation require
nearly all families to be included in the calculation of the
participation rates.
The proposed regulation makes clear that a State may count as a
month of participation any partial months of assistance, if an adult in
the family is engaged in work for the minimum average number of hours
in each full week that the family receives assistance in that month.
These families are already included in the denominator since they are
recipients of assistance in that month.
This provision ensures that a State receives credit for its efforts
in the first and last months that a family receives assistance. Without
it, a State would have an inadvertent incentive to start and end
assistance as close as possible to the beginning of the month, rather
than as families need it. We think that measuring work in full weeks of
[[Page 62136]]
assistance during a partial month is consistent with the spirit of
PRWORA. We have proposed the same policy for partial months of
assistance under the two-parent rate at Sec. 271.24.
During the development of the proposed regulation and in
consultation with stakeholders, one important topic of discussion was
how to treat victims of domestic violence whom the State is helping
under the Family Violence Option (FVO), under section 402(a)(7). We
recognize that there are circumstances in which a State should and will
temporarily waive work requirements for some domestic violence victims.
One question we considered was how such waivers would affect the
calculation of the participation rates.
Many commenters urged us to remove all victims of domestic violence
from the denominator of a State's participation rate so that the State
would not be penalized for choosing to develop appropriate responses to
their problems. Instead of changing the basic calculation of the work
participation rates, we chose to address this situation under the
definition of ``reasonable cause'' for States failing to meet their
rates. Our approach is targeted, so as not to provide blanket
exemptions for those who have ever suffered domestic violence, but
instead to provide appropriate protections and supports for TANF
recipients who need them.
We believe that keeping recipients who are being assisted under the
FVO in the calculation is the better reading of the statute. In the
calculation of work participation rates, the statute provides only two
exemptions from the denominator: one for a single custodial parent of a
child under 12 months old; the other for a recipient who is being
sanctioned but has not been so for more than three of the last 12
months. The law is very specific concerning these exemptions and does
not provide for others.
We believe victims of domestic violence and the objectives of the
Act will be best served if we maintain the integrity of the work
requirements and promote appropriate services to the victims of
domestic violence. Service providers who work closely with victims of
domestic violence attest that work is often a key part of the solution
to domestic violence problems; it may provide both emotional support
and a path to financial independence. Thus, we do not want to create an
incentive for States to waive work requirements routinely for a
recipient who does not need such a waiver.
However, we also hear that, in some cases, going to work may
aggravate tensions with a batterer and place the victim at risk of
further danger. Under our proposed rules, States should feel free to
provide temporary waivers of work requirements in such cases.
Given the pressure States are under to meet the work participation
rates, and the individualized circumstances that domestic violence
victims face, we have concerns that automatically removing victims of
domestic violence from the calculations could result in inappropriate
exemptions or deferrals of work requirements for victims of domestic
violence. We also have concerns that it could result in diversion of
resources away from these families to other categories of recipients.
We believe our ``reasonable cause'' proposal and our strategy for
monitoring the effect of these provisions will protect against these
possible negative effects.
You will also note that this section of the regulation addresses
our concern that States could use the flexibility inherent in the
statute and these regulations to avoid the work participation rates for
certain families in the TANF program. Because the participation rates
include only those families receiving assistance that include an adult,
the possibility exists that States could try to keep cases out of the
calculation by converting them to child-only cases. Under our proposal,
States would continue to have discretion in defining ``families
receiving assistance'' and deciding the circumstances under which
adults and children receive assistance in the State. However, we would
reserve the right to add cases back into the calculation if we
determine that a State was defining families solely for the purpose of
avoiding a work penalty. Also, we are proposing to require that States
submit annual reports to us specifying how many families were excluded
from the overall work participation rate, together with the basis for
any exclusions.
Please see Sec. 271.52 of the proposed regulations for further
discussion of the reasonable cause criteria.
What two-parent work rate must a State meet? (Sec. 271.23)
As with Sec. 271.21, this section restates the minimum work
participation rates for two-parent families established in the statute.
States should note the sharp increases in the two-parent
participation rate. Congress has high expectations that States will
help the vast majority of adults in two-parent families find jobs or
participate in other work activities. We note that most States had
difficulty meeting the less ambitious JOBS participation rates for
unemployed parent families (UPs), the primary two-parent cases under
AFDC. For several reasons, the new rates under TANF are much more
demanding than they were under JOBS. First, the TANF rate is a ``two-
parent'' rate, not a rate just for UPs. Secondly, the denominator
includes much more of the caseload; it recognizes many fewer
exemptions. Finally, PRWORA lifted the restrictions on providing
assistance to two-parent families. Thus, in some States, many more two-
parent families could be eligible for assistance and subject to the
work requirements than under prior law.
We strongly encourage each State to consider carefully what it must
do to get two-parent families working. In some cases, States may need
to make substantial changes to their program designs over time. In the
first few years of operating TANF, the participation rates are at their
lowest and pro rata reductions may significantly reduce the minimum
required rates. We think it is important for States to capitalize on
this initial period to invest in program designs that will allow them
to achieve the higher participation rates in effect in later years. We
intend to assist States in this endeavor through technical assistance
and by sharing promising models as they emerge.
Finally, we would like to make it clear that providing a non-
custodial parent with TANF services need not cause a State to consider
the family a two-parent family for the purposes of the participation
rate. States could define two-parent families as those with two parents
living in the same household.
How will we determine a State's two-parent work rate? (Sec. 271.24)
The proposed regulations express the two-parent work participation
rate in terms very similar to those we used for the overall rate.
States should note that any family that includes a disabled parent is
not considered a two-parent family for purposes of the participation
rate and, thus, is not included in the numerator or denominator of the
two-parent rate. They should also note the prohibition against defining
families receiving assistance for the purpose of excluding cases from
two-parent participation rate. (See Sec. 271.22 for additional
discussion.)
It is important to note that, in accordance with the statute, we
calculate both participation rates in terms of families, not
individuals. Whether we include the family in the numerator depends on
the actions of individuals, but an entire family either
[[Page 62137]]
counts toward the rate or does not. In the case of a two-parent family,
whether a family counts may depend on the actions of both parents.
Section 408(a)(7) limits the receipt of Federal TANF assistance to
60 months for any family, unless the family qualifies for a hardship
exception or disregard of a month of assistance. (In our discussion of
Sec. 274.1, we explain that months of receipt are disregarded when the
assistance was received either: (1) by a minor child who was not the
head of a household or married to the head of a household; or (2) while
an adult lived in Indian country or in an Alaska Native Village with 50
percent or greater unemployment.) We have received inquiries concerning
the effect of a time-limit exception or disregard on the participation
rates. In fact, the time limit does not have a bearing on the
calculation of the participation rate. All families must be included in
the participation rate, unless they have been removed from the rate for
one of the two work-related exemptions (i.e., the family is subject to
a penalty but has not been sanctioned for more than three of the last
12 months, or the parent is a single custodial parent of a child under
one year of age and the State has opted to remove the family from the
rate).
Does a State include Tribal families in calculating these rates?
(Sec. 271.25)
States have the option of including in the participation rates
families in the State that are receiving assistance under an approved
Tribal family assistance plan or under a tribal work program. If the
State opts to include such families, they must be included in the
denominator, as well as the numerator where appropriate. We are
particularly interested in receiving comments relating to the
implementation of this option, such as Tribal reporting of
participation information to the State.
Subpart C--Work Activities and How To Count Them
What are ``work activities?'' (Sec. 271.30)
Section 407(d) specifies the twelve work, training, and education
activities in which individuals may participate in order to be
``engaged in work'' for the purpose of counting toward the work
participation rate requirements. Congress did not define these
activities further. Some have commonly understood meanings from their
use over time or from operational definitions adopted by prior
employment and training programs. But several of the permissible
activities, such as ``vocational educational training'' and ``job
readiness assistance,'' do not have commonly understood meanings and
are subject to interpretation. Because these terms lack a common
definition or understanding, we began receiving questions soon after
the enactment of PRWORA about whether we would define them in the
rules.
To address this problem, we first examined legislative intent. In
enacting TANF, Congress wanted to give States significant flexibility
in administering TANF and limit Federal authority to regulate. At the
same time, Congress wanted to create a work-focused program of time-
limited assistance. In addition, it established significant data
reporting requirements for States, including information about the
activities in which individuals participate. As discussed below, these
three purposes do not clearly point in the direction of more or less
definition. Thus, the statute itself did not clearly resolve the
matter.
Secondly, we engaged in wide and extensive consultation with a
variety of groups to determine what others thought about the definition
issue. Most groups, particularly States and their organizational
representatives, overwhelmingly urged us not to define the work
activities further and recommended that definitions be left to States.
They suggested that we could use this preamble to underscore the
flexibility and latitude intended by the statute, especially in
vocational education. A few individuals asked whether a State would be
subject to a penalty if it did not define activities in a way we
thought appropriate. They suggested providing illustrative examples or
including guidance in the preamble on activities that could not count
as work. Several participants thought that we should offer general
guidance on the definition of activities to ensure uniform data
reporting across States.
Representatives of the education community and some from the labor
community expressed concerns about how work-focused activities will
affect programs that have been operating under the Job Opportunities
and Basic Skills Training (JOBS) program. They emphasized the positive
correlation between educational attainment and job acquisition and
advancement, as well as the importance of parental education levels and
involvement in the education of their children. They also expressed
concern that, without additional education and training, many families
will find it difficult to hold meaningful employment, much less to
advance. They wanted us to take this opportunity to define work
activities in ways that fostered education while promoting work.
In this regulation, we are proposing not to define the individual
work activities. In making our decision, we considered the following.
Congress did not define the terms and clearly gave States overall
flexibility to design their programs. Certainly, one element of that
flexibility could be to allow each State to define the work activities
in order to address its unique needs and circumstances.
We recognize that definitions of terms could help clarify the
parameters of a work-focused program design. For example, without
Federal definitions, States could conceivably include a range of
activities that may not enhance work skills or might not be considered
``work experience'' by potential employers. However, in light of the
five-year time limit, we expect that States will be very careful to
establish programs that do not work to prolong a family's use of
assistance.
After considering the extensive input we received, we think that
the goals and objectives of the legislation will be better served by
having each State define the work activities. We believe States will
use the flexibility of the statute to formulate a variety of reasonable
interpretations leading to greater innovation, experimentation, and
success in helping families become self-sufficient quickly.
Because the flexibility could also be used in ways that do not
further Congressional intent, we are requiring each State to provide us
with its definitions of work activities for both TANF and separate
State programs under the data collection requirements at Secs. 275.9
and 273.7. We are concerned that different TANF definitions could
affect the vulnerability of States to penalties for failure to meet the
participation rate. This data collection will help us determine whether
this is in fact a serious problem; to the extent possible, we want to
ensure an equitable and level playing field for the States. Over the
next several years, we will carefully assess the types of programs and
activities States develop and will actively publicize and share the
results of our findings. If necessary at some time in the future, we
will initiate further regulatory action.
Before leaving the subject of work activities and program design,
we would like to remind States about some key research findings from
prior welfare-to-work programs. According to the Manpower Demonstration
Research Corporation's publication, Work First:
The most successful work first programs have shared some
characteristics: a mixed
[[Page 62138]]
strategy including job search, education and training, and other
activities and services; an emphasis on employment in all
activities; a strong, consistent message; a commitment of adequate
resources to serve the full mandatory population; enforcement of
participation requirements; and a cost-conscious management style.
While the most successful programs consistently and strongly
emphasize work, the actual program designs recognize and address the
critical role education plays in preparing adults for work. As more and
more recipients engage in work, State caseloads may reflect higher
proportions of the educationally disadvantaged. In combination with
other work activities, education may become more important in improving
basic communication, analytical and work-readiness skills of
recipients. Thus, States may need to integrate adult basic skills,
secondary education, and language training within high-quality
vocational education programs. Such program designs encourage
recipients to continue acquiring necessary educational skills and
foster programs that prepare recipients for higher-skill, higher-wage
jobs.
In his most recent ``State of the Union'' address, President
Clinton identified education as his number one priority. He Issued a
call to action for American education based on principles necessary to
prepare people for the 21st century. One principle was to make sure
that learning is available for a lifetime.
We encourage States to adopt program designs that take advantage of
existing educational opportunities. States may use the statutory
flexibility to design programs that promote educational principles by:
Actively encouraging adults and children to finish high
school or its equivalent;
Expecting family members to attain basic levels of
literacy and to supplement their education in order to enhance
employment opportunities;
Encouraging family literacy; and
Promoting community-based work-related vocational
education classes, created in collaboration with employers.
States could also make it easier for individuals to combine school
and work. For example, they could develop on-campus community work
experience program positions, where child care is also available. They
could also encourage schools to use work-study funds for students on
welfare and then count the hours worked in those programs toward work
requirements.
While we have not regulated the definition of work activities, we
want to ensure that recipients and children both experience positive
outcomes. This is a particularly significant issue when child care is
the work activity. For this to happen, child care arrangements should
be well developed, implemented and supported.
Research has found that quality child care is critical to the
healthy development of children and that providers who choose to care
for children create more nurturing environments than those who feel
they have no choice and are providing care only out of necessity. Thus,
States should assess whether recipients have an interest in providing
child care before assigning them to this activity.
In addition, States should provide training, supervision and other
supports to enhance caregiving skills if they wish recipients to attain
self-sufficiency. Such supports would assist the development of both
the caregivers and the children in care.
A State that assesses the individual's commitment to child care and
provides opportunities for training in health and safety (e.g., first
aid and CPR), nutrition, and child development, should see successful
outcomes for both the adults and children in care.
Finally, the stability of child care arrangements affects outcomes
for both parents and the children in care. When parents feel
comfortable with their child care arrangements, their own participation
in the work force becomes more stable. Stability fosters emotional
security for children. Thus, stability should be one of the factors
States take into account when assigning participants to child care as a
work activity.
How many hours must an individual participate to count in the numerator
of the overall rate? (Sec. 271.31)
Section 407(c) specifies the minimum hours an individual must
participate to count in the State's participation rate calculation.
There are two related requirements. First, there is a minimum average
number of hours per week for which a recipient must be engaged in work
activities. The average weekly hours are reflected in the following
table:
------------------------------------------------------------------------
All families
-------------------------
and the
If the fiscal year is: Then the average
participation weekly
rate is: hours of
(percent) work are:
------------------------------------------------------------------------
1997.......................................... 25 20
1998.......................................... 30 20
1999.......................................... 35 25
2000.......................................... 40 30
2001.......................................... 45 30
2002.......................................... 50 30
------------------------------------------------------------------------
Second, the law requires that at least an average of 20 hours per
week of the minimum average must be attributable to certain specific
activities. These activities are:
Unsubsidized employment;
Subsidized private sector employment;
Subsidized public sector employment;
Work experience;
On-the-job training;
Job search and job readiness assistance for no more than
four consecutive weeks and up to six weeks total in a year;
Community service programs;
Vocational educational training not to exceed 12 months;
Provision of child care services to an individual who is
participating in a community service program.
Note: The limitation that at least 20 hours come from certain
activities does not apply to teen heads of households; however,
there are other limitations related to teen heads of households.
Please refer to Sec. 271.33 below.
After an individual meets the basic level of participation, the
following activities may count toward the total work requirement hours
of work:
Job skills training directly related to employment;
Education directly related to employment for those without
a high school diploma or equivalent;
Satisfactory attendance at a secondary school or GED
course for those without a high school diploma or equivalent.
In our consultations, several people asked whether a State may
average the hours of participation of different recipients to reach the
minimum average hours required by the work participation rate, as they
could in the JOBS program. PRWORA does not permit combining and
averaging the hours of work of different individuals. However, we have
clarified in the rules that a State may average an individual's weekly
work hours over the month to reach the minimum average number of hours
per week that the individual must engage in work.
Our consultations uniformly suggested that we did not need to
provide any further regulatory guidance or clarification in this area.
Thus, in the
[[Page 62139]]
regulatory text, we have paraphrased the statute in simple,
understandable terms.
How many hours must an individual participate to count in the numerator
of the two-parent rate? (Sec. 271.32)
For two-parent families, section 407(c) specifies that the parents
must be participating in work activities for a total of at least 35
hours per week and that a specified number of hours be attributable to
specific work activities. A State may have one parent participate for
all 35 hours, or both parents may share in the work activities. If the
family receives federally-funded child care assistance and an adult in
the family is not disabled or caring for a severely disabled child,
then the parents must be participating for a total of at least 55 hours
per week. As before, a specified number of hours must be attributable
to certain activities (listed below). We summarize the requirements for
two-parent families in the table below:
------------------------------------------------------------------------
Two-parent families
---------------------------
and the
weekly
hours of
If the fiscal year is: then the work
participation (without/
rate is: with
(percent) federal
child care)
are:
------------------------------------------------------------------------
1997........................................ 75 35/55
1998........................................ 75 35/55
1999........................................ 90 35/55
2000........................................ 90 35/55
2001........................................ 90 35/55
2002........................................ 90 35/55
------------------------------------------------------------------------
In the first situation (where the weekly total must be at least 35
hours), at least 30 hours must be attributable to the same specific
activities as in the overall rate. In the second situation (where the
weekly total must be at least 55 hours), 50 hours must be attributable
to these activities. Again, these are:
Unsubsidized employment;
Subsidized private sector employment;
Subsidized public sector employment;
Work experience;
On-the-job training;
Job search and job readiness assistance for no more than
four consecutive weeks and up to six weeks total in a year;
Community service programs;
Vocational educational training (for not more than 12
months);
The provision of child care services to an individual who
is participating in a community service program.
Therefore, no more than five of the appropriate minimum hours may
be attributable to education related to employment, high school (or
equivalent), or job skills training activities.
During our consultations, many thought it was unclear whether the
35-hour requirement is a minimum for each week or whether it is a
minimum weekly average, as is the case in the overall rate. For
example, if a parent participated 40 hours one week and 30 hours the
next, the question arises whether (s)he would meet the minimum
requirement for both weeks. To provide maximum flexibility for States
to meet the program goals, we have clarified in the proposed rule that,
as long as the parents' average total hours equal at least 35 hours per
week, the individual meets the participation requirement.
Other than this clarification, we have mirrored the statute in
simple, understandable terms.
What are the special requirements concerning educational activities in
determining monthly participation rates? (Sec. 271.33)
Section 407(c)(2)(C) provides that a teen who is married or the
single head-of-household is deemed to be engaged in work for a month if
(s)he maintains satisfactory attendance at a secondary school or the
equivalent or participates in education directly related to employment
for an average of at least 20 hours per week. Since we have heard few
comments about this provision, our proposed rule paraphrases the
statutory language.
To reinforce the emphasis on work, section 407 limits educational
activities in two ways:
(1) An individual's participation in vocational educational
training may count for participation rate purposes for a maximum of 12
months; and
(2) For each participation rate, not more than 30 percent of
individuals determined to be engaged in work for a month may count by
reason of participation in vocational educational training or, for
teens who are married or single heads of households, either by reason
of maintaining satisfactory attendance at secondary school (or the
equivalent) or participating in education directly related to
employment. Teen parents are only included in the 30 percent limitation
in fiscal year 2000 and thereafter.
When PRWORA was enacted, there was substantial controversy about
precisely how the second limitation would apply. However, Pub. L. 105-
33 modified this provision, making the limitation much clearer. The
description above and the regulation at Sec. 271.33 reflect the new
provision, as amended by Pub. L. 105-33.
Are there any limitations in counting job search and job readiness
assistance toward the participation rates? (Sec. 271.34)
Section 407(c)(2)(A)(i) limits job search and job readiness
assistance in several ways.
First, an individual generally may not be counted as engaged in
work by virtue of participation in job search and job readiness
assistance for more than six weeks. No more than four of these weeks
may be consecutive. During our consultations, we were asked whether
these limitations apply for the lifetime of the individual, per spell
of assistance, or per fiscal year.
Many people recommended treating it as a fiscal-year limit for two
policy reasons. First, since the participation rate itself is tied to
the fiscal year, it makes sense to have the limitation apply to the
same time frame. Second, a different policy could force States to place
individuals in other, less appropriate activities just to meet the
participation rate. Moreover, research indicates that job search
activities are an instrumental component in effective work program
designs.
The statutory language supports the fiscal-year interpretation. The
job search language at 407(c)(2)(A)(i) limiting the weeks of
participation states that the limit is ``notwithstanding paragraph
(1).'' Paragraph (1) refers to the determination of whether a recipient
is engaged in work for a month ``in a fiscal year.'' Thus the reference
to paragraph (1) puts the job search limitation in the context of a
calculating whether an individual is engaged in work in the fiscal
year. Based on these considerations, we have clarified in the proposed
rules that the six-week limitation applies to each fiscal year.
The legislation and our proposed rules allow the six-week limit on
job search and job readiness assistance to extend to 12 weeks if the
unemployment rate of a State exceeds the national unemployment rate by
at least 50 percent, or if the State could qualify as a needy State for
the Contingency Fund.
Finally, our rules paraphrase the statute (at section
407(c)(2)(A)(ii)) in allowing a State to count three or four days of
job search and job readiness assistance during a week as a full week of
participation on one occasion for the individual.
Are there any special work provisions for single custodial parents?
(Sec. 271.35)
Section 407(c)(2)(B) provides a special participation rule for
single parents or caretakers with young children. A single
[[Page 62140]]
parent or caretaker with a child under the age of six will be deemed to
be engaged in work for a month if s(he) participates in work activities
for an average of at least 20 hours per week.
This provision has little relevance in FYs 1997 and 1998, when, for
the overall rate, the required number of hours for all individuals is
20 hours per week. But, when the required number of hours rises to 25
hours per week in FY 1999 and to 30 hours per week thereafter, this
provision allows single parents or caretakers to spend time with
younger children. It also may enable those with young children to
fulfill their work obligations while their children are in preschool
activities.
Because our consultations yielded few comments regarding this
provision, the proposed regulations paraphrase the statute.
Do welfare reform waivers affect what activities count as engaged in
work? (Sec. 271.36)
This section is simply a cross-reference to Sec. 271.60, which
addresses welfare reform demonstration waivers. We thought it would be
helpful to include it so that readers would know to refer to this
important exception to the work activities and hours specified in
subpart C.
Subpart D--Caseload Reduction Factor for Minimum Participation Rates
Is there a way for a State to reduce the work participation rates?
(Sec. 271.40)
Section 407(b)(3) requires us to issue regulations to reduce a
State's minimum participation rate based on reductions in its welfare
caseload. Under this provision, a State's participation rate for any
fiscal year will be reduced by the same number of percentage points as
the reduction in the State's average monthly caseload since 1995. The
reduction reflects the difference between the State's caseload under
the IV-A State plan in effect in FY 1995 and the average number of
cases receiving assistance, including assistance under a separate State
program, in the prior year.
The statute specifies that the reduction must not reflect any
caseload changes that resulted from either Federal requirements or
State changes in eligibility between the previous and current IV-A
programs.
States have an inherent interest in achieving caseload reductions;
this provision increases that interest. If a State were to reduce its
caseload, under the caseload reduction provision it could qualify for
lower participation rate requirements, reduce the risk of a penalty for
failing to meet the work participation rates, and increase its chance
of qualifying for a lower TANF MOE requirement. It could also free up
resources to serve recipients in alternative ways.
How will we determine the caseload reduction factor? (Sec. 271.41)
We found it difficult to develop an appropriate methodology that
could quantify different types of caseload reductions. In our extensive
consultations, we found no straightforward methodology for estimating
the reduction factor.
We considered and rejected two alternative approaches for
calculating the caseload reduction factor.
The first alternative was to use Medicaid records to estimate the
effect of eligibility changes. Initially, we thought this might be a
viable solution because, under section 114 of PRWORA, States continue
to determine Medicaid eligibility on the basis of the AFDC eligibility
rules in effect as of July, 1996. Thus, in theory, this provision might
give us a count of how many individuals would have been eligible for
benefits in the absence of Title IV-A eligibility changes. However,
this option proved not to be feasible because Medicaid data are not
collected in a manner that is useful for this purpose. In addition, the
statute allows States to modify AFDC rules for Medicaid eligibility
purposes; adjusting for such changes would greatly complicate any
estimations.
Our second alternative was to estimate the caseload reduction
factor for each State based on a computer model. The hope was that we
might estimate the caseload effects of State and Federal policy changes
using State-reported information on policy changes and Current
Population Survey household data. However, this option also was not
feasible due to the difficulty of developing computer models that could
accurately estimate the effects on State caseloads. In particular,
using Census data would make it difficult to estimate the effects of
certain policy changes in small States. Finally, we were concerned that
this approach would run counter to our intention of creating a simple,
understandable methodology.
Because of the difficulty we had in establishing a uniform
methodology, we are proposing to determine the appropriate caseload
reductions that apply to each State based on information and estimates
reported to us by the State. The statute specifies that the
responsibility for establishing the caseload reduction factors lies
with us. We will analyze the information and estimates provided,
determine whether we think they are reasonable (based in part on State-
by-State comparisons), and conduct periodic, on-site reviews to
validate the accuracy of the information. This approach involves States
in the process of assessing the causes of caseload changes. It also
tries to ensure program accountability and preserve the focus on work.
As the first step in the process, we will be using the caseload
data reported to us by the State. To establish the caseload base for
fiscal year 1995, we will use the number of AFDC cases reported on ACF-
3697, Statistical Report on Recipients Under Public Assistance. For
fiscal years 1996-1998, we will be using data from this same report,
supplemented by caseload information from the TANF Data Report and the
TANF MOE Data Report, beginning with the fourth quarter of fiscal year
1997, where appropriate. For fiscal years 1999 and beyond, we will only
be using caseload information from the TANF Data Report and the TANF
MOE Data Report to compare against the fiscal year 1995 base year
information. Therefore, in order to qualify for a caseload reduction, a
State must have reported information on monthly caseloads for the
previous year (including cases in separate State programs), based on
the definition of a case receiving assistance, as defined at
Sec. 271.43.
Next, to receive a reduction in the participation rates, a State
must provide us with sufficient data and information to calculate the
reduction. To facilitate such reporting, a State must submit the
Caseload Reduction Report to us containing the following information:
(1) A complete listing of and implementation dates for all
eligibility changes, including those mandated by Federal law, made by
the State since the beginning of FY 1995, and a listing of the reasons
(such as found employment) for case closures;
(2) A numerical estimate of the impact on the caseload of each
eligibility change or case closure reason;
(3) Descriptions of its estimating methodologies, with supporting
documentation; and
(4) A certification from the Governor that it has taken into
account all reductions resulting from changes in Federal and State
eligibility.
States should note that the information required here to make a
determination about the reduction factors is distinct from the case-
record information proposed as an optional reporting requirement at
Sec. 275.3(d).
[[Page 62141]]
We will determine whether the methodology and resulting estimates
are reasonable. We will compare each State's methodology, estimates and
impact against that of other States. We will also review the quality
and completeness of data and the adequacy of the documentation. We may
discuss the estimates and methodologies with State staff and may
request additional information or documentation to make adjustments in
the estimates. We will also conduct periodic, on-site visits and
examine case-record information in order to validate the information,
data and estimates provided.
The proposed regulation requires States to provide us with any
additional information within two weeks of our requesting it. We
realize that this is a short time period, but we have proposed this
deadline because a State's MOE requirement for the fiscal year may
hinge upon the caseload reduction calculations. A State that achieves
the participation rates must only reach 75 percent of its historic
expenditures for the MOE requirement, rather than 80 percent. The
reduction factor may play a significant part in whether States meet the
participation rates. We have given ourselves a limited timeframe of 90
days in which to evaluate, make any necessary modifications, and
establish caseload reduction factors. We must acquire and evaluate any
additional information we need within that period. In light of these
constraints, we think that the two-week timeframe is reasonable.
Many of the eligibility changes States have made have a
differential effect on two-parent cases (compared to the impact on
cases overall). We did a State-by-State comparison of the overall
caseload reductions and the two-parent caseload reduction between
fiscal years 1995 and 1996 and noted dramatic differences for almost
all States. Therefore, we are requiring States to calculate two
separate sets of caseload reduction estimates, one for the overall
caseload and another for two-parent cases. States must base their
overall caseload reduction estimates on decreases in cases receiving
assistance in the prior year compared to the AFDC caseload in FY 1995.
States must base their caseload reduction estimates for two-parent
families on decreases in their two-parent caseload compared to the AFDC
Unemployed Parent caseload in FY 1995.
Which reductions count in determining the caseload reduction factor?
(Sec. 271.42)
In drafting this provision, Congress recognized that some, but not
all, caseload reductions in a State should be allowed to reduce work
participation rates. Allowing States too much credit could mean that
they could avoid accountability for meeting the law's tough new work
requirements; they could simply deny families assistance and face much
lower requirements. Allowing States too little credit would mean that
the States that are most successful in moving families into employment
and off their caseloads would not get the intended reward for their
efforts.
In implementing this provision, therefore, our primary goals were
to: (1) reinforce strongly the work participation requirements of the
Act; (2) give States full credit for caseload reductions that result
from moving people into work; and (3) avoid categorizations of
eligibility changes that would create inadvertent incentives for
changes in State policy that were unrelated to work and harmful to
vulnerable families. Thus, we propose to give States credit for
caseload reductions except when those caseload reductions arise from
changes in eligibility rules that directly affect a family's
eligibility for benefits (e.g., more stringent income and resource
limitations, time limits, grant reductions, changes in requirements
based on residency, age or other demographic or categorical factors). A
State need not factor out calculable effects of enforcement mechanisms
or procedural requirements that are used to enforce existing
eligibility criteria (such as fingerprinting or other verification
techniques) to the extent that such mechanisms or requirements identify
or deter families ineligible under existing rules.
In short, we are seeking to achieve the balance identified by
Congress: that a State should receive credit for moving families off
welfare, but should not be able to avoid its accountability for work as
a result of any changes that restrict program eligibility.
Likewise, a State can argue that some or all of the families in
separate State programs should not be included in this calculation,
based on the type of family served or the nature of benefits provided,
but it must substantiate such a claim with specific data on the family.
Case-record information on the characteristics of families served in
separate State programs and data on the services provided in those
programs will contribute to this discussion. Under part 275 and
Sec. 271.41(e), we propose that States wishing to claim a caseload
reduction factor must report these data.
What is the definition of a ``case receiving assistance'' in
calculating the caseload reduction factor? (Sec. 271.43)
To determine the caseload reduction factor, we will look at
caseloads in both TANF and separate State programs. Using the
definition of assistance proposed under part 270, we propose to base
the calculation on all cases in the State receiving IV-A assistance,
except those receiving one-time, short-term assistance or services with
no monetary value.
When must a State report the required data on the caseload reduction
factor? (Sec. 271.44)
The caseload reduction factors reflect the caseloads in the
previous year compared to FY 1995. For each fiscal year, a State must
report its data by November 15th. We will approve or reject a State's
proposed reduction within 90 days of that date, or by February 15th.
Subpart E--State Work Penalties
While PRWORA embodies State flexibility in program design and
decision-making, it also embodies the principle of accountability.
Where a State does not live up to the minimum standards of performance,
it faces serious financial penalties. One of the principal areas of
accountability is in the State's provision of work and work-related
activities that recipients need to leave the system and become self-
sufficient. The work participation rates are demanding, but designed to
ensure that recipients move as quickly as possible into work and
towards independence. This is especially important given the time-
limited nature of Federal TANF benefits.
Almost all of the groups with which we consulted were interested in
the penalty related to the work participation rates. Most had strong
views about what should be a reasonable cause exception to the penalty.
They stressed that the criteria should be flexible, leaving room to
respond to circumstances in different States. They also urged us to
examine a State's good-faith efforts in determining the severity of a
penalty.
In structuring this part of the proposed regulations, we have
attempted to balance the imperative of State accountability in the work
participation rates with the knowledge that each State enters TANF from
a different standpoint and with different plans for helping its
recipients.
What happens if a State fails to meet the participation rates?
(Sec. 271.50)
In accordance with section 409(a)(3), as amended by Pub. L. 105-33,
if we
[[Page 62142]]
determine that a State has not achieved either or both of the minimum
participation rates in a fiscal year, we must reduce the SFAG payable
for the following fiscal year. The initial penalty is five percent of
the adjusted SFAG and increases by two percentage points for each
successive year that the State does not achieve the participation
rates. We may reduce the penalty amount based on the degree of
noncompliance, as discussed at Sec. 271.51. The total work
participation penalty can never exceed 21 percent of the adjusted SFAG.
(Please refer to Sec. 272.1(d) for a discussion of the total penalty
limit under TANF.)
If a State fails to provide complete and accurate data on work
participation, as required under section 411(a) of the Act and part 275
of the proposed rules, we will determine that a State has not achieved
its participation rates, and the State will be subject to a penalty
under this part. We have the authority to penalize a State that does
not report its work participation data for failure to report (under
section 409(a)(2)). However, in this case, we thought it would be more
appropriate to penalize the State for failure to meet its work rate.
First, this policy is consistent with the approach we are taking when
States fail to report information related to other penalty
determinations. Also, we did not want to create a situation where non-
reporting States would face lesser penalties than reporting States, and
we did not believe duplicate penalties were warranted.
Under what circumstances will we reduce the amount of the penalty below
the maximum? (Sec. 271.51)
The statute requires us to reduce the amount of the penalty based
on the degree to which the State is not in compliance with the required
participation rate. However, it specifies neither the measures of
noncompliance nor the extent of reduction. The proposed rule uses three
criteria to measure the degree of noncompliance. The statute also gives
us the discretion to reduce the penalty if the State's noncompliance
resulted from certain specific causes; we address this latter issue
separately, in the section entitled ``Discretionary Reductions.''
We are proposing that, a State will not receive a penalty reduction
based on the severity of the failure or our discretionary authority, if
a State has diverted cases to a separate State program for the purpose
of avoiding the work participation rates. We want to ensure that each
State makes a serious effort to provide work and work-related
activities in any State-only funded programs. As we indicated in
program announcement TANF-ACF-PA-97-1, we do not believe Congress
intended a State to use separate State welfare programs to avoid TANF's
focus on work.
Required Reduction
In part, we will measure noncompliance on the basis of whether the
State failed one or both rates for the fiscal year and which
participation rate it failed, if only one. First, we believe that a
State that fails the two-parent rate should be subject to a smaller
penalty than a State that fails the overall rate or both. Second, we
believe it is appropriate to consider the size of the two-parent
caseload in deciding how much weight to give a failure of the two-
parent rate only.
In looking at the data for FY 1996, we noted that the two-parent
participation rate on average affects a very small percentage of a
State's entire caseload; the mean State percentage was about 6.6
percent, but the median was only about 2.4 percent.
Under our proposal, the maximum penalty a State would face for
failure to meet the two-parent rate would depend directly on how much
of the total caseload in the State was comprised of two-parent
families.
The State would not get a similar reduction if it failed the
overall rate because all cases, including two-parent cases, are
reflected in the overall rate.
We believe a State that failed with respect to only a small
percentage of its cases should not face a huge penalty. At the same
time, we want to ensure that States make adequate commitments to
achieving the two-parent participation rates and that our policies
support State efforts to extend benefits to two-parent families. We
would like comments as to whether our proposal properly balances these
objectives.
Finally, we will measure noncompliance on the basis of the severity
of a State's failure to achieve the required rate. We are proposing to
reduce the penalty in direct proportion to the State's level of
achievement above a threshold of 90 percent. We would compute a ratio
whose numerator is the difference between the participation rate a
State actually achieved and the applicable threshold rate and whose
denominator is the difference between the applicable required
participation rate and the applicable threshold rate.
For example, assume a State achieved 95 percent of the required
rate, or 5 percentage points above the threshold. These 5 percentage
points represent 50 percent of the difference between the required rate
and the threshold. Therefore, we would reduce by 50 percent that
portion of the penalty (either 90 percent or 10 percent) allocated to
the rate the State failed.
In drafting the regulation, we wanted to strike the right balance
between the importance of work and the requirement to reduce the
penalty based on the degree of noncompliance. Although our first
inclination was to make reductions in proportion to the State's
achievement toward the required rate, our experience in the JOBS
program led us to consider creating a threshold below which we would
grant no reduced penalty. We were concerned that, as in the JOBS
Unemployed Parent participation rates, there would be States whose
level of achievement was negligible, particularly with the two-parent
caseload, and thus did not merit a reduced penalty. Given that
experience, we thought it was essential to have a threshold.
We considered basing the threshold on the past performance of the
States, for example at the 50th or 75th percentile of participation the
previous year. However, the data we had from the JOBS program did not
prove sufficient to determine where we should set such a State
performance threshold. Instead, we chose to establish a threshold as a
percentage of the required participation rate. We set the participation
threshold at 90 percent because of the emphasis in the statute on
making the work penalty meaningful. In particular, Pub. L. 105-33
amended the work penalty provision so that the amount was fixed,
removing the discretion we had under PRWORA to set a lesser penalty
amount. We think this shows Congressional intent that the work penalty
should be meaningful. To avoid undercutting this intent, we believe
that a State should make substantial progress in meeting the target
rates before we should consider a reduction.
Moreover, the threshold works in conjunction with the penalty
allocation we are proposing for failing to meet just one rate. Given
their combined effects, we think it is appropriate to set the threshold
at 90 percent.
We are particularly interested in any comments readers have
concerning the measures of noncompliance we have proposed.
Discretionary Reductions
The proposed regulation also reflects the discretion that we have
to reduce the amount of the penalty if the State could qualify as a
needy State for the Contingency Fund. The definition of ``needy State''
is based on especially high unemployment or large numbers of Food Stamp
recipients in the State. Please see Sec. 270.2 for more discussion of
[[Page 62143]]
how a State qualifies for the Contingency Fund.
Pub. L. 105-33 gave us the added discretion to reduce the penalty
if the State failed to meet the participation rate due to extraordinary
circumstances such as a natural disaster or regional recession. To
ensure that we take any such circumstances into consideration, States
should submit information describing the circumstances and their
effects on the ability of the State to meet the participation rates. We
must provide a written report to Congress to justify any penalty
reductions we provide States on this basis.
Readers will note the similarity between this criterion for
reducing the amount of the penalty and the criterion at
Sec. 272.5(a)(1) for granting a reasonable cause exception to a penalty
due to a natural disaster. We will evaluate any information a State
submits concerning the effects of a natural disaster on its ability to
achieve the participation rates. If the material does not support
granting a reasonable cause exception, we will consider whether it is
appropriate to reduce the penalty. For example, if the disaster caused
a failure in only one area of the State, we might reduce the penalty in
proportion to the TANF caseload in that area. We intend to use a
similar approach to evaluating the effects of a regional recession.
Finally, this section of the proposed regulation indicates that
States may dispute our findings that they are subject to a penalty.
Is there a way to waive the State's penalty for failing to achieve
either of the participation rates? (Sec. 271.52)
Section 409(b) creates a reasonable cause exception to the
requirement for certain penalties, including failure to meet the
minimum participation rates. If we determine that a State has
reasonable cause for failing to meet one of the rates, we cannot impose
a penalty.
We have included general reasonable cause criteria at Sec. 272.5,
which may apply to any of the penalties for which there are reasonable
cause exceptions. The preamble to Sec. 272.5 discusses how we arrived
at these criteria as well as our general thinking about the reasonable
cause exception. For the work participation rate penalty, two
additional, specific reasonable cause exceptions apply. Under the
proposed rule at Sec. 271.52, a State may demonstrate that its failure
can be attributed to its granting of good cause domestic violence
waivers under the Family Violence Option. In this case, the State must
show that it would have achieved the required work rates if cases with
good cause waivers were removed from both parts of the calculation
(i.e., from the numerators described in Secs. 271.22(b)(1) and
271.24(b)(1) and the denominators described in Secs. 271.22(b)(2) and
271.24(b)(2)). A State must grant the good cause domestic violence
waivers in accordance with criteria in the regulation to be eligible to
receive a reasonable cause exemption on these grounds.
The regulation also provides that a State may receive a good cause
exemption if it demonstrates that its failure to achieve the work
participation rates can be attributed to the provision of assistance to
refugees in federally-approved alternative project.
In either of these two situations, as well as in the general
reasonable cause criteria, a State must demonstrate that it did not
divert cases to a separate State program for the purpose of avoiding
the work participation rates before we will grant a reasonable cause
exemption.
Can a State correct the problem before incurring a penalty?
(Sec. 271.53)
The process for developing a corrective compliance plan does not
differ from one penalty to the next, although the content of the plan
naturally would. Thus, the proposed regulation refers to Sec. 272.6,
the general section on submittal of a corrective compliance plan for
any penalty.
However, in this section, we establish a specific threshold that
States must achieve in order to be considered for a reduced work
penalty under Sec. 272.6(i)(1). More specifically, we indicate that the
State must increase its participation rate during the compliance period
enough to reduce the difference between the participation rate it
achieved in the year for which it is subject to a penalty and the
minimum participation rate it must achieve in the year of the
corrective compliance plan by 50 percent. (In other words, if you
divided the difference between the rate achieved during the compliance
period and the rate achieved during the penalty year by the difference
between the target rate during the compliance period and the rate
achieved during the penalty year, the result must be 0.50 or greater.)
We believe that showing more progress than not indicates
significant compliance. Thus, if the State achieves this amount of
progress towards coming into compliance, we may reduce its work penalty
under the corrective compliance provision.
This proposal is similar in approach to the approach taken in
Sec. 271.51, with respect to potential reductions in work penalties
based on degree of noncompliance. In both cases, we are expecting a
State to come into significant compliance in order to get a reduced
penalty.
Is a State subject to any other penalty relating to its work program?
(Sec. 271.54)
In accordance with section 409(a)(14), as amended by Pub. L. 105-
33, if we determine that a State has violated 407(e) of the Act in a
fiscal year, which relates to when a State must impose penalties on
individuals who refuse to engage in required work, we must reduce the
SFAG payable for the following fiscal year by between one and five
percent of the adjusted SFAG.
We propose to require each State to provide us with a description
of how it will carry out a pro reduction for individuals under both
TANF and separate State programs. This requirement appears in the data
collection requirements at Sec. 275.9. This data collection will help
us determine whether this is in fact a serious problem; to the extent
possible, we want to ensure an equitable and level playing field for
the States.
Under what circumstances will we reduce the amount of the penalty for
not properly imposing penalties on individuals? (Sec. 271.55)
The statute requires us to reduce the amount of the penalty based
on the degree to which the State is not in compliance with the section
407(e) of the Act.
In determining the size of any reduction, we propose to consider
two factors. First, we will examine whether the State has established a
control mechanism to ensure that the grants of individuals are reduced
for refusing to engage in required work. Second, we will consider the
percentage of grants that the State has failed to reduce in accordance
with the statute. We are particularly interested in any comments
readers have concerning what criteria to use in this area. We would
like readers' views on the proposal to link the penalty amount to the
percentage of cases for which grants have not been appropriately
reduced.
Subpart F--Waivers
How do existing welfare waivers affect the participation rate?
(Sec. 271.60)
Section 415 permits a State to continue operating any welfare
reform demonstration waiver (i.e., section 1115 waiver) affecting work
activities granted prior to the date of enactment of PRWORA, to the
extent that PRWORA is inconsistent with the waiver.
In considering how this provision affects the work rules applicable
in a State, we wanted to draft a regulation
[[Page 62144]]
that would balance the legislative emphasis on helping recipients find
work quickly with the intent to allow States to continue reform
activities they had already undertaken. Under prior law, this
Administration encouraged States to use the waiver mechanism to its
fullest capacity and to act as the ``laboratories of change'' for the
nation. Our intent is to help States capitalize on the promising
initiatives they began under those waivers, but in a way that is
consistent with the overall purpose of PRWORA. We are also cognizant of
the importance Congress placed on ensuring that States are accountable
for promoting work.
The proposed regulation requires a waiver to meet the definition
included in Sec. 270.30. This definition allows a State the flexibility
to include applicable provisions of prior law, but only if their
inclusion were necessary to achieve the objective of the approved
waiver. For example, a State might have had a waiver requiring single
parents with children under one year of age and pregnant recipients to
participate in JOBS, while maintaining the JOBS exemptions for the
disabled and the elderly. In this example, the objective of the waiver,
as reflected in the application and terms and conditions, was to expand
the group of recipients who were required to participate in work
activities. Maintaining the other statutory exemptions would not be
necessary to achieve this objective and, in fact, would be inconsistent
with the fundamental purpose of the waiver. Therefore, the prior law
exemptions would not be included as part of the waiver; the waiver
would include only the expanded participation requirements for single
parents of young children and pregnant recipients. Moreover, because
those two groups can also be required to participate under TANF, there
is no inconsistency. Thus, in this example, the prior law exemptions
would not be included in the waiver, and the waiver itself would not be
inconsistent with TANF.
The proposed definition recognizes two kinds of waiver
inconsistencies with respect to the work requirements. The first is in
the area of what activities a State may count toward the participation
rate. As part of the waiver demonstrations, a number of States expanded
the JOBS work activities. Those States believed that a broader range of
activities would be most effective in helping the recipients in their
States find and retain work and achieve self-sufficiency. In creating
this package of activities, States generally kept some of the prior law
activities, changed others, and added new ones. While only the changed
and new activities required waivers, we would include the prior law
activities under the waiver because they are necessary for the State to
carry out the objectives of the approved waiver. Some of these
activities are inconsistent with the definition of work activities in
section 407(d), so States could use the activities defined under the
waivers instead of the TANF list of work activities. Thus, States could
count participation in a broader range of activities as participation
in work.
The other area in which the proposed definition recognizes waiver
inconsistencies relates to hours of participation. In approving waivers
of required hours of participation, we allowed States to implement two
kinds of policies.
First, States expanded the number of required hours of
participation for a class or classes of recipients. Because those
classes of recipients are already required to participate for a greater
number of hours under TANF than under prior law, there is no
inconsistency. Those waivers would not continue under this proposed
regulation.
Second, we approved waivers that allowed a State to set the number
of hours an individual must participate in accordance with an
individualized plan for achieving self-sufficiency. This gave States
additional freedom to tailor work requirements to the circumstances of
the individual. For example, some States removed the JOBS exemption for
the disabled. The intent of such a waiver was to find an appropriate
level of participation based on the particular circumstances and
abilities of the individual. Because continuing these policies could be
inconsistent with TANF, due to requiring a lesser number of hours of
participation than TANF, we will recognize such waivers as allowable
inconsistencies.
The definition does not recognize prior law exemptions from the
denominators of the participation rates as part of the waiver, except
for research group cases. We believe this is appropriate for two
reasons. First, although we have allowed new or modified activities to
count for participation, we have never granted a waiver of a
participation rate itself. Second, we have never granted a waiver that
added new exemptions from the work requirements, which would have
reduced the number of recipients counted in the denominator. We think
that States need to try to provide work-related services for the entire
caseload, because almost all families will be facing the time limit on
benefits. By not adjusting the number of families who would otherwise
be counted in the denominators, States have a greater incentive to
provide work-related services for everyone.
Finally, we would like to explain the policy in the proposed
regulations with respect to control and experimental treatment groups.
As part of the demonstrations, States divided the AFDC population in
the demonstration into three groups. The first, the control group,
received benefits under the regular, statutory AFDC program. The
second, the experimental treatment group, received benefits under AFDC
with the demonstration changes and is used to evaluate the impacts of
the new program. The third, the non-experimental treatment group, also
received benefits under AFDC with the demonstration changes, but is not
used to evaluate the impacts of the new program. The control and
experimental treatment groups together comprise the research group and
contain a fairly small number of the AFDC recipients. Except in States
with small caseloads, the research group represents a very small
proportion of the welfare caseload. The non-experimental treatment
group includes the vast majority of the welfare population.
Information on the research group is the sole basis for impact and
cost-benefit analyses of the effects of the demonstration provisions
and is essential to all the major components of the evaluation. Because
evaluation is one of the goals of the demonstration, and the
maintenance of different requirements for the three groups of
recipients is necessary to avoid compromising the evaluation, we
believe all of the underlying law for the research group continues to
apply in those States continuing demonstration evaluations and is
uniquely necessary to achieve that evaluation goal. Thus, the research
group--both the control and experimental treatment groups--should not
be included in either the numerator or the denominator of the
participation rates.
Subpart G--Non-displacement
What safeguards are there to ensure that participants in work
activities do not displace other workers? (Sec. 271.70)
The proposed regulations incorporate the statutory prohibition
against allowing an individual participating in TANF work activities
from displacing another employee. A participant in a work activity may
not fill a vacancy that exists because another individual is on layoff
from the same or equivalent job. Also, a participant may not fill a
[[Page 62145]]
vacancy created by an involuntary reduction in work force or by the
termination of another employee for the purpose of filling a vacancy
with a participant.
We encourage States to take aggressive steps to ensure that the
current work force is not harmed or their employment jeopardized in any
way by a State's efforts to place welfare recipients in employment or
work-related positions. Our ultimate goal, and that of States, is to
increase the ranks of the employed, not to substitute one group of job-
seekers for another. Displacing current workers is counter-productive
and damages the overall stability of the labor force. We are confident
that States will develop procedures for working with employers to
protect against displacing other employees.
C. Part 272--Accountability Provisions--General
It is clear that, in enacting the penalties at section 409(a),
Congress intended for State flexibility to be balanced with State
accountability. To assure that States fulfilled their new
responsibilities under the TANF program, Congress established a number
of penalties and requirements under section 409(a). The penalty areas
indicate the areas of State performance that Congress found most
significant and for which it gave us clear enforcement authority.
What definitions apply to this part? (Sec. 272.0)
This section cross-references the general TANF regulatory
definitions established under part 270.
What penalties will apply to States? (Sec. 272.1)
Section 409 includes 15 penalties that may be imposed on States.
This proposed rule covers 14 of the 15. We have not included the
specific penalty dealing with substantial noncompliance with
requirements under title IV-D (section 409(a)(8)) in this proposed
rule. Our Office of Child Support Enforcement will address this penalty
in a separate proposed rule to be published at a future time.
The penalties for which we are proposing regulations are:
(1) a penalty for using the grant in violation of title IV-A of the
Act, as determined by findings from a single State audit and equal to
the amount of the misused funds;
(2) a penalty of five percent of the adjusted SFAG, based on audit
findings that show that a State intentionally violated a provision of
the Act;
(3) a penalty of four percent of the adjusted SFAG for the failure
to submit an accurate, complete and timely required report;
(4) a penalty of up to 21 percent of the adjusted SFAG for the
failure to satisfy the minimum participation rates;
(5) a penalty of no more than two percent of the adjusted SFAG for
the failure to participate in the Income and Eligibility Verification
System (IEVS);
(6) a penalty of no more than five percent of the adjusted SFAG for
the failure to enforce penalties on recipients who are not cooperating
with the State Child Support Enforcement Agency;
(7) a penalty equal to the outstanding loan amount plus interest
for the failure to repay a Federal loan provided for under section 406;
(8) a penalty equal to the amount by which qualified State
expenditures fail to meet the appropriate level of historic effort in
the operation of the TANF program;
(9) a penalty of five percent of the adjusted SFAG for the failure
to comply with the five-year limit on Federal funding of assistance;
(10) a penalty equal to the amount of contingency funds unremitted
by a State for a fiscal year;
(11) a penalty of no more than five percent of the adjusted SFAG
for the failure to maintain assistance to an adult single custodial
parent who cannot obtain child care for a child under age six;
(12) a penalty of no more than two percent of the adjusted SFAG
plus the amount a State has failed to expend of its own funds to
replace the reduction to its SFAG due to the assessment of penalties in
Sec. 272.1 in the year of the reduction;
(13) a penalty equal to the amount of the State's Welfare-to-Work
formula grant for failure to maintain the historic effort during a year
in which this formula grant is received; and
(14) a penalty of not less than one percent and not more than five
percent of the adjusted SFAG for failure to reduce assistance for
recipients refusing without good cause to work.
In calculating the amount of the penalty, we will take into
consideration the extent to which a State's SFAG has been reduced to
fund Tribal TANF grants. This is particularly applicable for penalties
based on percentage reductions. These regulations use the term
``adjusted SFAG'' to refer to States whose SFAG allocations are reduced
for this purpose. For States without Tribal grantees, ``adjusted SFAG''
will be the same as SFAG.
Except for the penalty at Sec. 272.1(a)(12), all penalties are
either a percentage of the adjusted SFAG or a fixed amount. In
calculating the amount of these penalties, we will add all applicable
penalty percentages together, and we will apply the total percentage
reduction to the amount of the adjusted SFAG that would have been
payable if no penalties were assessed against the State. As a final
step, we will subtract other (fixed) penalty amounts.
The penalty at Sec. 272.1(a)(12) requires that we reduce a State's
adjusted SFAG if, after one of the penalties under this section has
been taken, a State does not expend its own funds on the State's TANF
program in the amount of the penalty, i.e., the amount by which the
adjusted SFAG is reduced. Unlike the other penalties, this penalty
represents a percentage of the adjusted SFAG (up to two percent) and a
fixed amount, i.e., the amount of the reduction a State has failed to
expend under the TANF program with its own funds. We believe it is
appropriate to calculate the amount of this penalty by including the
amount of the penalty based on a percentage with other applicable
penalty percentages. The fixed amount of this penalty will be
subtracted with other fixed-amount penalties. Then we will add the
amount based on the percentage for this penalty and the fixed amount
for this penalty to determine the cumulative amount of this penalty.
The total reduction in a State's grant must not exceed 25 percent.
If the 25 percent limit prevents the recovery of the full penalty
imposed on a State during a fiscal year, we will apply the remaining
amount of the penalty to the SFAG payable for the immediately
succeeding fiscal year. If it is not possible to take the full penalty
in the next succeeding year, we will defer taking the penalty to
subsequent years until it is finally taken in full.
When do the TANF penalty provisions apply? (Sec. 272.2)
States may implement the TANF program at different times, but no
later than July 1, 1997. The Territories, i.e., Guam, the Virgin
Islands, Puerto Rico, and American Samoa, may not implement until July
1, 1997.
Congress recognized that, in certain circumstances, States should
face the consequences for failing to meet the requirements of the
penalty provisions from the first day the State operates the TANF
program. It also recognized, however, that States needed some lead time
in implementing other TANF requirements.
Section 116(a)(2) of PRWORA delays the effective date of some of
the penalty provisions in title IV-A. For those provisions where the
effective date is
[[Page 62146]]
not delayed, we believe that Congress intended that a State would be
subject to these penalties from the first day it began to operate TANF.
Before we issue final rules, States must implement the TANF
provisions in accordance with their own reasonable interpretation of
the statute. If we find that a State's actions are inconsistent with
the final regulations, but consistent with a reasonable interpretation
of the statute, we will not impose a penalty. However, if we find that
a State has operated its TANF program in a manner that is not based on
a reasonable interpretation of the statute, we may penalize the State.
How will we determine if a State is subject to a penalty? (Sec. 272.3)
We have concluded that no one method can be used for monitoring
State performance. The following discussion explains the different
methods we will use to determine State compliance with the requirements
with which noncompliance may lead to penalties.
Using the Single Audit to Determine Misuse of Funds and the
Applicability of Certain Other Penalties
We will determine whether a State has used funds under section 403
in violation of title IV-A through an audit conducted under the Single
Audit Act. (See Sec. 273.10 on Misuse of Funds.) This is the only
penalty for which Congress identified a method for determining a
penalty.
Under the requirements of the Single Audit Act, States operating
Federal grant programs meeting a monetary threshold (currently
$100,000, but soon to be $300,000) must conduct an audit under the Act.
Most States must audit annually; a few may audit biennially. Because of
the substantial funding under TANF, all TANF States meet the audit
threshold.
The single audit is an organization-wide audit that reviews State
performance in many program areas. We will implement the Single Audit
Act through use of Office of Management and Budget (OMB) Circular A-
133, ``Audits of States, Local Governments, and Non-Profit
Organizations.'' OMB recently revised the Circular, merging former
Circulars A-128 and A-133, because of amendments to the Act in 1996.
The new Circular was published in the Federal Register on June 30,
1997, at 62 FR 35277.
In conducting their audits, auditors use a variety of tools,
including the statute and regulations for each program and a compliance
supplement issued by OMB that focuses on certain areas of primary
concern to that program. Upon issuance of final regulations, we will
prepare a TANF program compliance supplement, for OMB to issue, which
will focus on those penalties for which the single audit will be our
primary compliance instrument.
The Single Audit Act does not preclude us or other Federal offices
or agencies, such as the Office of the Inspector General (OIG), from
conducting additional audits or reviews. In fact, there is specific
authority to conduct such additional audits or reviews. In particular,
31 U.S.C. 7503(b) states:
(b) Notwithstanding subsection (a), a Federal agency may
conduct, or arrange for additional audits that are necessary to
carry out its responsibilities under Federal law or regulation. The
provisions of this chapter do not authorize any non-Federal entity
(or sub-recipient thereof) to constrain, in any manner, such agency
from carrying out or arranging for such additional audits, except
that the Federal agency shall plan such audits to not be duplicative
of audits of Federal awards.
States should note, therefore, that the State-conducted single
audit will be our primary means for determining if a State has misused
funds. We may, however, through our own audits and reviews, or through
OIG and its contractors, conduct audits or reviews of the TANF program
that will not be duplicative of single organization-wide audit
activities. We may identify a need to conduct such audits as the result
of complaints from individuals and organizations, requests by the
Congress to review particular areas of interest, or other indications
of problems in State compliance with TANF program requirements.
We are proposing that the single audit be the primary means for
determining certain other penalties as well.
Where we determine that a State is subject to a penalty for the
misuse of funds, we may apply a second penalty if we determine that the
State intentionally misused Federal TANF funds. The criteria for
determining ``intentional misuse'' are found at Sec. 273.12. The single
audit will be the primary vehicle for this penalty because of its link
to the determination of misuse of funds.
The single audit will also be the primary means that we use to
determine State compliance with the following three penalties: (1)
failure to participate in the Income and Eligibility Verification
System (see Sec. 274.11); (2) failure to comply with paternity
establishment and child support enforcement requirements under title
IV-D of the Act (see Sec. 274.31); and (3) failure to maintain
assistance to an adult single custodial parent who cannot obtain child
care for a child under age six (see Sec. 274.20). For these process-
focused penalties, we determined that we could make appropriate use of
the single audit to monitor State compliance.
The audit compliance supplement will include guidance to auditors
on how to monitor these areas. As in the case of the misuse-of-funds
penalty, we may conduct other reviews and audits, if necessary. For
example, the penalty for a State's failure to maintain assistance to an
adult single custodial parent who cannot obtain child care is an area
where we anticipate that we could receive complaints from individuals
and organizations. A number of substantiated complaints may indicate
that an additional review may be warranted.
Use of Data Collection and Reporting for Determining Applicability of
Certain Penalties
We will monitor State compliance with the penalties for failure to
satisfy minimum participation rates (see Sec. 271.21) and failure to
comply with the five-year limit on Federal assistance primarily through
the information required to be reported by section 411(a) (i.e., State
reporting of disaggregate case record information). (See part 275 of
the proposed rule for the proposed data collection and reporting
requirements.)
We believe that Congress intended that the data elements in section
411(a) be used to gather information for these two penalty areas. Thus,
we concluded that the section 411(a) data collection tools would be our
primary means for determining these penalties. We may also need to
conduct reviews in the future to verify the data submitted by States,
particularly in these two areas where a fiscal penalty is applicable.
States should maintain records to adequately support any report in
accordance with 45 CFR 92.42. States may not revise the sampling frames
or program designations for cases in the quarterly TANF and TANF MOE
Data Reports retroactively (i.e., after submission).
Accurate data are essential if we are to apply penalties fairly. If
the State submits insufficient data to verify its compliance with the
requirements, or if we determine that a State can not adequately
document data it has submitted showing that it has met its
participation rates or the five-year time limit, we will enforce the
participation rate penalty or five-year time limit penalty.
In our consultations, some participants recommended that the
[[Page 62147]]
single audit be the means for determining all the penalties. However,
since States must otherwise report the data that directly speak to
their compliance in these two areas, and timely determination of State
compliance is necessary, we did not accept that recommendation and have
proposed to rely on the quarterly reports required under part 275 of
the proposed rule.
TANF MOE and Contingency Fund MOE Penalties, and Failure to Replace
Grant Reductions Penalty
All States are subject to the TANF MOE penalty for failure to
maintain a certain level (i.e., 75 or 80 percent) of historic effort.
Those States that choose to receive contingency funds under section
403(b) are subject to a separate maintenance-of-effort penalty for
failure to maintain 100 percent of historic effort.
We have developed a proposed TANF Financial Report (see Appendix D
of part 275). We designed this report to gather information required
under sections 403(b)(4), 405(c)(1), 409(a)(1), 409(a)(7), 411(a)(2),
411(a)(3), 411(a)(5), including data on administrative costs, types of
State expenditures, and transitional services for families no longer
receiving assistance. It will also gather financial information to
enable us to award grant funds, close out accounts, and manage other
financial aspects of the TANF program. In addition, we will be using
this report to monitor State compliance with the TANF and Contingency
Fund MOE requirements and to aid us in determining if Federal TANF
funds have been used properly.
Consistent with section 5506(a) of Pub. L. 105-33, the TANF
Financial Report is due 45 days after the end of each quarter. Upon
receipt of the report for the fourth quarter, i.e., by November 14, we
will have State-reported information indicating whether or not the
State met its MOE requirements.
On the TANF Financial Report, States will inform us of the amount
of expenditures they have made for TANF and Contingency Fund MOE
purposes. For the TANF MOE, States must inform us of the amount of
expenditures made in the State TANF program and in separate State
programs. (See part 274, subpart B, for more information on the
Contingency Fund MOE requirement.)
For the TANF MOE, we are proposing to require a supplemental report
that must accompany the fourth quarter TANF Financial Report. The
supplemental report (or addendum) will include a description of the
TANF MOE expenditures that States have made under separate programs,
i.e., not as part of their State TANF programs. (See Secs. 273.7 and
275.9(a) for more information on the contents of this supplemental
report.)
If we reduce a State's SFAG as the result of a penalty, the State
is required to expend an equal amount of its own funds for the fiscal
year in which the reduction is made. If the State fails to replace the
funds through these State-only expenditures, as required, the State is
subject to the penalty at Sec. 272.(1)(a)(12), i.e., an amount of up to
two percent of the adjusted SFAG and the amount not expended to replace
the reduction to the SFAG due to the penalty.
We will use the TANF Financial Report (or Territorial Financial
Report) to determine if a State has complied with these provisions.
Instructions to the TANF Financial Report in Appendix D require States
to include amounts that they are required to contribute as a result of
a penalties taken against the State. (A similar requirement will be
included in the Territorial Financial Report.)
As in the case of the penalties for failure to meet the
participation rates or comply with the five-year limit on assistance,
our program management responsibilities may require us to verify the
data submitted by States on the TANF Financial Report, particularly
data on MOE expenditures and ``replacement funds.'' States should
maintain records in accordance with 45 CFR 92.42. As we have stated,
accurate data are essential if we are to determine State compliance. If
the State submits insufficient MOE data to verify its compliance or if
we determine that the State can not adequately document data it has
submitted showing that it has met its MOE requirements, we will apply
the penalties for failure to meet the TANF and Contingency Fund MOE
requirements. For the TANF MOE, we may have to estimate the actual
level of qualifying MOE expenditures. We would then base the amount of
the penalty on the degree to which we believe the data are inaccurate.
Federal Loan Repayment
We will penalize States for failing to repay a loan provided under
section 406 (see Sec. 274.40). A specific vehicle for determining a
State's compliance with this requirements is unnecessary. In our loan
agreements with States, we will specify due dates for the repayment of
the loans and will know if payments are not made.
Penalty for Reporting Late
We will penalize States for failing to submit a report required
under section 411(a) by the established due dates (see Secs. 275.4 and
275.7). As noted before, we are requiring that the reports must not
only be timely, but they must also be complete and accurate. Thus, we
may take actions to review the accuracy of data reporting if
appropriate. If we determine that the data required under section
411(a) are incomplete or inaccurate, we may apply the penalty for
failing to submit a report. As discussed above, if the data that are
inaccurate or incomplete pertain to other penalties (i.e., the
participation rate, the five-year time limit on assistance, or the TANF
MOE and Contingency Fund MOE requirements), we will apply the penalties
associated with these requirements.
Additional Single Audit Discussion
Although we are proposing that the single audit be the primary
means to determine certain specific penalties, if a single audit
detects the lack of State compliance in other penalty areas, e.g., the
five-year limit on Federal assistance, we cannot ignore those findings.
Therefore, we will also impose a penalty based on the single audit
findings in such other penalty areas.
For most programs, other than TANF, the Single Audit Act procedures
provide for disallowance in cases of substantiated monetary findings.
