[Federal Register Volume 63, Number 209 (Thursday, October 29, 1998)]
[Rules and Regulations]
[Pages 57919-57929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28840]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 276

RIN 0970-AB92


Welfare-to-Work Data Collection

AGENCY: Administration for Children and Families, HHS.

ACTION: Interim final rule; request for comments.

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SUMMARY: The Administration for Children and Families is issuing an 
interim final rule that specifies the reporting requirements applicable 
to States and Indian tribes with respect to participants receiving 
services under Welfare-to-Work (WtW) grants. The overall purpose of the 
WtW program is to assist States, Tribes, and other grantees to provide 
transitional employment assistance that moves hard-to-employ welfare 
recipients, living in high poverty areas, into unsubsidized employment 
and economic self-sufficiency. WtW grants are targeted to assist those 
TANF (Temporary Assistance for Needy Families) recipients, and certain 
noncustodial parents, who have experienced or have characteristics 
associated with long-term welfare dependency. This regulation 
implements portions of section 411 of the Social Security Act, 42 
U.S.C. 611.

DATES: The interim final rule is effective October 29, 1998. However, 
affected parties do not have to comply with this information collection 
requirement until we receive approval from the Office of Management and 
Budget and publish the control numbers assigned to it under the 
Paperwork Reduction Act of 1995.
    Comment period: You must submit comments by December 28, 1998. We 
will not consider comments received after this date.

ADDRESSES: You may mail or hand-deliver comments to the Administration 
for Children and Families, Office of Planning, Research and Evaluation, 
7th Floor West, 370 L'Enfant Promenade, SW, Washington, DC 20447. 
Attention: Patrick Brannen.
    Comments that are less than 10 pages in length may be transmitted 
via facsimile at (202) 205-3598, provided that submission of written 
text follows.
    You may also transmit written comments electronically via the 
Internet. To transmit comments electronically, or download an 
electronic version of the interim final 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 at the 
Office of Planning, Research and Evaluation, 7th Floor West, 901 D 
Street, SW, Washington, DC 20447, from Monday through Friday between 
the hours of 9 a.m. and 4 p.m.EST. (This is the street address, as 
opposed to the mailing address above.)
    We will not acknowledge the individual comments we receive. 
However, we will review and consider all that are germane and received 
during the comment period.

FOR FURTHER INFORMATION, CONTACT: Patrick Brannen, Division of Data 
Collection and Analysis, Office of Planning, Research and Evaluation, 
ACF, at (202) 401-5096.
    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:

Table of Contents

I. The Interim Final Rule and the Paperwork Reduction Act
II. Legislative and Regulatory Background
    A. The Personal Responsibility and Work Opportunity 
Reconciliation Act
    B. Welfare-to-Work Grants
III. Welfare-to-Work Data Collection Requirements
    A. Joint DHHS/DOL Information Collection Strategy
    B. Section by Section Discussion of the Interim Final Rule
IV. Regulatory Impact Analyses
    A. Executive Order 12866
    B. Regulatory Flexibility Analysis
    C. Paperwork Reduction Act
    D. Unfunded Mandates Reform Act of 1995
    E. Congressional Review
    F. Effective Date and Absence of Notice and Comment

I. The Interim Final Rule and the Paperwork Reduction Act

    The Balanced Budget Act of 1997, Pub. L. 105-33, amended title IV-A 
of the Social Security Act (the Act) to authorize Welfare-to-Work (WtW) 
grants to States and Tribes. The Department of Labor (DOL) and the 
Department of Health and Human Services (DHHS) share responsibility for 
the implementation of this program. In general, DOL has overall 
responsibility for program administration, and DHHS has responsibility 
for participant data collection and evaluation of the program.
    The Department of Labor issued an interim final rule to implement 
the WtW grants program on November 18, 1997 (62 FR 62124). This DHHS 
interim final rule implements section 411 of the Act and specifies the 
WtW participant data collection and reporting requirements that must be 
submitted by those States and Indian tribes administering WtW grants.
    We have determined that publication of an interim final rule is 
necessary as WtW grants are authorized to be awarded only in FY 1998 
and FY 1999. Information collection is required by statute to begin as 
soon as States and Tribes begin implementing the program. In addition, 
it is critical that information be available in order to conduct the 
evaluation and submit the reports to Congress required by statute. 
Section 413(j) of the Act requires DHHS to submit an interim report to 
Congress in January 1999 and a final report in January 2001. These 
reports must contain an evaluation of how the WtW grant funds have been 
used, including specific outcome information on participants.
    The WtW participant and expenditure data elements in this interim 
final rule are designed to provide critical information for the WtW 
evaluation and the reports to Congress. These data elements will also 
help grantees manage and evaluate their programs. Although DHHS is 
funding a national study of the WtW program, little information from 
this study will be available for several years. States and Tribes 
represent the primary source of information on individual participants 
that will enable us to carry out our statutory responsibilities.
    For these reasons, we believe an interim final rule is justified. 
However, we are sensitive to the issue of reporting

[[Page 57920]]

burden on States and Tribes. We have limited the data elements to those 
specified in section 411 of the Act, with a few necessary exceptions. 
Although the information to be reported is specified in the statute, it 
is not specified in the form of individualized data elements. Thus, a 
regulation is necessary to convert the required data into a format 
suitable for reporting. We will, however, consider all comments 
received in response to this rule in determining what changes are 
appropriate before issuing a final rule.
    This interim final 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 these 
interim final data collection requirements to OMB for review and 
approval and are concurrently using this rule as a vehicle for seeking 
comments from the public on these information collection activities.

II. Legislative and Regulatory Background

A. The Personal Responsibility and Work Opportunity Reconciliation Act

    The Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996 (PRWORA), or the welfare reform law (Pub. L. 104-193), 
established the Temporary Assistance for Needy Families (TANF) program 
in title IV-A of the Act. TANF is a block grant program designed to 
make dramatic reforms in the nation's welfare system.
    The TANF provisions substantially changed the nation's welfare 
system from one in which cash assistance was provided on an entitlement 
basis to a system in which the primary focus is on moving welfare 
recipients to work and promoting family responsibility, accountability, 
and self-sufficiency. The law limits federal assistance to a 60-month 
period of time for most adult recipients of State TANF programs. Such 
individuals are expected to become self-sufficient within that 
timeframe. (The 60-month time limit is not applicable to recipients 
under the Tribal TANF program.)
    In support of this objective, the statute established an overall 
work participation rate for all families and a work participation rate 
for two-parent families that must be met by each State, beginning in 
fiscal year 1997 and in each fiscal year thereafter. States that do not 
meet the participation requirements face significant financial 
penalties. The Secretary is authorized to establish the work 
participation rates for Indian tribes. States may provide to 
recipients, with TANF, WtW, or other funding, job-related education and 
skills training as well as other services to ensure lasting employment 
and the achievement of self-sufficiency.
    TANF replaced the national welfare program known as Aid to Families 
with Dependent Children (AFDC) which provided cash assistance to needy 
families on an entitlement basis. It also replaced the related programs 
known as the Job Opportunities and Basic Skills Training (JOBS) program 
and the Emergency Assistance (EA) program.
    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. Indian tribes were also authorized to run their own 
TANF programs and a number have elected to do so. We published a Notice 
of Proposed Rulemaking to implement the work, penalties, and data 
collection provisions of the TANF program in the Federal Register on 
November 20, 1997 (62 FR 62124). On July 22, 1998, we published an NPRM 
on the Tribal Work and TANF Programs (63 FR 39366).

