[Federal Register Volume 73, Number 113 (Wednesday, June 11, 2008)]
[Proposed Rules]
[Pages 33048-33064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13042]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of Child Support Enforcement

45 CFR Parts 309 and 310

RIN 0970-AC32


Computerized Tribal IV-D Systems and Office Automation

AGENCY: Office of Child Support Enforcement (OCSE), Administration for 
Children and Families, Department of Health and Human Services (HHS).

ACTION: Notice of proposed rule making (NPRM).

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SUMMARY: This proposed rule would enable Tribes and Tribal 
organizations currently operating a comprehensive Tribal Child Support 
Enforcement program under Title IV-D of the Social Security Act (the 
Act) to apply for and receive direct Federal funding for the costs of 
automated data processing. This proposed rule addresses the Secretary's 
commitment to provide instructions and guidance to Tribes and Tribal 
organizations on requirements for applying for, and upon approval, 
securing Federal Financial Participation (FFP) in the costs of 
installing, operating, maintaining, and enhancing automated data 
processing systems.

DATES: Consideration will be given to written comments received by 
August 11, 2008.

ADDRESSES: Written comments should be submitted to the Office of Child 
Support Enforcement, Administration for Children and Families, 
Department of Health and Human Services, 370 L'Enfant Promenade, SW., 
4th Floor, Washington, DC 20447, Attention: Director, Division of 
Policy, Mail Stop: OCSE/DP.
    A copy of this regulation may be downloaded from http://www.regulations.gov. You may also transmit written comments 
electronically via the Internet. To transmit comments electronically 
access https://www.regulations.acf.hhs.gov and follow the instructions 
provided. You may also submit comments by telefaxing to (202) 260-5980. 
This is not a toll-free number.
    Comments will be available for public inspection Monday through 
Friday, 8:30 a.m. to 5 p.m. on the 4th floor of the Department's 
offices at the above address.

FOR FURTHER INFORMATION CONTACT: Essey Workie, OCSE Division of Policy, 
(202) 401-9386. Deaf and hearing impaired individuals may call the 
Federal Dual Party Relay Service at 1-800-877-8339 between 8 a.m. and 7 
p.m. Eastern Time.

SUPPLEMENTARY INFORMATION:

Statutory Authority

    This notice of proposed rulemaking is published under the authority 
granted to the Secretary (the Secretary) of the Department of Health 
and Human Services (the Department) by section 1102 of the Social 
Security Act (the Act), 42 U.S.C. 1302. Section 1102 of the Act 
authorizes the Secretary to publish regulations, not inconsistent with 
the Act, which may be necessary for the efficient administration of the 
Title IV-D program.
    This proposed rule also is published in accordance with section 
455(f) of the Act. Section 455(f) of the Act requires the Secretary to 
issue regulations governing grants to Tribes and Tribal organizations 
operating child support enforcement programs.

Background

    Prior to enactment of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (PRWORA; Pub. L. 104-193), Title 
IV-D of the Act placed authority to administer the delivery of IV-D 
services solely with States. PRWORA authorized the Secretary to provide 
direct funding to Tribes and Tribal organizations to operate child 
support enforcement programs under Title IV-D and to promulgate 
implementing regulations.
    On August 21, 2000 the Tribal Child Support Enforcement Program 
notice of proposed rulemaking (NPRM) was published in the Federal 
Register (65 FR 50800). In 1998, the Federal Office of Child Support 
Enforcement (the Office) conducted a series of six Nation-to-Nation 
consultations with Indian Tribes, Tribal organizations and other 
interested parties with the goal of obtaining Tribal input prior to 
publishing the NPRM. The consultations were designed to solicit Tribal 
input prior to drafting the Federal regulations. The government-to-
government consultations were very useful in identifying key issues and 
evaluating policy options. The issues raised most frequently included 
Tribal sovereignty, jurisdiction, full faith and credit, access to 
automated Federal locate and enforcement processes and

[[Page 33049]]

automated systems, paternity establishment and funding.
    While the Office was familiar with the functionality contained in 
State systems and the degree of sophistication of those systems, it had 
no similar experience with the need for or availability of automation 
at the Tribal level. We received numerous comments on the NRPM 
indicating that automation was necessary and that without automation, 
it would be impossible for Tribes to accurately and efficiently process 
child support collections and that the costs for development of 
automated programs should be allowable for Federal Financial 
Participation (FFP) for Tribal IV-D programs. While we agree that 
automated data processing systems are helpful for recordkeeping, 
monitoring and high speed processing in child support enforcement 
cases, the final rule allows FFP only for limited automated systems and 
Office Automation expenditures. See 45 CFR 309.145(h). We stated in our 
response to comments to the final rule (65 FR at 16652) that we had 
begun consideration with stakeholders of appropriate minimum Tribal 
systems automation specifications in anticipation of Tribal IV-D 
programs moving toward high-speed automated data processing. A Federal/
Tribal workgroup was convened and considered such automation issues as 
compatibility, scale, functionality and costs, with a goal of 
developing a Model Tribal System, designed by the Office to allow 
comprehensive Tribal IV-D agencies to effectively and efficiently 
automate Tribal child support enforcement operations.
    This proposed rule sets forth requirements for comprehensive Tribal 
IV-D programs that must be met in order for Tribes and Tribal 
organizations to receive direct funding under section 455(f) of the Act 
for automated data processing systems.