However, in accordance with section 409(a), we will be taking
penalties, rather than disallowances, under TANF. When the single audit
determines a specific penalty, the penalty amount that we will apply is
the penalty amount associated with the specific penalty provision or
provisions, for example, misuse of funds and failure to end federal
assistance after 60 months of receipt. Likewise, where we, or OIG,
conduct an audit or review, the penalty amount that will apply is the
penalty amount associated with the specific penalty or penalties under
section 409.
Regardless of how we determine that a State is subject to a
penalty, the determination of whether a State may invoke the reasonable
cause exception or enter into a corrective compliance plan depends on
the specific penalty provision. States cannot avoid all penalties
through the reasonable cause exception or a corrective compliance plan
(see Sec. 272.4).
[[Page 62148]]
What happens if we determine that a State is subject to a penalty?
(Sec. 272.4)
Notification to the State
If we determine that a State is subject to a penalty, we will send
the State a notice that it has failed to meet a requirement under
section 409(a). This notice will: (1) specify the penalty provision at
issue, including the applicable penalty amount; (2) specify the source
and reasons for our decision; (3) explain how and when the State may
submit a reasonable cause justification under 409(b) and/or corrective
compliance plan under 409(c); and (4) invite the State to present its
arguments if it believes that the data or method we used were in error
or were insufficient, or that its actions, in the absence of Federal
regulations, were based on a reasonable interpretation of the statute.
Process When Both Reasonable Cause and Corrective Compliance Plan
Provisions Apply
For penalties where the reasonable cause and the corrective
compliance plan provisions both apply, we are proposing that a State
submit to us both its justification for reasonable cause and corrective
compliance plan within 60 days of receipt of our notice of failure to
comply with a requirement. The objective of this proposal is to
expedite the resolution of State failure to meet a requirement.
A State may choose to submit a reasonable cause justification
without a corrective compliance plan. In this case, we will notify the
State if we do not accept the State's justification of reasonable
cause. Our notification will also inform the State that it has an
opportunity to submit a corrective compliance plan. The State will then
have 60 days from the date it receives the notification to submit a
corrective compliance plan. (Under this scenario, we will send the
State two notices--the first will inform the State that it may be
subject to a penalty, and the second will inform the State that we
determined that it did not have reasonable cause.)
A State may also choose to submit only a corrective compliance plan
if it believes that the reasonable cause factors do not apply in a
particular case.
Process When the Reasonable Cause and/or Corrective Compliance Plan
Provisions Do Not Apply
The reasonable cause and corrective compliance plan provisions in
the statute do not apply to five penalties:
(1) failure to repay a Federal loan on a timely basis; (2) failure
to maintain the applicable percentage of historic State expenditures
for the TANF MOE requirement; (3) failure to maintain 100 percent of
historic State expenditures for States receiving Contingency Funds; (4)
failure to expend additional state funds to replace grant reductions
due to the imposition of one or more penalties listed in Sec. 272.1;
and (5) failure to maintain 80, or 75 percent, as appropriate, of
historic State expenditures during a year in which a Welfare-to-Work
grant is received.
Due Dates
States must postmark their responses to our notification within 60
days of their receipt of our notification.
If, upon review of the State's submittal(s), we find that we need
additional information, the State must provide the information within
two weeks of the date of our request. This is to make sure we are able
to respond timely.
Under what general circumstances will we determine that a State has
reasonable cause? (Sec. 272.5)
Two provisions in section 409, the reasonable cause and corrective
compliance provisions, could result in our decision to excuse or reduce
a penalty. After reviewing these provisions, we decided that we should
not consider the reasonable cause exception in isolation. Rather, we
view it in conjunction with the provision for developing corrective
compliance plans. In drafting this proposed regulation, we have
acknowledged the new Federal and State roles under TANF and worked to
minimize adversarial Federal-State issues. Our primary task is to help
each State operate the most effective program it can to meet the needs
of its caseload and the goals of the law. Through these rules, we hope
to focus States on positive steps that they should take to correct
situations that resulted in a determination that they are subject to a
penalty rather than let them simply avoid the penalty. As such, we
consider it more appropriate to emphasize the use of the corrective
compliance plan process over the reasonable cause exception.
Consequently, we have drafted a more limited list of reasonable cause
criteria than some suggested during our consultations.
PRWORA did not specify any definition of reasonable cause or
indicate what factors we should use in deciding whether to grant a
reasonable cause exception for a penalty. During our deliberations on
reasonable cause factors, we considered the diverse opinions expressed
during our consultation process, as well as the need to support the
commitment of Congress, the Administration, and States to the work and
other objectives of the TANF program. In keeping with these objectives,
we are proposing a limited number of reasonable cause factors for
circumstances that are beyond a State's control, and placing a greater
emphasis on corrective solutions for those circumstances a State can
control. We strongly believe that States must correct problems that
detract from moving families from welfare to self-sufficiency.
In the discussion that follows, we will describe: (1) the factors
that we will consider in deciding whether or not to excuse a penalty
based on a State's claim of reasonable cause; (2) the contents of an
acceptable corrective compliance plan; and (3) the process for applying
these provisions. Our proposal attempts to treat these two provisions
as part of an integrated process.
We are proposing factors that would be applicable to all penalties
for which the reasonable cause provision applies. We generally limit
reasonable cause to the following: (1) natural disasters and other
calamities (e.g., hurricanes, tornadoes, earthquakes, fires, floods,
etc.) whose disruptive impact was so significant as to cause the
State's failure to meet a requirement; (2) formally issued Federal
guidance that provided incorrect information resulting in the State's
failure; and (3) isolated, non-recurring problems of minimal impact
that are not indicative of a systemic problem (e.g., although a State's
policies and procedures, including a computerized kick-out system,
require that Federal TANF assistance be time-limited to five years, ten
families somehow slip through and receive assistance for longer than
five years).
We are also proposing a separate factor that would apply in cases
when the State fails to satisfy the minimum participation rates, and
another specific factor that would apply to cases when the State fails
to meet the five-year limit. We discuss specific factors in our
preamble discussion of Secs. 271.52 and 274.3.
We will not grant a State reasonable cause to avoid the time-limit
penalty or any of the three penalties related to work if we detect a
significant pattern of diversion of families to separate State programs
that achieves the effect of avoiding the work participation rates. As
we indicated in program announcement TANF-ACF-PA-97-1, we do not
believe Congress intended a State to use separate State welfare
programs to avoid TANF's focus on work.
Likewise, as discussed previously, we will not grant a State
reasonable cause to avoid the penalty on work participation, failure to
enforce child
[[Page 62149]]
support cooperation, time limits or failure to impose work sanctions if
we detect a significant pattern of diversion of families to separate
State programs that has the effect of diverting the Federal share of
child support collections.
In determining reasonable cause, we will consider the efforts the
State made to meet the requirement. We will also take into
consideration the duration and severity of the circumstances that led
to the State's failure to achieve the requirement.
The burden of proof rests with the State to explain fully what
circumstances, events, or other occurrences constitute reasonable cause
with reference to its failure to meet a particular requirement. The
State must provide us with sufficient relevant information and
documentation to substantiate its claim of reasonable cause. If we find
that the State has reasonable cause, we will not impose the penalty.
What if a State does not demonstrate reasonable cause? (Sec. 272.6)
As noted, section 409(c), as amended by section 5506 of Pub. L.
105-33, provides that, prior to imposing a penalty against a State, we
will notify the State of the violation and allow the State the
opportunity to enter into a corrective compliance plan. The State will
have 60 days from the date it receives our notice of a violation to
submit a corrective compliance plan if it does not claim reasonable
cause or if it claims reasonable cause simultaneously with its
corrective compliance plan. If, in response to our notice of a
violation, the State initially submits only a claim of reasonable
cause, and if we deny this claim, the State has 60 days from the date
it receives our (second) notice denying the claim to submit a
corrective compliance plan. If an acceptable corrective compliance plan
is not submitted on time, we will assess the penalty immediately.
Outside of the notice(s) we will not remind the State that the
corrective compliance plan is due.
The corrective compliance plan must identify the milestones,
including interim process and outcome goals, the State will achieve to
assure that it will fully correct or discontinue the violation within
the time period specified in the plan. In order to highlight the
importance of the plan, it must also include a certification by the
Governor that the State is committed to correcting or discontinuing the
violation in accordance with the plan.
We recognize that each plan will be specific to the violation (or
penalty) and that each State operates its TANF program in a unique
manner. Thus, we will review each plan on a case-by-case basis. Our
determination to accept a plan will be guided by the extent to which
the State's plan indicates that it will completely correct or
discontinue, as appropriate, the situation leading to the penalty.
The steps a State takes to correct or discontinue a violation may
vary. For example, where a State is penalized for misusing Federal TANF
funds, we will expect it to remove this expenditure from its TANF
accounting records (charging it to State funds, as allowable) and
provide steps to assure that such a problem does not recur. Where a
State has reduced or denied assistance improperly to a single custodial
parent who could not find child care for a child under six, correcting
the violation may require that the State reimburse a parent
retroactively for the assistance that was improperly denied. The
State's corrective compliance plan would also have to describe the
steps to be taken to prevent such problems in the future.
Section 409(c)(3) requires that a violation be corrected or
discontinued, as appropriate, ``in a timely manner.'' A State's timely
correction of the problem or discontinuance of an improper action is
critical to assure that the State is not subject to a subsequent
penalty. At the same time, we recognize that the causes of violations
will vary and we cannot expect all violations to be rectified in the
same time frame. Thus, we do not want to unduly restrict the duration
of corrective compliance plans. At the same time, we do not want to
allow States to prolong the corrective compliance process indefinitely
and leave problems unresolved into another fiscal year. Therefore, we
are proposing that the period covered by a corrective compliance plan
end no later than six months after the date we accept a State's
corrective compliance plan.
We believe that, for most violations, States will have some prior
indication that a problem exists and will be able to begin addressing
its problems during the period before the deadline for submitting its
corrective compliance plan. Therefore, we think it fair that the
corrective compliance plan period extend no more than six months from
the date when we accept the State's plan; this period should provide
the State sufficient time in which to correct or discontinue
violations.
We would like to hear comments from States and other interested
parties on this proposal to restrict the time period for a corrective
compliance plan. We will consider all comments and suggestions we
receive on this matter.
Corrective Compliance Plan Review
We propose to consult with States on any modifications to the
corrective compliance plan and seek mutual agreement on a final plan.
Such consultation will occur only during the 60-day period specified in
the law. Any modifications to the State's corrective compliance plan
resulting from such consultation will constitute the State's final
corrective compliance plan and will obligate the State to take such
corrective actions as specified in the plan.
We may either accept or reject the State's corrective compliance
plan within the 60-day period that begins on the date that we receive
the plan. If a State does not agree to modify its plan as we recommend,
we may reject the plan. If we reject the plan, we will immediately
notify the State that the penalty is imposed. The State may appeal our
decision to impose the penalty in accordance with the provisions of
section 410 of the Act and the proposed regulations at Sec. 272.7. If
we have not taken an action to reject a plan by the end of the 60-day
period, the plan is accepted, as required by section 409(c)(1)(D).
If a State corrects or discontinues, as appropriate, the violations
in accordance with its corrective compliance plan, we will not impose
the penalty. The statute permits us to collect some or all of the
penalty if the State has failed to correct or discontinue the
violation. Therefore, under limited circumstances, we may reduce the
amount of the penalty if the violation has not been fully rectified,
based on one or more of the following situations: (1) the State made
substantial progress in correcting or discontinuing the violation; or
(2) a natural disaster or regional recession prevented the State from
coming into full compliance.
As discussed previously, we are proposing that, for certain
penalties, we would not grant a State a reduced penalty through
corrective compliance if we detect a significant pattern of diversion
of cases to separate State programs that result in avoidance of the
work requirements or diversion of the Federal share of child support
collections unless the State discontinues the diversion during the
corrective compliance period. A State wishing to receive one of these
reductions should address its plans to discontinue the diversion during
the corrective compliance period and provide evidence of the
discontinuation.
[[Page 62150]]
How can a State appeal our decision to take a penalty? (Sec. 272.7)
Once we make a final decision to impose a full or partial penalty,
we will notify the State that we will reduce the State's SFAG payable
for the quarter or the fiscal year and inform the State of its right to
appeal to the Departmental Appeals Board (the Board).
Section 410 provides that the Secretary will notify the chief
executive officer of the State of the adverse action within five days.
This provision covers any adverse actions with respect to the State
TANF plan or the imposition of a penalty under section 409.
Within 60 days after the date a State receives this notice, the
State may file an appeal of the action, in whole or in part, to the
Board. As Congress only allowed 60 days for the Board to reach a
decision following the appeal, it is evident they intended a very
streamlined procedure. Therefore, the State's appeal must include all
briefs and supporting documentation for its case when it files its
appeal. A copy of the appeal should be sent to the Office of the
General Counsel, Children, Families and Aging Division, Room 411-D, 200
Independence Avenue, S.W., Washington, D.C. 20201. ACF must file its
reply brief and supporting documentation within 30 days after a State
files its appeal. Further briefing and argument will be at the
discretion of the Board. A State's appeal to the Board will also be
subject to the following regulations at part 16 of title 45:
Secs. 16.2, 16.9, 16.10, and 16.13-16.22.
Section 410(b)(2) provides that the Board will consider an appeal
on the basis of documentation the State submits, along with any
additional information required by the Board to support a final
decision. In deciding whether to uphold an adverse action or any
portion of such action, the Board will conduct a thorough review of the
issues and make a final determination within 60 days after the appeal
is filed. The filing date will be the date that materials are received
by the Board in a form acceptable to it. The 60 days may be tolled by
the Board, for a reasonable period, if it determines it needs
additional documentation to reach a decision.
Finally, a State may obtain judicial review of a final decision by
the Board by filing an action within 90 days after the date of the
final decision. States may file either with the district court of the
United States in the judicial district where the State Agency is
located or in the United States District Court for the District of
Columbia. The district courts will review the final decision of the
Board on the record established in the administrative proceeding, to
determine if it is arbitrary, capricious, an abuse of discretion or
otherwise not in accordance with law, or unsupported by substantial
evidence. The court's review will be on the basis of the documents and
supporting data submitted to the Board.
What is the relationship of continuing waivers on the penalty process
for work participation and time limits? (Sec. 272.8)
States that, in accordance with section 415 of the Act, continue
waivers may operate under a different set of requirements in
determining the calculation of work participation rates and/or
applicability of time limits. Providing this flexibility is an
important aspect of encouraging States who have been innovative in
implementing welfare reform to continue those endeavors and test their
results. However, this flexibility must also be balanced with
accountability to the purposes of TANF, particularly those of
encouraging work and focusing TANF on the provision of temporary
support to families as they move to self-sufficiency. To address this
balance, we will: (1) require Governors to certify waiver
inconsistencies a State believes apply; (2) treat a State's failure to
meet work participation rates or time limit requirements in a modified
manner for States continuing waivers that are inconsistent with TANF;
and (3) publish information related to a State's success in meeting
work participation rates and time-limit restrictions, as measured
against both TANF and waiver requirements. Further, if this information
indicates that States continuing waivers inconsistent with TANF perform
significantly below States operating fully under TANF we will consider
seeking legislative changes regarding State authority to continue
waivers policies inconsistent with TANF.
Governor's Certification
Because the inconsistent waiver will constitute an alternative
requirement, it is important to establish the specific extent of
applicability of waiver inconsistencies and their related purpose.
Consequently, Sec. 272.8 requires Governors to certify to the
Secretary, up-front and in writing, the specific inconsistencies that
the State chooses to continue and the reasons for continuing the
alternative waiver requirements, including how their continuation is
consistent with the purposes of the waiver. As indicated in our
definitions of waiver and inconsistency at Sec. 270.30, we will not
recognize inconsistencies related to continuation of alternative waiver
requirements for the explicit purpose of avoiding penalties for failing
to meet the work participation rate or implement the time limit as
these were not part of the original purpose of the waiver. The
Governor's certification of waiver inconsistencies must, consistent
with the approved waivers, describe the standards the State will use
in: (1) assigning individuals to alternative waiver work activities or
to an alternative number of hours of work; and (2) determining
exemptions from or extensions to the time limit.
For additional discussion of what are waiver inconsistencies in
work participation and time limits, see Secs. 270.30, 271.60 and
274.1(e).
Penalty Process for States Continuing Waivers
States operating under alternative waiver requirements are at an
advantage compared to other States in being able to meet participation
rates and comply with time limit requirements. For example, a State
with a waiver allowing unlimited job search has more options in how it
can assign work and training activities to meet work participation
requirements. Similarly, a State continuing waiver policies that exempt
a portion of its cases which include an adult recipient from the time
limit will have a lower percentage of families reaching the 60-month
time limit and therefore less difficult decisions in granting
applicable hardship extensions.
We have taken this advantage into consideration and determined that
States continuing waivers in either of these areas will not be eligible
for a reasonable cause exception from a related work participation or
time-limit penalty. Nor will they be eligible for a work participation
rate penalty reduction based on severity of the failure or under our
discretionary authority, as otherwise allowed in accordance with
Sec. 271.51(b)(3) or (c). Given the State's advantage compared to
States operating fully under TANF rules, neither a reasonable cause
exception nor a reduction in the penalty is warranted.
Further, in developing a corrective compliance plan to address
failure to meet work participation requirements or adhere to the
restriction on the percentage of families receiving TANF benefits in
excess of 60 months, we will require that States consider modification
of its alternative waiver requirements as part of the plan. In making
this consideration, we will expect States to assess whether continuing
any of their waiver policies
[[Page 62151]]
hinders their ability to achieve compliance. If the State continues
waivers related to the failure to achieve compliance with the work
requirements described in subparts B and C of part 271 or the time
limits described in Secs. 274.1 and 274.2 and still fails to correct
the violation, it will not be eligible for a reduced penalty for such
related noncompliance regardless of whether the State made substantial
progress towards achieving compliance or if the State's failure to
comply was attributable to natural disaster or regional recession.
Calculating/Publishing Results
In publishing information concerning State performance related to
work participation rates, it is necessary to measure compliance based
on waiver rules. Similarly, reports on the percentage of cases with an
adult recipient receiving Federal TANF benefits in excess of 60 months
should reflect the percentage of cases receiving benefits in excess of
60 months under alternative waiver rules, an amount which may exceed
the TANF 20 percent limit. However, these differential rules do not
provide a comparable basis for reporting on State performance related
to work, nor an accurate picture of the extent to which Federal TANF
benefits are provided for more than 60 months. Therefore, we will
publish reports which provide information, where applicable, concerning
the percentage of cases meeting work participation requirements under
both TANF and waiver rules. Similarly, we will provide information
indicating the percentages of cases with an adult recipient that
receive more than 60 months of Federal TANF benefits in accordance with
TANF hardship exemptions and in accordance with alternative rules under
waivers. The requirements specified under the TANF data collection
regulations will facilitate reporting results under both sets of rules.
D. Part 273--State TANF Expenditures
Subpart A--What Rules Apply to a State's Maintenance of Effort?
What definitions apply to this part? (Sec. 273.0)
This section cross-references the general TANF regulatory
definitions established under part 270. It also adds a definition of
``administrative costs'' that is applicable in determining whether
States have exceeded the caps on ``administrative costs'' that apply
separately to their Federal TANF funds and State MOE funds.
We consulted with State and local representatives and other parties
and organizations on whether and how we should define the types of
costs that should be considered administrative costs.
We considered not proposing a Federal definition (but requiring
States to develop their own definitions and provide them to us as part
of the annual addendum). That option had appeal because: (1) it is
consistent with the philosophy of a block grant; (2) we took a similar
approach in some other areas (i.e., in not defining individual work
activities); (3) we support the idea that we should focus on outcomes,
rather than process; and (4) the same definition might not work for
each State. Also, we were concerned we could exacerbate consistency
problems if we created a Federal definition. Because of the wide
variety of definitions in other related Federal programs, adoption of a
single national definition could create new inconsistencies in
operational procedures within State agencies and add to the
complexities administrators would face in operating these programs.
At the same time, we were hesitant to defer totally to State
definitions. The philosophy underlying this provision is very
important; in the interest of protecting needy families and children,
it is critical that the substantial majority of Federal TANF funds and
State MOE funds go towards helping needy families. If we did not
provide some definition, it would be impossible to assure that the cap
had meaning. Also, we felt that it would be better to give general
guidance to States than to get into disputes with individual States
about whether their definitions represented a ``reasonable
interpretation of the statute.''
We thought that it was very important that any definition be
flexible enough not to unnecessarily constrain State choices on how
they deliver services. As numerous commenters have pointed out, a
traditional definition of administrative costs would be inappropriate
because the TANF program is unique, and we expect TANF to evolve into
something significantly different from its predecessors and from other
welfare-related programs. Specifically, we expect TANF to be a more
service-oriented program, with substantially more resources devoted to
case management and fewer distinctions between administrative
activities and services provided to recipients.
You will note that the definition we have proposed does not
directly address case management or eligibility determination. We
understand that, in many instances, the same individuals may be
performing both activities. In such cases, to the extent that a
worker's activities are essentially administrative in nature (e.g.,
traditional eligibility determinations or verifications), the portion
of the worker's time spent on such activities will be treated as
administrative costs, along with any associated indirect (or overhead)
costs. However, to the extent that a worker's time is essentially spent
on case-management functions or delivering services to clients, that
portion of the worker's time can be charged as program costs, along
with associated indirect (or overhead) costs.
We believe that the definition we have proposed will not create a
significant new administrative burden on States. We hope that it is
flexible enough to facilitate effective case management, accommodate
evolving TANF program designs, and support innovation and diversity
among State TANF programs. It also has the significant advantage of
being closely related to the definition in effect under the Job
Training Partnership Act (JTPA). Thus, it should facilitate the
coordination of Welfare-to-Work and TANF activities and support the
transition of hard-to-employ TANF recipients into the work force.
We have not included specific language in the proposed rule about
treatment of costs incurred by subgrantees, contractors, community
service providers, and other third parties. Neither the statute nor the
proposed regulations make any provision for special treatment of such
costs. Thus, the expectation is that administrative costs incurred by
these entities would be part of the total administrative cost cap. In
other words, it is irrelevant whether costs are incurred by the TANF
agency directly or by other parties.
We realize this policy may create additional administrative burdens
for the TANF agency and do not want to unnecessarily divert resources
to administrative activities. At the same time, we do not want to
distort agency incentives to contract for administrative or program
services. In seeking possible solutions for this problem, we looked at
the JTPA approach (which allows expenditures on services that are
available ``off-the-shelf'' to be treated entirely as program costs),
but did not think that it provided an adequate solution. We thought
that too few of the service contracts under TANF would qualify for
simplified treatment on that basis.
We welcome comments on how to deal with this latter dilemma, as
well as comments on our overall approach to the definition of
administrative costs. We discussed this issue thoroughly
[[Page 62152]]
during our consultations, but this is a policy area where no single,
clear solution emerged.
How much State money must a State expend annually to meet the TANF MOE
requirement? (Sec. 273.1)
To ensure that States would continue to contribute their own money
towards meeting the needs of low-income families, the new section
409(a)(7) requires States to maintain a certain level of spending on
programs on behalf of eligible families. If a State does not meet the
``TANF MOE'' requirements in any fiscal year, then it faces a penalty
for a following fiscal year. The penalty consists of a dollar-for-
dollar reduction in a State's adjusted SFAG.
In order for States to know their specific TANF MOE requirements,
they must understand the terms used in amended section 409(a)(7).
Therefore, we address each of these terms in this proposed rule.
Historic State Expenditures
Each State's TANF MOE requirement reflects its historic spending on
welfare programs. Section 409(a)(7)(B)(iii) provides two ways to
calculate a State's FY 1994 expenditures. It then establishes that the
lesser amount be used for determining a State's MOE requirement.
The first calculation, at section 409(a)(7)(B)(iii)(I), defines
historic State expenditures as the State's FY 1994 share of
expenditures for the AFDC, EA, AFDC-related child care, transitional
child care, at-risk child care and JOBS programs (including
expenditures for administration and systems operations). An alternative
calculation appears in section 409(a)(7)(B)(iii)(II).
After examining the formula for the alternative method, we
determined that the amounts resulting from this calculation would
always equal or exceed the amount calculated under the first, simpler
method. Therefore, we calculated the historic State expenditures based
on the first method.
Adjusting A State's TANF MOE Level
The statute authorizes an adjustment to a State's TANF MOE level.
If a Tribe or a consortium of Tribes residing in the State submits a
plan to operate its own TANF program, and we approve this plan, then
that State's MOE requirement will be reduced beginning with the
effective date of the approved Tribal plan. Section 409(a)(7)(B)(iii)
excludes from the TANF MOE calculation any IV-A expenditures made by
the State for FY 1994 on behalf of individuals covered by an approved
Tribal TANF plan. Because TANF funding for Tribes may also reflect a
State's IV-F (JOBS) expenditures, we believe that it is appropriate
that State TANF MOE levels be reduced for IV-A and IV-F expenditures.
Under our proposed rules, we will determine the percentage
reduction in the SFAG due to Tribal programs and apply the same
percentage reduction to the State's TANF MOE requirement. The State's
revised TANF MOE level applies for each fiscal year covered by the
approved Tribal TANF plan(s).
For example, if the amount of the Tribal Family Assistance Grant
represents ten percent of the State's SFAG, then the State's MOE
requirement will be reduced by ten percent. This approach provides a
consistent method for determining both the reduction in the State's
SFAG and required MOE level.
Applicable Percentage
The TANF MOE rules do not require that a State spend the same
annual amount as it did in FY 1994. (States must spend 100 percent of
the amount spent in FY 1994 to access the Contingency Fund under
section 403(b). See part 274, subpart B, for a discussion of the
Contingency Fund requirements.) Rather, States must maintain the
``applicable percentage'' of their FY 1994 expenditures.
Under section 409(a)(7)(B)(ii), if any State fails to meet the
minimum work program participation rate requirements in the fiscal
year, then it must spend at least 80 percent of its FY 1994 spending
level. If a State meets the minimum work participation rate
requirements, then the ``applicable percentage'' is 75 percent of its
FY 1994 spending level for the year. The dollar amount representing 75
and 80 percent of the FY 1994 State expenditures is known as the TANF
MOE level.
States must know the amount of their FY 1994 total expenditures and
calculate the figures that represent 75 and 80 percent of those
expenditures.
Data
Section 5506(f) of Pub. L. 105-33 clarifies the source and date of
data to use to calculate FY 1994 State expenditures. We used the same
data sources. We calculated each State's total FY 1994 expenditures and
TANF MOE levels by using data on the State share of expenditures for
AFDC benefits and administration, EA, FAMIS, AFDC/JOBS Child Care, and
Transitional and At-Risk Child Care programs reported by States on form
ACF-231 as of April 28, 1995, as well as the State share of JOBS
expenditures reported by each State on form ACF-331 as of April 28,
1995. These are the same State expenditure data sources that we used to
calculate the SFAGs under TANF.
We transmitted tables showing FY 1994 spending amounts and MOE
levels to the States via Program Instruction Number TANF-ACF-PI-96-2,
dated December 6, 1996. This Program Instruction, as well as a separate
MOE table listing FY 1994 State expenditures and MOE levels for each of
the 50 States and the District of Columbia, are available on the world
wide web at http://www.acf.dhhs.gov/.
We also determined FY 1994 spending and MOE levels for each of the
Territories. We transmitted this information to the Territories via our
Regional Administrators in San Francisco and New York.
For IV-A expenditures for Puerto Rico, we used the Financial Report
Form ACF-231 as of April 28, 995. However, for Guam and the Virgin
Islands, we did not use the Territories' share of expenditures as
submitted on the ACF-231 because their share of expenditures exceeded
the amounts for which Federal reimbursement was available (due to the
statutory ceiling on funding for each, under section 1108). If we used
the expenditures reported on form ACF-231, then the MOE levels for both
Guam and the Virgin Islands would be inordinately high. We believe that
Congress' intent in establishing the historic spending level was to
assure that States and Territories contribute to the specified programs
at least 80 percent (or 75 percent) of the amounts they were required
to expend to match Federal funds in FY 1994. Thus, for Guam and the
Virgin Islands, we used the share of expenditures that corresponded to
the amount on the Federal grant awards for FY 1994, i.e., the
Territories' share of AFDC benefit payments (25 percent), EA (50
percent), administration (50 percent), and Child Care (25 percent).
The Territories' funds for the JOBS program were not subject to the
ceiling amounts given in section 1108. They are subject to an
appropriation limit, but the Territorial expenditures did not exceed
this amount. Therefore, for JOBS, the Territories' MOE levels reflect
expenditures reported on the ACF-331 as of April 28, 1995.
In addition, for both IV-A (AFDC, EA, and child care) and JOBS,
Guam and the Virgin Islands (but not Puerto Rico) benefit from Pub. L.
96-205, as amended (48 U.S.C. 1469a). This law permits waiver of the
first $200,000 of the Territories' share of expenditures. Therefore,
for Guam and the Virgin Islands, we reduced the share they were
[[Page 62153]]
required to contribute, and thus their MOE amount, by $200,000.
FY 1997 MOE Level
Finally, we considered whether to require all States to meet the
full MOE level in FY 1997, the first year for the requirement. Because
States have until July 1, 1997, to implement the TANF program, many
States are not operating a TANF program for all of FY 1997.
We examined two alternative adjustments to FY 1997 TANF
requirements. First, we could require that all States meet 80 percent
(or 75 percent) of their full FY 1994 spending level, but count the
State portion of expenditures from AFDC, EA, and JOBS made in FY 1997
toward the State's MOE expenditures. Alternatively, we could prorate a
State's FY 1997 MOE level based on the date of TANF implementation.
Under this latter option, none of the expenditures from AFDC, EA, and
JOBS made in FY 1997 prior to implementation of the State's TANF
program count toward meeting the State's prorated MOE level. We
determined that the former option is less acceptable because it fails
to recognize the distinction between TANF and the AFDC and JOBS
programs. Therefore, we decided that proration of the FY 1997 MOE level
presented the most consistent and equitable approach.
Under the proposed rules, the State may prorate its TANF MOE level
for FY 1997 by taking the total FY 1994 State expenditures provided to
the State in Program Instruction Number TANF-ACF-PI-96-2, multiplying
that number by the number of days during FY 1997 that the State
operated a TANF program and dividing by 365. The State's TANF
implementation date is the date given in the Department's completion
letter to the State. The State must meet 80 percent (or 75 percent) of
the resulting amount.
What kinds of State expenditures count toward meeting a State's annual
MOE expenditure requirement? (Sec. 273.2)
Qualified State Expenditures
Section 409(a)(7)(B)(i) establishes the criteria for the
expenditure of State funds to count toward a State's TANF MOE level.
This critical provision has already engendered a number of inquiries as
States and organizations strive to meet the challenge of welfare
reform. While we are unable to discuss every potential use of State
funds, we do discuss the specific requirements that must be met and
address some of the examples that have come to our attention.
Congress wanted States to be active partners in the welfare reform
process. Thus, States must spend a substantial amount of their own
money on aid to needy families. While Congress gave States significant
flexibility in this area, it did establish a number of important
statutory restrictions on which State expenditures qualify as MOE.
Section 409(a)(7)(B)(i) defines ``qualified State expenditures'' to
include certain expenditures by the State under all State programs. We
interpret ``all State programs'' to mean the State's family assistance
(TANF) program plus any other separate State program that assists
``eligible families'' and provides appropriate services or benefits.
Thus, States could structure the use of State expenditures for MOE
purposes in three ways. The first would be a TANF program funded by
expenditures of commingled State funds and Federal grant funds. The
second would be a TANF program in which a State segregates its Federal
grant from its State funds.
A State might choose to operate a ``segregated'' TANF program
because certain limitations apply to the program funded with Federal
funds that would not apply to a TANF program funded wholly with State
funds, e.g., time limitations and certain alien restrictions.
Third, States could use State funds in a State program, separate
from TANF, but for the types of activities listed in the statute, e.g.,
cash assistance, child care assistance and education activities.
In order for the expenditure of State funds under State programs to
count toward meeting the State's TANF MOE, the expenditures must: (1)
be made to or on behalf of an eligible family; (2) provide assistance
to eligible families in one or more of the forms listed in the statute
under section 409(a)(7)(B)(i)(I); and (3) comply with all other
requirements and limitations set forth in this part of the proposed
regulations, including those set forth in Secs. 273.5 and 273.6.
Eligible Families
Section 409(a)(7)(B)(i)(I) provides that State funds under all
State programs must be spent on behalf of eligible families to count
toward the State's MOE. Section 409(a)(7)(B)(i)(IV) further clarifies
that an eligible family means a family eligible for assistance ``under
the State program funded under this part.'' We have interpreted ``under
the State program funded under this part'' to mean the State's TANF
program.
Thus, we propose that, in order to be considered an ``eligible
family'' for MOE purposes, a family must have a child living with a
custodial parent or other adult caretaker relative (or consist of a
pregnant individual) and be financially needy under the TANF income and
resource standards established by the State under its TANF plan. This
definition would include all families funded under TANF, including
certain alien families or time-limited families who cannot be served
with Federal funds, but who are being served in a segregated State TANF
program. (We discuss this alien limitation in detail further on in this
section.)
If a family meets these criteria, then the family may be considered
an ``eligible family'' for purpose of counting State-funded assistance
for any of the forms listed in section 409(a)(7)(B)(i)(I) as MOE. The
family does not have to be receiving TANF, but instead could be
receiving assistance from a non-TANF State program. The expenditures to
provide these services under all State programs may count toward the
MOE requirement, provided the expenditures also meet all other
requirements and limitations set forth in part 273.
A State is free to define who is a member of the family for TANF
purposes and may use this same definition for MOE purposes. For
example, it could choose to assist other family members, such as non-
custodial parents, who might significantly enhance the family's ability
to achieve economic self-support and self-sufficiency. By including
such individuals within its definitions of ``eligible family,'' a State
could provide them with services through TANF or a separate State
program. Non-custodial parents could then engage in activities such as
work or educational activities, counseling, or parenting and money
management classes.
We expect States to define ``child'' consistent either with the
``minor child'' definition given in section 419 or some other
definition applicable under State law.
The definition of ``eligible family'' expressly includes families
that ``would be eligible for such assistance but for the application of
section 408(a)(7) of this Act and families of aliens lawfully present
in the U.S. that would be eligible for such assistance but for the
application of title IV of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.''
Under section 408(a)(7), States may not use Federal funds to
provide TANF assistance to a family that includes an adult who has
received federally-funded assistance for a total of 60 months.
Therefore, if a family becomes ineligible for Federal assistance under
the TANF program due to this time limit, but still
[[Page 62154]]
meets the definition of eligible family, then this family may be
considered an eligible family for MOE purposes.
Title IV of PRWORA prohibits certain aliens from receiving certain
Federal assistance. Section 401 of PRWORA prohibits all aliens who are
not qualified aliens from receiving Federal public benefits, with
exceptions. The definition of ``qualified aliens,'' at Sec. 270.30,
refers to section 431 of PRWORA, as amended by the Illegal Immigration
Reform and Immigrant Responsibility Act of 1996 (Pub. L. 104-208). It
includes, among other alien categories, permanent residents, refugees
and asylees. Section 403 of PRWORA prohibits qualified aliens (with
exceptions) who arrive on or after August 22, 1996, i.e., ``newly-
arrived aliens,'' from receiving, for five years after entry, Federal
means-tested public benefits, which would include the federally-funded
TANF program benefits, during their first five years in the country.
Section 402(b) of PRWORA allows States to determine whether to provide
TANF assistance at all to certain qualified aliens, while other
categories of qualified aliens cannot be denied benefits on the basis
of their immigration status. Given these limitations, a State could
choose to provide Federal TANF assistance to qualified aliens who enter
before August 22, 1996, and, for those who enter on or after enactment,
after the expiration of the five-year time-bar. The State, however,
would still be precluded from providing Federal TANF assistance to non-
qualified aliens and to newly-arrived qualified aliens who have been in
the country less than five years, except for those who are exempted
from the limitations.
Under certain circumstances, however, State expenditures for aliens
who are precluded from receiving Federal TANF assistance may count
towards the State's TANF MOE. The family must have a child living with
a parent or other adult relative (or must be a pregnant individual),
and the family must be financially needy under the State's TANF income
and resource standards. The expenditures must be made on one of the
statutorily permitted activities enumerated in section
409(a)(7)(B)(i)(I) and meet all other requirements and limitations set
forth in subpart A of this part.
Section 5506(d) of Pub. L. 105-33 clarifies that an eligible
family, for TANF MOE purposes, includes legal aliens who are no longer
eligible for Federal assistance due to title IV of PRWORA. The alien
restrictions that apply to State-funded programs are found at title IV,
section 411 of PRWORA.
Section 411(d) addresses the treatment of illegal aliens. It
permits a State to provide State or local benefits to illegal aliens if
the State enacted a law after August 22, 1996, which affirmatively
provides for such eligibility. Thus, we conclude that if a State
decides to provide assistance to illegal aliens ``in a State program
funded under this Part,'' per title IV, section 411(d), such assistance
may count toward the State's TANF MOE.
There is another complication in this policy area. Section 411(a)
of PRWORA prohibits States from providing State or local public
benefits, with exceptions, to aliens who are not qualified aliens, non-
immigrants, or aliens who are paroled into the U.S. for less than one
year. There are a handful of categories of legal aliens, e.g.,
temporary residents under the Immigration Reform and Control Act
(IRCA), aliens with temporary protected status, and aliens in deferred
action status, who are prohibited from receiving State or local public
benefits under this provision. Thus, expenditures on assistance for
legal aliens who are not qualified aliens, non-immigrants, or aliens
paroled in for less than one year may not count towards a State's TANF
MOE.
In addition, States may transfer funds to Tribal grantees to assist
families eligible under an approved Tribal TANF plan. However, if the
eligibility criteria under the Tribal TANF program are broader than
under the State's TANF plan, then all expenditures of State funds
within the Tribal TANF program might not be countable as MOE. Only
expenditures used to assist an ``eligible family'' under the State
program count. States must ensure that State funds are expended on
behalf of families eligible under the State's income and resource
standards.
Types of Activities
Section 409(a)(7)(B)(i)(I)(aa)-(ee) specifies that State
expenditures on eligible families for the following types of assistance
are ``qualified expenditures'' for MOE purposes:
Cash assistance (see subsequent discussion on this);
Child care assistance (see the discussion at Sec. 273.3);
Education activities designed to increase self-
sufficiency, job training, and work (note the specific exception at
Sec. 273.4);
Any other use of funds allowable under section 404(a)(1)
(see subsequent discussion on this); and
Associated administrative costs (subject to a 15 percent
cap, as discussed subsequently).
For MOE purposes, ``assistance'' may take the form of cash,
certificates, vouchers or other forms of disbursement, as determined by
the State. Assistance may also be ongoing, short-term, or one-time
only. The definition of assistance at Sec. 270.30 does not limit the
nature of State-funded aid provided to eligible families under TANF or
separate State programs. We proposed that definition of ``assistance''
for the sole purpose of establishing when critical provisions in the
statute using this term apply to States providing support to families
under TANF.
Thus, State expenditures for activities such as pre-pregnancy
family planning services, teen parenting programs, youth and family
counseling or support services, job training or employment services, or
forms of crisis assistance that meet the purposes of the program may
also count toward meeting a State's MOE requirement. However, we remind
States that such expenditures are subject to other limitations and
restrictions under Secs. 273.5 and 273.6.
We address the additional limitations and restrictions in the
discussion that follows. We also discuss some specific case situations
that have come to our attention. We invite comment on these and other
examples of aid for eligible families that States believe could
qualify.
Cash Assistance
This category includes cash payments, including electronic benefit
transfers, to meet basic needs; assistance with work-related
transportation costs; clothing allowances; and any child support
collected on behalf of an eligible child that the State passes through
to the eligible family. Section 5506(b) of Pub. L. 105-33 amended
section 409(a)(7)(B)(i)(I)(aa) to expressly allow assigned child
support collected by the State and distributed to the family to count
toward a State's TANF MOE so long as the amount sent to the family is
disregarded in determining the family's eligibility and amount of
assistance.
Cash assistance also includes State expenditures on behalf of
eligible families as part of a State's Earned Income Tax Credit (EITC)
program. Under a State EITC program, we have determined that only the
EITC cash payments actually sent to eligible families are countable as
MOE. Also, in a fiscal year, States that had EITC programs in FY 1995
may count total cash payments sent to eligible families
[[Page 62155]]
only to the extent that these payments exceed the cash payments sent in
FY 1995 (see Sec. 273.5).
Any Other Use Of Funds Allowable Under Section 404(a)(1)
Section 404(a)(1) provides that TANF funds may be used ``in any
manner that is reasonably calculated to accomplish the purpose of the
TANF program, including to provide low income households with
assistance in meeting home heating and cooling costs.'' Section 270.20
of these proposed rules lists the purposes of the TANF program.
Medical and Substance Abuse Services
The statute does not prohibit the expenditure of State MOE funds on
medical expenditures. Therefore, States may use their own funds to
provide treatment services to individuals seeking to overcome drug and/
or alcohol abuse when these services assist in accomplishing the
purposes of the program. This policy would also comport with both the
Administration's support for drug rehabilitation services and the
Congressional call for State flexibility in the operation of welfare
programs.
We remind States that such expenditures must be consistent with the
purposes of the program and made to or on behalf of eligible families.
We also remind States that section 408(a)(6) bars the use of Federal
TANF funds for medical services. Therefore, States using MOE funds to
provide medical treatment services may not commingle State and Federal
funds. In addition, any State expenditures on medical services that are
used to obtain Federal matching funds under the Medicaid program would
not count as MOE. (Refer to the discussion under Sec. 273.6.) Finally,
State expenditures on medical and substance abuse services may only
count as MOE subject to the limitations set forth in Sec. 273.5.
Juvenile Justice
State funds used to pay the costs of benefits or services provided
to children in the juvenile justice system and previously matched under
the EA program do not count toward MOE. More specifically, as juvenile
justice services do not meet any of the purposes of the TANF program,
they are not an allowable use of funds under section 404(a)(1).
While some States may expend their Federal TANF funds for this
purpose, under section 404(a)(2), the definition of ``qualified State
expenditures,'' for MOE purposes, does not include the reference to
section 404(a)(2). Therefore, we conclude that Congress did not intend
to automatically qualify all previously authorized IV-A expenditures to
count as MOE. States that expend Federal funds for this purpose, under
section 404(a)(2), must not commingle State funds with Federal funds if
they wish the State funds to count as MOE.
State ``Rainy Day'' Funds
Finally, some States have inquired whether State funds allocated or
set aside during a fiscal year as a ``rainy day'' fund, to act as a
hedge against any economic downturn, could count as MOE. While we
understand State intent, these allocations or set-asides do not qualify
as expenditures. States must actually expend funds on behalf of
eligible families during the fiscal year for expenditures to count
toward the State's MOE for that fiscal year. (However, under section
404(e), States may reserve Federal TANF funds from any fiscal year for
use in any other fiscal year.)
Administrative Costs
Administrative expenditures may count toward a State's MOE, but
only to the extent that they do not exceed 15 percent of the total
amount of qualified State expenditures for the fiscal year. This
limitation is the same as the limit for TANF administrative
expenditures. Therefore, we propose that the State apply the same
definition of administrative costs for MOE purposes as for TANF.
Section 404(b)(2) states that expenditures of Federal funds with
respect to information technology and computerization needed for
tracking or monitoring activities are not subject to the 15 percent
TANF limit. We are providing the same flexibility with respect to the
administrative cost cap on MOE expenditures. Thus, the proposed rules
do not count information technology and computerization expenditures
under the administrative cost cap and allows such expenditures to count
toward meeting a State's MOE requirement without being limited by the
15 percent cap on administrative expenditures.
When do child care expenditures count? (Sec. 273.3)
There are certain restrictions on the child care expenditures that
may count for TANF MOE purposes. First, only child care expenditures
used to assist eligible families under the State's TANF criteria count
toward the State's TANF MOE. As explained earlier, eligible families
means families that have a child living with a parent or other adult
caretaker relative (or consisting of a pregnant woman) and that are
financially needy per the TANF income and resource standards
established by the state under its TANF plan. Thus, not all State
expenditures to provide child care services would necessarily qualify
for TANF MOE purposes, particularly if the eligibility criteria for the
child care services are broader than the State's TANF criteria, e.g.,
under the Child Care Development Fund (CCDF).
Second, section 409(a)(7)(B)(iv) establishes four general
restrictions on State expenditures. (These restrictions are listed in
Sec. 273.6.) Two of the restrictions apply to child care expenditures:
subsections 409(a)(7)(B)(iv)(IV) and 409(a)(7)(B)(iv)(I).
Subsection 409(a)(7)(B)(iv)(IV) excludes any State funds expended
as a condition of receiving Federal funds under other Federal programs
from counting toward a State's TANF MOE. However, this subsection also
provides an exception to this restriction. The exception applies to the
CCDF Matching Fund (i.e., the State's CCDF MOE and the State's share of
matching funds). State child care expenditures used to meet the child
care MOE requirement or to receive Federal matching funds may also
count toward meeting the State's TANF MOE requirement if the
expenditures were made on behalf of members of an eligible family.
But, subsection IV limits the amount of the above-mentioned State
child care expenditures that may count for TANF MOE purposes to the
State's share of expenditures in FY 1994 or FY 1995, whichever is
greater, for the programs described in section 418(a)(1)(A). These are
the former title IV-A child care programs, i.e., the AFDC/JOBS child
care, transitional child care, and at-risk child care programs. A
State's child care MOE amount (for purposes of qualifying for child
care matching funds) is also based on its expenditures for title IV-A
child care in FY 1994 or FY 1995, whichever is greater. Hence, the
amount of State child care expenditures used to meet the child care MOE
requirement and to receive Federal Matching Funds that may count for
TANF MOE purposes is limited to the amount of the child care MOE
requirement for the State under section 418(a)(2)(C).
If a State has additional State child care expenditures, i.e.,
expenditures which have not been used toward meeting the child care MOE
requirement or to receive Federal matching funds, these expenditures
may count toward the State's TANF MOE provided the expenditures meet
all other requirements and limitations set forth in subpart A of this
part. We concluded that subsection IV does not limit the amount of such
additional
[[Page 62156]]
child care expenditures which may count for TANF MOE purposes.
Subsection 409(a)(7)(B)(iv)(I) excludes any expenditures that come
from amounts made available by the Federal government. Therefore,
Federal funds transferred from the TANF program to the Child Care and
Development Block Grant (also known as the Discretionary Fund) would
not count toward MOE, nor would Federal funds received under CCDF.
When do educational expenditures count? (Sec. 273.4)
Only expenditures on educational services or activities that are
targeted to eligible families to increase self-sufficiency, job
training, and work may count toward a State's MOE. The statute excludes
educational services or activities that are generally available,
including through the public education system. The conference report
confirms this exclusion. In H. Rept. 104-725, page 277, the conferees
agreed to exclude ``any expenditure for public education in the State
other than expenditures for services or assistance to a member of an
eligible family that is not generally available to other persons.''
Expenditures on special services that are targeted to an ``eligible
family'' and are not generally available to other residents of the
State may count. These could include contracted educational services or
activities, such as special classes for teen parents in high schools or
other settings; special classes in English as a second language for
legal immigrants; special classes in remedial education to achieve
basic literacy; special classes that lead to a certificate of high
school equivalency (GED); or pre-employment or job-readiness
activities.
We also note that expenditures on supportive services, such as
transportation, to assist a member of an eligible family in accessing
educational activities may also count toward a State's MOE, either as
cash assistance or another type of aid consistent with the purposes of
the Act. (See Secs. 273.5 and 273.6 for other general restrictions on
these expenditures.)
When do expenditures in separate State programs count? (Sec. 273.5)
Section 409(a)(7)(B)(i)(II) establishes limits on the amount of
expenditures that may count when the MOE expenditures are for
activities under separate State or local programs. The heading for the
provisions under this section indicates that ``transfers from other
State and local programs'' must be excluded from consideration toward a
State's MOE. We received numerous questions about this language. We do
not believe that the language intended to convey merely a literal or
physical transfer of funds. Instead, we believe that Congress wanted to
prevent States from substituting existing expenditures in these outside
programs for cash welfare and related assistance to needy families and
claiming them as expenditures for MOE purposes. Therefore, section
409(a)(7)(B)(i)(II)(aa) provides that the money spent under State or
local programs may count as MOE only to the extent that the
expenditures exceed the amount expended under such programs in the
fiscal year most recently ending before the date of enactment (August
22, 1996). Thus, States may count only additional or new expenditures,
i.e., expenditures above FY 1995 levels.
Section 409(a)(7)(B)(i)(II)(bb) provides what may appear to be an
alternative limitation. We believe that this provision was intended as
an exception to the limitation under (aa). Under provision (bb), State
expenditures under any State or local program during a fiscal year may
count toward a State's MOE to the extent that the State is entitled to
a payment under former section 403 as in effect before the date of
enactment with respect to the expenditures. We interpret this to mean
that State funds expended under separate State/local programs that had
been previously authorized and allowable under the former AFDC/EA/JOBS
programs in effect as of August 21, 1996, may have all such
expenditures count toward the State's MOE. In other words, the limit
under (aa) does not apply; there is no requirement that these
expenditures be additional or new expenditures, above FY 1995 levels.
What kinds of expenditures do not count? (Sec. 273.6)
As previously discussed, expenditures under State programs (TANF
and separate State programs) do not count if they are not made on
behalf of eligible families.
There are also specific statutory requirements that affect the use
of State funds under a State's TANF program. The specific requirements
that apply depend on whether the expenditures meet the definition of
assistance under Sec. 270.30; the language used in each TANF provision
or in a related provision elsewhere in the statute; and the manner in
which a State structures its TANF program and accounts. (None of the
TANF program requirements directly apply to eligible families served in
separate State programs.)
Provisions in the statute that use the terms ``under the program,''
``under the program funded under this part,'' and ``under the State
program funded under this part'' apply to the State's TANF program,
regardless of the funding source. That is, they apply to segregated
Federal programs, commingled State/Federal programs, and segregated
State programs. Thus, all families receiving TANF assistance (whether
funded with State or Federal funds) must meet work participation and
child support requirements.
Provisions pertaining solely to the use of Federal funds would not
apply to families assisted under TANF with State-only funds.
Consequently, if State funds are segregated from Federal funds, State
expenditures on ``assistance'' must comply with all the rules
pertaining generally to the State's TANF program, e.g., work and child
support requirements. However, they are not subject to requirements
that pertain only to the use of Federal funds.
These requirements are found in the provisions in the statute using
the term ``grant,'' or ``amounts attributable to funds provided by the
Federal government.'' This language refers to the Federal funds
provided to the State under section 403. Therefore, those provisions
affect only the use of Federal TANF funds, unless the State commingles
its money with Federal TANF funds. If commingled, Federal and State
funds become subject to the same rules. Thus, commingling of State and
Federal funds can reduce the total amount of flexibility available to
the State in its use of both Federal and State funds.
The provisions governing the use of Federal TANF funds are
generally found in sections 404 and 408 of the Act and section 115 of
PRWORA. The proposed regulations at Sec. 273.11 provide additional
requirements regarding allowable uses of Federal TANF funds.
The statute also provides several general restrictions on MOE
expenditures. Pursuant to section 409(a)(7)(B)(iv), the following types
of expenditures do not count: (1) expenditures of funds that originated
with the Federal government; (2) State funds expended for the Medicaid
program under title XIX of the Act; (3) any State funds used to match
Federal Welfare-to-Work funds provided under section 403(a)(5) of the
Act, as amended by sections 5001(a) (1) and (2) of Pub. L. 105-33; or
(4) expenditures that States make as a condition of receiving Federal
funds under other programs. See discussion of Sec. 273.3 for additional
information.
[[Page 62157]]
Section 5506(c) of Pub. L. 105-33 amends section 409(a)(7)(B)(i) by
adding another restriction under section 409(a)(7)(B)(i)(III). Pursuant
to section 409(a)(12), States must expend State funds equal to the
total reduction in the State's SFAG due to any penalties incurred.
Section 409(a)(7)(B)(i)(III) provides that such expenditures may not
count toward a State's TANF MOE. (See Sec. 274.50.)
TANF funds transferred to the Social Service Block Grant Program
under title XX of the Act or transferred to the Child Care and
Development Block Grant program (also known as the Discretionary Fund
within the Child Care and Development Fund) do not count toward meeting
a State's MOE requirement because of the first restriction under
409(a)(7)(b)(iv) that prohibits funds that originated from the Federal
government from being used for MOE purposes.
Finally, it is important to note that only State expenditures made
in the fiscal year for which TANF funds are awarded count toward
meeting the MOE requirement for that year. Therefore, expenditures made
in prior fiscal years or, in the case of FY 1997, expenditures made
prior to the date the State starts its TANF program do not count as
TANF MOE.
How will we determine the level of State expenditures? (Sec. 273.7)
Congress recognized that State contributions would play an
important role in making welfare reform a success. We are interested in
learning about the ways in which States help families move toward
economic self-support and self-sufficiency. We are particularly
interested in the types of services eligible families are receiving
through separate State programs or activities. We propose to use the
administrative avenues available to us to learn about expenditures
under separate State programs.
To help determine if States are meeting MOE requirements, we have
created a TANF Financial Report. The report will require the State to
specify expenditures under its TANF program and other separate State
programs that serve eligible families. Please refer to the description
of the TANF Financial Report under part 275 for additional information.
We are also proposing an annual addendum to the report for the
fourth quarter. The addendum will supplement information on separate
State programs that is captured only in a general fashion in the
quarterly report.
Thus, we propose that the annual addendum contain: (1) a
description of the specific State-funded program activities provided to
eligible families; (2) the program's statement of purpose (how the
program serves eligible families); (3) the definitions of each work
activity in which families in the program are participating; (4) a
statement whether the program/activity had been previously authorized
and allowable as of August 21, 1996 under former section 403; (5) the
FY 1995 State expenditures for each program/activity not so authorized;
(6) the total number of eligible families served by each program/
activity as of the end of the fiscal year; (7) the eligibility criteria
for families served under each program or activity; and (8) a
certification that each of the families served met the State's criteria
for ``eligible family.'' This information will enable us to understand
how separate State programs are serving needy families outside of the
TANF program and to report on those services to Congress.
What happens if a State fails to meet the TANF MOE requirement?
(Sec. 273.8)
Under section 409(a)(7)(A), if a State does not meet the TANF MOE
requirement, we will reduce the amount of the SFAG payable for the
following fiscal year on a dollar-for-dollar basis.
Section 5001(g) of Pub. L. 105-33 adds another penalty to section
409(a) for a State that receives a Welfare-to-Work formula grant
pursuant to section 403(a)(5)(A), as amended by section 5001(a)(1), but
fails to meet the TANF MOE requirement for the fiscal year. Under
section 409(a)(13), the amount of the State's SFAG will be reduced for
the following fiscal year by the amount of the Welfare-to-Work formula
grant paid to the State.
May a State avoid a TANF MOE penalty because of reasonable cause or
through corrective compliance? (Sec. 273.9)
Under section 409(b)(2), a State may not avoid a penalty for
failure to meet its TANF MOE requirement based on reasonable cause. In
addition, section 5506(m) of Pub. L. 105-33 amended section 409(c)(4)
to provide that a State may not avoid the penalty through a corrective
compliance plan.
Congress' decision not to provide for a reasonable cause exception
or corrective compliance in TANF MOE penalty cases indicates that
Congress viewed this requirement as critical. In short, the MOE
requirement is crucial to meeting the work and other objectives of the
Act.
Subpart B--What rules apply to the use of Federal funds?
What actions are to be taken against a State if it uses Federal TANF
funds in violation of the Act? (Sec. 273.10)
Section 409(a)(1) contains two penalties related to use of Federal
TANF funds (i.e., all Federal funds under section 403) in violation of
TANF program requirements. The first is a penalty in the amount of
funds that are used improperly, as found under the Single Audit Act. We
would reduce the SFAG payable to the State for the immediately
succeeding fiscal year quarter by the amount misused.
In addition, we would take a second penalty, equal to five percent
of the adjusted SFAG, if we find that a State has intentionally misused
funds. The criteria for ``intentional misuse'' is found at Sec. 273.12.
For both of these penalties, States may request that we consider
reasonable causes for not taking the penalty and may submit a
corrective compliance plan for correcting the violation.
What uses of Federal TANF funds are improper? (Sec. 273.11)
The statute contains many prohibitions and restrictions on the use
of Federal TANF funds. In determining if funds have been used ``in
violation of this part,'' States should particularly note the
prohibitions in section 408 of the Act and section 115 of PRWORA. These
sections provide that States must not use Federal TANF funds to provide
assistance to:
A family with an adult who has received assistance funded
with Federal TANF funds for 60 months (except for a family included in
the 20 percent hardship exemption);
A family without a minor child (or pregnant individual);
A family not assigning support rights;
An unmarried parent under 18, without a high school
diploma, who does not attend high school or equivalent training;
An unmarried parent under 18 not living in an adult-
supervised setting;
A fugitive felon and probation and parole violator;
A minor child absent from the home 45 days (or at State
option, 30-180 days);
For ten years, a person found to have fraudulently
misrepresented residence to obtain assistance; and
An individual convicted of certain drug-related offenses
unless the State has enacted a law to exempt such individuals from the
prohibition (refer to section 115 of PRWORA).
[[Page 62158]]
Also, States must not use Federal TANF funds for medical services,
except for pre-pregnancy family planning services. This prohibition
raised a number of concerns among States and advocates that are
discussed below as one of the clarifications on the use of Federal TANF
funds.
Section 404 also limits the use of Federal TANF funds. More
specifically, section 404(a)(1) provides that TANF funds may be used
``. . . in any manner that is reasonably calculated to accomplish the
purpose of this part, including to provide low income households with
assistance in meeting home heating and cooling costs. . . .''
Conversely, TANF funds cannot be used in a manner not reasonably
calculated to serve the purposes of the program.
In determining if an activity may be funded with TANF funds under
this provision, you should refer to the purposes described in section
401 and reiterated at Sec. 270.20. Also, you should be aware that the
specific prohibitions or restrictions in the statute (e.g., the
prohibitions in section 408) apply even if an activity seems otherwise
consistent with the purposes in section 404(a)(1).
In addition, section 404(a)(2), as amended by section 5503 of Pub.
L. 105-33, permits Federal TANF funds to be used ``in any manner that
the State was authorized to use amounts received under part A or F, as
such parts were in effect on September 30, 1995 or (at the option of
the State) August 21, 1996.'' We interpret this provision to cover
activities that are not permissible under section 404(a)(1), but were
included in a State's approved State AFDC plan, JOBS plan, or
Supportive Services Plan as of September 30, 1995, or, at State option,
August 21, 1996. An example of such an activity is Emergency Assistance
juvenile justice activities that were included in many State plans.
Under this provision, only those States whose approved AFDC State plans
included juvenile justice activities as of September 30, 1995, or, at
State option, August 21, 1996, may use Federal TANF funds for those
activities. Further, as with section 404(a)(1), this provision does not
permit Federal TANF funds to be used for any activity that is otherwise
prohibited or restricted under the statute.
States should also note that if they exceed the 15 percent limit on
administrative costs under section 404(b), we will consider any amount
of funds exceeding the limit to be misused funds. Likewise, we would
consider unauthorized or inappropriate transfers of TANF funds to be a
misuse of funds. We would consider any of the following transfers to be
inappropriate or unauthorized: transfers to any program except the
Child Care and Development Block Grant (also known as the Discretionary
Fund within the Child Care and Development Fund) or the Social Services
and Block Grant Program under title XX of the Social Security Act;
transfers to those two programs in excess of the 30 percent cap; and
transfers to SSBG in excess of the 10 percent cap.
OMB Circulars A-102 and A-87 also include restrictions and
prohibitions that limit the use of Federal TANF funds. The Department
previously promulgated A-102 (the common rule) in its regulations at
part 92 of title 45, ``Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments.''
All provisions in part 92 are applicable to the TANF program. TANF
is not one of the Block Grant programs exempt from the requirements of
part 92, as OMB has not taken action to exempt it. Rather, OMB has
determined that TANF should be subject to part 92. Section 417 does not
prevent us from applying the part 92 regulations to TANF because the
referenced requirements are not developed to enforce substantive
provisions under this part. We believe that Congress understood that
TANF, like other Federal grant programs, was subject to existing
appropriations, statutory and regulatory requirements regarding the
general administration of grants, notwithstanding section 417. Section
417 was not meant to invalidate other requirements that Congress and
Federal agencies, primarily OMB, have put in place to assure that
Federal grant funds are properly administered or to inhibit Federal
agencies from fulfilling their financial management responsibilities in
managing their programs.
By reference, part 92 also includes A-87, the ``Cost Principles for
State, Local and Indian Tribal Governments,'' the basic guidelines for
Federal awards. These guidelines provide, in part, that an allowable
cost must be necessary and reasonable for the proper and efficient
administration of a Federal grant program, and authorized or not
prohibited under State or local laws or regulations.
A-87 also includes some specific prohibitions on the use of Federal
funds generally that apply to Federal TANF funds. For example, A-87
prohibits the use of Federal funds for alcoholic beverages, bad debts,
and the salaries and expenses of the Office of the Governor.
Clarifications of Use of Federal TANF Funds--Substance Abuse Services
In our consultations, we received several inquiries regarding the
use of Federal TANF funds for substance abuse treatment, i.e.,
treatment for alcohol and drug abuse. In light of the prohibition on
the use of Federal TANF funds for ``medical services, except for pre-
pregnancy family planning activities,'' we held discussions with other
Federal agencies and learned that in many, but not all instances, the
treatment of alcohol and drug abuse involves not just ``medical
services,'' but other kinds of social and support services as well.
Allowing States to use Federal TANF funds for substance abuse
treatment is programmatically sound since it may help clients make
successful transitions to work and provide for a stable home
environment for TANF children. Accordingly, we are proposing a policy
that permits States to use Federal TANF funds for drug and alcohol
abuse treatment services to the extent that such services are not
medical. States will have to look at the range of services offered and
differentiate between those that are medical and those that are not. In
short, States cannot use Federal TANF funds for services that the State
identifies as medical; they may only use Federal funds used for
services that are non-medical.
Clarification of the Use of Federal TANF Funds for Construction and
Purchase of Facilities
The Comptroller General of the United States has prohibited the use
of Federal funds for the construction or purchase of facilities or
buildings unless there is explicit statutory authority permitting
Federal grant funds to be used for this purpose. Since the statute is
silent on this, States must not use Federal TANF funds for construction
or the purchase of facilities or buildings.
Clarification of the Use of Federal TANF Funds as State Match for Other
Federal Grant Programs
Federal TANF funds under section 403(a) may be used to match other
Federal grant programs if authorized under the statute of the grant
program. However, these funds are still subject to the TANF program
requirements and must be used in accordance with the purposes of the
TANF program and with these proposed regulations.
Clarification of the Use of Federal TANF Funds to Add to Program Income
We have received a number of inquiries about whether or not TANF
funds may be used to generate program income. An example of program
income
[[Page 62159]]
is the income a State earns if it sells another State a training
curricula that it has developed, in whole or mostly, with Federal TANF
funds.
States may generate program income to defray costs of the program.
Under 45 CFR 92.25, there are several options for how this program
income may be treated. For the TANF program, in order to give States
flexibility in their use of TANF funds, we are proposing to permit
States to add to their TANF grant program income that has been earned
by the State. States must use such program income for the purposes of
the TANF program and for allowable TANF activities. We will not require
States to report on the amount of program income earned, but they must
keep on file financial records on program income earned and the
purposes for which it is used in the event of an audit or review.
How will we determine if a State intentionally misused Federal TANF
funds? (Sec. 273.12)
To determine if funds have been intentionally misused, we will
require the State to demonstrate to our satisfaction that TANF funds
were spent for purposes that a reasonable person would consider to be
within the purposes of the TANF program. Funds will also be considered
intentionally misused if there is documentation, such as Federal
guidance or policy instructions, that provides that funds must not be
used for such purposes, or if the State misuses the funds after
receiving notification from us that such use is not allowable.
What types of activities are subject to the administrative cost limit
on Federal TANF grants? (Sec. 273.13)
Section 404 of the Act sets forth the various ways in which a State
may expend its Federal TANF grant under section 403. As a general rule,
under section 404(b)(1), only 15 percent of a State's Federal fiscal
year grant may consist of administrative expenditures. This limit is
reached in the quarter in which a State's administrative expenditures,
which may be made over one or more fiscal years for each fiscal year
grant, equal 15 percent of the fiscal year grant.