B. Welfare-to-Work Grants

    Following the enactment of PRWORA, the Administration and Congress 
were concerned that those welfare recipients who have the least skills, 
education, and employment experience, and who live within high poverty 
areas, might need additional assistance to obtain lasting jobs and 
become self-sufficient.
    On August 5, 1997, the President signed the Balanced Budget Act of 
1997. This legislation amended title IV-A of the Act to authorize the 
Secretary of Labor to make Welfare-to-Work (WtW) grants to States, 
Indian tribes, Private Industry Councils (PICs), local governments, and 
other private entities to help move hard-to-employ TANF welfare 
recipients and certain noncustodial parents into unsubsidized jobs 
providing good career potential for achieving economic self-
sufficiency.
    Among other responsibilities, DOL is authorized to--
     make formula grants to States and Indian tribes;
     make competitive grants to a wide range of local entities, 
e.g., local governments, Private Industry Councils (PICs), community 
development corporations, community action agencies, and other public 
and private entities; and
     award performance bonuses to those States which most 
effectively place hard to employ individuals in lasting employment at 
increased earnings.
    These activities are described more fully below.
Formula Grants to States
    Section 403(a)(5)(A) of the Act authorizes DOL to award 75 percent 
of the funds available in each of fiscal years 1998 and 1999 as formula 
grants to States. States are required to pass through 85 percent of the 
formula grant funds to PICs. PICs (known as workforce development 
boards in some areas) oversee and guide job training programs in 
geographical jurisdictions called service delivery areas (i.e., 
generally one or more units of local government with a population of 
200,000 or more). A State is allowed to retain 15 percent of the money 
for WtW projects of its choice. Governors are responsible for 
administering formula grant funds and for assuring that they are 
coordinated with funds spent under the TANF block grant.
Formula Grants to Indian tribes
    Sections 403(a)(5)(F) and 412(a)(3) of the Act authorize DOL to 
award $15 million as grants to Indian tribes in each of fiscal years 
1998 and 1999.
Competitive grants
    Section 403(a)(5)(B) of the Act provides that DOL will distribute 
approximately 25 percent of available WtW funds through a competitive 
grant process. These funds provide targeted assistance needed to move 
hard-to-employ TANF recipients and certain noncustodial parents into 
lasting unsubsidized jobs. These grants also will help expand the base 
of knowledge about programs which are successful in achieving program 
goals.
    Eligible competitive grant applicants include PICs; local 
governments; and a range of private entities including community 
development corporations, community action agencies, community-based 
and faith-based organizations, disability community organizations, and 
public and private colleges and universities.
Features Which Apply to Both Formula and Competitive Grants
    Use of funds: Funds may be used to help move eligible individuals 
into jobs by--job creation through public or private sector wage 
subsidies; on-the-job training; contracts with public or private 
providers of job readiness, job placement, and post-employment 
services; job vouchers for similar

[[Page 57921]]

services; community service or work experience; or job retention and 
supportive services (if such services are not otherwise available).
    Participant eligibility: At least 70 percent of the grant funds 
must be spent on TANF recipients or non-custodial parents of minor 
children receiving TANF assistance who: face two of three specified 
labor market deficiencies and who are long-term welfare recipients or 
who face termination from TANF within 12 months. Labor market 
deficiencies include a lack of a high school diploma or GED certificate 
and low reading or math skills, requiring substance abuse treatment for 
employment, and a poor work history.
    Up to 30 percent of the grant funds may be spent on individuals who 
are ``recent'' recipients of TANF assistance or noncustodial parents 
who have characteristics associated with long-term dependence such as 
school dropout, teen pregnancy, or poor work history.
Performance Bonuses
    Section 403(a)(5)(E) of the Act specifies that DOL will award $100 
million in performance bonuses in FY 2000 to those States which most 
effectively place hard-to-employ individuals in lasting employment at 
increased earnings.
Importance of Coordination
    Coordination and cooperation among State/county TANF agencies, 
Indian tribes, and the State and local WTW agencies will be a major 
factor in the success of this program and of the national welfare 
reform initiative. Hard-to-employ welfare recipients constitute a 
significant portion of the TANF population, and it is this population 
the WtW grants aim to serve.
    State workforce development systems will help implement WtW and 
assist welfare recipients to secure lasting employment. Key 
stakeholders in these systems include the PICs, local governmental 
entities, private sector employers, labor organizations, business and 
trade associations, education agencies, housing agencies, community 
development corporations, transportation agencies, community-based and 
faith-based organizations, disability community organizations, 
community action agencies, and colleges and universities. Cooperation 
among these diverse entities and actors will be critical for both 
program and data collection purposes.

III. Welfare-to-Work Data Collection Requirements

A. Joint DOL/DHHS Information Collection Strategy

    Because the TANF and the WtW programs are closely related in terms 
of statutory provisions, program goals, administrative 
responsibilities, and the population being served, DOL and DHHS 
established a working group to develop a coordinated implementation 
strategy. The DOL interim final rule, published November 18, 1997, was 
also coordinated with the Departments of Housing and Urban Development 
and Transportation.
    As a part of this coordinated effort, DOL and DHHS have developed a 
joint WtW information collection strategy. The purpose of the strategy 
is to assure an integrated approach to WtW data collection, develop a 
common data format to facilitate data transmission and use, minimize 
grantee reporting burden, and make the most effective use of Federal 
resources.
    Under this strategy--
     DHHS will issue participant data reporting requirements, 
through regulations, applicable to State and Tribal WtW formula grant 
programs. The reporting requirements will apply to all WtW participants 
in these formula grant programs and will be reported to DHHS by the 
State and the Tribe in a format provided by DHHS. The data required to 
be reported includes the disaggregated ``TANF'' data in sections 
411(a)(1)(A)(i) through (xvii), the disaggregated ``WtW'' data in 
section 411(a)(1)(A)(xviii), and the aggregated ``WtW'' data in 
sections 411(a)(2) through (4) and (6). (For a discussion of the 
specific data elements, see ``What data must States and Tribes file on 
individual participants? (Sec. 276.3)'' below.)
     DOL will specify participant reporting requirements 
applicable to competitive grant programs. Like the requirements for 
States and Tribes, the reporting requirements will apply to all 
individuals enrolled in the WtW competitive grant program. The data 
will be reported to DOL by the grantee unless the State agrees to 
compile and transmit the data to DHHS. DHHS and DOL will jointly 
develop a common data format and specifications to facilitate this 
complementary reporting.
     DOL will specify financial reporting requirements for both 
formula and competitive grantees.
     DOL will also specify additional targeting, eligibility, 
and other data elements for both formula and competitive grantees under 
its general administrative authority. These additional data elements 
will provide data to verify that the eligibility and targeting 
requirements in section 403(a)(5)(C)(ii) have been met.
     The data elements in this interim final rule will be 
consolidated with the data elements specified by DOL into a common 
reporting form. DOL and DHHS will publish a Paperwork Reduction Act 
Notice on the common reporting form in the Federal Register in the near 
future.
     DHHS and DOL will issue guidance and facilitate technical 
assistance on the WtW data collection strategy, describing the 
interface between the population served and the data reporting systems, 
emphasizing the need to share information between service delivery 
components and levels, and identifying options for State and Tribes in 
reporting these data.