Scope of Rulemaking

    Current regulations at 45 CFR part 309 establish the requirements 
that Tribes and Tribal organizations must meet to demonstrate the 
capacity to operate a child support enforcement program which meets the 
objectives of section 455(f) of the Act, including establishment of 
paternity, establishment, modification, and enforcement of support 
orders, and location of absent parents.
    We propose to amend the Federal child support regulations at 45 CFR 
Part 310, Comprehensive Tribal Child Support Enforcement (CSE) Programs 
which are obsolete, to address Computerized Tribal IV-D Systems and 
Office Automation. As proposed, 45 CFR Part 310 would establish a basic 
regulatory structure for installation, operation, maintenance, and 
enhancement of Computerized Tribal IV-D Systems and Office Automation. 
This NPRM also proposes to revise Sec.  309.145(h) which governs 
allowable costs for automated data processing computer systems and 
Office Automation associated with the Tribal IV-D program. This NPRM 
applies only to Tribes and Tribal organizations that operate 
comprehensive CSE programs under Sec.  309.65(a); this NPRM does not 
apply to Tribal CSE programs that are currently in the start-up phase 
of development.

Discussion of Regulatory Provisions

    The following is a discussion of all the regulatory provisions 
included in this NPRM. The discussion follows the order of regulatory 
text, addressing each subpart and section in turn.

Part 309--Tribal Child Support Enforcement (IV-D) Program

Section 309.145 What costs are allowable for Tribal IV-D programs 
carried out under Sec.  309.65(a) of this Part?
    Currently, Sec.  309.145(h) addresses authorized, limited costs 
related to Tribal IV-D programs' automation. We propose to amend Sec.  
309.145(h) to expand allowable activities and costs incurred by 
comprehensive Tribal IV-D programs to include the installation, 
operation, maintenance and enhancement of Model Tribal Systems and 
Office Automation.
    Proposed paragraph (h)(1) is almost identical to the language in 
current paragraph (h)(1) under which Federal funding at the applicable 
matching rate under Sec.  309.130(c) is available for the costs of 
planning efforts in the identification, evaluation, and selection of an 
automated data processing computer system solution meeting the program 
requirements defined in a Tribal IV-D plan and the automated systems 
requirements in Part 310. The applicable matching rate as defined in 
Sec.  309.130(c) would be ninety percent for comprehensive Tribal IV-D 
programs that are operating within the first three-year period of 
Federal funding; the applicable matching rate for comprehensive Tribal 
IV-D programs operating in all periods following the first three-year 
period would be eighty percent.) We have only added a reference to the 
proposed Part 310 which addresses automated systems requirements.
    Paragraph (h)(2) would allow FFP for costs of installation, 
operation, maintenance, and enhancement of a Model Tribal System as 
defined in and meeting the requirements of Part 310. The Model Tribal 
System was developed by the Office in collaboration with comprehensive 
Tribal IV-D programs to encompass those aspects of the Tribal child 
support program administration and case processing for which automation 
is deemed to be essential. Paragraph (h)(2) would authorize FFP for 
costs related to Model Systems installed by Tribal IV-D systems. 
Current paragraph (h) does not address funding for costs associated 
with the Model Tribal System. We discuss the Model Tribal System 
concept and requirements in detail under the explanation of Part 310. 
The decision to develop a Model Tribal System was based on the need for 
a cost-effective, efficient means of delivering automation to greatest 
number of Tribal IV-D programs in the most timely manner possible.
    Proposed paragraph (h)(3) is identical to current paragraph (h)(3) 
under which FFP is available for the costs associated with procurement, 
installation, operation and maintenance of essential Office Automation 
capability.
    Paragraph (h)(4) is almost identical to the current paragraph 
(h)(4) except for the addition of reference to Reasonable Costs at the 
end of the paragraph. The term Reasonable Cost is addressed later in 
this preamble and would mean a cost that, in nature and amount, does 
not exceed that which would be incurred by a prudent person under the 
circumstances prevailing at the time the decision was made to incur the 
cost. Therefore, under proposed paragraph (h)(4), FFP would be 
available for costs associated with the establishment of 
Intergovernmental Service Agreements with a State and another 
comprehensive Tribal IV-D agency for access to the State or other 
Tribe's existing automated data processing computer system to support 
Tribal IV-D program operations, and Reasonable Costs associated with 
use of such a system. The decision provides Tribal IV-D programs 
greater flexibility in their acquisition of automation to support their 
administrative and case processing requirements.
    We have added a new paragraph (h)(5) that would allow FFP in the 
costs of operation and maintenance of an existing Tribal automated data 
processing system designed, developed, installed or enhanced entirely 
with Tribal funds if the software ownership rights and license 
requirements in proposed Sec.  310.25(c) are met. As proposed under 
Part 310, comprehensive Tribal IV-D programs

[[Page 33050]]

are free to develop automated systems entirely funded by the Tribe. 
Under proposed paragraph (h)(5), we would allow FFP for operation and 
maintenance costs of such systems under one condition: The Tribe or 
Tribal organization must have the software ownership rights and must 
meet license requirements in proposed Sec.  310.25(c). This condition 
is necessary because proprietary software, when purchased from vendors, 
typically remains the sole possession of the vendor. Any modifications 
or upgrades that are necessitated by changes in regulation or statute 
would require a financial outlay if the program were only leasing the 
software. It is important that a Tribal IV-D program be in a position 
to make changes to software without the need for going through a 
vendor, and that any such software, funded in whole or part with FFP, 
be freely available to the Federal government to use and authorize 
others to use for government purposes.
    Existing paragraph (h)(5) would be renumbered (h)(6) and FFP would 
continue to be authorized for the costs of other automation and 
automated data processing computer system costs in accordance with 
instructions and guidance issued by the Secretary.