For the purpose of the 15 percent limit, State expenditures on
information technology and computerization necessary for tracking or
monitoring cases covered by the TANF program do not count. But
remaining of particular interest to our State partners and other
interested parties is the definition of the costs that are included as
administrative costs. This information is critical to State planning
for welfare reform.
In this proposed rule, the term ``administrative costs'' will
include only those expenditures that are subject to the 15 percent
limit in section 404(b). Expenditures for information technology and
computerization necessary for tracking and monitoring and other
expenditures, that have traditionally been considered ``administrative
costs'' but that are outside of the 15 percent limit, are referred to
as ``administrative costs outside of the 15 percent limit.''
We include our proposed definition of ``administrative costs'' at
Sec. 273.0(b). In the preamble for Sec. 273.0, we include a detailed
explanation of the proposal.
Pursuant to section 404(d), States may transfer up to 30 percent of
each fiscal year's SFAG to the Child Care and Development Block Grant
Program (also known as the Discretionary Fund of the Child Care and
Development Fund) and the Social Services Block Grant Program under
title XX of the Act. All 30 percent may be transferred to CCDBG, but no
more than ten percent can be transferred to SSBG. As transferred funds
must then be treated as if they were funds appropriated to CCDBG and
title XX, and not as TANF funds, we will reduce the total amount of
TANF funds available for administrative costs by the total amount of
any such transfers. The 15 percent ceiling applies to each fiscal
year's adjusted SFAG.
If a State's administrative costs exceed the 15 percent limit, the
penalty for misuse of funds will apply. The penalty will be in the
amount spent on administrative costs in excess of 15 percent. We will
take an additional penalty in the amount of five percent of the
adjusted SFAG if we find that a State has intentionally exceeded the 15
percent limit.
States must allocate costs to proper programs. Under the Federal
Appropriations Law, grantees must use funds in accordance with the
purpose for which they were appropriated. In addition, as stated
previously, the grants administration regulations at part 92, and OMB
Circular A-87, ``Cost Principles for State, Local, and Indian Tribal
Governments'' apply to the TANF program. A-87, in particular,
establishes the procedures and rules applicable to the allocation of
costs among programs and the allowability of costs under Federal grant
programs such as TANF.
Subpart C--What Rules Apply to Individual Development Accounts?
What definitions apply to Individual Development Accounts (IDAs)?
(Sec. 273.20)
An IDA is defined as an account established by or for an individual
who is eligible for TANF assistance to allow the individual to
accumulate funds for specific purposes. A number of other terms used in
discussing IDAs are also defined.
May a State use the TANF grant to fund IDAs? (Sec. 273.21)
Section 404(h) of PRWORA gives States the option to fund IDAs with
TANF funds for individuals who are eligible for TANF assistance.
Are there any restrictions on IDA funds? (Sec. 273.22)
IDAs are similar to savings accounts and enable recipients to save
earned income for certain, specified, significant items. Individuals
may spend IDA funds only to purchase a home, pay for a college
education, or start a business.
How does a State prevent a recipient from using the IDA account for
unqualified purposes? (Sec. 273.23)
Money in an IDA account will not affect a recipient's eligibility
for assistance. Withdrawals from the IDA should be paid directly to a
college or university, to a bank, savings and loan institution, or to
an individual selling a home or to a special account if the recipient
is starting a business. Thus, IDAs may provide an incentive for
recipients to find jobs and use their earned income to save for the
future.
Section 404(h) authorizes the Secretary to establish regulations to
ensure that individuals do not withdraw funds held in an IDA except for
one or more of the above qualified purposes.
In our research, we found several States had established Individual
Development Accounts under their Welfare Reform Demonstration Projects
and subsequently transferred those provisions to their TANF programs.
Each State had designed its own procedures for preventing withdrawals
or penalizing recipients who withdrew funds from their IDAs for
unauthorized purposes. For example, several States count a withdrawal
for a non-qualified purpose as earned income in the month of withdrawal
unless the funds were already counted as earned income. Other States
treat such withdrawals against a family's resource limit. Still another
State calculates a period of ineligibility using a complex formula.
[[Page 62160]]
With this in mind, we did not feel that it was necessary to be
overly prescriptive in mandating how States ensure that individuals do
not make unauthorized withdrawals from IDA accounts. In keeping with
the intent of PRWORA, we have tried to give States maximum flexibility
to establish procedures that ensure that only qualified withdrawals are
made.
In addition, section 404(h)(5)(D) gives the Secretary the authority
to determine whether or not a business contravenes law or public
policy. We have decided that we should base our determination on the
business's compliance with State law or policies. Our proposal will
allow States maximum flexibility in setting up these programs, while
assuring that a business established by a needy family meets State
requirements.
We have incorporated statutory provisions in the regulations for
the reader's convenience.
E. Part 274--Other Accountability Provisions
Subpart A--What Specific Rules Apply for Other Program Penalties?
What definitions apply to this part? (Sec. 274.0)
This section cross-references the general TANF regulatory
definitions established under part 270.
What restrictions apply to the length of time Federal TANF assistance
may be provided? (Sec. 274.1)
Under the former AFDC program, families could receive assistance as
long as necessary, if they continued to meet program eligibility rules.
Under the TANF program, Congress established a maximum length of time
in which a family may receive assistance funded by Federal funds.
Sections 408(a)(1)(B) and 408(a)(7) stipulate that States may not
use Federal funds to provide assistance to a family that includes an
adult who has received assistance for more than five years. Therefore,
when a parent or other adult caretaker relative of a minor child
applies for and receives federally-funded assistance under the State's
TANF program on behalf of him/herself and his/her family, Federal
funding of that assistance may not last longer than five years.
(Certain exceptions are covered later in the discussion of this
section.)
As discussed earlier in this preamble (e.g., at Sec. 271.22), we
are concerned that States might define eligibility in such a way as to
avoid the time limits (i.e., by converting cases to be child-only
cases). Thus, under this section, we would prohibit States from
excluding adults from their definition of families for the purpose of
avoiding this penalty, and we would require annual reporting of the
number of such families excluded (along with the basis for excluding
them). Further, if we determine that States were defining ``families
that include an adult'' so as to avoid a time-limit penalty, we would
add the child-only cases back and recalculate the number of cases over
the limit. We would determine whether a State was subject to a penalty
based on this recalculation.
The five-year limit on Federal funding is calculated as a
cumulative total of 60 months. Section 408(a)(7)(B) clarifies that the
State must disregard any month for which assistance has been provided
to an individual who is a minor child who is not the head of a
household or married to the head of a household. However, any month
when a pregnant minor or minor parent is the head-of-household or
married to the head-of-household does count toward the five-year limit.
The five-year limitation on Federal funding also disregards any months
that an adult received assistance while living in Indian country (as
defined by section 1151 of title 18, United States Code) or in an
Alaska Native Village where at least 50 percent of the adults are not
employed (see Sec. 274.1(b)(2)).
Section 5001(d) of Pub. L. 105-33 added subsection (G) to section
408(a)(7). This subsection provides for special treatment of assistance
provided to a family with Welfare-to-Work grant funds (formula or
competitive) under the time-limit provision. First, months in which a
family receives cash assistance funded with Welfare-to-Work grant funds
(under section 403(a)(5) of the Act) do count towards the five-year
limit; however, months in which a family receives only non-cash
assistance under WTW do not count towards the five-year limit.
Secondly, families may receive assistance funded with Welfare-to-Work
grant funds even though they are precluded from receiving other TANF
assistance because of the five-year limit.
Some families may receive assistance from Federal funds for more
than five years based on hardship or if the family includes an
individual who has been battered or subjected to extreme cruelty as
defined in section 408(a)(7)(C)(iii). Under section 408(a)(7)(C), the
average monthly number of such families may not exceed 20 percent of
the State's average monthly caseload during either the fiscal year or
the immediately preceding fiscal year, whichever the State elects.
The Act does not specifically prescribe whether a family can be
excepted from the time limit before they have received 60 cumulative
months of Federal assistance or whether it can only be applied after
the limit is reached. As the purpose of the provision is to provide an
extension to the 60-month limit, we propose that it would only apply
after that limit is reached. No determination of whether a State has
exceeded the cap will be made until some families in the TANF program
have received at least 60 cumulative months of federally-funded
assistance. We believe that this approach is the most straightforward
and comports with Congressional intent that TANF assistance be provided
on a temporary basis while a family becomes self-sufficient. Thus,
unless the minor child or Native American statutory disregard applies,
Federal support would cease once any adult in the family has been
assisted for 60 total months with Federal funds unless the State
chooses at that time to include the family in its 20 percent exception.
However, the State may elect to use State funds to continue to pay
eligible families.
The provision is a time limit on Federal funding, and does not set
an upper or lower bound on the amount of time a State could provide
assistance to an individual family with State funds. States are free to
impose shorter time limits on the receipt of assistance under their
programs. They are also free to allow receipt for longer periods if the
assistance is paid from State funds or if the family meets the criteria
the State has chosen for extension and fits with the 20 percent limit.
We are very interested in comments on our approach to clarifying
the time limit on assistance. We will also be paying close attention to
learn what is happening to families as they begin to reach time limits
under waiver and TANF rules. In this regard, tracking the number of
months that each family has received TANF assistance is very important,
both to the State and to the family. We urge States to regularly
provide families with information on how close they are to reaching the
time limit. This information should help strengthen the family's focus
on achieving self-sufficiency.
We have received numerous inquiries regarding the relationship
between good cause waivers of the time limit permitted under the Family
Violence Option at section 402(a)(7) and the limit on the exceptions to
the Federal time limit at section 408(a)(7)(C)(ii). The key issue is
whether the 20 percent limit on hardship exceptions includes families
of domestic violence victims.
[[Page 62161]]
Section 402(a)(7)(B) expressly refers to section 408(a)(7)(C)(iii)
in applying the meaning of the term ``domestic violence'' to the Family
Violence Option at section 402(a)(7)(A). Section 408(a)(7)(C)(iii)
defines ``battered'' or ``subjected to extreme cruelty'' for purposes
of describing families who may qualify for a hardship exemption at
section 408(a)(7)(C)(i), and section 408(a)(7)(C)(ii) specifies a 20
percent limit on the exceptions to the time limit due to hardship.
Consequently, we conclude that the statutory language includes the
number of families waived from the five-year time limit per section
402(a)(7) within the 20 percent ceiling established under section
408(a)(7)(C)(ii).
We further note that Congress chose not to amend the statute as
part of budget reconciliation. Thus, our proposed policy includes these
cases within the 20 percent limitation. However, our policy would
enable a State to claim ``reasonable cause'' when its failure to meet
the five-year limit could be attributed to its provision of bona fide
good cause domestic violence waivers. See Sec. 274.3 for additional
information.
As previously discussed, section 408(a)(7)(D) provides an exemption
to the time limit on receipt of federally-funded TANF assistance for
families living in Indian country or in an Alaskan Native village. The
months a family, that includes an adult, lives in Indian country or in
an Alaskan Native village, where at least 50 percent of the adults are
not employed, do not count when determining whether the adult has
received federally-funded assistance for 60 cumulative months. In
accordance with section 408(a)(7)(D), as amended by section 5505(d)(2)
of Pub. L. 105-33, the percentage of adults who are not employed in a
month will be determined by the State using the most reliable data
available for the month, or for a period including the month.
This exception does not include families receiving assistance under
an approved Tribal family assistance plan because these families are
covered by the requirements at section 412.
In our consultations on the regulations, questions were raised
about the relationship of section 415, the application of waivers
inconsistent with PRWORA, and the time limit on Federal assistance.
Some waivers include provisions for time limiting assistance.
As discussed in the preamble to Sec. 270.30, we define what it
means for a provision of the Act to be inconsistent with provision(s)
in a waiver. We believe it is crucial to define what ``inconsistent''
means because: (1) the Act does not define it; (2) States need to know
whether any time-limit policies in their waivers are inconsistent with
the provisions in sections 408(a)(1)(B) and 408(a)(7); and (3) if there
is an inconsistency, States need to know how the time-limit
restrictions under 408(a)(1)(B) and 408(a)(7) apply in relation to the
State's policy. We must define the term to implement the time limit
penalty provision at section 409(a)(9), and States must understand what
it means when it is applied to the five-year limit, in order to avoid
that penalty.
Under our proposed definition of inconsistency, the five-year limit
on Federal assistance is inconsistent with a State's waiver only: (1)
if the State has an approved waiver (a) that provides for terminating
cash assistance to individuals or families because of the receipt of
assistance for a period of time specified by the approved waiver(s),
and (b) under which the State would have to change its waiver policies
(including policies regarding exemptions and extensions) in order to
comply with the five-year limit on Federal assistance; or (2) for a
control or experimental treatment group where a State chooses to
maintain prior law policies applicable to research group cases for the
purpose of completing an impact evaluation using an experimental
design.
We believe that this proposed regulation is consistent with the
language in the conference report, H. Rept. 104-725 at 311, indicating
agreement by the conferees that:
* * * such waivers may only apply * * * to the specific program
features for which the waiver was granted. All * * * program
features of the State program not specifically covered by the waiver
must conform to this part (i.e., to TANF).
Except for control and experimental treatment group cases
maintained for the purpose of completing an impact evaluation of the
waiver policies, a State that does not have an approved time-limit
provision in its waiver that meets the above criteria must adhere to
the provisions set forth in sections 408(a)(1)(B) and 408(a)(7). A
State that does have an approved time-limit provision in its waiver
that meets the above criteria does not have to follow the provisions of
the five-year limit, to the extent they are inconsistent, until the
waiver expires. Several examples of the application of the proposed
policy follow.
A State has an approved seven-year waiver that terminates a
family's cash benefits after 18 months of benefits if the adult fails
to participate in a work program. Assistance does not end because of
the passage of time, but because of the adult's failure to participate
in a required work activity. The waiver policy does not meet the first
prong of the test for time limit inconsistency, as it is a work policy.
Therefore, it is not inconsistent with the Federal time-limit
provision. The State will have to adhere to the five-year limit under
sections 408(a)(1)(B) and 408(a)(7).
Even if a State has an approved time-limit waiver policy, we
believe that the waiver policy and the Federal five-year limit can
operate concurrently. In most cases, the State would not have to change
waiver policy because of the Federal limit, and, thus, there would not
be an inconsistency. As a general rule, individuals subject to a State
time limit under an approved waiver will concurrently be subject to the
Federal time limit.
For example, a State has been granted an eleven-year waiver to
operate a demonstration that limits the receipt of assistance by a
family to two years (with extensions under certain circumstances).
Because the Federal time limit can run concurrently, a family receiving
assistance for two years under the State's time limit is also receiving
two years of assistance under the Federal five-year limit. Once the
demonstration ends, if the family has received just two years of TANF
assistance, then the family can receive three more years of federally-
funded assistance under the five-year limit (assuming all other
eligibility criteria are met per the State's TANF plan). Alternatively,
should the family move to another State, that State can provide three
more years of federally-funded assistance (assuming the State provides
five years of TANF assistance).
Under this policy, there will be circumstances under which the
State may use Federal funds for longer than five years to provide
assistance to a family that includes an adult. For example, under the
terms of the waiver, assistance is extended so long as the eligible
adult in the family complies with his/her personal responsibility plan.
In such situations, we propose that a State may apply extensions of its
time limit in accordance with the terms of the approved waiver in lieu
of the provision under section 408(a)(7)(C)(ii).
We believe that this approach comports with the intent of section
415. Section 408(a)(7)(C) permits Federal funds to be used to continue
to assist families beyond the five-year limit based on hardship. Under
section 408(a)(7)(C)(ii), a State may apply this extension for up to
only 20 percent of
[[Page 62162]]
its average monthly caseload during the fiscal year or the immediately
preceding fiscal year, whichever the State elects. A State's approved
waiver may very well include a provision for extending assistance as
needed to cases meeting the waiver requirements, without limit. Under
the above proposal, a State may apply extensions of its time limit,
without caseload limits, in accordance with the terms of its approved
waiver.
Another State might have waivers approved for a nine-year period
that apply a three-year time limit on receipt of assistance to adults
in the family (with extensions under certain circumstances). The
children in the family continue to receive assistance even after
assistance ends for the adults. If the adults receive no extension,
there is no inconsistency and the children may continue to receive
benefits. If the adults receive extensions under the demonstration, and
thus more than five years of assistance, there would be an
inconsistency because the State would need to change its waiver policy
and terminate assistance. Therefore, the family can continue to receive
assistance as long as the adults have an extension and the children can
receive assistance even if the adult is terminated. (Note that once the
adults are removed from the State-defined family, the Federal time
limit clock does not advance.) When the waiver authority ends, the
State will need to determine if the adults in demonstration families
received five years of federally-funded TANF assistance. If not, the
families will be eligible to receive assistance with Federal TANF funds
for up to a total of 60 cumulative months (assuming all other
eligibility criteria are met per the State's TANF plan).
We recognize that there will be situations, although limited, in
which, as a result of a waiver policy, a family will not accrue months
towards the Federal time limit even though it receives assistance with
Federal (or commingled) funds. For months when a family is exempt from
the State time limit (e.g., when the adult in the family is aged or
disabled), the family is also exempt from the Federal time limit during
the duration of the waiver authority. To subject such families to a
time limit would be inconsistent with the State's approved waiver
policy. Therefore, for the period of the waiver authority, the number
of months the family receives assistance do not accrue against the
Federal five-year time limit as long as the family remains exempt under
the State time limit. These exemptions cease once the waiver authority
ends or if the family moves to another State.
A family that is in the control or experimental treatment group
maintained for the purpose of completing an impact evaluation of a
waiver demonstration program would not be subject to a time limit.
Therefore, it would not begin to accrue months towards the Federal time
limit until the end of the waiver demonstration (or sooner if the
evaluation is discontinued) and would not count towards the 20 percent
limit on extensions.
What happens if a State does not comply with the five-year limit?
(Sec. 274.2)
Congress created a penalty under section 409(a)(9) to ensure that
States comply with the five-year restriction on the receipt of
federally-funded TANF assistance. If we determine that a State has not
complied with the five-year time limit during a fiscal year, then we
will reduce the SFAG payable for the immediately succeeding fiscal year
by five percent of the adjusted SFAG.
Five years is the maximum period of time permitted under the
statute for families to receive federally-funded TANF assistance.
Therefore, the penalty under this section does not apply if the State
exceeds any shorter time limits on the receipt of federally-funded
assistance that it may choose to impose. It also does not apply to any
time limits on receipt of State-funded assistance or the receipt of
non-cash assistance through participation in an allowable activity
financed through Federal Welfare-to-Work grant funds.
In defining the requirement, section 409(a)(9) refers to section
408(a)(7). This section provides the circumstances under which
assistance may be extended. It provides exceptions to the time limit
requirement for minors, hardship, or families living in Indian country
or in an Alaskan Native village. Therefore, we will take into account
the exceptions described under paragraphs (B), (C), or (D) of section
408(a)(7) when deciding whether the State complied with the five-year
time limitation.
We do not intend to hold States immediately accountable for knowing
about and verifying all months of assistance received in other States,
since we are aware that, in general, States' data processing systems
generally are not currently capable of accomplishing interstate
tracking of the number of months an individual has received TANF
assistance. We will use the information required to be reported by the
proposed rules in part 275 to learn whether a State is complying with
the five-year time restriction on the receipt of federally-funded
assistance.
How can a State avoid a penalty for failure to comply with the five-
year limit? (Sec. 274.3)
In Sec. 272.5, we have proposed general circumstances under which
we would find reasonable cause to waive potential penalties. We also
propose to consider an additional factor in determining whether there
is reasonable cause for failure to meet the five-year limit. The
additional factor relates to a State's implementation of the Family
Violence Option (FVO) and its provision of temporary waivers of time
limits, when necessary, for victims of domestic violence.
We want to encourage States to adopt this amendment and to provide
appropriate assistance that reflects the safety and employment-related
needs of these families. In adding this reasonable cause factor, we
recognize that some of these individuals may need special assistance,
at least over the short term. However, we also want to ensure that
States make timely, good-faith efforts to help victims of domestic
violence become independent. To ensure that States make such efforts,
we would limit this reasonable cause provision to States that have
implemented the FVO; we reference the criteria we included at
Sec. 270.30 to define what qualifies as a good cause domestic violence
waiver; and we have set forth a strategy for monitoring the
implementation of these provisions.
Under our proposal, as under the work participation penalty, States
would have to grant good cause domestic violence waivers appropriately.
In the case of time limits, we would only allow States to exclude from
their calculations families that had good cause domestic violence
waivers and service plans in effect at the time of, or after, the
family had reached the 60-month limit on federally-funded assistance.
We would not stop the Federal clock for families that receive good
cause domestic violence waivers during the five-year period, and we
would only recognize waivers that reflected a State assessment that the
individual's or family's situation was temporarily preventing them from
work.
There are several reasons why we have taken a restrictive approach
on this reasonable cause provision.
The most important is that the 20 percent hardship exemption
already provides considerable flexibility for States--for example, it
only applies to federally-funded assistance, and it excludes certain
types of families.
A related reason is that we think the time-limit provision gives
States added incentive to work vigorously with
[[Page 62163]]
families in making the transition from welfare to work. We want States
to have similar motivation to assist victims of domestic violence in
becoming independent. If we are too generous in granting reasonable
cause for domestic violence cases, we believe there will be a risk that
States will divert resources and attention from these cases and
unnecessarily prolong their dependence.
We tie the availability of reasonable cause to the family's ability
to work because that factor is the most critical in determining whether
a family could support itself or would continue to need assistance.
Families facing the most serious domestic violence situations are
likely to have waivers of work requirements because their lives will be
too unstable to expect ongoing work. These same families will be the
ones whose situations may take more time to resolve and will have the
most trouble becoming self-sufficient within the time limits. Thus, it
makes sense to address these cases through reasonable cause. Other
cases can be served under the 20 percent hardship exemption or a State-
funded program, if they fail to become self-sufficient within five
years.
We do not expect that victims of domestic violence will routinely
need more than five years of assistance before becoming self-
sufficient. However, our proposal recognizes that there may be special
circumstances when that is not possible. For example, a woman could
suffer recurrent episodes of domestic violence, including one at the
end of the five-year period, that prevent her from securing or
maintaining a stable work situation. The reasonable cause provision in
this section of the proposed rule would give special consideration to
States if such situations arose.
Under our proposed rules, a State must substantiate its case for
all claims of reasonable cause. We will examine each situation on its
own merits and determine whether to assess a penalty on a case-by-case
basis.
Must States do computer matching of data records under IEVS to verify
recipient information? (Sec. 274.10)
The Income and Eligibility Verification System (IEVS) was
originally established on July 18, 1984 under section 1137. PRWORA
created a penalty at section 409(a)(4) requiring the reduction of a
State's SFAG for the immediately succeeding fiscal year by up to two
percent if the State is not participating in IEVS.
This IEVS provision was intended to improve the accuracy of
eligibility determinations and grant computations for the public
assistance (AFDC, Medicaid, Food Stamp and SSI) programs. It achieves
this goal by expanding access to, and exchanges of, available computer
files to verify client-reported earned and unearned income.
Specifically, it makes the following files available to the State
public assistance agencies: (1) IRS unearned income; (2) State Wage
Information Collection Agencies (SWICA) employer quarterly reports of
income and unemployment insurance benefit payments; (3) IRS earned
income maintained by the Social Security Administration (SSA); and (4)
with the passage of the Immigration Control and Reform Act of 1986,
immigration status information maintained by the Immigration and
Naturalization Service (INS).
Currently, regulations at Secs. 205.51 through 205.62 and section
1137(d) describe what is meant by ``participating * * * in the income
and eligibility verification system required by section 1137.'' The
regulation at Sec. 205.60(a) requires each State to maintain statistics
on its use of IEVS. In general, ``participation'' means that a State
agency submits electronic requests to IRS, SWICA, SSA and INS for
information listed in the preceding paragraph, for all TANF applicants
and recipients. IRS, SWICA, SSA and INS provide the State agencies with
an electronic response regarding the information requested. The
frequency of the request and the timeliness of the response is a
function of the agency (IRS, SWICA, SSA and INS) data processing
systems design. The State agency worker compares the information
provided by IRS, SWICA, SSA and INS to determine the accuracy of client
reporting of case circumstances.
How much is the penalty for not participating in IEVS? (Sec. 274.11)
We are proposing to use an audit pursuant to the Single Audit Act
as the primary means of monitoring a State's IEVS participation.
Statistics maintained by the State, as required by Sec. 205.60(a), will
be one of the sources of information that will be reviewed during the
audit. However, we may conduct additional Federal reviews or audits as
needed.
Since IEVS has been in existence for more than 12 years, we believe
that States have had significant time to become full participants in
IEVS. Therefore, we believe it is appropriate to impose the maximum
two-percent penalty upon all findings that a State is not participating
in IEVS.
What happens if a State sanctions a single parent of a child under six
who cannot get needed child care? (Sec. 274.20)
To support the intent of the statute to move people to work,
section 407(e) requires that States reduce or terminate assistance to
individuals who refuse to engage in work as required by section
402(a)(1)(A)(ii), as amended by section 5501(b) of Pub. L. 105-33, and
section 407. However, section 407(e)(2) gives an exception for single
custodial parents with a child under six if the State determines they
have a demonstrated inability to obtain needed child care. Parents
refusing to participate in work must demonstrate that they could not
obtain child care for one or more of the following three reasons: (1)
appropriate child care was not available within a reasonable distance
from the parent's home or work site; (2) informal child care, by a
relative or under other arrangements, was unavailable or unsuitable;
and (3) appropriate and affordable formal child care arrangements were
unavailable.
Section 409(a)(11)(A) directs the Secretary to reduce by no more
than five percent of the adjusted SFAG, the SFAG payable to the State
that reduces or terminates assistance to parents who refuse to work
because they cannot obtain needed child care for a child under six
years of age. The determination that a State is liable for a penalty
would be dependent on a finding that the State reduced or terminated
assistance to a parent who qualified for an exception under the
definitions or criteria that the State developed regarding a parent's
``demonstrated inability'' to obtain needed child care.
We expect that, because of the interrelationship between TANF and
CCDF, the TANF staff would work in close coordination with the Lead
Agency for child care. Our expectation is that the TANF staff will
provide families information about the penalty exception. Under the
CCDF proposed rule, ACF would also require that the Lead Agency for the
CCDF program inform parents in the CCDF system about the penalty
exception to the TANF work requirement and the process or procedures
developed by the State by which they can demonstrate their inability to
obtain needed child care. ACF would also require the Lead Agency for
child care to include the TANF agency's definitions in the CCDF plan
for ``appropriate child care,'' ``reasonable distance,''
``unsuitability of informal care,'' ``affordable,'' and ``child care
arrangements.'' Thus, we would expect the TANF agency to share its
[[Page 62164]]
definitions of these items with the child care agency. Both agencies
would then be able to share them with families whom they may be
assisting with child care arrangements.
Following are the factors that ACF would consider in determining if
a State violated the exception to the penalty provided at section
407(e)(2):
Whether the State informs families about the exception to
the penalty for refusing to work, including the fact that the exception
does not extend the time limit on benefits;
Whether the State informs families about the process or
procedures by which they can demonstrate an inability to obtain needed
child care;
Whether the State has defined and informed parents of its
definitions of ``appropriate child care,'' ``reasonable distance,''
``unsuitability of informal care,'' and ``affordable child care
arrangements'';
Whether the State notifies the parent of its decision to
accept or reject the parent's demonstration in a timely manner;
Whether the State has developed alternative strategies to
minimize the amount of time parents are excepted from work requirements
due to their inability to obtain needed child care.
For example, a State that uses the services of a child care
resource and referral (CCR&R) office might accept a statement from that
office noting the unavailability of appropriate or affordable child
care. Or, if the refusal to work is due to difficulty in arranging
transportation, the State could refer to bus and rail rates and
schedules to determine if the appropriateness and/or reasonable
distance criteria had been met.
We are not specifying the process or procedures that States should
develop, or the documents, if any, States should require. However, we
suggest that if States plan to require documents, they select ones that
are readily available to families. We recommend that the process or
procedures be simple and straight forward. In addition, we recommend
frequent contact with parents since the penalty exception does not stay
the time limits and there may be fluctuations in the availability of
child care services.
We propose to impose the maximum penalty if States do not have a
process or procedure in place that enables families, who refuse to work
because they are unable to find needed child care, to demonstrate that
they have met the guidelines provided by the State. Additionally, we
will impose the maximum penalty if there is a pattern of substantiated
complaints from parents or organizations verifying that a State has
reduced or terminated assistance in violation of the requirement at
section 409(a)(11). We will impose a reduced penalty if the State
demonstrates that the incidents were isolated or that a minimal number
of families were affected. States faced with a penalty under this
requirement can claim reasonable cause and/or submit a corrective
compliance plan as described in part 272.
What procedures exist to ensure cooperation with child support
enforcement requirements? (Sec. 274.30)
One of TANF's purposes is to provide assistance to needy families
so that children may be cared for in their own homes or the homes of
relatives. Another is to end the dependence of needy parents on
government benefits by promoting job preparation, work, marriage, and
parental responsibility. A third is to prevent and reduce the incidence
of out-of-wedlock pregnancies and to encourage the formation and
maintenance of two-parent families. Child support enforcement provides
an important means of achieving all of these goals.
The law has long recognized that paternity establishment is an
important first step toward self-sufficiency in cases where a child is
born out of wedlock. The earlier paternity is established, the sooner
the child may have a relationship with the father and access to child
support, the father's medical benefits, information on his medical
history, and other benefits resulting from paternity establishment.
Establishment of paternity may also help establish entitlement to
other financial benefits, including Social Security benefits, pension
benefits, veterans' benefits, and rights of inheritance. Accordingly,
establishing paternity and obtaining child support from the non-
custodial parent are critical components of achieving independence.
To ensure that a legal relationship protecting the interests of the
children is established quickly and in accordance with State law, the
State agency (the IV-A agency) must refer all appropriate individuals
in the family of a child, for whom paternity has not been established
or for whom a child support order needs to be established, modified or
enforced, to the Child Support Enforcement Agency (the IV-D agency).
Those individuals must cooperate in establishing paternity and in
establishing, modifying or enforcing a support order with respect to
the child.
The IV-D agency will determine whether the individual is
cooperating with the State as required. If the IV-D agency determines
that an individual has not cooperated, and the individual does not
qualify for any good cause or other exception established by the State,
the IV-D agency will notify the IV-A agency promptly. The IV-A agency
must then take appropriate action. The IV-A agency may either reduce
the family's assistance by an amount equal to not less than 25 percent
of the amount that the family would otherwise receive or deny the
family assistance under TANF.
What happens if a State does not comply with the IV-D sanction
requirement? (Sec. 274.31)
As stated in section 409(a)(5) of the Act and Sec. 272.1 of these
proposed rules, we will impose a penalty of up to five percent of the
adjusted SFAG if the IV-A agency fails to enforce penalties requested
by the IV-D agency against individuals who fail to cooperate without
good cause. We propose to monitor State adherence to this requirement
primarily through the single audit process. We further propose that the
amount of the penalty will be equal to one percent of the adjusted SFAG
for the first year there is such a finding. For the second year, the
amount of the penalty will equal two percent of the adjusted SFAG. We
will apply the maximum penalty of five percent only if there is such a
finding in a third, or subsequent year.
In determining the appropriate penalty for this provision, we took
into account the comments made during our consultations with States and
other organizations. Although States have been required to establish
paternity and enforce other child support provisions for several years,
and States already have systems and procedures in place for dealing
with these requirements, the division of responsibility between the IV-
A and IV-D agencies is now slightly different. Accordingly, the
proposal that we gradually increase the amount of the penalty was made
to give States the opportunity to make procedural adjustments before
they are subject to the full impact of the penalty. We believe that the
suggestion has merit and, therefore, are proposing an incremental
approach, with reduced penalties for the first two violations, i.e.,
one percent for the first and two percent for the second. However,
since this is not an entirely new requirement, we are proposing to
apply the full five percent penalty beginning with the third violation
of the provision.
[[Page 62165]]
What happens if a State does not repay a Federal loan? (Sec. 274.40)
Section 406 permits States to borrow funds to operate their TANF
programs. States must use these loan funds for the same purposes as
apply to other Federal TANF funds. In addition, the statute also
specifically provides that States may use such loans for welfare anti-
fraud activities and for the provision of assistance to Indian families
that have moved from the service area of an Indian Tribe operating a
Tribal TANF program. States have three years to repay loans and must
pay interest on any loans received. We will be issuing a program
instruction notifying States of the application process and the
information needed for the application.
Section 409(a)(6) establishes a penalty for States that do not
repay loans provided under section 406. If the State fails to repay its
loan in accordance with its agreement with ACF, we will reduce the
adjusted SFAG for the immediately succeeding fiscal year by the
outstanding loan amount, plus any interest owed.
Sections 409(b)(2) and 409(c)(3) provide that States cannot avoid
this penalty either through reasonable cause or corrective compliance.
What happens if, in a fiscal year, a State does not expend, with its
own funds, an amount equal to the reduction to the adjusted SFAG
resulting from a penalty? (Sec. 274.50)
Section 409(a)(12), as amended by PRWORA, requires States to expend
under the TANF program an amount equal to the reduction made to its
adjusted SFAG as a result of one or more of the TANF penalties. States
are thus required to maintain a level of TANF spending that is
equivalent to the funding provided through the SFAG even though Federal
funding was reduced as a result of penalties. However, PRWORA did not
establish a penalty for a State's failure to meet this requirement.
Section 5506(j) of Pub. L. 105-33 further amended section 409(a)(12) to
create such a penalty. If a State fails to expend its own funds to pay
for State TANF expenditures in an amount equal to the reduction made to
its adjusted SFAG for a penalty under Sec. 272.1, the State's SFAG for
the next fiscal year will be reduced by an amount equal to not more
than two percent of its adjusted SFAG plus the amount that should have
been expended (reduced for any portion of the required amount actually
expended by the State in the fiscal year).
As discussed in Sec. 272.3, we will monitor closely a State's
efforts to replace the reduced SFAG with its own expenditures. A
State's investment in its TANF program must not be diminished as a
result of actions violative of the TANF requirements. Therefore, if a
State fails to make any expenditures in the TANF program to compensate
for penalty reductions, we will penalize the State in the maximum
amount, i.e., two percent of the adjusted SFAG plus the amount it was
required to expend. The penalty will be reduced based on the percentage
of any expenditures that are made by the State. For example, if a State
were required to replace an SFAG reduction by $1,000,000, but its
increase in expenditures equalled only $500,000, its penalty would be
equal to two percent of the adjusted SFAG times 50 percent (because
$500,000 is 50 percent of $1,000,000), plus the $500,000 it failed to
expend as required.
States should note that if they do not expend State-only funds as
required, the effect will be that the amounts to be deducted from the
SFAG will compound yearly, as the penalty for failure to replace SFAG
funds with State expenditures also applies to the penalty at
Sec. 272.1(a)(12). We believe that this is appropriate because full
resources must be available to ensure that the goals of the TANF
program are met.
State expenditures that are used to replace reductions to the SFAG
as the result of TANF penalties must be expenditures made under the
State TANF program, not under ``separate State programs.'' This
requirement is stated in section 409(a)(12). However, as noted in
Sec. 273.6, regarding the limits on MOE expenditures, State
expenditures made to replace reductions to the SFAG as a result of
penalties cannot be counted as TANF MOE expenditures.
In addition, sections 5508(k) and (m) of Pub. L. 105-33 provide
that the reasonable cause and corrective compliance plan provisions at
Secs. 272.4, 272.5, and 272.6 do not apply to the penalty for failure
to replace SFAG reductions due to penalties with State expenditures.
Subpart B--What are the Funding Requirements for the Contingency Fund?
Optional Use of the Contingency Fund
In addition to the funding they receive under section 403(a),
States may receive funding from the Contingency Fund under section
403(b). The purpose of the Fund is to make additional funds available
to States, at their request, for periods when unfavorable economic
conditions threaten their ability to operate their TANF programs. For
each month of the fiscal year that they meet the eligibility criteria,
States may receive up to 1/12th of 20 percent of their SFAG annual
allocation. The actual amount of funds a State may realize from the
Contingency Fund will vary depending on the level of State expenditures
and the number of months that a State is eligible. States eligible in
one month may automatically receive a payment for the following month.
We have issued a program instruction to States on the Contingency Fund,
which provides guidance on the requirements of the Fund as well as the
associated MOE requirement.
As noted in the definitions at Sec. 270.30, the term ``Contingency
Funds,'' when used in these proposed rules, refers to the Federal funds
a State may receive under section 403(b). It does not refer to any
required State expenditures.
Unless otherwise indicated, the terms ``MOE requirement'' and ``MOE
level,'' when used in this Subpart, refer to the Contingency Fund MOE
requirement.
For funding from the Contingency Fund, a State must: (1) be a
``needy State,'' i.e., meet one of two eligibility triggers--
unemployment or Food Stamp caseload; (2) submit a request for these
funds; (3) meet a maintenance-of-effort level based on 100 percent of
historic State expenditures for FY 1994; (4) complete an annual
reconciliation after the end of the fiscal year to ensure that
contingency funds are matched by the expenditure of State funds above a
certain level; and (5) provide State matching funds.
To be eligible for contingency funds under the unemployment
trigger, the State's unemployment rate for the most recent three-month
period must be at least 6.5 percent and at least equal to 110 percent
of the State's rate for the corresponding three-month period in either
of the two preceding calendar years. To be eligible for contingency
funds under the Food Stamp trigger, a State's monthly average of
individuals (as of the last day of each month) participating in the
Food Stamp program for the most recent three-month period must exceed
by at least ten percent its monthly average of individuals in the
corresponding three-month period in the Food Stamp caseload for FY 1994
or FY 1995 had the immigrant provisions under title IV and the Food
Stamp provisions under title VIII of PRWORA been in effect in those
years.
In general, contingency funds may be used for the same purposes as
other Federal TANF funds. However, the Contingency Fund provisions
contain several unique requirements that are discussed below.
[[Page 62166]]
Unlike the TANF funds provided under section 403(a), contingency
funds (provided under section 403(b)) cannot be transferred to the
Child Care and Development Block Grant Program (also known as the
Discretionary Fund of the Child Care and Development Fund) and/or the
Social Services Block Grant Program under title XX of the Act. Section
404(d) permits the transfer of funds received pursuant to section
403(a) only.
Territories and Tribal TANF grantees are not eligible to
participate in the Contingency Fund. Section 403(a)(7) provides that
only the 50 States and the District of Columbia are eligible.
The TANF MOE requirement is 80 percent (or 75 percent if a State
meets its participation rate) of historic State expenditures. The
Contingency Fund MOE requirement is 100 percent of historic State
expenditures. However, meeting the Contingency Fund MOE requirement is
not accomplished by increasing State expenditures by 20 (or 25)
percent. The calculation is more complicated because the MOE is
calculated differently for purposes of determining compliance with the
TANF MOE requirements and determining eligibility for the Contingency
Fund. For example, Contingency Fund MOE expenditures must be the
expenditure of State funds within TANF and not expenditures made under
``separate State programs.'' Therefore, TANF MOE ``separate program''
expenditures under separate State programs cannot count toward the
Contingency Fund MOE requirement. However, TANF MOE expenditures may
also count as Contingency Fund MOE expenditures.
Contingency funds are available only for expenditures made in the
fiscal year for which the funds were received. Unlike TANF funds under
section 403(a), contingency funds are not available until expended.
Section 403(b)(4) provides that the funds are to be used to match
State funds for expenditures above a specified MOE level and requires
an annual reconciliation to determine if the State is entitled to the
amount of funds it has received for the fiscal year. We will use the
term ``matching expenditures'' to mean State and Contingency Fund
expenditures that exceed the MOE level specified in this section.
``Qualifying State expenditures'' refers to matching expenditures,
excluding Contingency Fund expenditures, and the expenditure of State
funds made to meet the Contingency Fund MOE requirement.
In this part of the proposed rule, we explain the reconciliation
and MOE requirements and the actions that we will take if the State
does not remit its contingency funds under the annual reconciliation
requirement.
What funding restrictions apply to the use of contingency funds?
(Sec. 274.70)
Annual Reconciliation
Annual reconciliation involves first computing the amount, if any,
by which countable State expenditures, in a fiscal year, exceed the
State's section 403(b)(6) MOE requirement. If the countable
expenditures exceed 100 percent of that level, then the State is
entitled to all or a portion of the contingency funds paid to it.
If the State has met its requirement, the amount of contingency
funds it may retain is the lesser of two amounts. The first amount is
the amount of contingency funds paid to it for the fiscal year. The
second amount is its expenditures above its MOE level, multiplied by
(1) the State's Federal Medical Assistance Percentage (FMAP) applicable
for the fiscal year for which funds were awarded and (2) \1/12\ times
the number of months during the fiscal year that the State received
contingency funds. (Note that if the State was eligible for, and
received contingency funds for fewer than 12 months during the fiscal
year, the effective rate for contingency funds will be less than its FY
FMAP.)
The annual reconciliation provision of section 403(b)(6) is clear
that contingency funds are available only to match expenditures that
exceed a State's MOE level.
How will we determine 100 percent of historic State expenditures, the
MOE level, for the annual reconciliation? (Sec. 274.71)
Pub. L. 105-33 amended section 403(b), by deleting an alternative
MOE requirement.
For the Contingency Fund, historic State expenditures, or MOE
level, (i.e., expenditures for FY 1994) include the State share of AFDC
benefit payments, administration, FAMIS, EA, and JOBS expenditures.
They do not include the State share of AFDC/JOBS, Transitional and At-
Risk child care expenditures.
We will use the same data sources and date, i.e., pril 28, 1995, to
determine each State's historic State expenditures as we used to
determine the TANF MOE requirement. However, we will exclude the State
share of child care expenditures for FY 1994. States must meet 100
percent of this MOE level.
Reduction to MOE Level
States should note that we will reduce the MOE level for the
Contingency Fund if a Tribe within the State receives a Tribal Family
Assistance Grant under section 412. This reduction is provided for in
the last paragraph of section 409(a)(7)(B)(iii). For the TANF MOE
requirement, we have provided that we will reduce the State's TANF MOE
level by the same percentage as a State's SFAG annual allocation is
reduced for Tribal Family Assistance Grants in the State for a fiscal
year. For example, if a State's SFAG amount is $1,000 and Tribes
receive $100 of that amount, the State's TANF MOE requirement is
reduced by ten percent. If the same State also receives contingency
funds in the same fiscal year, the Contingency Fund MOE level will also
be reduced by ten percent.
For the annual reconciliation requirement, what restrictions apply in
determining qualifying State expenditures? (Sec. 274.72)
Section 403(b)(6)(B)(ii)(I) provides that the expenditure of State
funds counted toward the Contingency Fund MOE must only be expenditures
made under the State program funded under this part. Thus, the State
expenditures that the State makes to meet this Contingency Fund MOE
level and its ``matching expenditures'' include the expenditure of
State funds within TANF only; they do not include expenditures made
under ``separate State programs.'' In addition, the provision specifies
that the State's expenditures for child care cannot be used to meet the
requirement.
What other requirements apply to qualifying State expenditures?
(Sec. 274.73)
Section 403(b)(6)(B)(ii) defines the amounts required to meet the
MOE level and ``matching expenditures'' as ``countable'' expenditures
under the TANF program. Since these expenditures are covered under
title IV-A and are supplemental to the TANF MOE, we believe the same
requirements that apply to the TANF MOE should also apply to these
expenditures. Therefore, except where they conflict with section
403(b)(6)(B)(ii), we propose that the TANF MOE provisions at section
409(a)(4)(7)(B) apply to State expenditures under the Contingency Fund
provision. Thus, to be qualifying State expenditures for Contingency
Fund purposes, expenditures would be subject to the following proposed
regulations: (1) Sec. 273.2, which discusses types of expenditures
(except for paragraph 273.2(a)(2), which pertains to child care); (2)
Sec. 273.4, which discusses educational expenditures; and (3)
Sec. 273.6, which describes the kinds of expenditures that cannot count
as MOE.
[[Page 62167]]
When must a State remit contingency funds under the annual
reconciliation? (Sec. 274.74)
After reconciliation, if a State fails to meet the section
403(a)(6) MOE level, it must remit all the contingency funds we paid to
it for the fiscal year. If the State does not have sufficient matching
expenditures above its MOE level to retain all the funds paid to it,
then it must remit a portion of the funds paid to it. The amount the
State must remit in this instance is the difference between the amount
it received and the amount determined by multiplying: (1) the matching
expenditures it made above the MOE level; by (2) the State's FMAP rate
for the fiscal year; and (3) 1/12 times the number of months during the
fiscal year that the State received contingency funds.
Below we provide an example requiring the remittance of funds.
Assume State expenditures are $103 million (which includes $2.5
million in contingency funds for the six months that the State met the
Unemployment or Food Stamp trigger and excludes $2 million in child
care expenditures). The required expenditure of State funds to meet the
100 percent MOE level would be $95 million, i.e., $100 million minus $5
million for child care expenditures. Assume the State's FMAP is 50
percent.
In determining if any funds must be remitted, we must subtract from
the expenditures made by the State, the MOE level, i.e., $103 million
minus $95 million. This difference of $8 million must then be
multiplied by the State's FMAP rate for FY 1997. In this example, the
FMAP is 50 percent. Thus, $8 million multiplied by 50 percent is $4
million. Next, we must multiply the $4 million by 1/12 times the number
of months the State received funding for the Contingency Fund, in this
case, six months. The result is $2 million, i.e., the amount of
contingency funds the State is entitled to for the fiscal year.
However, if a State has received $2.5 million, then it must remit
$500,000. A simplified formula is presented below:
$103M-95M = $8M
$8M x 50% = $4M
$4M x 1/12 x 6 mos. = $2M
$2.5M (Received)--$2M = $500,000 (Amount that must be remitted.)
Under section 5502(e) of Pub. L. 105-33, a State is not required to
remit contingency funds until one year after it has failed to meet
either the Food Stamp trigger or the unemployment trigger for three
consecutive months. Thus, States may retain these funds for at least 14
months after the fiscal year has ended.
For example, FY 1997 ends September 30, 1997. The State fails to
meet either trigger for the months of October, November, and December,
1997. The State has until December 31, 1998, to remit the funds.
It is possible that a State will have used the contingency funds it
received for expenditures meeting the requirements included in this
proposed rule, but still have to return a part of the funds used to
make these expenditures because of the formula that determines how much
a State may retain. This is evident in the example above where the
State had to remit $500,000 of the $2.5 million received even though it
had made expenditures above the MOE level. We will not consider use of
funds which later must be returned under the reconciliation formula as
an improper use of contingency funds since the statute specifies a
separate consequence in this situation.
Contingency funds are for use in the fiscal year only; States may
not use funds for a fiscal year for expenditures made in either the
subsequent fiscal year or a prior fiscal year.
What action will we take if a State fails to remit funds as required?
(Sec. 274.75)
PRWORA established a penalty at section 409(a)(10) for this
failure. As amended by Pub. L. 105-33, section 409(a)(10) provides that
if a State does not remit funds as required, then the State's SFAG
payable for the next fiscal year will be reduced by the amount of funds
not remitted. Other amendments in Pub. L. 105-33 eliminated the
Secretary's ability to waive this penalty for reasonable cause or
corrective compliance. However, the State may appeal our decision to
reduce the State's SFAG pursuant to the proposed regulations at
Sec. 272.7.
How will we determine if a State has met its Contingency Fund
reconciliation MOE level requirement and made expenditures that exceed
its MOE requirement? (Sec. 274.76)
ACF has created a TANF Financial Report, the ACF-196. States will
use the ACF-196 to report on their use of Federal TANF funds, including
the contingency funds. For the Contingency Fund, States will report
``matching expenditures'' and expenditures also required to meet their
MOE level. We will use this report to complete the annual
reconciliation after the end of the fiscal year. We will review it to
ensure that expenditures reported are consistent with the statute and
these proposed rules. Please see the discussion of part 275 for
additional information.
Are contingency funds subject to the same restrictions that apply to
other Federal TANF Funds? (Sec. 274.77)
In general, as Federal TANF funds, the same requirements that apply
to other Federal TANF funds apply to the Contingency Fund. For example,
Federal assistance cannot be paid to a family with contingency funds if
the family has already received Federal assistance for 60 months. (See
the discussion in Sec. 273.21 on ``Misuse of Federal TANF Funds'' for
additional information.) However, contingency funds may not be
transferred to the Social Services Block Grant or the Discretionary
Fund of the Child Care Development Fund, as section 404(d) authorizes
these transfers only for those Federal funds provided under section
403(a).
Meeting FY 1997 MOE Requirements
Unlike the TANF MOE level, the Contingency Fund MOE level for FY
1997 will not be prorated based on the fraction of the year the State
was under TANF. Pub. L. 104-327 amended section
116(b)(1)(B)(ii)(II)(aa) and (b) of PRWORA to provide that we will
increase the SFAG of any State for FY 1997 in an amount ``that the
State would have been eligible to be paid under the Contingency Fund .
. . during the period beginning October 1, 1996, and ending on the date
the Secretary of Health and Human Services'' deems that the State plan
is complete, if the State otherwise would have been eligible for
contingency funds but for the fact that it was not under TANF. That is,
for all States regardless of the TANF implementation date, the SFAG for
FY 1997 may be increased in any month by the amount of contingency
funds for which a State would qualify had it been under TANF
requirements. The Program Instruction mentioned previously provides
additional guidance to States on how their SFAG amounts can be
increased for FY 1997. As the increase to the FY 1997 SFAG is a one-
time occurrence, we are not regulating on this matter.
In order to compute the amount of this increase for a State meeting
this criteria, and to ensure equity among all States, regardless of the
dates they elected to come under TANF, we must use the MOE level for
all of FY 1997. (For this limited purpose, amounts expended by a State
in FY 1997 prior to the date the State came under TANF, i.e., to
fulfill a State's matching requirement for AFDC, EA and JOBS, will
count toward meeting the State's FY 1997 Contingency Fund MOE
requirement.)
[[Page 62168]]
Subpart C--What Rules Pertain Specifically to the Spending Levels of
the Territories?
Section 103(b) of PRWORA amended section 1108. Section 1108
establishes a funding ceiling for Guam, the Virgin Islands, American
Samoa and Puerto Rico. Prior to PRWORA, the following programs
authorized in the Act were subject to this ceiling: AFDC and EA under
title IV-A; Transitional and At-Risk Child Care programs under title
IV-A; the adult assistance programs under titles I, X, XIV, and XVI;
and the Foster Care, Adoption Assistance, and Independent Living
programs under title IV-E. Funding for the JOBS program, which covered
AFDC/JOBS child care, was excluded from the ceiling.
Under the amendments in PRWORA, the funding ceiling at section 1108
applies to the TANF program under title IV-A, the adult programs, and
title IV-E programs. Section 1108(b) provides a separate appropriation
for a Matching Grant, which is also subject to a ceiling. The Matching
Grant is not a new program; rather it is a funding mechanism that
Territories can use to fund expenditures under the TANF and title IV-E
programs.
We had not previously regulated the provisions of section 1108.
However, in light of this new MOE requirement within section 1108, as
discussed later, we believe that we need to regulate to clarify the
requirements and the consequences if a Territory fails to meet the new
section 1108 requirements. We have authority to issue rules on this
provision under section 1102, which permits us to regulate where
necessary for the proper and efficient administration of the program,
but not inconsistent with the Act. (The limit at section 417 does not
apply.) In addition, we have prepared a program instruction for the
Territories to provide additional guidance on receiving funds under
section 1108.
In February 1997, we provided to the Territories: (1) their FAG
annual allocations; (2) their TANF MOE levels under section 409(a)(7);
(3) their Matching Grant MOE levels; (4) their section 1108(e) MOE
levels (which were created by PRWORA, and were subsequently eliminated
by Pub. L. 105-33); and (5) a detailed explanation of the methodology
and expenditures we used to determine each of these amounts.
If a Territory receives a Matching Grant, what funds must it expend?
(Sec. 274.80)
Section 1108(b) provides that Matching Grant funds are available:
(1) to cover 75 percent of expenditures for the TANF program and the
Foster Care, Adoption Assistance and Independent Living programs under
title IV-E of the Act; and (2) for transfer to the Social Services
block Grant program under title XX of the Act or the Child Care and
Development Grant (CCDBG) program (also known as the Discretionary
Fund) pursuant to section 404(d), as amended by PRWORA and Pub. L. 105-
33. However, Matching Grant funds used for these purposes must exceed
the sum of: (a) the amount of the FAG without regard to the penalties
at section 409; and (b) the total amount expended by the Territories
during FY 1995 pursuant to parts A and F of title IV (as so in effect),
other than for child care.
Under the first requirement, the Territory must spend an amount up
to its Family Assistance Grant annual allocation using Federal TANF or
Federal title IV-E funds or funds of its own for TANF or title IV-E
programs.
The second requirement establishes an MOE requirement at 100
percent of historic expenditures, based on FY 1995, separate from the
TANF MOE requirement, and applicable only if a Territory requests and
receives a Matching Grant. Historic expenditures include 100 percent of
State expenditures made for the AFDC program (including administrative
costs and FAMIS), EA, and the JOBS program. Territorial expenditures
made to meet this requirement include Territorial, not Federal,
expenditures made under the TANF program or title IV-E programs.
Territorial expenditures used to meet the FAG amount requirement,
the MOE requirement and the matching requirement, can only be used for
one of these purposes. We believe this is appropriate because our
interpretation of the statute is that Congress intended that the
provisions on spending up to the FAG amount, meeting the MOE
requirement, and meeting the matching requirement be separate
requirements.
What expenditures qualify for Territories to meet the Matching Grant
MOE requirement? (Sec. 274.81)
For the TANF MOE, section 409(a)(7) includes specific provisions on
what States and Territories may count as ``qualifying State
expenditures'' (i.e., expenditures that may count towards the TANF MOE
requirement).
However, the statute provides little guidance on what expenditures
a Territory may count toward the Matching Grant MOE for IV-A
expenditures. Because the Matching Grant is intended to be used for the
TANF program, we will apply many of the TANF MOE requirements in part
273, subpart A, to the Matching Grant MOE. These sections are: 273.2
(What kinds of State expenditures count toward meeting a State's annual
spending requirement?); 273.3 (When do child care expenditures count?);
273.4 (When do educational expenditures count?); and, 273.6 (What kinds
of expenditures do not count?). Section 273.5 (When do expenditures in
separate State programs count?) does not apply because section
1108(b)(1)(B)(ii) requires that these MOE expenditures must be
expenditures made under the TANF program. Thus, TANF expenditures that
are made to meet the Matching Grant MOE requirement must be
expenditures made under TANF, not expenditures made under separate
State programs. (Because Territories do not receive Matching Child Care
funds, the limit on child care expenditures in Sec. 273.3 does not
apply.)
Also, Territorial expenditures made in accordance with Federal IV-E
program requirements may count toward this MOE requirement. These
include the State share of IV-E expenditures and expenditures funded
with the State's own funds that meet Federal title IV-E program
requirements.
Territories may also count toward their Matching Grant MOE
requirement expenditures made under the TANF program that meet the TANF
MOE requirement.
What expenditures qualify for meeting the Matching Grant FAG amount
requirement? (Sec. 274.82)
The statute intends that expenditures made to meet this requirement
must be TANF or title IV-E expenditures. For TANF expenditures,
allowable expenditures made with Federal TANF funds may be used to meet
this requirement. These include amounts that have been transferred from
TANF to title XX and the Discretionary Fund in accordance with section
404(d). (See Sec. 273.11, which describes the proper uses of Federal
TANF funds.) Also, the Territory's own funds, when used for the TANF
program, may be used for this purpose. Because IV-A expenditures made
with the Territories' own funds must be for the TANF program, it is
reasonable that we apply to these TANF expenditures the MOE
requirements applicable for the Matching Grant to this FAG amount
requirement.
For IV-E expenditures, as with the Matching Grant MOE, expenditures
made in accordance with Federal IV-E program requirements may count
toward this MOE requirement. These include the Federal share and the
Territories' share of IV-E expenditures and expenditures funded with
the
[[Page 62169]]
Territories' own funds that meet Federal IV-E program requirements.
How will we know if a Territory failed to meet the Matching Grant
funding requirements at Sec. 274.80? (Sec. 274.83)
We are currently developing a separate Territorial Financial Report
for the Territories. We will require this report to be filed quarterly;
it will apply to all programs subject to section 1108. This report will
cover TANF MOE and Matching Grant MOE requirements. For the Matching
Grant, Territories will report expenditures claimed under title IV-E
and IV-A and the total expenditures (including Federal) made to meet
the requirement that they spend up to their Family Assistance Grant
annual allocations.
We would not require Territories to file the TANF Financial Report;
however, they must report comparable information on the Territorial
Financial Report. Furthermore, if one of the Territories fails to file
the Territorial Financial Report or to include certain information in
that report, it would be treated like a State that fails to file its
TANF Financial Report and subject to the penalty for failure to report
at Sec. 272.1(a)(3).
What will we do if a Territory fails to meet the Matching Grant funding
requirements at Sec. 274.80? (Sec. 274.84)
The statute does not address the consequences for a Territory if it
fails to meet the Matching Grant MOE and the FAG amount requirements.
The proposed rule provides that we disallow the entire amount of a
fiscal year's Matching Grant if the Territory fails to meet either
requirement. This is because the statute provides that the Matching
Grant funds are only allowable if both requirements are met. Thus, if
the Territory does not meet either one or both of the requirements, it
must return the funds to us. We will get the funds back by taking a
disallowance action.
A disallowance represents a debt to the Federal government.
Therefore, we will apply our existing regulations at 45 CFR part 30.
Once we issue a disallowance notice, we can require a Territory to pay
interest on the unpaid amount.
What rights of appeal are available to the Territories? (Sec. 274.85)
The Territory may appeal a disallowance decision in accordance with
45 CFR part 16. As these are not penalties, the reasonable cause and
corrective compliance provisions of section 409 do not apply. Section
410, covering the appeals process in TANF, also does not apply.
F. Part 275--Data Collection and Reporting Requirements
General Approach
There are a substantial number of specific data reporting
requirements on States under the TANF program. Some of these reporting
requirements are explicit, primarily in section 411(a); others are
implicit, e.g., States represent the source of information for reports
that the Secretary must submit to Congress and for the determination of
penalties.
These data requirements support two complementary purposes: (1)
they enable determinations about the success of TANF programs in
meeting the purposes described in section 401; and (2) they assure
State accountability for key programmatic requirements. In particular,
they ensure accurate measurement of State performance in achieving the
work participation rates in section 407 and other objectives of the
Act.
These purposes can only be achieved if data are comparable across
States and over time. At section 411(a)(6), the TANF statute provides
that, to the extent necessary, the Secretary shall provide definitions
of the data elements required in the reports mandated by section
411(a). That this is one of the few places in which the law authorizes
regulation by the Secretary reflects the importance of collecting
comparable data.
With respect to the first purpose, measuring the success of TANF
programs, the data requirements of section 411(a) reflect particular
features of the TANF program. States have collected and reported
similar data on the characteristics, financial circumstances, and
assistance received by families served by the AFDC and JOBS programs
for many years. By requiring the collection of similar data under TANF,
the statute enables the Congress, the public, and States to observe how
welfare reform changes the demographic characteristics and the
financial circumstances of, and the self-sufficiency services received
by, needy families. In so doing, it facilitates comparisons across
States and over time and promotes better understanding of what is
happening nationwide--how States are assisting needy families; how they
are promoting job preparation, work, and marriage; what is happening to
the number of out-of-wedlock births among assisted families; and what
kinds of support two-parent families are receiving.
With respect to ensuring accurate measurement of work
participation, section 411(a)(1)(A)(xii) specifically requires States
to report on the ``information necessary to calculate participation
rates under section 407.'' Given the significance of the work rates for
achieving the objectives of TANF and for determining whether States
face penalties, this is an area where accurate and timely measurement
is particularly important.
Our goal in implementing the data collection and reporting
requirements of the Act is to collect the data required and necessary
to monitor program performance. A secondary goal is to give States
clear guidance about what these requirements entail and the
consequences of failing to meet the requirements.
At the same time, however, we are sensitive to the issue of
paperwork burden and committed to minimizing the reporting burden on
States, consistent with the TANF statutory framework. In this context,
where applicable, we have considered the comments we received when we
proposed the draft Emergency TANF Data Report. (OMB subsequently
approved this reporting form, and we issued it on September 30 as TANF-
ACF-PI-97-6, Form ACF-198.) However, we welcome additional comments on
whether these proposed rules, and appendices, are consistent with our
interest in both minimizing reporting burdens and meeting TANF
requirements.
External Consultation
Data collection and reporting issues were a critical part of the
agenda for the external consultations ACF held during the past fall and
winter. We also engaged in consultations when we issued a draft
Emergency TANF Data Report for public comment this past summer.
In general, States expressed the view that the statutory provisions
on data collection are too onerous. They recommended that ACF limit the
burden on States and issue minimum regulatory requirements. However,
some State officials acknowledged that they were currently collecting
and reporting most of the case-specific data required by the Act as a
part of the previous AFDC/JOBS program and the Quality Control
reporting system.
Advocates and researchers generally recommended more data
collection in order to track program effects on employment and child
and family well-being.
Other Federal agencies (e.g., Census Bureau, Bureau of Economic
Analysis of the Department of Commerce, Congressional Research Service)
have been major users of our past program
[[Page 62170]]
data and strongly recommended the continuation of a number of current
data elements or collection instruments, e.g., the monthly Caseload
Data (or FLASH) Report.
Overview of Part 275
Under this NPRM, States must submit two quarterly reports (the TANF
Data Report and the TANF Financial Report) and two annual reports (a
program and performance report for the annual report to Congress and,
as an addendum to the fourth quarter Financial Report, State
definitions and other information).
Most of the information we propose to collect is required by
section 411(a). We do not have the authority to permit States to report
only some of the data required in section 411(a), and our authority to
require expanded data reporting is limited. We are, however, proposing
to require some additional data elements necessary to: ensure
accountability under section 409(a) (penalties); meet other statutory
requirements, e.g., under section 403 (grants to States) and section
405 (administrative provisions); and assess State achievement of
program goals, e.g., rankings of State programs under section 413(e).
Before we discuss each of the quarterly and annual reports in
detail, we present an overview of the major provisions of this part.
1. We are proposing that each State, in the TANF Data Report--
Collect and report the case record information on
individuals and families and other data, as required in section 411(a).
Collect and report information to monitor State compliance
with the work requirements in section 407, as authorized by section
411(a)(1)(A)(xii).
Collect and report information to implement the penalty
provisions in section 409(a)(9). This penalty applies to time limits on
receipt of assistance.
Collect and report a minimum number of items as break-outs
of the data elements specified in section 411(a), such as citizenship
status, educational level, and earned and unearned income; and a few
additional items necessary to the operation of a data collection
system, including Social Security Numbers.
Collect and report a minimum number of data elements
related to child care.
2. We are proposing that each State, in the TANF Financial Report
(or, as applicable, the Territorial Financial Report)--
Collect and report information necessary to estimate the
amounts to be paid to a State each quarter pursuant to section
405(c)(1).
Collect and report information on Federal, State, and MOE
expenditures under sections 411 (a)(2), (a)(3), and (a)(5); information
for the purpose of implementing section 409(a)(1) (penalty for misuse
of funds), section 409(a)(7) (maintenance of effort), section
409(a)(10) (Contingency Fund MOE requirements), section 409(a)(12)
(replacement of funds requirement), section 403(b)(4) (Contingency Fund
reconciliation); and data to carry out our financial management
responsibilities for Federal grant programs under 45 CFR part 92.
3. We are proposing that each State--
At State option, collect and report data on individuals
and families served by separate State MOE programs if a State wishes to
receive a high performance bonus, qualify for work participation
caseload reduction credit, or be considered for a reduction in the
amount of the penalty for failing to meet the work participation
requirements.
4. We also propose to--
Define ``TANF family'' for data collection and reporting
purposes only.
Define ``a complete and accurate report.'' This definition
will serve as a compliance standard for implementing the penalty in
section 409(a)(2) for failure to submit quarterly reports required
under section 411(a).
Define ``scientifically acceptable sampling method'' as a
basis for State sampling systems and reporting disaggregated data in
the TANF Data Report.
Require States to file quarterly reports electronically.
5. We propose to minimize reporting burden by--
Limiting required reports to a quarterly TANF Data Report,
a quarterly TANF Financial Report (or Territorial Financial Report), an
annual program and performance report, and an annual addendum to the
fourth quarter Financial Report.
Requiring States to report information only on the
demographic and financial characteristics of families applying for
assistance whose applications are approved. We will conduct special
studies to obtain information on families who apply but are not
approved, e.g., families denied, diverted, or otherwise referred. These
data are required for purposes of section 411(b).
