[Federal Register Volume 64, Number 142 (Monday, July 26, 1999)]
[Rules and Regulations]
[Pages 40290-40292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18655]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Parts 260, 261, 262, 263, 264, and 265


Temporary Assistance for Needy Families (TANF) Program

AGENCY: Administration for Children and Families, Office of Family 
Assistance, HHS.

ACTION: Technical and correcting amendments.

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SUMMARY: This document contains technical correcting amendments to the 
Temporary Assistance for Needy Families final rule published on April 
12, 1999 (64 FR 17720). The final rule implements key statutory 
provisions related to work, penalties, and data collection.

DATES: Effective October 1, 1999.

FOR FURTHER INFORMATION CONTACT: Ann Burek, Office of Family 
Assistance, 202-401-4528.

SUPPLEMENTARY INFORMATION:

I. Background

    We published the final rule on the Temporary Assistance for Needy 
Families (TANF) program on April 12, 1999 in the Federal Register (64 
FR 17720). The purpose of the final rule is to implement key provisions 
of the new welfare block grant program, which was enacted as part of 
the Personal Responsibility and Work Opportunity Reconciliation Act of 
1996. The effective date of the rule is October 1, 1999.

II. Need for Technical and Correcting Amendments in 45 CFR Parts 
260, 261, 262, 263, 264, and 265

    This document corrects technical errors and omissions in the 
preamble and text of the final regulations and refines certain 
provisions to make them clearer.

A. Regulatory Text

    We have made the following changes in the regulatory text:
     In Sec. 260.30, we defined noncustodial parent primarily 
for the purpose of specifying who must be included under certain 
reporting provisions in part 265. In fact, although the preamble uses 
the term in a number of places, part 265 is the only place in the 
regulation that the term is used. But some readers were assuming that 
the definition restricted the benefits and services that noncustodial 
parents might receive. Similarly, the definition created confusion 
about exactly what needed to be reported if a noncustodial parent was 
involved. We have refined the definition at Sec. 260.30 to eliminate 
the confusion and revised the regulatory text at Sec. 265.3 to clearly 
address the circumstances under which States must report information on 
noncustodial parents.
     The changes to the heading of Sec. 260.59 correct errors 
in format.
     In Sec. 261.56, we have inserted a missing quotation mark.
     In Sec. 262.5, we intended to give States that could not 
meet the reporting deadline for the first two quarters of FY 2000 data, 
due to Y2K compliance activities, additional time to submit the data 
and avoid a penalty. While the June 30, 2000, date in the rules gave 
States an additional 90 days to submit the first quarter's data, it did 
not give States the intended additional time for the second quarter's 
data. States that submitted the second quarter's data by June 30 would 
not have been subject to a reporting penalty under the normal TANF 
reporting rules and therefore received no additional time for that 
quarter. This result was inadvertent. In order to provide the 
additional time that we intended, we should have specified a September 
30, 2000, date as the final deadline for States wishing to claim 
reasonable cause for failing to meet the reporting requirements on a 
timely basis. Thus, we are making that change as a technical amendment. 
Corresponding changes should also be made to the preamble references to 
July 1, 2000, on pages 17804 (column 3) and 17866 (column 1) and the 
reference to June 30, 2000, on page 17858 (column 3).
     In Sec. 263.2(b)(1)(iii), we have added some statutory 
language that we had inadvertently omitted from the final rule. It is 
clear from the statute at section 409(a)(7)(B)(i)(IV) and the preamble 
discussion on page 17822 (i.e., in the first comment) that the third 
category of ``eligible families,'' for MOE purposes, includes only 
``families of aliens lawfully present in the United States'' that would 
be eligible for TANF, but for the alien provisions in PRWORA. We have 
corrected the regulatory text to reflect this limitation.
     We are also refining Sec. 263.2(d). The regulation at 
Sec. 260.31(c) provides that the definition of assistance does not 
apply to the use of the term ``assistance'' in subpart A of part 263--
the subpart that addresses allowable MOE expenditures. The MOE 
regulation at Sec. 263.2(d) included a similar provision. However, this 
latter provision referenced only paragraph (a) of Sec. 263.2. Since 
paragraph (b)(1)(i) also included the term ``assistance,'' readers were 
unsure whether the definition of assistance applied in paragraph 
(b)(1)(i). The effect of applying the definition of assistance in 
paragraph (b)(1)(i) would have been to substantially narrow the number 
and type of families for whom benefits and services that were not 
``assistance'' would count as MOE.
    The language at Sec. 260.31(c) broadly addressed the issue of the 
applicability of the definition of assistance under that section to the 
MOE provisions of the rule. Under that provision, the definition of 
assistance does not limit what is considered assistance in paragraph 
(b)(1)(i) of Sec. 263.2. However, because readers found the language at 
Sec. 263.2(d) confusing, we have refined it to reaffirm that the 
definition of assistance does not limit paragraph (b)(1)(i). The change 
is a conforming amendment.
     In Sec. 264.3(b), we had omitted the word ``because'' from 
the original regulatory text.