Part 310--Computerized Tribal IV-D Systems and Office Automation

    The proposed regulation revises Part 310 to address the specific 
requirements for comprehensive Tribal IV-D program automated systems. 
The Part begins with a Table of Contents and consists of the following 
subparts:
     Subpart A--General Provisions
     Subpart B--Requirements for Computerized Tribal IV-D 
Systems and Office Automation
     Subpart C--Funding for Computerized Tribal IV-D Systems 
and Office Automation
     Subpart D--Accountability and Monitoring of Computerized 
Tribal IV-D Systems

Subpart A--General Provisions

Section 310.0 What does this Part cover?
    This section summarizes the conditions for Federal funding of and 
requirements governing Computerized Tribal IV-D Systems and Office 
Automation. These include the automated systems options for 
comprehensive Tribal IV-D programs; the functional requirements for the 
Model Tribal Systems; the security and privacy requirements for 
Computerized Tribal IV-D Systems and Office Automation; the conditions 
for funding the installation, operation, maintenance, and enhancement 
of Computerized Tribal IV-D Systems and Office Automation; the 
conditions that apply to acquisitions of Computerized Tribal IV-D 
Systems; and the accountability and monitoring of Computerized Tribal 
IV-D Systems.
Section 310.1 What definitions apply to this Part?
    Paragraph (a) of this section of the proposed rule includes 
definitions of terms used in Part 310. In drafting this section, we 
have defined those terms used in the proposed rule that must be 
understood consistently by all who use these rules.
    The first definition in this proposed rule is Automated Data 
Processing Services (ADP Services) which means services for 
installation, maintenance, operation, and enhancement of ADP equipment 
and software performed by a comprehensive Tribal IV-D agency or for 
that agency through a Service Agreement or other contractual 
relationship with a State, another Tribe or private sector entity. This 
definition is derived from 45 CFR 95.605 where requirements for FFP in 
the costs of Automatic Data Processing Equipment and services are 
addressed. The definition for the term ADP Services is essential to the 
proposed Part 310 because it modifies the definition provided in 45 CFR 
95.605 to include comprehensive Tribal IV-D programs as eligible to 
perform or receive such ADP services.
    Comprehensive Tribal IV-D agency is the second definition in the 
proposed rule. Comprehensive Tribal IV-D agency means the 
organizational unit in the Tribe or Tribal organization that has the 
authority for administering or supervising a comprehensive Tribal IV-D 
program under section 455(f) of the Act and implementing regulations in 
Part 309. This is an agency meeting all requirements of Sec.  309.65(a) 
which is not in the start-up phase under Sec.  309.65(b). This 
definition is derived from Sec.  309.05 which provides definitions 
relating to the Tribal Child Support Enforcement program, such as the 
phrase Tribal IV-D agency. The term Comprehensive was added to the 
phrase Tribal IV-D agency to further define those Tribal IV-D agencies 
that operate a IV-D program that meets all the requirements in Sec.  
309.65(a). The development of automated systems is not an authorized 
activity for start-up grantees.
    Computerized Tribal IV-D System, the third definition in this 
proposed rule, means a comprehensive Tribal IV-D program's system of 
data processing that is performed by electronic or electrical machines 
so interconnected and interacting as to minimize the need for human 
assistance or intervention. A Computerized Tribal IV-D System would be:
    (i) The Model Tribal System; or
    (ii) Access to and use of a State or another comprehensive Tribal 
IV-D agency's existing automated data processing computer system 
through an Intergovernmental Service Agreement, as allowable under this 
proposed rule.
    By definition, the term Computerized Tribal IV-D System would be 
limited to the above two system designs and would not include any 
alternative system of Automatic Data Processing. We determined that the 
term Computerized Tribal IV-D System would include only the Model 
Tribal System or access to an existing IV-D automated data processing 
computer system based on historical experience with the high cost and 
complexity of the development of multiple State systems and the 
challenges that emerge from operating systems with divergent designs.
    The Model Tribal System, defined and discussed later in this 
preamble, was designed to meet the expressed needs of comprehensive 
Tribal IV-D agencies in the most effective and cost efficient manner. 
In developing the Model Tribal System, the Office consulted with 
comprehensive Tribal IV-D agencies and other governmental stakeholders 
to determine appropriate minimum systems specifications that would 
facilitate high-speed automated data processing capabilities in 
comprehensive Tribal IV-D operations. The Model Tribal System is the 
basis for a computerized Tribal automated data processing system, but 
comprehensive Tribal IV-D agencies may enhance the Model Tribal System 
to meet program-specific needs. Enhancement of the Model Tribal System 
is discussed later in this preamble.
    Since some comprehensive Tribal IV-D programs have been 
successfully using State systems, the definition of Computerized Tribal 
IV-D Systems would include access to an automated data processing 
computer system through an Intergovernmental Service Agreement with a 
State or another comprehensive Tribal IV-D agency. Comprehensive Tribal 
IV-D agencies that have been successfully using a State system may 
continue to do so under an Intergovernmental Service Agreement. Tribal 
IV-D agencies that have never used another State or comprehensive 
Tribal IV-D agency's system may enter into an Intergovernmental Service 
Agreement authorizing access to that State or comprehensive Tribal IV-D

[[Page 33051]]