Consolidating all aggregate financial and expenditure data
into a single financial report. States had to submit three separate
financial reports for the prior programs.
Using the data collected under section 411(a) to conduct
annual reviews and rankings of successful State work programs under
section 413(d) and adding two data elements in order to conduct
rankings of State efforts to reduce out-of-wedlock births, as required
under section 413(e).
Clarifying how States may use sampling to collect and
report data as specified in section 411(a)(1)(B).
As an additional aid to States, we will develop a pc-based software
package. This package will facilitate data entry and create
transmission files for each report. We also plan to provide some edits
in the system to ensure data consistency, and we invite States to
comment on what sort of edit capability they would like to see in the
system. The transmission files created by the system will use a
standard file format for electronic submission to ACF.
Finally, in order to provide an opportunity for maximum review and
public comment on the reporting requirements, we have attached the
proposed quarterly reports (including the specific data elements and
instructions) as Appendices A through G to part 275. We will revise
these instruments following the comment period on the NPRM and will
issue them to States through the ACF policy issuance system. We will
not re-publish these appendices as a part of the final rule. However,
we will make appropriate changes in the data collection instruments in
the Appendices as a result of comments received.
We have submitted copies of this proposed rule and the proposed
data reporting requirements to OMB for its review of the information
collection requirements. We encourage States, organizations,
individuals, and others to submit comments regarding the information
collection requirements to ACF (at the address above) and to the Office
of Information and Regulatory Affairs, OMB, Room 3208, New Executive
Office Building, Washington, DC 20503, ATTN: Desk Officer for ACF.
Section-by-Section Discussion of this Part
The following discussion provides additional background information
on, and a discussion of, each section in part 275. We discuss the
specific data elements we are proposing, the statutory authority and
other bases for their inclusion, the issues and options considered in
developing the proposals in this part, and our rationale for taking a
particular approach.
[[Page 62171]]
What does this part cover? (Sec. 275.1)
This section provides an overview of the scope and content of part
275. Paragraph (a) specifies the statutory provisions on which our data
collection proposals are based. We will reference these statutory
citations throughout our discussion of the specific reports, data
collection instruments, and data elements in subsequent sections of
this preamble.
Paragraph (b) describes the two quarterly reports and the two
annual reports we propose to require. We discuss each of these reports
and the specific data elements in the reports more fully in Sec. 275.3
and Sec. 275.9 below.
Paragraph (c) describes the optional reporting of case-record data
for separate State MOE programs. We discuss our rationale for this
proposal more fully in the discussion on Sec. 275.3(d) below so that
States may understand how we will evaluate certain benefits and options
in deciding whether to report MOE case-record data.
Paragraph (d) describes the other provisions we propose to cover in
part 275. These are the use of sampling to meet the data collection and
reporting requirements, electronic submission of reports, due dates,
and our plan to implement the penalty for failure to submit a timely
report, as required by section 409(a)(2). You can find a more complete
discussion of these matters in Secs. 275.4-10.
Paragraph (e) calls attention to the eleven Appendices at the end
of part 275. These Appendices contain the proposed data collection
instruments and instructions for all of the quarterly reports. The
Appendices also contain a summary of sampling specifications and three
reference charts that link each data element in the three sections of
the TANF Data Report to its specific statutory authority and our
rationale for collecting these data. We have included these materials
in order to obtain more informed comment on the proposed reporting
requirements.
Although the Act requires that the reporting requirements for
States under section 411 also apply to Indian tribal grantees, we will
address data collection and reporting by Tribes in a separate NPRM that
will deal with the full range of Tribal issues.
We will also address additional data collection requirements, if
any, to implement the high performance bonus in a separate NPRM
scheduled to be published later this year.
What definitions apply to this part? (Sec. 275.2)
The data collection and reporting regulations rely on the general
TANF definitions at part 270.
In this part, we are proposing one additional definition--for data
collection and reporting purposes only--a definition of ``TANF
family.'' This definition will apply to data collection for both the
TANF program and any separate State programs.
The law uses various terms to describe persons being served under
the TANF program, e.g., eligible families, families receiving
assistance, and recipients. Unlike the AFDC program, there are no
persons who must be served under the TANF program. Therefore, each
State will develop its own definition of ``eligible family,'' to meet
its unique program design and circumstances; similarly, each State will
have its own definition of ``eligible family'' for State MOE programs.
We do not expect coverage and family eligibility definitions to be
comparable across States. Therefore, we have proposed a definition that
will enable us to better understand the different State programs and
their effects. We are proposing that the definition of ``TANF family''
start with the persons in the family who are actually receiving
assistance under the State program. (Any non-custodial parents
participating in work activities will be included as a person receiving
assistance in an ``eligible family'' since States may only serve non-
custodial parents on that basis.) We, then, would include three
additional categories of persons living in the household, if they are
not already receiving assistance. These three additional categories
are:
(1) Parent(s) or caretaker relative(s) of any minor child receiving
assistance;
(2) Minor siblings of any child receiving assistance; and
(3) Any person whose income and resources would be counted in
determining the family's eligibility for or amount of assistance.
We believe information on these additional individuals is critical
to understanding the effects of TANF on families and the variability
among State caseloads, e.g., to what extent are differences due to, or
artifacts of, State eligibility rules.
We need information on the parent(s) or caretaker
relative(s) (i.e., an adult relative, living in the household but not
receiving assistance, and caring for a minor child) to understand the
circumstances that exist in no-parent (e.g., child-only) cases not
covered by key program requirements, such as time limits and work
requirements.
We need information on minor siblings in order to
understand the impact of ``family cap'' provisions.
We also need information on other persons whose income or
resources are considered in order to understand the paths by which
families avoid dependence.
We considered alternative terms on which to base TANF data
collection such as the ``TANF assistance unit'' or ``TANF reporting
unit.'' However, as participants in the external consultation process
pointed out, these terms no longer have a commonly understood meaning,
particularly as States re-design their assistance and service programs.
For research and other purposes, there was interest in collecting
data on a broader range of persons in the household, e.g., any other
person living in the household such a grandmother or a non-marital
partner of the mother.
We determined that we should limit reporting to those categories of
persons on whom the States will gather data for their own purposes and
for which information will be directly relevant to administration of
the TANF program.
In the interest of greater comparability of data, we also
considered defining terms such as ``parent,'' ``caretaker relative,''
and ``sibling.'' We chose not to define these terms because we were
concerned that our data collection policies could inadvertently
constrain State flexibility in designing their programs. We believe
that variation among State definitions in these areas will not be
significant and will not decrease the usefulness of the data.
We believe this definition of family will not create an undue
burden on States since these additional persons are either all
individuals who are a part of an aided child's immediate family or
whose income or resources the State already considers in determining
eligibility.
We offer one clarifying note regarding data collection in relation
to non-custodial parents. As we indicated in the discussion of part
271, the provision of work activities to a non-custodial parent need
not cause a State to consider the family a two-parent family for the
purposes of the work participation rate. States could define two-parent
families as those with two parents living in the same household.
Finally, we want to emphasize that we have proposed this definition
of ``TANF family'' for reporting purposes only. Our aim is to obtain
data that will be as comparable as possible under the statute, and, to
the extent possible, over time. Some comparability in data collection
is necessary for assessing program performance; understanding
[[Page 62172]]
the impact of program changes on families and children; and informing
the States, the Congress, and the public of the progress of welfare
reform.
What reports must the State file on a quarterly basis? (Sec. 275.3)
We are proposing in paragraph (a) to require that each State must
file two reports on a quarterly basis--the TANF Data Report and the
TANF Financial Report (or, as applicable, the Territorial Financial
Report). We are also establishing the circumstances under which a State
may opt to submit a quarterly TANF-MOE Data Report.
The TANF Data Report consists of three sections whose contents are
discussed below. You will find these proposed sections in their
entirety in Appendices A-C to this part. You will find the proposed
TANF Financial Report in Appendix D and the three sections of the
proposed TANF-MOE Report in Appendices E-G. (The Territorial Financial
Report is under development.)
By publishing these data collection instruments in the NPRM, we are
providing the public with an opportunity for a thorough review of the
specific data elements proposed to be collected. We anticipate that
this opportunity for an in-depth public review of these instruments
will result in more useful and informed suggestions and
recommendations.
Section 411(a)(1)(A)(i)-(xvii) authorizes monthly collection and
quarterly reporting of a specified list of more than 30 data elements.
Sections 411(a)(2)-(5) also authorize quarterly reports on
administrative costs, program expenditures for needy families, non-
custodial parents' participation in work activities, and transitional
services to families who no longer receive assistance due to
employment.
The data elements specified in section 411(a) represent the
overwhelming majority of the data elements we are proposing to collect
in the TANF Data Report and the TANF-MOE Report. Some section 411(a)
data elements are also included in the TANF Financial Report in
addition to information required by section 403(b)(4) (Contingency Fund
reconciliation requirements), section 405(c)(1) (computation of
payments to States), section 409(a)(10) (Contingency Fund MOE
requirements), section 409(a)(12) (failure to expend additional State
funds to replace grant reductions), and information to carry out our
financial management and oversight responsibilities.
Where we have added data elements beyond those explicitly stated in
section 411(a), we explain our rationale for their inclusion.
As a further aid to public analysis and comment, we have attached
three statutory reference tables that correspond to the three sections
in the TANF Data Report. These tables list each data element we are
proposing to collect and the applicable statutory citation or other
rationale for its collection. See Appendices I-K.
TANF Data Report: Disaggregated Data--Sections One and Two
(Sec. 275.3(b)(1))
Paragraph (b)(1) of this section proposes to require that each
State must file the disaggregated case record information, as specified
in section 411(a), on: (1) families receiving TANF assistance (Section
One); and (2) families no longer receiving TANF assistance (Section
Two). (See Appendices A and B respectively for the specific data
elements.)
The information we propose to be collected includes identifying and
demographic information; data on the types and amount of assistance
received under the TANF program; the reasons for and amount of any
reductions in assistance; data on adults, including the Social Security
Number, educational level, citizenship status, work participation
activities, employment status, and earned and unearned income; and data
on children, including the Social Security Number, educational level,
and child care information.
The statute requires that, in her Annual Report to Congress, the
Secretary must report on the financial and demographic characteristics
of families leaving assistance. However, it does not directly specify
the data elements that States must submit. In specifying the data
elements in Section Two of the TANF Data Report (for families no longer
eligible), we borrowed heavily from the data elements specified for
families receiving TANF assistance. We have assumed that States will
not have a great deal of difficulty collecting these data because: (1)
they are reporting similar data for TANF cases; (2) we only expect
States to collect these data at the time the families are leaving the
rolls; and (3) we substantially reduced the total number of elements
States must report. However, we invite comments on whether the value of
the data required in this section (e.g., in terms of preparing the
Annual Report, conducting research, and tracking the impacts of State
policies) justifies the burden on States. We encourage commenters to be
specific about the value and burden of individual data elements.
Appendix A contains 99 data elements, most of which are required to
be reported by section 411(a)(1)(A). As indicated above, we have
prepared, at Appendix I, a list of each data element in section one of
the TANF Data Report (Appendix A) and its statutory basis or other
rationale for its inclusion. The data elements not specified in section
411(a) are discussed more fully below.
a. Administration of a data collection system. The following items
are not required by statute, but they are necessary to, and implicit
in, the administration of a data collection system:
1. State FIPS Code
2. Reporting Month
3. Sampling Stratum
4. Family Case Number
5. Sample Case Disposition
Other proposed data elements necessary for the administration of
the data collection system and our rationale for their inclusion are as
follows:
6. ZIP Code--This information is readily available and is needed
for geographic coding and rural/urban analyses.
7. Family Affiliation--We need this information to identify which
persons in the family are receiving assistance in order to monitor work
participation, receipt of assistance, and time limits. We also need
this information to understand the relationship between the members of
the household.
8. Social Security Number--This information is also readily
available. States use Social Security Numbers to carry out the
requirements of IEVS. (See sections 409(a)(4) and 1137.) This element
will enable us to track recipients who move or become part of a
different family. We also need this information for research on the
circumstances of children and families as required in section 413(g).
9. Gender--This is a standard demographic data element. The
information could be collected under a relationship element (e.g.,
father, mother, brother). However, by using this single element, the
coding is simpler; it is easier to report; and, thus, is less
burdensome.
b. Break-outs. We are proposing to collect additional information
as break-outs of certain single data elements in section 411(a). Some
break-outs are required by section 411(a). See ``Amount and Type of
Assistance'' (10 items), ``Reason for and Amount of Reduction in
Assistance'' (11 items), ``Adult Work Participation Activities'' (14
items), and ``Educational Level'' (two items).
[[Page 62173]]
Other specific break-outs not specified in section 411(a) but that
we believe States have available and that are necessary for
comparability of data are:
1. Earned income. Two break-outs ask for the dollar amount of
wages, salaries and other earnings and the amount of EITC.
2. Unearned income. Five break-outs ask for the amount of Social
Security benefits, SSI benefits, Worker's Compensation benefits, child
support, and other.
3. Subsidized housing. Data element #13 asks for an indication of
the source of the subsidy, e.g., public housing, HUD rent subsidy, or
other.
4. Food Stamps. Data element #15 asks for the type of Food Stamps
assistance, i.e., allotment, cash, or subsidy.
On these last two items, in particular, we are interested in
receiving comments on whether the value of the break-out information
(e.g., in terms of enabling comparisons with historical information,
conducting research, and assessing dependency) justifies the additional
reporting burden on States.
One final break-out area is Citizenship. We propose to require nine
break-outs of the data element ``citizenship'' in section
411(a)(1)(A)(xv). We believe it is necessary to track the proper use of
TANF funds in terms of the types of aliens served to ensure that TANF
benefits are going to eligible aliens. Section 409(a)(1) provides for a
penalty if funds are used in violation of the requirements of the law.
PRWORA created complex and potentially confusing eligibility criteria
for different types of qualified aliens; the requirements are made even
more confusing by the imposition of certain time limits in terms of
United States residency for certain groups of qualified aliens, such as
refugees, and by the time limit on receipt of TANF assistance for
everyone. We also believe States will need the information in the
break-outs to carry out their eligibility determinations.
c. Data elements necessary to implement other sections of the Act.
The following items are not required by section 411(a) but are
necessary to implement other statutory requirements:
1. Cooperation with child support--Section 409(a)(5). (Data element
#94)
2. Time limits for receipt of assistance--Section 409(a)(9). (Data
elements #44 and #62-65)
3. New Applicants--Section 411(b). (Data element #10)
4. Amount of the family's cash resources--Section 411(b). (Data
element #21)
d. Child Care. Five data elements are identical to the child care
information required to be reported on families served by the Child
Care Development Fund (CCDF). The purpose of this collection of
information is to track child care provided under TANF in relation to a
State's provision of CCDF child care. (Child care provided under CCDBG
with funds transferred from TANF is captured through the CCDF program,
not TANF data collection.) It is also necessary for assessing program
performance and the total financial commitment a State is making to
achieve the work objectives of the Act.
The second section of the TANF Data Report, Appendix B, contains 46
elements applicable to families no longer receiving assistance. The
data elements in Appendix B are identical to those in Appendix A except
that some elements are omitted as not applicable and others consist of
a single data element with no break-outs. See Appendix J for the
statutory reference table applicable to Appendix B.
TANF Data Report: Aggregated Data--Section Three (Sec. 275.3(b)(2))
Paragraph (b)(2) of this section proposes that each State must file
quarterly aggregated information. (See Appendix C for the list of data
elements.)
The data elements in this section of the TANF Data Report cover
families receiving, applying for, and no longer receiving TANF
assistance. They include total figures on the number of approved and
denied applications; the number of no-parent (e.g., child-only), one-
parent, and two-parent families; the number of child and adult
recipients; the number of minor child heads-of-households; the number
of out-of-wedlock births; the number of births; the number of non-
custodial parents participating in work activities; the number of
closed cases; and the total amount of TANF assistance provided.
This third section of the TANF Data Report contains 19 data
elements. Ten of the 19 are specified in, or are break-outs of data
elements in, section 411(a).
Technical amendments to PRWORA under section 5507 of Pub. L. 105-33
added a new section 411(a)(6) to the TANF data collection and reporting
requirements. This new paragraph (6) requires reports on ``the number
of families and individuals receiving assistance . . . (including the
number of 2-parent and 1-parent families).'' It also asks for the total
dollar value of such assistance received by all families.
We propose two break-outs for these new data elements in section
411(a)(6). As a break-out under the ``number of families,'' we are
proposing to collect data on the number of no-parent families and the
number of minor-child heads-of-household. As a break-out under ``number
of individuals,'' we are proposing to require data on the number of
adult recipients and the number of child recipients.
In addition to the statutorily-based data elements, we have added
nine data elements. We are proposing to require three data elements
(#1-3) as necessary to administer a data collection system and two data
elements (#5 and #19) as necessary to verify and validate the quality
and consistency of the disaggregated data. Because we allow States to
report disaggregated data on a sample basis, we need certain aggregated
data to test the reliability of estimates and the representativeness of
the disaggregated sample data.
Finally, two data elements (#4 and #6) are required by section
411(b) for the report to Congress, and two elements (#17-18) are
required by section 413(e) for the annual rankings of States related to
their efforts to prevent out-of-wedlock births. See Appendix K for the
Statutory Reference Table for Appendix C.
This section of the TANF Data Report is made up of aggregate data
almost all of which was previously reported under the AFDC and JOBS
programs. We have: consolidated the data elements in the previously
required monthly FLASH Report and two quarterly aggregated data
reports--the 3637 Report and the 3800 Report--into a single quarterly
report; eliminated the monthly report; and greatly reduced the number
of data elements. We believe the States will welcome the reduced burden
in this area.
In addition, we have further minimized the reporting burden on
States by how we propose to collect ``demographic and financial
characteristics of families applying for assistance.'' In interpreting
this requirement in section 411(b), we propose to collect information,
not on all families who apply, but only on those whose applications are
newly approved. We propose to collect any additional information that
is needed on applicants who are not approved through a special study or
studies.
We adopted this approach because the question of ``what is an
application'' and ``what is a denied application'' (as opposed to a
referral or a diverted family, for example) is often very difficult to
determine. If we were to require data on all applications, we believe
that considerable portions of the
[[Page 62174]]
demographic and financial data would be incomplete or entirely missing.
We also believe that there would be extraordinary variability in the
information provided across States. This variability would have an
adverse impact on the quality of any estimates based on these data and
on our ability to interpret the data.
Also, data collection on all applicants could be very burdensome on
States as they would need to create an additional sample frame to
select samples for all applications and to collect data on families who
are not receiving assistance. These families may be difficult to locate
and unwilling to cooperate.
As noted earlier, in our external consultation, users of these data
expressed strong support for continued collection of this information.
We received recommendations that additional data elements should be
added. In many instances, we agreed with the importance of the data,
but we could not justify its necessity for the administration of the
program, given our limited regulatory authority.
We also considered various options in how to design a data
collection system to minimize the burden on States. The statutory
requirements include monthly collection, quarterly reports, annual
reports, and other periodic activities (e.g., annual rankings of
States, application of penalties). We have tried to simplify these
requirements in our proposal to include all data collection in the
quarterly TANF Data Report and the TANF Financial Report (or, as
applicable, the Territorial Financial Report), including a fourth
quarter addendum, and one annual program and performance report. Since
the data being collected apply to individuals and families, it is
easier for a State to modify its current data collection system than to
set up new systems with different periodicities. We believe that: (1)
States will be able to accommodate to this proposed system of quarterly
reports, one annual addendum to the quarterly reports, and one annual
report; and (2) by this simplification of data collection and
reporting, we will have come a long way to increasing the completeness
and accuracy of the data.
TANF Financial Report (Sec. 275.3(c))
We propose in paragraph (c) to require each State to file a TANF
Financial Report quarterly. See Appendix D for the content of the TANF
Financial Report and the content of the addendum that must be filed
with the fourth quarter TANF Financial Report as described in
Sec. 275.9.
We will be issuing a separate Territorial Financial Report for the
Territories because they have different funding sources and different
MOE requirements. The Territorial Financial Report will incorporate the
requirements of the TANF Financial Report--including the data elements,
fourth quarter addendum, and filing deadlines. Also, if one of the
Territories fails to file the Territorial Financial Report or to
include certain information in that report, it would be treated like a
State that fails to file its TANF Financial Report and subject to the
penalty for failure to report at Sec. 272.1(a)(3).
We propose that States report information in two broad categories--
``Expenditures on Assistance'' and ``Expenditures on Non-Assistance''--
because we need to track the reasonableness of the definition of
assistance for Federal funding and State MOE purposes. These data will
assist us in understanding the extent to which recipients of benefits
and services are covered by program requirements. As we indicated in
the discussion of the definition of ``assistance'' in Sec. 270.30, we
want to make sure that our definition does not have the effect of
undermining the objectives of the Act. The data will also be important
in helping us validate the data received on disaggregated cases.
The TANF Financial Report is designed to serve multiple purposes:
(1) To gather data required under section 411 (a)(2), (a)(3), and
(a)(4), i.e., data on administrative costs, State expenditures on
programs for needy families, and transitional services for families no
longer receiving assistance due to employment;
(2) To gather quarterly estimates for Federal TANF grants as
authorized by section 405(c)(1);
(3) To monitor expenditures and closeout TANF grants for a fiscal
year, in accordance with standard financial reporting requirements for
federal grant programs;
(4) To determine if a State has met its TANF MOE requirement under
section 409(a)(7);
(5) To determine compliance with the limitations on administrative
costs as specified in section 409(a)(7)(B)(i)(I)(dd);
(6) To accomplish the annual reconciliation for the Contingency
Fund under section 403(b);
(7) To assure compliance with section 409(a)(1) (misuse of funds),
section 409(a)(10) (Contingency Fund MOE requirements), and section
409(a)(14) (State reduction of assistance for recipients refusing
without good cause to work; and
(8) To monitor the expenditure of additional State funds to replace
grant reductions.
With respect to MOE and Contingency funds, TANF MOE and Contingency
Fund reporting for a fiscal year culminate with the submission of the
fourth quarter financial report for the fiscal year. However, because
Federal TANF funds granted for a fiscal year are available until
expended, States must continue reporting on State expenditures of
Federal funds each quarter until they have expended all their funds.
Paragraph (c)(4) proposes to require that if a State is expending
funds received in a prior fiscal year, it must file a separate
quarterly TANF Financial Report (or, as applicable, Territorial
Financial Report) for each fiscal year that provides information on how
that fiscal year's funds were expended.
For example, if a State reserves FY 1997 funds through the second
quarter of FY 1999, the State must submit quarterly reports on FY 1997
funds with the final report covering the second quarter of FY 1999.
During this same period, a State must submit its reports for FYs 1998
and 1999.
The MOE expenditure information in the TANF Financial Report is not
an optional reporting requirement, as is the information on families
served by separate State programs in the TANF Data Report. States must
report such expenditure data as a part of the evidence required to
assure that State MOE expenditures are ``qualified.''
OMB has approved the use of an interim financial reporting form
(#0970-0165) on an emergency basis until it approves the TANF Financial
Report.
We have not attached a statutory reference chart for Appendix D.
With a few exceptions, the data elements in the TANF Financial Report
are required by section 411, are needed to determine if a State has met
the TANF MOE requirements under section 409(a)(7), and are necessary to
carry out our financial management responsibilities under 45 CFR part
92.
The exceptions and our rationale for their inclusion are as
follows:
1. Expenditure data on cash assistance, work subsidies and
activities, and child care. These expenditure categories provide
information to assess a State's use of funds (see penalty sections
409(a)(1) and 409(a)(7)) and are a basis for determining a State's
total commitment to work (see sections 409(a)(3) and 409(a)(9)).
[[Page 62175]]
2. Expenditures on systems. For Federal TANF funds, the statute
excludes systems costs from the 15 percent limit on administrative
costs. The statute is silent as to whether such costs are within the 15
percent limit on administrative costs for State MOE expenditures. We
are proposing that systems costs may also be excluded from the State
calculation. Attaching information on State systems expenditures will
enable us to judge the implications of our proposal to exclude such
costs from the administrative cost cap applicable to State funding.
3. Fourth Quarter Addendum.
State reporting of families excluded from work rates and
time-limit calculations under the State definition of families
receiving assistance.
States must annually report the number of families excluded from
the overall work participation rate (at Sec. 271.22), the two-parent
rate (at Sec. 271.24), and the time-limit calculations (at Sec. 274.1),
together with a description of the family circumstances that explains
why they were excluded. The purpose of this information is to provide a
national perspective as to whether States are avoiding critical
provisions of the law by creating child-only cases.
State definition of work activities.
This State definition must also be reported annually. We need this
information to monitor the work participation requirements in section
407. See also our preamble discussion in Sec. 271.30, ``What are work
activities?''
Description of transitional services.
This description of transitional services provided to families that
are not receiving TANF assistance because of employment implements
section 411(a)(5).
Description of how a State will reduce the amount of
assistance payable to a family when the individual refuses to engage in
work.
This description of how a State carries out pro rata (or more)
reductions provides information that is necessary to implement section
409(a)(14). See also Sec. 271.54 and 55.
Descriptive and expenditure-related information on the
State's separate MOE program.
This information is necessary to carry out requirements of section
409(a)(7). See the discussion of Sec. 273.7 for additional details.
TANF-MOE Data Report (Sec. 275.3(d))
Paragraph (d) proposes to require that a State must report case
record data on separate MOE programs if it wishes to be considered for
certain benefits and options under the Act.
The data elements we are proposing to collect on separate State
programs are identical in content to but fewer in number than the
demographic and work activity data we have proposed in paragraphs (b)
and (c) of this section. (See Appendices E, F, and G.)
We are proposing to collect information on separate State programs
in order to help ensure that State decisions to establish such programs
do not undermine the work provisions of the new law, undercut
Congressional intent to share child support collections between the
Federal and State governments, or have other negative consequences.
We believe that it is not possible to judge the impacts and
accomplishments of the State's TANF program by looking only at how a
part of the State's program is operating. We need information on the
separate State programs so that we can better identify which States are
truly successful in serving needy families, promoting work, and meeting
other legislative goals.
For example, a State could score well on a measure of its TANF
performance by relegating the most-difficult-to-serve families to a
separate State program in which they received no self-sufficiency
services. In reality, this State would be performing more poorly than a
State that achieved the same level of success with its TANF population,
but served all families through its TANF program. Similarly, a State
that ``reduced'' its TANF caseload by simply splitting its program into
a TANF program and a separate State program should not get credit for
caseload reduction in determining its work participation rate.
Thus, collection of data on separate State programs would give us
the capacity to look broadly at issues of work effort, caseload
reductions, family structure, and other measures of performance.
We plan to look at overall participation levels, including
participation by families receiving assistance under separate State
programs, to assess how well States are meeting their responsibilities
to help families toward self-sufficiency. These overall participation
levels could affect the size of a State's penalty if it does not meet
the rates at section 407. However, we base our initial determination
that a State is subject to a penalty under section 407 on the work
participation rates of families receiving TANF assistance, not these
overall participation levels.
The differences between the TANF Data Report and the TANF-MOE Data
Report are minor. Appendix A contains six data elements not included in
Appendix E. They are: Tribal Code, Amount of Monthly Child Care Co-
Payment, Is the TANF Family Exempt from the Federal Time Limit
Provision, Type of Child Care, Total Monthly Cost of Child Care, and
Total Monthly Hours of Child Care Provided During the Reporting Month.
Appendix B contains one data element not in Appendix F--Tribal Code
Number. Appendix C contains four data elements that do not appear in
Appendix G. They are: Tribal Code, Total Number of Applications, Total
Number of Approved Applications, and Total Number of Denied
Applications.
The statutory authority and rationale for these data elements are
found in Appendices I-K.
When are quarterly reports due? (Sec. 275.4)
Paragraph (a) of this section implements section 409(a)(2), as
amended by Pub. L. 105-33, which requires that States file quarterly
reports within 45 days following the end of the fiscal quarter or be
subject to a penalty.
Paragraph (c) implements section 116 of PRWORA in defining the
effective date of the reporting requirements for individual States,
depending on the date they began implementation of the TANF program.
Section 116 states that the reporting requirements shall take effect on
the later of July 1, 1997, or six months after the Secretary receives a
TANF Plan from the State. For operational purposes, we interpret this
to mean that the reporting period begins six months after the State
implements the program.
For example--
------------------------------------------------------------------------
If a State implements TANF Reporting period Reports due
------------------------------------------------------------------------
March 1, 1997.................... September 1, 1997- 11/14/97
September 30, 1997.
April 10, 1997................... October 10, 1997- 02/14/98
December 31, 1997.
July 1, 1997..................... January l, 1998-March 05/15/98
31, 1998.
------------------------------------------------------------------------
[[Page 62176]]
These effective dates apply to the TANF Data Report and the TANF
Financial Report, including the annual addendum to the fourth quarter
TANF Financial Report.
Paragraph (b) proposes that a State may collect and submit its
quarterly TANF-MOE Data Reports at the same time as it submits TANF
Data Reports, or it may submit them at the time it seeks to be
considered for a high performance bonus, a caseload reduction credit,
or a reduction in the penalty for failing to meet work participation
requirements, as long as the data submitted are for the full period on
which these decisions will be based.
Although we believe that it will be easier for States (and State
data collection systems) to file all data reports at the same time,
this additional flexibility may be useful for some States.
May States use sampling? (Sec. 275.5)
This section implements section 411(a)(1)(B) in permitting the
States to meet the disaggregated data collection and reporting
requirements by submitting data based on the use of a scientifically
acceptable sampling method approved by us. States may not submit
aggregated data based on a sample, e.g., the TANF Financial Report.
We have proposed a definition of ``scientifically acceptable
sampling method'' in paragraph (b) of this section. This definition
reflects generally acceptable statistical standards for selecting
samples and is consistent with existing AFDC/JOBS statistical policy.
(See Appendix H for a summary of the sampling specifications.)
At a later date we will issue the TANF Sampling and Statistical
Manual that will contain instructions on the approved procedures and
more detailed specifications for sampling methods.
Must States file reports electronically? (Sec. 275.6)
We are proposing to require that States must submit all quarterly
reports--the TANF Data Report, the TANF Financial Report (or, as
applicable, the Territorial Financial Report), and the TANF-MOE Data
Report--electronically.
We are proposing electronic submission for several reasons. For
each collection of information, OMB regulations at 5 CFR 1320.8 require
Federal agencies to evaluate whether the burden on respondents can be
reduced by use of automatic, electronic, mechanical, or other
technological collection techniques. This Department has for many years
encouraged programs and grantees to use such non-paperwork approaches
to meet data collection requirements.
All States submitted data reports electronically under the prior
AFDC, JOBS, and the Quality Control data reporting systems. In external
consultation meetings, State representatives supported electronic
submission of both data and financial reports. Therefore, we conclude
that continuing electronic submission of data reports will not be a
burden on States and that requiring electronic submission of all data
and financial reports will reduce paperwork and administrative costs,
be less expensive and time-consuming, and be more efficient for both
States and the Federal government.
As noted earlier, we will develop and provide for State use a pc-
based software package to facilitate data entry and create transmission
files for each quarterly report.
We are considering developing, when feasible, an electronic
reporting format for the annual addendum to the TANF Financial Report
and the annual program and performance report as required in
Sec. 275.9. We would appreciate comments and suggestions on the
desirability and usefulness of this approach.
How will we determine if the State is meeting the quarterly reporting
requirements? (Sec. 275.7)
In order to set a standard of compliance for monitoring and penalty
purposes, we have proposed definitions of what will constitute ``a
complete and accurate report'' for disaggregated data reports, for
aggregated data reports, and for the TANF Financial Report (and, as
applicable, the Territorial Financial Report). We will use these
definitions in determining if the State is subject to any of the
penalties for which we are collecting data. (See Sec. 275.8 of this
part for the specific circumstances under which we will impose the
penalty for failure to report complete, accurate, and timely data under
section 409(a)(2).)
We will also use these definitions for monitoring the completeness
and accuracy of the data and financial reports under our authority in
section 411(a)(1)(B) to verify the quality of data submitted.
We believe these definitions are necessary to ensure that we
receive data reports that are in good order. We considered not
providing a definition or a standard of compliance, but rejected that
option because the data reports are so critical to our ability to
provide information to Congress, States, and the public on how welfare
reform is proceeding as well as to assess and hold States accountable
for program performance.
In the past, we have had problems obtaining complete and accurate
data. Errors have been common, thus creating substantial burdens for
ACF (in conducting edit checks) and for States (in revising and
correcting their reports). Because of errors and omissions, we have
also experienced significant delays in reporting national program data
to States, Congress, and the public. We welcome suggestions and
recommendations on ways to help assure more accurate data reporting
without creating undue burden on States.
We are concerned about complete, accurate, and timely data for
another reason. We are considering posting information from the
quarterly TANF Data Reports on the Internet for access by other Federal
agencies, legislators, researchers, the public, and others for a
variety of analytic and evaluation purposes. Posted data would allow
States and others to make comparisons among State programs,
accomplishments, outcomes, and levels of performance. If we put these
data in the public domain, the need for completeness and accuracy is
much greater because the likelihood increases that the numbers would be
used or published without appropriate caveats or consideration of their
limitations. In addition, posting data that could not be relied upon
defeats the purpose of making the data more accessible.
The standards for ``completeness and accuracy'' that we are
proposing for the TANF Financial Report (and Territorial Financial
Report) in paragraph (d) apply to all expenditures reported; i.e.,
Federal TANF, State TANF, Contingency Fund, and State MOE expenditures.
We propose that these expenditures be made in accordance with the
requirements at 45 CFR 92.20(a). Under this provision, all expenditures
must be traceable, so that we can determine if funds have been used
properly, and made in accordance with Federal and State laws and
procedures. For the ``completeness'' standard, we expect that States
will report expenditures for all data elements for which expenditures
are made in the quarter.
Also in paragraph (b), the proposed definition of ``a complete and
accurate report'' includes the statement that ``where estimates are
necessary, the State uses reasonable methods to develop these
estimates.'' We plan to review each State's methods and procedures for
developing these estimates through on-site verifications or technical
assistance visits.
[[Page 62177]]
Finally, regarding verification of data, the Secretary has the
authority under section 411(a)(1)(B) to verify the quality of the data
submitted by States. We will be exploring several approaches to
verification of data, including audits and reviews. We also remind
States, in paragraph (f), that backup documents need to be retained to
support the information in any report and for verification purposes.
Under what circumstances will a State be subject to a reporting penalty
for failure to submit quarterly reports? (Sec. 275.8)
In order to ensure that States file required reports, section
409(a)(2)(A) requires us to impose a penalty on a State if the State
has not filed the required report within 45 days following the last
month of a fiscal quarter. However, section 409(a)(2)(B) allows us to
rescind the penalty if the State files the report before the end of the
quarter immediately following the quarter for which the report was
required. These provisions are reflected in paragraphs (c) and (d) of
this section.
In paragraph (a), we propose to impose the penalty only with
respect to the two quarterly reports--the TANF Data Report and the TANF
Financial Report (or Territorial Financial Report), including the
fourth quarter annual addendum--and only under one or more of the
following five circumstances:
The State fails to file the TANF Data Report or the TANF
Financial Report (or Territorial Financial Report) on a timely basis.
The disaggregated data in the TANF Data Report is not
accurate or does not include all of the data elements required by
section 411(a) (other than section 411(a)(1)(A)(xii) regarding work
participation requirements) or the nine additional data elements
necessary to carry out the data collection system requirements.
The aggregated data in the TANF Data Report does not
include complete and accurate information on the ten data elements
required by section 411(a) and the five data elements necessary to
carry out the data collection system requirements and verify and
validate disaggregated data.
The TANF Financial Report (or Territorial Financial
Report) does not contain complete and accurate information on total
expenditures and expenditures on administrative costs and transitional
services, as required by section 411(a).
The annual addendum to the fourth quarter TANF Financial
Report (or Territorial Financial Report) does not contain the required
information on families excluded from the work participation and time-
limit calculations, the State's definition of work activities, and the
descriptive information on transitional services in the TANF program as
required by section 411(a).
This means that:
(1) For the disaggregated data in section one of the TANF Data
Report (Appendix A), we will impose a penalty if the section 411(a)-
based data elements are not complete and accurate and if the items
identified as necessary to carry out the data collection system
requirements are also not complete and accurate;
(2) For the disaggregated information in section two of the TANF
Data Report (Appendix B), the information required by section 411(a)
must be complete and accurate;
(3) For the aggregated data in section three of the TANF Data
Report (Appendix C), the section 411(a)-based data elements, and the
data elements necessary to meet the data collection systems
requirements and verify and validate the disaggregated data, must be
complete and accurate; and
(4) For the TANF Financial Report (or Territorial Financial
Report), a State must file complete and accurate information on its
definition of work activities, any families excluded from the work
participation or time-limit calculations because of the State's
definition of families receiving assistance, total program expenditures
and expenditures on administrative costs and transitional services as
specified in section 411(a).
The Statutory Reference Tables at Appendices I-K identify the
specific statutory bases for the data elements and those that are
necessary to carry out the data collection system requirements.
Paragraph (b) specifies that we will not apply the penalty to the
TANF-MOE Data Report, the annual program and performance report
proposed in Sec. 275.9, or the other information on individuals and
families required based on section 411(b).
We took this approach because the penalty for failure to submit a
timely report at section 409(a)(2) applies to the data collection
requirements in section 411(a). We considered applying the penalty to
all of the data elements in the disaggregated sections of the TANF Data
Report (Appendices A and B) as the overwhelming majority of the data
elements in these two instruments are specified in section 411(a). In
addition to the importance of the information, we thought that this
approach would be simpler and easier to administer.
We concluded, however, that we do not have the authority to impose
a penalty for failure to report on additional elements (other than
those relating to section 411(a)) in the TANF Data Report or the TANF
Financial Report. Nor do we have authority to impose a penalty for
failure to file the TANF-MOE Data Report or the annual report on
program and performance.
This means we will not impose a penalty under this part for failure
to file data elements necessary to carry out other statutory
provisions. However, the failure to file data elements based on other
statutory provisions will subject the State to any penalty relating to
those provisions. For example, the TANF Data Report includes five
elements based on section 409(a)(9) (time limits on receipt of
assistance). The penalty for failure to file the section 409(a)(9) data
elements is tied to the penalty provisions in section 409. If a State
does not file the complete and accurate information necessary to
administer section 409(a)(9) in the TANF Data Report, we will determine
that the State has not met this requirement, and we will impose the
penalty specified under section 409(a)(9).
We cannot over-emphasize how seriously we look upon the matter of
complete, accurate, and timely reporting. As noted earlier, the data
collected will serve many functions--for States, the Congress, the
public, and for us. Adequate data will be critical to many policy and
administrative implementation activities.
For example, a State's failure to file complete, accurate, and
timely TANF Financial Reports may jeopardize the timely payment of TANF
grants to the State and will raise questions as to whether a State is
subject to a penalty for misuse of funds, intentional misuse of funds,
or failure to make sufficient ``qualified State expenditures'' for TANF
MOE or Contingency Fund MOE purposes.
We propose in paragraph (c) that, when a State meets one or more of
the conditions set forth in paragraph (a), we will notify the State
that we intend to impose a penalty and reduce the SFAG for the
immediately succeeding fiscal year by four percent.
However, paragraph (d) specifies that, if the State meets the
requirements by the end of the next fiscal quarter that immediately
follows the quarter for which the report was due, we will not impose
the penalty. For example, if a State fails to file a complete and
accurate report for the first quarter of the fiscal year by February
14, but does file the report by March 31, we will not penalize the
State.
[[Page 62178]]
If a State does not meet the reporting requirements, we intend to
impose the penalty. Before we do so, paragraph (e) provides that States
will have an opportunity to submit ``reasonable cause'' justifications
and/or corrective compliance plans in accordance with Secs. 272.4-
272.6.
If we find that a penalty is appropriate, we propose, in paragraph
(f), that we will reduce, by four percent, the State's family
assistance grant for the next fiscal year as specified in section
409(a)(2) unless we determine that a reduction is not appropriate
pursuant to sections 409(c) (2) and (3).
What information must the State file annually? (Sec. 275.9)
We propose in this section that States must submit two reports
annually. Paragraphs (a) and (b) refer to the State's definitions and
other information that must be submitted as an addendum to the fourth
quarter TANF Financial Report (or Territorial Financial Report). See
Section 3 of Appendix D for details. Paragraph (c) proposes that an
annual program and performance report must be submitted to meet the
requirements of section 411(b), the report to Congress.
In paragraph (a), we propose to require four items of information
on the State's TANF program: the number of families excluded from the
two work participation rates and time-limit calculations under the
State's definition of families receiving assistance (with the basis for
the exclusions); the State's definition of each work activity; a
description of the transitional services provided to families no longer
receiving assistance due to employment, as specified in sections
411(a)(1)(A)(xi), (a)(2) and (a)(5); and a description of how the State
carries out pro rata (or more) reductions in assistance for recipients
refusing without good cause to work. This last item would provide
information necessary to implement section 409(a)(14).
In paragraph (b), we propose to require the eight items of
descriptive and expenditure-related information on the State's separate
MOE program, as specified in Sec. 273.7.
States must submit the information in both paragraphs (a) and (b)
at the same time as the fourth quarter TANF Financial Report.
We believe the information in paragraphs (a) and (b) is readily
available, will be easy to report annually, and will not be burdensome
for States. The information related to the State's separate MOE program
is important to our ability to track and monitor the MOE expenditures
and program effects. (See also our discussion of the importance of MOE
program information in Sec. 273.7.)
In order to reflect the most current and accurate information about
State TANF programs in the Secretary's annual report to Congress, we
propose in paragraph (c) that each State must file an annual program
and performance report. The content of this report, as described in
paragraph (c), will address the provisions of section 411(b) and the
concerns of Congress and others about the implementation of the TANF
program.
At a later date, following public comment on this NPRM, we will
develop and obtain further public comment on, and OMB approval for, a
reporting form that includes both the specific content of the report
and instructions for filing.
In order to minimize the reporting burden on States, we will
collect some information for our report to Congress from the quarterly
Data and Financial Reports, State Plans, annual rankings and reviews,
and/or other special studies. We also plan to take advantage of, and
work in conjunction with other efforts to acquire information on the
TANF program, including research agencies and organizations currently
gathering information on program design and implementation.
To the extent that we may be able to build on existing
collaborations, we can avoid duplication of effort and produce a
better, more complete national picture of the TANF program.
When are annual reports due? (Sec. 275.10)
Paragraph (a) proposes that the information in the addendum to the
fourth quarter TANF Financial Report, specified in Sec. 275.9 (a) and
(b), must be filed at the same time as the fourth quarter TANF
Financial Report. This means that this information is due one month
following the end of the fourth quarter.
Paragraph (b) proposes that States must file the annual program and
performance report to meet the provisions of section 411(b) within 90
days after the close of the fiscal year. This means that the annual
report describing State activities carried out in FY 1997 will be due
December 30, 1997.
This annual report requirement in section 411(b) is not covered by
the statutory effective date for reporting in section 116 of PRWORA.
The proposed deadline is consistent, however, with the deadline for
most annual reports under DHHS grant programs as specified in 45 CFR
92.40(b)(1).
V. Regulatory Impact Analyses
A. Executive Order 12866
Executive Order 12866 requires that regulations be drafted to
ensure that they are consistent with the priorities and principles set
forth in the Executive Order. The Department has determined that this
proposed rule is consistent with these priorities and principles. This
proposed rulemaking implements statutory authority based on broad
consultation and coordination.
The Executive Order encourages agencies, as appropriate, to provide
the public with meaningful participation in the regulatory process. As
described elsewhere in the preamble, ACF consulted with State and local
officials and their representative organizations as well as a broad
range of advocacy groups, researchers and others to obtain their views.
We discuss the input received during the consultation process in
the ``supplementary information'' section of the preamble and in
discussions of individual regulatory provisions. To a considerable
degree, these proposed rules reflect the discussion and concerns of the
groups with whom we consulted.
These proposed rules reflect the intent of PRWORA to achieve a
balance between granting States the flexibility they need to develop
and operate effective and responsive programs and ensuring that the
objectives of the program are met. Under the new law, State flexibility
is achieved by converting the welfare program into a block grant and
limiting Federal rules; ensuring that program goals are accomplished is
achieved through a number of penalty and bonus provisions and extensive
data collection.
We support State flexibility in numerous ways--such as by
exercising regulatory restraint; giving States the ability to define
key program terms; and clarifying that States have the ability to
continue their welfare reform demonstrations and serve victims of
domestic violence, non-custodial parents, and immigrants (with State
funds).
We support the achievement of program goals by ensuring that we
capture key information on what is happening under the State TANF
programs and maintaining the integrity of the work and other penalty
provisions. We take care, in provisions such as the proposed MOE data
collection and caseload reduction factor approval process, to protect
against negative impacts on needy families. (Subsequent rules on the
high performance bonus, illegitimacy bonus,
[[Page 62179]]
child poverty rates and Tribal TANF programs will reinforce these
objectives.)
One of our key goals in drafting the penalty rules was to ensure
State performance in all key areas provided under statute--including
work participation, time limits, State maintenance-of-effort, proper
use of Federal funds and data reporting. The law specified that we
should enforce State actions in these areas and specified the penalty
for each failure. Through the ``reasonable cause'' and ``corrective
compliance'' provisions in the proposed rules we give some
consideration to special circumstances within a State to help ensure
that neither the State nor needy families within the State will be
unfairly penalized for circumstances beyond their control.
In the work and penalty areas, this rulemaking provides information
to the States that will help them understand our specific expectations
and take the steps necessary to avoid penalties. These rules may
ultimately affect the number and size of penalties that are imposed on
States, but the basic expectations on States are statutory, and the
effect of these rules is non-material.
The financial impacts of these proposed rules should be minimal
because of the fixed level of funding provided through the block grant.
(We expect Federal outlays for State Family Assistance Grants,
exclusive of any bonuses, to amount to nearly $15.6 billion in FY
1998.) A State's Federal grant could be affected by the penalty
decisions made under the law and these rules, and State expenditures on
needy families could be affected by the proposed rules on the caseload
reduction. Otherwise, we do not believe that the rulemaking will affect
the overall level of funding or expenditures. However, it could have
minor impacts on the nature and distribution of such expenditures.
In the area of data collection, the statutory requirements are very
specific and extensive--especially with respect to case-record or
disaggregated data. These proposed rules include additional data
reporting with respect to program expenditures and MOE cases. They
expand upon the expenditure data explicitly mentioned by the statute in
order to ensure that: needy families continue to receive assistance and
services; monies go for the intended purposes; and the financial
integrity of the program is maintained. They also include additional,
optional data collection for MOE cases. We included this additional MOE
data collection in order to assess the overall impact of the program
and ensure that the creation of separate State programs does not
undermine the objectives of the Act.
The impacts of these rules on needy individuals and families will
depend on the choices the State makes in implementing the new law. We
expect our proposed data collection to enable tracking of these effects
over time and across States. Overall, our assessment of these proposed
rules indicates that they represent the least burdensome approach and
that the impacts and consequences are non-material for individuals,
States, and other entities.
B. Regulatory Flexibility Analysis
The Regulatory Flexibility Act (5 U.S.C. Ch. 6) requires the
Federal government to anticipate and reduce the impact of rules and
paperwork requirements on small businesses and other small entities.
Small entities are defined in the Act to include small businesses,
small non-profit organizations, and small governmental entities. This
rule will affect only the 50 States, the District of Columbia, and
certain territories. Therefore, the Secretary certifies that this rule
will not have a significant impact on small entities.
C. Paperwork Reduction Act
This proposed rule contains information collection activities that
are subject to review and approval by the Office of Management and
Budget (OMB) under the Paperwork Reduction Act of 1995. Under this Act,
no persons are required to respond to a collection of information
unless it displays a valid OMB control number. As required by the
Paperwork Reduction Act, we have submitted the proposed data collection
requirements to OMB for review and approval. We are concurrently using
this NPRM as a vehicle for seeking comment from the public on these
information collection activities.
The proposed rules contain provisions covering three quarterly
reports and one annual report. In addition, we are proposing that
States provide documentation for caseload reduction credit and the
reasonable cause/corrective action process and that they file certain
program definitions and descriptions annually. In order to provide an
opportunity for maximum review and public comment on the reporting
requirements, we have attached the proposed quarterly reports
(including the specific data elements) and the annual addendum as
Appendices to part 275. We will revise these instruments following the
comment period on the NPRM and will issue them to States through the
ACF policy issuance system. We will not re-publish these appendices as
a part of the final rule.
The three quarterly reports are the TANF Data Report (Appendices A
through C), the TANF MOE Data Report (Appendices E through G), and the
TANF Financial Report (Appendix D) (or, as applicable, the Territorial
Financial Report). The TANF Data Report and the TANF MOE Data Report
consist of three sections each. Two of these three sections consist of
disaggregated case-record data elements, and one consists of aggregated
data elements.
We need this proposed information collection to meet the
requirements of section 411(a) and to implement other sections,
including sections 407 (work participation requirements), 409
(penalties), 413 (annual rankings), and 411(b) (Annual report to
Congress).
Reporting on the separate State MOE program(s) is optional.
However, if a State claims MOE expenditures under a separate State
program and wishes to receive a high performance bonus, qualify for
work participation caseload reduction credit, or be considered for a
reduction in the penalty for failing to meet the work participation
requirements, it must file disaggregated and aggregated information on
the separate State program(s) that is similar to that reported for the
TANF program. (See Appendices E, F, and G for the proposed data
elements.)
The TANF Financial Report consists of one form with an annual
addendum to be submitted at the same time as the TANF Financial Report
for the fourth quarter. (See Appendix D.)
We need this report to meet the requirements of sections 405(c)(2),
411(a)(2), 411(a)(3), and 411(a)(5), and to carry out our other
financial management and oversight responsibilities. These include
providing information that could be used in determining whether States
are subject to penalties under section 409(a)(1), 409(a)(3), 409(a)(7),
409(a)(9), or 409(a)(14), tracking the reasonableness of our definition
of ``assistance,'' learning the extent to which recipients of benefits
and services are covered by program requirements, and helping to
validate the disaggregated data we receive on TANF and MOE cases.
We are also proposing an annual report in order to collect the data
required by section 411(b). This report requires the submission of
information about the characteristics of each State program; the design
and operation of the program; the services, benefits, and assistance
provided; the State's
[[Page 62180]]
eligibility criteria; and the State's definition of work activities. At
its option, each State may also include a description of any unique
features, accomplishments, innovations, or additional information
appropriate for inclusion in the Department's annual report to the
Congress.
We will work with representatives of States and others to identify
the specific form that will be used for this report, building on the
information currently being collected on the TANF program by research
organizations and others. Before we issue a reporting form to gather
this information and instructions for filing the report, we will give
the public another opportunity to comment on its content and the burden
imposed.
Besides the data collection instruments discussed above, there are
two other circumstances in the proposed rules that will create a
reporting burden. The first circumstance would be in cases where a
State wants to qualify for caseload reduction credit. The second would
be in cases where a State is subject to a penalty under section 409 and
wishes to avoid the penalty or receive a reduced penalty.
If a State elects to request a decrease in its participation rates
based on caseload reduction, we are proposing in Sec. 271.41 that it
must file certain data. In addition, if a State wishes to dispute a
penalty determination or wants to be considered for a waiver of a
penalty based on ``reasonable cause'' or corrective compliance, we are
proposing in Sec. 272.4 that the State would provide us with
information. We are proposing that a State would use a similar process
if it is seeking a reduced penalty for failure to meet the work
participation rates, as discussed at Sec. 271.51. Therefore, we also
address the burden issues related to these processes below.
The respondents for the TANF Financial Report are the 50 States of
the United States and the District of Columbia. The respondents for the
TANF Data Report, the TANF MOE Data Report, the TANF Annual Report, the
Caseload Reduction Credit documentation process, and the Reasonable
Cause/Corrective Action documentation process are the 50 States of the
United States, the District of Columbia, Guam, Puerto Rico, and the
United States Virgin Islands. American Samoa is eligible for the TANF
program and could use funds that it receives under section 1108 to
operate the TANF program. However, it did not elect to operate an AFDC
program, and we assumed that it would elect not to operate a TANF
program.
While the statute requires Tribal organizations with TANF programs
to submit some of the same data as States, we have not calculated the
burden for the Tribal organizations in this NPRM because a separate
NPRM will address Tribal TANF programs.
Tribal TANF programs will not be required to submit all of the data
required for State TANF programs because some provisions for which data
are being collected apply only to States. In addition, because Tribal
organizations have not previously operated AFDC programs, the burden
imposed on them by reporting will be substantially different than it is
for the States. In light of these special considerations, we considered
it more appropriate to address the burden on Tribes in that separate
NPRM.
In providing these estimates of reporting burden, we would like to
point out that some of the reporting burden that used to exist in the
AFDC program has disappeared, including the ``FLASH Report'' and
several other reports. Nevertheless, most of the data elements required
under the TANF Data Report are similar to previous data elements
required in the AFDC or JOBS program. Therefore, the existence of these
data elements should reduce the systems development and modification
that the States will undertake. In calculating the estimates of the
reporting burden, we assumed that all States would collect the data by
means of a review sample. We believe that a number of States will
eventually choose to undertake the one-time burden and cost of
developing or modifying their systems to provide the required data
directly from their automated systems, thus substantially reducing or
eliminating the ongoing annual burden and cost reflected in these
estimates.
In a very limited number of cases, we have proposed collecting
information quarterly where the statute only requires annual reporting,
or we have added elements not directly specified in the statute. We did
this because one of our goals was to limit the number of reporting
forms and systems modifications that States would be required to make.
Specifically, we believe that adding a data element like gender,
that had been developed for other purposes such as Quality Control,
would be useful to understanding the impact of the program and would
not impose an additional burden. Similarly, while the reporting of the
demographic and financial characteristics of families that become
ineligible to receive assistance is only required annually, these data
can be collected and reported more efficiently and without creating
another form by inclusion in the quarterly TANF Data Report.
Overall, the proposed reporting burden represents a substantial
decrease from the burden imposed by the reporting requirements of the
prior programs that TANF has replaced. Nevertheless, we encourage
States and members of the public to comment and provide suggestions on
how the burden can be further reduced and whether we have taken the
right course regarding frequency of reporting. The annual burden
estimates include any time involved pulling records from files,
abstracting information, returning records to files, assembling any
other material necessary to provide the requested information, and
transmitting the information.
Because of the constraints of the Administrative Procedure Act
(APA), we were unable to consult with the States directly on the
development of the specific data collection instruments. However, prior
to the development of the data collection instruments, we conducted
extensive consultations on general data collection issues with
representative groups such as the American Public Welfare Association
(APWA), the National Governors' Association (NGA), and the National
Conference of State Legislatures (NCSL). We also researched the burden
estimates for similar OMB-approved data collections in our inventory
and consulted with knowledgeable Federal officials.
The annual burden estimates for these data collections are:
----------------------------------------------------------------------------------------------------------------
Number of Average burden
Instrument or requirement Number of responses per hours per Total burden
respondents respondent response hours
----------------------------------------------------------------------------------------------------------------
TANF Data Report-Sec. 275.3(b)................ \1\ 54 4 526.5 113,724
TANF MOE Data Report-Sec. 275.3(d)............ \2\ 54 4 523.5 113,076
TANF Financial Report-Sec. 275.3(c) & Sec.
275.9(a)-(b).................................. \3\ 51 4 12 2,448
TANF Annual Report-Sec. 275.9(c).............. \1\ 54 1 20 1,080
Caseload Reduction Documentation Process-Sec.
271.41 & Sec. 271.44......................... \4\ 54 1 40 2,160
[[Page 62181]]
Reasonable Cause/Corrective Action
Documentation Process-Secs. 272.4, 272.6, &
272.7; Sec. 271.51........................... \4\ 54 1 160 8,640
----------------------------------------------------------------------------------------------------------------
\1\ We estimate that the 50 States, the District of Columbia, Guam, Puerto Rico, and the United States Virgin
Islands will be respondents.
\2\ We estimate that the 50 States, the District of Columbia, Guam, Puerto Rico, and the United States Virgin
Islands will be respondents, though not necessarily all 54 of these States and Territories will elect to have
MOE programs and respond the first year.
\3\ We estimate that the 50 States and the District of Columbia will be respondents.
\4\ We estimate that the 50 States, the District of Columbia, Guam, Puerto Rico, and the United States Virgin
Islands will be respondents, though not necessarily all 54 States and Territories will elect to respond the
first year.
Estimated Total Annual Burden Hours: 241,128.
We encourage States, organizations, individuals, and other parties
to submit comments regarding the information collection requirements to
ACF (at the address above) and to the Office of Information and
Regulatory Affairs, OMB, Room 3208, New Executive Office Building, 725
17th Street, Washington, DC 20503, ATTN: Desk Officer for ACF.
To ensure that public comments have maximum effect in developing
the final regulations and the data collection forms, we urge that each
comment clearly identify the specific section or sections of the
proposed rule or data collection form that the comment addresses and
follow the same order as the regulations and forms.
We will consider comments by the public on these proposed
collections of information in:
Evaluating whether the proposed collections are necessary
for the proper performance of our functions, including whether the
information will have practical utility;
Evaluating the accuracy of our estimate of the burden of
the proposed collections of information, including the validity of the
methodology and assumptions used, and the frequency of collection;
Enhancing the quality, usefulness, and clarity of the
information to be collected; and
Minimizing the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technology, e.g., the
electronic submission of responses.
OMB is required to make a decision concerning the collections of
information contained in these proposed rules between 30 and 60 days
after publication of this document in the Federal Register. Therefore,
a comment is assured of having its full effect if OMB receives it
within 30 days of publication. This OMB review schedule does not affect
the deadline for the public to comment to ACF on the proposed rules.
Written comments to OMB for the proposed information collection should
be sent directly to the following: Office of Management and Budget,
Paperwork Reduction Project, 725 17th Street, N.W., Washington, D.C.
20502, Attn: Ms. Laura Oliven.
D. Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded
Mandates Act) requires that a covered agency prepare a budgetary impact
statement before promulgating a rule that includes any Federal mandate
that may result in the expenditure by State, local, and Tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year.
If a covered agency must prepare a budgetary impact statement,
section 205 further requires that it select the most cost-effective and
least burdensome alternative that achieves the objectives of the rule
and is consistent with the statutory requirements. In addition, section
203 requires a plan for informing and advising any small government
that may be significantly or uniquely impacted by the proposed rule.
We have determined that the proposed rules will not result in the
expenditure by State, local, and Tribal governments, in the aggregate,
or by the private sector, of more than $100 million in any one year.
Accordingly, we have not prepared a budgetary impact statement,
specifically addressed the regulatory alternatives considered, or
prepared a plan for informing and advising any significantly or
uniquely impacted small government.
List of Subjects in 45 CFR Parts 270 through 275
Administrative practice and procedure, Day care, Employment, Grant
programs--Social programs, Loan programs--Social programs, Manpower
training programs, Penalties, Public assistance programs, Reporting and
recordkeeping requirements, Vocational education.
(Catalogue of Federal Domestic Assistance Programs: 93.558 TANF
programs--State Family Assistance Grants, Assistance grants to
Territories, Matching grants to Territories, Supplemental Grants for
Population Increases and Contingency Fund; 93.559--Loan Fund;
93.595--Welfare Reform Research, Evaluations and National Studies)
Dated: August 14, 1997.
Olivia A. Golden,
Principal Deputy Assistant Secretary for Children and Families.
Approved: September 2, 1997.
Donna E. Shalala,
Secretary, Department of Health and Human Services.
For the reasons set forth in the preamble, we propose to amend 45
CFR chapter II by adding parts 270 through 275 to read as follows:
PART 270--GENERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
PROVISIONS
Sec.
270.10 What does this part cover?
270.20 What is the purpose of the TANF program?
270.30 What definitions apply under the TANF regulations?
270.40 When are these provisions in effect?
Authority: 42 U.S.C. 601, 601 note, 603, 604, 606, 607, 608,
609, 610, 611, 619, and 1308.
Sec. 270.10 What does this part cover?
This part includes regulatory provisions that generally apply to
the Temporary Assistance for Needy Families (TANF) program.
Sec. 270.20 What is the purpose of the TANF program?
The TANF program has the following four purposes:
(a) Provide assistance to needy families so that children may be
cared for in their own homes or in the homes of relatives;
(b) End the dependence of needy parents on government benefits by
promoting job preparation, work, and marriage;
(c) Prevent and reduce the incidence of out-of-wedlock pregnancies
and establish annual numerical goals for preventing and reducing the
incidence of these pregnancies;
[[Page 62182]]
(d) Encourage the formation and maintenance of two-parent families.
Sec. 270.30 What definitions apply under the TANF regulations?
The following definitions apply under parts 270 through 275 of this
chapter:
ACF means the Administration for Children and Families.
Act means Social Security Act, unless otherwise specified.
Adjusted State Family Assistance Grant, or adjusted SFAG, means the
SFAG amount, minus any reductions for Tribal Family Assistance Grants
paid to Tribal grantees on behalf of Indian families residing in the
State.
Adult means an individual who is not a ``minor child,'' as defined
elsewhere in this section.
AFDC means Aid to Families with Dependent Children.
Aid to Families with Dependent Children means the welfare program
in effect under title IV-A of prior law.
Assistance means every form of support provided to families under
TANF (including child care, work subsidies, and allowances to meet
living expenses), except: Services that have no direct monetary value
to an individual family and that do not involve implicit or explicit
income support, such as counseling, case management, peer support, and
employment services that do not involve subsidies or other forms of
income support; and one-time, short-term assistance (i.e., assistance
paid within a 30-day period, no more than once in any twelve-month
period, to meet needs that do not extend beyond a 90-day period, such
as automobile repair to retain employment and avoid welfare receipt and
appliance repair to maintain living arrangements). This definition does
not apply to the use of the term assistance at part 273, subpart A, of
this chapter.
CCDF means the Child Care and Development Fund, or those child care
programs and services funded either under section 418(a) of the Act or
the Child Care and Development Block Grant Act of 1990, 42 U.S.C. 9801.
Commingled State TANF expenditures means expenditure of State funds
that are made within the TANF program and commingled with Federal
funds.
Contingency Fund means Federal funds available at section 403(b) of
the Act, and contingency funds means the Federal monies made available
to States under that section. It does not include any State funds
expended as a requirement of that section.
Contingency Fund MOE means the MOE expenditures that a State must
make in order to: Meet the MOE requirements at sections 403(b)(4) and
409(a)(10) of the Act and subpart B of part 274 of this chapter; and
retain contingency funds made available to the State. The only
expenditures that qualify for Contingency Fund MOE are State TANF
expenditures and, in certain cases, child care expenditures made under
the Child Care and Development Fund (CCDF).
EA means Emergency Assistance.
Eligible State means a State that, during the 2-year period
immediately preceding the fiscal year, has submitted a TANF plan that
we have determined is complete.
Emergency Assistance means the program option available to States
under sections 403(a)(5) and 406(e) of prior law to provide short-term
assistance to needy families with children.
Family Violence Option (or FVO) means the provision at section
402(a)(7) of the Act under which States may elect to implement
comprehensive strategies for identifying and serving victims of
domestic violence.
FAMIS means the automated statewide management information system
under sections 402(a)(30), 402(e), and 403 of prior law.
Federal expenditures means expenditures by a State of Federal TANF
funds.
Federal funds and Federal TANF funds have the same meaning as TANF
funds, as defined in this section.
Fiscal year means the 12-month period beginning on October 1 of the
preceding calendar year and ending on September 30.
FY means fiscal year.
Good cause domestic violence waiver means a waiver of one or more
program requirements granted by a State to a victim of domestic
violence under the Family Violence Option that is:
(1) Granted appropriately, based on need, as determined by an
individualized assessment;
(2) Temporary, for a period not to exceed six months; and
(3) Accompanied by an appropriate services plan designed to provide
safety and lead to work.
IEVS means the Income and Eligibility Verification System operated
pursuant to the provisions in section 1137 of the Act.
Inconsistent means that complying with a TANF requirement would
necessitate that a State change a policy reflected in an approved
waiver.
Indian, Indian Tribe and Tribal Organization have the meaning given
such terms by section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b), except that the term ``Indian tribe''
means, with respect to the State of Alaska, only the Metlakatla Indian
Community of the Annette Islands Reserve and the following Alaska
Native regional nonprofit corporations:
(1) Arctic Slope Native Association;
(2) Kawerak, Inc.;
(3) Maniilaq Association;
(4) Association of Village Council Presidents;
(5) Tanana Chiefs Council;
(6) Cook Inlet Tribal Council;
(7) Bristol Bay Native Association;
(8) Aleutian and Pribilof Island Association;
(9) Chugachmuit;
(10) Tlingit Haida Central Council;
(11) Kodiak Area Native Association; and
(12) Copper River Native Association.
