[Federal Register Volume 64, Number 5 (Friday, January 8, 1999)]
[Proposed Rules]
[Pages 1159-1175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-202]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of Refugee Resettlement

45 CFR Parts 400 and 401

RIN 0970-AB83


Refugee Resettlement Program: Requirements for the Public/Private 
Partnership Program for Refugee Cash Assistance; and Refugee Medical 
Assistance

AGENCY: Office of Refugee Resettlement, Administration for Children and 
Families (ACF), HHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This proposed rule would amend current requirements governing 
refugee cash assistance and refugee medical assistance and would 
establish the refugee cash assistance program as a public/private 
partnership between States and local resettlement agencies.

DATES: Comments must be received by March 9, 1999.

ADDRESSES: Comments should be addressed to Toyo A. Biddle, Director, 
Division of Refugee Self-Sufficiency, Office of Refugee Resettlement, 
Administration for Children and Families, 370 L'Enfant Promenade SW., 
6th Floor, Washington, DC 20447.
    Agencies and organizations are requested to submit comments in 
duplicate. While we are soliciting comments on all aspects of the 
proposed rule, we would particularly appreciate your feedback on the 
time periods allowed for implementation.
    Comments will be available for public inspection, beginning 
approximately one month after publication, at the above address on 
Monday through Friday of each week from 9:30 a.m. to 4 p.m., except 
Federal holidays. Although we will not be able to acknowledge or 
respond to comments individually, in preparing the final rule, we will 
respond to comments in the preamble to the final rule.

FOR FURTHER INFORMATION CONTACT: Toyo Biddle, (202) 401-9250, or 
Barbara Chesnik, (202) 401-4558.

SUPPLEMENTARY INFORMATION:

[[Page 1160]]

Background

    The Refugee Act of 1980 amended the Immigration and Nationality Act 
(INA) to create a domestic refugee resettlement program to provide 
assistance and services to refugees resettling in the United States. 
With the enactment of this legislation, the Office of Refugee 
Resettlement (ORR) issued a series of regulations, at 45 CFR part 400, 
to establish comprehensive requirements for a State-administered 
Refugee Resettlement Program (RRP), beginning with the publication on 
September 9, 1980 (45 FR 59318) of a regulation governing State plan 
and reporting requirements. Subsequent regulations covered cash and 
medical assistance and Federal funding, published March 12, 1982 (47 FR 
10841); grants to States, child welfare services (including services to 
unaccompanied minors), and Federal funding for State expenditures, 
published January 30, 1986 (51 FR 3904); cash and medical assistance, 
requirements for employability services, job search, and employment, 
and refugee social services published February 3, 1989 (54 FR 5463); 
and requirements for employability services, job search, employment, 
refugee medical assistance, refugee social services, targeted 
assistance services, and Federal funding for administrative costs, 
published June 28, 1995 (60 FR 33584).

Description of the Regulation

    This proposed regulation establishes a new system for providing 
refugee cash assistance (RCA) to those refugees not eligible for 
Temporary Assistance for Needy Families (TANF) or Supplemental Security 
Income (SSI), changes the procedure for determining the financial 
eligibility of refugees for receipt of refugee medical assistance, and 
amends other policies.
    During the period following World War II until the passage of the 
Refugee Act of l980, a variety of programs were funded by Congress and/
or the private sector to assist newly arriving refugee groups. In 
authorizing and funding these programs for refugees, Congress 
continually demonstrated its recognition that special programs were 
needed to help refugees restart their lives in the U.S.
    It is important to note that resettlement in the U.S. is the last 
stage of a much larger, world-wide humanitarian effort to aid victims 
of oppression and war. The U.S. participates and exercises its 
leadership in this effort by contributing to international relief and 
protection efforts, and also by offering resettlement to some refugees 
who have no other durable solution and who qualify for admission to the 
U.S. These refugees arrive from diverse backgrounds and parts of the 
world. However, what they all have in common, in addition to having had 
to seek refuge, is that they arrive with virtually no worldly 
possessions.
    With the passage of the Refugee Act, Congress further underscored 
its belief that refugees need special assistance by authorizing an on-
going program for providing assistance and services to all refugees 
after their arrival in the U.S. However, unlike U.S. welfare programs 
which assist the needy, the Refugee Act does not require that an income 
standard be met in order to receive this special refugee cash 
assistance, only that refugees register for and participate in programs 
to help them find employment. Congress provided the Office of Refugee 
Resettlement the latitude to structure the refugee program in 
accordance with the refugee situation at that time.
    After passage of the Refugee Act of 1980, ORR chose to establish 
direct ties to the State-administered Aid to Families with Dependent 
Children (AFDC) program in order to ensure that cash assistance was 
available to newly-arrived refugees not categorically eligible for that 
program. ORR established the refugee cash assistance program (RCA) and 
required States to use the AFDC need and payment standards for the 
provision of RCA. The AFDC welfare system provided a nationally 
accessible structure which ensured that cash assistance was available 
to all refugees in a timely and equitable manner. ORR also established 
the refugee medical assistance program (RMA) modeled on the Medicaid 
program.
    At that time, ORR received sufficient appropriations to allow 
States to provide needy refugees with refugee cash assistance and 
refugee medical assistance during a refugee's first 36 months in the 
U.S. In addition, some portion of the refugee population received 
assistance under the mainstream AFDC and Medicaid programs. ORR also 
reimbursed the State share of AFDC and Medicaid costs during a 
refugee's first 36 months.
    In the intervening years, due to declining appropriations, ORR 
reduced the period of availability of RCA and RMA to refugees. At the 
present time, ORR reimburses States for 100 percent of their RCA and 
RMA costs during a refugee's first eight months. Refugees eligible for 
the TANF and Medicaid programs receive assistance under those programs; 
the costs of refugee TANF and Medicaid recipients are not included in 
the refugee appropriation.
    With the passage of welfare reform legislation in 1996, two things 
have occurred which caused ORR to review the current system for 
providing RCA: (1) More refugee families have qualified for assistance 
through the TANF program than had previously qualified under the AFDC 
program, resulting in a smaller RCA program; and (2) States have 
expressed concerns about the administrative difficulties of maintaining 
a separate system based upon former AFDC rules to provide cash 
assistance for only 8 months to a small population of refugees.
    With these two considerations in mind, ORR conducted eight 
consultations around the country and two teleconferences to discuss 
whether and how States, voluntary agencies, service providers, and 
refugee organizations would like to see the regulations changed. The 
consultations were useful in helping us to identify certain issues and 
to gauge whether there was a general willingness and a suitable climate 
across the country in which to change the program.
    We have concluded, based upon the consultations, that it is an 
opportune time to separate the link between the RCA program and the 
welfare/TANF system for the following reasons: (1) The current period 
of time for provision of cash assistance is shorter, requiring a 
simple, more integrated and direct approach to resettlement; and (2) 
the RCA population, comprised almost entirely of singles and couples 
without children or with adult children, is a smaller, more distinct 
population to serve.
    The Refugee Act acknowledged the roles of both States and private 
voluntary agencies in resettlement and authorized the Director of ORR 
``to provide assistance, reimbursement to States, and grants to, and 
contracts with, public or private nonprofit agencies for 100 per centum 
of the cash assistance and medical assistance provided to any refugee * 
* *.'' This language provided ORR with statutory flexibility to deliver 
assistance through public or private means. We believe that the public/
private program we propose more closely follows what Congress intended 
in passing the Refugee Act. The addition of a public/private program 
also provides States increased flexibility by offering another option 
for administering the RCA program.
    The proposed regulation would establish the refugee cash assistance 
program as a public/private partnership between States and local 
resettlement agencies responsible for the initial

[[Page 1161]]

resettlement of refugees. Under the proposed program, States would 
enter into a public/private partnership by contracting with local 
resettlement agencies to administer both the provision of cash 
assistance and the services needed to help RCA recipients become 
employed and self-sufficient within the RCA eligibility period. The RMA 
program would continue to be administered by the States and would not 
be included in the public/private partnership program. In addition, 
assistance and services to refugees eligible for TANF would not be 
affected by the new public/private RCA program.
    We believe a combined assistance and services program, administered 
outside the welfare system, makes programmatic sense for the RCA 
population. Placing responsibility for cash assistance and services 
with the resettlement agencies will result in a continuity of 
assistance to RCA-eligible refugees from initial resettlement to self-
sufficiency. Currently, resettlement agencies are responsible, under 
contract with the Department of State, for providing refugees with 
initial housing, food, clothes, and shelter for the first 30 days after 
arrival in the U.S. However, in order to receive cash assistance after 
that initial period, refugees must apply to the local welfare office 
where they become engaged in a service delivery system which, in many 
States, may not include their local resettlement agency.
    We believe the new program will more firmly unite the two key 
players--States and resettlement agencies--into a partnership that will 
best utilize their respective strengths. States would maintain the 
important role of administering the program and providing financial 
management and policy oversight, while the resettlement agencies would 
have an enhanced role in the longer-term resettlement of refugees they 
place in the State.
    Under the public/private RCA program, States and voluntary agencies 
will have the flexibility to design programs to deliver refugee cash 
assistance in a manner that more fully integrates and supports 
resettlement. In order to accommodate resettlement in communities 
across the U.S. with different cost-of-living conditions, ORR is 
establishing payment ceilings which may be provided to refugees. Within 
these ceilings, a State and the resettlement agencies in that State 
will have the opportunity to develop a resettlement plan which 
incorporates the features, such as sliding scale payments or 
incentives, that they believe are best suited to achieving early self-
sufficiency and to enriching the quality of life for refugees placed in 
their State. In addition, States and resettlement agencies will have 
the flexibility to establish the income-eligibility standard for RCA 
that they believe would best enable most newly arriving refugees to 
qualify for RCA.
    States and resettlement agencies administering the public/private 
RCA program will be responsible for moving refugees to economic self-
sufficiency within the RCA eligibility period by placing them in full-
time employment. They will also be responsible for assisting refugees 
in their social self-sufficiency by giving refugees adequate 
preparation to be able to carry out basic activities, such as handling 
a bank account or using public transportation, that are essential to 
living in American society. With full responsibility for refugees 
during this period, States and resettlement agencies will be held 
accountable for both employment and resettlement results by the end of 
this 8-month period.
    The proposed regulation would allow States under Sec. 400.207 to 
claim reasonable and necessary administrative costs incurred by 
resettlement agencies in the administration of the public/private RCA 
program. Because of the potential for increased administrative costs 
due to the public/private administration of the RCA program, ORR is 
soliciting comments on mechanisms to ensure that changes in 
administrative costs do not result in a reduction of benefits to 
refugees.
    We would expect States, when developing their annual social 
services plan, to factor into their fiscal planning social services 
funding for the public/private RCA program. We would also expect States 
to link the new RCA program with the existing State refugee social 
services system in order to enhance the coordination of services. We 
recognize that there may be additional service costs to fully implement 
the service component of the new RCA program while maintaining the 
State's regular refugee social services program for non-RCA refugees 
who have been in the U.S. for less than 5 years. For this reason, 
subject to the availability of funds, ORR proposes to supplement 
States' social services formula allocations with a portion of the non-
formula social services funds that are reserved for the Director's 
discretionary use each year. These non-formula funds would be used as a 
supplement during the initial start-up years to enable States to 
establish a viable public/private RCA program without compromising 
their regular social services program. At the end of this initial 
period, States would be expected to cover the costs of services in the 
new RCA program within their regular social services budget.
    States would be required to engage in a planning and consultation 
process with the resettlement agencies and with other agencies, such as 
mutual assistance associations (MAAs), that serve refugees in the State 
to design the public/private RCA program. From that process, States and 
resettlement agencies would develop a public/private RCA plan for 
submission to ORR no later than 6 months after publication of the final 
rule.
    While a public/private RCA program is ORR's preferred approach, we 
fully recognize that this approach may not be the best choice in all 
States. Therefore, under the proposed regulation, States would have the 
flexibility to request an exception to the public/private program if an 
agreement cannot be reached with the local resettlement agencies or if 
the State has reason to believe that a public/private RCA program would 
not serve the best interests of refugees in that State. Certain 
criteria would have to be met for ORR to approve a State's request to 
operate an excepted RCA program. These criteria are discussed later in 
the preamble under a description of Exceptions to the Public/Private 
RCA Program, Sec. 400.66. States that address these criteria would be 
able to operate a State-run excepted RCA program mirrored after their 
TANF program in regard to determination of eligibility, treatment of 
income and resources, benefit levels, and budgeting methods. States 
that believe that neither the public/private RCA program nor the RCA 
excepted program are the best programs to serve refugees in their State 
would have the flexibility to pursue a third option--an alternative 
program funded under the standing Wilson/Fish announcement. The Wilson/
Fish program provides States and public and private non-profit agencies 
the opportunity to develop innovative approaches to providing cash 
assistance, social services, and case management as an alternative to 
the regular State-administered refugee program.
    The proposed regulation contains a number of provisions to ensure 
that refugee rights and protections are safeguarded in the transfer of 
eligibility and cash assistance payment responsibilities from a State-
administered to a public/private partnership program. While we have no 
interest in having resettlement agencies become mini-welfare 
bureaucracies, it is essential to have adequate client protections in 
place to ensure due process and equitable treatment.
    We have added three changes to the refugee medical assistance 
program to