agency's automated data processing system.
    The fourth definition in this proposed rule is Installation, which 
means the act of putting into service ADP equipment and software, 
performing data conversion, conducting training, and turnover to 
operation status. This definition is derived from 45 CFR 95.605, which 
addresses the requirements for FFP in the costs of Automatic Data 
Processing Equipment and services, and has been revised to be 
applicable to this proposed rule. This definition of Installation is 
relevant because of the need to further clarify those activities, as 
described herein, that encompass installation for purposes of this 
regulation.
    The fifth definition is this proposed rule is Maintenance, which 
means the totality of activities required to provide cost-effective 
support to an operational ADP system. Maintenance is generally routine 
in nature and can include activities such as: Upgrading ADP hardware, 
revising/creating new reports, making limited data element/database 
changes, minor data presentation changes, and other software 
corrections. Because maintenance is an allowable cost, the definition 
is necessary. This definition is derived from and is consistent with 
policy guidance provided by the Office to States in Action Transmittal 
06-03, which is dated August 11, 2006, and entitled Policy 
Clarifications Relating to Planning, Design, Development, Installation, 
and Operation of Automated Systems in the Title IV-D Child Support 
Enforcement Program (available at http://www.acf.hhs.gov/programs/cse/pol/AT/2006/at-06-03.htm).
    Model Tribal System, the sixth definition in this proposed rule, 
means an ADP system designed and developed by the Office for 
comprehensive Tribal IV-D programs, to include system specifications 
and requirements as specified in Part 310. The Model Tribal System 
effectively and efficiently allows a comprehensive Tribal IV-D agency 
to monitor, account for, and control all child support enforcement 
services and activities pursuant to Part 309. This definition is 
derived from stakeholder input solicited by the Office on the matter of 
systems configuration for comprehensive Tribal IV-D programs.
    Office Automation, which is the seventh definition in this proposed 
rule, means a generic adjunct component of a computer system that 
supports the routine administrative functions in an organization (e.g., 
electronic mail, word processing, Internet access), as well as similar 
functions performed as part of an automated data processing system. 
Office Automation is not specifically designed to meet the programmatic 
and business needs of an organization. The term Office Automation is an 
industry-standard nomenclature, and though Office Automation is similar 
to an automated data processing system, in that it contains multiple 
components (e.g., operating system software, hardware, and networking), 
it is not an ADP system. This definition of Office Automation is taken 
from OCSE Action Transmittal 05-02, Systems and Financial Policy 
Questions and Responses to Miscellaneous Issues regarding Provision of 
45 CFR Part 309, the Tribal Child Support Enforcement Program Final 
Rule (available at http://www.acf.hhs.gov/programs/cse/pol/AT/2005/at-05-02.htm).
    Reasonable Cost, the eighth definition in this proposed rule, means 
a cost that, in nature and amount, does not exceed that which would be 
incurred by a prudent person under the circumstances prevailing at the 
time the decision was made to incur the cost. In determining 
reasonableness with regard to ADP systems cost, consideration would be 
given to:
    (i) Whether the cost is of a type generally recognized as ordinary 
and necessary for the operation of a comprehensive Tribal IV-D agency;
    (ii) The restraints or requirements imposed by such factors as: 
sound business practices; arms-length bargaining; Federal and Tribal 
laws and regulations; and terms and conditions of any direct federal 
funding;
    (iii) Whether the individual concerned acted with prudence in the 
circumstances considering his or her responsibilities to the 
comprehensive Tribal IV-D agency, its employees, the public at large, 
and the Federal Government;
    (iv) Market prices for comparable goods or services;
    (v) Significant deviations from the established practices of the 
comprehensive Tribal IV-D agency which may unjustifiably increase the 
cost; and
    (vi) Whether a project's Total Acquisition Cost as defined in Sec.  
95.605 is in excess of the comprehensive Tribal IV-D agency's total 
Tribal IV-D program grant award for the year in which the request is 
made.
    The Office has a fiduciary responsibility to ensure that the costs 
associated with Computerized Tribal IV-D Systems are reasonable and 
necessary. This definition of Reasonable Cost is derived from OMB 
Circular A-87 and the Office's historical analysis and experience with 
automation efforts in State IV-D programs. That analysis and experience 
recognizes that installation of either of the two options eligible for 
FFP that are available to Tribes under these regulations, namely the 
use of the Model Tribal System or the use of another State or Tribal 
IV-D agency's existing automated data processing computer system 
through an Intergovernmental Service Agreement, should not reasonably 
exceed a comprehensive Tribal IV-D agency's total Tribal IV-D program 
grant award for the year in which the request is made.
    The ninth definition of this proposed rule is Service Agreement, 
which means a document signed by the Tribe or Tribal organization 
operating a comprehensive Tribal IV-D program under Sec.  309.65(a) and 
the State or other comprehensive Tribal IV-D program whenever the 
latter provides data processing services to the former and identifies 
those ADP services that the State or other comprehensive Tribal IV-D 
program will provide to the Tribe or Tribal organization. Additionally, 
a Service Agreement as defined in this proposed rule would include the 
following details:
     Schedule of charges for each identified ADP service and a 
certification that these charges apply equally to all users;
     Description of the method(s) of accounting for the 
services rendered under the agreement and computing services charges;
     Assurances that services provided will be timely and 
satisfactory;
     Assurances that information in the computer system as well 
as access, use and disposal of ADP data will be safeguarded in 
accordance with proposed Sec.  310.15;
     Beginning and ending dates of the period of time covered 
by the Service Agreement; and
     Schedule of expected total charges for the period of the 
Service Agreement.
    This definition is taken from 45 CFR 95.605 and is revised to 
specifically apply to the needs of comprehensive Tribal IV-D programs. 
The definition of a Service Agreement is a critical component of this 
proposed rule, as it represents one of the two options for a 
Computerized Tribal IV-D System.
    The tenth definition of this proposed rule is Simplified 
Acquisition Threshold, which for ADP systems, equipment, and service 
acquisitions means a Tribe or Tribal organization's monetary threshold 
for determining whether competitive acquisition rules are required for 
a given procurement or $100,000, whichever is less. The term Simplified 
Acquisition Threshold is

[[Page 33052]]

used in 45 CFR 92.36(d), which references small purchase procedures as 
a procurement method for securing items of cost not exceeding the 
Simplified Acquisition Threshold fixed at 41 U.S.C. 403(11) (currently 
$100,000). This is appropriately adapted for this rule because of the 
need to ensure full and open competition in acquisitions in accordance 
with 45 CFR 92.36(c), and to ensure consistency with regulations at 45 
CFR 95.611(b) governing State ADP acquisitions funded at enhanced FFP 
rates of reimbursement.
    Under proposed paragraph (b) of Sec.  310.1, the following terms 
apply to Part 310 and are defined in 45 CFR 95.605: Acquisition; 
Advanced Planning Document (APD); Automatic Data Processing (ADP); 
Design or System Design; Development; Enhancement; Federal Financial 
Participation (FFP); Operation; Project; Software; and Total 
Acquisition Cost. Not all sections of Part 95 are applicable to Tribal 
IV-D programs. These terms are the terms in Part 95 that are 
appropriately applicable to Tribal IV-D programs. The above terms are 
relevant to the content of this proposed rule because in applying these 
definitions from 45 CFR 95.605, a reasonably consistent approach will 
be maintained among State, Local and Tribal grantees with regard to ADP 
systems acquisitions, while still maintaining flexibility for Tribes 
and Tribal organizations to determine their own best solution to 
automating their comprehensive Tribal IV-D program. We intend to issue 
a technical assistance document that contains all relevant systems 
requirements and definitions to ensure Tribal programs have in one 
document all relevant definitions.
    Paragraph (c) of Sec.  310.1 of the proposed rule cross-references 
all definitions of terms that apply to Tribal IV-D programs as detailed 
in Sec.  309.05 because these terms are also applicable in Part 310. 
These definitions would also be included in our technical assistance 
document as mentioned above.