Job Opportunities and Basic Skills Training Program means the
program under title IV-F of prior law to provide education, training
and employment services to welfare recipients.
JOBS means the Job Opportunities and Basic Skills Training Program.
Minor child means an individual who:
(1) Has not attained 18 years of age; or
(2) Has not attained 19 years of age and is a full-time student in
a secondary school (or in the equivalent level of vocational or
technical training).
MOE means maintenance-of-effort.
Needy State is a term that pertains to the provisions on the
Contingency Fund and the penalty for failure to meet participation
rates. It means, for a month, a State where:
(1)(i) The average rate of total unemployment (seasonally adjusted)
for the most recent 3-month period for which data are published for all
States equals or exceeds 6.5 percent; and
(ii) The average rate of total unemployment (seasonally adjusted)
for such 3-month period equals or exceeds 110 percent of the average
rate for either (or both) of the corresponding 3-month periods in the
two preceding calendar years; or
(2) The Secretary of Agriculture has determined that the average
number of individuals participating in the Food Stamp program in the
State has grown at least ten percent in the most recent three-month
period for which data are available.
Prior law means the provisions of title IV-A and IV-F of the Act in
effect as of August 21, 1996. They include provisions related to Aid to
Families with Dependent Children (or AFDC), Emergency Assistance (or
EA), Job Opportunities and Basic Skills Training (or JOBS), and FAMIS.
PRWORA means the Personal Responsibility and Work Opportunity
[[Page 62183]]
Reconciliation Act of 1996, or Pub. L. 104-193, 42 U.S.C. 1305.
Qualified Aliens has the meaning prescribed under section 431 of
PRWORA, as amended by the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996, or Pub. L. 104-208, 8 U.S.C. 1101.
Qualified State Expenditures means the total amount of State funds
expended during the fiscal year that count for TANF MOE purposes. It
includes expenditures, under any State program, for any of the
following with respect to eligible families:
(1) Cash assistance;
(2) Child care assistance;
(3) Educational activities designed to increase self-sufficiency,
job training, and work, excluding any expenditure for public education
in the State except expenditures involving the provision of services or
assistance of an eligible family that is not generally available to
persons who are not members of an eligible family;
(4) Any other use of funds allowable under subpart A of part 273 of
this chapter; and
(5) Administrative costs in connection with the matters described
in paragraphs (1), (2), (3) and (4) of this definition, but only to the
extent that such costs do not exceed 15 percent of the total amount of
qualified State expenditures for the fiscal year.
Secretary means Secretary of the Department of Health and Human
Services or any other Department official duly authorized to act on the
Secretary's behalf.
Segregated State TANF expenditures means the expenditure of State
funds within the TANF program that are not commingled with Federal
funds.
Separate State program means a program operated outside of TANF in
which the expenditures of State funds may count for TANF MOE purposes.
SFAG means State Family Assistance Grant, as defined in this
section.
SFAG payable means the SFAG amount, reduced, as appropriate, for
any Tribal Family Assistance Grants made on behalf of Indian families
residing in the State and any penalties imposed on a State under this
chapter.
Single audit means an audit or supplementary review conducted under
the authority of the Single Audit Act at 31 U.S.C. chapter 75.
State means the 50 States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa, unless otherwise specified.
State Family Assistance Grant means the amount of the basic block
grant allocated to each eligible State under the formula at section
403(a)(1) of the Act.
State MOE expenditures means the expenditure of State funds that
may count for purposes of the TANF MOE requirements at section
409(a)(7) of the Act and the Contingency Fund MOE requirements at
sections 403(b)(4) and 409(a)(10) of the Act.
State TANF expenditures means the expenditure of State funds within
the TANF program.
TANF means The Temporary Assistance for Needy Families Program.
TANF funds means all funds provided to the State under section 403
of the Act, including the SFAG, any bonuses, supplemental grants, or
contingency funds.
TANF MOE means the expenditure of State funds that must be made in
order to meet the MOE requirement at section 409(a)(7) of the Act.
TANF program means a State program of family assistance operated by
an ``eligible State'' under its State TANF plan.
Territories means Puerto Rico, the Virgin Islands, Guam, and
American Samoa.
Title IV-A refers to the title and part of the Act that now
includes TANF, but previously included AFDC and EA. For the purpose of
the TANF program regulations, this term does not include child care
programs authorized and funded under section 418 of the Act, or their
predecessors, unless we specify otherwise.
Tribal Family Assistance Grant means a grant paid to a Tribe that
has an approved Tribal family assistance plan under section 412(a)(1)
of the Act.
Tribal grantee means a Tribe that receives Federal funds to operate
a Tribal TANF program under section 412(a) of the Act.
Tribal TANF program means a TANF program developed by an eligible
Tribe, Tribal organization, or consortium and approved by us under
section 412 of the Act.
Tribe means Indian Tribe or Tribal organization, as defined
elsewhere in this section. The definition may include Tribal consortia
(i.e., groups of federally recognized Tribes or Alaska Native entities
that have banded together in a formal arrangement to develop and
administer a Tribal TANF program).
Victim of domestic violence means an individual who is battered or
subject to extreme cruelty under the definition at section
408(a)(7)(B)(iii) of the Act.
Waiver refers to a specific action taken by the Secretary under the
authority of section 1115 of the Act to allow a State to operate a
program that does not follow specific requirements of prior law. For
the purpose of parts 270 through 275 of this chapter and section 415 of
the Act, it consists of provisions necessary to achieve the State's
policy objective. It includes the approved revised AFDC requirements,
articulated in the State's waiver list. It also includes those
provisions of prior law that:
(1) Did not need to be waived as part of the waiver package; and
(2) Were integral and necessary to achieve the State's policy
objective for the approved waiver.
We (and any other first person plural pronouns) means the Secretary
of Health and Human Services or any of the following individuals or
organizations acting in an official capacity on the Secretary's behalf:
the Assistant Secretary for Children and Families, the Regional
Administrators for Children and Families, the Department of Health and
Human Services, and the Administration for Children and Families.
Welfare-to-Work means the new program for funding work activities
at section 403(a)(5) of the Act.
WTW means Welfare-to-Work.
Sec. 270.40 When are these provisions in effect?
(a) The TANF statutory requirements go into effect no sooner than a
State's implementation of its TANF program. Each State must implement
its TANF program no later than July 1, 1997.
(b) In determining whether a State is subject to a penalty under
parts 271 through 275 of this chapter, we will not apply the regulatory
provisions in parts 270 through 275 of this chapter retroactively. We
will judge State behavior and actions that occur prior to [effective
date of final rules] only against a reasonable interpretation of the
statutory provision in title IV-A of the Act.
PART 271--ENSURING THAT RECIPIENTS WORK
Sec.
271.1 What does this part cover?
271.2 What definitions apply to this part?
Subpart A--Individual Responsibility
271.10 What work requirements must an individual meet?
271.11 Which recipients must have an assessment under TANF?
271.12 What is an individual responsibility plan?
271.13 May an individual be penalized for not following an
individual responsibility plan?
271.14 What is the penalty if an individual refuses to engage in
work?
271.15 Can a family be penalized if a parent refuses to work
because (s)he cannot find child care?
[[Page 62184]]
271.16 Does the imposition of a penalty affect an individual's work
requirement?
Subpart B--State Accountability
271.20 How will we hold a State accountable for achieving the work
objectives of TANF?
271.21 What overall work rate must a State meet?
271.22 How will we determine a State's overall work rate?
271.23 What two-parent work rate must a State meet?
271.24 How will we determine a State's two-parent work rate?
271.25 Does a State include Tribal families in calculating these
rates?
Subpart C--Work Activities and How to Count Them
271.30 What are ``work activities''?
271.31 How many hours must an individual participate to count in
the numerator of the overall rate?
271.32 How many hours must an individual participate to count in
the numerator of the two-parent rate?
271.33 What are the special requirements concerning educational
activities in determining monthly participation rates?
271.34 Are there any limitations in counting job search and job
readiness assistance toward the participation rates?
271.35 Are there any special work provisions for single custodial
parents?
271.36 Do welfare reform waivers affect what activities count as
engaged in work?
Subpart D--Caseload Reduction Factor for Minimum Participation Rates
271.40 Is there a way for a State to reduce the work participation
rates?
271.41 How will we determine the caseload reduction factor?
271.42 Which reductions count in determining the caseload reduction
factor?
271.43 What is the definition of a ``case receiving assistance'' in
calculating the caseload reduction factor?
271.44 When must a State report the required data on the caseload
reduction factor?
Subpart E--State Work Penalties
271.50 What happens if a State fails to meet the participation
rates?
271.51 Under what circumstances will we reduce the amount of the
penalty below the maximum?
271.52 Is there a way to waive the State's penalty for failing to
achieve either of the participation rates?
271.53 Can a State correct the problem before incurring a penalty?
271.54 Is a State subject to any other penalty relating to its work
program?
271.55 Under what circumstances will we reduce the amount of the
penalty for not properly imposing penalties on individuals?
Subpart F--Waivers
271.60 How do existing welfare waivers affect the participation
rate?
Subpart G--Non-displacement
271.70 What safeguards are there to ensure that participants in
work activities do not displace other workers?
Authority: 42 U.S.C. 601, 602, 607, and 609.
Sec. 271.1 What does this part cover?
This part includes the regulatory provisions relating to the
mandatory work requirements of TANF.
Sec. 271.2 What definitions apply to this part?
The general TANF definitions at Sec. 270.30 of this chapter apply
to this part.
Subpart A--Individual Responsibility
Sec. 271.10 What work requirements must an individual meet?
(a) A parent or caretaker receiving assistance must engage in work
activities when the State has determined that the individual is ready
to engage in work or when (s)he has received assistance for a total of
24 months, whichever is earlier. The State must define what it means to
engage in work for this requirement, which can include participation in
work activities in accordance with section 407 of the Act.
(b) If a parent or caretaker has received assistance for two
months, (s)he must participate in community service employment, unless
the State has exempted the individual from work requirements or (s)he
is already engaged in work activities as described at Sec. 271.30. The
State will determine the minimum hours per week and the tasks the
individual must perform as part of the community service employment.
This requirement takes effect no later than August 22, 1997, unless the
governor of the State opts out of this provision by notifying HHS.
Sec. 271.11 Which recipients must have an assessment under TANF?
(a) The State must make an initial assessment of the skills, prior
work experience, and employability of each recipient who is at least
age 18 or who has not completed high school (or equivalent) and is not
attending secondary school.
(b) The State may make any required assessments within 90 days (180
days, at State option) of the date it implements the TANF program for
anyone receiving assistance as of that date. For anyone else who must
have an assessment, the State may assess an individual within 30 days
(90 days, at State option) of the date (s)he becomes eligible for
assistance.
Sec. 271.12 What is an individual responsibility plan?
An individual responsibility plan is a plan developed at State
option, in consultation with the individual, on the basis of the
assessment made under Sec. 271.11. The plan:
(a) Should set an employment goal for the individual and a plan for
moving immediately into private sector employment;
(b) Should describe the obligations of the individual. These could
include going to school, maintaining certain grades, keeping school-age
children in school, immunizing children, going to parenting or money
management classes, or doing other things that will help the individual
become and remain employed in the private sector;
(c) Should be designed to move the individual into whatever private
sector employment (s)he is capable of handling as quickly as possible,
and to increase over time the responsibility and the amount of work the
individual handles;
(d) Should describe the services the State will provide the
individual; and
(e) May require the individual to undergo appropriate substance
abuse treatment.
Sec. 271.13 May an individual be penalized for not following an
individual responsibility plan?
Yes. If an individual fails without good cause to comply with an
individual responsibility plan that (s)he has signed, the State may
reduce the amount of assistance otherwise payable to the family, by
whatever amount it considers appropriate. This penalty is in addition
to any other penalties under the State's TANF program.
Sec. 271.14 What is the penalty if an individual refuses to engage in
work?
If an individual refuses to engage in work required under section
407 of the Act, the State must reduce or terminate the amount of
assistance payable to the family, subject to any good cause or other
exceptions the State may establish. A grant reduction must be at least
prorated, based on the portion of the month in which the individual
refuses to work, but could be greater.
Sec. 271.15 Can a family be penalized if a parent refuses to work
because (s)he cannot find child care?
(a) If the individual is a single custodial parent caring for a
child under age six, the State may not reduce or terminate assistance
for the parent's refusal to engage in required work if (s)he
demonstrates an inability to obtain needed child care for one or more
of the following reasons:
[[Page 62185]]
(1) Appropriate child care within a reasonable distance from the
home or work site is unavailable;
(2) Informal child care by a relative or under other arrangements
is unavailable or unsuitable; or
(3) Appropriate and affordable formal child care arrangements are
unavailable.
(b)(1) The State will determine when the individual has
demonstrated that (s)he cannot find child care, in accordance with
criteria established by the State.
(2) These criteria must:
(i) Address the procedures that the State uses to determine if the
parent has a demonstrated inability to obtain needed child care;
(ii) Include definitions of the terms ``appropriate child care,''
``reasonable distance,'' ``unsuitability of informal care,'' and
``affordable child care arrangements''; and
(iii) Be submitted to us.
Sec. 271.16 Does the imposition of a penalty affect an individual's
work requirement?
A penalty imposed by a State against the family of an individual by
reason of the failure of the individual to comply with a requirement
under TANF shall not be construed to be a reduction in any wage paid to
the individual, and shall not result in a reduction in the number of
hours of work required.
Subpart B--State Accountability
Sec. 271.20 How will we hold a State accountable for achieving the
work objectives of TANF?
(a) Each State must meet two separate work participation rates, one
based on how well it succeeds in helping adults in two-parent families
find work activities described at Sec. 271.30 (the two-parent rate),
the other based on how well it succeeds in finding those activities for
adults in all families it serves (the overall rate).
(b) Each State must submit data to allow us to measure its success
in requiring adults to participate in work activities, as specified at
Sec. 275.3 of this chapter.
(c) If the data show that a State met both participation rates in a
fiscal year, then the percentage of historic State expenditures that it
must expend under TANF, pursuant to Sec. 273.1 of this chapter,
decreases from 80 to 75 percent for that fiscal year. This is also
known as the State's ``maintenance of effort'' requirement.
(d) If the data show that a State did not meet either minimum work
participation rate for a fiscal year, a State could be subject to a
financial penalty.
(e) Before we impose a penalty, a State will have the opportunity
to claim reasonable cause or enter into a corrective compliance plan,
pursuant to Secs. 272.5 and 272.6 of this chapter.
Sec. 271.21 What overall work rate must a State meet?
Each State must achieve the following minimum overall participation
rate:
------------------------------------------------------------------------
Then the
minimum
If the fiscal year is: participation
rate is:
------------------------------------------------------------------------
1997.................................................... 25
1998.................................................... 30
1999.................................................... 35
2000.................................................... 40
2001.................................................... 45
2002 and thereafter..................................... 50
------------------------------------------------------------------------
Sec. 271.22 How will we determine a State's overall work rate?
(a) The overall participation rate for a fiscal year is the average
of the State's overall participation rates for each month in the fiscal
year.
(b)(1) We determine a State's overall participation rate for a
month as follows:
(i) The number of families receiving TANF assistance that include
an adult or a minor head-of-household who is engaged in work for the
month (the numerator); divided by
(ii) The number of families receiving TANF assistance during the
month that include an adult or a minor head-of-household minus the
number of families that are subject to a penalty for refusing to work
in that month (the denominator). However, if a family has been
sanctioned for more than three of the last 12 months, we will not
deduct it from the denominator.
(2) States may define families receiving TANF assistance . . . that
include an adult or a minor child head-of household, but may not
exclude families from the definition solely for the purpose of avoiding
penalties under Sec. 271.50.
(i) States shall report to us annually on the number of families
excluded because of the State's definition and the circumstances
underlying each exclusion.
(ii) Where we find that a State has excluded families for the
purpose of avoiding a penalty for work participation, we shall include
those families in the calculation in paragraph (b)(1) of this section
in determining whether a State is subject to the penalty described in
Sec. 271.50.
(c) A State has the option of not requiring a single custodial
parent caring for a child under age one to engage in work. If the State
adopts this option, it may disregard such a family in the participation
rate calculation for a maximum of 12 months.
(d) If a family receives assistance for only part of a month, the
State may count it as a month of participation if an adult in the
family is engaged in work for the minimum average number of hours in
each full week that the family receives assistance in that month.
Sec. 271.23 What two-parent work rate must a State meet?
A State receiving a TANF grant for a fiscal year must achieve the
following minimum two-parent participation rate:
------------------------------------------------------------------------
Then the
minimum
If the fiscal year is: participation
rate is:
------------------------------------------------------------------------
1997.................................................... 75
1998.................................................... 75
1999 and thereafter..................................... 90
------------------------------------------------------------------------
Sec. 271.24 How will we determine a State's two-parent work rate?
(a) The two-parent participation rate for a fiscal year is the
average of the State's two-parent participation rates for each month in
the fiscal year.
(b)(1) We determine a State's two-parent participation rate for a
month as follows:
(i) The number of two-parent families receiving TANF assistance
that include an adult (or minor child head-of-household) and other
parent who meet the requirements set forth in Sec. 271.32 for the month
(the numerator); divided by
(ii) The number of two-parent families receiving TANF assistance
during the month minus the number of two-parent families that are
subject to a penalty for refusing to work in that month (the
denominator). However, if a family has been sanctioned for more than
three of the last 12 months, we will not deduct it from the
denominator.
(2) States may define families receiving TANF assistance . . . that
include an adult or a minor child head-of household, but may not
exclude families from the definition solely for the purpose of avoiding
penalties under Sec. 271.50.
(i) States shall report to us annually on the number of families
excluded because of the State's definition and the circumstances
underlying each exclusion.
(ii) Where we find that a State has excluded families for the
purpose of avoiding a penalty for work participation, we shall include
those families in the calculation in paragraph (b)(1) of this section
in determining whether a State is subject to the penalty described in
Sec. 271.50.
[[Page 62186]]
(c) If a family receives assistance for only part of a month, the
State may count it as a month of participation if an adult in the
family (both adults, if they are both required to work) is engaged in
work for the minimum average number of hours in each full week that the
family receives assistance in that month.
(d) If a family includes a disabled parent, the family is not
considered a two-parent family for the participation rate. Such a
family is not included in either the numerator or denominator of the
two-parent rate.
Sec. 271.25 Does a State include Tribal families in calculating these
rates?
A State has the option of including families that are receiving
assistance under an approved tribal family assistance plan or under a
tribal work program in calculating the State's participation rates
under Secs. 271.22 and 271.24.
Subpart C--Work Activities and How to Count Them
Sec. 271.30 What are ``work activities''?
Work activities include:
(a) Unsubsidized employment;
(b) Subsidized private sector employment;
(c) Subsidized public sector employment;
(d) Work experience;
(e) On-the-job training (OJT);
(f) Job search and job readiness assistance;
(g) Community service programs;
(h) Vocational educational training;
(i) Job skills training directly related to employment;
(j) Education directly related to employment, in the case of a
recipient who has not received a high school diploma or a certificate
of high school equivalency;
(k) Satisfactory attendance at secondary school or in a course of
study leading to a certificate of general equivalence, if a recipient
has not completed secondary school or received such a certificate; and
(l) Providing child care services to an individual who is
participating in a community service program.
Sec. 271.31 How many hours must an individual participate to count in
the numerator of the overall rate?
(a) An individual counts as engaged in work for a month for the
overall rate if (s)he participates in work activities during the month
for at least the minimum average number of hours per week listed in the
following table:
------------------------------------------------------------------------
Then the
minimum
If the fiscal year is: average hours
per week is:
------------------------------------------------------------------------
1997.................................................... 20
1998.................................................... 20
1999.................................................... 25
2000 or thereafter...................................... 30
------------------------------------------------------------------------
(b)(1) In addition, for the individual to count as engaged in work,
at least 20 per week of the above hours must come from participation in
certain of the activities listed in Sec. 271.30. The following nine
activities count for the first 20 hours of participation: Unsubsidized
employment; subsidized private sector employment; subsidized public
sector employment; work experience; on-the-job training; job search and
job readiness assistance; community service programs; vocational
educational training; and providing child care services to an
individual who is participating in a community service program.
(2) Above 20 hours per week, the following three activities may
also count for participation: Job skills training directly related to
employment; education directly related to employment; and satisfactory
attendance at secondary school or in a course of study leading to a
certificate of general equivalence.
(c) The following chart below lists when each activity counts, for
both the overall and the two-parent rates:
----------------------------------------------------------------------------------------------------------------
When does the activity count?
-------------------------------------------------------
Overall rate 2-parent rate
-------------------------------------------------------
Activity 30/50 hours
hours above (without/ Hours above
20 hours 20 with Fed 30/50
child care)
----------------------------------------------------------------------------------------------------------------
(a) unsubsidized employment.............................
(b) subsidized private sector employment................
(c) subsidized public sector employment.................
(d) work experience.....................................
(e) OJT.................................................
(f) job search & job readiness..........................
(g) community service programs..........................
(h) vocational educational training.....................
(i) job skills training................................. No No
(j) education directly related to employment............ No \1\ No \1\
(k) high school or GED.................................. No \1\ No \1\
(l) providing child care services to a community service
participant............................................
----------------------------------------------------------------------------------------------------------------
\1\ Teen parents may count due to participation in these activities. Refer to Sec. 271.33.
Sec. 271.32 How many hours must an individual participate to count in
the numerator of the two-parent rate?
(a) If an individual and the other parent in the family are
participating in work activities for an average of at least 35 hours
per week during the month, then (s)he counts as engaged in work for a
two-parent family for the month, subject to paragraph (c) of this
section.
(b)(1) In addition, at least 30 of the 35 hours per week must come
from participation in certain of the activities listed in Sec. 271.30
for the individual to count as engaged in work. The following nine
activities count for the first 30 hours of participation: Unsubsidized
employment; subsidized private sector employment; subsidized public
sector employment; work experience; on-the-job training; job search and
job readiness assistance; community service programs; vocational
educational training; and providing child care services to an
individual who is
[[Page 62187]]
participating in a community service program.
(2) Above 30 hours per week, the following three activities may
also count for participation: Job skills training directly related to
employment; education directly related to employment; and satisfactory
attendance at secondary school or in a course of study leading to a
certificate of general equivalence.
(c)(1) If the family receives federally-funded child care
assistance and an adult in the family is not disabled or caring for a
severely disabled child, then the individual and the other parent must
be participating in work activities for an average of at least 55 hours
per week for the individual to count as engaged in work for a two-
parent family for the month.
(2) At least 50 of the 55 hours per week must come from
participation in the activities listed in paragraph (b)(1) of this
section.
(3) Above 50 hours per week, the three activities listed in
paragraph (b)(2) of this section may also count for participation.
(d) The chart in Sec. 271.31 lists when each activity counts in the
two-parent rate.
Sec. 271.33 What are the special requirements concerning educational
activities in determining monthly participation rates?
(a) Vocational educational training may only count for a total of
12 months for any individual.
(b) A married or single head-of-household under 20 years old counts
as engaged in work in a month if (s)he:
(1) Maintains satisfactory attendance at a secondary school or the
equivalent during the month; or
(2) Participates in education directly related to employment for an
average of at least 20 hours per week during the month.
(c) In counting individuals for each participation rate, not more
than 30 percent of individuals engaged in work may be included because
they are participating:
(1) In vocational educational training; or
(2) In fiscal year 2000 or thereafter, as a teen parent in
educational activities described in paragraph (b) of this section.
Sec. 271.34 Are there any limitations in counting job search and job
readiness assistance toward the participation rates?
Yes. There are four limitations concerning job search and job
readiness.
(a) Except as provided in paragraph (b) of this section, an
individual's participation in job search or job readiness assistance
counts for only six weeks in any fiscal year.
(b) If the State's total unemployment rate for a fiscal year is at
least 50 percent greater than the United States' total unemployment
rate for that fiscal year or if the State meets the definition of a
needy State, specified at Sec. 270.30 of this chapter, then an
individual's participation in job search or job readiness assistance
counts for up to 12 weeks in that fiscal year.
(c) An individual's participation in job search and job readiness
assistance counts for no more than four consecutive weeks in a fiscal
year.
(d) Not more than once for any individual in a fiscal year, a State
may count three or four days of job search and job readiness assistance
during a week as a full week of participation.
Sec. 271.35 Are there any special work provisions for single custodial
parents?
Yes. A single custodial parent or caretaker relative with a child
under age six will count as engaged in work if (s)he participates for
at least an average of 20 hours per week.
Sec. 271.36 Do welfare reform waivers affect what activities count as
engaged in work?
A welfare reform waiver could affect what activities count as
engaged in work, if it meets the requirements at Sec. 271.60.
Subpart D--Caseload Reduction Factor for Minimum Participation
Rates
Sec. 271.40 Is there a way for a State to reduce the work
participation rates?
(a) If the average monthly number of cases receiving assistance,
including assistance under a separate State program, in a State in the
preceding fiscal year was lower than the average monthly number of
cases that received assistance in FY 1995, the minimum participation
rate the State must meet for the fiscal year will decrease by the
number of percentage points the caseload fell in comparison to the FY
1995 caseload. The number of percentage points by which the caseload
falls is referred to as the caseload reduction factor.
(b) The calculation in paragraph (a) of this section must disregard
any caseload reductions due either to requirements of Federal law or to
changes that a State has made in its eligibility criteria in comparison
to its criteria in effect in FY 1995.
(c) To establish the caseload base for fiscal year 1995, we will
use the number of AFDC cases reported on ACF-3697, Statistical Report
on Recipients Under Public Assistance. For subsequent years, we will
use AFDC data from this same report, supplemented by caseload
information from the TANF Data Report and the TANF MOE Data Report for
appropriate States beginning with the fourth quarter of fiscal year
1997. To qualify for a caseload reduction, a State must have reported
monthly caseload information, including cases in separate State
programs, for the preceding year for cases receiving assistance as
defined at Sec. 271.43.
Sec. 271.41 How will we determine the caseload reduction factor?
(a) We will determine the appropriate caseload reduction that
applies to each State based on reliable, validated information and
estimates reported to us by the State. We will determine whether the
information and estimates provided are acceptable, based on the
criteria listed in paragraph (d) of this section. We will also conduct
periodic, on-site reviews and inspect administrative records on
applications and terminations to validate the accuracy of the State
estimates.
(b) In order to receive a reduction in the overall participation
rate, a State must submit the Caseload Reduction Report to us
containing the following information:
(1) A complete listing of and implementation dates for all
eligibility changes, as defined at Sec. 271.42, made by the State since
the beginning of FY 1995, all changes in Federal requirements and
implementation dates for each change since FY 1995, and a listing of
the reasons (such as found employment) for case closures;
(2) A numerical estimate of the impact on the caseload of each
eligibility change or case closure reason;
(3) A description of the methodology and the supporting data that
it used to calculate its caseload reduction estimates; and
(4) A certification from the Governor that it has taken into
account all reductions resulting from changes in Federal and State
eligibility.
(c) A State requesting a caseload reduction shall provide separate
estimates and information for the overall and two-parent family rates.
(1) The State must base its estimate for the overall case rate on
decreases in its overall caseload compared to the AFDC caseload in FY
1995.
(2) The State must base its estimate for two-parent cases on
decreases in its two-parent caseload compared to the AFDC Unemployed
Parent caseload in FY 1995.
(d)(1) For each State, we will assess the adequacy of information
and estimates using the following criteria: Methodology, estimates and
impact
[[Page 62188]]
compared to other States; quality of data; and completeness and
adequacy of the documentation.
(2) If we request additional information, the State must provide
the information within two weeks of the date of our request.
(3) The State must provide sufficient data to document the
information submitted under paragraph (b) of this section.
(e) We will not consider a caseload reduction factor for approval
unless the State reports case-record data on individuals and families
served by any separate State program, as required under Sec. 275.3(d)
of this chapter.
(f) A State may only apply the caseload reduction factor that we
have determined to its participation rate. If a State disagrees with
our caseload reduction factor, then the determination may be considered
an adverse action; therefore, a State has the right to appeal such a
decision, as specified at Sec. 272.7 of this chapter.
Sec. 271.42 Which reductions count in determining the caseload
reduction factor?
(a)(1) Each State's estimate must factor out any caseload decreases
due to Federal requirements or State changes in eligibility rules since
FY 1995 that directly affect a family's eligibility for assistance
(e.g., more stringent income and resource limitations, time limits).
(2) A State need not factor out calculable effects of enforcement
mechanisms or procedural requirements that are used to enforce existing
eligibility criteria (e.g., fingerprinting or other verification
techniques) to the extent that such mechanisms or requirements identify
or deter families ineligible under existing rules.
(b) States must include cases receiving assistance in separate
State programs as part of its caseload. However, we will consider
excluding cases in the separate State program under the following
circumstances, if adequately documented:
(1) The cases overlap with or duplicate cases in the TANF caseload;
(2) They are cases made ineligible for Federal benefits by Pub. L.
104-193 that are receiving only State-funded cash assistance, nutrition
assistance, or other benefits; or
(3) They are cases that are receiving only State earned income tax
credits, child care, transportation subsidies or benefits for working
families that are not directed at their basic needs.
Sec. 271.43 What is the definition of a ``case receiving assistance''
in calculating the caseload reduction factor?
(a) The caseload reduction factor is based on decreases in caseload
(other than those excluded pursuant to Sec. 271.42) in both a State's
TANF program and in any separate State programs that are used to meet
the maintenance-of-effort requirement.
(b)(1) For fiscal year 1995, we will use AFDC caseload data.
(2) For all other fiscal years, we will determine the caseload
based on all cases in a State receiving assistance (according to the
definition of assistance at Sec. 270.30).
Sec. 271.44 When must a State report the required data on the caseload
reduction factor?
(a) A State must report the necessary documentation on the caseload
reduction factor for the preceding fiscal year by November 15.
(b) We will notify the State of whether we approve or reject the
proposed reduction factor by the following February 15.
Subpart E--State Work Penalties
Sec. 271.50 What happens if a State fails to meet the participation
rates?
(a) If we determine that a State did not achieve one of the
required minimum work participation rates, we must reduce the SFAG
payable to the State.
(b)(1) If there was no penalty for the preceding fiscal year, the
penalty for the current fiscal year is five percent of the adjusted
SFAG.
(2) For each consecutive year that the State is subject to a
penalty under this part, we will increase the amount of the penalty by
two percentage points over the previous year's penalty. However, the
penalty can never exceed 21 percent of the State's adjusted SFAG.
(c) We impose a penalty by reducing the SFAG payable for the fiscal
year that immediately follows our final determination that a State is
subject to a penalty and our final determination of the penalty amount.
(d) In accordance with the procedures specified at Sec. 272.4 of
this chapter, a State may dispute our determination that it is subject
to a penalty.
Sec. 271.51 Under what circumstances will we reduce the amount of the
penalty below the maximum?
(a) In order to qualify for a penalty reduction under paragraphs
(b)(3) and (c) of this section, the State must demonstrate that it has
not diverted cases to a separate State program for the purpose of
avoiding the work participation requirements.
(b) We will reduce the amount of the penalty based on the degree of
the State's noncompliance.
(1) If the State fails only the two-parent participation rate
specified at Sec. 271.23, its maximum penalty will be a percentage of
the penalty specified at Sec. 271.50. This percentage will equal the
percentage of the State's two-parent cases.
(2) If the State fails the overall participation rate specified at
Sec. 271.21, or both rates, its maximum penalty will be the penalty
specified at Sec. 271.50.
(3)(i) In order to receive a reduction of the penalty amounts
determined under paragraphs (b)(1) or (b)(2) of this section, the State
must achieve participation rates equal to a threshold level defined as
90 percent of the applicable minimum participation rate, at Sec. 271.23
or Sec. 271.21. If a State met this threshold, we would base its
reduction on the severity of the failure.
(ii) For this purpose, we will calculate the severity of the
State's failure as the ratio of:
(A) The difference between the participation rate achieved by the
State and the 90 percent ``threshold'' level; and
(B) The difference between the minimum applicable participation
rate and the threshold level.
(c)(1) We may reduce the penalty if the State failed to achieve a
participation rate because:
(i) It meets the definition of a needy State, specified at
Sec. 270.30 of this chapter, or
(ii) Noncompliance is due to extraordinary circumstances such as a
natural disaster or regional recession.
(2) In determining noncompliance under paragraph (c)(1)(ii) of this
section, we will consider objective evidence of extraordinary
circumstances if the State chooses to submit it.
Sec. 271.52 Is there a way to waive the State's penalty for failing to
achieve either of the participation rates?
(a) We will not impose a penalty under this part if we determine
that the State has reasonable cause for its failure.
(b) In addition to the general reasonable cause criteria specified
at Sec. 272.5 of this chapter, a State may also submit a request for a
reasonable cause exemption from the requirement to meet the minimum
participation rate in two specific case situations, if it demonstrates
that it has not diverted cases to a separate State program for the
purpose of avoiding the work participation rates.
(1) We will determine that a State has reasonable cause if it
demonstrates that failure to meet the work participation rates is
attributable to its provision of good cause domestic violence waivers
as follows:
(i) To demonstrate reasonable cause, a State must provide evidence
that it
[[Page 62189]]
achieved the applicable work rates, except with respect to any
individuals receiving good cause waivers of work requirements (i.e.,
when cases with good cause waivers are removed from the calculations in
Secs. 271.22(b) and 271.24(b)); and
(ii) A State must grant good cause domestic violence waivers
appropriately, in accordance with the criteria specified at Sec. 270.30
of this chapter. If a State fails to meet the criteria for ``good cause
domestic violence waivers'' specified at Sec. 270.30 of this chapter,
the Secretary will not grant reasonable cause under this paragraph (b).
(2) We will determine that a State has reasonable cause if it
demonstrates that its failure to meet the work participation rates is
attributable to its provision of assistance to refugees in federally-
approved alternative projects under section 412(e)(7) of the
Immigration and Nationality Act (8 U.S.C. 1522(e)(7)).
(c) In accordance with the procedures specified at Sec. 272.4 of
this chapter, a State may dispute our determination that it is subject
to a penalty.
Sec. 271.53 Can a State correct the problem before incurring a
penalty?
(a) Yes. A State may enter into a corrective compliance plan to
remedy a problem that caused its failure to meet a participation rate,
as specified at Sec. 272.6 of this chapter.
(b) To qualify for a penalty reduction under Sec. 272.6(i)(1) of
this chapter, based on significant progress in discontinuing a
violation, a State must reduce the difference between the participation
rate it achieved in the year for which it is subject to a penalty and
the rate applicable during the penalty year by 50 percent.
Sec. 271.54 Is a State subject to any other penalty relating to its
work program?
(a) If we determine that, during a fiscal year, a State has
violated section 407(e) of the Act, relating to imposing penalties
against individuals, we must reduce the SFAG payable to the State.
(b) The penalty amount for a fiscal year will equal between one and
five percent of the adjusted SFAG.
(c) We impose a penalty by reducing the SFAG payable for the fiscal
year that immediately follows our final determination that a State is
subject to a penalty and our final determination of the penalty amount.
Sec. 271.55 Under what circumstances will we reduce the amount of the
penalty for not properly imposing penalties on individuals?
(a) We will reduce the amount of the penalty based on the degree of
the State's noncompliance.
(b) In determining the size of any reduction, we will consider
objective evidence of:
(1) Whether the State has established a control mechanism to ensure
that the grants of individuals are reduced for refusing to engage in
required work; and
(2) The percentage of cases for which the grants have not been
appropriately reduced.
(c) Neither the reasonable cause provisions at Sec. 272.5 of this
chapter nor the corrective compliance plan provisions at Sec. 272.6 of
this chapter applies to this penalty.
Subpart F--Waivers
Sec. 271.60 How do existing welfare waivers affect the participation
rate?
(a) If a State is implementing policies in accordance with an
approved waiver that meets the provisions of section 415(a)(1)(A) of
the Act and the definition of a waiver at Sec. 270.30 of this chapter,
the provisions of section 407 of the Act do not apply, to the extent
that they are inconsistent with the waiver.
(b)(1) In the case of waivers addressing activities in which an
individual may participate in order to be ``engaged in work'' and count
toward the minimum participation rates (as specified at Sec. 271.30):
(i) We will include provisions of prior law as part of such
waivers; and
(ii) We will recognize such waivers as inconsistent.
(2) In the case of waivers addressing minimum average hours of work
per week necessary to be ``engaged in work'' for a month (as specified
at Secs. 271.31 and 271.32):
(i) We will recognize the waiver as inconsistent if it specifies an
individual's mandated hours of participation in accordance with his/her
particular circumstances, either as specified by criteria described in
the waiver or under an individualized plan or similar agreement for
achieving self-sufficiency; and
(ii) We will not recognize as inconsistent any waiver designed to
increase the mandatory work hours for a class of recipients under the
former JOBS program.
(c) Except as applicable to research cases in paragraph (d) of this
section, we will not recognize any prior law exemptions as part of the
waiver with respect to the denominator of the participation rates,
found at Secs. 271.21 and 271.23.
(d) If a State is continuing research group policies in order to
complete an impact evaluation of a waiver demonstration, the
demonstration's control group may be subject to prior law and its
experimental treatment group may be also subject to prior law, except
as modified by the waiver.
(e) The additional requirements at Sec. 272.8 of this chapter apply
to the use of continuing waiver alternative work requirements in the
calculation of the work participation penalty.
Subpart G--Non-displacement
Sec. 271.70 What safeguards are there to ensure that participants in
work activities do not displace other workers?
(a) An adult taking part in a work activity outlined in Sec. 271.30
may not fill a vacant employment position if:
(1) Another individual is on layoff from the same or any
substantially equivalent job; or
(2) The employer has terminated the employment of any regular
employee or caused an involuntary reduction in its work force in order
to fill the vacancy with an adult taking part in a work activity.
(b) A State must establish and maintain a grievance procedure to
resolve complaints of alleged violations of the displacement rule in
this section.
(c) This section does not preempt or supersede State or local laws
providing greater protection for employees from displacement.
PART 272--ACCOUNTABILITY PROVISIONS--GENERAL
Sec.
272.0 What definitions apply to this part?
272.1 What penalties will apply to States?
272.2 When do the TANF penalty provisions apply?
272.3 How will we determine if a State is subject to a penalty?
272.4 What happens if we determine that a State is subject to a
penalty?
272.5 Under what general circumstances will we determine that a
State has reasonable cause?
272.6 What if a State does not demonstrate reasonable cause?
272.7 How can a State appeal our decision to take a penalty?
272.8 What is the relationship of continuing waivers on the penalty
process for work participation and time limits?
Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 606, 609, and 610.
Sec. 272.0 What definitions apply to this part?
The general TANF definitions at Sec. 270.30 of this chapter apply
to this part.
Sec. 272.1 What penalties will apply to States?
(a) We will assess fiscal penalties against States under
circumstances defined in parts 271 through 275 of this chapter. The
penalties are:
(1) A penalty of the amount by which a State misused its TANF
funds;
[[Page 62190]]
(2) A penalty of five percent of the adjusted SFAG for intentional
misuse of such funds;
(3) A penalty of four percent of the adjusted SFAG for failure to
submit an accurate, complete and timely required report;
(4) A penalty of up to 21 percent of the adjusted SFAG for failure
to satisfy the minimum participation rates;
(5) A penalty of no more than two percent of the adjusted SFAG for
failure to participate in IEVS;
(6) A penalty of no more than five percent of the adjusted SFAG for
failure to enforce penalties on recipients who are not cooperating with
the State Child Support Enforcement (IV-D) Agency;
(7) A penalty equal to the outstanding loan amount, plus interest,
for failure to repay a Federal loan;
(8) A penalty equal to the amount by which a State fails to meet
its TANF MOE requirement;
(9) A penalty of five percent of the adjusted SFAG for failure to
comply with the five-year limit on Federal assistance;
(10) A penalty equal to the amount of contingency funds unremitted
by a State for a fiscal year;
(11) A penalty of no more than five percent of the adjusted SFAG
for the failure to maintain assistance to an adult single custodial
parent who cannot obtain child care for a child under age six;
(12) A penalty of no more than two percent of the adjusted SFAG
plus the amount a State has failed to expend of its own funds to
replace the reduction to its SFAG due to the assessment of penalties in
this section in the year of the reduction;
(13) A penalty equal to the amount of the State's Welfare-to-Work
formula grant for failure to meet its TANF MOE requirement during a
year in which the formula grant is received; and
(14) A penalty equal to not less than one percent and not more than
five percent of the adjusted SFAG for failure to reduce assistance for
recipients refusing without good cause to work.
(b) In the event of multiple penalties for a fiscal year, we will
add all applicable penalty percentages together. We will then assess
the penalty amount against the adjusted SFAG that would have been
payable to the State if no penalties were assessed. As a final step, we
will subtract other (fixed) penalty amounts from the adjusted SFAG.
(c)(1) We will take the penalties specified in paragraphs (a)(1),
(a)(2) and (a)(6) of this section by reducing the SFAG payable for the
quarter that immediately follows our final decision.
(2) We will take the penalties specified in paragraphs (a)(3),
(a)(4), (a)(5), (a)(7), (a)(8), (a)(9), (a)(10), (a)(11), (a)(12),
(a)(13), and (a)(14) of this section by reducing the SFAG payable for
the fiscal year that immediately follows our final decision.
(d) When imposing the penalties in paragraph (a) of this section,
the total reduction in an affected State's grant must not exceed 25
percent. If this 25 percent limit prevents the recovery of the full
penalty amount imposed on a State during a fiscal year, we will apply
the remaining amount of the penalty to the SFAG payable for the
immediately succeeding fiscal year.
(e)(1) In the same fiscal year, a State must expend additional
State funds to replace any reduction in the SFAG resulting from
penalties.
(2) The State must document compliance with this provision on its
TANF Financial Report (or Territorial Financial Report).
Sec. 272.2 When do the TANF penalty provisions apply?
(a) A State will be subject to the penalties specified in
Secs. 272.1(a)(1), (2), (7), (8), (9), (10), (11), (12), (13), and (14)
for conduct occurring on and after the first day the State operates the
TANF program.
(b) A State will be subject to the penalties specified in
Secs. 272.1(a)(3), (4), (5), and (6) for conduct occurring on and after
July 1, 1997, or the date that is six months after the first day the
State operates the TANF program, whichever is later.
(c) For the period of time prior to [effective date of final
rules], we will assess State conduct as specified in Sec. 270.40(b) of
this chapter.
Sec. 272.3 How will we determine if a State is subject to a penalty?
(a) We will use the single audit, as implemented through OMB
Circular A-133, to determine if a State is subject to a penalty for
misusing Federal TANF funds (Sec. 273.10 of this chapter),
intentionally misusing Federal TANF funds (Sec. 273.12 of this
chapter), failing to participate in IEVS (Sec. 274.10 of this chapter),
failing to comply with paternity establishment and child support
requirements (Sec. 274.31 of this chapter), failing to maintain
assistance to an adult single custodial parent who cannot obtain child
care for child under six (Sec. 274.20 of this chapter), and failing to
reduce assistance to a recipient who refuses without good cause to work
(Sec. 271.14 of this chapter).
(b) We will use data reports required under part 275 of this
chapter to determine if a State failed to meet participation rates
(Sec. 271.21 of this chapter) or failed to comply with the five-year
limit on Federal assistance (Sec. 274.1 of this chapter).
(1) Data in these reports are subject to our verification in
accordance with Sec. 275.7 of this chapter.
(2) States may not revise the sampling frames or program
designations for cases in the quarterly TANF and TANF MOE Data Reports
retroactively (i.e., after submission).
(c) We will use the TANF Financial Report (or, as applicable, the
Territorial Financial Report) to determine if a State should be
penalized for failure to meet the TANF MOE requirement (Sec. 273.7 of
this chapter), the Contingency Fund MOE requirement (Sec. 274.76 of
this chapter), and to replace SFAG reductions with State-only funds
(Sec. 274.50 of this chapter). Data in these reports are subject to our
verification in accordance with Sec. 275.6 of this chapter.
(d) We will determine that a State is subject to the specific
penalties for failure to perform, if we find information in the reports
under paragraphs (b) and (c) of this section to be insufficient or if
we determine that the State has not adequately documented actions
verifying that it has met the participation rates.
(e) To determine if a State has met its TANF MOE requirement, we
will use the additional information listed at Sec. 273.7 of this
chapter.
(f) States should maintain records in accordance with Sec. 92.42 of
this title.
Sec. 272.4 What happens if we determine that a State is subject to a
penalty?
(a) If we determine that a State is subject to a penalty, we will
notify the State in writing, specifying which penalty we will impose
and the reasons for the penalty.
(b) Within 60 days of when it receives our notification, the State
may submit to ACF, a written response that:
(1) Demonstrates that our determination is incorrect because our
data or the method we used in determining the penalty was in error or
was insufficient, or that the State acted, prior to [effective date of
final regulations], on a reasonable interpretation of the statute;
(2) Demonstrates that the State had reasonable cause for failing to
meet the requirement(s); and/or
(3) Provides a corrective compliance plan, pursuant to Sec. 272.6.
(c) If we find that we determined the penalty erroneously, or that
the State has adequately demonstrated that it had reasonable cause for
failing to meet one or more requirements, we will not impose the
penalty.
[[Page 62191]]
(d) Reasonable cause and a corrective compliance plan are not
available for failing to repay a Federal loan; failing to meet the TANF
MOE requirement; failing to maintain 100 percent TANF MOE after
receiving Contingency Funds; failing to expend additional State funds
to replace adjusted SFAG reductions due to the imposition of one or
more penalties listed in Sec. 272.1; or failing to maintain 80, or 75,
percent, as appropriate, TANF MOE during a year in which a Welfare-to-
Work grant is received.
(e) We will notify the State in writing of our findings regarding
its response.
(f) If we request additional information from a State, it must
provide the information within two weeks of the date of our request.
Sec. 272.5 Under what general circumstances will we determine that a
State has reasonable cause?
(a) We will not impose a penalty against a State if we determine
that the State had reasonable cause for its failure. The general
factors a State may use to claim reasonable cause are limited to the
following:
(1) Natural disasters and other calamities (e.g., hurricanes,
earthquakes, fire) whose disruptive impact was so significant as to
cause the State's failure;
(2) Formally issued Federal guidance that provided incorrect
information resulting in the State's failure; or
(3) Isolated, non-recurring problems of minimal impact that are not
indicative of a systemic problem.
(b) A State may also use the additional factors for claiming
reasonable cause for failure to satisfy the five-year limit at
Sec. 274.3 of this chapter and to meet the minimum participation rates
at Sec. 271.52 of this chapter.
(c) We will not forgive a State penalty under Secs. 272.1(a)(4),
(a)(9), (a)(11), or (a)(14) based on reasonable cause if we detect a
significant pattern of diversion of families to a separate State
program that achieves the effect of avoiding the work participation
rates at Secs. 271.22 or 271.24.
(d) We will not forgive a State penalty under Secs. 272.1(a)(4),
(a)(6), (a)(9), or (a)(14) based on reasonable cause if we detect a
significant pattern of diversion of families to a separate State
program that achieves the effect of diverting the Federal share of
child support collections.
Sec. 272.6 What if a State does not demonstrate reasonable cause?
(a) A State may accept the penalty or enter into a corrective
compliance plan that will correct or discontinue the violation within
six months in order to avoid the penalty if:
(1) A State does not claim reasonable cause; or
(2) We find that the State does not have reasonable cause.
(b) A State that does not claim reasonable cause will have 60 days
from receipt of our notice described in Sec. 272.4(a) to submit its
corrective compliance plan.
(c) A State that unsuccessfully claimed reasonable cause will have
60 days from the date it received our second notice, described in
Sec. 272.4(f), to submit its corrective compliance plan.
(d) The corrective compliance plan must include:
(1) A complete analysis of why the State did not meet the
requirements;
(2) A detailed description of how the State will correct or
discontinue, as appropriate, the violation in a timely manner;
(3) The milestones, including interim process and outcome goals,
the State will achieve to assure it comes into compliance within the
specified time period; and
(4) A certification by the Governor that the State is committed to
correcting or discontinuing the violation, in accordance with the plan.
(e) During the 60-day period following our receipt of the State's
corrective compliance plan, we may request additional information and
consult with the State on modifications to the plan.
(f) If an acceptable corrective compliance plan is not submitted on
time, we will assess the penalty immediately.
(g) A corrective compliance plan is deemed to be accepted if we
take no action during the 60-day period following our receipt of the
plan.
(h) We will not impose a penalty against a State with respect to
any violation covered by a corrective compliance plan that we accept if
the State completely corrects or discontinues, as appropriate, the
violation within the period covered by the plan. This period must be no
longer than six months from the date we accept a State's compliance
plan.
(i)(1) Under limited circumstances, and subject to paragraph (i)(2)
of this section, we may reduce the penalty if the State fails to
completely correct or discontinue the violation pursuant to its
corrective compliance plan and in a timely manner. To receive a reduced
penalty, the State must demonstrate that it met one or both of the
following conditions:
(i) Although it did not achieve full compliance, the State made
substantial progress towards correcting or discontinuing the violation;
or
(ii) The State's failure to comply fully was attributable to either
a natural disaster or regional recession.
(2) We will not reduce a State's penalty:
(i) Under Secs. 272.1(a)(4), (a)(9), (a)(11), or (a)(14) if we
detect a significant pattern of diversion of families to a separate
State program that achieves the effect of avoiding the work
participation rates and the State fails to correct the diversion; or
(ii) Under Secs. 272.1(a)(4), (a)(6), (a)(9), or (a)(11) if we
detect a significant pattern of diversion of families to a separate
State program that achieves the effect of diverting the Federal share
of child support collections and the State fails to correct the
diversion.
Sec. 272.7 How can a State appeal our decision to take a penalty?
(a) We will formally notify the chief executive officer of the
State of an adverse action (i.e., the reduction in the SFAG) within
five days after we determine that a State is subject to a penalty under
parts 271 through 275 of this chapter.
(b) The State may file an appeal of the action, in whole or in
part, to the HHS Departmental Appeals Board (the Board) within 60 days
after the date it receives notice of the adverse action. The State must
include the brief and all supporting documents with its appeal when it
is filed. The State must send a copy of the appeal to the Office of the
General Counsel, Children, Families and Aging Division, Room 411-D, 200
Independence Avenue, S.W., Washington, D.C. 20201.
(c) ACF must file its reply brief and supporting documentation
within 30 days after the State files its appeal.
(d) The appeal to the Board must follow the provisions of the rules
under this section and those at Secs. 16.2, 16.9, 16.10, and 16.13
through 16.22 of this title.
(e) The Board will consider an appeal filed by a State on the basis
of the documentation and briefs submitted, along with any additional
information the Board may require to support a final decision. In
deciding whether to uphold an adverse action or any portion of such
action, the Board will conduct a thorough review of the issues and make
a final determination within 60 days after the appeal is filed.
(f)(1) The filing date shall be the date materials are received by
the Board in a form acceptable to it.
(2) If the Board requires additional documentation to reach its
decision, the 60 days shall be tolled for a reasonable period,
specified by the Board, to allow production of the documentation.
[[Page 62192]]
(g)(1) A State may obtain judicial review of a final decision by
the Board by filing an action within 90 days after the date of such
decision. It should file this action with the district court of the
United States in the judicial district where the State agency is
located or in the United States District Court for the District of
Columbia.
(2) The district court will review the final decision of the Board
on the record established in the administrative proceeding, in
accordance with the standards of review prescribed by 5 U.S.C. 706(2).
The court will base its review on the documents and supporting data
submitted to the Board.
Sec. 272.8 What is the relationship of continuing waivers on the
penalty process for work participation and time limits?
(a) In order for the State's alternative waiver requirements to be
considered in the calculation of the work participation rate and the
time limit requirement, the Governor must certify in writing to the
Secretary:
(1) The specific inconsistencies (i.e., alternative waiver
requirements) that the State chooses to continue;
(2) The reasons for continuing the alternative waiver requirements,
including how their continuation is consistent with the purposes of the
waiver; and
(3) Consistent with the waiver and its purpose, the standards that
the State will use to:
(i) Assign individuals to the alternative waiver work activities or
to an alternative number of hours; and
(ii) Determine exemptions from or extensions to the time limit.
(b) If a State using the alternative waiver requirements fails to
meet the work participation rate or the time limit requirement:
(1) The State is not eligible for a reasonable cause exception from
the applicable penalty under Secs. 272.2 (a)(4) or (a)(9), nor for any
reduction of the work penalty under Secs. 271.51 (b)(3) or (c) of this
chapter;
(2) The State must consider modification of its alternative waiver
requirements as part of its corrective compliance plan; and
(3) If the State continues waivers related to the failure to
achieve compliance with the work requirements described in subparts B
and C of part 271 of this chapter or the time limits described in
Secs. 274.1 and 274.2 of this chapter and still fails to correct the
violation, it will not be eligible for a reduced penalty for related
noncompliance under Sec. 272.6(i)(1).
(c) The Secretary will use the data submitted by the States
pursuant to Sec. 275.3 of this chapter to calculate and make public the
work participation rates and the percentage of families with an adult
that received Federal TANF benefits for more than 60 months under both
the TANF requirement and the State's alternative waiver requirement.
PART 273--STATE TANF EXPENDITURES
Subpart A--What Rules Apply to a State's Maintenance of Effort?
Sec.
273.0 What definitions apply to this part?
273.1 How much State money must a State expend annually to meet the
TANF MOE requirement?
273.2 What kinds of State expenditures count toward meeting a
State's annual MOE expenditure requirement?
273.3 When do child care expenditures count?
273.4 When do educational expenditures count?
273.5 When do expenditures in separate State programs count?
273.6 What kinds of expenditures do not count?
273.7 How will we determine the level of State expenditures?
273.8 What happens if a State fails to meet the TANF MOE
requirement?
273.9 May a State avoid a TANF MOE penalty because of reasonable
cause or through corrective compliance?
Subpart B--What Rules Apply to the Use of Federal Funds?
273.10 What actions are to be taken against a State if it uses
Federal TANF funds in violation of the Act?
273.11 What uses of Federal TANF funds are improper?
273.12 How will we determine if a State intentionally misused
Federal TANF funds?
273.13 What types of activities are subject to the administrative
cost limit on Federal TANF grants?
Subpart C--What Rules Apply to Individual Development Accounts?
273.20 What definitions apply to Individual Development Accounts
(IDAs)?
273.21 May a State use the TANF grant to fund IDAs?
273.22 Are there any restrictions on IDA funds?
273.23 How does a State prevent a recipient from using the IDA
account for unqualified purposes?
Authority: 42 U.S.C. 604, 607, 609, and 862a.
Subpart A--What Rules Apply to a State's Maintenance of Effort?
Sec. 273.0 What definitions apply to this part?
(a) Except as noted in Sec. 273.2(d), the general TANF definitions
at Sec. 270.30 of this chapter apply to this part.
(b) Administrative costs means costs necessary for the proper
administration of the TANF program or separate State programs. It
includes the costs for general administration and coordination of these
programs, including indirect (or overhead) costs. Examples of
administrative costs include:
(1) Salaries and benefits and all other indirect (or overhead)
costs not associated with providing program services (such as
diversion, assessment, development of employability plans, work
activities and post-employment services, and supports) to individuals;
(2) Preparation of program plans, budgets, and schedules;
(3) Monitoring of programs and projects;
(4) Fraud and abuse units;
(5) Procurement activities;
(6) Public relations;
(7) Services related to accounting, litigation, audits, management
of property, payroll, and personnel;
(8) Costs for goods and services required for administration of the
program such as rental and purchase of equipment, utilities, office
supplies, postage, and rental and maintenance of office space;
(9) Travel costs incurred for official business;
(10) Management information systems not related to the tracking and
monitoring of TANF requirements (e.g., for a personnel and payroll
system for State staff); and
(11) Preparing reports and other documents related to program
requirements.
Sec. 273.1 How much State money must a State expend annually to meet
the TANF MOE requirement?
(a)(1) The minimum TANF MOE for a fiscal year is 80 percent of a
State's historic State expenditures.
(2) However, if a State meets the minimum work participation rate
requirements in a fiscal year, as required under Secs. 271.21 and
271.23 of this chapter, then for that fiscal year, the minimum TANF MOE
is 75 percent of the State's historic State expenditures.
(b) The TANF MOE level also depends on whether a Tribe or
consortium of Tribes residing in a State has received approval to
operate its own TANF program. The State's TANF MOE level for a fiscal
year will be reduced the same percentage as the SFAG was reduced as the
result of any Tribal Family Assistance Grants awarded to Tribal
grantees in the State for that year.
Sec. 273.2 What kinds of State expenditures count toward meeting a
State's annual MOE expenditure requirement?
(a) Expenditures of State funds in TANF or separate State programs
may
[[Page 62193]]
count if they were made for the following types of services:
(1) Cash assistance, including assigned child support collected by
the State, distributed to the family, and disregarded in determining
eligibility for, and amount of the TANF assistance payment;
(2) Child care assistance (see Sec. 273.3);
(3) Education activities designed to increase self-sufficiency, job
training, and work (see Sec. 273.4);
(4) Any other use of funds allowable under section 404(a)(1) of the
Act and consistent with the goals at Sec. 270.20 of this chapter; and
(5) Administrative costs for activities listed in paragraphs (a)(1)
through (a)(4) of this section, if these costs do not exceed 15 percent
of the total amount of countable expenditures. Information technology
and computerization needed for tracking or monitoring services are
excluded from this determination. ``Administrative costs'' has the
meaning specified at Sec. 273.0(b).
(b) The services listed under paragraph (a) of this section may be
counted only if they have been provided to or on behalf of eligible
families. An ``eligible family,'' as defined by the State, must:
(1) Be comprised of citizens, qualified aliens (as defined in
Sec. 270.30 of this chapter), non-immigrants under the Immigration and
Nationality Act, aliens paroled into the U.S. for less than one year,
or, in the case of aliens not lawfully present in the U.S., provided
that the State enacted a law after August 22, 1996, that
``affirmatively provides'' for such services; and
(2) Include a child living with a custodial parent or other adult
caretaker relative (or consist of a pregnant individual); and
(3) Be financially eligible according to the TANF income and
resource standards established by the State under its TANF plan.
(c) Services listed under paragraph (a) of this section may also be
provided to a family that meets the criteria under paragraphs (b) (1)
and (2) of this section, but which became ineligible solely due to the
time limitation given under Sec. 274.1 of this chapter.
(d) Assistance does not have the meaning given in Sec. 270.30 of
this chapter, but for MOE purposes can be ongoing, short-term or one-
time only and may include services.
(e) The expenditures for services in separate State programs listed
under paragraph (a) of this section only count if they also meet the
requirements of Sec. 273.5. Expenditures that fall within the
prohibitions in Sec. 273.6 do not count.
Sec. 273.3 When do child care expenditures count?
(a) State funds expended to meet the requirements of the Matching
Fund of the Child Care and Development Fund (i.e., match and MOE
amounts) that also count as TANF MOE expenditures are limited to the
State's child care MOE amount pursuant to section 418(a)(2)(C) of the
Act.
(b) The child care expenditures must be made to or on behalf of
eligible families, as defined in Sec. 273.2(b).
Sec. 273.4 When do educational expenditures count?
(a) Expenditures for educational activities or services count if:
(1) They are targeted to eligible families (as defined in
Sec. 273.2(b)) to increase self-sufficiency, job training, and work;
and
(2) They are not generally available to other residents of the
State.
(b) Expenditures on behalf of eligible families for educational
services or activities provided through the public education system do
not count unless they meet the requirements under paragraph (a) of this
section.
Sec. 273.5 When do expenditures in separate State programs count?
(a) If the expenditures in the separate State program(s) were
previously authorized and were allowable under section 403 of prior
law, then they may count in their entirety.
(b) If the expenditures under the separate State program(s) had not
been previously authorized and allowable under section 403 of prior
law, then only the amount expended in excess of money expended on such
program(s) in FY 1995 may count.
Sec. 273.6 What kinds of expenditures do not count?
The following kinds of expenditures do not count:
(a) Expenditures of funds that originated with the Federal
government;
(b) State funds that are used to match
Federal funds (or expenditures of State funds that support claims
for Federal matching funds), including State expenditures under the
Medicaid program under title XIX of the Act;
(c) Expenditures that States make as a condition of receiving
Federal funds under other programs except as provided under Sec. 273.3;
(d) Expenditures made in a prior fiscal year;
(e) Expenditures used to match Federal Welfare-to-Work funds
provided under section 403(a)(5) of the Act; and
(f) Expenditures made in the TANF program to replace the reductions
in the SFAG as a result of penalties pursuant to Sec. 274.50 of this
chapter.
Sec. 273.7 How will we determine the level of State expenditures?
(a) Each State must report its expenditures quarterly to us as
required under part 275 of this chapter.
(b) Each State must also submit an annual addendum to its TANF
Financial Report (or, as applicable, its Territorial Financial Report)
on separate State programs for the fourth quarter containing:
(1) A description of the specific State-funded program activities
provided to eligible families;
(2) Each program's statement of purpose (how the program serves
eligible families);
(3) The definitions of each work activity in which families in the
program are participating;
(4) A statement whether the program/activity had been previously
authorized and allowable as of August 21, 1996, under section 403 of
prior law;
(5) The FY 1995 State expenditures for each program/activity not
authorized and allowable as of August 21, 1996 (see Sec. 273.5(b));
(6) The total number of eligible families served by each program as
of the end of the fiscal year;
(7) The eligibility criteria for the families served under each
program/activity; and
(8) A certification that those families served met the State's
criteria for ``eligible families.''
Sec. 273.8 What happens if a State fails to meet the TANF MOE
requirement?
(a) If any State fails to meet its TANF MOE requirement for any
fiscal year, then we will reduce dollar-for-dollar the amount of the
SFAG payable to the State for the following fiscal year.
(b) If a State fails to meet its TANF MOE requirement for any
fiscal year, and the State received a Welfare-to-Work formula grant
provided under section 403(a)(5)(A) of the Act for the same fiscal
year, we will reduce the amount of the SFAG payable to the State for
the following fiscal year by the amount of the Welfare-to-Work formula
grant paid to the State.
Sec. 273.9 May a State avoid a TANF MOE penalty because of reasonable
cause or through corrective compliance?
The reasonable cause and corrective compliance provisions at
Secs. 272.4, 272.5, and 272.6 of this chapter do not apply.
[[Page 62194]]
Subpart B--What Rules Apply to the Use of Federal Funds?
Sec. 273.10 What actions are to be taken against a State if it uses
Federal TANF funds in violation of the Act?
(a) If a State misuses such funds, we will reduce the SFAG payable
for the immediately succeeding fiscal year quarter by the amount
misused.
(b) If we determine that the misuse was intentional, we will reduce
the SFAG payable for the immediately succeeding fiscal year quarter in
an amount equal to five percent of the adjusted SFAG.
(c) The reasonable cause and corrective compliance provisions of
Secs. 272.4 through 272.6 of this chapter apply to penalties under
paragraphs (a) and (b) of this section.
Sec. 273.11 What uses of Federal TANF funds are improper?
(a) States may use Federal TANF funds for expenditures that:
(1) Are reasonably related to the purposes of TANF, as specified at
Sec. 270.20 of this chapter; or
(2) The State was authorized to use IV-A or IV-F funds under prior
law, as in effect on September 30, 1995, or (at the option of the
State) August 21, 1996.
(b) We will consider use of funds in violation of paragraph (a) of
this section, the provisions of the Act, section 115 of PRWORA, the
provisions of part 92 of this title, or OMB Circular A-87 to be misuse
of funds.
Sec. 273.12 How will we determine if a State intentionally misused
Federal TANF funds?
(a) The State must show, to our satisfaction, that it used the
funds for purposes that a reasonable person would consider to be within
the purposes of the TANF program (as specified at Sec. 270.20 of this
chapter) and the provisions listed in Sec. 273.11.
(b) We will consider funds to be misused intentionally if there is
supporting documentation, such as Federal guidance or policy
instructions, indicating that Federal TANF funds could not be used for
that purpose.
(c) We will also consider funds to be misused intentionally if,
after notification that we have determined such use to be improper, the
State continues to use the funds in the same or similarly improper
manner.
Sec. 273.13 What types of activities are subject to the administrative
cost limit on Federal TANF grants?
(a) Activities that fall within the definition of ``administrative
costs'' at Sec. 273.0(b) are subject to this limit.