B. Section by Section Discussion of the Interim Final Rule

What Does This Part Cover? (Sec. 276.1)
    This section specifies the scope and content of part 276, including 
what information we will collect from certain States and Tribes on 
individuals and families receiving services under WtW grants and the 
electronic filing and sampling requirements. Although the WtW data 
reporting provisions are a part of the overall data collection and 
reporting requirements specified in section 411 of the Act, we have 
published them on a temporary basis in a separate part of the 
regulations (45 CFR part 276) in order to avoid confusion with the 
provisions of the TANF Notice of Proposed Rulemaking that was published 
on November 20, 1997. (45 CFR part 275.) The WtW data collection and 
reporting requirements set forth in part 276 will be incorporated into 
45 CFR part 275 (Data Collection and Reporting Requirements) when the 
TANF regulations are finalized and into 45 CFR part 286 (Tribal Data 
Collection and Reporting Requirements) when regulations are finalized 
for Tribal TANF programs. We have included in this interim regulation 
only those provisions which are necessary to implement the WtW 
reporting requirements.
What Definitions Apply to This Part? (Sec. 276.2)
    Three of the five definitions in this section are commonly used 
acronyms such as ACF, TANF, and WtW. The term ``State'' and ``the Act'' 
are also defined.
    For purposes of this regulation, WtW means only those services or 
activities provided under a State formula grant

[[Page 57922]]

pursuant to section 403(a)(5)(A) of the Act or under an Indian tribal 
formula grant pursuant to section 412(a)(3) of the Act. See discussion 
relative to Sec. 276.3.
What Data Must States and Indian Tribes File on Individuals 
Participating in the WtW Program? (Sec. 276.3)
    This section specifies what WtW participant and expenditure data 
States and Indian tribes must collect and report to DHHS.
    Section 276.3(a) requires States and Indian tribes receiving a WtW 
formula grant to collect monthly, and submit quarterly, information on 
all individuals and families participating in the States' or Tribes' 
WtW formula grant program. ``All individuals and families participating 
in the WtW program'' means those persons who--
    1--Currently receive WtW and TANF assistance;
    2--Currently receive WtW and formerly received TANF assistance;
    3--Currently receive WtW and would be eligible for TANF assistance 
except for the time limit on receipt of such assistance; and
    4--Currently receive WtW and are non-custodial parents of a child 
(children) receiving TANF assistance.
    We have taken this approach based on our reading of section 411 of 
the Act (data collection and reporting) and our interest in an 
inclusive approach to assessing and evaluating this program. As 
originally enacted, section 411(a) required States to report data on 
participants ``receiving assistance under the State program funded 
under this part* * *'', which in the TANF NPRM has been interpreted to 
mean ``under the TANF program''. However, as amended by the Balanced 
Budget Act, section 411(a) was also intended to require States to 
report new data elements for WtW program participants.
    Section 411 does not address formula or competitive grants or 
grantees per se; it neither specifically includes or excludes them. One 
interpretation of section 411 would require reporting of WtW data on 
TANF recipients participating in any WtW program regardless of whether 
they are receiving services from a formula grantee, a subgrantee, or a 
competitive grantee. This interpretation, however, would exclude 
information on a significant number of WtW participants, e.g., former 
TANF recipients who continue to receive WtW services, non-custodial 
parents, and persons who would be eligible to receive TANF assistance 
except for the time limit on receipt of such assistance. Clearly, 
exclusion of these populations makes a full evaluation of the WtW 
grants more difficult and the findings less accurate or complete.
    An alternate reading of the ``receiving assistance under the State 
program funded under this part* * *'' language in section 411 would 
provide for the collection of information on all State formula grant 
WtW participants. This interpretation results from the fact that with 
the passage of the Balanced Budget Act of 1997, there are now two State 
grant programs funded under part IV-A of the Act. We believe the 
references to State programs can be read to cover recipients of both 
State TANF and WtW assistance. However, this interpretation would not 
provide for reporting on all WtW participants, namely those served by 
competitive grantees, since these grantees are not part of a State 
program funded under part A of the Act.
    We have determined that the second approach is a more preferable 
reading of the statute since it would allow the collection of 
information on all WtW participants in the State and Tribal formula 
grant programs and, thus, will yield information most useful to States, 
Tribes, and other grantees as well as DOL, DHHS and the Congress. Our 
decision to adopt this more inclusive approach forms the basis of the 
joint DOL/DHHS information strategy discussed above in which DHHS will, 
among other activities, require WtW information from State and Tribal 
formula grantees, and DOL will collect data from competitive grantees. 
Thus, through this combined DHHS/DOL approach, we will be able to 
collect data on all WtW participants while minimizing the burdens on 
grantees.
    In paragraph (b), we specify that only those Tribes administering 
both TANF and WtW formula grants are required to report the information 
in part 276. Although a wide range of Indian tribes are eligible to 
receive WtW grants, section 412(g) of the Act requires only those 
Tribes with an approved tribal assistance plan (TANF) to report the 
data required in section 411.
    Paragraph (c) of this section specifies the data elements that DHHS 
is requiring States to report through this regulation. These data are 
only the disaggregated participant information (not the aggregated 
data) in the Emergency TANF Data Report (ACF Form 198, issued September 
30, 1997, OMB Number 0970-0164, expires September 30, 1998) and the 
information in the WtW Data Report specified in this interim final 
rule. (As noted above, these DHHS data elements plus the additional 
data elements specified by DOL will be collected through the use of a 
common reporting form.)
    Paragraph (d) of this section specifies the data elements that the 
Tribes must report, i.e., only the disaggregated participant 
information (not the aggregated data elements) in the Interim Tribal 
TANF Data Report (ACF Form 343, issued May 6, 1998, OMB Number 0970-
0176, expires December 31, 1998) and the information in the WtW Data 
Report specified in this interim final rule.
    Paragraph (e) of this section describes the WtW Data Report. As a 
specific resource and reference for this discussion, we have published 
three appendices at the end of the regulation text: Appendix A contains 
the specific data elements we will collect as well as the instructions 
for coding these data; appendix B contains a summary of the applicable 
sampling specifications; and appendix C contains a Statutory Reference 
Table. These appendices will be published in the Federal Register as a 
part of the final rule but will not be codified in the Code of Federal 
Regulations.
Data Elements--Appendix A
    The WtW Data Report consists of two sections; except for the eight 
items discussed below, all elements are required by statute.
     Section One consists of 21 disaggregated data elements. It 
includes identifying information, such as the individual's Social 
Security Number, and data on wages, employment activities, and 
terminations.
     Section Two consists of 10 aggregated data elements. It 
includes information on the total number of participants, families, 
noncustodial parents, and the total number of participants and families 
terminated. These data are required by sections 411(a)(2) through (4) 
and section 411(a)(6).
    See the Statutory Reference Table in Appendix C which lists the 
specific statutory authority for each data element.
Non-statutory Requirements--Appendix A
    A. The following six data elements 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. Tribal Code
3. Reporting Month
4. Stratum
5. Case Number--TANF
6. Disposition