Subpart B--Requirements for Computerized Tribal IV-D Systems and Office 
Automation

Section 310.5 What options are available for Computerized Tribal IV-D 
Systems and Office Automation?
    This section of the proposed rule sets forth options available to 
comprehensive Tribal IV-D agencies for the purpose of automating Tribal 
IV-D activities. We recognize the importance and benefits of 
integrating automation in the daily operations of comprehensive Tribal 
IV-D programs. To that end, proposed paragraph (a) of this section 
allows a comprehensive Tribal IV-D agency to have in effect an 
operational computerized support enforcement system that meets Federal 
requirements under Part 310.
    Paragraph (b) of this section proposes that a Computerized Tribal 
IV-D System must be one of the design options discussed below. Under 
paragraph (b)(1), a comprehensive Tribal IV-D program may automate its 
case processing and record-keeping processes through installation, 
operation, maintenance, or enhancement of the Model Tribal System 
designed by the Office to address the program requirements defined in a 
Tribal IV-D plan in accordance with Sec.  309.65(a) and the functional 
requirements in proposed Sec.  310.10. As discussed earlier in the 
preamble, we propose automation of comprehensive Tribal IV-D activities 
through the Model Tribal System based on recommendations of a workgroup 
consisting of Federal and Tribal program representatives that 
considered factors such as scale, functionality, cost, and 
compatibility with State systems, in the development of the Model 
Tribal System. Participants in the various meetings included 
representatives from each of the nine comprehensive Tribal IV-D 
agencies. The system specifications and minimum essential functions of 
the Model Tribal System correspond with the feedback we received from 
comprehensive Tribal IV-D programs and other governmental stakeholders.
    Under paragraph (b)(2), we propose that a comprehensive Tribal IV-D 
program may elect to automate its case processing and record-keeping 
processes through the establishment of Intergovernmental Service 
Agreements with a State or another comprehensive Tribal IV-D agency for 
access to that agency's existing automated data processing computer 
system to support comprehensive Tribal IV-D program operations.
    A Computerized Tribal IV-D System implemented under a Service 
Agreement as defined in proposed Sec.  310.1 would be in line with the 
existing allowable activities permitted in Sec.  309.145(h)(4). We 
recognize that some comprehensive Tribal IV-D programs have been 
successfully using State systems prior to this proposed rule and we 
consider it important to allow continuation of those efforts, as well 
as establishment of similar Intergovernmental Service Agreements by 
comprehensive Tribal IV-D programs that do not currently access another 
State or comprehensive Tribal IV-D agency's existing automated data 
processing computer system. In addition, this option of automating 
comprehensive Tribal IV-D activities through the establishment of 
Intergovernmental agreements provides for the flexibility recommended 
by workgroup participants.
    In proposed paragraph (c) of this section, a comprehensive Tribal 
IV-D agency may opt to conduct automated data processing and 
recordkeeping activities through Office Automation. Allowable 
activities under this section include procurement, installation, 
operation and maintenance of essential Office Automation capability as 
defined in Sec.  310.1. We deem it important to offer Office Automation 
as an alternative or in addition to Computerized Tribal IV-D Systems, 
as defined in paragraph (b) above, to ensure that comprehensive Tribal 
IV-D programs have the flexibility to operate at the level of 
automation that best suits their particular needs. Office Automation 
may include the word processing capabilities needed to produce 
summonses and petitions. Office Automation may also describe the 
creation of certain reports or accounting spreadsheets that serve to 
streamline an otherwise wholly manual business function through the use 
of macros to merge data and text into a usable management productivity 
tool. Office Automation components may include some or all of the 
following elements: Personal computers and workstations; networking and 
application servers; telecommunications and network wiring to connect 
the computers in a unified network environment; Network Operating 
System (NOS) and workstation and personal computer operating system 
software, such as Microsoft Windows XP(copyright) or Red Hat 
Linux(copyright); office productivity software, such as 
Microsoft Office(copyright), Microsoft 
Project(copyright) or WordPerfect(copyright); and 
electronic mail and Internet access services, such as T-1, DSL, or 56K 
dial-up (e.g., AOL(copyright) and 
EarthLink(copyright)).
    In full recognition of Tribal sovereignty, proposed paragraph (d) 
of Sec.  310.5 affirms that a comprehensive Tribal IV-D agency may 
design, develop, procure, or enhance an automated data processing 
system funded entirely with Tribal funds. An automated data processing 
system funded entirely with Tribal funds would not be obligated to meet 
the requirements detailed in this proposed rule, although a 
comprehensive Tribal IV-D agency may determine to adopt all or some of 
the system specifications