(b) Information technology and computerization for tracking and
monitoring are not administrative costs for this purpose.
Subpart C--What Rules Apply to Individual Development Accounts?
Sec. 273.20 What definitions apply to Individual Development Accounts
(IDAs)?
The following definitions apply with respect to IDAs:
Date of acquisition means the date on which a binding contract to
obtain, construct, or reconstruct the new principal residence is
entered into.
Eligible educational institution means an institution described in
section 481(a)(1) or section 1201(a) of the Higher Education Act of
1965 (20 U.S.C. 1088(a)(1) or 1141(a)), as such sections were in effect
on August 21, 996. Also, an area vocational education school (as
defined in subparagraph (C) or (D) of section 521(4) of the Carl D.
Perkins Vocational and Applied Technology Education Act (20 U.S.C.
2471(4)) that is in any State (as defined in section 521(33) of such
Act), as such sections were in effect on August 22, 1996.
Individual Development Account (IDA) means an account established
by or for an individual who is eligible for TANF assistance to allow
the individual to accumulate funds for specific purposes.
Post-secondary educational expenses means a student's tuition and
fees required for the enrollment or attendance at an eligible
educational institution, and required course fees, books, supplies, and
equipment required at an eligible educational institution.
Qualified acquisition costs means the cost of obtaining,
constructing, or reconstructing a residence. The term includes any
usual or reasonable settlement, financing, or other closing costs.
Qualified business means any business that does not contravene
State law or public policy.
Qualified business capitalization expenses means business expenses
pursuant to a qualified plan.
Qualified entity means a non-profit, tax-exempt organization, or a
State or local government agency that works cooperatively with a non-
profit, tax-exempt organization.
Qualified expenditures means expenses entailed in a qualified plan,
including capital, plant equipment, working capital, and inventory
expenses.
Qualified first-time home buyer means a taxpayer (and, if married,
the taxpayer's spouse) who has not owned a principal residence during
the three-year period ending on the date of acquisition of the new
principal residence.
Qualified plan means a business plan that is approved by a
financial institution, or by a nonprofit loan fund having demonstrated
fiduciary integrity. It includes a description of services or goods to
be sold, a marketing plan, and projected financial statements, and it
may require the eligible recipient to obtain the assistance of an
experienced entrepreneurial advisor.
Qualified principal residence means the place a qualified first-
time home buyer will reside in in accordance with the meaning of
section 1034 of the Internal Revenue Code of 1986 (26 U.S.C. 1034). The
qualified acquisition cost of the residence cannot exceed the average
purchase price of similar residences in the area.
Sec. 273.21 May a State use the TANF grant to fund IDAs?
States may use TANF grants to fund IDAs for individuals who are
eligible for TANF assistance.
Sec. 273.22 Are there any restrictions on IDA funds?
(a) A recipient may deposit only earned income into an IDA.
(b) A recipient's contributions to an IDA may be matched only by a
qualified entity.
(c) A recipient may withdraw funds only for the following reasons:
(1) To cover post-secondary education expenses, if the amount is
paid directly to an eligible educational institution;
(2) For the recipient to purchase a first home, if the amount is
paid directly to the person to whom the amounts are due and it is a
qualified acquisition cost for a qualified principal residence by a
qualified first-time home buyer; or
(3) For business capitalization, if the amounts are paid directly
to a business capitalization account in a federally-insured financial
institution and used for a qualified business capitalization expense.
Sec. 273.23 How does a State prevent a recipient from using the IDA
account for unqualified purposes?
To prevent recipients from using the IDA account improperly, States
may do the following:
(a) Count withdrawals as earned income in the month of withdrawal
(unless already counted as income);
(b) Count withdrawals as resources in determining eligibility; or
(c) Take such other steps as the State has established in its State
plan or written State policies to deter inappropriate use.
[[Page 62195]]
PART 274--OTHER ACCOUNTABILITY PROVISIONS
Subpart A--What Specific Rules Apply for Other Program Penalties?
Sec.
274.0 What definitions apply to this part?
274.1 What restrictions apply to the length of time Federal TANF
assistance may be provided?
274.2 What happens if a State does not comply with the five-year
limit?
274.3 How can a State avoid a penalty for failure to comply with
the five-year limit?
274.10 Must States do computer matching of data records under IEVS
to verify recipient information?
274.11 How much is the penalty for not participating in IEVS?
274.20 What happens if a State sanctions a single parent of a child
under six who cannot get needed child care?
274.30 What procedures exist to ensure cooperation with the child
support enforcement requirements?
274.31 What happens if a State does not comply with the IV-D
sanction requirement?
274.40 What happens if a State does not repay a Federal loan?
274.50 What happens if, in a fiscal year, a State does not expend,
with its own funds, an amount equal to the reduction to the adjusted
SFAG resulting from a penalty?
Subpart B--What are the Funding Requirements for the Contingency Fund?
274.70 What funding restrictions apply to the use of contingency
funds?
274.71 How will we determine 100 percent of historic State
expenditures, the MOE level, for the annual reconciliation?
274.72 For the annual reconciliation requirement, what restrictions
apply in determining qualifying State expenditures?
274.73 What other requirements apply to qualifying State
expenditures?
274.74 When must a State remit contingency funds under the annual
reconciliation?
274.75 What action will we take if a State fails to remit funds as
required?
274.76 How will we determine if a State has met its Contingency
Fund reconciliation MOE level requirement and made expenditures that
exceed its MOE requirement?
274.77 Are contingency funds subject to the same restrictions that
apply to other Federal TANF funds?
Subpart C--What Rules Pertain Specifically to the Spending Levels of
the Territories?
274.80 If a Territory receives Matching Grant funds, what funds
must it expend?
274.81 What expenditures qualify for Territories to meet the
Matching Grant MOE requirement?
274.82 What expenditures qualify for meeting the Matching Grant FAG
amount requirement?
274.83 How will we know if a Territory failed to meet the Matching
Grant funding requirements at Sec. 274.80?
274.84 What will we do if a Territory fails to meet the Matching
Grant funding requirements at Sec. 274.80?
274.85 What rights of appeal are available to the Territories?
Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 609, 654, 1302,
1308, and 1337.
Subpart A--What Specific Rules Apply for Other Program Penalties?
Sec. 274.0 What definitions apply to this part?
The general TANF definitions at Sec. 270.30 of this chapter apply
to this part.
Sec. 274.1 What restrictions apply to the length of time Federal TANF
assistance may be provided?
(a)(1) Subject to the exceptions in this section, no State may use
any of its Federal TANF funds to provide assistance (as defined in
Sec. 270.30 of this chapter) to a family that includes an adult who has
received assistance for a total of five years (60 cumulative months,
whether or not consecutive).
(2) Assistance provided under section 403(a)(5) of the Act (WTW) is
not subject to the time limit in paragraph (a)(1) of this section.
(3) States may define ``a family that includes an adult,'' but may
not exclude families from their definition solely for the purpose of
avoiding penalties under Sec. 274.2.
(i) States shall report to us annually on the number of families
excluded because of the State's definition and the circumstances
underlying each exclusion.
(ii) Where we find that a State has excluded families for the
purpose of avoiding a penalty for the five-year time limit, we shall
include those families in the calculation under paragraph (c) of this
section in determining whether a State has complied with time-limit
extension rules and is subject to the penalty described in Sec. 274.2.
(b) States must not count towards the five-year limit:
(1) Any month of receipt of assistance by an individual when she
was a minor who was not the head-of-household or married to the head-
of-household;
(2) Any month in which an adult lived in Indian country (as defined
in section 1151 of title 18, United States Code) or Native Alaskan
Village and at least 50 percent of the adults were not employed; and
(3) Non-cash assistance provided under section 403(a)(5) of the Act
(WTW).
(c) States have the option to extend assistance from Federal TANF
funds beyond the five-year limit for up to 20 percent of their cases.
This provision requires computation of an average monthly percentage
for each fiscal year, with the numerator for each month equal to the
number of families that includes an adult receiving assistance beyond
the five-year limit and the denominator equal to the average monthly
number of families that includes an adult receiving assistance during
the fiscal year or the immediately preceding fiscal year, whichever the
State elects. States are permitted to extend assistance to a family
only on the basis of:
(1) Hardship, as defined by the State; or
(2) The fact that the family includes someone who has been
battered, or subject to extreme cruelty based on the fact that the
individual has been subjected to:
(i) Physical acts that resulted in, or threatened to result in,
physical injury to the individual;
(ii) Sexual abuse;
(iii) Sexual activity involving a dependent child;
(iv) Being forced as the caretaker relative of a dependent child to
engage in non-consensual sexual acts or activities;
(v) Threats of, or attempts at, physical or sexual abuse;
(vi) Mental abuse; or
(vii) Neglect or deprivation of medical care.
(d) If a State opts to extend assistance to part of its caseload as
permitted under paragraph (c) of this section, it only determines
whether or not the extension applies to a specific family once an adult
in the family has received 60 cumulative months of assistance.
(e) If the five-year limit is inconsistent with a State's waiver
granted under section 1115 of the Act, which was submitted before
August 22, 1996, and was approved by July 1, 1997, the State need not
comply with the inconsistent provisions of the five-year limit until
the waiver expires.
(1) The five-year limit would be inconsistent with the State's
waiver:
(i) If the State has an approved waiver that provides for
terminating cash assistance to individuals or families because of the
receipt of assistance for a period of time, specified by the approved
waiver; and
(ii) The State would have to change its waiver policy in order to
comply with the five-year limit.
(2)(i) Generally, under an approved waiver, a State will count,
toward the five-year limit, all months for which the adult subject to a
State waiver time limit receives assistance with Federal TANF
[[Page 62196]]
funds, just as it would if it did not have an approved waiver.
(ii) The State need not count, toward the five-year limit, any
months for which an adult receives assistance with Federal TANF funds
while the adult is exempt from the State's time limit under the terms
of the State's approved waiver.
(3) The State may continue to provide assistance with Federal TANF
funds for more than 60 cumulative months, without a numerical limit, to
families provided extensions to the time limit, under the provisions of
the terms and conditions of its approved waiver, as long as the State's
waiver authority has not expired.
(4) The five-year limit would also be inconsistent with a State's
waiver to the extent that the State needs to maintain prior law
policies for control group or experimental treatment cases in order to
continue an experimental research design for the purpose of completing
an impact evaluation of the waiver policies.
(5) The additional requirements at Sec. 272.8 of this chapter apply
to the use of continuing waivers with alternative time-limit
requirements in the calculation of the time limit penalty.
Sec. 274.2 What happens if a State does not comply with the five-year
limit?
If we determine that a State has not complied with the requirements
of Sec. 274.1, we will reduce the SFAG payable to the State for the
immediately succeeding fiscal year by five percent of the adjusted SFAG
unless the State demonstrates to our satisfaction that it had
reasonable cause or we approve a corrective compliance plan.
Sec. 274.3 How can a State avoid a penalty for failure to comply with
the five-year limit?
(a) We will not impose the penalty if the State demonstrates to our
satisfaction that it had reasonable cause for failing to meet the five-
year limit or it completes a corrective compliance plan pursuant to
Secs. 272.5 and 272.6 of this chapter.
(b)(1) In addition, we will determine a State has reasonable cause
if it demonstrates that it exceeded the 20 percent limitation on
exceptions to the time limit because of good cause waivers provided to
victims of domestic violence.
(2)(i) To demonstrate reasonable cause under paragraph (b)(1) of
this section, a State must provide evidence that, when individuals with
active good cause waivers and their families are excluded from the
calculation, the percentage of families receiving federally-funded
assistance for more than 60 months did not exceed 20 percent of the
total.
(ii) To qualify for exclusion, such families must have good cause
domestic violence waivers that:
(A) Reflect the State's assessment that an individual in the family
was, at the time the waiver was granted, temporarily unable to work
because of domestic violence;
(B) Were in effect after the family had received a hardship
exemption from the limit on receiving federally-funded assistance for
60 or more months; and
(C) Were granted appropriately, in accordance with the criteria
specified at Sec. 270.30 of this chapter.
(iii) If a State fails to meet the criteria specified for ``good
cause domestic violence waivers'' at Sec. 270.30 of this chapter or any
of the other conditions in paragraph (b)(2)(ii) of this section, the
Secretary will not grant reasonable cause under paragraph (b)(1) of
this section.
Sec. 274.10 Must States do computer matching of data records under
IEVS to verify recipient information?
(a) States must meet the requirements of IEVS pursuant to section
1137 of the Act and request the following information from the Internal
Revenue Service (IRS), the State Wage Information Collections Agencies
(SWICA), the Social Security Administration (SSA), and the Immigration
and Naturalization Service (INS):
(1) IRS unearned income;
(2) SWICA employer quarterly reports of income and unemployment
insurance benefit payments;
(3) IRS earned income maintained by SSA; and
(4) Immigration status information maintained by the INS. (States
may request a waiver of this match under the authority of 42 U.S.C.
1320-1327, note.)
(b) The requirements at Secs. 205.51 through 205.62 of this chapter
also apply to the TANF IEVS requirement.
Sec. 274.11 How much is the penalty for not participating in IEVS?
If we determine that the State has not complied with the
requirements of Sec. 274.10, we will reduce the SFAG payable for the
immediately succeeding fiscal year by two percent of the adjusted SFAG
unless the State demonstrates to our satisfaction that it had
reasonable cause or we approve a corrective compliance plan pursuant to
Secs. 272.5 and 272.6 of this chapter.
Sec. 274.20 What happens if a State sanctions a single parent of a
child under six who cannot get needed child care?
(a) If we determine that a State has not complied with the
requirements of Sec. 271.15 of this chapter, we will reduce the SFAG
payable to the State by no more than five percent for the immediately
succeeding fiscal year unless the State demonstrates to our
satisfaction that it had reasonable cause or we approve a corrective
action plan pursuant to Secs. 272.5 and 272.6 of this chapter.
(b) We will impose the maximum penalty if:
(1) The State does not have a statewide process in place that
enables families to demonstrate that they have been unable to obtain
child care; or
(2) There is a pattern of substantiated complaints from parents or
organizations verifying that a State has reduced or terminated
assistance in violation of this requirement.
(c) We will impose a reduced penalty if the State demonstrates that
the violations were isolated or that they affected a minimal number of
families.
Sec. 274.30 What procedures exist to ensure cooperation with the child
support enforcement requirements?
(a) The State (the IV-A agency) must refer all appropriate
individuals in the family of a child, for whom paternity has not been
established or for whom a child support order needs to be established,
modified or enforced, to the child support enforcement agency (the IV-D
agency). Those individuals must cooperate in establishing paternity and
in establishing, modifying, or enforcing a support order with respect
to the child.
(b) If the IV-D agency determines that an individual is not
cooperating, and the individual does not qualify for a good cause or
other exception established by the State in accordance with section
454(29) of the Act, then the IV-D agency must notify the IV-A agency
promptly.
(c) The IV-A agency must then take appropriate action by:
(1) Deducting from the assistance that would otherwise be provided
to the family of the individual an amount equal to not less than 25
percent of the amount of such assistance; or
(2) Denying the family any assistance under the program.
Sec. 274.31 What happens if a State does not comply with the IV-D
sanction requirement?
(a)(1) If we find, for a fiscal year, that the State IV-A agency
did not enforce the penalties against recipients required under
Sec. 274.30(c), we will reduce the SFAG payable for the next fiscal
year by one percent of the adjusted SFAG.
(2) Upon a finding for a second fiscal year, we will reduce the
SFAG by two percent of the adjusted SFAG for the following year.
[[Page 62197]]
(3) A third or subsequent finding will result in the maximum
penalty of five percent.
(b) We will not impose a penalty if the State demonstrates to our
satisfaction that it had reasonable cause or we approve a corrective
compliance plan pursuant to Secs. 272.5 and 272.6 of this chapter.
Sec. 274.40 What happens if a State does not repay a Federal loan?
(a) If a State fails to repay the amount of principal and interest
due at any point under a loan agreement:
(1) The entire outstanding loan balance, plus all accumulated
interest, becomes due and payable immediately; and
(2) We will reduce the SFAG payable for the immediately succeeding
fiscal year quarter by the outstanding loan amount plus interest.
(b) Neither the reasonable cause provisions at Sec. 272.5 of this
chapter nor the corrective compliance plan provisions at Sec. 272.6 of
this chapter apply when a State fails to repay a Federal loan.
Sec. 274.50 What happens if, in a fiscal year, a State does not
expend, with its own funds, an amount equal to the reduction to the
adjusted SFAG resulting from a penalty?
(a) We will assess a penalty of no more than two percent of the
adjusted SFAG plus the amount equal to the difference between the
amount the State was required to expend and the amount it actually
expended in the fiscal year.
(1) We will take the full two percent of the adjusted SFAG plus the
amount the State was required to expend if the State made no additional
expenditures to compensate for reductions to its adjusted SFAG
resulting from penalties.
(2) We will reduce the percentage portion of the penalty if the
State has expended some of the amount required. In such case, we will
calculate the applicable percent by multiplying the percentage of the
required expenditures actually made in the fiscal year by two percent.
(b) The reasonable cause and corrective compliance plan provisions
at Secs. 272.4, 272.5, and 272.6 of this chapter do not apply to this
penalty.
(c) State expenditures that are used to replace reductions to the
SFAG as the result of TANF penalties must be used for expenditures made
under the State TANF program, not under ``separate State programs.''
Subpart B--What are the Funding Requirements for the Contingency
Fund?
Sec. 274.70 What funding restrictions apply to the use of contingency
funds?
(a) Contingency funds are available to a State only if expenditures
by the State, excluding all Federal funds but the contingency funds,
exceed the State's historic State expenditures.
(b) The maximum amount payable to a State in a fiscal year may not
exceed an amount equal to \1/12\ times 20 percent of that State's SFAG
for that fiscal year, multiplied by the number of eligible months for
which the State has requested contingency funds.
Sec. 274.71 How will we determine 100 percent of historic State
expenditures, the MOE level, for the annual reconciliation?
(a)(1) The State historic State expenditures, the MOE level,
include the State share of expenditures for AFDC benefit payments,
administration, FAMIS, EA, and the JOBS programs for FY 1994.
(2) We will use the same data sources and date, i.e., April 28,
1995, that we used to determine the TANF MOE levels for FY 1994. We
will exclude the State share of expenditures from the former IV-A child
care programs (AFDC/JOBS, Transitional and At-Risk child care) in the
calculation.
(b) We will reduce a State's MOE level for the Contingency Fund by
the same percentage that we reduce the TANF MOE level for any fiscal
year in which the State's SFAG annual allocation is reduced to provide
funding to Tribal grantees operating a Tribal TANF program.
Sec. 274.72 For the annual reconciliation requirement, what
restrictions apply in determining qualifying State expenditures?
Qualifying State expenditures are expenditures of State funds made
in the State TANF program, excluding child care expenditures.
Sec. 274.73 What other requirements apply to qualifying State
expenditures?
The regulations at Secs. 273.2 (except for Sec. 273.2(a)(2)),
273.4, and 273.6 of this chapter apply.
Sec. 274.74 When must a State remit contingency funds under the annual
reconciliation?
(a) A State may retain its contingency funds only if it matches
them with the expenditure of State funds above a specified MOE level.
If the amount of contingency funds paid to a State for a fiscal year
exceeds the amount equal to qualifying State expenditures (as defined
at Sec. 274.72), plus contingency funds, minus the MOE level,
multiplied by the Federal Medical Assistance Percentage (FMAP), then
multiplied by \1/12\ times the number of months the State received
contingency funds, then such excess amount must be remitted.
(b) If a State does not meet its MOE requirement, all contingency
funds paid to a State for a fiscal year must be remitted.
(c) If required to remit funds, the State must remit all (or a
portion) of the funds paid to it for a fiscal year within one year
after it has failed to meet either the Food Stamp trigger or the
Unemployment trigger for three consecutive months.
Sec. 274.75 What action will we take if a State fails to remit funds
as required?
(a) If a State fails to remit funds as required, we will reduce the
SFAG payable for the next fiscal year by the amount of funds not
remitted.
(b) A State may appeal this decision as provided in Sec. 272.7 of
this chapter.
(c) The reasonable cause exceptions and corrective compliance
regulations at Secs. 272.5 and 272.6 of this chapter do not apply to
this penalty.
Sec. 274.76 How will we determine if a State has met its Contingency
Fund reconciliation MOE level requirement and made expenditures that
exceed its MOE requirement?
(a) States receiving contingency funds for a fiscal year must
complete the quarterly TANF Financial Report (or, as applicable, the
Territorial Financial Report). As part of the fourth quarter's report,
a State must complete its annual reconciliation.
(b) The TANF Financial Report and State reporting on expenditures
are subject to our review.
Sec. 274.77 Are contingency funds subject to the same restrictions
that apply to other Federal TANF funds?
As Federal TANF funds, contingency funds are subject to the
restrictions and prohibitions in effect for Federal TANF funds. The
provisions of Sec. 273.11 of this chapter apply.
Subpart C--What Rules Pertain Specifically to the Spending Levels
of the Territories?
Sec. 274.80 If a Territory receives Matching Grant funds, what funds
must it expend?
(a) If a Territory receives Matching Grant funds under section
1108(b) of the Act, it must:
(1) Contribute 25 percent of expenditures funded under the Matching
Grant for title IV-A or title IV-E expenditures;
(2) Expend up to 100 percent of the amount of historic expenditures
for FY
[[Page 62198]]
1995 for the AFDC program (including administrative costs and FAMIS),
the EA program, and the JOBS program; and
(3) Expend up to 100 percent of the amount of the Family Assistance
Grant annual allocation using Federal TANF, title IV-E funds and/or
Territory-only funds.
(b) Territories may not use the same Territorial expenditures to
satisfy the requirements of paragraph (a) of this section.
Sec. 274.81 What expenditures qualify for Territories to meet the
Matching Grant MOE requirement?
To meet the Matching Grant MOE requirements, Territories may count:
(a) Territorial expenditures made pursuant to Secs. 273.2, 273.3,
273.4, and 273.6 of this chapter that are commingled with Federal TANF
funds or made under a segregated TANF program; and
(b) Territorial expenditures made pursuant to the regulations at 45
CFR parts 1355 and 1356 for the Foster Care and Adoption Assistance
programs and section 477 of the Act for the Independent Living program.
Sec. 274.82 What expenditures qualify for meeting the Matching Grant
FAG amount requirement?
To meet the Matching Grant FAG amount requirement, Territories may
count:
(a) Expenditures made with Federal TANF funds pursuant to
Sec. 273.11 of this chapter;
(b) Expenditures made pursuant to Secs. 273.2, 273.3, 273.4, and
273.6 of this chapter that are commingled with Federal TANF funds or
made under a segregated TANF program;
(c) Amounts transferred from TANF funds pursuant to section 404(d)
of the Act; and
(d) The Federal and Territorial shares of expenditures made
pursuant to the regulations at 45 CFR parts 1355 and 1356 for the
Foster Care and Adoption Assistance programs and section 477 of the Act
for the Independent Living program.
Sec. 274.83 How will we know if a Territory failed to meet the
Matching Grant funding requirements at Sec. 274.80?
We will require the Territories to report the expenditures required
by Sec. 274.80 (a)(2) and (a)(3) on the quarterly Territorial Financial
Report.
Sec. 274.84 What will we do if a Territory fails to meet the Matching
Grant funding requirements at Sec. 274.80?
If a Territory does not meet the requirements at either or both of
Sec. 274.80 (a)(2) and (a)(3), we will disallow all Matching Grant
funds received for the fiscal year.
Sec. 274.85 What rights of appeal are available to the Territories?
The Territories may appeal our decisions to the Departmental
Appeals Board in accordance with our regulations at part 16 of this
title if we decide to take disallowances under 1108(b).
PART 275--DATA COLLECTION AND REPORTING REQUIREMENTS
Sec.
275.1 What does this part cover?
275.2 What definitions apply to this part?
275.3 What reports must the State file on a quarterly basis?
275.4 When are quarterly reports due?
275.5 May States use sampling?
275.6 Must States file reports electronically?
275.7 How will we determine if the State is meeting the quarterly
reporting requirements?
275.8 Under what circumstances will a State be subject to a
reporting penalty for failure to submit quarterly reports?
275.9 What information must the State file annually?
275.10 When are annual reports due?
Authority: 42 U.S.C. 603, 605, 607, 609, 611, and 613.
Sec. 275.1 What does this part cover?
(a) This part explains how we will collect the information required
by section 411(a) of the Act (data collection and reporting); the
information required to implement section 407 of the Act (work
participation requirements), as authorized by section
411(a)(1)(A)(xii); the information required to implement section 409
(penalties), section 403 (grants to States), section 405
(administrative provisions), section 411(b) (report to Congress), and
section 413 (research and annual rankings); and the data necessary to
carry out our financial management and oversight responsibilities.
(b) This part describes the information in the quarterly and annual
reports that each State must file, as follows:
(1) The case record information (disaggregated and aggregated) on
individuals and families in the quarterly TANF Data Report;
(2) The expenditure data in the quarterly TANF Financial Report
(or, as applicable, the Territorial Financial Report);
(3) The annual information related to definitions and expenditures
that must be filed with the fourth quarter Financial Report; and
(4) The annual information on State programs and performance for
the report to Congress.
(c) If a State claims MOE expenditures under a separate State
program, this part specifies the circumstances under which the State
must collect and report case-record information on individuals and
families served by the separate State program.
(d) This part describes when reports are due, how we will determine
if reporting requirements have been met, and how we will apply the
statutory penalty for failure to file a timely report. It also
specifies electronic filing and sampling requirements.\1\
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\1\ The Appendices contain the specific data elements in the
quarterly Data Report and the quarterly Financial Report, as well as
the instructions for filing these reports. The Appendices also
contain a summary of the applicable sampling specifications and
three reference tables that summarize the statutory basis and
rationale for collecting the data elements in the Data Report.
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Sec. 275.2 What definitions apply to this part?
(a) Except as provided in paragraph (b) of this section, the
general TANF definitions at Sec. 270.30 of this chapter apply to this
part.
(b) For data collection and reporting purposes only, TANF family
means:
(1) All individuals receiving assistance as part of a family under
the State's TANF or separate State program; and
(2) The following additional persons living in the household, if
not included under paragraph (b)(1) of this section:
(i) Parent(s) or caretaker relative(s) of any minor child receiving
assistance;
(ii) Minor siblings of any child receiving assistance; and
(iii) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
Sec. 275.3 What reports must the State file on a quarterly basis?
(a) Quarterly reports. Each State must collect on a monthly basis,
and file on a quarterly basis, the data specified in the TANF Data
Report and the TANF Financial Report (or, as applicable, the
Territorial Financial Report). Under the circumstances described in
paragraph (d)(1) of this section, the State must collect and file the
data specified in the TANF-MOE Data Report.
(b) TANF Data Report. The TANF Data Report consists of three
sections. Two sections contain disaggregated data elements and one
section contains aggregated data elements.
(1) TANF Data Report: Disaggregated Data--Sections one and two.
Each State must file disaggregated information on families receiving
TANF assistance (section one) and families no longer receiving TANF
assistance (section
[[Page 62199]]
two).\2\ These two sections specify identifying and demographic data
such as the individual's Social Security Number; and information such
as the type and amount of assistance received, educational level,
employment status, work participation activities, citizenship status,
and earned and unearned income. These reports also specify items
pertaining to child care and child support. The data requested cover
adults (including non-custodial parents who are participating in work
activities) and children.
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\2\ See Appendices A and B for the specific data elements we are
proposing.
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(2) TANF Data Report: Aggregated Data--Section three. Each State
must file aggregated information on families receiving, applying for,
and no longer receiving TANF assistance.\3\ This section of the Report
asks for aggregate figures in the following areas: the total number of
applications and their disposition; the total number of recipient
families, adult recipients, and child recipients; the total number of
births, out-of-wedlock births, and minor child heads-of-households; the
total number of non-custodial parents participating in work activities;
and the total amount of TANF assistance provided.
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\3\ See Appendix C for the specific data elements we are
proposing.
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(c) The TANF Financial Report (or Territorial Financial Report).
(1) Each State must file quarterly expenditure data on the State's use
of Federal TANF funds, State TANF expenditures, and State expenditures
of MOE funds in separate State programs.\4\
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\4\ See Appendix D for the proposed content of the TANF
Financial Report.
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(2) In addition, each State must file annually with the fourth
quarter TANF Financial Report (or, as applicable, the Territorial
Financial Report) definitions and descriptive information on the TANF
program and descriptive and expenditure-related information on the
State's separate MOE program as specified in Sec. 275.9.
(3) If a State makes a substantive change in its definition of work
activities, its description of transitional services provided to
families no longer receiving assistance due to employment under the
TANF program, or how it reduces the amount of assistance when an
individual refuses to engage in work, as specified in Sec. 275.9, it
must file a copy of the changed definition or description with the next
quarterly report. The State must also indicate the effective date of
the change.
(4) If a State is expending TANF funds received in prior fiscal
years, it must file a separate quarterly TANF Financial Report (or, as
applicable, Territorial Financial Report) for each fiscal year that
provides information on the expenditures of that year's TANF funds.
(5) Territories must report their expenditure and other fiscal data
on the Territorial Financial Report, as provided at Sec. 274.85 of this
chapter, in lieu of the TANF Financial Report.
(d) TANF--MOE Data Report. (1) If a State claims MOE expenditures
under a separate State program, it must collect and file similar
disaggregated and aggregated information on families receiving and
families no longer receiving assistance under the separate State
program if it wishes to:
(i) Receive a high performance bonus;
(ii) Qualify for work participation caseload reduction credit; or
(iii) Be considered for a reduction in the penalty for failing to
meet the work participation requirements.
(2) The TANF-MOE Data Report consists of three sections. Two
sections contain disaggregated data elements and one contains
aggregated data elements.\5\ Except for data elements that do not apply
to individuals and families under the MOE program, such as time limits,
the data elements in the TANF-MOE Data Report are the same as those in
the TANF Data Report as described in paragraph (b) of this section.
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\5\ See Appendices E through G for the proposed reporting
requirements.
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Sec. 275.4 When are quarterly reports due?
(a) Each State must file the TANF Data Report and the TANF
Financial Report (or, as applicable, the Territorial Financial Report),
including the addendum to the fourth quarter Financial Report, within
45 days following the end of the quarter.
(b) The State may collect and submit its TANF-MOE Data Report
quarterly at the same time as it submits its TANF Data Report, or the
State may submit this report at the time it seeks to be considered for
a high performance bonus, a caseload reduction credit, or a reduction
in the work participation rate penalty as long as the data submitted
are for the full period for which these decisions will be made.
(c) The effective date for filing these reports depends on when the
State implemented the TANF program as follows:
(1) If a State implemented the TANF program by January 1, 1997, the
first reports cover the July-September 1997 quarter and are due
November 14, 1997.
(2) If a State implemented its TANF program between January 1,
1997, and July 1, 1997, the first reports cover the period that begins
six months after the date of implementation and are due 45 days
following the end of the applicable quarter.
Sec. 275.5 May States use sampling?
(a) Each State may report the disaggregated data in the TANF Data
Report and in the TANF-MOE Data Report on all recipient families or on
a sample of families selected through the use of a scientifically
acceptable sampling method that we have approved. States may not use a
sample to generate the aggregated data.\6\
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\6\ See Appendix H for a summary of the applicable sampling
specifications.
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(b) ``Scientifically acceptable sampling method'' means a
probability sampling method in which every sampling unit in the
population has a known, non-zero chance to be included in the sample
and our sample size requirements are met.
Sec. 275.6 Must States file reports electronically?
Each State must file all quarterly reports (i.e., the TANF Data
Report, the TANF Financial Report (or, as applicable, the Territorial
Financial Report), and the TANF-MOE Data Report) electronically, based
on format specifications that we will provide.
Sec. 275.7 How will we determine if the State is meeting the quarterly
reporting requirements?
(a) Each State's quarterly reports (the TANF Data Report, the TANF
Financial Report (or Territorial Financial Report), and the TANF-MOE
Data Report) must be complete and accurate and filed by the due date.
(b) For a disaggregated data report, ``a complete and accurate
report'' means that:
(1) The reported data accurately reflect information available to
the State in its case records, financial records, and automated data
systems;
(2) The data are free from computational errors and are internally
consistent (e.g., items that should add to totals do so);
(3) The data are reported for all elements (i.e., no data are
missing);
(4)(i) The data are provided for all families; or
(ii) If the State opts to use sampling, the data are provided for
all families selected in a sample that meets the minimum sample size
requirements (except for families listed in error); and
(5) Where estimates are necessary (e.g., some types of assistance
may require cost estimates), the State uses reasonable methods to
develop these estimates.
[[Page 62200]]
(c) For an aggregated data report, ``a complete and accurate
report'' means that:
(1) The reported data accurately reflect information available to
the State in its case records, financial records, and automated data
systems;
(2) The data are free from computational errors and are internally
consistent (e.g., items that should add to totals do so);
(3) The data are reported for all applicable elements; and
(4) Monthly totals are unduplicated counts for all families (e.g.,
the number of families and the number of out-of-wedlock births are
unduplicated counts).
(d) For the TANF Financial Report (or, as applicable, the
Territorial Financial Report), ``a complete and accurate report'' means
that:
(1) The reported data accurately reflect information available to
the State in its case records, financial records, and automated data
systems;
(2) The data are free from computational errors and are internally
consistent (e.g., items that should add to totals do so);
(3) The data are reported for all applicable elements; and
(4) All expenditures have been made in accordance with
Sec. 92.20(a) of this title.
(e) We will review the data filed in the quarterly reports to
determine if they meet these standards. In addition, we will use audits
and reviews to verify the accuracy of the data filed by the States.
(f) States must maintain records to adequately support any report
in accordance with Sec. 92.42 of this title.
Sec. 275.8 Under what circumstances will a State be subject to a
reporting penalty for failure to submit quarterly reports?
(a) We will impose a reporting penalty under Sec. 272.1(a)(3) of
this chapter if:
(1) A State fails to file the TANF Data Report and the TANF
Financial Report (or, as applicable, the Territorial Financial Report)
on a timely basis;
(2) The disaggregated data in the TANF Data Report is not accurate
or does not include all the data required by section 411(a) of the Act
(other than section 411(a)(1)(A)(xii) of the Act) or those nine
additional elements necessary to carry out the data collection system
requirements;
(3) The aggregated data in the TANF Data Report does not include
complete and accurate information on the data elements required by
section 411(a) of the Act and the data elements necessary to carry out
the data collection system requirements and verify and validate
disaggregated data;
(4) The TANF Financial Report (or, as applicable, the Territorial
Financial Report) does not contain complete and accurate information on
total expenditures and expenditures on administrative costs and
transitional services; or
(5) The addendum to the fourth quarter TANF Financial Report (or,
as applicable, the Territorial Financial Report) does not contain the
information required under Secs. 271.22, 271.24, and 274.1 of this
chapter on families excluded from the calculations in those sections
because of the State's definition of families receiving assistance; the
definition of work activities; and the description of transitional
services provided by a State to families no longer receiving assistance
due to employment.
(b) We will not apply the reporting penalty to the TANF-MOE Data
Report, the annual program and performance report specified in
Sec. 275.9, or other information on individuals and families required
by section 411(b) of the Act.
(c) If we determine that a State meets one or more of the
conditions set forth in paragraph (a) of this section, we will notify
the State that we intend to reduce the SFAG payable for the immediately
succeeding fiscal year.
(d) We will not impose the penalty at Sec. 272.1(a)(3) of this
chapter if the State files the complete and accurate reports before the
end of the fiscal quarter that immediately succeeds the fiscal quarter
for which the reports were required.
(e) If the State does not file all reports as required by the end
of the immediately succeeding fiscal quarter, the penalty provisions of
Secs. 272.4 through 272.6 of this chapter will apply.
(f) For each quarter for which the State fails to meet a reporting
requirement, we will reduce the SFAG payable by an amount equal to four
percent of the adjusted SFAG.
Sec. 275.9 What information must the State file annually?
(a) Each State must file annually, as an addendum to the fourth
quarter TANF Financial Report (or, as applicable, the Territorial
Financial Report), the following definitions and information with
respect to the TANF program for that year:
(1) The number of families excluded from the calculations at
Secs. 271.22, 271.24, and 274.1 of this chapter because of the State's
definition of families receiving assistance, together with the basis
for such exclusions;
(2) The State's definition of each work activity;
(3) A description of the transitional services provided to families
no longer receiving assistance due to employment; and
(4) A description of how a State will reduce the amount of
assistance payable to a family when an individual refuses to engage in
work without good cause.
(b) Each State must also file with the fourth quarter TANF
Financial Report (or, as applicable, the Territorial Financial Report)
the information on separate State MOE programs for that year specified
at Sec. 273.7 of this chapter.\7\
---------------------------------------------------------------------------
\7\ See Section 3 of Appendix D for the specific information we
are proposing to collect.
---------------------------------------------------------------------------
(c) Each State must file an annual program and performance report
that provides information about the characteristics and achievements of
each State program; the design and operation of the program; the
services, benefits, assistance provided; the eligibility criteria; and
the extent to which the State has met its goals and objectives for the
program. Each State may also include a description of any unique
features, accomplishments, innovations, or additional information
appropriate for the Department's annual report to Congress.
Sec. 275.10 When are annual reports due?
(a) The annual report of State definitions and expenditures
required by Sec. 275.9 (a) and (b) is due at the same time as the
fourth quarter TANF Financial Report (or, as applicable, the
Territorial Financial Report).
(b) The annual program and performance report to meet the
requirements of section 411(b) of the Act (report to Congress) is due
90 days after the end of the fiscal year. The first report, covering FY
1997, is due December 30, 1997.
Note: The following appendixes will not appear in the Code of
Federal Regulations.
Appendices
Appendix A--Proposed TANF Data Report--Section One (Disaggregated
Data Collection for Families Receiving Assistance under the TANF
Program)
Appendix B--Proposed TANF Data Report--Section Two (Disaggregated
Data Collection for Families No Longer Receiving Assistance under
the TANF Program)
Appendix C--Proposed TANF Data Report--Section Three (Aggregated
Data Collection for Families Applying for, Receiving, and No Longer
Receiving Assistance under the TANF Program)
Appendix D--Proposed TANF Financial Report and Fourth Quarter
Addendum
Appendix E--Proposed TANF MOE Data Report--Section One
(Disaggregated Data Collection for Families Receiving Assistance
under the Separate State Programs)
[[Page 62201]]
Appendix F--Proposed TANF MOE Data Report--Section Two
(Disaggregated Data Collection for Families No Longer Receiving
Assistance under the Separate State Programs)
Appendix G--Proposed TANF MOE Data Report--Section Three (Aggregated
Data Collection for Families Receiving Assistance under the Separate
State Programs)
Appendix H--Sampling Specifications
Appendix I--Statutory Reference Table for Appendix A
Appendix J--Statutory Reference Table for Appendix B
Appendix K--Statutory Reference Table for Appendix C
Appendix A--TANF Data Report--Section One--Disaggregated Data
Collection for Families Receiving Assistance Under the TANF Program
Instructions and Definitions
General Instruction: The State agency or Tribal grantee should
collect and report data for each data element, unless explicitly
instructed to leave the field blank.
1. State FIPS Code: Enter your two-digit State code from the
following listing. These codes are the standard codes used by the
National Institute of Standards and Technology. Tribal grantees
should leave this field blank.
------------------------------------------------------------------------
State Code
------------------------------------------------------------------------
Alabama.................................................... 01
Alaska..................................................... 02
American Samoa............................................. 60
Arizona.................................................... 04
Arkansas................................................... 05
California................................................. 06
Colorado................................................... 08
Connecticut................................................ 09
Delaware................................................... 10
District of Columbia....................................... 11
Florida.................................................... 12
Georgia.................................................... 13
Guam....................................................... 66
Hawaii..................................................... 15
Idaho...................................................... 16
Illinois................................................... 17
Indiana.................................................... 18
Iowa....................................................... 19
Kansas..................................................... 20
Kentucky................................................... 21
Louisiana.................................................. 22
Maine...................................................... 23
Maryland................................................... 24
Massachusetts.............................................. 25
Michigan................................................... 26
Minnesota.................................................. 27
Mississippi................................................ 28
Missouri................................................... 29
Montana.................................................... 30
Nebraska................................................... 31
Nevada..................................................... 32
New Hampshire.............................................. 33
New Jersey................................................. 34
New Mexico................................................. 35
New York................................................... 36
North Carolina............................................. 37
North Dakota............................................... 38
Ohio....................................................... 39
Oklahoma................................................... 40
Oregon..................................................... 41
Pennsylvania............................................... 42
Puerto Rico................................................ 72
Rhode Island............................................... 44
South Carolina............................................. 45
South Dakota............................................... 46
Tennessee.................................................. 47
Texas...................................................... 48
Utah....................................................... 49
Vermont.................................................... 50
Virgin Islands............................................. 78
Virginia................................................... 51
Washington................................................. 53
West Virginia.............................................. 54
Wisconsin.................................................. 55
Wyoming.................................................... 56
------------------------------------------------------------------------
2. County FIPS Code: Enter the three-digit code established by
the National Institute of Standards and Technology for
classification of counties and county equivalents. Codes were
devised by listing counties alphabetically and assigning
sequentially odd codes is available in Appendix F of the TANF
Sampling and Statistical Methods Manual. Tribal grantees should
leave this field blank.
3. Tribal Code: For Tribal grantees, enter the three-digit
Tribal code that represents your Tribe (See Appendix E of the TANF
Sampling and Statistical Methods Manual for a complete listing of
Tribal Codes). State agencies should leave this field blank.
4. Reporting Month: Enter the four-digit year and two-digit
month code that identifies the year and month for which the data are
being reported.
5. Stratum:
Guidance: All TANF families selected in the sample from the same
stratum must be assigned the same stratum code. Valid stratum codes
may range from ``00'' to ``99.'' States and Tribes with stratified
samples should provide the ACF Regional Office with a listing of the
numeric codes utilized to identify any stratification. If a State or
Tribe opts to provide data for its entire caseload, enter the same
stratum code (any two-digit number) for each TANF family.
Instruction: Enter the two-digit stratum code.
Family-Level Data
Definition: For reporting purposes, the TANF family means (a)
all individuals receiving assistance as part of a family under the
State's TANF Program; and (b) the following additional persons
living in the household, if not included under (a) above:
(1) Parent(s) or caretaker relative(s) of any minor child
receiving assistance;
(2) Minor siblings (including unborn children) of any child
receiving assistance; and
(3) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
6. Case Number--TANF:
Guidance: If the case number is less than the allowable eleven
characters, a State may use lead zeros 1to fill in the number.
Instruction: Enter the number assigned by the State agency or
Tribal grantee to uniquely identify the case after formal approval
to receive assistance.
7. ZIP Code: Enter the five-digit ZIP code for the TANF family's
place of residence for the reporting month.
8. Funding Stream: For States that bifurcate their caseloads,
enter the appropriate code for the funding stream used to provide
assistance to this TANF family. If the State (Tribe) does not
bifurcate its caseload, enter code ``1.''
1=Funded, in whole or in part, with Federal TANF block grant funds
2=Funded entirely from State-only funds (segregated State TANF
program) which are subject to TANF rules.
9. Disposition:
Guidance: A family that did not receive any assistance for the
reporting month but was listed on the monthly sample frame for the
reporting month is ``listed in error.'' States are to complete data
collection for all sampled cases that are not listed in error.
Instruction: Enter one of the following codes for each TANF
sampled case.
1=Data collection completed
2=Not subject to data collection/listed in error
10. New Applicant:
Guidance: A newly-approved applicant means the current reporting
month is the first month for which the TANF family has received TANF
assistance (and thus has had a chance to be selected into the TANF
sample). This may be either the first month that the TANF family has
ever received assistance or the first month of a new spell on
assistance. A TANF family that is reinstated from a suspension is
not a newly, approved applicant.
Instruction: Enter the one-digit code that indicates whether or
not the TANF family is a newly-approved applicant.
1=Yes, a newly-approved application
2=No
11. Number of Family Members: Enter two digits that represent
the number of members in the family receiving assistance under the
State's (Tribe's) TANF Program during the reporting month.
12. Type of Family for Work Participation:
Guidance: This data element will be used to identify the type of
family (i.e., the number of parents or care-taker relatives in the
family receiving assistance) in order to calculate the all family
and the two-parent family work participation rates. A family with a
minor child head-of-household should be coded as either a single-
parent family or two-parent family, whichever is appropriate. A
family that includes a disabled parent will not be considered a two-
parent family for purposes of the work participation rate. A
noncustodial parent, who lives in the State, may participate in work
activities funded under the State TANF Program and receive other
assistance. In order for the noncustodial parent to participate in
work activities and receive assistance, (s)he must be a member of
the eligible family receiving assistance and be reported as part of
the TANF family. However, it is up to the State to consider whether
a family with a non-custodial parent is a one-parent or two-parent
family for the purposes of calculating the work participation rate.
[[Page 62202]]
Instruction: Enter the one-digit code that represents the type
of family for purposes of calculating the work participation rates.
1=Single-Parent Family for participation rate purposes
2=Two-Parent Family for participation rate purposes
3=No Parent Family for participation rate purposes (does not include
parents, care-taker relatives, or minor child heads-of-household
13. Receives Subsidized Housing:
Guidance: Subsidized housing refers to housing for which money
was paid by the Federal, State, or Local government or through a
private social service agency to the family or to the owner of the
housing to assist the family in paying rent. Two families sharing
living expenses does not constitute subsidized housing.
Instruction: Enter the one-digit code that indicates whether or
not the TANF family received subsidized housing for the reporting
month.
1=Public housing
2=HUD rent subsidy
3=Other rent subsidy
4=No housing subsidy
14. Receives Medical Assistance: Enter ``1'' if, for the
reporting month, any TANF family member is eligible to receive
(i.e., a certified recipient of) medical assistance under the State
plan approved under Title XIX or ``2'' if no TANF family member is
eligible to receive medical assistance under the State plan approved
under Title XIX.
1=Yes, receives medical assistance
2=No
15. Receives Food Stamps: If the TANF family received Food
Stamps for the reporting month, enter the one-digit code indicating
the type of Food Stamp assistance. Otherwise, enter ``4.''
1=Yes, Food Stamp coupon allotment
2=Yes, cash
3=Yes, wage subsidy
4=No
16. Amount of Food Stamp Assistance:
Guidance: For situations in which the Food Stamp household
differs from the TANF family, code this element in a manner that
most accurately reflects the resources available to the TANF family.
Instruction: Enter the TANF family's authorized dollar amount of
Food Stamp assistance for the reporting month.
17. Receives Subsidized Child Care:
Guidance: For the purpose of coding this data element, ubsidized
Child Care funded under the Child Care and Development Fund with
funds that were transferred from the State TANF Program should be
coded as ``2.''
Instruction: If the TANF family receives subsidized child care
for the reporting month, enter code ``1'', ``2'', ``3'', or ``4'',
whichever is appropriate. Otherwise, enter code ``5.''
1=Yes, funded under the State (Tribal) TANF Program
2=Yes, funded under the Child Care and Development Fund
3=Yes, funded under another Federal program (e.g., SSBG)
4=Yes, funded under a State, Tribal, or local program
5=No
18. Amount of Subsidized Child Care:
Guidance: Subsidized child care means a grant by the Federal,
State or Local government to a parent (or care-taker relative) to
support, in part or whole, the cost of child care services provided
by an eligible provider to an eligible child. The grant may be paid
directly to the parent (or care-taker relative) or to a child care
provider on behalf of the parent (or care-taker relative).
Instruction: Enter the dollar amount of subsidized child care
that the TANF family has received for services in the reporting
month. If the TANF family did not receive any subsidized child care
for the reporting month, enter ``00.''
19. Amount of Child Care Disregard: Enter the total dollar
amount of the TANF family's actual disregard allowed for child care
expenses during the reporting month. If there is no child care
disregard, enter ``0'' as the amount.
20. Amount of Child Support: Enter the total dollar value of
child support received on behalf of the TANF family in the reporting
month, which includes arrearages, recoupments, and pass-through
amounts whether paid to the State or the family.
21. Amount of the Family's Cash Resources: Enter the total
dollar amount of the TANF family's cash resources for the reporting
month.
Amount of Assistance Received and the Number of Months that the
Family Has Received Each Type of Assistance under the State (Tribal)
TANF Program:
Guidance: Assistance means every form of support provided to
TANF families under the State (Tribal) TANF Program (including child
care, work subsidies, and allowances to meet living expenses),
except for the following:
(1) services that have no direct monetary value to an individual
family and that do not involve implicit or explicit income support,
such as counseling, case management, peer support and employment
services that do not involve subsidies or other forms of income
support; and
(2) one-time, short-term assistance (i.e., assistance paid
within a 30-day period, no more than once in any twelve-month
period, to meet needs that do not extend beyond a 90-day period,
such as automobile repair to retain employment and avoid welfare
receipt and appliance repair to maintain living arrangements).
Instruction: For each type of assistance provided under the
State's (Tribal) TANF Program, enter the dollar amount of assistance
that the TANF family received or that was paid on behalf of the TANF
family for the reporting month and the number of months that the
TANF family has received assistance under the State's (Tribe's) TANF
program. If, for a ``type of assistance'', no dollar amount of
assistance was provided during the reporting month, enter ``0'' as
the amount. If, for a ``type of assistance'', no assistance has been
received (since the State began its TANF Program) by the TANF
eligible family, enter ``0'' as the number of months of assistance.
22. Cash and Cash Equivalents:
A. Amount
B. Number of Months
23. Educational:
A. Amount
B. Number of Months
24. Employment Services:
A. Amount
B. Number of Months
25. Work Subsidies:
A. Amount
B. Number of Months
26. TANF Child Care:
Guidance: Include only the child care funded directly by the
State (Tribal) TANF Program. Do not include child care funded under
the Child Care and Development Fund, even though some of the funds
were transferred to the CCDF from the TANF program.
A. Amount
B. Number of Months
27. Transportation:
A. Amount
B. Number of Months
28. Other Supportive Services and Special Needs, including
Assistance with Meeting Home Heating and Air Conditioning Costs:
A. Amount
B. Number of Months
29. Transitional Services:
A. Amount
B. Number of Months
30. Contributions to Individual Development Accounts:
A. Amount
B. Number of Months
31. Other:
A. Amount
B. Number of Months
Reason for and Amount of Reduction in Assistance. For each
reason for which the TANF family received a reduction in assistance
for the reporting month, enter the dollar amount of the reduction in
assistance. Otherwise, enter ``0.''
32. Work Requirements Sanction
33. Family Sanction for an Adult with No High School Diploma or
Equivalent
34. Sanction for Teen Parent not Attending School
35. Non-Cooperation with Child Support
36. Failure to Comply with an Individual Responsibility Plan
37. Other Sanction
38. Recoupment of Prior Overpayment
39. Family Cap
40. Reduction Based on Family Moving into State From Another
State
41. Reduction Based on Length of Receipt of Assistance
42. Other, Non-sanction
43. Waiver Evaluation Research Group:
Guidance: In connection with waivers, approved to allow States
to implement Welfare Reform Demonstrations, a State assigned a
portion of its cases to a research group consisting of a control
group (subject to the provisions of the regular, statutory AFDC
program as defined by prior law) and an experimental group (subject
to the provisions of the regular, statutory AFDC
[[Page 62203]]
program as defined by prior law as modified by waivers). A state may
choose, for the purpose of completing impact analyses, to continue a
research group and thus maintain applicable control and experimental
group treatment policies as they were implemented under their
welfare reform demonstration (including prior law policies not
modified by waivers), even if such policies are inconsistent with
TANF. However, cases assigned to a non-experimental treatment group
(i.e., not part of the research group) may not apply prior law
policies inconsistent with TANF unless such policies are
specifically linked to approved waivers. Where a state continues
waivers, but does not continue a research group for impact
evaluation purposes, all cases in the demonstration site will be
treated as non-experimental treatment group cases regardless of
their original assignment as control or experimental cases.
Instruction: Enter the one-digit code that indicates the
family's waiver evaluation case status.
Blank=Not applicable (no waivers apply to this case)
1=Control group (for impact analysis purposes)
2=Experimental group
3=Non-experimental treatment group
44. Is the TANF Family Exempt from the Federal Time Limit
Provisions:
Guidance: Under TANF rules, an eligible family that does not
include an adult (or minor child head-of-household) recipient, who
has received assistance for 60 countable months, may continue to
receive assistance. A countable month is a month of assistance for
which the adult (or minor child head-of-household) is not exempt
from the Federal time limit provisions. TANF rules provide for two
categories of exceptions. First, a family which does not include an
adult (or minor child head-of-household) who has received 60
countable months of assistance may be exempt from the accrual of
months of assistance (i.e., clock not ticking). Second, a family
with an adult (or minor child head-of-household), who has received
60 countable months of assistance may be exempt from termination of
assistance. Exemptions from termination of assistance include a
hardship exemption which allows up to 20% of the families to receive
assistance beyond the 60 month time limit. In lieu of the 20%
hardship exemptions, States may choose to employ extension policies
prescribed under approved waivers.
Instruction: If the TANF family has no exemption from the
Federal five-year time limit, enter code ``1.'' If the TANF family
does not include an adult (or minor child head-of-household) who has
received assistance for 60 countable months and is exempt from
accrual of months of assistance under the Federal five-year time
limit for the reporting month, enter ``2'', ``3'', or ``4'',
whichever is appropriate. If the TANF family includes an adult (or
minor child head-of-household) who has received assistance for 60
countable months and the family is exempt from termination of
assistance, enter code ``5'', ``6'', ``7'' or ``8'', whichever is
appropriate.
01=Family is not exempt from Federal time limit.
Family does not include an adult (or minor child head-of-
household) who has received assistance for 60 countable months
02=Yes, family is exempt from accrual of months under the Federal
five-year time limit for the reporting month because no adult or
minor child head-of-household in eligible family receiving
assistance.
03=Yes, family is exempt from accrual of months under the Federal
five-year time limit for the reporting month because assistance to
family is funded entirely from State-only funds.
04=Yes, family is exempt from accrual of months under the Federal
five-year time limit for the reporting month because the family is
living on an Indian country of at least 1,000 persons at least 50
percent of whose adults are unemployed.
05=Yes, family is exempt from accrual of months under the Federal
five-year time limit for the reporting month based on an approved
waiver policy.
Family includes an adult (or minor child head-of-household) who
has received assistance for 60 countable month
06=Yes, family is exempt from termination of assistance under the
Federal five-year time limit for the reporting month because
assistance to family is funded entirely from State-only funds.
07=Yes, family is exempt from termination of assistance under the
Federal five-year time limit for the reporting month due to a
temporary good cause domestic violence waiver (and an inability to
work).
08=Yes, family is exempt from termination of assistance under the
Federal five-year time limit for the reporting month due to a
hardship exemption for reason other than domestic violence.
09=Yes, family is exempt from termination of assistance under the
Federal five-year time limit for the reporting month because the
adult's (minor child head-of-household's) residence is on an Indian
country of at least 1,000 persons at least 50 percent of whose
adults are unemployed.
10=Yes, family (including adults) is exempt from termination of
assistance under the Federal five-year time limit for the reporting
month in accordance with extension policies prescribed under
approved waivers.
11=Yes, the children in the family are receiving assistance beyond
the 60 countable months and the family is exempt from termination of
assistance under the Federal five-year time limit for the reporting
month in accordance with extension policies prescribed under
approved waivers (i.e., adult-only time limit).
Person-Level Data
Person-level data has two sections: the adult and minor child
head-of-household characteristic section and the child
characteristics section. Section 419 of the Act defines adult and
minor child. An adult is an individual that is not a minor child. A
minor child is an individual who (a) has not attained 18 years of
age or (b) has not attained 19 years of age and is a full-time
student in a secondary school (or in the equivalent level of
vocational or technical training.)
Adult and Minor Child Head-of-Household Characteristics
This section allows for coding up to six adults (or a minor
child who is either a head-of-household or married to the head-of-
household and up to five adults) in the TANF family. A minor child
who is either a head-of-household or married to the head-of-
household should be coded as an adult and will hereafter be referred
to as a ``minor child head-of-household.'' For each adult (or minor
child head-of-household) in the TANF family, complete the adult
characteristics section. If a noncustodial parent is participating
in work activities funded under the State (Tribal) TANF Program for
the reporting month, the noncustodial parent must also be reported
in this section as a member of the family receiving assistance.
If there are more than six adults (or a minor child head-of-
household and five adults) in the TANF family, use the following
order to identify the persons to be coded: (1) the head-of-
household; (2) parents in the eligible family receiving assistance;
(3) other adults in the eligible family receiving assistance; (4)
Parents not in the eligible family receiving assistance; (5)
caretaker relatives not in the eligible family receiving assistance;
and (6) other persons, whose income or resources count in
determining eligibility for or amount of assistance of the eligible
family receiving assistance, in descending order the person with the
most income to the person with least income.
45. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the one-digit code that shows the adult's (or
minor child head-of-household's) relation to the eligible family
receiving assistance.
1=Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving assistance
3=Caretaker relative of minor child in the eligible family receiving
assistance
4=Minor sibling of child in the eligible family receiving assistance
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance
46. Noncustodial Parent Indicator:
Guidance: A noncustodial parent means a parent who does not live
with his/her child(ren). A noncustodial parent, who lives in the
State, may participate in work activities funded under the State
TANF
[[Page 62204]]
Program. In order for the noncustodial parent to participate in work
activities, (s)he must be a member of the eligible family receiving
assistance and be reported as part of the TANF family.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) noncustodial parent status.
1=Yes, a noncustodial parent
2=No
47. Date of Birth: Enter the eight-digit code for date of birth
for the adult (or minor child head-of-household) under the State
(Tribal) TANF Program in the format YYYYMMDD.
48. Social Security Number: Enter the nine-digit Social Security
Number for the adult (or minor child head-of-household) in the
format nnnnnnnnn.
49. Race: Enter the one-digit code for the race of the TANF
adult (or minor child head-of-household).
1=White, not of Hispanic origin
2=Black, not of Hispanic origin
3=Hispanic
4=American Indian or Alaska Native
5=Asian or Pacific Islander
6=Other
9=Unknown
50. Gender: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) gender.
1=Male
2=Female
Receives Disability Benefits
The Act specifies five types of disability benefits. For each
type of disability benefits, enter the one-digit code that indicates
whether or not the adult (or minor child head-of-household) received
the benefit.
51. Receives Federal Disability Insurance Benefits: Enter the
one-digit code that indicates the adult (or minor child head-of-
household) received Federal disability insurance benefits for the
reporting month.
1=Yes, received Federal disability insurance
2=No
52. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the adult (or minor child head-of-
household) received benefits based on Federal disability status for
the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
53. Receives Aid Under Title XIV-APDT: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XIV for the reporting
month.
1=Yes, received aid under Title XIV-APDT
2=No
54. Receives Aid Under Title XVI-AABD: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-AABD for the
reporting month.
1=Yes, received aid under Title XVI-AABD
2=No
55. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-SSI for the
reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
56. Marital Status: Enter the one-digit code for the adult's (or
minor child head-of-household's) marital status for the reporting
month.
1=Single, never married
2=Married, living together
3=Married, but separated
4=Widowed
5=Divorced
57. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the two-digit code that shows the adult's
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or as determined by the State
(Tribe), (i.e., the relationship to the principal person of each
person living in the household). If minor child head-of-household,
enter code ``01.''
01=Head of household
02=Spouse
03=Parent
04=Daughter or son
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
58. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the TANF family.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts: the highest level
of education attained and the highest degree attained.
59. Highest Level of Education Attained: Enter the two-digit
code to indicate the highest level of education attained by the
adult (or minor child head-of-household).
00=No formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
60. Highest Degree Attained: If the adult (or minor child head-
of-household) has a degree(s), enter the one-digit code that
indicates the adult's (or minor child head-of-household's) highest
degree attained. Otherwise, leave the field blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
61. Citizenship/Alienage:
Guidance: As described in TANF-ACF-PA-97-1, States have the
flexibility to: (1) use State MOE funds to serve ``qualified''
aliens, including those who enter on or after August 22, 1996; (2)
use Federal TANF funds to serve ``qualified'' aliens who arrived
prior to the enactment of the PRWORA on August 22, 1996 [such aliens
who arrived after enactment are barred from receiving Federal TANF
funds for five years from the date of entry, except for certain
aliens such as refugees and asylees]; (3) use State MOE funds to
serve legal aliens who are not ``qualified''; and (4) use, under
section 411(d) of PRWORA, State MOE funds to serve aliens who are
not lawfully present in the U.S., but only through enactment of a
State law, after the date of PRWORA enactment, which ``affirmatively
provides'' for such benefits.
The citizenship/alienage is divided into four groups:
individuals eligible (for the TANF Program based on citizenship/
alienage), individuals eligible at State option, individuals not
eligible, and status unknown.
Instruction: Enter the two-digit code that indicates the adult's
(or minor child head-of-household's) citizenship/alienage.
Individuals Eligible for the TANF Program
01=U.S. citizen, including naturalized citizens
02=Permanent resident who has worked forty qualifying quarters;
alien who is a veteran with an honorable discharge from the U.S.
Armed Forces or is on active duty in the U.S. Armed Forces, or
spouse or unmarried dependent children of such alien
03=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. five years or less
04=Qualified alien granted political asylum five or less years ago;
qualified alien granted a withholding of deportation by INS (under
sec. 243(h) or sec. 241(b)(3) of the INA) five or less years ago.
Individuals Eligible for the TANF Program at State Option
05=Qualified alien, (including immigrant accorded permanent resident
status (``green card''), parolee granted parole for at least one
year under sec. 212(d)(5) of the INA, and certain battered aliens
and their children who are determined to be qualified), who arrived
in the U.S. prior to enactment (August 22, 1996) or who arrived in
the U.S. on or after enactment and has resided in the U.S. more than
five years
06=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. more than five years
07=Qualified alien granted political asylum or granted withholding
of deportation by INS (under sec. 243(h) or sec. 241(b)(3) of the
INA) more than five years ago;
[[Page 62205]]
Individuals Not Eligible for the TANF Program
08=Qualified alien (other than a refugee, Cuban or Haitian entrant,
Amerasian immigrant, asylee, or alien whose deportation has been
withheld under sec. 243(h) or sec. 241(b)(3) of the INA) who arrived
in the U.S. on or after enactment and has resided in the U.S. less
than 5 years.
09=Any alien who is not a qualified alien.
Status Unknown
99=Unknown
62. Number of Months Countable toward Federal Time Limit in Own
State (Tribe): Enter the number of months countable toward the
adult's (or minor child head-of-household's) Federal five-year time
limit based on assistance received from the State (Tribe).
63. Number of Months Countable toward Federal Time Limit in
Other States or Tribes: Enter the number of months countable toward
the adult's (or minor child head-of-household's) Federal five-year
time limit based on assistance received from other States or Tribes.
64. Number of Countable Months Remaining Under State's (Tribe's)
Time Limit: Enter the number of months that remain countable toward
the adult's (or minor child head-of-household's) State (Tribal) time
limit.
65. Is Current Month Exempt from the State's (Tribe's) Time
Limit: Enter the one-digit code that indicates the adult's (or minor
child head-of-household's) current exempt status from State's
(Tribe's) time limit.
1=Yes, adult (or minor child head-of-household) is exempt from the
State's (Tribe's) time limit for the reporting month
2=No
66. Employment Status: Enter the one-digit code that indicates
the adult's (or minor child head-of-household's) employment status.
1=Employed
2=Unemployed, looking for work
3=Not in labor force (i.e, unemployed, not looking for work,
includes discouraged workers)
67. Work Participation Status:
Guidance: Disregarded from the participation rate means the TANF
family is not included in the calculation of the work participation
rate.
Exempt means that the individual will not be penalized for
failure to engage in work (i.e., good cause exception); however, the
TANF family is included in the calculation of the work participation
rate.
Instruction: Enter the two-digit code that indicates the adult's
(or minor child head-of-household's) work participation status.