    B. The Social Security Number is readily available. States use 
Social

[[Page 57923]]

Security Numbers to carry out the requirements of the Income and 
Eligibility Verification System under sections 409 and 1137 of the Act. 
States may use this number to share information between agencies. We 
would use this information for statistical purposes only, e.g., for 
evaluation of the WtW program as required in section 413(j) of the Act 
and research as required in section 413(g) of the Act.
    C. Section 411(a)(1)(A)(xviii)(III) requires reporting of the wages 
paid to any participant in subsidized employment or on-the-job 
training. For more accurate data, we have broken ``wages paid'' in two 
elements: average hourly wages and average hours of work.
    We recognize that requiring States and Tribes to report the 
disaggregated Emergency TANF data elements on all WtW participants may 
be viewed as burdensome and may appear somewhat duplicative without new 
coordination efforts. However, section 411(a)(1) of the Act requires 
that all enumerated data elements be reported for affected individuals 
and families. Therefore, States and Tribes must report the 
disaggregated Emergency TANF data elements in all WtW participants.
    In addition, it should be noted that the ``TANF data elements'' in 
the Emergency TANF Data Report will be superseded by the reporting 
requirements in the TANF final rule. To the extent that these data 
elements are revised in the final rule, States and Tribes may need to 
amend their reporting systems to meet the modified requirements.
    We have not specified how States and Tribes will collect and report 
the data specified in this interim final rule which will be a part of 
the common reporting form. After further discussion and consultation 
with State TANF and workforce agencies, Tribes, PICs, and others, DHHS 
and DOL plan to facilitate technical assistance in identifying 
effective approaches to linking and merging TANF and WtW data.
    Our expectation, however, is that one State or Tribal agency will 
be responsible for reporting all of the data to us. Several preliminary 
options have been identified:
     A State may collect intake and WtW information from the 
participant and obtain the TANF information from the TANF program.
     How States report data offers an option for reduced 
reporting burden. For example, States and Tribes which report universe 
data on their TANF recipient population could report universe data on 
WtW participants. DHHS would match these data sets at the federal 
level.
     In the early days of implementing the program, it may be 
more feasible and efficient for States and Tribes to obtain both the 
TANF and WtW data from the participant.
Must the Data be Filed Electronically? (Section 276.4)
    This section requires that State and Tribes submit data 
electronically. DHHS will develop and provide a pc-based software 
package for State and Tribal use. This will facilitate electronic data 
entry and transmission for each quarterly report.
    We have included this requirement for the following reasons. OMB 
requires Federal agencies to evaluate whether the burden on respondents 
can be reduced by the use of automatic, electronic, mechanical, or 
other technological collection techniques. DHHS, along with other 
federal agencies, has for many years encouraged programs and grantees 
to use such non-paperwork approaches to meet data collection 
requirements. We believe all State and Tribes administering the WtW 
program have electronic reporting capability.
    Therefore, we conclude that electronic submission of these data 
will not be a burden on States and that requiring electronic submission 
of these reports will reduce paperwork and administrative burden, be 
less expensive and time-consuming, and be more efficient for both 
States and the Federal government.
May States and Tribes Use Sampling? (Section 276.5)
    Section 411(a)(1)(B) of the Act permits States and Tribes to meet 
the disaggregated data collection and reporting requirements by 
submitting data based on the use of a scientifically acceptable 
sampling method approved by DHHS. (States and Tribes may not submit 
aggregated data based on a sample.)
    We have provided 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 ACF statistical policy. (See 
appendix B for a summary of the WtW sampling specifications.)
    Various options are available to States and Tribes if they choose 
to provide data based on sampling. A State (or Tribe) may draw a WtW 
sample independently from the TANF sample, or it may choose to use a 
combined, stratified TANF-WtW sample in which WtW families are 
identified by their individual stratum code, e.g., an integrated 
sample. DHHS will approve a State's (Tribe's) sampling plan including 
sample sizes, sampling frames, and use of stratified and non-stratified 
samples. In addition, States and Tribes may wish to consider the 
following:

--If a State (or Tribe) transmits the Emergency TANF Data Report for 
its entire caseload, it will not need to re-transmit these data for WtW 
families.
--If a State (or Tribe) transmits the Emergency TANF Data Report based 
on a separate sample of its monthly caseload, it must report the 
disaggregated data from the Emergency TANF Data for all WtW families as 
part of its WtW transmission.
--If a State (or Tribe) transmits data based on a combined TANF/WtW 
sample design, it will not need to re-transmit the TANF data as it will 
be a part of the combined transmission.
Applicability of Other Statutory Provisions
    As mentioned earlier, we have addressed in this rule only those 
topics specific to WtW and have not included items that were addressed 
in the TANF Notice of Proposed Rulemaking, such as when reports are 
due, requirements for complete and accurate data, and the penalty on 
States for failure to submit timely reports.
    Since WtW data collection is not separate from TANF data collection 
activity, but is an integral part of such activity, the same statutory 
time frames, compliance, and penalty provisions that apply to TANF also 
apply to the WtW data collection activity. Currently, we are 
considering the issues raised by the comments to the TANF NPRM and will 
address them in the final TANF rule. It would be inappropriate for us 
to impose policies now on an interim final basis.
    Further, the statute in section 409 (a)(2) of the Act generally 
provides enough authority to impose any necessary penalties (i.e., for 
failure to submit quarterly reports within 45 days after the end of the 
quarter) that might be required before the TANF rules are finalized. 
(The penalty is taken against the State's family assistance grant.) We 
will address these matters in the final WtW rule.
    We welcome comments on any provisions of the TANF data collection 
sections in the NPRM (part 275) that may be problematic and any 
constructive suggestions that would improve the implementation of these 
WtW data reporting requirements.
    We are currently reviewing the comments on the TANF NPRM and plan 
to publish a final rule. After the close of

[[Page 57924]]

the comment period on this interim final rule, we will publish a final 
rule, the content of which will be codified in the Code of Federal 
Regulations as a part of the TANF regulations. Part 276 will be 
vacated.