[[Page 1162]]

enable certain groups of refugees currently without medical coverage, 
such as newly arrived refugees who become employed within the first few 
weeks of arrival, to be eligible for RMA. First, States would be 
required to determine RMA eligibility on the basis of a refugee 
applicant's income and resources on the date of application, rather 
than averaging income over the application processing period. Second, 
States would be given the option of using a higher need standard of up 
to 200% of the national poverty level for determination of RMA 
eligibility. Third, refugees residing in the U.S. less than 8 months, 
who lose their eligibility for Medicaid because of earnings from 
employment, would be able to be transferred to RMA without an 
eligibility redetermination. We believe these changes in RMA 
eligibility are important to ensure that most newly arriving refugees, 
many of whom arrive with medical problems resulting from war-related 
trauma, have medical coverage during their first 8 months in the U.S.
    Consistent with the preceding actions, 45 CFR 400.2, 400.5, 400.11, 
400.13, 400.23, 400.27, 400.43, 400.44, Subpart E, 400.70, 400.71, 
400.72, 400.75, 400.76, 400.77, 400.78, 400.79, 400.80, 400.81, 400.82, 
400.83, 400.100, 400.101, 400.102, 400.104, 400.154, 400.155, 400.203, 
400.207, 400.208, 400.209, 400.210, 400.211, 400.301, and 401.12 are 
being amended or removed. Some of these changes are technical in nature 
and are not discussed in the preamble.

Subpart A--Introduction

    Section 400.2 is amended by replacing all references to the AFDC 
program with references to the TANF program and by adding a definition 
of an RCA Plan.

Subpart B--Grants to States for Refugee Resettlement

    Section 400.5 is amended by reinserting paragraph (i) which was 
inadvertently removed when 45 CFR Part 400 was last codified in 1995.
    Section 400.13(d) is amended by allowing the costs of case 
management to be charged to the CMA grant only in cases where the case 
management activities are targeted to time-eligible RCA recipients for 
the purpose of assisting such recipients to obtain employment and to 
become economically and socially self-sufficient.
    Section 400.13 is amended by adding a new paragraph (e) which would 
allow States to charge administrative costs incurred by local 
resettlement agencies in the administration of the public/private RCA 
program (i.e., administrative costs of providing cash assistance) to 
the CMA grant. Administrative costs of managing the services component 
of the RCA program must be charged to the social services grant.
    Administrative costs of providing cash assistance may include: (1) 
The salary costs of staff responsible for eligibility determinations 
and other administrative functions associated with the provision of 
cash payments; and (2) the portion of the local resettlement agency 
Director's time spent on managing the cash assistance component.

Subpart C--General Administration

    Section 400.23 (Hearings) is amended by removing a reference to 
AFDC regulations and establishing that the hearing procedures to be 
followed in the public/private RCA program will be the procedures 
described in the public/private RCA plan and the hearing procedures to 
be followed in an RCA-excepted program and the RMA program will be 
those used in the State TANF program.
    Section 400.27 (Safeguarding and sharing of information) is amended 
by removing paragraph (c) which references an AFDC regulation. It 
should be noted that Sec. 400.58 requires that a State's public/private 
RCA plan contain a description of the procedures to be used to 
safeguard the disclosure of information on refugee clients.

Subpart D--Immigration Status and Identification of Refugees

    Section 400.43 is amended by removing the following obsolete alien 
statuses for purposes of the refugee program: ``Admitted as a 
conditional entrant under section 203(a)(7) of the Act'' and ``Admitted 
with an immigration status that entitled the individual to refugee 
assistance prior to enactment of the Refugee Act of 1980, as specified 
by the Director'' and by adding Cuban and Haitian entrants; and 
Amerasian immigrants to this section.
    Section 400.44 is amended by clarifying that applicants for asylum 
are not eligible for assistance under the refugee program unless 
otherwise provided by Federal law, as is the case with Cuban and 
Haitian asylum applicants under section 501 of the Refugee Education 
Assistance Act of 1980.

Subpart E--Refugee Cash Assistance

    Subpart E is revised by replacing the current RCA program with a 
new public/private partnership program in which States would contract 
with local resettlement agencies to provide transitional cash 
assistance and services to RCA-eligible refugees as described below.

General

    The following general sections apply to both the public/private RCA 
program and State exceptions to the public/private RCA program.
    Section 400.50 (Basis and scope) is retained without changes.
    Section 400.51 (Definitions) is removed.
    Section 400.52 (Recovery of overpayments and correction of 
underpayments) is removed.
    Section 400.55 (Opportunity to apply for cash assistance) is 
redesignated as Sec. 400.51 and amended by removing (b)(1), which 
references AFDC requirements, and by removing (b)(3), (b)(4), and (c), 
which require States to contact sponsoring resettlement agencies 
regarding financial assistance and offers of employment to refugees.
    Section 400.56 (Determination of eligibility under other programs) 
is redesignated as Sec. 400.52 and is amended by removing paragraphs 
(a)(1) and (a)(2) and redesignating paragraph (a)(3) as (a).
    Section 400.57 (Emergency cash assistance to refugees) is 
redesignated as Sec. 400.53.
    Section 400.54 (General eligibility requirements) replaces 
Sec. 400.60 and establishes the following eligibility requirements for 
the RCA program. To be eligible for the RCA program, a refugee must: 
(1) Be a new arrival who has resided in the U.S. less than the RCA 
eligibility period determined by the ORR Director in accordance with 
Sec. 400.211; (2) be ineligible for TANF and SSI; (3) have the proper 
immigration status and documentation for eligibility for benefits under 
the refugee program; (4) not be a full-time student in an institution 
of higher education; and (5) meet the income eligibility standard 
jointly established by the State and local resettlement agencies in the 
State.
    Section 400.55 (Eligibility redeterminations in States with 
residency requirements) establishes that in States in which refugee 
families normally eligible for the TANF program are temporarily placed 
in the RCA program due to a TANF residency requirement, States are 
required to conduct an immediate redetermination of eligibility for 
TANF, once the

[[Page 1163]]

residency period is completed. This requirement applies regardless of 
whether the State is operating a local resettlement agency RCA program 
or, under an exception, a State agency-administered RCA program. Our 
intent is to ensure that RCA recipients eligible for TANF are 
transferred to that program in a timely manner, upon fulfilling the 
residency period, in order to limit the costs claimed against the RCA 
program for refugees eligible for TANF.

Public/Private Partnership RCA Program

    Section 400.56 (Structure) establishes the structure for the 
provision of cash assistance through the proposed public/private RCA 
program. This section requires that States enter into a public/private 
partnership by administering the RCA program through contracts with the 
local resettlement agencies that resettle refugees in the State, unless 
the State meets the excepted criteria specified in section 400.66. We 
define local resettlement agencies as those agencies which provide 
initial reception and placement services to refugees under a 
cooperative agreement with the Department of State.
    We believe that giving the local resettlement agencies that are 
responsible for the initial placement of refugees the additional 
responsibility of providing cash assistance to those refugees will 
result in more effective and better quality resettlement. At the same 
time, we fully recognize the policy and administrative oversight 
capacity that States are able to contribute to the resettlement 
process. We are proposing this structure to more firmly unite the two 
sectors into a partnership to help refugees.
    We expect States to implement a public/private RCA program 
statewide. It is intended that all resettlement agencies placing 
refugees in a State will participate in the public/private RCA program 
to the extent possible.
    However, if it is not feasible to operate a statewide public/
private RCA program, States may propose a geographically split program 
for the delivery of RCA. We recognize that in some places the statewide 
public/private model may not be a reasonable approach. For example, in 
a State with a major urban area that receives 75% of the State's newly 
arriving refugees, the State and resettlement agencies may wish to 
operate a public/private RCA program in the urban area only, while 
choosing to operate an excepted RCA program through the State welfare 
agency in the balance of the State where the geographic dispersion of 
refugees may hinder resettlement agency delivery of benefits.
    ORR will not consider a plan where the State proposes having both a 
public/private RCA program and an excepted RCA program in the same 
location. Such an arrangement would not be programmatically wise 
because it would cause confusion for refugees and would create 
unnecessary duplication.
    We recognize that some local resettlement agencies sponsor refugees 
in States other than where they have an office, e.g., in States 
bordering and in close proximity to their local office such as occurs 
in Kansas/Missouri and in the District of Columbia/Maryland/Virginia 
metropolitan area. ORR intends, where possible, that these resettlement 
agencies also be involved in the planning of the public/private RCA 
plan of the bordering State. However, if that is not feasible (some 
States, for example, may not be able to enter into contracts outside of 
the State), ORR expects States, in conjunction with the local 
resettlement agencies, to make appropriate provisions for eligible 
refugees resettled by agencies not located within State boundaries. 
Examples of appropriate provisions may include the establishment of an 
office by the sponsoring resettlement agency in the State where they 
are placing refugees or co-locating staff with a resettlement agency 
that already has a presence in the State.
    We recognize that some States may not have the staff or 
administrative support to contract with and manage numerous local 
agency contracts. We also recognize that some local resettlement 
agencies may not have the administrative and fiscal capacity to manage 
a cash assistance program. Therefore, under the public/private RCA 
plan, States and local resettlement agencies may consider different 
types of arrangements such as: (1) An agency-contained model where the 
local resettlement agency performs all fiscal and eligibility functions 
including the determination of eligibility, authorization of the RCA 
payment amount, the cutting of the checks, and the provision of 
payments to refugees; (2) a lead agency approach in which one 
resettlement agency assumes responsibility for managing the cash 
assistance component of the program for all the resettlement agencies; 
or (3) a model where the State acts as the fiscal agent, cutting 
benefit checks and managing cash flow, while the local resettlement 
agency determines eligibility, calculates the payment amount, and 
provides payments to refugees.
    Regarding the provision of services in the public/private RCA 
program, a State that lacks the staff capacity to manage numerous local 
agency contracts may wish to consider contracting with a lead 
resettlement agency, with subcontracts to the other local resettlement 
agencies for the provision of services. Our interest in having each 
resettlement agency retain responsibility for services through 
subcontracts is to maintain the link between initial resettlement of 
refugees in a State and accountability for outcomes for these refugees 
through the provision of services. States would be responsible for 
overseeing and managing these contracts in the same manner as their 
regular social services contracts.
    States and resettlement agencies will have one year from the date 
of publication of the final rule to implement the new public/private 
RCA program.
    Section 400.57 (Planning and consultation) requires a process for 
planning and consultation for the proposed public/private RCA program. 
This section requires that the State and the local agencies that 
resettle refugees in the State engage in a process to develop a public/
private RCA plan, the content of which is described in Sec. 400.58. 
Primary participants in the planning process must include 
representatives of the State and each local agency that resettles 
refugees in the State. In addition, representatives of refugee mutual 
assistance associations (MAAs), local community services agencies, and 
other agencies that serve refugees must be given the opportunity to 
participate in the discussion during the development period. We believe 
that full participation by MAAs and other community agencies throughout 
the planning process is essential to the development of a workable 
public/private RCA program. To facilitate this participation, it is 
permissible for States to charge to their CMA grant reasonable travel 
and per diem costs for MAAs and other agencies, as needed, to enable 
these agencies to more easily participate in the consultation process.
    This section requires that the public be given the opportunity to 
submit written comments on the plan before it is transmitted to ORR.
    This section also requires local resettlement agencies to keep 
their respective national voluntary resettlement agencies fully 
informed of the details of the public/private RCA program as the 
program is developed. Local resettlement agencies will be responsible 
for obtaining a letter of agreement from their national agencies 
stating that they will continue to place