01=Disregarded from participation rate, single custodial parent with
child under 12 months
02=Disregarded from participation rate because all of the following
apply: required to participate, but not participating, sanctioned
for the reporting month, but not sanctioned for more than 3 months
within the preceding 12-month period
03=Disregarded, family is part of an ongoing research evaluation (as
a member of a control group or experimental treatment group)
approved under Section 1115 of the Social Security Act
04=Disregarded from participation rate, is participating in a Tribal
Work Program, and State has opted to exclude all Tribal Work Program
participants from its work participation rate
05=Exempt, single custodial parent with child under age 6 and
unavailability of child care
06=Exempt, disabled (not using an extended definition under a State
waiver)
07=Exempt, caring for a severely disabled child (not using an
extended definition under a State waiver)
08=A temporary good cause domestic violence waiver (not using an
extended definition under a State waiver)
09=Exempt, State waiver
10=Exempt, other
11=Required to participate, but not participating, sanctioned for
the reporting month and sanctioned for more than 3 months within the
preceding 12-month period
12=Required to participate, but not participating, sanctioned for
the reporting month but not sanctioned for more than 3 months within
the preceding 12-month period
13=Required to participate, but not participating and not sanctioned
for the reporting month
14=Deemed engaged in work, teen head-of-household who maintains
satisfactory school attendance
15=Deemed engaged in work, single parent with child under age 6 and
parent engaged in work activities for at least 20 hours per week
16=Required to participate, participating but not meeting minimum
participation requirements
17=Required to participate, and meeting minimum participation
requirements
99=Not applicable (e.g., person living in household and whose income
or resources are counted in determining eligibility for or amount of
assistance of the family receiving assistance, but not in eligible
family receiving assistance)
Adult Work Participation Activities
Guidance: To calculate the average number of hours per week of
participation in a work activity, add the number of hours of
participation across all weeks in the month and divide by the number
of weeks in the month. Round to the nearest whole number.
Some weeks have days in more than one month. Include such a week
in the calculation for the month that contains the most days of the
week (e.g., the week of July 27-August 2, 1997 would be included in
the July calculation). Acceptable alternatives to this approach must
account for all weeks in the fiscal year. One acceptable alternative
is to include the week in the calculation for whichever month the
Friday falls (i.e., the JOBS approach.) A second acceptable
alternative is to count each month as having 4.33 weeks.
During the first or last month of any spell of assistance, a
family may happen to receive assistance for only part of the month.
If a family receives assistance for only part of a month, the State
(Tribe) may count it as a month of participation if an adult (or
minor child head-of-household) in the family (both adults, if they
are both required to work) is engaged in work for the minimum
average number of hours for the full week(s) that the family
receives assistance in that month.
Special Rules: Each adult (or minor child head-of-household) has
a life-time limit for vocational educational training. Vocational
educational training may only count as a work activity for a total
of 12 months. For any adult (or minor child head-of-household) that
has exceeded this limit, enter ``0'' as the average number of hours
per week of participation in vocational education training, even if
(s)he is engaged in vocational education training. The additional
participation in vocational education training may be coded under
``Other.''
The exception to the above 12 month rule may be a State that
received a waiver which is inconsistent with the provision limiting
vocational education training. In this case the State would adhere
to the terms and conditions of the waiver.
Limitations: The four limitations concerning job search and job
readiness are: (1) Job search and job readiness assistance only
count for 6 weeks in any fiscal year; (2) An individual's
participation in job search and job readiness assistance counts for
no more than 4 consecutive weeks; (3) If the State's (Tribe's) total
unemployment rate for a fiscal year is at least 50 percent greater
than the United States' total unemployment rate for that fiscal year
or the State is a needy State (within the meaning of Section 403
(b)(6), then an individual's participation in job search or job
readiness assistance counts for up to 12 weeks in that fiscal year;
and (4) A State may count 3 or 4 days of job search and job
readiness assistance during a week as a full week of participation,
but only once for any individual.
For each week in which an adult (or minor child head-of-
household) exceeds any of these limitations, use ``0'' as the number
of hours in calculating the average number of hours per week of job
search and job readiness, even if (s)he may be engaged in job search
or job readiness activities.
If a State is operating its TANF Program under a waiver which
permits broader rules for participation in job search and job
readiness training, the TANF rules apply for coding this element and
any additional participation in job search and job readiness
training permitted under the waiver rules
[[Page 62206]]
should be coded under the item ``Additional Work Activities
Permitted Under Waiver Demonstration.''
Instruction: For each work activity in which the adult (or minor
child head-of-household) participated during the reporting month,
enter the average number of hours per week of participation, except
as noted above. For each work activity in which the adult (or minor
child head-of-household) did not participate, enter zero as the
average number of hours per week of participation.
68. Unsubsidized Employment
69. Subsidized Private Sector Employment
70. Subsidized Public Sector Employment
71. Work Experience
72. On-the-job Training
73. Job Search and Job Readiness Assistance
Instruction: Do not count hours of participation in job search
and job readiness training beyond the TANF limit where allowed by
waivers in this item. Instead count the hours of participation
beyond the TANF limit in the item ``Additional Work Activities
Permitted Under Waiver Demonstration.'' Otherwise, count the
additional hours of work participation under the work activity
``Other Work Activities.''
74. Community Service Programs
75. Vocational Educational Training
Instruction: Do not count hours of participation in vocational
educational training beyond the TANF 12 month life-time limit where
allowed by waivers in this item. Instead count the hours of
participation beyond the TANF limit in the item ``Additional Work
Activities Permitted Under Waiver Demonstration.'' Otherwise, count
the additional hours of work participation under the work activity
``Other Work Activities.''
76. Job Skills Training Directly Related to Employment
77. Education Directly Related to Employment for Individuals
with no High School Diploma or Certificate of High School
Equivalency
78. Satisfactory School Attendance for Individuals with No High
School Diploma or Certificate of High School Equivalency
79. Providing Child Care Services to an Individual Who Is
Participating in a Community Service Program
80. Additional Work Activities Permitted Under Waiver
Demonstration
Instruction: Hours of participation in job search, job readiness
training, or other work activities beyond the TANF limits as
permitted by the State waiver should be counted in this item.
Otherwise, count the additional hours of work participation in the
work activity ``Other Work Activities.''
81. Other Work Activities
Guidance: Reporting on this data element is optional. States may
want to demonstrate their additional efforts at helping individuals
become self-sufficient even though these activities are not
considered in the calculation of the work participation rates.
82. Required Hours of Work Under Waiver Demonstration:
Guidance: In approving waivers, ACF specified hours of
participation in several instances. One type of hour change in the
welfare reform demonstrations, was the recognition, as part of a
change in work activities and/or exemptions, that the hours
individuals worked should be consistent with their abilities and in
compliance with an employability or personal responsibility plan or
other criteria in accordance to waiver terms and conditions. As the
hour requirement in this case was integral and necessary to achieve
the waiver purpose of appropriately requiring work activities to
move individuals to self-sufficiency, the State could show
inconsistency and could use the waiver hours instead of the hours in
section 407. A waiver that merely increased work hour requirements
would not be deemed inconsistent.
Instruction: If applicable, enter the two-digit number that
represents the average number of hours per week of work
participation required of the individual as described in the
demonstration terms or in an employability or personal
responsibility plan. Otherwise, leave blank or enter ``0.''
Amount of Earned Income
Earned income has two categories. For each category of earned
income, enter the dollar amount of the adult's (or minor child head-
of-household's) earned income.
83. Earned Income Tax Credit (EITC):
Guidance: Earned Income Tax Credit is a refundable tax credit
for families and dependent children. EITC payments are received
either monthly (as advance payment through the employer), annually
(as a refund from IRS), or both.
Instruction: Enter the total dollar amount of the earned income
tax credit actually received, whether received as an advance payment
or a single payment (e.g., tax refund), by the adult (minor child
head-of-household) during the reporting month. If the State counts
the EITC as a resource, report it here as earned income in the month
received. If the State assumes an advance payment is applied for and
obtained, only report what is actually received for this item.
84. Wages, Salaries, and Other Earnings
Amount of Unearned Income
Unearned income has four categories. For each category of
unearned income, enter the dollar amount of the adult's (or minor
child head-of-household's) unearned income.
85. Social Security: Enter the dollar amount of Social Security
that the adult in the State (Tribal) TANF family has received for
the reporting month.
86. SSI: Enter the dollar amount of SSI that the adult in the
State (Tribal) TANF family has received for the reporting month.
87. Worker's Compensation: Enter the dollar amount of Worker's
Compensation that the adult in the State (Tribal) TANF family has
received for the reporting month.
88. Other Unearned Income:
Guidance: Other unearned income includes (but is not limited to)
RSDI benefits, Veterans benefits, Unemployment Compensation, other
government benefits, housing subsidy, contribution/income-in-kind,
deemed income, Public Assistance or General Assistance, educational
grants/scholarships/loans, other. Do not include Social Security,
SSI, Worker's Compensation, value of Food Stamps assistance, the
amount of the Child Care subsidy, and the amount of Child Support.
Instruction: Enter the dollar amount of other unearned income
that the adult in the State TANF family has received for the
reporting month.
Child Characteristics
This section allows for coding up to ten children in the TANF
family. A minor child head-of-household should be coded as an adult,
not as a child. The youngest child should be coded as the first
child in the family, the second youngest child as the second child,
and so on. If the needs of an unborn child are included in the
amount of assistance provided to the family, code the unborn child
as one of the children. Do this by entering the Date-of-Birth as
``99999999'' and leave the other Child Characteristics fields blank.
If there are more than ten children in the TANF family, use the
following order to identify the persons to be coded: (1) children in
the eligible family receiving assistance in order from youngest to
oldest; (2) minor siblings of child in the eligible family receiving
assistance from youngest to oldest; and (3) any other children.
89. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the one-digit code that shows the Child's
relation to the eligible family receiving assistance.
1=Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving
assistance
3=Caretaker relative of minor child in the eligible family
receiving assistance
4=Minor sibling of child in the eligible family receiving
assistance
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance
90. Date of Birth: Enter the eight-digit code for date of birth
for this child under the State (Tribal) TANF Program in the format
YYYYMMDD.
91. Social Security Number: Enter the nine-digit Social Security
Number for the child in the format nnnnnnnnn.
92. Race: Enter the one-digit code for the race of the TANF
child.
1=White, not of Hispanic origin
2=Black, not of Hispanic origin
3=Hispanic
4=American Indian or Alaska Native
5=Asian or Pacific Islander
6=Other
9=Unknown
93. Gender: Enter the one-digit code that indicates the child's
gender.
1=Male
2=Female
[[Page 62207]]
Receives Disability Benefits
The Act specifies five types of disability benefits. Two of
these types of disability benefits are applicable to children. For
each type of disability benefits, enter the one-digit code that
indicates whether or not the child received the benefit.
94. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the child received benefits based
on Federal disability status for the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
95. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the child received aid under a State plan approved
under Title XVI-SSI for the reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
96. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the two-digit code that shows the child's
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or as determined by the State
(Tribe), (i.e., the relationship to the principal person of each
person living in the household.)
01=Head-of-household
02=Spouse
03=Parent
04=Daughter or son
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
97. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the TANF family.
Instruction: Enter the one-digit code that indicates the child's
teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts: the highest level
of education attained and the highest degree attained.
98. Highest Level of Education Attained: Enter the two-digit
code to indicate the highest level of education attained by the
child.
00=no formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
99. Highest Degree Attained:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: If the child has a degree(s), enter the one-digit
code that indicates the child's highest degree attained. Otherwise,
leave the field blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
9=Not applicable
100. Citizenship/Alienage: Enter the two-digit code that
indicates the child's citizenship/alienage. The coding for this data
element is the same as for item number 56, on page 439.
101. Cooperation with Child Support: Enter the one-digit code
that indicates this child's parent has cooperated with child support
for this child.
1=Yes, child's parent has cooperated with child support
2=No
3=Not applicable
Amount of Unearned Income
Unearned income has two categories. For each category of
unearned income, enter the dollar amount of the child's unearned
income.
102. SSI: Enter the dollar amount of SSI that the child in the
State (Tribal) TANF family has received for the reporting month.
103. Other Unearned Income: Enter the dollar amount of other
unearned income that the child in the State (Tribal) TANF family has
received for the reporting month.
Child Care Reporting Section
Complete this section for each child in the TANF family for
which a TANF child care subsidy is received (i.e., funded under the
State or Tribal TANF Program). If child care is provided by more
than one provider, enter the child care data for the greatest number
of hours on the Primary Care line, and the next highest number of
child care hours on the Secondary Care line.
104. Type of Child Care:
Definition: Provider types are divided into two broad categories
of licensed/regulated and legally operating (no license category
available in State or locality). Under each of these categories are
four types of providers: in-home, family home, group home, and
centers. A relative provider is defined as one who is at least 18
years of age and who is a grandparent, great-grandparent, aunt or
uncle, or sibling living outside the child's home.
Instruction: Enter the two-digit code indicating the type of
care for each child. The following codes specify who cared for the
child and where such care took place during the reporting month.
01=Licensed/regulated in-home child care
02=Licensed/regulated family child care
03=Licensed/regulated group home child care
04=Licensed/regulated center-based child care
05=Legally operating (no license category available in State or
locality) in-home child care provided by a non-relative
06=Legally operating (no license category available in State or
locality) in-home child care provided by a relative
07=Legally operating (no license category available in State or
locality) family child care provided by a non-relative
08=Legally operating (no license category available in State or
locality) family child care provided by a relative
09=Legally operating (no license category available in State or
locality) group child care provided by a non-relative
10=Legally operating (no license category available in State or
locality) group child care provided by a relative
11=Legally operating (no license category available in State or
locality) center-based child care
A. Primary
B. Secondary
105. Total Monthly Cost of Child Care: For each child receiving
child care, enter the total dollar amount (round to the nearest
dollar) that the provider charges for the service. Include both the
fee the family pays and the child care subsidy.
A. Primary
B. Secondary
106. Total Monthly Hours of Child Care Provided During the
Reporting Month: Enter the three-digit number for the total monthly
number of child care hours provided for the reporting month.
States (Tribes) may use their own formula to estimate the number
of child care hours provided. If the State payment system is based
on daily or part day rates, the calculated number of hours of
service would be based on the number of full or part days given in
each week (as defined by the State) multiplied by the number of
hours for the full or part day. The calculated number should be
reported as the actual number of hours provided.
Example:
Full day=8 hours
Part day=5 hours
Care given=3 full days and 2 part days
Average hours of care provided=(3*8+2*5)=34
A. Primary
B. Secondary
Appendix B--TANF Data Report--Section Two--Disaggregated Data
Collection for Families No Longer Receiving Assistance Under the TANF
Program
Instructions and Definitions
General Instruction: The State agency or Tribal grantee should
collect and report data for each data element, unless explicitly
instructed to leave the field blank.
1. State FIPS Code: Enter your two-digit State code from the
following listing. These codes are the standard codes used by the
National Institute of Standards and Technology. Tribal grantees
should leave this field blank.
[[Page 62208]]
------------------------------------------------------------------------
State Code
------------------------------------------------------------------------
Alabama.................................................... 01
Alaska..................................................... 02
American Samoa............................................. 60
Arizona.................................................... 04
Arkansas................................................... 05
California................................................. 06
Colorado................................................... 08
Connecticut................................................ 09
Delaware................................................... 10
District of Columbia....................................... 11
Florida.................................................... 12
Georgia.................................................... 13
Guam....................................................... 66
Hawaii..................................................... 15
Idaho...................................................... 16
Illinois................................................... 17
Indiana.................................................... 18
Iowa....................................................... 19
Kansas..................................................... 20
Kentucky................................................... 21
Louisiana.................................................. 22
Maine...................................................... 23
Maryland................................................... 24
Massachusetts.............................................. 25
Michigan................................................... 26
Minnesota.................................................. 27
Mississippi................................................ 28
Missouri................................................... 29
Montana.................................................... 30
Nebraska................................................... 31
Nevada..................................................... 32
New Hampshire.............................................. 33
New Jersey................................................. 34
New Mexico................................................. 35
New York................................................... 36
North Carolina............................................. 37
North Dakota............................................... 38
Ohio....................................................... 39
Oklahoma................................................... 40
Oregon..................................................... 41
Pennsylvania............................................... 42
Puerto Rico................................................ 72
Rhode Island............................................... 44
South Carolina............................................. 45
South Dakota............................................... 46
Tennessee.................................................. 47
Texas...................................................... 48
Utah....................................................... 49
Vermont.................................................... 50
Virgin Islands............................................. 78
Virginia................................................... 51
Washington................................................. 53
West Virginia.............................................. 54
Wisconsin.................................................. 55
Wyoming.................................................... 56
------------------------------------------------------------------------
2. County FIPS Code: Enter the three-digit code established by
the National Institute of Standards and Technology for
classification of counties and county equivalents. Codes were
devised by listing counties alphabetically and assigning
sequentially odd integers; e.g., 001, 003, 005, * * *. A complete
list of codes is available in Appendix F of the TANF Sampling and
Statistical Methods Manual. Tribal grantees should leave this field
blank.
3. Tribal Code: For Tribal grantees, enter the three-digit
Tribal code that represents your Tribe (See Appendix E of the TANF
Sampling and Statistical Methods Manual for a complete listing of
Tribal Codes). State agencies should leave this field blank.
4. Reporting Month: Enter the four-digit year and two-digit
month code that identifies the year and month for which the data are
being reported.
5. Stratum:
Guidance: All families selected in the sample from the same
stratum must be assigned the same stratum code. Valid stratum codes
may range from ``00'' to ``99.'' States and Tribes with stratified
samples should provide the ACF Regional Office with a listing of the
numeric codes utilized to identify any stratification. If a State or
Tribe uses a non-stratified sample design or opts to provide data
for its entire caseload, enter the same stratum code any two-digit
number) for each family.
Instruction: Enter the two-digit stratum code.
Family-Level Data
Definition: For reporting purposes, the TANF family means (a)
all individuals receiving assistance as part of a family under the
State's TANF Program; and (b) the following additional persons
living in the household, if not included under (a) above:
(1) Parent(s) or caretaker relative(s) of any minor child
receiving assistance;
(2) Minor siblings (including unborn children) of any child
receiving assistance; and
(3) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
6. Case Number--TANF:
Guidance: If the case number is less than the allowable eleven
characters, a State may use lead zeros to fill in the number.
Instruction: Enter the number that was assigned by the State
agency or Tribal grantee to uniquely identify the TANF family.
7. ZIP Code: Enter the five-digit ZIP code for the family's
place of residence for the reporting month.
8. Disposition: Enter one of the following codes for each TANF
family.
1=Data collection completed
2=Not subject to data collection/listed in error
9. Reason for Closure:
Guidance: A closed case is a family whose assistance was
terminated for the reporting month, but received assistance under
the State's TANF Program in the prior month. A temporally suspended
case is not a closed case. If there is more than one applicable
reason for closure, determine the principal (i.e., most relevant)
reason. If two or more reasons are equally relevant, use the reason
with the lowest numeric code.
Instruction: Enter the one-digit code that indicates the reason
for the TANF family no longer receiving assistance.
1=Employment
2=Marriage
3=Five-Year Time Limit
4=Sanction
5=State (Tribal) policy
6=Minor child absent from the home for a significant time period
7=Transfer to Separate State MOE Program
8=Other
10. Number of Family Members: Enter two digits that represent
the number of members in the family, which received assistance under
the State's (Tribe's) TANF Program.
11. Receives Subsidized Housing:
Guidance: Subsidized housing refers to housing for which money
was paid by the Federal, State, or Local government or through a
private social service agency to the family or to the owner of the
housing to assist the family in paying rent. Two families sharing
living expenses does not constitute subsidized housing.
Instruction: Enter the one-digit code that indicates whether or
not the TANF family received subsidized housing for the reporting
month.
1=Public housing
2=HUD rent subsidy
3=Other rent subsidy
4=No housing subsidy
12. Receives Medical Assistance: Enter ``1'' if, for the
reporting month, any TANF family member is eligible to receive
(i.e., a certified recipient of) medical assistance under the State
plan approved under Title XIX or ``2'' if no TANF family member is
eligible to receive medical assistance under the State plan approved
under Title XIX.
1=Yes, receives medical assistance
2=No
13. Receives Food Stamps: If the TANF family received Food
Stamps for the sample month, enter the one-digit code indicating the
type of Food Stamp assistance. Otherwise, enter ``4.''
1=Yes, Food Stamp coupon allotment
2=Yes, cash
3=Yes, wage subsidy
4=No
14. Amount of Food Stamp Assistance:
Guidance: For situations in which the Food Stamp household
differs from the TANF family, code this element in a manner that
most accurately reflects the resources available to the TANF family.
Instruction: Enter the TANF family's authorized dollar amount of
Food Stamp assistance for the reporting month.
15. Receives Subsidized Child Care:
Guidance: For the purpose of coding this data element,
subsidized child care funded under the Child Care and Development
Fund with funds that were transferred from the State TANF Program
should be coded as ``2.''
Instruction: If the TANF family receives subsidized child care
for the reporting month, enter code ``1'', ``2'', ``3'', or ``4'',
whichever is appropriate. Otherwise, enter code ``5.''
1=Yes, funded under the State (Tribal) TANF Program
2=Yes, funded under the Child Care and Development Fund
3=Yes, funded under another Federal program (e.g., SSBG)
4=Yes, funded under a State, Tribal, or local program
5=No
16. Amount of Subsidized Child Care:
Guidance: Subsidized child care means a grant by the Federal,
State or Local government to a parent (or care-taker relative) to
support, in part or whole, the cost of child care services provided
by an eligible provider to an eligible child. The grant may be paid
directly to the parent (or care-taker relative) or to a child care
provider on behalf of the parent (or care-taker relative).
[[Page 62209]]
Instruction: Enter the dollar amount of subsidized child care
that the TANF family has received for services in the reporting
month. If the TANF family did not receive any subsidized child care
for the reporting month, enter ``00.''
Person-Level Data
Person-level data has two sections: the adult and minor child
head-of-household characteristic section and the child
characteristics section. Section 419 of the Act defines adult and
minor child. An adult is an individual that is not a minor child. A
minor child is an individual who (a) has not attained 18 years of
age or (b) has not attained 19 years of age and is a full-time
student in a secondary school (or in the equivalent level of
vocational or technical training.)
Adult and Minor Child Head-of-Household Characteristics
This section allows for coding up to six adults (or a minor
child head-of-household and up to five adults) in the TANF family. A
minor child head-of-household should be coded as an adult. For each
adult (or minor child head-of-household) in the TANF family,
complete the adult characteristics section. If a noncustodial parent
is participating in work activities funded under the State (Tribal)
TANF Program for the reporting month, the noncustodial parent must
also be reported in this section as a member of the family receiving
assistance.
If there are more than six adults (or a minor child head-of-
household and five adults) in the TANF family, use the following
order to identify the persons to be coded: (1) the head-of-
household; (2) parents in the eligible family receiving assistance;
(3) other adults in the eligible family receiving assistance; (4)
Parents not in the eligible family receiving assistance; (5)
caretaker relatives not in the eligible family receiving assistance;
and (6) other persons, whose income or resources count in
determining eligibility for or amount of assistance of the eligible
family receiving assistance, in descending order the person with the
most income to the person with least income.
17. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the one-digit code that shows the adult's
relation to the eligible family receiving assistance.
1=Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving assistance
3=Caretaker relative of minor child in the eligible family receiving
assistance
4=Minor sibling of child in the eligible family receiving assistance
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance
18. Date of Birth: Enter the eight-digit code for date of birth
for this adult (or minor child head-of-household) under TANF in the
format YYYYMMDD.
19. Social Security Number: Enter the nine-digit Social Security
Number for the adult (or minor child head-of-household) in the
format nnnnnnnnn.
20. Race: Enter the one-digit code for the race of the TANF
adult (or minor child head-of-household).
1=White, not of Hispanic origin
2=Black, not of Hispanic origin
3=Hispanic
4=American Indian or Alaska Native
5=Asian or Pacific Islander
6=Other
9=Unknown
21. Gender: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) gender.
1=Male
2=Female
Receives Disability Benefits
The Act specifies five types of disability benefits.For each
type of disability benefits, enter the one-digit code that indicates
whether or not the adult (or minor child head-of-household) received
the benefit.
22. Receives Federal Disability Insurance Benefits: Enter the
one-digit code that indicates the adult (or minor child head-of-
household) received Federal disability insurance benefits for the
reporting month.
1=Yes, received Federal disability insurance
2=No
23. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the adult (or minor child head-of-
household) received benefits based on Federal disability status for
the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
24. Receives Aid Under Title XIV-APDT: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XIV for the reporting
month.
1=Yes, received aid under Title XIV-APDT
2=No
25. Receives Aid Under Title XVI-AABD: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-AABD for the
reporting month.
1=Yes, received aid under Title XVI-AABD
2=No
26. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-SSI for the
reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
27. Marital Status: Enter the one-digit code for the marital
status of the recipient.
1=Single, never married
2=Married, living together
3=Married, but separated
4=Widowed
5=Divorced
28. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the two-digit code that shows the adult's
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or as determined by the State
(Tribe), (i.e., the relationship to the principal person of each
person living in the household.) If a minor child head-of-household,
enter code ``01.''
01=Head of household
02=Spouse
03=Parent
04=Daughter or son
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
29. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the TANF family.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts: the highest level
of education attained and the highest degree attained.
30. Highest Level of Education Attained: Enter the two-digit
code to indicate the highest level of education attained by the
adult (or minor child head-of-household).
00=No formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
31. Highest Degree Attained: If the adult (or minor child head-
of-household) has a degree(s), enter the one-digit code that
indicates the adult's (or minor child head-of-household's) highest
degree attained. Otherwise, leave the field blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
32. Citizenship/Alienage:
Guidance: As described in TANF-ACF-PA-97-1, States have the
flexibility to: (1) use State MOE funds to serve ``qualified''
aliens, including those who enter on or after August 22, 1996; (2)
use Federal TANF funds to serve ``qualified'' aliens who arrived
prior to the enactment of the PRWORA on August 22, 1996 [such aliens
who arrived after
[[Page 62210]]
enactment are barred from receiving Federal TANF funds for five
years from the date of entry, except for certain aliens such as
refugees and asylees]; (3) use State MOE funds to serve legal aliens
who are not ``qualified''; and (4) use, under section 411(d) of
PRWORA, State MOE funds to serve aliens who are not lawfully present
in the U.S., but only through enactment of a State law, after the
date of PRWORA enactment, which ``affirmatively provides'' for such
benefits.
The citizenship/alienage is divided into four groups:
individuals eligible (for the TANF Program based on citizenship/
alienage), individuals eligible at State option, individuals not
eligible, and status unknown.
Instruction: Enter the two-digit code that indicates the adult's
(or minor child head-of-household's) citizenship/alienage.
Individuals Eligible for the TANF Program
01=U.S. citizen, including naturalized citizens
02=Permanent resident who has worked forty qualifying quarters;
alien who is a veteran with an honorable discharge from the U.S.
Armed Forces or is on active duty in the U.S. Armed Forces, or
spouse or unmarried dependent children of such alien
03=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. five years or less
04=Qualified alien granted political asylum five or less years ago;
qualified alien granted a withholding of deportation by INS (under
sec. 243(h) or sec. 241(b)(3) of the INA) five or less years ago.
Individuals Eligible for the TANF Program at State Option
05=Qualified alien, (including immigrant accorded permanent resident
status (``green card''), parolee granted parole for at least one
year under sec. 212(d)(5) of the INA, and certain battered aliens
and their children who are determined to be qualified), who arrived
in the U.S. prior to enactment (August 22, 1996) or who arrived in
the U.S. on or after enactment and has resided in the U.S. more than
five years
06=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. more than five years
07=Qualified alien granted political asylum or granted withholding
of deportation by INS (under sec. 243(h) or sec. 241(b)(3) of the
INA) more than five years ago;
Individuals Not Eligible for the TANF Program
08=Qualified alien (other than a refugee, Cuban or Haitian entrant,
Amerasian immigrant, asylee, or alien whose deportation has been
withheld under sec. 243(h) or sec. 241(b)(3) of the INA) who arrived
in the U.S. on or after enactment and has resided in the U.S. less
than 5 years.
09=Any alien who is not a qualified alien.
Status Unknown
99=Unknown
33. Number of Months Countable toward Federal Time Limit in Own
State (Tribe): Enter the number of months countable toward the
adult's (or minor child head-of-household's) Federal five-year time
limit based on assistance received from the State (Tribe).
34. Number of Months Countable toward Federal Time Limit in
Other States or Tribes: Enter the number of months countable toward
the adult's (or minor child head-of-household's) Federal five-year
time limit based on assistance received from other States or Tribes.
35. Number of Countable Months Remaining Under State's (Tribe's)
Time Limit: Enter the number of months that remain countable toward
the adult's (or minor child head-of-household's) State (Tribal) time
limit.
36. Employment Status: Enter the one-digit code that indicates
the adult's (or minor child head-of-household's) employment status.
1=Employed
2=Unemployed, looking for work
3=Not in labor force (i.e, unemployed, not looking for work,
includes discouraged workers)
Amount of Earned Income
For each category of earned income, enter the amount of the
adult's (or minor child head-of-household's) earned income.
37. Earned Income Tax Credit (EITC):
Guidance: Earned Income Tax Credit is a refundable tax credit
for families and dependent children. EITC payments are received
either monthly (as advance payment through the employer), annually
(as a refund from IRS), or both.
Instruction: Enter the total dollar amount of the earned income
tax credit actually received, whether received as an advance payment
or a single payment (e.g., tax refund), by the adult (minor child
head-of-household) during the reporting month. If the State counts
the EITC as a resource, report it here as earned income in the month
received. If the State assumes an advance payment is applied for and
obtained, only report what is actually received for this item.
38. Wages, Salaries, and Other Earnings:
Amount of Unearned Income
39. Unearned Income: Enter the amount of the adult's (or minor
child head-of-household's) unearned income.
Child Characteristics
This section allows for coding up to ten children in the TANF
family. A minor child head-of-household should be coded as an adult,
not as a child. The youngest child should be coded as the first
child in the family, the second youngest child as the second child,
and so on. If the needs of an unborn child are included in the
amount of assistance provided to the family, code the unborn child
as one of the children. Do this by entering the Date-of-Birth as
``99999999'' and leave the other Child Characteristics fields blank.
If there are more than ten children in the TANF family, use the
following order to identify the persons to be coded: (1) children in
the eligible family receiving assistance in order from youngest to
oldest; (2) minor siblings of child in the eligible family receiving
assistance from youngest to oldest; and (3) any other children.
40. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the one-digit code that shows the Child's
relation to the eligible family receiving assistance.
1=Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving assistance
3=Caretaker relative of minor child in the eligible family receiving
assistance
4=Minor sibling of child in the eligible family receiving assistance
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance
41. Date of Birth: Enter the eight-digit code for date of birth
for this child under TANF in the format YYYYMMDD.
42. Social Security Number: Enter the nine-digit Social Security
Number for the child in the format nnnnnnnnn.
43. Race: Enter the one-digit code for the race of the TANF
child.
1=White, not of Hispanic origin
2=Black, not of Hispanic origin
3=Hispanic
4=American Indian or Alaska Native
5=Asian or Pacific Islander
6=Other
9=Unknown
44. Gender: Enter the one-digit code that indicates the child's
gender.
1=Male
2=Female
Receives Disability Benefits
The Act specifies five types of disability benefits. Two of
these types of disability benefits are applicable to children. For
each type of disability benefits, enter the one-digit code that
indicates whether or not the child received the benefit.
45. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the child received benefits based
on Federal disability status for the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
46. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the child received aid under a State plan approved
under Title XVI-SSI for the reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
47. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-
[[Page 62211]]
household section and (2) the minor child section. The same coding
schemes are used in both sections. Some of these codes may not be
applicable for children.
Instruction: Enter the two-digit code that shows the child's
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or as determined by the State
(Tribe), (i.e., the relationship to the principal person of each
person living in the household.)
01=Head of household
02=Spouse
03=Parent
04=Daughter or son
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
48. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the TANF family.
Instruction: Enter the one-digit code that indicates the child's
teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts: the highest level
of education attained and the highest degree attained.
49. Highest Level of Education Attained: Enter the two-digit
code to indicate the highest level of education attained by the
child.
00=No formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
50. Highest Degree Attained:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: If the child has a degree(s), enter the one-digit
code that indicates the child's highest degree attained. Otherwise,
leave the field blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
9=Not applicable
51. Citizenship/Alienage: Enter the two-digit code that
indicates the child's citizenship/alienage. The coding for this data
element is the same as for item number 27, on page 486.
52. Cooperation with Child Support: Enter the one-digit code
that indicates whether this child's parent has cooperated with child
support for this child.
1=Yes, child's parent has cooperated with child support
2=No, child's parent has not cooperated with child support
3=Not applicable
53. Unearned Income: Enter the dollar amount of the child's
unearned income.
Appendix C--TANF Data Report--Section Three--Aggregated Data Collection
for Families Applying for, Receiving, and No Longer Receiving
Assistance Under the TANF Program
Instructions and Definitions
1. State FIPS Code: Enter your two-digit State code. Tribal
grantees should leave this field blank.
2. Tribal Code: For Tribal grantees only, enter the three-digit
Tribal code that represents your Tribe (See Appendix E of the TANF
Sampling and Statistical Methods Manual for a complete listing of
Tribal Codes). State agencies should leave this field blank.
3. Calendar Quarter: The four calendar quarters are as follows:
First quarter........................ January-March.
Second quarter....................... April-June.
Third quarter........................ July-September.
Fourth quarter....................... October-December.
Enter the four-digit year and one-digit quarter code (in the
format YYYYQ) that identifies the calendar year and quarter for
which the data are being reported (e.g., first quarter of 1997 is
entered as ``19971'').
Applications
Guidance: The term ``application'' means the action by which an
individual indicates in writing to the agency administering the
State (or Tribal) TANF Program his/her desire to receive assistance.
Instruction: All counts of applications should be unduplicated
monthly totals.
4. Total Number of Applications: Enter the total number of
approved and denied applications received for each month of the
quarter. For each month in the quarter, the total in this item
should equal the sum of the number of approved applications (in item
#5) and the number of denied applications (in item #6).
A. First Month:
B. Second Month:
C. Third Month:
5. Total Number of Approved Applications: Enter the number of
applications approved during each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
6. Total Number of Denied Applications: Enter the number of
applications denied (or otherwise disposed of) during each month of
the quarter.
A. First Month:
B. Second Month:
C. Third Month:
Active Cases
For purposes of completing this report, include all TANF
eligible cases receiving assistance (i.e., cases funded under the
TANF block grant and State MOE funded TANF cases) as cases receiving
assistance under the State (Tribal) TANF Program. All counts of
families and recipients should be unduplicated monthly totals.
7. Total Amount of Assistance: Enter the dollar value of all
assistance (cash and non-cash) provided to TANF families under the
State (Tribal) TANF Program for each month of the quarter. Round the
amount of assistance to the nearest dollar.
A. First Month:
B. Second Month:
C. Third Month:
8. Total Number of Families: Enter the number of families
receiving assistance under the State (Tribal) TANF Program for each
month of the quarter. The total in this item should equal the sum of
the number of two-parent families (in item #9), the number of one-
parent families (in item 10) and the number of no-parent
families (in item #11).
A. First Month:
B. Second Month:
C. Third Month:
9. Total Number of Two-parent Families: Enter the total number
of 2-parent families receiving assistance under the State (Tribal)
TANF Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
10. Total Number of One-Parent Families: Enter the total number
of one-parent families receiving assistance under the State (Tribal)
TANF Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
11. Total Number of No-Parent Families: Enter the total number
of no-parent families receiving assistance under the State (Tribal)
TANF Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
12. Total Number of Recipients: Enter the total number of
recipients receiving assistance under the State (Tribal) TANF
Program for each month of the quarter. The total in this item should
equal the sum of the number of adult recipients (in item #13) and
the number of child recipients (in item #14).
A. First Month:
B. Second Month:
C. Third Month:
13. Total Number of Adult Recipients: Enter the total number of
adult recipients receiving assistance under the State (Tribal) TANF
Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
14. Total Number of Child Recipients: Enter the total number of
child recipients receiving assistance under the State (Tribal) TANF
Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
[[Page 62212]]
15. Total Number of Non-Custodial Parents Participating in Work
Activities: Enter the total number of non-custodial parents
participating in work activities under the State (Tribal) TANF
Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
16. Total Number of Minor Child Heads-of-Household: Enter the
total number of minor child head-of-household families receiving
assistance under the State (Tribal) TANF Program for each month of
the quarter.
A. First Month:
B. Second Month:
C. Third Month:
17. Total Number of Births: Enter the total number of births for
families receiving assistance under the State (Tribal) TANF Program
for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
18. Total Number of Out-of-Wedlock Births: Enter the total
number of out-of-wedlock births for families receiving assistance
under the State (Tribal) TANF Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
Closed Cases
19. Total Number of Closed Cases: Enter the total number of
closed cases for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
BILLING CODE 4184-01-P
[[Page 62213]]
[GRAPHIC] [TIFF OMITTED] TP20NO97.000
BILLING CODE 4184-01-C
[[Page 62214]]
Appendix D--Section 2--Instruction for Completion of Form ACF-196
Financial Reporting Form for the Temporary Assistance for Needy
Families (TANF) Program
All States must complete and submit this report in accordance
with these instructions on behalf of the State agency administering
the TANF Program.
Due Dates: This form must be submitted quarterly by February 14,
May 15, August 14 and November 14.
States must submit quarterly reports for each fiscal year until
all Federal TANF funds are expended. A State may be submitting
reports simultaneously to cover two or more fiscal years.
Distribution: The original copy (with original signatures)
should be submitted to: Administration for Children and Families,
Office of Program Support, Division of Formula, Entitlement and
Block Grants, Aerospace Building, 7th Floor, 370 L'Enfant Promenade,
S.W., Washington, D.C. 20447. An additional copy should be submitted
to the ACF Regional Administrator.
General Instructions
--Round all entries to the nearest dollar. Omit cents.
--Enter State name.
--Enter the Fiscal Year for which this report is being submitted.
Funding for each fiscal year is available until expended. Therefore,
for each fiscal year, a State may be submitting reports
simultaneously to cover two or more fiscal years. It is important to
indicate the year for which information is being reported.
--Enter the ending dates for the current quarter (the quarter just
ended for which this constitutes the report of actual expenditures
and obligations) and the ending date of the next quarter (the
upcoming quarter for which estimates are being requested on line
11).
Example: The State is reporting for the 1st quarter of the
Federal fiscal year (10/1 through 12/31), the report is due February
14, the current quarter ending date is 12/31, the next quarter
ending date for which estimates are requested is 6/30. The estimate
submitted by the State will be for the quarter of 4/1 through 6/30.
Estimates are not required on quarterly reports submitted for prior
fiscal years.
--Enter whether this report is being used for annual reconciliation
of the Contingency Fund.
--Enter the Federal Medical Assistance Percentage Rate used by the
State for the fiscal year for which Contingency Funds were received.
--Indicate whether this is a new report or a revision of a report
previously submitted for the same period.
--Entries are not required or are not applicable to blocks that are
shaded.
Columns: All amounts reported in columns (A) through (D) must be
actual expenditures or obligations made in accordance with all
applicable statutes and regulations. Amounts reported in the
estimates section are Federal estimates of expenditures to be made
during the quarter indicated based on the best information available
to the State.
Explanation of Columns
Column (A) lines 1 through 4 refer to the Federal State Family
Assistance Grant (SFAG) awards, amounts transferred to the Child
Care and Development Fund (CCDF) (Discretionary Fund) and the Social
Services Block Grant (SSBG) program, and the amount available for
TANF.
Column (A) lines 5 through 10 refer to the Federal SFAG funds
the State expended and obligated under its TANF program.
Column (A) line 11 is the SFAG grant award amount or percentage
the State estimates it will need for the next quarter ending
referenced at the top of the form. (See page 6 of Line Item
Instructions)
Column (B) lines 5 through 8 refer to State TANF expenditures
the State is making to meet its TANF Maintenance of Effort (MOE)
requirement. Includes State funds that are commingled with Federal
funds; or State funds expended on the State program funded under
TANF.
Note: States receiving Contingency Funds under section 403(b)
for the fiscal year must also use this same column to report State
TANF expenditures made to meet the Contingency Fund (CF) MOE
requirement and matching expenditures made above the 100 percent MOE
requirement. Expenditures made to meet the CF MOE requirement and
expenditures made above the MOE level (for matching purposes) must
be expenditures made under the State TANF program only; they cannot
include expenditures made under ``separate State programs.'' In
addition, child care expenditures cannot be included as MOE
expenditures or expenditures that are matched with Contingency
Funds.
Column (C) lines 5 through 8 refer to State expenditures the
State is making in Separate State Programs outside the State TANF
program to meet its TANF MOE requirement.
Note: For the TANF MOE requirement, the cumulative total
expenditures (Sum of 8(B)+8(C)) reported at the end of the Federal
fiscal year should add up to 75% of fiscal year 1994 historic State
expenditures if the State met the TANF participation requirements,
or 80% of fiscal year 1994 historic State expenditures if the State
did not meet the TANF participation requirements. TANF MOE
requirements and tables were published in Program Instruction No.
TANF-ACF-PI-96-2, dated December 6, 1996.
For States that received Contingency Funds, line 8(B) minus line
5c(B) (child care) must exceed 100 percent of the CF MOE
requirement.
Note: The State must submit an addendum attached to the fourth
quarter report for each fiscal year that provides ``separate State
program'' information as required under parts 273 and 274 of the
proposed rules.
Column (D) line 1 refers to the Federal Contingency Fund grant
awards.
Column (D) lines 5 through 10 refer to the Federal share of
expenditures for which Federal funding is available at the FMAP rate
for the fiscal year for which Contingency Funds were received.
Contingency Funds are available for match for State expenditures in
excess of 100% of CF MOE requirements as explained in the ``Note''
above.
Example: The State received Contingency Funds of $100,000 for 6
months of the fiscal year; the FMAP rate is 60% Federal and 40%
State; the CF 100% MOE requirement is $1,000,000; the State reported
expenditures under Columns (B) and (D) of $1,200,000. To determine
how much of the Contingency Funds the State can keep, the
expenditures of $1,000,000 (CF MOE requirement) must be subtracted
from the total expenditures of $1,200,000. That difference
($200,000) is to be multiplied by 60 percent, i.e.,
$200,000 x 60%=$120,000. The $120,000 must then be multiplied by 1/
12 times the number of months a State received Contingency Funds,
i.e., $120,000 x 1/12 x 6=$60,000. The State may keep only $60,000
of the $100,000 ACF awarded it for the Contingency Fund.
Determining how much, if any, a State can keep of the
Contingency Funds awarded to it for a fiscal year, is known only
after annual reconciliation of the Contingency Fund account is
completed. This form will serve as the annual reconciliation report
when submitted for the fourth quarter of the fiscal year. Based on
the example above, line 8 of Column (D) (Total Expenditures-
Contingency Fund) must equal $60,000.
It is possible that a State will have received Contingency Funds
after the end of the fiscal year that apply to expenditures made in
the prior fiscal year. For a State receiving Contingency Funds for a
fiscal year after it has ended, the State will be required to submit
a revised fourth quarter report within 45 days of receipt of the
additional Contingency Funds. There is no carryover from one fiscal
year to the next.
State Replacement of Grant Reductions Resulting From Penalties
If a State's State Family Assistance Grant is reduced because of
the imposition of a penalty under section 409, section 409(a)(12)
provides that the State must maintain a level of spending at the
SFAG amount. In place of SFAG funds withheld for a penalty, the
State must substitute with its own funds an amount that is no less
than the amount withheld. The State replacement funds must be
included in Column (B).
Line Item Instructions--Cumulative Fiscal Year Expenditures and
Obligations
Line 1. Awarded. Enter in column (A) the cumulative total of
State Family Assistance Grant (SFAG) funds awarded to the State from
October 1 of the Federal fiscal year for which the report is being
submitted through the current quarter being reported. Enter in
column (D) the cumulative total of Contingency Funds awarded to the
State from October 1 of the Federal fiscal year for which the report
is being submitted through the current quarter being reported.
Line 2. Transferred to Child Care and Development Fund (CCDF).
Enter in column (A) the cumulative total of funds the State
transferred to the Discretionary Fund of the Child Care and
Development Fund from October 1 of the Federal fiscal year for which
the report is being submitted through the current quarter being
reported. Section
[[Page 62215]]
404(d)(1) of the Act governs the transfer of SFAG funds to the
Discretionary Fund. In compliance with section 404(d)(1), a State
may not transfer more than 30% of its total annual SFAG grant. A
State may transfer this entire amount to the Discretionary Fund of
the CCDF program. All funds transferred to the Discretionary Fund of
the CCDF program take on the rules and regulations of that recipient
Fund.
Line 3. Transferred to SSBG. Enter in column (A) the cumulative
total of funds the State transferred to the Social Services Block
Grant (SSBG) program from October 1 of the Federal fiscal year for
which the report is being submitted through the current quarter
being reported. Section 404(d)(2) of the Act governs the transfer of
SFAG funds to the SSBG program; it limits the amount a State may
transfer to no more than 10% of its total annual SFAG to SSBG.
(Also, the combined amount transferred to SSBG and the Discretionary
Fund may not exceed 30% of the annual SFAG. In other words, for all
financial reports applicable to grant funds for one fiscal year, the
sum of the total cumulative amount reported on line 3 and the total
cumulative amount reported on line 2 cannot exceed 30% of the annual
SFAG.) All funds transferred to the SSBG program are subject to the
statute and regulations of the recipient SSBG program.
Line 4. Available for TANF. Enter in column (A) the cumulative
total of funds available for TANF after subtracting the amounts
transferred to the CCDF program (Discretionary Fund) (line 2(A))
and/or the SSBG program (line 3(A)) from October 1 of the Federal
fiscal year for which the report is being submitted through the
current quarter being reported.
Line 5. Expenditures on Assistance. Blocks are shaded.
Expenditures in this category must be included in Lines 5a. through
5d.
Line 5a. Cash Assistance. Enter in columns (A), (B), (C) and (D)
the cumulative total expenditures for cash assistance from October 1
of the Federal fiscal year for which the report is being submitted
through the current quarter being reported.
Line 5b. Work Subsidies. Enter in columns (A), (B), (C) and (D)
the cumulative total expenditures for work subsidies from October 1
of the Federal fiscal year for which the report is being submitted
through the current quarter being reported.
Line 5c. Child Care. Enter in columns (A), (B), (C) and (D) the
cumulative total expenditures for child care from October 1 of the
Federal fiscal year for which the report is being submitted through
the current quarter being reported. The amounts reported in this
category do not include funds transferred to the CCDF (Discretionary
Fund) or SSBG programs.
Line 5d. Other. Enter in columns (A), (B), (C) and (D) the
cumulative total expenditures for other expenditures considered
``expenditures on assistance'' that were not included on Lines 5a-5c
from October 1 of the Federal fiscal year for which the report is
being submitted through the current quarter being reported.
Note: The State must submit as an addendum attached to the
fourth quarter report for each fiscal year which identifies the
activities for which the ``other expenditures'' under this line item
applies.
Line 6. Expenditures on Non-Assistance. Blocks are shaded.
Expenditures in this category must be included in Lines 6a through
6e.
Line 6a. Work Activities. Enter in columns (A), (B), (C) and (D)
the cumulative total expenditures for work activities from October 1
of the Federal fiscal year for which the report is being submitted
through the current quarter being reported.
Note: The State must submit as an addendum attached to the
fourth quarter report for each fiscal year (or more frequently, if
there are changes) the State's definition of each work activity.
Line 6b. Administration. Enter in columns (A), (B), (C) and (D)
the cumulative total expenditures for administrative costs from
October 1 of the Federal fiscal year for which the report is being
submitted through the current quarter being reported.
For State Family Assistance Grants (SFAG), the 15%
administrative cost cap applies to the amount Available for TANF
reported on line 4(A) of this form. For the Contingency Fund, the
15% administrative cost cap applies to the amount of total Federal
expenditures reported on line 8(D). For State expenditures reported
in columns (B) and (C), the 15% administrative cost cap applies to
the amount of Total Expenditures (line 8) reported for each of these
columns.
Line 6c. Systems. Enter in columns (A), (B), (C) and (D) the
cumulative total expenditures for systems costs from October 1 of
the Federal fiscal year for which the report is being submitted
through the current quarter being reported.
Note: Section 404(b)(1) of the Act limits States to which a
grant is made under section 403 to expend no more than 15% of the
grant for administrative costs. In addition, section 404(b)(2) of
the Act states that the 15% administrative cost cap shall not apply
to the use of a grant for information technology and computerization
needed for tracking or monitoring required by or under this part.
Line 6d. Transitional Services for Employed. Enter in columns
(A), (B), (C) and (D) the cumulative total expenditures to provide
transitional services to families that cease to receive assistance
under the TANF program because of employment from October 1 of the
Federal fiscal year for which the report is being submitted through
the current quarter being reported.
Note: The State must submit as an addendum attached to the
fourth quarter report for each fiscal year which describes the types
of services the State provided under this line item.
Line 6e. Other. Enter in columns (A), (B), (C) and (D) the
cumulative total expenditures for other expenditures considered
``expenditures on non-assistance'' that were not included on Lines
6a-6d. from October 1 of the Federal fiscal year for which the
report is being submitted through the current quarter being
reported.
Note: The State must submit as an addendum attached to the
fourth quarter report for each fiscal year which identifies the
activities for which the ``other expenditures'' under this line item
applies.
Line 7. Other Expenditures. Enter in columns (A), (B), (C) and
(D) the cumulative total other expenditures from October 1 of the
Federal fiscal year for which the report is being submitted through
the current quarter being reported. ``Other expenditures'' are those
expenditures that cannot be reported under any other category on
this form.
Note: The State must submit as an addendum attached to the
fourth quarter report for each fiscal year which identifies the
activities for which the ``other expenditures'' under this line item
applies.
Line 8. Total Expenditures. Enter in columns (A), (B), (C) and
(D) the cumulative total expenditures (Sum of Line 5a through Line
7) from October 1 of the Federal fiscal year for which the report is
being submitted through the current quarter being reported.
Line 9. Federal Unliquidated Obligations. Enter in columns (A)
and (D) the cumulative total Federal unliquidated obligations from
October 1 of the Federal fiscal year for which the report is being
submitted through the current quarter being reported.
For the Contingency Fund, this line should indicate $0 for the
report submitted for the fourth quarter.
Line 10. Unobligated Balance. Enter in columns (A) and (D) the
cumulative total Federal unobligated balances from October 1 of the
Federal fiscal year for which the report is being submitted through
the current quarter being reported. After the end of the Federal
fiscal year any amount reported in column (D) as an unobligated
balance will be de-obligated by ACF.
Line 11. Estimate for Next Quarter Ended. Enter in column (A)
the estimate of SFAG grant award funds requested for the next
quarter ending (refer to the next quarter ending entered at the top
of this report).
Note: Section 405(c)(1) of the Act states ACF shall estimate the
amount to be paid to each eligible State for each quarter, such
estimate is to be based on a report filed by the State containing an
estimate by the State of the total sum to be expended by the State
in the quarter under the State program funded under section 403.
Appendix D--Section 3
Information To Be Reported as an Addendum to the Fourth Quarter TANF
Financial Report
A. The following definitions and information with respect to the
TANF program:
(1) The number of cases excluded from the overall work
participation rate, the two-parent work participation rate, and the
time-limit calculations because of the State's definition of
``families receiving assistance,'' together with an explanation of
the basis for such exclusions;
(2) The State's definition of each work activity;
(3) A description of the transitional services provided to
families no longer receiving assistance due to employment; and
(4) The State's description of how it will reduce the amount of
assistance otherwise
[[Page 62216]]
payable to the family prorata (or more) with respect to any period
during a month in which the individual refuses to engage in work
without good cause.
B. The following information on separate State programs whose
expenditures are counted by the State as MOE:
(1) A description of the specific program activities provided to
eligible families;
(2) Each MOE program's statement of purpose (i.e., how the
program activity serves eligible families);
(3) The applicable definitions of each work activity;
(4) Whether the program activity had been previously authorized
and allowable as of August 21, 1996, under section 403 of prior law;
(5) The FY 1995 State expenditures for each program activity not
authorized and allowable as of August 21, 1996;
(6) The total number of eligible families served by each program
activity as of the end of the fiscal year;
(7) The eligibility criteria for the families served under each
program; and
(8) A certification that those families served met the State's
criteria for eligible families.
Appendix E--TANF MOE Data Report--Section One--Disaggregated Data
Collection for Families Receiving Assistance Under the Separate State
Programs
Instructions and Definitions
General Instruction: The State agency should collect and report
data for each data element shown below.
1. State FIPS Code: Enter your two-digit State code from the
following listing. These codes are the standard codes used by the
National Institute of Standards and Technology.
------------------------------------------------------------------------
State Code
------------------------------------------------------------------------
Alabama.................................................... 01
Alaska..................................................... 02
American Samoa............................................. 60
Arizona.................................................... 04
Arkansas................................................... 05
California................................................. 06
Colorado................................................... 08
Connecticut................................................ 09
Delaware................................................... 10
District of Columbia....................................... 11
Florida.................................................... 12
Georgia.................................................... 13
Guam....................................................... 66
Hawaii..................................................... 15
Idaho...................................................... 16
Illinois................................................... 17
Indiana.................................................... 18
Iowa....................................................... 19
Kansas..................................................... 20
Kentucky................................................... 21
Louisiana.................................................. 22
Maine...................................................... 23
Maryland................................................... 24
Massachusetts.............................................. 25
Michigan................................................... 26
Minnesota.................................................. 27
Mississippi................................................ 28
Missouri................................................... 29
Montana.................................................... 30
Nebraska................................................... 31
Nevada..................................................... 32
New Hampshire.............................................. 33
New Jersey................................................. 34
New Mexico................................................. 35
New York................................................... 36
North Carolina............................................. 37
North Dakota............................................... 38
Ohio....................................................... 39
Oklahoma................................................... 40
Oregon..................................................... 41
Pennsylvania............................................... 42
Puerto Rico................................................ 72
Rhode Island............................................... 44
South Carolina............................................. 45
South Dakota............................................... 46
Tennessee.................................................. 47
Texas...................................................... 48
Utah....................................................... 49
Vermont.................................................... 50
Virgin Islands............................................. 78
Virginia................................................... 51
Washington................................................. 53
West Virginia.............................................. 54
Wisconsin.................................................. 55
Wyoming.................................................... 56
------------------------------------------------------------------------
2. County FIPS Code: Enter the three-digit code established by
the National Institute of Standards and Technology for
classification of counties and county equivalents. Codes were
devised by listing counties alphabetically and assigning
sequentially odd integers; e.g., 001, 003, 005, * * * A complete
list of codes is available in Appendix F of the TANF Sampling and
Statistical Methods Manual.
3. Reporting Month: Enter the four-digit year and two-digit
month code that identifies the year and month for which the data are
being reported.
4. Stratum:
Guidance: All families that receive assistance under separate
State Programs (i.e, State MOE families) and are selected in the
sample from the same stratum must be assigned the same stratum code.
Valid stratum codes may range from ``00'' to ``99.'' States with
stratified samples should provide the ACF Regional Office with a
listing of the numeric codes utilized to identify any
stratification. If a State opts to provide data for its entire
caseload, enter the same stratum code (any two-digit number) for
each State MOE family.
Instruction: Enter the two-digit stratum code.
Family-Level Data
Definition: For reporting purposes, the State MOE family means
(a) all individuals receiving assistance as part of a family under
the Separate State Programs; and (b) the following additional
persons living in the household, if not included under (a) above:
(1) Parent(s) or caretaker relative(s) of any minor child
receiving assistance;
(2) Minor siblings (including unborn children) of any child
receiving assistance; and
(3) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
5. Case Number--Separate State MOE:
Guidance: If the case number is less than the allowable eleven
characters, a State may use lead zeros to fill in the number.
Instruction: Enter the number assigned by the State agency to
uniquely identify the case.
6. ZIP Code: Enter the five-digit ZIP code for the State MOE
family's place of residence for the reporting month.
7. Disposition:
Guidance: A family that did not receive any assistance for the
reporting month but was listed on the monthly sample frame for the
reporting month is ``listed in error.'' States are to complete data
collection for all sampled cases that are not listed in error.
Instruction: Enter one of the following codes for each State MOE
sampled case.
1 = Data collection completed
2 = Not subject to data collection/listed in error
8. Number of Family Members: Enter two digits that represent the
number of members in the family receiving assistance under the
Separate State Programs.
9. Type of Family for Work Participation:
Guidance: This data element will be used to identify the type of
family (i.e., the number of parents or care-taker relatives in the
family receiving assistance) in order to calculate the all family
and the two-parent family work participation rates. A family with a
minor child head-of-household should be coded as either a one-parent
family or two-parent family, whichever is appropriate. A family that
includes a disabled parent will not be considered a two-parent
family for purposes of the work participation rate. It is up to the
State to consider whether a family with a non-custodial parent is a
one-parent or two-parent family for the purposes of calculating the
work participation rate.
Instruction: Enter the one-digit code that represents the type
of family for purposes of calculating the work participation rates.
1=Single-Parent Family for participation rate purposes
2=Two-Parent Family for participation rate purposes
3=No Parent Family for participation rate purposes (does not include
parents, care-taker relatives, or minor child heads-of-household
10. Has the family received assistance under a State (Tribal)
TANF Program within the past six months: If the State MOE family has
received assistance under a State (Tribal) TANF Program within the
past six months, enter code ``1.'' Otherwise, enter ``2.''
1=Yes, family has received assistance under a State (Tribal) TANF
program within the past six months.
2=No
11. Receives Subsidized Housing:
Guidance: Subsidized housing refers to housing for which money
was paid by the Federal, State, or Local government or through a
private social service agency to the family or to the owner of the
housing to assist the family in paying rent. Two families sharing
living expenses does not constitute subsidized housing.
Instruction: Enter the one-digit code that indicates whether or
not the State MOE
[[Page 62217]]
family received subsidized housing for the reporting month.
1=Public housing
2=HUD rent subsidy
3=Other rent subsidy
4=No Housing subsidy
12. Receives Medical Assistance: Enter ``1'' if, for the
reporting month, any State MOE family member is eligible to receive
(i.e., a certified recipient of) medical assistance under the State
plan approved under Title XIX or ``2'' if no State MOE family member
is eligible to receive medical assistance under the State plan
approved under Title XIX.
1=Yes, receives Medical Assistance
2=No
13. Receives Food Stamps: If the State MOE family received Food
Stamps for the reporting month, enter the one-digit code indicating
the type of Food Stamp assistance. Otherwise, enter ``4.''
1=Yes, Food Stamp coupon allotment
2=Yes, cash
3=Yes, wage subsidy
4=No
14. Amount of Food Stamp Assistance:
Guidance: For situations in which the Food Stamp household
differs from the State MOE family, code this element in a manner
that most accurately reflects the resources available to the State
MOE family.
Instruction: Enter the State MOE eligible family's authorized
dollar amount of Food Stamps assistance for the reporting month. If
the State MOE family did not receive any food stamps for the
reporting month, enter ``0.''
15. Receives Subsidized Child Care:
Guidance: For the purpose of coding this data element,
subsidized child care funded under the Child Care and Development
Fund with funds that were transferred from the State TANF Program
should be coded as ``2.''
Instruction: If the State MOE family receives subsidized child
care for the reporting month, enter code ``1'', ``2'', ``3'', or
``4'', whichever is appropriate. Otherwise, enter code ``5.''
1=Yes, funded under the Separate State Programs
2=Yes, funded under the Child Care and Development Fund
3=Yes, funded under other Federal program (e.g., TANF or SSBG)
4=Yes, funded under other State or local program 5=No
16. Amount of Subsidized Child Care:
Guidance: Subsidized child care means a grant by the Federal,
State or Local government to a parent (or care-taker relative) to
support, in part or whole, the cost of child care services provided
by an eligible provider to an eligible child. The grant may be paid
directly to the parent (or care-taker relative) or to a child care
provider on behalf of the parent (or care-taker relative).
Instruction: Enter the dollar amount of subsidized child care
that the State MOE family has received for services in the reporting
month. If State MOE family did not receive any subsidized child
care, enter ``0'' as the amount.
17. Amount of Child Care Disregard: Enter the total dollar
amount of the State MOE family's actual disregard allowed for child
care expenses.
18. Amount of Child Support: Enter the total dollar value of
child support received on behalf of the State MOE family in the
reporting month, which includes arrearages, recoupments, and pass-
through amounts whether paid to the State or the family.
19. Amount of the Families' Cash Resources: Enter the total
dollar amount of the State MOE family's cash resources for the
reporting month.
Amount of Assistance Received and the Number of Months that the
Family Has Received Each Type of Assistance Under the Separate
State Programs
Guidance: Assistance means every form of support provided to
State MOE families under the Separate State Program (including child
care, work subsidies, and allowances to meet living expenses),
except for the following:
(1) services that have no direct monetary value to an individual
family and that do not involve implicit or explicit income support,
such as counseling, case management, peer support and employment
services that do not involve subsidies or other forms of income
support; and
(2) one-time, short-term assistance (i.e., assistance paid
within a 30-day period, no more than once in any twelve-month
period, to meet needs that do not extend beyond a 90-day period,
such as automobile repair to retain employment and avoid welfare
receipt and appliance repair to maintain living arrangements).
Instruction: For each type of assistance provided under the
State's MOE Program, enter the dollar amount of assistance that the
State MOE family received or that was paid on behalf of the State
MOE family for the reporting month and the number of months that the
State MOE family has received assistance under the State's Separate
MOE programs. If, for a ``type of assistance'', no dollar amount of
assistance was provided during the reporting month, enter ``0'' as
the amount. If, for a ``type of assistance'', no assistance has ever
been received by the TANF eligible family, enter ``0'' as the number
of months of assistance.
20. Cash and Cash Equivalents:
A. Amount
B. Number of Months
21. Educational:
A. Amount
B. Number of Months
22. Employment Services:
A. Amount
B. Number of Months
23. Work Subsidies:
A. Amount
B. Number of Months
24. Child Care:
Guidance: Include only the child care funded directly by the
Separate State Programs. Do not include child care funded under the
TANF Program or the Child Care and Development Fund, even though
some of the funds were transferred to the CCDF from the State TANF
program.
A. Amount
B. Number of Months
25. Transportation:
A. Amount
B. Number of Months
26. Other Supportive Services and Special Needs, including
Assistance with Meeting Home Heating and Air Conditioning Costs:
A. Amount
B. Number of Months
27. Transitional Services:
A. Amount
B. Number of Months
28. Contributions to Individual Development Accounts:
A. Amount
B. Number of Months
29. Other:
A. Amount
B. Number of Months
Reason for and Amount of Reduction in Assistance
For each reason for which the State MOE family received a
reduction in assistance for the reporting month, enter the dollar
amount of the reduction in assistance. Otherwise, enter ``0.''
30. Work Requirements Sanction
31. Family Sanction for an Adult with No High School Diploma or
Equivalent
32. Sanction for Teen Parent not Attending School
33. Non-Cooperation with Child Support
34. Failure to Comply with an Individual Responsibility Plan
35. Other Sanction
36. Recoupment of Prior Overpayment
37. Family Cap
38. Reduction Based on Family Moving into State From Another
State
39. Reduction Based on Length of Receipt of Assistance
40. Other, Non-Sanction
41. Waiver Evaluation Research Group
Guidance: In connection with waivers, approved to allow States
to implement Welfare Reform Demonstrations, a State assigned a
portion of its cases to a research group consisting of a control
group (subject to the provisions of the regular, statutory AFDC
program as defined by prior law) and an experimental group (subject
to the provisions of the regular, statutory AFDC program as defined
by prior law as modified by waivers). A state may choose, for the
purpose of completing impact analyses, to continue a research group
and thus maintain applicable control and experimental group
treatment policies as they were implemented under their welfare
reform demonstration (including prior law policies not modified by
waivers), even if such policies are inconsistent with TANF. However,
cases assigned to a non-experimental treatment group (i.e., not part
of the research group) may not apply prior law policies inconsistent
with TANF unless such policies are specifically linked to approved
waivers. Where a state continues waivers, but does not continue a
research group for impact evaluation purposes, all cases in the
demonstration site will be treated as non-experimental treatment
group cases regardless of their original assignment as control or
experimental cases.
[[Page 62218]]
Instruction: Enter the one-digit code that indicates the
family's waiver evaluation case status.
Blank=Not applicable (no waivers apply to this case)
1=Control group (for impact analysis purposes)
2=Experimental group
3=Non-experimental treatment group
Person-Level Data
Person-level data has two sections: the adult and minor child
head-of-household characteristic section and the child
characteristics section. Section 419 of the Act defines adult and
minor child. An adult is an individual that is not a minor child. A
minor child is an individual who (a) has not attained 18 years of
age or (b) has not attained 19 years of age and is a full-time
student in a secondary school (or in the equivalent level of
vocational or technical training.)
Adult and Minor Child Head-of-Household Characteristics
This section allows for coding up to six adults (or a minor
child who is either a head-of-household or married to the head-of-
household and up to five adults) in the State MOE family. A minor
child who is either a head-of-household or married to the head-of-
household should be coded as an adult and will hereafter be referred
to as a ``minor child head-of-household.'' For each adult (or minor
child head-of-household) in the State MOE family, complete the adult
characteristics section.