[[Page 40291]]

     In Sec. 264.10(b), the original regulatory text included a 
reference to a regulatory section--Sec. 260.52--that had been repealed. 
Thus, we corrected the citation for the Income Eligibility and 
Verification Systems (IEVS) regulations (by replacing this reference 
with a reference to Sec. 205.60). Corresponding changes should also be 
made to the references to Sec. 205.62 on page 17849 in both the last 
paragraph in column one and the first response in column two.
     As already explained, in Sec. 265.3(f), we clarify the 
circumstances under which States must report information on 
noncustodial parents.

B. Preamble Language

    In addition to the regulatory text changes described above, we note 
the following correction to the preamble language in the final rule:
    In the preamble to Sec. 260.30, we inadvertently omitted some 
language explaining the new definition of ``expenditures'' in 
Sec. 260.30. We are removing the first paragraph at the beginning of 
the third column on page 17752 of the Federal Register notice (i.e., 
immediately following the heading ``(c) Significant Fiscal Terms'') and 
adding the following:

    In the final rule, we have added a definition for the term 
expenditure and added a new Sec. 260.33 to explain the circumstances 
under which refundable Earned Income Tax Credits and other 
refundable tax credits would count as expenditures. We felt it was 
necessary to include a basic definition of expenditure and add this 
additional regulatory text because, under the statute, Federal TANF 
funds and State MOE funds must both be used for ``expenditures.''
    We have received many questions from States and other interested 
parties about whether the costs of State EITC programs and other tax 
provisions could count as expenditures. The new definition and 
regulatory text are designed to address these questions.
    This subpart also incorporates a number of definitions that have 
substantial policy significance, which we included for clarification 
purposes.
    For example, it incorporates terms that distinguish among 
several types of expenditures. These distinctions are critical 
because the applicability of the TANF requirements varies depending 
on the source of funds for the expenditures. In particular, it 
distinguishes between expenditures from the Federal TANF grant and 
from the State funds expended to meet MOE requirements (either 
within the TANF program or in separate State programs).
    Following is a brief summary of the key fiscal terms:
    Expenditure. This term refers to the spending or disbursement of 
funds. It does not include costs avoided or revenue losses.

    Omission of this language had no substantive effect on the policy 
in the final rule. However, the language is helpful in explaining why 
we added a definition of expenditure, and the omitted language was 
referenced in the preamble discussion at Sec. 260.33.

Waiver of Notice and Comment Procedures

    The Administrative Procedure Act (5 U.S.C. 55(b)(B)) requires that 
the Department publish a notice of proposed rulemaking unless the 
Department finds, for good cause, that such notice is impracticable, 
unnecessary, or contrary to the public interest. In this instance, the 
notice affects only technical changes, clarifications, and corrections 
of text not properly included in the regulations. Accordingly, the 
Department has determined that it would be unnecessary and contrary to 
the public interest to use notice and comment procedures in issuing 
these amendments.

Impact Analysis

    No impact analysis is needed for the technical amendments. The 
impact of the necessary corrections falls within the analysis of the 
TANF final rule published in the Federal Register on April 12, 1999 (64 
FR 17873).

List of Subjects in 45 CFR Parts 260, 261, 262, 263, 264, and 265

    Administrative practice and procedure, Day care, Employment, Grant 
programs--social programs, Loan programs--social programs, Manpower 
training programs, Penalties, Public assistance programs, Reporting and 
recordkeeping requirements, Vocational education.

(Catalogue of Federal Domestic Assistance Programs: 93.558; TANF 
programs-State Family Assistance Grants, Assistance grants to 
Territories, Matching grants to Territories, Supplemental Grants for 
Population Increases and Contingency Fund; 93.559--Loan Fund; 
93.595--Welfare Reform Research, Evaluations and National Studies)

    Dated: July 14, 1999.
Kerry Weems,
Acting, Deputy Assistant Secretary for Information Resources 
Management.