[[Page 1164]]

refugees in the State under the new public/private program.
    Section 400.58 (Development of a public/private RCA plan) 
establishes the requirements for the development of a public/private 
partnership plan which describes how the State and local resettlement 
agencies will administer and deliver RCA to eligible refugees. The plan 
must describe the agreed-upon public/private RCA system including: (1) 
The proposed income standards for RCA eligibility; (2) proposed payment 
levels to be used to provide cash assistance to eligible refugees; (3) 
assurance that the payment levels established are not lower than the 
State TANF amount; (4) a detailed description of how benefit payments 
will be structured, including the employment incentives and/or income 
disregards to be used, if any; (5) a description of how all refugees 
residing in the State will have easy access to cash assistance and 
services; (6) a description of the procedures to be used to ensure 
appropriate protections and due process for refugees, such as the 
correction of underpayments, notice of adverse action and the right to 
mediation, a pre-termination hearing, and an appeal to an independent 
entity; (7) a description of proposed exemptions from participation in 
employability services; (8) a description of the employment and self-
sufficiency services that the local resettlement agencies will be 
contracted to provide to RCA recipients; (9) procedures for providing 
RCA to eligible secondary migrants who move to the State, including 
secondary migrants who were sponsored by a resettlement agency that 
does not have a presence in the receiving State; (10) if applicable, 
provisions for providing assistance to refugees resettling in the State 
who are sponsored by a resettlement agency in a bordering State which 
does not have an office in the State of resettlement; (11) a 
description of the procedures to be used to safeguard the disclosure of 
information on refugee clients; (12) letters of agreement from the 
national voluntary resettlement agencies that refugee placements in the 
State will continue under the public/private RCA program; and (13) a 
breakdown of the proposed program and administrative costs of both the 
cash assistance and service components of the public/private RCA 
program, including per capita caps on administrative costs.
    The plan must be signed by the Governor or his or her designee and 
must be submitted to the ORR Director for review and approval no later 
than 6 months after the date of publication of the final rule.
    RCA plan amendments must be developed in consultation with the 
local resettlement agencies to reflect any changes in policy and 
submitted to ORR in accordance with Sec. 400.8.
    Section 400.59 (Eligibility for the public/private RCA program) 
establishes that to be eligible for the public/private RCA program, a 
refugee must meet the income eligibility standard jointly established 
by the State and local resettlement agencies in the State.
    In establishing an income eligibility standard for the public/
private RCA program, States and resettlement agencies may wish to set a 
standard, for example, at 150% of the poverty level, that will allow 
refugees who are employed part-time in a low wage job to also be 
eligible for some level of cash assistance. States may wish to consider 
such a need standard in order to provide a more solid economic 
foundation for refugees during their first 8 months in the U.S. to 
better ensure continued self-sufficiency.
    Section 400.60 (Cash payment levels) establishes allowable cash 
payment levels under the proposed public/private RCA program. This 
section requires monthly cash assistance payments to be made to 
eligible refugees using a payment level that does not exceed the 
following payment ceilings:

------------------------------------------------------------------------
                                                                Monthly
                     Size of family unit                        payment
                                                                ceiling
------------------------------------------------------------------------
1 person.....................................................       $335
2 persons....................................................        450
3 persons....................................................        570
4 persons....................................................        685
------------------------------------------------------------------------

    The ceiling payment levels are based on 50% of the 1998 HHS Poverty 
Guidelines for each family size, divided by 12 months, except as noted 
below.
    For family units greater than 4 persons, the payment ceiling may be 
increased by $70 for each additional person.
    If the ORR Director determines that the payment ceilings need to be 
adjusted for inflation, ORR will issue revised payment ceilings through 
a notice in the Federal Register.
    We expect that most refugees eligible for RCA will be one-person or 
two-person family units, singles and childless couples. We expect that 
most refugee families with dependent children will be eligible for TANF 
and, therefore, will not need to access the RCA program.
    Payments to refugees may not be lower than the State TANF payment 
for the same sized family unit. States, therefore, that have TANF 
payment levels that are higher than the ceilings indicated above, must 
provide payment levels under the new public/private RCA program that 
are comparable to the State TANF payment levels.
    We encourage States and local resettlement agencies to use the 
flexibility provided in the payment ceilings to include income 
disregards or other incentives such as employment bonuses, that will 
encourage early employment and self-sufficiency. States and 
resettlement agencies may design whatever combination of assistance 
payments and incentives they believe would be effective, as long as the 
total in any given month does not exceed the monthly ceiling amounts. 
This flexibility would allow States and local resettlement agencies to 
provide continued cash support while moving refugees into early 
employment.
    We encourage States and local resettlement agencies to look at 
different approaches and to be creative in designing a program that 
will help refugees to establish a good economic foundation during the 
8-month RCA period. We encourage States and local resettlement agencies 
to design an RCA program that takes into account that refugees arrive 
in the U.S. with little or no financial resources and that 8 months of 
cash assistance provides a limited period of time to gain a degree of 
financial stability.
    One approach might be to permit the total of earned income and cash 
assistance of refugees who become employed full-time to exceed the cash 
assistance only payments made to refugees who are not employed. Another 
approach, currently being used in one State, provides an incentive to 
employed refugees through monthly reimbursements for work-related 
expenses such as tools, uniforms, work-related transportation expenses, 
medical insurance co-payments, or the cost of additional work-related 
training. The State has found this to be an effective incentive for 
early employment.
    Section 400.61 (Services in the public/private RCA program) 
establishes that services provided to recipients of refugee cash 
assistance in the public/private program must be provided under 
contracts with the State by the local resettlement agencies that 
administer the public/private RCA program or their subcontractors. We 
believe it makes for good resettlement to have continuity between the 
placement of refugees in a State and accountability for the achievement 
of resettlement and self-sufficiency outcomes for these refugees by 
providing local resettlement agencies with the responsibility for these 
refugees during their first 8 months in the U.S. We will be looking to 
the

[[Page 1165]]

resettlement agencies to not only place refugees in employment at wages 
that will enable self-support, but to ensure that refugees receive the 
skills, such as English language acquisition and basic living skills, 
needed to live successfully in this country. We plan to work with 
States and local resettlement agencies to develop appropriate social 
self-sufficiency and English acquisition outcome measures to add to the 
employment and economic self-sufficiency client outcome measures that 
ORR currently uses in measuring results.
    This section also establishes that States and local resettlement 
agencies must maintain ongoing coordination with refugee mutual 
assistance associations and other ethnic representatives that represent 
or serve the ethnic populations that are being resettled in the U.S. to 
ensure that the services provided under the public/private RCA program: 
(1) Are appropriate to the linguistic and cultural needs of the 
incoming populations; and (2) are coordinated with the longer-term 
resettlement services frequently provided by ethnic community 
organizations after the 8-month RCA period.
    Allowable services under the public/private program are limited to 
those services described under Secs. 400.154 and 400.155.
    Section 400.62 (Coverage of secondary migrants, asylees, and Cuban/
Haitian entrants) provides that the State and local resettlement 
agencies must ensure that there is a system in place which is 
accessible to eligible secondary migrant refugees, asylees, and Cuban/
Haitian entrants who want to apply for assistance. In developing these 
procedures, consideration must be given to how to ensure coverage of 
eligible secondary migrants and other eligible applicants who were 
sponsored by a resettlement agency which does not have a presence in 
the State or who were not sponsored by any agency.
    Section 400.63 (Availability of agency policies) requires States to 
ensure that each participating local resettlement agency makes 
available to refugees the written policies of the public/private RCA 
program, including agency policies regarding eligibility standards, the 
duration and amount of cash assistance payments, the requirements for 
participation in services, the penalties for non-cooperation, and 
client rights and responsibilities to ensure that refugees understand 
what they are eligible for, what is expected of them, and what 
protections are available to them. States must ensure that agency 
policy materials are made available to refugee clients in English and 
in their own language.
    Section 400.64 (Preparation of local resettlement agencies) 
requires national voluntary agencies to be responsible, in concert with 
the States, in preparing local resettlement agencies for their new 
responsibilities under the public/private RCA program during a period 
of transition. In light of the ongoing relationship of the national 
voluntary agencies with their local affiliates under the Department of 
State cooperative agreements for initial Reception and Placement (R & 
P) services, we believe the national agencies should share in the 
responsibility with the States for ensuring that their affiliate 
agencies have the capacity and structure to effectively handle the cash 
assistance and service needs of refugees over an 8-month period.
    The States and national voluntary agencies will be responsible for: 
(1) Determining the training needed to enable local resettlement 
agencies to achieve a smooth transition into their expanded role; and 
(2) providing the training in a uniform way to ensure that all local 
resettlement agencies in the State will implement the new program in a 
consistent manner. Part of this training should involve helping the 
local resettlement agencies to change how they view their role--from a 
short-term initial resettlement role to a longer-term commitment to the 
economic self-sufficiency and social integration of the refugees they 
resettle. The national voluntary agencies should also be instrumental 
in helping the local resettlement agencies to establish a smooth 
linkage between Reception and Placement services and services under the 
RCA program and in facilitating the development of consortia among 
affiliates. States may also wish to call upon the national voluntary 
agencies to assist in providing remedial assistance and training to 
poorly performing affiliate agencies before contract sanctions are 
applied.
    ORR proposes to use a portion of its non-formula social services 
funding, subject to the availability of appropriated funds, to support 
the national voluntary agencies in these training activities during a 
transition period of two years after publication of the final rule.
    Section 400.65 (Monitoring) requires that ORR, States, and national 
voluntary agencies conduct joint monitoring of the new RCA program, 
beginning one year after the new program has been implemented, to 
ensure that the program is being carried out in a manner that produces 
positive self-sufficiency and resettlement outcomes. Subject to the 
availability of appropriated funds, ORR intends to use ORR non-formula 
social services dollars to support a portion of the monitoring costs of 
the national voluntary agencies, in conjunction with the Department of 
State, in the monitoring of the public/private RCA program and the DOS-
funded Reception & Placement grants.
    This section also requires States to conduct compliance monitoring 
to ensure that local resettlement agencies are complying with the 
approved RCA plan and with ORR requirements regarding the RCA program. 
It will be particularly important to make sure that refugees are 
receiving timely monthly cash payments at the levels prescribed and are 
provided proper due process protections.