If there are more than six adults (or a minor child head-of-
household and five adults) in the State MOE family, use the
following order to identify the persons to be coded: (1) the head-
of-household; (2) parents in the eligible family receiving
assistance; (3) other adults in the eligible family receiving
assistance; (4) Parents not in the eligible family receiving
assistance; (5) caretaker relatives not in the eligible family
receiving assistance; and (6) other persons, whose income or
resources count in determining eligibility for or amount of
assistance of the eligible family receiving assistance, in
descending order the person with the most income to the person with
least income.
42. Family Affiliation:
Guidance: This data element is used both for (1) the adult or minor
child head-of-household section and (2) the minor child section. The
same coding schemes are used in both sections. Some of these codes may
not be applicable for adults.
Instruction: Enter the one-digit code that shows the adult's (or
minor child head-of-household's) relation to the eligible family
receiving assistance.
1= Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2= Parent of minor child in the eligible family receiving assistance
3= Caretaker relative of minor child in the eligible family
receiving assistance
4= Minor sibling of child in the eligible family receiving
assistance
5= Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance
43. Noncustodial Parent Indicator:
Guidance: A noncustodial parent means a parent who does not live
with his/her child(ren). A noncustodial parent who lives in the
State, may participate in work activities funded under the Separate
State Programs. If the noncustodial parent participates in work
activities, (s)he must be a member of the eligible family receiving
assistance and be reported as part of the State MOE family.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) noncustodial parent status.
1= Yes, a noncustodial parent
2= No, not a noncustodial parent
44. Date of Birth: Enter the eight-digit code for date of birth
for the adult (or minor child head-of-household) under the Separate
State Program in the format YYYYMMDD.
45. Social Security Number: Enter the nine-digit Social Security
Number for the adult (or minor child head-of-household) in the
format nnnnnnnnn.
46. Race: Enter the one-digit code for the race of the adult (or
minor child head-of-household).
1= White, not of Hispanic origin
2= Black, not of Hispanic origin
3= Hispanic
4= American Indian or Alaska Native
5= Asian or Pacific Islander
6= Other
9= Unknown
47. Gender: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) gender.
1= Male
2= Female
Receives Disability Benefits
The Act specifies five types of disability benefits. For each
type of disability benefits, enter the one-digit code that indicates
whether or not the adult (or minor child head-of-household) received
the benefit.
48. Receives Federal Disability Insurance Benefits: Enter the
one-digit code that indicates the adult (or minor child head-of-
household) received Federal disability insurance benefits for the
reporting month.
1=Yes, received benefits based on Federal disability status
2=No
49. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the adult (or minor child head-of-
household) received benefits based on Federal disability status for
the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
50. Receives Aid Under Title XIV-APDT: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XIV for the reporting
month.
1=Yes, received aid under Title XIV-APDT
2=No
51. Receives Aid Under Title XVI-AABD: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-AABD for the
reporting month.
1=Yes, received aid under Title XVI-AABD
2=No
52. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-SSI for the
reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
53. Marital Status: Enter the one-digit code for the adult's (or
minor child head-of-household's) marital status for the reporting
month.
1=Single, never married
2=Married, living together
3=Married, but separated
4=Widowed
5=Divorced
54. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the two-digit code that shows the adult's (or
minor child head-of-household's) relationship (including by
marriage) to the head of the household, as defined by the Food Stamp
Program or as determined by the State, (i.e., the relationship to
the principal person of each person living in the household.) If a
minor child head-of-household, enter code ``01.''
01=Head of household
02=Spouse
03=Parent
04=Daughter or son (Natural or adoptive)
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
55. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the State MOE family.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts; the highest level
of education attained and the highest degree attained.
56. Highest Level of Education Attained: Enter the two-digit
code to indicate the
[[Page 62219]]
highest level of education attained by the adult (or minor child
head-of-household).
00=No formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
57. Highest Degree Attained: If the adult (or minor child head-
of-household) has a degree(s), enter the one-digit code that
indicates the highest degree attained. Otherwise, leave the field
blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
58. Citizenship/Alienage:
Guidance: As described in TANF-ACF-PA-97-1, States have the
flexibility to: (1) use State MOE funds to serve ``qualified''
aliens, including those who enter on or after August 22, 1996; (2)
use Federal TANF funds to serve ``qualified'' aliens who arrived
prior to the enactment of the PRWORA on August 22, 1996 [such aliens
who arrived after enactment are barred from receiving Federal TANF
funds for five years from the date of entry, except for certain
aliens such as refugees and asylees]; (3) use State MOE funds to
serve legal aliens who are not ``qualified''; and (4) use, under
section 411(d) of PRWORA, State MOE funds to serve aliens who are
not lawfully present in the U.S., but only through enactment of a
State law, after the date of PRWORA enactment, which ``affirmatively
provides'' for such benefits.
Instruction: Enter the two-digit code that indicates the adult's
(or minor child head-of-household's) citizenship/alienage.
01=U.S. citizen, including naturalized citizens
02=Permanent resident who has worked forty qualifying quarters;
alien who is a veteran with an honorable discharge from the U.S.
Armed Forces or is on active duty in the U.S. Armed Forces, or
spouse or unmarried dependent children of such alien
03=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. five years or less
04=Qualified alien granted political asylum five or less years ago;
qualified alien granted a withholding of deportation by INS (under
sec. 243(h) or sec. 241(b)(3) of the INA) five or less years ago.
05=Qualified alien, (including immigrant accorded permanent resident
status (``green card''), parolee granted parole for at least one
year under sec. 212(d)(5) of the INA, and certain battered aliens
and their children who are determined to be qualified), who arrived
in the U.S. prior to enactment (August 22, 1996) or who arrived in
the U.S. on or after enactment and has resided in the U.S. more than
five years
06=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. more than five years
07=Qualified alien granted political asylum or granted withholding
of deportation by INS (under sec. 243(h) or sec. 241(b)(3) of the
INA) more than five years ago;
08=Qualified alien (other than a refugee, Cuban or Haitian entrant,
Amerasian immigrant, asylee, or alien whose deportation has been
withheld under sec. 243(h) or sec. 241(b)(3) of the INA) who arrived
in the U.S. on or after enactment and has resided in the U.S. less
than 5 years.
09=Any alien who is not a qualified alien.
99=Unknown
59. Employment Status: Enter the one-digit code that indicates
the adult's (or minor child head-of-household's) employment status.
1=Employed
2=Unemployed, looking for work
3=Not in labor force (i.e, unemployed, not looking for work,
includes discouraged workers)
60. Work Participation Status:
Guidance: Disregarded from the participation rate means the
State MOE family is not included in the calculation of the work
participation rate.
Exempt means that the individual will not be penalized for
failure to engage in work (i.e., good cause exception); however, the
State MOE family is included in the calculation of the work
participation rate.
Instruction: Enter the two-digit code that indicates the adult's
(or minor child head-of-household's) work participation status.
01=Disregarded from participation rate, single custodial parent with
child under 12 months
02=Disregarded from participation rate because all of the following
apply: required to participate, but not participating, sanctioned
for the reporting month, but not sanctioned for more than 3 months
within the preceding 12-month period
03=Disregarded, family is part of an ongoing research evaluation (as
a member of a control group or experimental treatment group)
approved under section 1115 of the Social Security Act
04=Disregarded from participation rate, is participating in a Tribal
Work Program, and State has opted to exclude all Tribal Work Program
participants from its Work Participation rate
05=Exempt, single custodial parent with child under age 6 and
unavailability of child care
06=Exempt, disabled (not using an extended definition under a State
waiver)
07=Exempt, caring for a severely disabled child (not using an
extended definition under a State waiver)
08=A temporary good cause domestic violence waiver (not using an
extended definition under a State waiver)
09=Exempt, State waiver
10=Exempt, other
11=Required to participate, but not participating, sanctioned for
the reporting month and sanctioned for more than 3 months within the
preceding 12-month period.
12=Required to participate, but not participating, sanctioned for
the reporting month but not sanctioned for more than 3 months within
the preceding 12-month period
13=Required to participate, but not participating and not sanctioned
for the reporting month
14=Deemed engaged in work, single teen head-of-household or married
teen who maintains satisfactory school attendance or is
participating in education directly related to employment for an
average of at least 20 hours per week during the reporting month
15=Deemed engaged in work, parent or relative (who is the only
parent or caretaker relative in the family) with child under age 6
and parent engaged in work activities for at least 20 hours per week
16=Required to participate, participating but not meeting minimum
participation requirements
17=Required to participate, and meeting minimum participation
requirements
99=Not applicable (e.g., person in household, but not in eligible
family receiving assistance)
Adult Work Participation Activities
Guidance: To calculate the average number of hours per week of
participation in a work activity, add the number of hours of
participation across all weeks in the month and divide by the number
of weeks in the month. Round to the nearest whole number.
Some weeks have days in more than one month. Include such a week
in the calculation for the month that contains the most days of the
week (e.g., the week of July 27-August 2, 1997 would be included in
the July calculation). Acceptable alternatives to this approach must
account for all weeks in the fiscal year. One acceptable alternative
is to include the week in the calculation for the month in which the
Friday falls (i.e., the JOBS approach). A second acceptable
alternative is to count each month as having 4.33 weeks.
During the first or last month of any spell of assistance, a
family may happen to receive assistance for only part of the month.
If a family receives assistance for only part of a month, the State
(Tribe) may count it as a month of participation if an adult (or
minor child head-of-household) in the family (both adults, if they
are both required to work) is engaged in work for the minimum
average number of hours for the full week(s) that the family
receives assistance in that month.
Instruction: For each work activity in which the adult (or minor
child head-of-household) participated during the reporting month,
enter the average number of hours per week of participation. For
each work activity in which the adult (or minor child head-of-
household) did not participate, enter zero as the average number of
hours per week of participation.
61. Unsubsidized Employment
[[Page 62220]]
62. Subsidized Private Sector Employment
63. Subsidized Public Sector Employment
64. Work Experience
65. On-the-job Training
66. Job Search and Job Readiness Assistance
Instruction: Do not count hours of participation in job search
and job readiness training beyond the TANF limit where allowed by
waivers in this item. Instead count the hours of participation
beyond the TANF limit in the item ``Additional Work Activities
Permitted Under Waiver Demonstration.'' Otherwise, count the
additional hours of work participation under the work activity
``Other Work Activities.''
67. Community Service Programs
68. Vocational Educational Training
Instruction: Do not count hours of participation in vocational
educational training beyond the TANF 12 month life-time limit where
allowed by waivers in this item. Instead count the hours of
participation beyond the TANF limit in the item ``Additional Work
Activities Permitted Under Waiver Demonstration.'' Otherwise, count
the additional hours of work participation under the work activity
``Other Work Activities.''
69. Job Skills Training Directly Related to Employment
70. Education Directly Related to Employment for Individuals
with no High School Diploma or Certificate of High School
Equivalency
71. Satisfactory School Attendance for Individuals with No High
School Diploma or Certificate of High School Equivalency
72. Providing Child Care Services to an Individual who is
Participating in a Community Service Program
73. Additional Work Activities Permitted Under Waiver
Demonstration
Instruction: Hours of participation in job search and job
readiness training beyond the TANF limits as permitted by State
waiver should be counted in this item. Otherwise, count such
additional hours of work participation under the work activity
``Other Work Activities.''
74. Other Work Activities
75. Required Hours of Work Under Waiver Demonstration:
Guidance: In approving waivers, ACF specified hours of
participation in several instances. One type of hour change in the
welfare reform demonstrations, was the recognition, as part of a
change in work activities and/or exemptions, that the hours
individuals worked should be consistent with their abilities and in
compliance with an employability or personal responsibility plan or
other criteria in accordance to waiver terms and conditions. As the
hour requirement in this case was integral and necessary to achieve
the waiver purpose of appropriately requiring work activities to
move individuals to self-sufficiency, the State could show
inconsistency and could use the waiver hours instead of the hours in
section 407. The waiver that increase work hour requirements would
not be deemed inconsistent.
Instruction: If applicable, enter the two-digit number that
represents the average number of hours per week of work
participation required of the individual as described in the
demonstration terms or in an employability or personal
responsibility plan. Otherwise, leave blank or enter ``00.''
Amount of Earned Income
Earned income has two categories. For each category of earned
income, enter the dollar amount of the adult's (or minor child head-
of-household's) earned income.
76. Earned Income Tax Credit (EITC):
Guidance: Earned Income Tax Credit is a refundable tax credit
for families and dependent children. EITC payments are received
either monthly (as advance payment through the employer), annually
(as a refund from IRS), or both.
Instruction: Enter the total dollar amount of the earned income
tax credit actually received, whether received as an advance payment
or a single payment (e.g., tax refund), by the adult (minor child
head-of-household) during the reporting month. If the State counts
the EITC as a resource, report it here as earned income in the month
received. If the State assumes an advance payment is applied for and
obtained, only report what is actually received for this item.
77. Wages, Salaries, and Other Earnings:
Amount of Unearned Income
Unearned income has four categories. For each category of
unearned income, enter the dollar amount of the adult's (minor child
head-of-household's) unearned income.
78. Social Security: Enter the dollar amount of Social Security
that the adult in the State MOE family has received for the
reporting month.
79. SSI: Enter the dollar amount of SSI that the adult in the
State MOE family has received for the reporting month.
80. Worker's Compensation: Enter the dollar amount of Worker's
Compensation that the adult in the State MOE family has received for
the reporting month.
81. Other Unearned Income:
Guidance: Other unearned income includes RSDI benefits, Veterans
benefits, Unemployment Compensation, other government benefits,
housing subsidy, contribution/income-in-kind, deemed income, Public
Assistance or General Assistance, educational grants/scholarships/
loans, other. Do not include Social Security, SSI, Worker's
Compensation, value of Food Stamps assistance, the amount of the
Child Care subsidy, and the amount of Child Support.
Instruction: Enter the dollar amount of other unearned income
that the adult in the State MOE family has received for the
reporting month.
Child Characteristics
This section allows for coding up to ten children in the State
MOE family. A minor child head-of-household should be coded as an
adult, not as a child. The youngest child should be coded as the
first child in the family, the second youngest child as the second
child, and so on. If the needs of an unborn child are included in
the amount of assistance provided to the family, code the unborn
child as one of the children. Do this by entering the Date-of-Birth
as ``99999999'' and leave the other Child Characteristics fields
blank.
If there are more than ten children in the State MOE family, use
the following order to identify the persons to be coded: (1)
children in the eligible family receiving assistance in order from
youngest to oldest; (2) minor siblings of child in the eligible
family receiving assistance from youngest to oldest; and (3) any
other children.
82. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the one-digit code that shows the Child's
relation to the eligible family receiving assistance.
1=Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving assistance
3=Caretaker relative of minor child in the eligible family receiving
assistance
4=Minor sibling of child in the eligible family receiving assistance
5=Person whose income is considered in determining eligibility for
and amount of assistance for the eligible family receiving
assistance
83. Date of Birth: Enter the eight-digit code for date of birth
for this child under the Separate State Programs in the format
YYYYMMDD.
84. Social Security Number: Enter the nine-digit Social Security
Number for the child in the format nnnnnnnnn.
85. Race: Enter the one-digit code for the race of the State MOE
child.
1=White, not of Hispanic origin
2=Black, not of Hispanic origin
3=Hispanic
4=American Indian or Alaska Native
5=Asian or Pacific Islander
6=Other
9=Unknown
86. Gender: Enter the one-digit code that indicates the child's
gender.
1=Male
2=Female
Receives Disability Benefits
The Act specifies five types of disability benefits. Two of
these types of disability benefits are applicable to children. For
each type of disability benefits, enter the one-digit code that
indicates whether or not the child received the benefit.
87. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the child received benefits based
on Federal disability status for the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
88. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the child received aid under a State plan
[[Page 62221]]
approved under Title XVI-SSI for the reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
89. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the two-digit code that shows the child's
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or, principal person of each
person living in the household.
01=Head of household
02=Spouse
03=Parent
04=Daughter or son (Natural or adoptive)
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
90. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the State MOE family.
Instruction: Enter the one-digit code that indicates the child's
teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts; the highest level
of education attained and the highest degree attained.
91. Highest Level of Education Attained: Enter the two-digit
code to indicate the highest level of education attained by the
child.
00=No formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
92. Highest Degree Attained:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: If the child has a degree(s), enter the one-digit
code that indicates the child's highest degree attained. Otherwise,
leave the field blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
9=Not applicable
93. Citizenship/Alienage: Enter the two-digit code that
indicates the child's citizenship/alienage. The coding for this data
element is the same as for item number 52, on page 548.
94. Cooperation with Child Support: Enter the one-digit code
that indicates whether this child's parent has cooperated with child
support for this child.
1=Yes, parent cooperates with child support
2=No
3=Not applicable
Amount of Unearned Income
Unearned income has two categories. For each category of
unearned income, enter the dollar amount of the child's unearned
income.
95. SSI: Enter the dollar amount of SSI that the child in the
State MOE family has received for the reporting month.
96. Other Unearned Income: Enter the dollar amount of other
unearned income that the child in the State MOE family has received
for the reporting month.
Appendix F--TANF MOE Data Report--Section Two Disaggregated Data
Collection for Families No Longer Receiving Assistance Under the
Separate State Programs
Instructions and Definitions
General Instruction: The State agency should collect and report
data for each data element shown below.
1. State FIPS Code: Enter your two-digit State code from the
following listing. These codes are the standard codes used by the
National Institute of Standards and Technology.
------------------------------------------------------------------------
State Code
------------------------------------------------------------------------
Alabama.................................................... 01
Alaska..................................................... 02
American Samoa............................................. 60
Arizona.................................................... 04
Arkansas................................................... 05
California................................................. 06
Colorado................................................... 08
Connecticut................................................ 09
Delaware................................................... 10
District of Columbia....................................... 11
Florida.................................................... 12
Georgia.................................................... 13
Guam....................................................... 66
Hawaii..................................................... 15
Idaho...................................................... 16
Illinois................................................... 17
Indiana.................................................... 18
Iowa....................................................... 19
Kansas..................................................... 20
Kentucky................................................... 21
Louisiana.................................................. 22
Maine...................................................... 23
Maryland................................................... 24
Massachusetts.............................................. 25
Michigan................................................... 26
Minnesota.................................................. 27
Mississippi................................................ 28
Missouri................................................... 29
Montana.................................................... 30
Nebraska................................................... 31
Nevada..................................................... 32
New Hampshire.............................................. 33
New Jersey................................................. 34
New Mexico................................................. 35
New York................................................... 36
North Carolina............................................. 37
North Dakota............................................... 38
Ohio....................................................... 39
Oklahoma................................................... 40
Oregon..................................................... 41
Pennsylvania............................................... 42
Puerto Rico................................................ 72
Rhode Island............................................... 44
South Carolina............................................. 45
South Dakota............................................... 46
Tennessee.................................................. 47
Texas...................................................... 48
Utah....................................................... 49
Vermont.................................................... 50
Virgin Islands............................................. 78
Virginia................................................... 51
Washington................................................. 53
West Virginia.............................................. 54
Wisconsin.................................................. 55
Wyoming.................................................... 56
------------------------------------------------------------------------
2. County FIPS Code: Enter the three-digit code established by
the National Institute of Standards and Technology for
classification of counties and county equivalents. Codes were
devised by listing counties alphabetically and assigning
sequentially odd integers; e.g., 001, 003, 005, . . . . A complete
list of codes is available in Appendix F of the TANF Sampling and
Statistical Methods Manual.
3. Reporting Month: Enter the four-digit year and two-digit
month code that identifies the year and month for which the data are
being reported.
4. Stratum:
Guidance: All families that receive assistance under separate
State Programs (i.e., State MOE families) and are selected in the
sample from the same stratum must be assigned the same stratum code.
Valid stratum codes may range from ``00'' to ``99.'' States with
stratified samples should provide the ACF Regional Office with a
listing of the numeric codes utilized to identify any
stratification. If a State opts to provide data for its entire
caseload, enter the same stratum code (any two-digit number) for
each State MOE family.
Instruction: Enter the two-digit stratum code.
Family-Level Data
Definition: For reporting purposes, the State MOE family means
(a) all individuals receiving assistance as part of a family under
the Separate State Programs; and (b) the following additional
persons living in the household, if not included under (a) above:
(1) Parent(s) or caretaker relative(s) of any minor child
receiving assistance;
(2) Minor siblings (including unborn children) of any child
receiving assistance; and
(3) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
5. Case Number:
Guidance: If the case number is less than the allowableeleven
characters, a State may use lead zeros to fill in thenumber.
[[Page 62222]]
Instruction: Enter the number that was assigned by theState
agency to uniquely identify the State MOE family.
6. ZIP Code: Enter the five-digit ZIP code for the family's
place of residence for the reporting month.
7. Disposition: Enter one of the following codes for each State
MOE family.
1=Data collection completed
2=Not subject to data collection/listed in error
8. Reason for Closure:
Guidance: A closed case is a family whose assistance was
terminated for the reporting month, but received assistance under
the State's MOE Program in the prior month. A temporally suspended
case is not a closed case. If there is more than one applicable
reason for closure, determine the principal (i.e., most relevant)
reason. If two or more reasons are equally relevant, use the reason
with the lowest numeric code.
Instruction: Enter the one-digit code that indicates the reason
for the State MOE family no longer receiving assistance.
1=Employment
2=Marriage
3=Five-Year Time Limit
4=Sanction
5=State policy
6=Minor child absent from the home for a significant time period
7=Transfer to State TANF Program
8=Other
9. Number of Family Members: Enter two digits that represent the
number of members in the State MOE family, which received assistance
under the Separate State Programs.
10. Receives Subsidized Housing:
Guidance: Subsidized housing refers to housing for which money
was paid by the Federal, State, or Local government or through a
private social service agency to the family or to the owner of the
housing to assist the family in paying rent. Two families sharing
living expenses does not constitute subsidized housing.
Instruction: Enter the one-digit code that indicates whether or
not the State MOE family received subsidized housing for the sample
month.
1=Public housing
2=HUD rent subsidy
3=Other rent subsidy
4=No housing subsidy
11. Receives Medical Assistance: Enter ``1'' if, for the sample
month, any State MOE family member is eligible to receive (i.e., a
certified recipient of) medical assistance under the State plan
approved under Title XIX or ``2'' if no State MOE family member is
eligible to receive medical assistance under the State plan approved
under Title XIX.
1=Yes, receives medical assistance
2=No
12. Receives Food Stamps: If the State MOE family received Food
Stamps for the sample month, enter the one-digit code indicating the
type of Food Stamp assistance. Otherwise, enter ``4.''
1=Yes, Food Stamp coupon allotment
2=Yes, cash
3=Yes, wage subsidy
4=No
13. Amount of Food Stamp Assistance:
Guidance: For situations in which the Food Stamp household
differs from the TANF family, code this element in a manner that
most accurately reflects the resources available to the TANF family.
Instruction: Enter the State MOE family's authorized dollar
amount of Food Stamp assistance for the reporting month. If the
State MOE family did not receive any food stamps for the reporting
month, enter ``0.''
14. Receives Subsidized Child Care:
Guidance: For the purpose of coding this data element, ubsidized
child care funded under the Child Care and Development Fund with
funds that were transferred from the State TANF Program should be
coded as ``2.''
Instruction: If the State MOE family receives subsidized child
care for the reporting month, enter code ``1'', ``2'', ``3'', or
``4'', whichever is appropriate. Otherwise, enter code ``5.''
1=Yes, funded under the Separate State Programs
2=Yes, funded under the Child Care and Development Fund
3=Yes, funded under other Federal program (e.g., TANF or SSBG)
4=Yes, funded under other State or local program
5=No
15. Amount of Subsidized Child Care:
Guidance: Subsidized child care means a grant by the Federal,
State or Local government to a parent (or care-taker relative) to
support, in part or whole, the cost of child care services provided
by an eligible provider to an eligible child. The grant may be paid
directly to the parent (or care-taker relative) or to a child care
provider on behalf of the parent (or care-taker relative).
Instruction: Enter the dollar amount of subsidized child care
that the State MOE family has received for services in the reporting
month. If the State MOE family did not receive any subsidized child
care for the reporting month, enter ``0.''
Person-Level Data
Person-level data has two sections: the adult and minor child
head-of-household characteristic section and the child
characteristics section. Section 419 of the Act defines adult and
minor child. An adult is an individual that is not a minor child. A
minor child is an individual who (a) has not attained 18 years of
age or (b) has not attained 19 years of age and is a full-time
student in a secondary school (or in the equivalent level of
vocational or technical training.)
Adult and Minor Child Head-of-Household Characteristics
This section allows for coding up to six adults (or a minor
child head-of-household and up to five adults) in the State MOE
family. A minor child head-of-Household should be coded as an adult.
For each adult (or minor child head-of-household) in the State MOE
family, complete the adult characteristics section.
If there are more than six adults (or a minor child head-of-
household and five adults) in the State MOE family, use the
following order to identify the persons to be coded: (1) the head-
of-household; (2) parents in the eligible family receiving
assistance; (3) other adults in the eligible family receiving
assistance; (4) Parents not in the eligible family receiving
assistance; (5) caretaker relatives not in the eligible family
receiving assistance; and (6) other persons, whose income or
resources count in determining eligibility for or amount of
assistance of the eligible family receiving assistance, in
descending order the person with the most income to the person with
least income.
16. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the one-digit code that shows the adult's
(minor child head-of-household's) relation to the eligible family
receiving assistance.
1=Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving assistance
3=Caretaker relative of minor child in the eligible family receiving
assistance
4=Minor sibling of child in the eligible family receiving assistance
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance
17. Date of Birth: Enter the eight-digit code for date of birth
for this adult (or minor child head-of-household) under Separate
State Programs in the format YYYYMMDD.
18. Social Security Number: Enter the nine-digit Social Security
Number for the adult (or minor child head-of-household) in the
format nnnnnnnnn.
19. Race: Enter the one-digit code for the race of the State MOE
adult (or minor child head-of-household).
1=White, not of Hispanic origin
2=Black, not of Hispanic origin
3=Hispanic
4=American Indian or Alaska Native
5=Asian or Pacific Islander
6=Other
9=Unknown
20. Gender: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) gender.
1=Male
2=Female
Receives Disability Benefits
The Act specifies five types of disability benefits. For each
type of disability benefits, enter the one-digit code that indicates
whether or not the adult (or minor child head-of-household) received
the benefit.
21. Receives Federal Disability Insurance Benefits: Enter the
one-digit code that indicates the adult (or minor child head-of-
household) received Federal disability insurance benefits for the
reporting month.
1=Yes, received Federal disability insurance
2=No
[[Page 62223]]
22. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the adult (or minor child head-of-
household) received benefits based on Federal disability status for
the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
23. Receives Aid Under Title XIV-APDT: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XIV for the reporting
month.
1=Yes, received aid under Title XIV-APDT
2=No
24. Receives Aid Under Title XVI-AABD: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-AABD for the
reporting month.
1=Yes, received aid under Title XVI-AABD
2=No
25. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the adult (or minor child head-of-household) received
aid under a State plan approved under Title XVI-SSI for the
reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
26. Marital Status: Enter the one-digit code for the marital
status of the adult (or minor child head-of-household).
1=Single, never married
2=Married, living together
3=Married, but separated
4=Widowed
5=Divorced
27. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the two-digit code that shows the adult's (or
minor child head-of-household's) relationship (including by
marriage) to the head of the household, as defined by the Food Stamp
Program or, principal person of each person living in the household.
If a minor child head-of-household, enter code ``01.''
01=Head of household
02=Spouse
03=Parent
04=Daughter or son
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
28. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the State MOE family.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts: the highest level
of education attained and the highest degree attained.
29. Highest Level of Education Attained: Enter the two-digit
code to indicate the highest level of education attained by the
adult (or minor child head-of-household).
00=No formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
30. Highest Degree Attained: If the adult (or minor child head-
of-household) has a degree(s), enter the one-digit code that
indicates the adult's (or minor child head-of-household's) highest
degree attained. Otherwise, leave the field blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
31. Citizenship/Alienage:
Guidance: As described in TANF-ACF-PA-97-1, States have the
flexibility to: (1) use State MOE funds to serve ``qualified''
aliens, including those who enter on or after August 22, 1996; (2)
use Federal TANF funds to serve ``qualified'' aliens who arrived
prior to the enactment of the PRWORA on August 22, 1996 [such aliens
who arrived after enactment are barred from receiving Federal TANF
funds for five years from the date of entry, except for certain
aliens such as refugees and asylees]; (3) use State MOE funds to
serve legal aliens who are not ``qualified''; and (4) use, under
section 411(d) of PRWORA, State MOE funds to serve aliens who are
not lawfully present in the U.S., but only through enactment of a
State law, after the date of PRWORA enactment, which ``affirmatively
provides'' for such benefits.
Instruction: Enter the two-digit code that indicates the adult's
(or minor child head-of-household's) citizenship/alienage.
01=U.S. citizen, including naturalized citizens
02=Permanent resident who has worked forty qualifying quarters;
alien who is a veteran with an honorable discharge from the U.S.
Armed Forces or is on active duty in the U.S. Armed Forces, or
spouse or unmarried dependent children of such alien
03=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. five years or less
04=Qualified alien granted political asylum five or less years ago;
qualified alien granted a withholding of deportation by INS (under
sec. 243(h) or sec. 241(b)(3) of the INA) five or less years ago.
05=Qualified alien, (including immigrant accorded permanent resident
status (``green card''), parolee granted parole for at least one
year under sec. 212(d)(5) of the INA, and certain battered aliens
and their children who are determined to be qualified), who arrived
in the U.S. prior to enactment (August 22, 1996) or who arrived in
the U.S. on or after enactment and has resided in the U.S. more than
five years
06=Qualified alien accorded refugee, Cuban or Haitian entrant, or
Amerasian immigrant status (INS Form I-94) who has resided in the
U.S. more than five years
07=Qualified alien granted political asylum or granted withholding
of deportation by INS (under sec. 243(h) or sec. 241(b)(3) of the
INA) more than five years ago;
08=Qualified alien (other than a refugee, Cuban or Haitian entrant,
Amerasian immigrant, asylee, or alien whose deportation has been
withheld under sec. 243(h) or sec. 241(b)(3) of the INA) who
1arrived in the U.S. on or after enactment and has resided in the
U.S. less than 5 years.
09=Any alien who is not a qualified alien.
99=Unknown
32. Employment Status: Enter the one-digit code that indicates
the adult's (or minor child head-of-household's) employment status.
1=Employed
2=Unemployed, looking for work
3=Not in labor force (i.e, unemployed, not looking for work,
includes discouraged workers))
Amount of Earned Income
For each category of earned income, enter the dollar amount of
the adult's (or minor child head-of-household's) earned income.
33. Earned Income Tax Credit (EITC):
Guidance: Earned Income Tax Credit is a refundable tax credit
for families and dependent children. EITC payments are received
either monthly (as advance payment through the employer), annually
(as a refund from IRS), or both.
Instruction: Enter the total dollar amount of the earned income
tax credit actually received, whether received as an advance payment
or a single payment (e.g., tax refund), by the adult (minor child
head-of-household) during the reporting month. If the State counts
the EITC as a resource, report it here as earned income in the month
received. If the State assumes an advance payment is applied for and
obtained, only report what is actually received for this item.
34. Wages, Salaries, and Other Earnings
Amount of Unearned Income
35. Unearned Income: Enter the dollar amount of the adult's (or
minor child head-of-household's) unearned income.
Child Characteristics
This section allows for coding up to ten children in the State
MOE family. A minor child head-of-household should be coded as an
adult, not as a child. The youngest child should be coded as the
first child in the family, the second youngest child as the
[[Page 62224]]
second child, and so on. If the needs of an unborn child are
included in the amount of assistance provided to the family, code
the unborn child as one of the children. Do this by entering the
Date-of-Birth as ``99999999'' and leave the other Child
Characteristics fields blank.
If there are more than ten children in the State MOE family, use
the following order to identify the persons to be coded: (1)
children in the eligible family receiving assistance in order from
youngest to oldest; (2) minor siblings of child in the eligible
family receiving assistance from youngest to oldest; and (3) any
other children.
36. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the one-digit code that shows the Child's
relation to the eligible family receiving assistance.
1=Member of the eligible family receiving assistance
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving assistance
3=Caretaker relative of minor child in the eligible family receiving
assistance
4=Minor sibling of child in the eligible family receiving assistance
5=Person whose income is considered in determining eligibility for
and amount of assistance for the eligible family receiving
assistance
37. Date of Birth: Enter the eight-digit code for date of birth
for this child under the Separate State Programs in the format
YYYYMMDD.
38. Social Security Number: Enter the nine-digit Social Security
Number for the child in the format nnnnnnnnn.
39. Race: Enter the one-digit code for the race of the State MOE
child.
1=White, not of Hispanic origin
2=Black, not of Hispanic origin
3=Hispanic
4=American Indian or Alaska Native
5=Asian or Pacific Islander
6=Other
9=Unknown
40. Gender: Enter the one-digit code that indicates the child's
gender.
1=Male
2=Female
Receives Disability Benefits
The Act specifies five types of disability benefits. Two of
these types of disability benefits are applicable to children. For
each type of disability benefits, enter the one-digit code that
indicates whether or not the child received the benefit.
41. Receives Benefits Based on Federal Disability Status: Enter
the one-digit code that indicates the child received benefits based
on Federal disability status for the reporting month.
1=Yes, received benefits based on Federal disability status
2=No
42. Receives Aid Under Title XVI-SSI: Enter the one-digit code
that indicates the child received aid under a State plan approved
under Title XVI-SSI for the reporting month.
1=Yes, received aid under Title XVI-SSI
2=No
43. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the two-digit code that shows the
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or, principal person of each
person living in the household.
01=Head of household
02=Spouse
03=Parent
04=Daughter or son
05=Stepdaughter or stepson
06=Grandchild or great grandchild
07=Other related person (brother, niece, cousin)
08=Foster child
09=Unrelated child
10=Unrelated adult
44. Teen Parent With Child In the Family:
Guidance: A teen parent is a person who is under 20 years of age
and that person's child is also a member of the State MOE family.
Instruction: Enter the one-digit code that indicates the child's
teen parent status.
1=Yes, a teen parent
2=No
Educational Level
Educational level is divided into two parts; the highest level
of education attained and the highest degree attained.
45. Highest Level of Education Attained: Enter the two-digit
code to indicate the highest level of education attained by the
child.
00=No formal education
01-12=Grade level completed in primary/secondary school including
secondary level vocational school or adult high school
46. Highest Degree Attained:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: If the child has a degree(s), enter the one-digit
code that indicates the child's highest degree attained. Otherwise,
leave the field blank.
0=No degree
1=High school diploma, GED, or National External Diploma Program
2=Awarded Associate's Degree
3=Awarded Bachelor's Degree
4=Awarded graduate degree (Master's or higher)
5=Other credentials (degree, certificate, diploma, etc.)
47. Citizenship/Alienage: Enter the two-digit code that
indicates the child's citizenship/alienage. The coding for this data
element is the same as for item number 26, on page 583.
48. Cooperation with Child Support: Enter the one-digit code
that indicates this child's parent has cooperated with child support
for this child.
1=Yes, child's parent has cooperated with child support
2=No, child's parent has not cooperated with child support
3=Not applicable
49. Unearned Income: Enter the dollar amount of the child 's
unearned income.
Appendix G--TANF MOE Data Report--Section Three--Aggregated Data
Collection for Families Receiving Assistance Under the Separate State
Programs
Instructions and Definitions
1. State FIPS Code: Enter your two-digit State code.
2. Calendar Quarter: The four calendar quarters are as follows:
First quarter........................ January-March.
Second quarter....................... April-June.
Third quarter........................ July-September.
Fourth quarter....................... October-December.
Enter the four-digit year and one-digit quarter code (in the
format YYYYQ) that identifies the calendar year and quarter for
which the data are being reported (e.g., first quarter of 1997 is
entered as ``19971'').
Active Cases
For purposes of completing this report, include all TANF
eligible families receiving assistance under the Separate State
programs, i.e., State MOE families. All counts of families and
recipients should be unduplicated monthly totals.
3. Total Number of Families: Enter the number of families
receiving assistance under the Separate State Programs for each
month of the quarter. The total in this item should equal the sum of
the number of two-parent families (in item #4), the number of one-
parent families (in item #5) and the number of no-parent families
(in item #6).
A. First Month:
B. Second Month:
C. Third Month:
4. Total Number of Two-parent Families: Enter the total number
of two-parent families receiving assistance under the Separate State
Programs for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
5. Total Number of One-Parent Families: Enter the total number
of one-parent families receiving assistance under the Separate State
Programs for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
6. Total Number of No-Parent Families: Enter the total number of
no-parent families
[[Page 62225]]
receiving assistance under the Separate State Programs for each
month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
7. Total Number of Recipients: Enter the total number of
recipients receiving assistance under the Separate State Programs
for each month of the quarter. The total in this item should equal
the sum of the number of adult recipients (in item #8) and the
number of child recipients (in item #9).
A. First Month:
B. Second Month:
C. Third Month:
8. Total Number of Adult Recipients: Enter the total number of
adult recipients receiving assistance under the Separate State
Programs for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
9. Total Number of Child Recipients: Enter the total number of
child recipients receiving assistance under the Separate State
Programs for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
10. Total Number of Non-Custodial Parents Participating in Work
Activities: Enter the total number of non-custodial parents
participating in work activities under the Separate State Programs
for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
11. Total Number of Minor Child Heads-of-Household: Enter the
total number of minor child head-of-household families receiving
assistance under the Separate State Programs for each month of the
quarter.
A. First Month:
B. Second Month:
C. Third Month:
12. Total Number of Births: Enter the total number of births for
families receiving assistance under the Separate State Programs for
each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
13. Total Number of Out-of-Wedlock Births: Enter the total
number of out-of-wedlock births for families receiving assistance
under the Separate State Programs for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
14. Total Amount of Assistance: Enter the dollar value of all
assistance (cash and non-cash) provided to families under the
Separate State Programs for each month of the quarter. Round the
amount of assistance to the nearest dollar.
A. First Month:
B. Second Month:
C. Third Month:
Closed Cases
15. Total Number of Closed Cases: Enter the total number of
closed cases for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
Appendix H--Sampling Specifications
1. Sample Methodology
The sample methodology must conform to principles of probability
sampling, i.e., each family in the population of interest must have
a known, non-zero probability of selection and computational methods
of estimation must lead to a unique estimate. The State must
construct a sample frame for each month in the annual sample period
and must select approximately one-twelfth of the required minimum
annual sample size from each monthly sample frame.
The recommended method of sample selection is stratified
systematic random sampling.
2. Sample frame requirements for
a. families receiving assistance under the state TANF Program
(i.e., the active TANF sample) are:
The monthly TANF sample frame must consist of an unduplicated
list of all families who receive assistance under the State TANF
Program for the reporting month by the end of the reporting month.
Only families with a minor child who resides with a custodial parent
or other adult relative or a pregnant woman may receive assistance.
b. families no longer receiving assistance under the State TANF
Program (i.e., the closed TANF sample) are:
For closed cases, the monthly TANF sample frame must consist of
an unduplicated list of all families whose assistance under the
State TANF Program was terminated for the reporting month (do not
include families whose assistance was temporarily suspended), but
received assistance under the State's TANF Program in the prior
month. Thus, TANF eligible families that are transferred to a
Separate State Program are closed cases for the State TANF Program.
c. families receiving assistance under the Separate State
Programs (i.e., the active Separate State sample) are:
The monthly Separate State sample frame must consist of an
unduplicated list of all TANF-eligible families who receive
assistance under the Separate State Programs for the reporting month
by the end of the reporting month.
d. families no longer receiving assistance under the Separate
State Programs (i.e., the closed Separate State sample) are:
For closed cases, the monthly Separate State sample frame must
consist of an unduplicated list of all families who assistance under
the Separate State Programs was terminated for the reporting month
(do not include families whose assistance was temporarily
suspended), but received assistance under the Separate State
Programs in the prior month. Thus, State MOE families that are
transferred to a State TANF Program are closed cases for the
Separate State Programs.
3. Sample Size Requirement
a. for families receiving assistance under a State TANF Program
are:
The minimum required annual sample size for families receiving
assistance is 3000 families, of which 600 families must be newly,
approved applicants. Of the 2400 families that have received ongoing
assistance approximately 25% (600 families) must be two-parent TANF
families. We established the minimum required sample sizes to
provide reasonably precise estimates (e.g., a precision of about
plus or minus 2 percentage points at a 95% confidence level) for
such proportions as the work participation rates for all families
and for two-parent families, as well as for demographic and case
characteristics of newly, approved TANF families and all TANF
families.
b. for families no longer receiving assistance under a State
TANF Program are:
The minimum required annual sample size for the sample of
families no longer receiving assistance (i.e., closed cases) is 800
families.
c. for families receiving assistance under a Separate State
Programs are:
The minimum required annual sample size for families receiving
assistance under the Separate State Programs is 3000 families, of
which 600 families must be newly, approved applicants. Of the 2400
families that have received ongoing assistance approximately 25%
(600 families) must be two-parent TANF-eligible families. We
established the minimum required sample sizes to provide reasonably
precise estimates (e.g., a precision of about plus or minus 2
percentage points at a 95% confidence level) for such proportions as
the work participation rates for all families and for two-parent
families, as well as for demographic and case characteristics of
State MOE families.
d. for families no longer receiving assistance under a Separate
State Programs are:
The minimum required annual sample size for the sample of
families no longer receiving assistance (i.e., closed cases) under
the Separate State Programs is 800 families.
4. What must States submit to ACF?
Each State that opts to sample its caseloads must submit the
following:
a. Each State must submit for approval its annual sampling plan
or any changes to its currently approved sampling plan at least
sixty (60) calendar days before the start of the annual period. If
the State's sampling plan is unchanged from the previous year, the
State is not required to resubmit the sampling plan. The sampling
plan must satisfy the requirements for plan approval as specified in
Section 1300 of the TANF Sampling and Statistical Methods Manual and
includes the following:
i. Documentation of methods for constructing and maintaining the
sample frame(s), including assessment of frame completeness and any
potential problems associated with using the sample frame(s);
ii. Documentation of methods for selecting the sample cases from
the sample frame(s); and
iii. Documentation of methods for estimating case
characteristics and their
[[Page 62226]]
sampling errors, including the computation of weights, where
appropriate.
b. Each State must submit the estimated average monthly caseload
for the annual sample period and the computed sample interval (if
applicable) to the ACF Regional Administrator thirty (30) calendar
days before the beginning of the annual sample period, i.e., by
September 1 for the October sample selection. States must submit the
monthly list of selected sample cases (including reserve pool cases,
if applicable) within 10 days of the date of selection specified in
the State sampling plan.
c. Each State must submit the total number of families receiving
assistance under the State TANF Program by stratum for each month in
the annual sample period, the total number of families no longer
receiving assistance under the State TANF Program (if stratified, by
stratum) for each month in the annual sample period, the total
number of families receiving assistance under the Separate State
Programs by stratum for each month in the annual sample period, and
the total number of families no longer receiving assistance under
the Separate State Programs (if stratified, by stratum) for each
month in the annual sample period. This data is required for
weighting the sample results in order to produce estimates for the
entire caseload.
Appendix I--Statutory Reference Table for Appendix A
------------------------------------------------------------------------
Data elements Justification
------------------------------------------------------------------------
1. State FIPS Code..................... Implicit in administering data
collection system.
2. County FIPS Code.................... 411(a)(1)(A)(i).
3. Tribal Code......................... Implicit in administering data
collection system.
4. Reporting Month..................... Implicit in administering data
collection system.
5. Stratum............................. Implicit in administering data
collection system.
------------------------------------------------------------------------
Family Level Data--Items 6-44.
------------------------------------------------------------------------
6. Case Number......................... Implicit in administering data
collection system.
7. ZIP Code............................ Needed for geographic coding
(and rural/urban analyses) and
is readily available.
8. Funding Stream...................... 411(a)(1)(A)(xii): Use in
calculation of participation
rate.
9. Disposition......................... Implicit in administering data
collection system.
10. New Applicant...................... 411(b), requires the Secretary
to report to Congress on
families applying for TANF
assistance. This element
identifies applicants that are
newly, approved families
receiving assistance.
11. Number of Family Members........... 411(a)(1)(A)(iv).
12. Type of Family for Work 411(a)(1)(A)(xii): Use in
Participation. calculation of participation
rate.
13. Receives Subsidized Housing........ 411(a)(1)(A)(ix).
14. Receives Medical Assistance........ 411(a)(1)(A)(ix).
15. Receives Food Stamps............... 411(a)(1)(A)(ix).
16. Amount of Food Stamp Assistance.... 411(a)(1)(A)(ix).
17. Receives Subsidized Child Care..... 411(a)(1)(A)(ix).
18. Amount of Subsidized Child Care.... 411(a)(1)(A)(ix).
19. Amount of Child Care Disregard..... The CCDF sample will not
capture children whose child
care is funded by TANF. The
data element is collected here
because it is required under
CCDF and this is the most cost-
effective way to capture TANF
Child Care information. (See
Sec. 658K(a)(2)(C)).
20. Amount of Child Support............ 411(a)(1)(A)(xiv): Break-out of
unearned income.
21. Amount of the Families' Cash 411(b), requires the Secretary
Resources. to report to Congress on
financial circumstances of
families receiving TANF
assistance.
------------------------------------------------------------------------
Amount of Assistance Received and Number of Months the Family Received
Assistance by Type under the State TANF Program--Items 22-31 are types
of assistance.
------------------------------------------------------------------------
22. Cash and Cash Equivalents.......... 411(a)(1)(A) (x) & (xiii).
23. Educational........................ 411(a)(1)(A) (x) & (xiii).
24. Employment Services................ 411(a)(1)(A) (x) & (xiii).
25. Work Subsidies..................... 411(a)(1)(A) (x) & (xiii).
26. TANF Child Care.................... 411(a)(1)(A) (x) & (xiii).
27. Transportation..................... 411(a)(1)(A) (x) & (xiii).
28. Other Supportive Services and 411(a)(1)(A) (x) & (xiii).
Special Needs, Including Assistance
with Meeting Home Heating and Air
Conditioning Costs.
29. Transitional Services.............. 411(a)(1)(A) (x) & (xiii).
30. Contributions to Individual 411(a)(1)(A) (x) & (xiii).
Development Accounts.
31. Other.............................. 411(a)(1)(A) (x) & (xiii).
------------------------------------------------------------------------
Reason for and Amount of Reduction in Assistance--Items 32-42 are the
reasons for reduction in assistance
------------------------------------------------------------------------
32. Work Requirements Sanction......... 411(a)(1)(A)(xiii).
33. Family Sanction for an Adult with 411(a)(1)(A)(xiii).
No High School Diploma or Equivalent.
34. Sanction for Teen Parent Not 411(a)(1)(A)(xiii).
Attending School.
35. Non-Cooperation with Child Support. 411(a)(1)(A)(xiii).
36. Failure to Comply with an 411(a)(1)(A)(xiii).
Individual Responsibility Plan.
37. Other Sanction..................... 411(a)(1)(A)(xiii).
38. Recoupment of Prior Overpayment.... 411(a)(1)(A)(xiii).
39. Family Cap......................... 411(a)(1)(A)(xiii).
40. Reduction Based on Family Moving 411(a)(1)(A)(xiii).
into State From Another State.
41. Reduction Based on Length of 411(a)(1)(A)(xiii).
Receipt of Assistance.
[[Page 62227]]
42. Other, Non-sanction................ 411(a)(1)(A)(xiii).
43. Waiver Evaluation Research Group... 411(a)(1)(A)(xii): Use to
calculate the participation
rate for States with an
ongoing waiver evaluation for
impact analysis purposes.
44. Is the TANF Family Exempt from the 409 (a)(9).
Federal Time Limit.
------------------------------------------------------------------------
Adult Characteristics--Items 45-88.
------------------------------------------------------------------------
45. Family Affiliation................. 411(a)(1)(A)(iv) and 411(b):
Needed to identify persons in
eligible family receiving
assistance and other
individuals living in the
household.
46. Noncustodial Parent Indicator...... 411(a)(4): Report on Non-
custodial Parents requires the
number of non-custodial
Parents. To provide assistance
to non-custodial parents under
the State TANF Program, States
must include them in the
family. Data could be
collected under the element
Relationship to Head-of-
Household. Element was broken
out to make the coding cleaner
and easier for States to
report.
47. Date of Birth...................... 411(a)(1)(A)(iii): Age--Date of
birth gives the same
information but is a constant.
48. Social Security Number............. This information is also
readily available. States use
Social Security Numbers to
carry out the requirements of
IEVS (see sections 409(a)(4)
and 1137 of the Act). We need
this information also for
research on the circumstances
of children and families as
required in section 413(g) of
the Act (i.e., to track
individual members of the TANF
family).
49. Race............................... 411(a)(1)(A)(vii).
50. Gender............................. Data could be collected under
the element Relationship to
Head-of-Household (e.g.,
husband, wife, daughter, son,
etc.). Element was broken out
to make the coding cleaner and
easier for States to report.
Used the Secretary's Report to
the Congress.
------------------------------------------------------------------------
Receives Federal Disability Benefits--Items 51-55.
------------------------------------------------------------------------
51. Receives Federal Disability 411(a)(1)(A)(ii) as revised by
Insurance Benefits. P.L. 105-33.
52. Receives Benefits Based on Federal 411(a)(1)(A)(ii) as revised by
Disability Status. P.L. 105-33.
53. Receives Aid Under Title XIV-APDT.. 411(a)(1)(A)(ii) as revised by
P.L. 105-33.
54. Receives Aid Under Title XVI-AABD.. 411(a)(1)(A)(ii) as revised by
P.L. 105-33.
55. Receives Aid Under Title XVI-SSI... 411(a)(1)(A)(ii) as revised by
P.L. 105-33.
56. Marital Status..................... 411(a)(1)(A)(vi).
57. Relationship to Head-of-Household.. 411(a)(1)(A)(iv) as revised by
P.L. 105-33.
58. Teen Parent with Child in the 411(a)(1)(A)(xvii) as revised
Family. by P.L. 105-33.
------------------------------------------------------------------------
Adult Educational Level--Items 59 and 60.
------------------------------------------------------------------------
59. Highest Level of Education Attained 411(a)(1)(A)(vii).
60. Highest Degree Attained............ 411(a)(1)(A)(vii).
61. Citizenship/Alienage............... 411(a)(1)(A)(xv): We have
updated our prior coding of
citizenship status to reflect
the complexity of TANF; also
409(a)(1).
62. Number of Months Countable toward 409(a)(9).
Federal Time Limit in Own State
(Tribe).
63. Number of Months Countable toward 409(a)(9).
Federal Time Limit in Other States or
Tribes.
64. Number of Countable Months 409(a)(9).
Remaining Under State's Time Limit.
65. Is Current Month Exempt from the 409(a)(9).
State's Time Limit.
66. Employment Status.................. 411(a)(1)(A)(v).
67. Work Participation Status.......... 411(a)(1)(A)(xii): Needed to
calculate the work
participation rate.
------------------------------------------------------------------------
Adult Work Participation Activities--Items 68-81 are the work
participation activities and are needed to calculate the work
participation rate.
------------------------------------------------------------------------
68. Unsubsidized Employment............ 411(a)(1)(A)(xi)(III).
69. Subsidized Private Sector 411(a)(1)(A)(xi)(II).
Employment.
70. Subsidized Public Sector Employment 411(a)(1)(A)(xi)(IV).
71. Work Experience.................... 411(a)(1)(A)(xi)(IV).
72. On-the-job Training................ 411(a)(1)(A)(xi)(VI).
73. Job Search and Job Readiness 411(a)(1)(A)(xi)(V).
Assistance.
74. Community Service Programs......... 411(a)(1)(A)(xi)(IV).
75. Vocational Educational Training.... 411(a)(1)(A)(xi)(VII).
76. Job Skills Training Directly 411(a)(1)(A)(xi)(VI).
Related to Employment.
77. Education Directly Related to 411(a)(1)(A)(xi)(I).
Employment for Individuals with no
High School Diploma or Certificate of
High School Equivalency.
78. Satisfactory School Attendance for 411(a)(1)(A)(xi)(I).
Individuals with no High School
Diploma or Certificate of High School
Equivalency.
79. Providing Child Care Services to an 411(a)(1)(A)(xi).
Individual who is Participating in a
Community Service Program.
80. Additional Work Activities 411(a)(1)(A)(xii): Use to
Permitted Under Waiver. calculate work participation
rate, when approved 1115
waiver permits other work
activities.
[[Page 62228]]
81. Other Work Activities.............. Related to 411(a)(1)(A)(xii)
and 409(a)(3).
82. Required Hours of Work Under Waiver 411(a)(1)(A)(xii): Use to
calculate the Work
participation rate, when
approved 1115 waiver permits a
different number of hours of
work participation to count as
engaged in work.
------------------------------------------------------------------------
Adult Earned Income--Items 83 and 84 break out earned income.
------------------------------------------------------------------------
83. Earned Income Tax Credit (EITC).... 411(a)(1)(A)(v).
84. Wages, Salaries, and Other Earnings 411(a)(1)(A)(v).
------------------------------------------------------------------------
Adult Unearned Income--Items 85 and 88 break out Unearned income.
------------------------------------------------------------------------
85. Amount of Social Security.......... 411(a)(1)(A)(xiv).
86. Amount of SSI...................... 411(a)(1)(A)(xiv).
87. Amount of Worker's Compensation.... 411(a)(1)(A)(xiv).
88. Amount of Other Unearned Income.... 411(a)(1)(A)(xiv).
------------------------------------------------------------------------
Child Characteristics--Items 89-109.
------------------------------------------------------------------------
89. Family Affiliation................. 411(a)(1)(A)(iv) and 411(b):
Needed to identify persons in
eligible family receiving
assistance and other
individuals living in the
household.
90. Date of Birth...................... 411(a)(1)(A)(iii): Age--Date of
birth gives the same
information but is a constant.
91. Social Security Number............. This information is also
readily available. States use
Social Security Numbers to
carry out the requirements of
IEVS (see sections 409(a)(4)
and 1137 of the Act). We need
this information also for
research on the circumstances
of children and families as
required in section 413(g) of
the Act (i.e., to track
individual members of the TANF
family).
92. Race............................... 411(a)(1)(A)(viii).
93. Gender............................. Data could be collected under
the element Relationship to
Head-of-Household (e.g.,
husband, wife, daughter, son,
etc.). Element was broken out
to make the coding cleaner and
easier for States to report.
Used the Secretary's Report to
the Congress.
------------------------------------------------------------------------
Receives Federal Disability Benefits
------------------------------------------------------------------------
94. Receives Benefits Based on Federal 411(a)(1)(A)(ii) as revised by
Disability Status. P.L. 105-33.
95. Receives Aid Under Title XVI-SSI... 411(a)(1)(A)(ii) as revised by
P.L. 105-33.
96. Relationship to Head-of-household.. 411(a)(1)(A)(iv) as revised by
P.L. 105-33.
97. Teen Parent with Child in the 411(a)(1)(A)(xvii) as revised
Family. by P.L. 105-33.
------------------------------------------------------------------------
Child Educational Level--Items 101 and 102.
------------------------------------------------------------------------
98. Highest Level of Education Attained 411(a)(1)(A)(viii).
99. Highest Degree Attained............ 411(a)(1)(A)(viii).
100. Citizenship/Alienage.............. 411(a)(1)(A)(xv): We have
updated our prior coding of
citizenship status to reflect
TANF; also 409(a)(1).
101. Cooperation with Child Support.... 409(a)(5).
------------------------------------------------------------------------
Child Unearned Income--Items 105 and 106.
------------------------------------------------------------------------
102. Amount of SSI..................... 411(a)(1)(A)(xiv).
103. Amount of Other Unearned Income... 411(a)(1)(A)(xiv)--rather than
breaking out unearned income
into its parts, we ask for an
indicator that the recipient
has certain types of unearned
income.
------------------------------------------------------------------------
Child Care Reporting Section--Items 107-109.
------------------------------------------------------------------------
104. Type of Child Care................ The CCDF sample will not
capture children whose child
care is funded by TANF. The
data element is collected here
because it is required under
CCDF and this is the most cost-
effective way to capture TANF
Child Care information. See
Sec. 658K(a)(2)(C).
105. Total Monthly Cost of Child Care.. The CCDF sample will not
capture children whose child
care is funded by TANF. The
data element is collected here
because it is required under
CCDF and this is the most cost-
effective way to capture TANF
Child Care information. (See
Sec. 658K(a)(2)(C)). The Total
Amount of the Child Care
Subsidy (required by 411(a))
may be derived from this item
and the total Monthly cost of
child Care.
106. Total Monthly Hours of Child Care The CCDF sample will not
Provided During the Reporting Month. capture children whose child
care is funded by TANF. The
data element is collected here
because it is required under
CCDF and this is the most cost-
effective way to capture TANF
Child Care information. See
Sec. 658K(a)(2)(C).
------------------------------------------------------------------------
[[Page 62229]]
Appendix J--Statutory Reference Table for Appendix B
------------------------------------------------------------------------
Data elements Justification
------------------------------------------------------------------------
1. State FIPS Code..................... Implicit in administering data
collection system.
2. County FIPS Code.................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
3. Tribal Code......................... Implicit in administering data
collection system.
4. Reporting Month..................... Implicit in administering data
collection system.
5. Stratum............................. Implicit in administering data
collection system.
------------------------------------------------------------------------
Family Level Data--Items 6-16.
------------------------------------------------------------------------
6. Case Number......................... Implicit in administering data
collection system.
7. ZIP Code............................ Needed for geographic coding
(and rural/urban analyses) and
is readily available.
8. Disposition......................... Implicit in administering data
collection system.
9. Reason for Closure.................. 411(a)(1)(A)(xvi).
10. Number of Family Members........... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
11. Receives Subsidized Housing........ 411 (b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
12. Receives Medical Assistance........ 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
13. Receives Food Stamps............... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
14. Amount of Food Stamp Assistance.... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
15. Receives Subsidized Child Care..... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
16. Amount of Subsidized Child Care.... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
------------------------------------------------------------------------
Adult Characteristics--Items 17-39.
------------------------------------------------------------------------
17. Family Affiliation................. Needed to identify persons in
State-defined family and other
individuals living in the
household.
18. Date of Birth...................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
19. Social Security Number............. This information is also
readily available. States use
Social Security Numbers to
carry out the requirements of
IEVS (see sections 409(a)(4)
and 1137 of the Act). We need
this information also for
research on the circumstances
of children and families as
required in section 413(g) of
the Act (i.e., to track
individual members of the TANF
family).
20. Race............................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
21. Gender............................. Data could be collected under
the element Relationship to
Head-of-Household (e.g.,
husband, wife, daughter, son,
etc.). Element was broken out
to make the coding cleaner and
easier for States to report.
Used the Secretary's Report to
the Congress.
------------------------------------------------------------------------
Receives Federal Disability Benefits--Items 22-26.
------------------------------------------------------------------------
22. Receives Federal Disability 411(b): Use to construct
Insurance Benefits. comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
23. Receives Benefits Based on Federal 411(b): Use to construct
Disability Status. comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
24. Receives Aid Under Title XIV-APDT.. 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
25. Receives Aid Under Title XVI-AABD.. 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
26. Receives Aid Under Title XVI-SSI... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
27. Marital Status..................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
28. Relationship to Head-of-Household.. 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
29. Teen Parent with Child in the 411(b): Use to construct
Family. comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
------------------------------------------------------------------------
Adult Educational Level--Items 30 and 31.
------------------------------------------------------------------------
30. Highest Level of Education Attained 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
[[Page 62230]]
31. Highest Degree..................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
32. Citizenship/Alienage............... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A) and 409(a)(1),
for families receiving
assistance.
33. Number of Months Countable toward 411(b): Use to construct
Federal Time Limit in Own State comparable statistics based on
(Tribe). 409(a)(9), for families
receiving assistance.
34. Number of Months Countable toward 411(b): Use to construct
Federal Time Limit in Other States or comparable statistics based on
Tribes. 409(a)(9), for families
receiving assistance.
35. Number of Countable Months 411(b): Use to construct
Remaining Under State's Time Limit. comparable statistics based on
409(a)(9), for families
receiving assistance.
36. Employment Status.................. 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
------------------------------------------------------------------------
Adult Earned Income--Items 37 and 38 break out earned income
------------------------------------------------------------------------
37. Earned Income Tax Credit (EITC).... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
38. Wages, Salaries, and Other Earnings 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
39. Unearned Income.................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
------------------------------------------------------------------------
Child Characteristics--Items 40-52.
------------------------------------------------------------------------
40. Family Affiliation................. Needed to identify persons in
State-defined family and other
individuals living in the
household.
41. Date of Birth...................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
42. Social Security Number............. This information is also
readily available. States use
Social Security Numbers to
carry out the requirements of
IEVS (see sections 409(a)(4)
and 1137 of the Act). We need
this information also for
research on the circumstances
of children and families as
required in section 413(g) of
the Act (i.e., to track
individual members of the TANF
family).
43. Race............................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
44. Gender............................. Data could be collected under
the element Relationship to
Head-of-Household (e.g.,
husband, wife, daughter, son,
etc.). Element was broken out
to make the coding cleaner and
easier for States to report.
Used the Secretary's Report to
the Congress.
------------------------------------------------------------------------
Receives Federal Disability Benefits--Items 45-49.
------------------------------------------------------------------------
45. Receives Benefits Based on Federal 411(b): Use to construct
Disability Status. comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
46. Receives Aid Under Title XVI-SSI... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
47. Relationship to Head-of-Household.. 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
48. Teen Parent with Child in the 411(b): Use to construct
Family. comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
49. Highest Level of Education Attained 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
------------------------------------------------------------------------
Child Educational Level--Items 52 and 53.
------------------------------------------------------------------------
50. Highest Degree..................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
51. Citizenship/Alienage............... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A) and 409(a)(1),
for families receiving
assistance.
52. Cooperation with Child Support..... 411(b): Use to construct
comparable statistics based on
409(a)(5), for families
receiving assistance.
53. Unearned Income.................... 411(b): Use to construct
comparable statistics based on
411(a)(1)(A), for families
receiving assistance.
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Appendix K--Statutory Reference Table for Appendix C
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Data elements Statutory basis
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1. State FIPS Code..................... Implicit in administering data
collection system.
2. Tribal Code......................... Implicit in administering data
collection system.
3. Calendar Quarter.................... Implicit in administering data
collection system.
4. Total Number of Applications........ 411(b): Use in Report to
Congress.
[[Page 62231]]
5. Total Number of Approved 411(a): Implicit in use of
Applications. samples. Needed to weight
sample data report for the
newly, approved applicants
portion of the sample.
411(b): Use in Report to
Congress.
6. Total Number of Denied Applications. 411(b): Use in Report to
Congress.
7. Total Amount of Assistance.......... 411(a)(6) as revised by P.L.
105-33.
8. Total Number of Families............ 411(a)(6) as revised by P.L.
105-33.
407(b)(3): Use in calculation
of caseload reduction for
adjusting the participation
rate standard.
411(a): Implicit in use of
samples to weight State data
to national totals.
9. Total Number of Recipients.......... 411(a)(6) as revised by P.L.
105-33.
10. Total Number of Adult Recipients... 411(a)(6) as revised by P.L.
105-33.
11. Total Number of Child Recipients... 411(a)(6) as revised by P.L.
105-33.
12. Total Number of Two-Parent Families 411(a)(6) as revised by P.L.
105-33.
407(b)(3): Use in calculation
of caseload reduction for
adjusting the participation
rate standard.
13. Total Number of One-Parent Families 411(a)(6) as revised by P.L.
105-33.
14. Total Number of No-Parent Families. 411(a)(6) as revised by P.L.
105-33.
15. Total Number of Non-custodial 411(a)(4).
Parents Participating in Work
Activities.
16. Total Number of Minor Child Heads- Used to test the reliability
of-Household. and representativeness of the
sample.
411(b): Use in Report to
Congress.
17. Total Number of Births............. 413(e): Needed to calculate the
Annual Ranking of States
related to Out-of-Wedlock
Births.
18. Total Number of Out-of-Wedlock 413(e): Needed to calculate the
Births. Annual Ranking of States
related to Out-of-Wedlock
Births.
19. Total Number of Closed Cases....... 411(a): Implicit in use of
samples. Needed to weight
sample data report for
families no longer receiving
assistance.
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[FR Doc. 97-30195 Filed 11-17-97; 8:45 am]
BILLING CODE 4184-01-P