IV. 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 
interim final rule is consistent with these priorities and principles.
    The Executive Order encourages agencies, as appropriate, to provide 
the public with meaningful participation in the regulatory process. 
With DOL, we have held consultations with national organizations 
representing State and local government and PICs, representatives of 
State agencies administering the WtW and the TANF programs, and other. 
We have considered their comments and suggestions in preparing this 
rule. Although this interim final rule is effective upon publication, 
we are providing an opportunity for a comment period of 60 days. We 
will consider all comments received in response to this rule in 
determining what changes are appropriate before issuing a final rule.
    We do not believe that this regulatory action will:
     Have an annual effect on the economy of $100 million 
dollars or more or any adverse effects on the efficient functioning of 
the economy, private market (including productivity, employment, and 
competitiveness), health, safety, the natural environment, individuals, 
States, Indian tribes, and other entities;
     Create a serious inconsistency or otherwise interfere with 
an action taken or planned by another agency;
     Materially alter the budgetary impact of entitlements, 
grants, user fees, or loan programs or the rights and obligations of 
recipients thereof; or
     Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
Executive Order 12866.
    The statute contains specific data collection requirements. The 
data elements in the WtW Data Report do not go beyond those explicitly 
stated in the statute, except for those necessary for the 
administration of a data collection system, the individual's Social 
Security Number, and one breakout item. The Social Security Number may 
be helpful to States and Tribes in sharing participant data between the 
TANF and the WtW programs.
    Overall, our assessment of this interim final rule indicates that 
it represents the least burdensome approach to the collection of these 
data.

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 a maximum of 50 States, the District of Columbia, 
certain Indian tribes, and certain territories. Therefore, the 
Secretary certifies that this rule will not have a significant impact 
on small entities.

C. Paperwork Reduction Act

    As required by the Paperwork Reduction Act, we have, under 
emergency procedures, submitted these WtW data collection requirements 
to OMB for review and approval for an initial 180 day period. We are 
concurrently using this interim final rule as a vehicle for seeking 
comment from the public on these information collection requirements as 
part of the regular OMB review and approval process. This concurrent 
review process will assure continuity of data collection and reporting 
after expiration of the 180 day approval obtained under emergency 
procedures. Affected parties do not have to comply with the information 
collection requirements until we publish the control numbers assigned 
to the requirements by OMB under the Paperwork Reduction Act of 1995.
    This rulemaking requires that States report quarterly, on all WtW 
participants, the WtW data elements in this rule and the disaggregated 
TANF data elements in the Emergency TANF Data Report (Form ACF-198, OMB 
Number 0970-0164, expires September 30, 1998). Indian tribes must also 
report quarterly, on all WtW participants, the WtW data elements in 
this rule and the disaggregated TANF data elements in the Interim 
Tribal TANF Data Report (Form ACF-343, issued May 6, 1998, OMB Number 
0970-0176, expires December 31, 1998). In order to facilitate the 
review and public comment on the WtW reporting requirements, we have 
published the WtW data elements for the quarterly report as appendix A.
    The WtW Data Report consists of two sections: one section of 22 
disaggregated case-record data elements and one section of 10 
aggregated data elements. We need this information collection to meet 
the requirements of section 5001(e) of the Balanced Budget Act of 1997, 
which amended section 411(a) (Data Collection and Reporting) of the 
Social Security Act.
    We do not believe the requirement to report the TANF data elements 
and the WtW data elements for individuals participating in the WtW 
program necessarily creates a duplicate reporting burden. It does, 
however, offer an opportunity for coordination between State and local 
WtW formula grant agencies and TANF agencies. As a part of the joint 
WtW information strategy, DHHS and DOL will issue guidance and 
facilitate technical assistance to help States and Tribes meet these 
requirements.
    To assist grantees in reporting electronically, we will provide a 
pc-based software package to facilitate data entry and transmission for 
each quarterly report. We welcome comments on how the burden can be 
further reduced.
    The maximum number of respondents for this data collection are the 
50 States of the United States, the District of Columbia, Guam, Puerto 
Rico, and the United States Virgin Islands. (Note: Not all States have 
currently elected to receive WtW formula grants.) We also expect 
approximately seven Indian tribes to operate both a TANF program and a 
Welfare-to-Work program and become respondents.
    The estimated reporting burden in this rulemaking applies only to 
the data elements specified in this regulation. DOL and DHHS will 
estimate the total burden for the common reporting form in the 
Paperwork Reduction Act Notice to be published in the new future.
    In calculating the estimates of the reporting burden, we assumed 
that most States (but no Indian tribes), would collect the data by 
means of a sample.
    The annual burden estimates include any time involved collecting 
information, pulling records from files, abstracting information, 
returning records to files, assembling any other material necessary to 
provide the requested information, coordinating with other agencies, 
and transmitting the information.
    In developing the estimate of paperwork burden, we consulted with 
knowledgeable Federal officials and researched the burden estimates for 
similar data collections that OMB has approved or is considering.

[[Page 57925]]



----------------------------------------------------------------------------------------------------------------
                                                                     Number of    Average burden
            Instrument or requirement                Number of     responses per     hours per     Total burden
                                                    respondents     respondent       response          hours
----------------------------------------------------------------------------------------------------------------
Welfare-to-Work Data Report--Sec.  276.3 (e)....              61               4             164          40,048
Disaggregated data from the Emergency TANF Data
 Report (ACF-198) and from the Interim Tribal
 TANF Report (ACF-343)--Sec.  276.3 (c) and (d).              61               4             248          60,512
----------------------------------------------------------------------------------------------------------------

    Estimated Total Annual Burden Hours: 100,560.
    The estimate for reporting the disaggregated TANF data from the 
Emergency TANF and the Interim Tribal TANF Data Reports (as specified 
in Sec. 276.3 (c) and (d)) is more than one-third less than the burden 
hours for reporting all data in these reports. Earlier, we estimated an 
annual total of 97,416 hours to report the Emergency TANF data; since 
we are requiring that States report only the disaggregated TANF data 
(not the aggregated data) on WtW participants, we estimate the total 
annual burden hours to be 60,512 hours.
    We encourage State, Indian tribes, organizations, individuals, and 
other parties to submit comments in writing regarding the information 
collection requirements to the Administration for Children and 
Families, Office of Information Services, Division of Information 
Resource Management Services, 370 L'Enfant Promenade SW., Washington, 
DC 20447, Attn: ACF Reports Clearance Officer.
    To ensure that public comments have maximum effect in developing 
the final regulations, we urge that each comment clearly identify the 
specific section or sections of the interim final rule or the WtW 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 this collection of 
information in:
     evaluating whether the 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 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.
    As discussed earlier, in order to expedite the collection of 
information contained in this interim final rule, we have concurrently, 
on a separate track, requested an initial 180 day approval under OMB's 
emergency processing procedures. OMB is required to make a decision on 
this emergency request within 15 days.
    We encourage States, Indian tribes, organizations, individuals, and 
other parties to submit comments in writing regarding the emergency 
collection requirements 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.