[[Page 33053]]

laid-out in this proposed rule in order to facilitate as much 
consistency in State and comprehensive Tribal IV-D automated data 
processing systems as possible.
Section 310.10 What are the functional requirements for the Model 
Tribal IV-D system?
    In this proposed section, we identify the minimum functional 
requirements which a comprehensive Tribal IV-D agency must meet in the 
operation of a Model Tribal IV-D System. Comprehensive Tribal IV-D 
agencies that have elected to automate case processing and record-
keeping activities through a manner other than the Model Tribal System, 
as defined in Sec.  310.1 of this Part, would not be subject to the 
requirements presented in this section of the proposed rule.
    The system requirements discussed in this proposed section are 
based on the functional requirements for computerized support 
enforcement systems regulated in Sec. Sec.  307.10 and 307.11 for State 
IV-D programs. Determination of which proposed functional requirements 
should be mandatory in a Model Tribal IV-D system is based on careful 
examination of State automated systems, Tribal IV-D program 
regulations, and cost-effectiveness analyses, as well as strong 
consideration of which comprehensive Tribal IV-D activities would 
benefit most from automation, given the varying sizes of eligible 
Tribes and Tribal organizations. Additionally, the proposed functional 
requirements specified in this section reflect deference for Tribal 
Sovereignty.
    Paragraph (a) of Sec.  310.10 proposes that a Model Tribal IV-D 
system must accept, maintain and process the actions in the child 
support collection and paternity determination processes under the 
Tribal IV-D plan, including the following:
     (1) Identifying information such as Social Security 
numbers, names, dates of birth, home addresses and mailing addresses 
(including postal zip codes) on individuals against whom paternity and 
support obligations are sought to be established or enforced and on 
individuals to whom support obligations are owed, and other data as 
required by the Office;
     (2) Verifying information on individuals referred to in 
Sec.  310.10(a)(1) with Tribal, Federal, State and local agencies, both 
intra-tribal and intergovernmental;
     (3) Maintaining information pertaining to applications and 
referrals for Tribal IV-D services (including case records, referrals 
to the appropriate processing unit such as locate or paternity 
establishment units, caseworker notifications, Case Identification 
Numbers; and Participant Identification Numbers), delinquency and 
enforcement activities, intra-tribal, intergovernmental, and Federal 
location of the putative father and noncustodial parents, the 
establishment of paternity, the establishment of support obligations, 
and the payment and status of current support obligations and arrearage 
accounts; and
     (4) Maintaining data on case actions administered by both 
the initiating and responding jurisdictions in intergovernmental cases.
    The actions described above are essential elements of automated 
case processing which are necessary to meet the fundamental objectives 
of the Tribal Child Support Enforcement program, including establishing 
paternity, establishing and enforcing support orders, and collecting 
child support payments.
    Under paragraph (b), we propose that a Model Tribal IV-D system 
must update, maintain and manage all IV-D cases under the Tribal IV-D 
plan from initial application or referral through collection and 
enforcement including any events, transactions, or actions taken 
therein. This requirement is especially critical in relation to 
proposed Subpart D, Sec.  310.40 which addresses accountability and 
monitoring procedures for Computerized Tribal IV-D Systems.
    We propose under paragraph (c) of this section to require a Model 
Tribal IV-D system to record and report any fees collected, either 
directly or by interfacing with State or Tribal financial management 
and expenditure information. The Model Tribal IV-D system, as proposed 
in this section, must have the capacity to record and report costs of 
any fees collected to help ensure accurate and complete accounting of 
expenditures under a Tribal IV-D program that are funded in part with 
Federal funds.
    Proposed paragraph (d) of this section requires that a Model Tribal 
IV-D system must have minimum system specifications which allow for the 
distribution of current support and arrearage collections in accordance 
with Federal regulations at Sec.  309.115 and Tribal laws. We consider 
distribution of collected child support payments to be one of the 
comprehensive Tribal IV-D activities that would benefit most from 
automation. Automated distribution of collections would ensure families 
receive the support owed to them and minimize the need for manual 
processing of child support payments, which can be a time-consuming and 
burdensome task for comprehensive Tribal IV-D programs. Additionally, 
automated distribution of collections would facilitate more efficient 
and cost-effective communications in intra-tribal and intergovernmental 
case processing.
    In paragraph (e)(1) we propose that the Model Tribal IV-D system 
must maintain, process and monitor accounts receivable on all amounts 
owed, collected, and distributed with regard to detailed payment 
histories that include the amount of each payment, date of each 
collection, method of payment, distribution of payments and date of 
each disbursement. Under proposed paragraph (e)(2), the Model Tribal 
IV-D system must have the capacity to perform automated income 
withholding activities such as recording and maintaining any date the 
noncustodial parent defaults on payment of the support obligation in an 
amount equal to the support payable for one month, generating the 
Standard Federal Income Withholding Form and allocating amounts 
received by income withholding according to Sec. Sec.  309.110 and 
309.115, which respectively cover procedures governing income 
withholding and distribution of child support collections as specified 
in each Tribal IV-D plan. These proposed functional requirements would 
provide comprehensive Tribal IV-D agencies with an accurate and 
complete record of all accounts receivable and income withholding 
activities concerning amounts owed, collected, and distributed in 
connection with child support payments.
    Proposed paragraph (f) of Sec.  310.10 requires that a Model Tribal 
IV-D system maintain and automatically generate data necessary to meet 
Federal reporting requirements on a timely basis as prescribed by the 
Office. At a minimum this would include (1) yearly notices on support 
collected, which are itemized by month of collection and provided to 
families receiving services under the comprehensive Tribal IV-D program 
as required in Sec.  309.75(c), to all case participants regarding 
support collections; and (2) reports submitted to the Office for 
program monitoring and program performance as required in Sec.  
309.170. Without the proposed Model Tribal IV-D system, comprehensive 
Tribal IV-D agencies would rely on manual systems or Office Automation 
to manage the Federal reporting requirements and payment records which 
require meticulous attention to detail. Reliance on manual accounting 
systems risks human error that can harm families and jeopardize Federal 
funding. This proposed functional requirement is