Exceptions to the Public/Private RCA Program

    Section 400.66 (Exceptions to the public/private RCA program) 
establishes that States that have good reason to believe that a public/
private refugee cash assistance program is not workable in the State 
and would not be in the best interests of refugees resettled in the 
State, may request an exception to the public/private RCA program. 
While we consider the public/private RCA program to be the preferred 
approach to providing transitional assistance and services to refugees, 
we recognize that the public/private approach may not be the best 
approach for all States or for all areas in a State for a variety of 
reasons. For example, the local resettlement agency(ies) in a given 
State may not wish to assume responsibility for the refugee cash 
assistance program, or may not have the capacity to provide adequate 
geographic access to refugee cash assistance and services to refugees 
eligible for the program. Or, the Governor may conclude, after State 
consultations with the State's resettlement partners, that the best 
interests of newly-arriving RCA refugees will be more effectively 
served through the existing system. Further, the Governor could 
conclude that the existing system would better serve newly-arriving RCA 
refugees if the State determines that there would not be sufficient 
administrative funding to enter into a public/private partnership and 
administer the remaining components of the program.
    When differences surface among the resettlement partners during the 
planning process, every effort must be made to address these 
differences and reach a compromise, using the best interests of 
refugees as the guiding principle in all discussions and negotiations.

[[Page 1166]]

    If the differences are irreconcilable, the State may determine, 
after having negotiated in good faith with all resettlement partners, 
that the best interests of refugees will be served by retaining the 
provision of refugee cash assistance as a component of the State-
administered program through the State's TANF agency.
    To qualify for an RCA exception, a State: (1) Must demonstrate that 
it made a good faith effort to reach agreement on a public/private RCA 
program through a planning and consultation process; and (2) must meet 
one of the following criteria: (a) resettlement agencies operating in 
the State declined to accept responsibility for the provision of cash 
assistance; (b) the contemplated provision of cash assistance by 
resettlement agencies would not provide adequate access to cash 
assistance for newly-arrived RCA refugees; (c) the Governor concluded 
that a public/private RCA program would not be in the best interests of 
refugees; or (d) the Governor determined that administrative funding 
would not be sufficient to enter into a public/private partnership and 
administer the remaining components of the program.
    If a State wishes to request an exception to the public/private RCA 
program, a State must submit a written request signed by the Governor 
or his or her designee which: (1) Provides documentation that the State 
made a good faith effort to reach agreement on a public/private RCA 
program through a planning and consultation process; and (2) addresses 
one of the criteria for an exception described in (a)-(d) above.
    A request for an exception must be submitted to the ORR Director 
for review and approval no later than 6 months after the date of 
publication of the final rule.
    If the Director determines that a State's request for an exception 
meets the required criteria outlined above, the Director will approve 
the request. If a request for an exception is based on a Governor's 
decision that a public/private RCA program would not be in the best 
interests of refugees in the State, ORR does not intend to review or 
question the substance of the Governor's decision. An approved RCA 
exception must be implemented no later than one year after publication 
of the final rule.
    Section 400.67 (Eligibility and payment levels in an excepted RCA 
program) establishes that in administering an ORR-approved excepted RCA 
program, the State agency must operate its refugee cash assistance 
program consistent with the provisions of its TANF program in regard 
to: (1) The determination of initial and on-going eligibility 
(treatment of income and resources, budgeting methods, need standard); 
(2) the determination of benefit amounts (payment levels based on size 
of the assistance unit, income disregards); (3) proration of shelter, 
utilities, and similar needs; (4) the date that refugee cash assistance 
(RCA) begins, in relation to the date of application; and (5) any other 
State TANF rules relating to eligibility and payments.
    Section 400.68 (Non-applicable TANF requirements) establishes that 
States that are granted an RCA exception may not apply certain TANF 
requirements to refugee cash assistance applicants or recipients as 
follows: (1) A State's durational residency requirement imposed on 
applicants for TANF may not apply to applicants for RCA; and (2) 
instead of TANF work requirements (hours of participation and allowable 
work activities), States must apply the requirements in Sec. 400.75 
which requires RCA recipients, as a condition of receipt of assistance, 
to participate in employment services within 30 days of receipt of aid, 
and Subpart I of 45 CFR Part 400 with respect to the provision of 
services for RCA recipients. The requirements and expectations for 
employment and participation in employment services in the refugee 
program are no less serious than the requirements in the TANF program. 
The requirements in the refugee program are simply different from TANF 
requirements in that the types of activities allowed in the refugee 
program are designed for the needs of newly-arrived refugees who 
typically arrive with little or no English language skills. Thus, in 
the refugee program, refugees participate extensively in English 
language training, assisted job search, and other employment-related 
activities that are designed to help limited-English speaking refugees 
to become self-sufficient within 8 months.
    Section 400.69 (Notification of resettlement agencies) requires 
States to notify the local agency that was responsible for the initial 
resettlement of a refugee whenever the refugee applies for refugee cash 
assistance under an RCA excepted program.

Subpart F--Requirements for Employability Services and Employment

    Section 400.70 (Basis and scope) is amended to clarify that Subpart 
F applies to applicants and recipients of both the public/private RCA 
program and State-administered RCA exceptions.
    Section 400.71 is amended to remove an incorrect reference to 
Sec. 400.72(a) in the definition of the term, Designee.
    Section 400.72 (Arrangements for employability services) is amended 
to clarify that the requirements in paragraphs (a) and (b) of this 
section apply equally to States that operate a public/private RCA 
program through contracts with local resettlement agencies and to 
States that have been approved by ORR to operate an RCA excepted 
program, while paragraph (c) applies only to an RCA excepted program.
    Section 400.76 (Exemptions) is revised by removing the list of 
individuals who may be exempt from participation in employment 
services. States and/or local resettlement agencies may determine what 
specific exemptions, if any, are appropriate for recipients of a time-
limited RCA program in their State. Given the short duration of the RCA 
program, however, and the need for refugees to become self-sufficient 
within this limited time frame, we would expect States and local 
resettlement agencies to require most RCA recipients to participate in 
employment services, with few exceptions.
    Section 400.78 (Service requirements for employed recipients of 
refugee cash assistance), which requires an RCA recipient who is 
employed less than 30 hours a week to participate in part-time 
employment services, as a condition of continued receipt of refugee 
cash assistance, is removed and reserved. We leave it to States and 
local resettlement agencies to determine how best to design a program 
that moves refugees to full-time employment in a reasonable period of 
time.
    Section 400.80 (Job search requirements), which requires job search 
where appropriate, is removed and reserved. Again, we leave it to the 
judgement of States and local resettlement agencies to decide the types 
of employment services that are the most effective in placing refugees 
in jobs.
    Section 400.81(a) (Criteria for appropriate employability services 
and employment) is amended by replacing the reference to AFDC with a 
reference to TANF.
    Section 400.81(b) is amended by limiting professional refresher 
training and other recertification services only to individuals who are 
working.
    Section 400.82 (Failure or refusal to accept employability services 
or employment) is revised to specify requirements for timely and 
adequate notice of intended termination under the public/private RCA 
program and to

[[Page 1167]]

specify that under an RCA-excepted program, States must follow the 
procedures for notice of intended termination that are used in the 
State's TANF program.
    Section 400.83 (Conciliation and fair hearings) is revised by 
establishing requirements for mediation and fair hearings in the 
public/private RCA program and requiring that States follow the 
procedures used for conciliation and fair hearings in the State TANF 
program in cases where a State operates an RCA-excepted program. Under 
this requirement, hearings must meet the due process standards set 
forth in the U.S. Supreme Court decision in Goldberg v. Kelly, 397 U.S. 
254 (1970).

Subpart G--Refugee Medical Assistance

    Section 400.101(a) (Financial eligibility standards) is amended by 
giving States that operate a medically needy program the option of 
increasing the medically needy financial eligibility standard for RMA 
eligibility determination to up to 200% of the national poverty level 
by family size. Our intent in allowing States this new option is to 
ensure that States have the flexibility to broaden financial 
eligibility for refugee medical assistance, while receiving 100% 
Federal reimbursement of costs, in order to extend coverage to certain 
groups of new arrivals who are currently not covered under RMA. 
Refugees currently without medical coverage who would be affected by 
this provision include: (1) Refugees on TANF who obtain a job and 
terminate assistance before they have been on TANF for 3 months, who 
are then ineligible for transitional Medicaid; and (2) refugee spouses 
who arrive in the U.S. a number of months after their spouse who 
preceded them, and are not eligible for RMA because their employed 
spouse's income renders them ineligible for RMA.
    Section 400.101(b) is amended with respect to States without a 
medically needy program by clarifying that references to AFDC refer to 
the AFDC need standard in effect as of July 16, 1996, including any 
modifications elected by the State under section 1931(b)(2) of the 
Social Security Act (SSA). This is in keeping with the amendments made 
by section 114 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (PRWORA) to section 1931 of the SSA.
    Section 400.102 is revised to clarify that determination of 
eligibility for refugee medical assistance (RMA) must be based on the 
applicant's income and resources on the date of application, rather 
than on a refugee's income averaged prospectively over the RMA 
application processing period.
    The purpose of this revision is to ensure that refugees who enter 
employment within the first few weeks after arrival in the U.S. are not 
penalized for accepting early employment by denial of refugee medical 
assistance. Refugees arrive in the U.S. with no income, and generally 
apply for refugee medical assistance very soon after arrival. With this 
revision, a newly arrived refugee who applies for refugee medical 
assistance soon after arrival and becomes employed within the first 30 
days in the U.S. subsequent to filing the RMA application, would not 
lose RMA eligibility.
    Section 400.102 is amended to remove references to AFDC regulations 
which no longer apply due to changes in Medicaid eligibility 
determination contained in PRWORA as described above.
    Section 400.104 is amended to permit refugees residing in the U.S. 
less than 8 months, who lose their eligibility for Medicaid because of 
earnings from employment, to be transferred to refugee medical 
assistance without an eligibility redetermination. This amendment would 
allow refugees who lose Medicaid eligibility because they obtain early 
employment to maintain medical coverage under RMA during their first 8 
months in the U.S. The purpose of this amendment is to encourage early 
economic self-sufficiency by ensuring that refugees receive continued 
medical assistance after employment and by ensuring that refugees are 
not discouraged from early employment by the potential loss of medical 
coverage.