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 interim final 
rule.
    We have determined that the interim final rule 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.

E. Congressional Review

    This interim final rule is not a ``major'' rule as defined in 5 
U.S.C., Chapter 8.

F. Effective Data and Absence of Notice and Comment

    DOL has awarded WtW grants and State and Indian tribes have begun 
implementing these grants. Pursuant to 5 U.S.C. 553(b)(B), we have 
determined that the statutory mandate to begin information collection 
as soon as States and Tribes begin implementing the grants constitutes 
good cause for waiving notice and comment proceedings.
    In addition we have determined, pursuant to 5 U.S.C. 553(d)(3), 
that the WtW statutory mandate provides good cause for waiving the 
customary requirement to delay the effective date of a final rule for 
30 days following its publication. The short statutory duration of the 
WtW grants program underscores the importance of beginning WtW 
information collection at the earliest possible date.
    Accordingly, the issuance of a proposed rule, rather than an 
interim final rule, or delaying the effective date for 30 days, would 
be contrary to the public interest. This interim final rule sets a 
comment period to elicit any concerns raised by the rule. We have 
limited this comment period to 60 days so that any input is received in 
time for us to review it in considering any revisions to Part 276 while 
the WtW grants program is still in its early stages of operation.

List of Subjects in 45 CFR Part 276

    Administrative practice and procedure, Employment, Manpower 
training programs, Penalties, Public assistance programs, Reporting and 
recordkeeping requirements, Vocational education.

(Catalogue of Federal Domestic Assistance Programs: 17.253 
Employment and Training Assistance--Welfare-to-Work Grants to States 
and Local Entities for Hard-to-Employ Welfare Recipient 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; and 93.595-Welfare Reform Research, Evaluations and National 
Studies)


[[Page 57926]]


    Dated: June 4, 1998.
Olivia A. Golden,
Assistant Secretary for Children and Families.

    Approved: July 28, 1998.
Donna E. Shalala,
Secretary, Department of Health and Human Services.
    For the reasons set forth in the preamble, part 276 is added to 45 
CFR chapter II as follows:

PART 276--DATA COLLECTION AND REPORTING REQUIREMENTS FOR STATES AND 
INDIAN TRIBES UNDER WELFARE-TO-WORK GRANTS

Sec.
276.1  What does this part cover?
276.2  What definitions apply to this part?
276.3  What data must States and Indian Tribes file on individuals 
and families participating in the WtW program?
276.4  Must the data be filed electronically?
276.5  May States and Indian tribes use sampling?

    Authority: 42 U.S.C. 603 and 611.


Sec. 276.1  What does this part cover?

    (a) This part explains what information we will collect from States 
and Indian tribes on individuals and families participating in the 
Welfare-to-Work (WtW) grants program.
    (b) This part also specifies electronic filing and sampling 
requirements.


Sec. 276.2  What definitions apply to this part?

    The following definitions apply to this part:
    ACF means the Administration for Children and Families.
    Act means Social Security Act.
    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.
    TANF means The Temporary Assistance for Needy Families Program.
    WtW program means the Welfare-to-Work grants authorized by sections 
403(a)(5)(A) or 412(a)(3) of the Act.


Sec. 276.3  What data must States and Indian tribes file on individuals 
and families participating in the WtW program?

    (a) Each State that receives a grant under section 403(a)(5)(A) 
must collect on a monthly basis, and file on a quarterly basis, 
information on all individuals and families participating in the WtW 
program.
    (b) Each Indian tribe that receives a grant under both section 
412(a)(1) and section 412(a)(3) must collect on a monthly basis, and 
file on a quarterly basis, information on all individuals and families 
participating in the WtW program.
    (c) States must file the disaggregated information in the Emergency 
TANF Data Report (TANF-ACF-PI-97-6, issued September 30, 1997, OMB 
Number 0970-0164, expires September 30, 1998) and the WtW Data Report.
    (d) Indian tribes must file the disaggregated information in the 
Interim Tribal TANF Data Report (ACF Form 343, issued May 6, 1998, OMB 
Number 0970-0176, expires December 31, 1998) and the WtW Data Report.
    (e) The WtW Data Report consists of two sections:
    (1) Section One consists of disaggregated data on individuals. It 
specifies identifying and demographic data, such as the individual's 
Social Security Number and information on employment and terminations. 
It also includes total dollar expenditures associated with an 
individual's participation in specified work activities.
    (2) Section Two consists of aggregated data on families 
participating in the WtW program. This section also includes two items 
of expenditure data.


Sec. 276.4  Must the data be filed electronically?

    Each State and Indian tribe must file the information required in 
this part electronically, based on format specifications we will 
provide.


Sec. 276.5  May States and Indian tribes use sampling?

    (a) Each State and Indian tribe may report the disaggregated data 
on all WtW participants or on a sample of participants selected through 
the use of a scientifically acceptable sampling method that we have 
approved. States and Tribes may not use a sample to generate the 
aggregate data.
    (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.
    Note: The following appendices will not appear in the Code of 
Federal Regulations.

Appendices

Appendix A--Welfare-to-Work Data Report

Section One: Disaggregated Data Collection for Families and 
Individuals Participating in the WtW Grant Program
Section Two: Aggregated Data Collection for Families and Individuals 
Participating in the WtW Grant Program

Appendix B--WtW Sampling Specifications

Appendix C--Statutory Reference Table for the Welfare-to-Work Data 
Report

Section One: Disaggregated Data Collection For Families and 
Individuals Participating in the WtW Grant Program
Section Two: Aggregated Data Collection For Families and Individuals 
Participating in the WtW Grant Program

WTW Interim Final Rule Appendix A--

Welfare-to-Work Data Report--Section One Disaggregated Data 
Collection for Families and Individuals Participating in the 
Welfare-to-Work Grant Program

Instructions and Definitions

    General Instruction: Under the statute, States and certain 
Indian Tribes are required to collect data on families and 
individuals participating in the Welfare-to-Work (WtW) Program. 
These data are to be collected on a monthly basis and reported on a 
quarterly basis to the Secretary of the Department of Health and 
Human Services. (DHHS). Quarterly reports are due 45 days after the 
close of the quarter.
    The State or Tribe should collect and report data for each data 
element, unless explicitly instructed to leave the field blank.
    State FIPS Code: Enter your two-digit State code from the 
following listing. These codes are the standard codes used by the 
National Bureau of Standards. Tribes should enter ``00'' for this 
field.