[[Page 33054]]

in response to comments reported in the Final Rule of the Tribal Child 
Support Enforcement Program published on March 30, 2004 (69 FR 16638), 
which indicated that Tribes and Tribal organizations would benefit from 
a sophisticated computer system to track individual accounts and 
provide required notices of child support collections to families 
served by the IV-D program.
    Under paragraph (g) of this section, we propose that a Model Tribal 
IV-D system be required to provide automated processes to enable the 
Office to monitor Tribal IV-D program operations and to assess program 
performance through the audit of financial and statistical data 
maintained by the system. This requirement is especially critical in 
relation to proposed Subpart D, Sec.  310.40 which addresses 
accountability and monitoring procedures for Computerized Tribal IV-D 
Systems.
    In proposed paragraph (h) of this section, the Model Tribal IV-D 
system must provide security to prevent unauthorized access to, or use 
of, the data in the system as detailed in proposed Sec.  310.15 
discussed below. This requirement is necessary because comprehensive 
Tribal IV-D agencies may receive sensitive, personal information from 
Federal, State, or Tribal locate sources in inter-governmental cases or 
from parents seeking the Tribal IV-D program's assistance in securing 
support for children. In the current age of identity theft, electronic 
record keeping and concerns for personal privacy, Federal, State and 
Tribal programs are entrusted with personal information critical to 
accomplish the goals of those programs. It is imperative that 
governments safeguard personal data to ensure privacy and maintain the 
public trust. For the aforementioned reasons, the Model Tribal System 
must meet security and privacy requirements set forth in Sec.  310.15. 
We also would emphasize that no Federal Tribal IV-D program requirement 
obligates comprehensive Tribal IV-D agencies to disclose, or otherwise 
make accessible, their Tribal enrollment records for the purposes of 
providing child support enforcement services or automating child 
support enforcement activities.
Section 310.15 What are the safeguards and processes that comprehensive 
Tribal IV-D agencies must have in place to ensure the security and 
privacy of Computerized Tribal IV-D Systems and Office Automation?
    This proposed section details the safeguarding requirements that a 
comprehensive Tribal IV-D agency, which is using a Computerized Tribal 
IV-D System or Office Automation, must have in place to ensure the 
security and confidentiality of information accessible through Federal, 
State, and Tribal sources. This section is taken from Sec.  307.13 
which addresses security and confidentiality for State computerized 
support enforcement systems and is revised to apply to automation for 
comprehensive Tribal IV-D programs.
    Under paragraph (a) of this section, the comprehensive Tribal IV-D 
agency must safeguard the integrity, accuracy, completeness, access to, 
and use of data in the Computerized Tribal IV-D System and Office 
Automation. The Tribal IV-D agency should ensure that the Computerized 
Tribal IV-D Systems and Office Automation comply with the requirements 
of the Federal Information Security Management Act and the Privacy Act. 
These safeguards must include written policies and procedures 
concerning (1) periodic evaluations of the system for risk of security 
and privacy breaches; (2) procedures to allow Tribal IV-D personnel 
controlled access and use of IV-D data (including (i) specifying the 
data which may be used for particular IV-D program purposes and the 
personnel permitted access to such data as well as (ii) permitting 
access to and use of data for the purpose of exchanging information 
with State and Tribal agencies administering programs under titles IV-
A, IV-E and XIX of the Act to the extent necessary to carry out the 
comprehensive Tribal IV-D agency's responsibilities with respect to 
such programs); (3) maintenance and control of application software 
program data; (4) mechanisms to back-up and otherwise protect hardware, 
software, documents, and other communications; and (5) mechanisms to 
report (to the Department of Homeland Security) and respond to breaches 
of personally identifiable information. We recognize the child support 
enforcement community has a duty to protect the information accessible 
through IV-D resources. Consequently, we deem the above safeguards to 
be invaluable strategies in ensuring the security of Computerized 
Tribal IV-D Systems, Office Automation, the IV-D program as a whole and 
the personal data concerning the individuals we serve.
    Paragraph (b) of this proposed section requires that the 
comprehensive Tribal IV-D agency monitor routine access to and use of 
the Computerized Tribal IV-D System and Office Automation through 
methods such as audit trails and feedback mechanisms to guard against, 
and promptly identify unauthorized access or use. This proposed 
safeguard is consistent with the security and privacy measures required 
in the State computerized support enforcement systems found in Sec.  
307.13 and is an appropriate aspect of information security.
    We propose in paragraph (c) of this section that the comprehensive 
Tribal IV-D agency have procedures to ensure that all personnel, 
including Tribal IV-D staff and contractors, who may have access to or 
be required to use confidential program data in the Computerized Tribal 
IV-D System and Office Automation are adequately trained in security 
procedures. This proposed safeguard is consistent with the security and 
privacy measures required in the State computerized support enforcement 
systems in Sec.  307.13 and is equally critical to Tribal automated 
systems. Staff members and contractors of comprehensive Tribal IV-D 
agencies using the Computerized Tribal IV-D System or Office Automation 
should demonstrate knowledge of strategies that would ensure the 
security and privacy of sensitive information to meet their 
responsibility to provide services and store information in the 
automated systems or Office Automation.
    In paragraph (d) of this section, we propose that the comprehensive 
Tribal IV-D agency have administrative penalties, including dismissal 
from employment, for unauthorized access to, disclosure or use of 
confidential information. This aspect of the security and privacy 
safeguarding requirements reflects our position that security and 
privacy of child support enforcement-related information is paramount 
to the integrity of the system and as such must include administrative 
sanctions.