Subpart I--Refugee Social Services

    Section 400.155 is amended by adding citizenship and naturalization 
services as allowable services under the social services and targeted 
assistance formula programs. Citizenship and naturalization services 
may include such services as English language training and civics 
instruction to prepare refugees for citizenship, application 
assistance, and the provision of interpreter services for the 
citizenship interview, as needed.

Subpart J--Federal Funding

    Section 400.207 (Federal funding for administrative costs) is 
amended by clarifying that a State may claim reasonable and necessary 
administrative costs incurred by local resettlement agencies in the 
administration of a public/private RCA program.
    Section 400.210 (Time limits for obligating and expending funds and 
for filing State claims) is amended by revising Sec. 400.210(b)(2) to 
extend the due date for a State's final financial report of 
expenditures of social services and targeted assistance formula grants 
to no later than 90 days after the end of the two-year expenditure 
period. This section clarifies that States must expend their social 
services and targeted assistance funds no later than two years after 
the end of the Federal fiscal year in which the Department awarded the 
grant. Thus, under the proposed revision, States must have expended 
social services and targeted assistance funds awarded to them in FY 
1999, for example, by no later than September 30, 2001, and a State's 
final financial report must be received no later than December 31, 
2001. If, at that time, a State's final financial report has not been 
received, the Department will deobligate any unexpended funds, 
including any unliquidated obligations, on the basis of a State's last 
submitted financial report.
    This proposed revision is in response to requests from several 
States needing a full 2-year period to expend social services and 
targeted assistance funds from the end of the Federal fiscal year in 
which the funds are awarded.
    Section 211(a) (Methodology to be used to determine time-
eligibility of refugees) is amended to clarify that after making a 
determination of the RCA/RMA eligibility period as soon as possible 
after funds are appropriated for the refugee program, the Director will 
make redeterminations at subsequent points during the year only if a 
reduction in the eligibility period appears indicated.

Subpart K--Waivers and Withdrawals

    Section 400.301 (Withdrawal from the refugee program) is amended by 
removing the words ``only under extraordinary circumstances and'' in 
Sec. 400.301(b). This would allow the ORR Director greater discretion 
to approve cases in which a State wishes to retain responsibility for 
only part of the refugee program if it is in the best interest of the 
Government, without requiring extraordinary circumstances. For example, 
when a State with a small refugee population wishes to drop out of the 
refugee program, but is willing to retain responsibility for 
administering just the RMA program, it would be in the best interest of 
the Government to approve such an arrangement without other 
constraints.
    Section 400.301(c) is amended by clarifying that a replacement 
designee

[[Page 1168]]

must adhere to the regulations regarding the targeted assistance 
formula program under Subpart L if the State wishing to drop out of the 
refugee program authorizes the replacement designee appointed by the 
ORR Director to act as the State's agent in applying for and receiving 
targeted assistance funds.

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, ORR conducted eight consultations 
around the country and two teleconferences to discuss whether and how 
States, voluntary agencies, service providers, and refugee 
organizations would like to see the regulations changed. These meetings 
were attended by close to 500 participants representing the broad 
resettlement network. We also consulted with representatives of States, 
Washington-based interest groups, refugee mutual assistance 
associations, and national voluntary agencies in follow-up sessions in 
Washington, D.C. to discuss what we learned from the initial round of 
consultations and to obtain feedback on our possible regulatory 
changes. We received additional feedback after group representatives 
consulted more broadly within their networks following the last round 
of meetings. The input we received is reflected in these proposed 
regulations to a considerable degree.
    These proposed rules represent a renewed, more flexible stage in 
the refugee program State/Federal partnership. Rather than requiring 
that one national program fit all local situations, ORR has allowed the 
States the option to request implementation of an excepted RCA program 
if they determine that the public/private RCA model we have proposed is 
not feasible in their State, if the Governor determines that the new 
program is not in the best interests of refugees, or if the Governor 
determines that administrative funding is not sufficient to enter into 
a public/private partnership and administer the remaining components of 
the program. Likewise, the State may determine that the public/private 
RCA partnership would work well in only one community, and propose to 
implement a geographically split model.
    Within the proposed public/private RCA program, we have also given 
States and local resettlement agencies broad flexibility to design a 
program which they believe will best serve refugees in their community. 
Rather than prescribing certain elements, we have given States and 
resettlement agencies the flexibility to determine: The income standard 
for receipt of RCA in their State; the benefit level within a broad 
range of benefit levels; whether employment incentives should be 
provided, and if so, how those incentives should be provided; the 
services to be provided; and the procedures States and local 
resettlement agencies will put in place to ensure due process and 
protections for refugees. States are also given the option, but not 
required, to set a higher need standard for refugee medical assistance. 
And within the proposed public/private RCA plan structure, there are 
several administrative models which may be considered by States and 
resettlement agencies.
    One of our key goals in drafting the regulations was to recognize, 
encourage, and enhance the partnerships that Congress intended with the 
passage of the Refugee Act. Although we have drafted regulations for a 
Federally-funded program, the proposed rules are intended to reflect 
our recognition that resettlement takes place at the local level and 
works best when all parties work together. In our proposed rules, we 
have tried to support the different, but equally important, 
contributions that the public and private sectors are able to bring to 
the refugee resettlement process. We hope that the proposed rules will 
serve to foster better and stronger partnerships at all levels, 
including those among local resettlement agencies and service 
providers, which will result in good resettlement.
    We are concerned that the proposed revisions could increase the 
cost of the program, particularly during implementation. We expect the 
administrative costs to decrease substantially after the first year of 
implementation.

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 46 participating States and the District of Columbia, 
and local resettlement agencies that agree to assume responsibility for 
providing cash assistance and services to newly arrived refugees in 
States that elect to establish the new public/private RCA program. 
Local resettlement agencies are non-profit private organizations that 
are responsible for the initial resettlement of refugees in the U.S. 
under cooperative agreements with the Department of State. 
Participation of these local agencies in the public/private RCA program 
to be established by this regulation will be strictly voluntary. In 
addition, local resettlement agencies that choose to assume 
responsibility for the new RCA program will be fully funded with 
Federal refugee program funds. These rules will only have an impact on 
those small entities (local resettlement agencies) that voluntarily 
elect to participate in the public/private RCA program. Thus, a 
regulatory flexibility analysis is not required.

C. Paperwork Reduction Act of 1995

    The following sections contain information collection, third party 
reporting, or recordkeeping requirements that are subject to review and 
approval by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)): Secs. 400.43, 
400.5, 400.51(c), 400.57(c), 400.58, 400.63, 400.66, and 400.82(b). The 
Administration for Children and Families has submitted a copy of these 
sections to the Office of Management and Budget (OMB) for its review.
    Section 400.43 requires applicants to provide proof of alien status 
for eligibility to the refugee program. Section 400.5 requires that 
States submit a State plan in order to receive refugee program funding. 
Section 400.51(c) requires that States or their designees provide 
notice to applicants or recipients to indicate that assistance has been 
authorized, denied, or terminated and the program under which that 
determination was made. Section 400.57(c) requires that each local 
voluntary agency resettling in a State inform its national resettlement 
agency of the proposed public/private RCA program and obtain a letter 
of agreement from the national agency. Section 400.58 requires that 
States submit a public/private RCA plan for ORR review and approval 
before the State implements the plan. Section 400.63 requires that 
States ensure that

[[Page 1169]]

each participating local resettlement agency mades available to 
refugees the written policies of the public/private RCA program. 
Section 400.66 requires States that wish to request an exception to the 
public/private RCA program to submit a written request that addresses 
certain criteria before a State implements an excepted program. Section 
400.82(b) requires that States provide a notice of intended termination 
to clients who have failed to meet certain work related requirements.
    The information in these plans is needed to carry out ORR's 
oversight responsibilities under section 412 of the Immigration and 
Nationality Act. Additionally, certain information is typically 
necessary to respond to Congressional and other inquiries about the 
program.
    The effect of these information collection, reporting, or third-
party notification requirements will be limited to the 46 States and 
the District of Columbia that participate in the refugee program, and 
2-3 non-profit agencies that administer the program in States that no 
longer participate in the refugee program. We do not anticipate that 
all States will elect to operate a public/private RCA program; those 
States that choose not to operate such a program will not have to 
submit a public/private RCA plan. Those States that choose to implement 
a public/private RCA program will have to submit a public/private RCA 
plan only once. Additional submissions will only be necessary if the 
plan is modified in the future. The average burden per response for the 
preparation of an RCA plan is estimated to be 24 hours. The total 
maximum annual reporting and recordkeeping burden that will result from 
this collection of information is an estimated 1,176 hours if all 
States elect to implement a public/private RCA program. States that 
request an exception to the public/private RCA program will have to 
submit a written request once. The average burden per response for the 
preparation of a written request for an excepted RCA program is 
estimated to be 3 hours. The total maximum annual reporting and 
recordkeeping burden that will result from this collection of 
information is an estimated 147 hours if all States elect to request an 
exception to a public/private RCA program. Other requirements, such as 
the State plan (Sec. 400.5), are not changed. States receiving refugee 
program funds have a plan on file at ORR. We estimate the number of 
hours required to amend the plan to be a maximum of 1 hour annually. 
The total maximum annual reporting and recordkeeping burden that will 
result from this collection of information is estimated to be no more 
than 47 hours if all States amend their plan in a given year. We 
estimate the average burden for other sections as follows: Sec. 400.43 
will be 500 hours annually; Sec. 400.51(c) will be 850 hours annually; 
Sec. 400.57(c) will be 200 hours annually; Sec. 400.63 will be 9 hours 
annually; and Sec. 400.82(b) will be 850 hours annually.
    The Office of Refugee Resettlement will consider comments by the 
public on these proposed collections of information in: (1) Evaluating 
whether the proposed collections are necessary for the proper 
performance of the functions of ORR, including whether the information 
will have practical utility; (2) evaluating the accuracy of ORR's 
estimate of the burden of the proposed collection of information, 
including the validity of the methodology and assumptions used; (3) 
enhancing the quality, usefulness, and clarity of the information to be 
collected; and (4) 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., permitting electronic submission of responses.
    OMB is required to make a decision concerning the collection of 
information contained in this proposed regulation between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment is best assured of having its full effect if OMB 
receives it within 30 days of publication. This does not affect the 
deadline for the public to comment to the Department on the proposed 
regulation. 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. 20503, Attn: Ms. Wendy Taylor.

D. Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1532) 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 
205 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 this proposed rule would not impose a 
mandate that will 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 of Rulemaking

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

Statutory Authority

    Section 412(a)(9) of the Immigration and Nationality Act, 8 U.S.C. 
1522(a)(9), authorizes the Secretary of HHS to issue regulations needed 
to carry out the program.

    Catalogue of Federal Domestic Programs: 93.566, Refugee and 
Entrant Assistance--State-Administered Programs.