    For the reasons set forth in the preamble, 45 CFR parts 260, 261, 
262, 263, 264, and 265, published in the Federal Register (64 FR 17720) 
on April 12, 1999, are corrected by making the following technical and 
correcting amendments:

PART 260--GENERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) 
PROVISIONS

    1. The authority citation for part 260 continues to read as 
follows:

    Authority: 42 U.S.C. 601, 601 note, 603, 604, 606, 607, 608, 
609, 610, 611, 619, and 1308.

    2. In Sec. 260.30, correct the definition of ``noncustodial 
parent'' to read as follows:


Sec. 260.30  What definitions apply under the TANF regulations?

 * * * * *
    Noncustodial parent means a parent of a minor child who:
    (1) Lives in the State; and
    (2) Does not live in the same household as the minor child.
* * * * *
    3. Correct the heading to Sec. 260.59 to read as follows:


Sec. 260.59  What penalty relief is available to a State that failed to 
comply with the five-year limit on Federal assistance because it 
provided federally recognized good cause domestic violence waivers?

PART 261--ENSURING THAT RECIPIENTS WORK

    4. The authority citation for part 261 continues to read as 
follows:

    Authority: 42 U.S.C. 601, 602, 607, and 609.


Sec. 261.56  [Corrected]

    5. Correct Sec. 261.56(b)(2)(ii) by adding a quotation mark in 
front of the words ``reasonable distance.''

PART 262--ACCOUNTABILITY PROVISIONS--GENERAL

    6. The authority citation for part 262 continues to read as 
follows:

    Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 606, 609, and 610.


Sec. 262.5  [Corrected]

    7. Correct Sec. 262.5(b)(1)(ii) by removing ``June 30, 2000'' and 
adding ``September 30, 2000'' in its place.

PART 263--EXPENDITURES OF STATE AND FEDERAL TANF FUNDS

    8. The authority citation for part 263 continues to read as 
follows:

    Authority: 42 U.S.C. 604, 607, 609, and 862a.

    9. Correct Sec. 263.2 by revising paragraph (b)(1)(iii) and adding 
a sentence to the end of paragraph (d) to read as follows:

[[Page 40292]]

Sec. 263.2  What kinds of State expenditures count toward meeting a 
State's basic MOE expenditure requirement?

    (b) * * *
    (1) * * *
    (iii) Are lawfully present in the United States and would be 
eligible for assistance, but for the application of title IV of PRWORA;
* * * * *
    (d) * * * Further, families that meet the criteria in paragraphs 
(b)(2) and (b)(3) of this section are considered to be eligible for 
TANF assistance for the purposes of paragraph (b)(1)(i) of this 
section.
* * * * *

PART 264--OTHER ACCOUNTABILITY PROVISIONS

    10. The authority citation for part 264 continues to read as 
follows:

    Authority: 31 U.S.C. 7501 et. seq.; 42 U.S.C. 609, 654, 1302, 
1308, and 1337.

    11. Correct Sec. 264.3(b) to read as follows:


Sec. 264.3  How can a state avoid a penalty for failure to comply with 
the five-year limit?

* * * * *
    (b) In addition, we will determine a State has reasonable cause if 
it demonstrates that it failed to comply with the five-year limit on 
Federal assistance because of federally recognized good cause domestic 
violence waivers provided to victims of domestic violence in accordance 
with provisions of subpart B of part 260.


Sec. 264.10  [Corrected]

    12. Correct Sec. 264.10(b) by removing ``205.62'' and inserting 
``205.60'' in its place.

PART 265--DATA COLLECTION AND REPORTING REQUIREMENTS

    13. The authority citation for part 265 continues to read as 
follows:

    Authority: 42 U.S.C. 603, 605, 607, 609, 611, and 613.

    14. Correct Sec. 265.3 by redesignating paragraph (f) introductory 
test as paragraph (f)(1); redesignating paragraphs (f)(1), (2), and (3) 
as paragraphs (f)(1)(i), (ii), and (iii), respectively; and adding the 
following paragraph (f)(2) to read as follows:


Sec. 265.3  What reports must the State file on a quarterly basis?

* * * * *
    (f) * * *
    (2) Reporting conditions. (i) If the noncustodial parent is the 
only member of the family receiving assistance, the State must report 
the disaggregated and aggregated information on the entire family under 
paragraphs (b) and (d) of this section, as applicable.
    (ii) If the noncustodial parent is only participating in work 
activities that do not constitute assistance (as defined in Sec. 260.31 
of this chapter) and the other members of the family are not receiving 
assistance, the State must report only the aggregated information under 
paragraph (b)(3) of this section on the noncustodial parent.

[FR Doc. 99-18655 Filed 7-23-99; 8:45 am]
BILLING CODE 4184-01-P