------------------------------------------------------------------------
                             State                                 Code
------------------------------------------------------------------------
Alabama........................................................       01
 Alaska........................................................       02
American Samoa.................................................       60
Arizona........................................................       04
Arkansas.......................................................       05
California.....................................................       06
Colorado.......................................................       08
Connecticut....................................................       09
Delaware.......................................................       10
Dist. 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

[[Page 57927]]

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
------------------------------------------------------------------------

    Tribal Code: For Indian Tribes, enter the three-digit Tribal 
code that represents your Tribe (See attached appendix for a 
complete listing of Tribal Codes.) States should leave this field 
blank.
    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.
    Stratum: Guidance: States and Tribes may submit data for their 
entire caseload or for a sample of families (cases). If a State or 
Tribe opts to provide data for its entire caseload, enter the same 
stratum code (any two-digit number) for each WtW family. All WtW 
families selected in a 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.
    Instruction: Enter the two-digit stratum code.
    Case Number--TANF: Enter the number assigned by the State TANF 
agency or Tribal TANF grantee to uniquely identify the family 
participating in the WtW Programs. If the WtW participant is no 
longer a member of a TANF family, use the case number previously 
assigned to the TANF family. For a non-custodial parent 
participating in the WtW Program, use the TANF case number for the 
family that includes his(her) child.
    Disposition--WtW: Guidance: A family that did not have any 
family member participating in the WtW Program for the reporting 
month but was included in the monthly sample frame is ``listed in 
error.''
    Instruction: Enter one of the following codes for the WtW 
family.
1 = Data collection completed
2 = Not subject to data collection/listed in error

Person Level Data

    This section allows for coding up to six family members 
participating in the WtW Program. If, for the reporting month, a 
noncustodial parent is participating in WtW activities funded under 
section 403(a)(5)(A) or 412 (a)(3), the noncustodial parent must 
also be reported in this section as a member of the related TANF 
family.
    7. Social Security Number: Enter the participant's nine-digit 
Social Security Number in the format nnnnnnnnn.

Employment Data

    For participants who are employed during the reporting month, 
complete this section.
    8. Average Hourly Wages: If the family member is engaged in 
subsidized employment or on-the-job training under the WtW Program 
or if the family member's participation in the WtW activity was 
terminated during the reporting month due to obtaining employment, 
enter the average hourly wages paid (e.g., $9.50 per hour) for the 
reporting month.
    9. Average Hours of Work: If the family member is engaged in 
subsidized employment or on-the-job training under the WtW Program, 
enter the average hours of work per week for the reporting month.
    10. Wage Subsidy: If the family member is engaged in subsidized 
employment or on-the-job training under the WtW Program, enter the 
total amount of any wage subsidy provided from Federal or State 
(Tribal) funds for the reporting month.

Data on Amount Expended by Type of Activity

    Enter the total dollar expenditures for the reporting month that 
are associated with the individual's participation in each of the 
WtW activities listed below. Estimates based on ``Generally Accepted 
Accounting Principles'' for cost allocation processes are 
acceptable. These costs must include Federal and State expenditures 
and are exclusive of administrative costs.
    11. Community Service: 
    12. Work Experience Program:
    13. Public Sector Employment Wage Subsidy:
    14. Private Sector Employment Wage Subsidy:
    15. On-the-Job Training:
    16. Job Readiness:
    17. Job Placement Services:
    18. Post-Employment Services:
    19. Job Retention Services:
    20. Supportive Services:

Termination Data

    If the family member's participation in the WtW activity was 
terminated during the reporting month, complete the questions in 
this section. Otherwise, leave these data elements blank.
    21. Reason for Termination of Participation in Welfare-to-Work 
Activity: If the family member's participation in the WtW activity 
was terminated during the reporting month, enter the one-digit code 
that indicates the reason for termination.

1 = Obtained unsubsidized employment
2 = Obtained subsidized employment
3 = Engaged in another work activity (as defined under Section 
407(d) of Act for the TANF Program)
4 = Engaged in other training
5 = Increased wages
9 = Other

Welfare-to-Work Data Report--Section Two Aggregated Data Collection 
for Families and Individuals Participating In the Welfare-to-Work 
Grant Program

Instructions and Definitions

    1. State FIPS Code: Enter your two-digit State code. Tribes 
should enter ``00'' for this field.
    2. Tribal Code: For Indian Tribes only, enter the three-digit 
Tribal code that represents your Tribe. States 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., second quarter of 1997 is 
entered as ``19972''.)

Participating Families

    For purposes of completing this report, include all families and 
individuals participating in services under the Welfare-to-Work 
(WtW) Program. All counts of families and individuals should be 
unduplicated monthly totals.
    4. Total Number of Families: Enter the number of families that 
participated in the State (Tribal) WtW Programs for each month of 
the quarter.

A. First Month:
B. Second Month:
C. Third Month:

    5. Total Number of Participants: Enter the total number of 
participants in the State (Tribal) WtW Program for each month of the 
quarter.

A. First Month:
B. Second Month:
C. Third Month:

    6. Total Number of Non-Custodial Parents: Enter the total number 
of non-custodial parents participating in the State (Tribal) WtW 
Programs for each month of the quarter.

A. First Month:
B. Second Month:
C. Third Month:

    7. Total Number of Families Terminated: For each month of the 
quarter, enter the number of families whose participation in the 
State (Tribal) WtW Program was terminated.

A. First Month:
B. Second Month:
C. Third Month:

    8. Total Number of Participants Terminated: For each month of 
the quarter, enter the total number of participants whose 
participation in the State (Tribal) WtW Program was terminated.

A. First Month:
B. Second Month:
C. Third Month:

    9. Total Number of Non-Custodial Parents Terminated: Enter the 
total number of non-custodial parents whose participation in the 
State (Tribal) WtW Program was terminated for each month of the 
quarter.

A. First Month:
B. Second Month:
C. Third Month:

Expenditures

    10. Total Expenditures: Enter the dollar value of all 
expenditures under the State (Tribal) WtW Program for the quarter. 
Round the amount of expenditure to the nearest dollar.
    11. Administrative Cost: Enter the total dollar value of the WtW 
funds that were used

[[Page 57928]]

to cover administrative cost or overhead incurred in the WtW 
Programs for the quarter.