List of Subjects

45 CFR Part 400

    Grant programs--social programs, Health care, Public assistance 
programs, Refugees, Reporting and Record keeping requirements.

45 CFR Part 401

    Cuba, Grant programs--social programs, Haiti, Public assistance 
programs, Refugees.

    Dated: July 23, 1998.
Olivia A. Golden,
Assistant Secretary for Children and Families.

    Approved: August 22, 1998.
Donna E. Shalala,
Secretary, Department of Health and Human Services.

    For reasons set forth in the preamble, 45 CFR Parts 400 and 401 are 
proposed to be amended as follows:

PART 400--REFUGEE RESETTLEMENT PROGRAM

    1. The authority citation for part 400 continues to read as 
follows:

    Authority: Section 412(a)(9), Immigration and Nationality Act (8 
U.S.C. 1522(a)(9)).


Sec. 400.2  [Amended]

    2. Section 400.2 is amended by removing the definition of AFDC and 
adding a definition of TANF to read as

[[Page 1170]]

set forth below and by removing the word ``AFDC'' wherever it appears 
in this section and adding in its place the word ``TANF''.


Sec. 400.2  Definitions.

* * * * *
    TANF means temporary assistance for needy families.
* * * * *
    3. Section 400.2 is further amended by removing the word ``to'' 
after the word ``refer'' in the definition of Case management services.
    4. Section 400.2 is further amended by adding a definition of RCA 
Plan to read as follows:
* * * * *
    RCA Plan means a written description of the public/private RCA 
program administered by local resettlement agencies under contract with 
a State.


Sec. 400.5  [Amended]

    5. Section 400.5 is amended by adding paragraph (i) to read as 
follows:


Sec. 400.5  Content of the plan.

* * * * *
    (i) Provide that the State will:
    (1) Comply with the provisions of title IV of the Act and official 
issuances of the Director;
    (2) Meet the requirements in this part;
    (3) Comply with all other applicable Federal statutes and 
regulations in effect during the time that it is receiving grant 
funding; and
    (4) Amend the plan as needed to comply with standards, goals, and 
priorities established by the Director.


Sec. 400.11  [Amended]

    6. Section 400.11(b) is amended by revising the word ``then'' to 
read ``than''.


Sec. 400.13  [Amended]

    7. Section 400.13(d) is revised to read as follows:


Sec. 400.13  Cost allocation.

* * * * *
    (d) Costs of case management services, as defined in Sec. 400.2, 
may not be charged to the CMA grant except where the case management 
activities are targeted to time-eligible RCA recipients for the purpose 
of assisting such recipients to obtain employment and to become 
economically and socially self-sufficient.
    8. Section 400.13 is further amended by adding a new paragraph (e) 
that reads as follows:


Sec. 400.13  Cost allocation.

* * * * *
    (e) Administrative costs incurred by local resettlement agencies in 
the administration of the public/private RCA program (i.e., 
administrative costs of providing cash assistance) may be charged to 
the CMA grant. Administrative costs of managing the services component 
of the RCA program must be charged to the social services grant.


Sec. 400.23  [Amended]

    9. Section 400.23(a) is amended by removing the words ``in 
Sec. 205.10(a) of this title for public assistance programs'' and 
adding in their place the words ``in the RCA plan in the case of the 
public/private RCA program and by the State's TANF program in the case 
of an RCA-excepted program and for the RMA program.''
    10. Section 400.23(b) is amended by adding the words ``or its 
designee'' after the word ``State''.


Sec. 400.27  [Amended]

    11. Section 400.27 is amended by removing paragraph (c).


Sec. 400.43  [Amended]

    12.-13. Section 400.43 is amended by removing paragraphs (a)(2) and 
(5); by redesignating paragraphs (a)(3) and (4) as paragraphs (a)(2) 
and (3) respectively; and by adding new paragraphs (a)(4) and (5) that 
read as follows:


Sec. 400.43  Requirements for documentation of refugee status.

    (a) * * *
    (4) Cuban and Haitian entrants, as described in 45 CFR part 401;
    (5) Certain Amerasians from Vietnam who are admitted to the U.S. as 
immigrants pursuant to section 584 of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1988 (as contained 
in section 101(e) of Public Law 100-202 and amended by the 9th proviso 
under Migration and Refugee Assistance in title II of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Acts, 
1989 (Public Law 100-461 as amended); or
* * * * *


Sec. 400.44  [Amended]

    14. Section 400.44 is amended by adding the words ``unless 
otherwise provided by Federal law'' after the word ``Act'' at the end 
of the sentence.

Subpart E--[Revised]

    15. Subpart E is revised to read as follows:

Subpart E--Refugee Cash Assistance

General


Sec. 400.50  Basis and scope.

    This subpart sets forth requirements concerning grants to States 
under section 412(e) of the Act for refugee cash assistance (RCA).


Sec. 400.51  Opportunity to apply for cash assistance.

    (a) A State or its designee agency(s) must provide any individual 
wishing to do so, an opportunity to apply for cash assistance and must 
determine the eligibility of each applicant.
    (b) In determining eligibility for cash assistance, the State or 
its designee agency(s) must refer elderly or disabled refugees and 
refugees with dependent children to other cash assistance programs to 
apply for assistance in accordance with Sec. 400.52.
    (c) In providing notice to an applicant or recipient to indicate 
that assistance has been authorized or that it has been denied or 
terminated, the State or its designee agency(s) must specify the 
program(s) to which the notice applies. For example, in the case of the 
public/private RCA program, if a refugee is determined ineligible for 
RCA, the local resettlement agency must provide notice of this 
determination to the refugee. In the case of an excepted RCA program, 
if a refugee applies for assistance and is determined ineligible for 
TANF but eligible for refugee cash assistance, the notice to the 
applicant must specify clearly the determinations with respect both to 
TANF and to refugee cash assistance. Similarly, if a recipient of 
refugee cash assistance is notified of termination because of reaching 
the time limit on such assistance, and the State or its designee 
reviews the case file to determine possible eligibility for TANF or GA 
due to changed circumstances, the notice to the recipient must indicate 
the result of that determination as well as the termination of refugee 
cash assistance.


Sec. 400.52  Determination of eligibility under other programs.

    (a) TANF. For refugees determined ineligible for cash assistance 
under the TANF program, the State or its designee must determine 
eligibility for refugee cash assistance in accordance with Secs. 400.54 
and 400.59 in the case of the public/private RCA program or 
Secs. 400.54 and 400.67 in the case of an RCA excepted program.
    (b) Cash assistance to the aged, blind, and disabled--(1) SSI. (i) 
The State agency or its designee must refer refugees who are 65 years 
of age or older, or who are blind or disabled,

[[Page 1171]]

promptly to the Social Security Administration to apply for cash 
assistance under the SSI program.
    (ii) If the State agency or its designee determines that a refugee 
who is 65 years of age or older, or blind or disabled, is eligible for 
refugee cash assistance, it must furnish such assistance until 
eligibility for cash assistance under the SSI program is determined, 
provided the conditions of eligibility for refugee cash assistance 
continue to be met.
    (2) OAA, AB, APTD, or AABD. In Guam, Puerto Rico, and the Virgin 
Islands--(i) Eligibility for cash assistance under the OAA, AB, APTD, 
or AABD program must be determined for refugees who are 65 years or 
older, or who are blind or disabled; and
    (ii) If a refugee who is 65 years of age or older, or blind or 
disabled, is determined to be eligible for refugee cash assistance, 
such assistance must be furnished until eligibility for cash assistance 
under the OAA, AB, APTD, or AABD program is determined, provided the 
conditions of eligibility for refugee cash assistance continue to be 
met.


Sec. 400.53  Emergency cash assistance to refugees.

    If the State agency or its designee determines that a refugee has 
an urgent need for cash assistance, it should process the application 
for cash assistance as quickly as possible and issue the initial 
payment to the refugee on an emergency basis.


Sec. 400.54  General eligibility requirements.

    (a) Eligibility for refugee cash assistance is limited to those 
who--
    (1) Are new arrivals who have resided in the U.S. less than the RCA 
eligibility period determined by the ORR Director in accordance with 
Sec. 400.211;
    (2) Are ineligible for TANF, SSI, OAA, AB, APTD, and AABD programs;
    (3) Meet immigration status and identification requirements in 
subpart D of this part or are the dependent children of, and part of 
the same family unit as, individuals who meet the requirements in 
subpart D, subject to the limitation in Sec. 400.208 with respect to 
nonrefugee children; and
    (4) Are not full-time students in institutions of higher education, 
as defined by the Director.
    (b) A refugee may be eligible for refugee cash assistance under 
this subpart during a period to be determined by the Director in 
accordance with Sec. 400.211.


Sec. 400.55  Eligibility redeterminations in States with TANF residency 
requirements.

    In cases where refugee families with dependent children, normally 
eligible for TANF, are placed in the RCA program due to a State TANF 
residency requirement, a State must conduct a redetermination of 
eligibility for TANF within one month of the refugee family completing 
the TANF residency period. If eligible, the refugee family must be 
transferred from the RCA program to the TANF program at that time.

Public/Private RCA Program


Sec. 400.56  Structure.

    (a) States must enter into a partnership agreement with local 
resettlement agencies for the operation of a public/private RCA 
program, unless they meet the excepted criteria specified in 
Sec. 400.66.
    (b) The public/private RCA program must be administered by the 
State through contracts with local resettlement agencies or a lead 
resettlement agency that provides initial resettlement services under 
the terms of the Department of State Cooperative Agreement for 
Reception and Placement.
    (c) The public/private RCA program must be Statewide, unless the 
State and local resettlement agencies agree that it is not in the best 
interests of refugees to provide a public/private RCA program in a 
particular area of the State.
    (d) Local resettlement agencies must be responsible for determining 
eligibility, and authorizing and providing payments to eligible 
refugees.
    (e) States and local resettlement agencies may not propose to 
operate a public/private RCA program and an excepted RCA program in the 
same geographic location.
    (f) States must ensure the provision of RCA assistance to eligible 
refugees in the State who are sponsored by resettlement agencies in 
bordering states, where applicable.


Sec. 400.57  Planning and consultation process.

    The State and the local agencies that resettle refugees in the 
State must engage in a joint planning and consultation process to 
develop a public/private RCA plan in accordance with the requirements 
under Sec. 400.58.
    (a) Primary participants in the planning process must include 
representatives of the State and each local agency that resettles 
refugees in the State. During the planning process, the State must 
fully consult with representatives of refugee mutual assistance 
associations (MAAs), local community services agencies, and other 
agencies that serve refugees.
    (b) The public must be given the opportunity to comment on the plan 
in writing before it is transmitted to the Director of ORR.
    (c) Each local resettlement agency that resettles refugees in the 
State must inform its national resettlement agency of the proposed 
public/private RCA program and must obtain a letter of agreement from 
the national agency that the national agency will continue to place 
refugees in the State under the public/private RCA program.


Sec. 400.58  Content and submission of public/private RCA plan.

    (a) States and local resettlement agencies must develop a public/
private RCA plan which describes how the State and local resettlement 
agencies will administer and provide refugee cash assistance to 
eligible refugees. The plan must describe the agreed-upon public/
private RCA program including:
    (1) The proposed income standard to be used to determine RCA 
eligibility;
    (2) The proposed payment levels to be used to provide cash 
assistance to eligible refugees;
    (3) Assurance that the payment levels established are not lower 
than the comparable State TANF amounts;
    (4) A detailed description of how benefit payments will be 
structured, including a description of employment incentives and/or 
income disregards to be used, if any;
    (5) A description of how all RCA eligible refugees residing in the 
State will have easy access to cash assistance and services;
    (6) A description of the procedures to be used to ensure 
appropriate protections and due process for refugees, such as notice of 
adverse action and the right to mediation, a pre-termination hearing, 
and an appeal to an independent entity;
    (7) A description of proposed exemptions from participation in 
employability services;
    (8) A description of the employment and self-sufficiency services 
that the local resettlement agencies will be contracted to provide to 
RCA recipients;
    (9) Procedures for providing RCA to eligible secondary migrants who 
move to the State, including secondary migrants who were sponsored by a 
resettlement agency that does not have a presence in the receiving 
State.
    (10) If applicable, provisions for providing assistance to refugees 
resettling in the State who are sponsored by a resettlement agency in a 
bordering State which does not have an office in the State of 
resettlement;

[[Page 1172]]

    (11) A description of the procedures to be used to safeguard the 
disclosure of information on refugee clients;
    (12) Letters of agreement from the national voluntary resettlement 
agencies that refugee placements in the State will continue under the 
public/private RCA program; and
    (13) A breakdown of the proposed program and administrative costs 
of both the cash assistance and service components of the public/
private RCA program, including per capita caps on administrative costs.
    (b) In cases where the State, after consultation with the local 
resettlement agencies in the State, determines that a public/private 
RCA program is not feasible statewide and proposes to implement a 
public/private RCA program in only a portion of the State and to 
operate an excepted RCA program in the balance of the State, the 
State's RCA plan must include the information required in Sec. 400.66.
    (c) The plan must be signed by the Governor or his or her designee.
    (d) The Director of ORR will follow the procedures in Sec. 400.8 
for the approval of public/private RCA plans.
    (e) Any amendments to the public/private RCA plan must be developed 
in consultation with the local resettlement agencies and must be 
submitted to ORR in accordance with Sec. 400.8. The Director of ORR 
will follow the procedures in Sec. 400.8 for approval of amendments to 
public/private RCA plans.


Sec. 400.59  Eligibility for the public/private RCA program.

    Eligibility for refugee cash assistance under the public/private 
program is limited to those who meet the income eligibility standard 
jointly established by the State and local resettlement agencies in the 
State.


Sec. 400.60  Payment levels.

    (a)(1) Under the public/private RCA program, States and the local 
resettlement agencies contracted to administer the RCA program must 
make monthly cash assistance payments to eligible refugees that do not 
exceed the following payment ceilings, according to the number of 
persons in the assistance unit, except as noted in paragraph (b):

------------------------------------------------------------------------
                                                                Monthly
                     Size of family unit                        payment
                                                                ceiling
------------------------------------------------------------------------
1 person.....................................................       $335
2 persons....................................................        450
3 persons....................................................        570
4 persons....................................................        685
------------------------------------------------------------------------

    (2) For family units greater than 4 persons, the payment ceiling 
may be increased by $70 for each additional person.
    (b) States and local resettlement agencies may not make payments to 
refugees that are lower than the State's TANF payment for the same 
sized family unit. In States that have TANF payment levels that are 
higher than the ceilings established in this section, States and local 
resettlement agencies must provide payment levels under the public/
private RCA program that are comparable to the State's TANF payment 
levels.
    (c) States and local resettlement agencies may design an assistance 
program that combines RCA payments with income disregards or other 
incentives such as employment bonuses, or graduated payments in order 
to encourage early employment and self-sufficiency, as long as the 
total combined payment in any given month does not exceed the monthly 
ceilings established in this section.
    (d) If the Director determines that the payment ceilings need to be 
adjusted for inflation, the Director will publish a final notice in the 
Federal Register announcing the new payment ceilings.


Sec. 400.61  Services to public/private RCA recipients.

    (a) Services provided to recipients of refugee cash assistance in 
the public/private RCA program must be provided by the local 
resettlement agencies that administer the public/private RCA program or 
their subcontractors.
    (b) Allowable services under the public/private program are limited 
to those services described in Secs. 400.154 and 400.155 and are to be 
funded in accordance with Sec. 400.206.
    (c) States and local resettlement agencies must coordinate on a 
regular basis with refugee mutual assistance associations and other 
ethnic representatives that represent or serve the ethnic populations 
that are being resettled in the U.S. to ensure that the services 
provided under the public/private RCA program:
    (1) Are appropriate to the linguistic and cultural needs of the 
incoming populations; and
    (2) Are coordinated with the longer-term resettlement services 
frequently provided by ethnic community organizations after the end of 
the time-limited RCA eligibility period.


Sec. 400.62  Treatment of eligible secondary migrants, asylees, and 
Cuban/Haitian entrants.

    The State and local resettlement agencies must establish procedures 
to ensure that eligible secondary migrant refugees, asylees, and Cuban/
Haitian entrants have access to public/private RCA assistance if they 
wish to apply. In developing these procedures, consideration must be 
given to ensuring coverage of eligible secondary migrants and other 
eligible applicants who were sponsored by a resettlement agency which 
does not have a presence in the State or who were not sponsored by any 
agency.


Sec. 400.63  Availability of agency policies.

    The State must ensure that each participating local resettlement 
agency makes available to refugees the written policies of the public/
private RCA program, including agency policies regarding eligibility 
standards, the duration and amount of cash assistance payments, the 
requirements for participation in services, the penalties for non-
cooperation, and client rights and responsibilities to ensure that 
refugees understand what they are eligible for, what is expected of 
them, and what protections are available to them. States must ensure 
that agency policy materials are made available to refugee clients in 
English and in their own language.


Sec. 400.64  Preparation of local resettlement agencies.

    The State and the national voluntary agencies whose affiliate 
agencies will be responsible for implementing the public/private RCA 
program:
    (a) Must determine the training needed to enable local resettlement 
agencies to achieve a smooth implementation of the RCA program; and
    (b) Must provide the training in a uniform way to ensure that all 
local resettlement agencies in the State will implement the public/
private RCA program in a consistent manner.


Sec. 400.65  Monitoring.

    (a) Joint monitoring. (1) The Director of ORR, or his or her 
designee, and the State must conduct joint monitoring of the public/
private RCA program, beginning no later than one year after the new 
program has been implemented to ensure that the program is being 
carried out in a manner that produces positive self-sufficiency and 
resettlement outcomes.
    (2) Subject to the availability of appropriated funds, the national 
voluntary agencies must also participate in this joint monitoring in 
locations where their local affiliates participate in a public/private 
RCA program.
    (b) The State must conduct compliance monitoring to ensure that 
local resettlement agencies are complying with the terms of the

[[Page 1173]]

approved public/private RCA plan and with ORR regulations in regard to 
the RCA program.

Exceptions to the Public/Private Program


Sec. 400.66  Criteria and procedure for granting an exception.

    (a) A State that has good reason to believe that a public/private 
refugee cash assistance program is not workable in the State or would 
not be in the best interests of refugees resettled in the State may 
request an exception to the public/private RCA program.
    (1) To qualify for an RCA exception, a State:
    (i) Must demonstrate that it made a good faith effort to reach 
agreement on a public/private RCA program through a planning and 
consultation process; and
    (ii) Must meet one of the following criteria:
    (A) Local resettlement agencies operating in the State declined to 
accept responsibility for the provision of cash assistance;
    (B) The contemplated provision of cash assistance by local 
resettlement agencies would not provide adequate access to cash 
assistance for newly-arrived RCA refugees;
    (C) The Governor concluded that a public/private RCA program would 
not be in the best interests of refugees; or
    (D) The Governor determined that administrative funding is not 
sufficient to enter into a public/private partnership and administer 
the remaining components of the program.
    (2) To request an exception to the public/private RCA program, a 
State must submit a written request signed by the Governor or his or 
her designee which:
    (i) Provides documentation that the State made a good faith effort 
to reach agreement on a public/private RCA program through a planning 
and consultation process; and
    (ii) Addresses one of the four criteria for an exception described 
in paragraph (a)(1)(ii) of this section.
    (3) If a State's request for an exception meets the required 
criteria outlined in paragraph (a)(1), the Director will approve the 
request.
    (b) States that determine that a public/private RCA program or an 
RCA excepted program are not the best approach for their State may 
choose instead to establish an alternative approach under the Wilson/
Fish program.


Sec. 400.67  Eligibility and payment levels in an excepted RCA program.

    In administering an approved excepted RCA program, the State agency 
must operate its refugee cash assistance program consistent with the 
provisions of its TANF program in regard to:
    (a) The determination of initial and on-going eligibility 
(treatment of income and resources, budgeting methods, need standard);
    (b) The determination of benefit amounts (payment levels based on 
size of the assistance unit, income disregards);
    (c) Proration of shelter, utilities, and similar needs;
    (d) The date that refugee cash assistance (RCA) begins, in relation 
to the date of application; and
    (e) Any other State TANF rules relating to eligibility and 
payments.


Sec. 400.68  Non-applicable TANF requirements.

    States that are granted an RCA exception may not apply certain TANF 
requirements to refugee cash assistance applicants or recipients as 
follows:
    (a) A State's durational residency requirement imposed on 
applicants for TANF may not apply to applicants for RCA; and
    (b) TANF work requirements (hours of participation and allowable 
work activities) may not apply to RCA applicants or recipients. States 
must meet the requirements in subpart I of 45 CFR part 400 with respect 
to the provision of services for RCA recipients.


Sec. 400.69  Notification to local resettlement agency.

    The State must notify promptly the agency (or local affiliate) 
which provided for the initial resettlement of a refugee whenever the 
refugee applies for refugee cash assistance under an RCA excepted 
program.


Sec. 400.70  [Amended]

    16. Section 400.70 is amended by adding the words ``under both the 
public/private RCA program and State-administered RCA exceptions'' 
after the word ``assistance'' and before the word ``concerning''.


Sec. 400.71  [Amended]

    17. Section 400.71 is amended by removing the words 
``Sec. 400.72(a) of'' from the definition of the term Designee.


Sec. 400.72  [Amended]

    18. Section 400.72 is amended by adding introductory text to read 
as follows:
    Sec. 400.72  Arrangements for employability services. Paragraphs 
(a) and (b) of this section apply equally to States that operate a 
public/private RCA program and to States that operate an ORR-approved 
RCA excepted program. Paragraph (c) applies only to RCA excepted 
programs.
    (a) * * *
* * * * *


Sec. 400.75  [Amended]

    19. Section 400.75(b) is amended by adding the words ``or its 
designee'' after the words ``State agency''.


Sec. 400.76  [Revised]

    20. Section 400.76 is revised to read as follows:
    Sec. 400.76  Criteria for exemption from registration for 
employment services, participation in employability service programs, 
and acceptance of appropriate offers of employment.
    States and local resettlement agencies operating a public/private 
RCA program, as well as States operating an RCA excepted program, may 
determine what specific exemptions, if any, are appropriate for 
recipients of a time-limited RCA program in their State.