Appendix B--WtW Sampling Specifications

    Title IV-A of the Social Security Act (Act), as amended by the 
Personal Responsibility and Work Opportunity Reconciliation Act of 
1996, establishes the Temporary Assistance for Needy Families (TANF) 
program, which contains the data collection and reporting 
requirements for the State and Indian Tribal TANF Programs. The 
statute also gives States and Indian Tribes the authority to use 
scientifically acceptable sampling methods to comply with the data 
collection and reporting requirements of Section 411(a) of the Act. 
The Balanced Budget Act of 1997 amended the TANF program and 
established the Welfare-to-Work (WtW) program to help those welfare 
recipients with the greatest barriers to employment begin engaging 
in work activities and move from welfare assistance to permanent 
employment.
    As amended, section 411(a) establishes as the WtW data 
collection and reporting requirements that all 411 (a) data (i.e., 
both the existing TANF data elements and the newly-added WtW data 
elements) must be reported for families and individuals 
participating in services funded under the WtW Program.
    Listed below are the basic sampling specifications that States 
and Tribes must use until issuance of the final regulation. If a 
State (Tribe) opts to use sampling procedures and sample sizes, it 
must use an acceptable sampling methodology and sufficient large 
samples to make estimates over various sub-populations, e.g., the 
WtW expenditures by type of WtW service.
    12. Sample Methodology
    The standard statistical methodologies for sample selection are 
methods that conform to principles of probability sampling, e.g., 
for WtW, each family in the population of interest has a known, non-
zero probability of selection into the sample and computational 
methods of estimation lead to a unique estimate. Suggested methods 
of sample selection include systematic random sampling and simple 
random sampling.
    13. Sample frame(s)
    For the families participating in services under the State 
(Tribal) WtW Program (i.e., the active sample), the monthly WtW 
sample frame must consist of an unduplicated list of all families 
with an individual(s) participating in services under the State 
(Tribal) WtW program.
    14. Sample Size Requirement
    If a State (Tribe) opts to report data for a sample of WtW 
families, sample size must be sufficiently large to obtain estimate 
with relative high precision. Listed below are the sample size 
requirements.
    a. The minimum annual required sample size for families 
participating in services under the State (Tribal) WtW Program 
(i.e., the active WtW sample) is 1600 families. The 1600 families 
represents the number of case months for which data is collected and 
reported out of the total number of case months for which families 
participated in WtW services; (e.g., if a State has an average 
monthly WtW caseload of 1,000 families, it has a total of 12,000 
case months).
    b. The Statute requires States (Tribes) to collect data on a 
monthly basis and report data on a quarterly basis. Therefore, 
States (Tribes) must construct a sample frame for each month in the 
annual sample period and select approximately one-twelfth of the 
annual sample size from each monthly sample frame (approximately 133 
families are to be selected each month from the above example).
    d. Insufficient number of families on listing to meet minimum 
sample size requirements:
    If a State (Tribe) does not have enough families participating 
in services under the WtW Program to meet the required annual sample 
size, the State (Tribe) should select 100% of such families.
    f. Each State (Tribe) must submit the total unduplicated number 
of families participating in services under the State (Tribal) WtW 
Program 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 C--WTW Interim Final Rule: Statutory Reference Table for the
                Welfare-to-Work Data Report--Section One
       [Disaggregated Data Collection for Families and Individuals
           Participating in the Welfare-to-Work Grant Program]
------------------------------------------------------------------------
        Data elements                        Justification
------------------------------------------------------------------------
1. State FIPS Code...........  Implicit in administering data collection
                                system.
2. Tribal Code...............  Implicit in administering data collection
                                system.
3. Reporting Month...........  Implicit in administering data collection
                                system.
4. Stratum...................  Implicit in administering data collection
                                system.
5. Case Number--TANF.........  Implicit in administering data collection
                                system.
6. Disposition--WtW..........  Implicit in administering data collection
                                system.
7. Social Security Number....  This information is readily available.
                                States use Social Security Numbers to
                                carry out the requirements of IEVS (see
                                sections 409(a)(4) and 1137 of the Act).
                                States may use it as the link with TANF
                                records. We need this information for
                                statistical purposes, such as evaluation
                                of the WtW Program as required in
                                section 413(j) and research as required
                                in section 413(g) of the Act.
8. Average Hourly Wages......  Section 411(a)(1)(A)(xviii)(III) requires
                                States to report the wages paid to any
                                participant in subsidized employment or
                                on-the-job training. For more accurate
                                reporting, ``wages paid'' is broken into
                                average hourly wages and average hours
                                of work.
9. Average Hours of Work.....  Section 411(a)(1)(A)(xviii)(III) requires
                                States to report the wages paid to any
                                participant in subsidized employment or
                                on-the-job training. For more accurate
                                reporting, ``wages paid'' is broken into
                                average hourly wages and average hours
                                of work. Section
                                411(a)(1)(A)(xviii)(IV).
10. Wage Subsidy.............  Required under section
                                411(a)(1)(A)(xviii)(III).
11. Community Service........  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
12. Work Experience Program..  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
13. Public Sector Employment   Section 411(a)(1)(A)(xviii) (I) and (II)
 Wage Subsidy.                  requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
14. Private Sector Employment  Section 411(a)(1)(A)(xviii) (I) and (II)
 Wage Subsidy.                  requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
15. On-the-Job Training......  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
16. Job Readiness............  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
17. Job Placement Services...  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).

[[Page 57929]]

18. Post-Employment Services.  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
19. Job Retention Services...  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
20. Supportive Services......  Section 411(a)(1)(A)(xviii) (I) and (II)
                                requires that States report the total
                                amount expended during the month for
                                each participant for each activity
                                specified in section 403(a)(5)(C)(i).
21. Reason for Termination of  Section 411(a)(1)(A)(xviii)(IV).
 Participation in WtW
 Activity.
------------------------------------------------------------------------


 Statutory Reference Table for the Welfare-to-Work Data Report--Section
                                   Two
 [Aggregated data collection for families and individuals participating
                  in the Welfare-to-Work Grant Program]
------------------------------------------------------------------------
        Data elements                        Justification
------------------------------------------------------------------------
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 Families...  Section 411(a)(6).
5. Total Number of             Section 411(a)(6).
 Participants.
6. Total Number of Non-        Section 411(a)(4).
 Custodial Parents.
7. Total Number of Families    Section 411(a)(6).
 Terminated.
8. Total Number of             Section 411(a)(6).
 Participants Terminated.
9. Total Number of Non-        Section 411(a)(4).
 custodial Parents Terminated.
10. Total Expenditures.......  Section 411(a)(3).
11. Administrative Cost......  Section 411(a)(2).
------------------------------------------------------------------------

[FR Doc. 98-28840 Filed 10-28-98; 8:45 am]
BILLING CODE 4184-01-P