Sec. 400.77  [Amended]

    21. Section 400.77(a) is amended by removing the 
words``Sec. 400.82(b)(3)(ii)'' and adding in their place the words 
``Sec. 400.82(c)(2).''


Sec. 400.78  [Removed]

    22. Section 400.78 is removed.


Sec. 400.79  [Amended]

    23. Section 400.79(a) is amended by removing the word ``filing'' 
and adding in its place the word ``family'' before the word ``unit''.
    24. Section 400.79 is further amended by adding the word ``and'' at 
the end of the paragraph (c)(1) and by removing the semicolon and the 
word ``and'' at the end of paragraph (c)(2) and adding in their place a 
period.


Sec. 400.80  [Removed]

    25. Section 400.80 and the undesignated centerhead immediately 
preceding it are removed.


Sec. 400.81  [Amended]

    26. Section 400.81 is amended by removing the word ``AFDC'' and 
adding in its place the word ``TANF'' in paragraphs (a) introductory 
text and (a)(4).
    27. Section 400.81(b) is further amended by adding a sentence at 
the end of paragraph (b) that reads: ``This training may only be made 
available to individuals who are employed.''


Sec. 400.82  [Amended]

    28. Section 400.82 is amended by redesignating paragraph (b)(3) as 
(c) and by redesignating paragraphs (b)(3)(i) and (ii) as (1) and (2) 
respectively.
    29. Section 400.82 is further amended by revising paragraphs (a) 
and (b) to read as follows:

[[Page 1174]]

Sec. 400.82  Failure or refusal to accept employability services or 
employment.

    (a) Termination of assistance. When, without good cause, an 
employable non-exempt recipient of refugee cash assistance under the 
public/private RCA program or under an approved RCA excepted program 
has failed or refused to meet the requirements of Sec. 400.75(a) or has 
voluntarily quit a job, the State, or the agency responsible for the 
provision of RCA, must terminate assistance in accordance with 
paragraphs (b) and (c) of this section.
    (b) Notice of intended termination--(1) Public/private RCA program. 
(i) In cases of proposed action to terminate, discontinue, suspend, or 
reduce assistance, the local resettlement agency responsible for the 
provision of RCA, must give timely and adequate notice, in accordance 
with adverse action procedures the State has established under the 
public/private RCA program to ensure due process.
    (ii) Local resettlement agencies must provide written procedures in 
English and in the refugee's own language, for good cause determination 
and sanctioning of refugees who do not comply with the requirements of 
the program and for refugees to file appeals.
    (iii) The written notice must include--
    (A) An explanation of the reason for the action and the 
consequences of such failure or refusal; and
    (B) Notice of the recipient's right to a hearing under Sec. 400.83.
    (2) RCA-excepted program. In cases of proposed action to terminate, 
discontinue, suspend, or reduce assistance, the State agency must give 
timely and adequate notice following the same procedures as those used 
in its TANF program.
* * * * *
    30. Section 400.83 is revised to read as follows:


Sec. 400.83  Mediation and fair hearings.

    (a) Mediation--(1) Public/private RCA program. The State must 
ensure that a mediation period prior to imposition of sanctions is 
provided to refugees by local resettlement agencies under the public/
private RCA program. The State and local resettlement agencies must 
determine the length of the mediation period and must include a 
description of the mediation period in the public/private RCA plan 
required in Sec. 400.58.
    (2) RCA-excepted program. Under an RCA-excepted program, the State 
must use the same procedures for mediation/conciliation as those used 
in its TANF program.
    (b) Hearings--(1) Public/private RCA program. (i) The State must 
ensure that local resettlement agencies provide an applicant for or 
recipient of refugee cash assistance an opportunity for an oral pre-
termination hearing to contest adverse determinations, including a 
determination concerning employability or failure or refusal to 
participate in employment services or to accept an appropriate offer of 
employment, resulting in denial or termination of assistance.
    (A) Hearings must be conducted by an impartial official or designee 
of the local resettlement agency who has not been involved directly in 
the initial determination of the action in question.
    (B) A hearing need not be granted when Federal law requires 
automatic grant adjustments for classes of recipients unless the reason 
for an individual appeal is incorrect grant computation.
    (ii) The State must ensure that local resettlement agencies provide 
timely and adequate notice in the refugee's language of any 
determination.
    (iii) The State must ensure that procedures are established to 
provide refugees a right of final appeal for an in-person hearing 
provided by an impartial, independent entity outside of the local 
resettlement agency.
    (2) RCA-excepted program. The State must provide an applicant for 
or recipient of refugee cash assistance an opportunity for a hearing, 
using the same procedures and standards used in the State's TANF 
program to contest a determination of employability, or failure or 
refusal to participate in employment services or accept an appropriate 
offer of employment, resulting in denial or termination of assistance.


Sec. 400.100  [Amended]

    31. Section 400.100(a)(2) is amended by removing the word 
``filing'' and adding in its place the word ``family'' before the word 
``unit''.


Sec. 400.101  [Amended]

    32. Section 400.101(a) is revised to read as follows:


Sec. 400.101  Financial eligibility standards.

* * * * *
    (a) In States with medically needy programs under 42 CFR part 435, 
subpart D:
    (1) The State's medically needy financial eligibility standards 
established under 42 CFR part 435, subpart I, and as reflected in the 
State's approved title XIX State Medicaid plan; or
    (2) A financial eligibility standard established at up to 200% of 
the national poverty level; and
* * * * *
    33. Section 400.101(b) is amended by removing the words 
``established under Sec. 233.20(a)(2) of this title'' and adding in 
their place the words ``in effect as of July 16, 1996, including any 
modifications elected by the State under section 1931(b)(2) of the 
Social Security Act.''


Sec. 400.102  [Revised]

    34. Section 400.102 is revised to read as follows:


Sec. 400.102  Consideration of income and resources.

    (a) Except as specified in paragraphs (b) and (c) of this section, 
in considering financial eligibility of applicants for refugee medical 
assistance, the State agency must--
    (1) In States with medically needy programs, use the standards 
governing determination of income eligibility in 42 CFR 435.831, and as 
reflected in the State's approved title XIX State Medicaid plan.
    (2) In States without medically needy programs, use the standards 
governing consideration of income and resources of AFDC applicants in 
effect as of July 16, 1996.
    (b) The State may not consider in-kind services and shelter 
provided to an applicant by a sponsor or resettlement agency in 
determining eligibility for and receipt of refugee medical assistance.
    (c) The State must base eligibility for refugee medical assistance 
on the applicant's income and resources on the date of application. The 
State agency may not use the practice of averaging income prospectively 
over the application processing period in determining income 
eligibility for refugee medical assistance.
    35. Section 400.104 is revised to read as follows:


Sec. 400.104  Continued coverage of recipients who receive increased 
earnings from employment.

    (a) If a refugee who is receiving refugee medical assistance 
receives earnings from employment, the earnings shall not affect the 
refugee's continued medical assistance eligibility.
    (b) If a refugee, who is receiving Medicaid and has been residing 
in the U.S. less than the time-eligibility period for refugee medical 
assistance, becomes ineligible for Medicaid because of earnings from 
employment, the refugee may be transferred to refugee medical 
assistance without an eligibility redetermination.
    (c) Under paragraphs (a) and (b) of this section, a refugee shall 
continue to receive refugee medical assistance until he/she reaches the 
end of his or her time-eligibility period for refugee

[[Page 1175]]

medical assistance, in accordance with Sec. 400.100(b).
    (d) In cases where a refugee is covered by employer-provided health 
insurance, any payment of RMA for that individual must be reduced by 
the amount of the third party payment.


Sec. 400.154  [Amended]

    36. Section 400.154(j) is amended by removing the word ``AFDC'' and 
adding in its place the word ``TANF''.
    37. Section 400.155 is amended by adding a new paragraph (i) that 
reads as follows:


Sec. 400.155  Other services.

* * * * *
    (i) Citizenship and naturalization preparation services including 
English language training and civics instruction to prepare refugees 
for citizenship, application assistance, and the provision of 
interpreter services for the citizenship interview.


Sec. 400.203  [Amended]

    38. Section 400.203(a)(1) is amended by removing the word ``AFDC'' 
and adding in its place the word ``TANF''.


Sec. 400.207  [Amended]

    39. Section 400.207 is amended by adding a sentence after the word 
``Families'' that reads: ``Such costs may include reasonable and 
necessary administrative costs incurred by local resettlement agencies 
in providing assistance and services under a public/private RCA 
program.'' and by removing the word ``Such'' in the last sentence and 
adding in its place the word ``Administrative''.


Sec. 400.208  [Amended]

    40. Section 400.208 is amended by removing the word ``filing'' 
whenever it appears and adding in its place the word ``family''.


Sec. 400.209  [Amended]

    41. Section 400.209 is amended by removing the word ``filing'' 
whenever it appears and adding in its place the word ``family'' and by 
removing the word ``AFDC'' in paragraph (a) and adding in its place the 
word ``TANF''.
    42. Section 400.210 is amended by revising paragraph (b)(2) to read 
as follows:


Sec. 400.210  Time limits for obligating and expending funds and for 
filing State claims.

* * * * *
    (b) * * *
    (2) A State must expend its social service and targeted assistance 
grants no later than two years after the end of the FFY in which the 
Department awards the grant. A State's final financial report on 
expenditures of social services and targeted assistance grants must be 
received no later than 90 days after the end of the two-year 
expenditure period. At that time, if a State's final financial 
expenditure report has not been received, the Department will 
deobligate any unexpended funds, including any unliquidated 
obligations, based on a State's last submitted financial report.


Sec. 400.211  [Amended]

    43. Section 400.211(a) is amended by removing the word 
``necessary'' and adding in its place the words ``a reduction in the 
eligibility period is indicated'' after the word ``if''.
    44. Section 400.211(a)(2) is amended by removing the word 
``member'' and adding in its place the word ``number'' after the word 
``annual''.
    45. Section 400.211(b) is amended by removing the word 
``impleting'' and adding in its place the word ``implementing''.


Sec. 400.301  [Amended]

    46. Section 400.301(b) is amended by removing the words ``only 
under extraordinary circumstances and'' after the word ``granted''.
    47. Section 400.301(c) is amended by adding the following sentence 
after the words ``subpart L'': ``Replacement designees must also adhere 
to the subpart L regulations regarding formula allocation grants for 
targeted assistance, if the State authorized the replacement designee 
appointed by the Director to act as its agent in applying for and 
receiving targeted assistance funds''.
    48. Section 400.301(c) is further amended by removing the words 
``400.55(b)(2), 400.56(a)(1), 400.56(a)(2), 400.56(b)(2)(i)'' and 
adding in their place the words ``400.52(b)(2)(i), 400.55, 400.58(c)''.

PART 401--CUBAN/HAITIAN ENTRANT PROGRAM

    1. The authority citation for Part 401 continues to read as 
follows:

    Authority: Section 501(a), Pub. L. 96-422, 94 Stat. 1810 (8 
U.S.C. 1522 note); Executive Order 12341 (January 21, 1982).


Sec. 401.12  [Amended]

    l. Section 401.12(a) is amended by removing the word 
``Sec. 400.62'' and adding in its place the words ``subparts E and G of 
part 400 of this title''.

[FR Doc. 99-202 Filed 1-7-99; 8:45 am]
BILLING CODE 4184-01-P