Subpart C--Funding for Computerized Tribal IV-D Systems and Office 
Automation

Section 310.20 What are the conditions for funding the installation, 
operation, maintenance and enhancement of Computerized Tribal IV-D 
Systems and Office Automation?
    This section of the proposed rule would establish conditions that 
must be

[[Page 33055]]

met in order for a comprehensive Tribal IV-D agency to obtain Federal 
funding in the costs of installation, operation, maintenance and 
enhancement of Computerized Tribal IV-D Systems and Office Automation. 
This section is derived from Sec. Sec.  307.15 and 307.20, governing 
State automated systems, and is appropriately revised to specifically 
apply to the needs of comprehensive Tribal IV-D programs. Sections 
307.15 and 307.20, respectively, address conditions for approval of 
Advance Planning Documents (APD) and submittal of APDs for State 
computerized support enforcement systems. Proposed Sec.  310.20 
addresses procedures for submittal of an APD to the Department. The 
Office uses the APD process to help meet its fiduciary responsibility 
to ensure that the costs associated with all ADP systems acquisitions, 
including Computerized Tribal IV-D Systems, are reasonable and 
necessary. Just as the Office requires States to request funding in an 
APD for acquisition of a computerized child support enforcement system, 
documenting such factors as project cost, risk, resources, and 
schedule, those same factors equally apply to the Office's review and 
approval of the installation, operation, maintenance and enhancement of 
Computerized Tribal IV-D Systems. For this reason, the APD process is 
incorporated to this proposed rule as applicable and necessary to 
acquisitions of such systems in comprehensive Tribal IV-D programs.
    The proposed content of paragraph (a) provides instructions for 
preparing an APD, streamlines the APD application process, and 
distinguishes between activities that require an APD submission and 
those that only require submission of annual budgets in accordance with 
Sec.  309.15(c). Proposed paragraph (a) lays out conditions that must 
be met for FFP in the costs of installation, operation, maintenance, 
and enhancement of a Computerized Tribal IV-D System at the applicable 
matching rate under Sec.  309.130(c). (The applicable matching rate as 
defined in Sec.  309.130(c) refers to the total amount of approved and 
allowable expenditures for which a comprehensive Tribal IV-D program 
would be eligible to receive Federal grant funds in the costs of 
administering the Tribal IV-D program, including Computerized Tribal 
IV-D Systems and Office Automation. The applicable matching rate would 
be ninety percent for comprehensive Tribal IV-D programs that are 
operating within the first three-year period of Federal funding; the 
applicable matching rate for comprehensive Tribal IV-D programs 
operating in all periods following the first three-year period would be 
eighty percent.)
    Paragraph (a)(1) would state that a comprehensive Tribal IV-D 
agency must have submitted, and the Office must have approved, an APD 
for the installation and enhancement of a Computerized Tribal IV-D 
System. Under paragraph (a)(2), an APD for installation of a 
Computerized Tribal IV-D System must (i) represent the sole systems 
effort being undertaken by the comprehensive Tribal IV-D agency under 
part 310; (ii) describe the projected resource requirements for staff, 
hardware, software, network connections and other needs and the 
resources available or expected to be available to meet the 
requirements; (iii) contain a proposed schedule of project milestones 
with detail sufficient to describe the tasks, activities, and 
complexity of the initial implementation project; (iv) contain a 
proposed budget including a description of expenditures by category and 
amount for items related to installing, operating, maintaining, and 
enhancing the Computerized Tribal IV-D System that are eligible for 
Federal funding at the applicable matching rate under Sec.  309.130(c); 
and (v) contain a statement that the comprehensive Tribal IV-D agency 
agrees in writing to use the Computerized Tribal IV-D System for a 
minimum period of time. This last requirement, to agree in writing to 
use the Computerized Tribal IV-D System for a minimum period of time, 
is derived from 45 CFR 95.619. Under Sec.  95.619, ADP systems 
designed, developed, or installed with FFP shall be used for a period 
of time specified in the advance planning document, unless the 
Department determines that a shorter period is justified. The 
requirement for the APD to contain an agreement by a Tribal IV-D 
program to use the Computerized Tribal IV-D System for a minimum period 
of time assures both the Federal and Tribal governments of a reasonable 
return on investment relative to the Total Acquisition Cost of the 
Computerized Tribal IV-D System.
    In addition to the above requirements, proposed paragraph (a)(3) 
includes the following conditions which must be met to obtain FFP in 
the installation costs of access to a State or another comprehensive 
Tribal IV-D program's ADP system established under an Intergovernmental 
Service Agreement: The comprehensive Tribal IV-D agency must (i) 
maintain a copy of each intergovernmental cooperative agreement and 
Service Agreement in its files for Federal review. Under subparagraph 
(ii), the comprehensive Tribal IV-D agency must ensure that (A) the 
Service Agreement for which FFP is being sought meets the definition of 
a Service Agreement as defined in proposed Sec.  310.1; (B) claims for 
FFP conform to the timely claim provisions of 45 CFR Part 95, Subpart 
A; and (C) the Service Agreement was not previously disapproved by the 
Department. In deriving from 45 CFR Part 95 Subpart A the requirements 
to be met to obtain FFP in the cost of access to another State or 
Tribal IV-D program's ADP system, we are ensuring a common 
understanding and consistency of approach to securing, documenting and 
maintaining FFP approval of such intergovernmental cooperative 
agreements. In addition to the requirements proposed above, under 
paragraph (a)(4), the following conditions must be met in order for a 
comprehensive Tribal IV-D agency to obtain FFP in the costs of 
enhancements to its Computerized Tribal IV-D System: (i) The project's 
Total Acquisition Cost cannot exceed the comprehensive Tribal IV-D 
agency's total Tribal IV-D program grant award for the year in which 
the acquisition request is made; and (ii) the APD budget, schedule and 
commitment to use the Computerized Tribal IV-D System for a specified 
minimum period of time must be updated to reflect the enhancement 
project. These additional APD requirements to obtain FFP in the cost of 
enhancements to an existing Computerized Tribal IV-D System reflect the 
need to ensure both continued cost reasonableness and ongoing return on 
investment given a Computerized Tribal IV-D System's increased Total 
Acquisition Cost.
    Paragraph (a)(5) of Sec.  310.20 proposes that to receive FFP in 
the costs of the operation and maintenance of a Computerized Tribal IV-
D System installed under proposed Sec.  310.20 or developed under 
proposed Sec.  309.145(h)(5), which refers to a Tribal automated data 
processing system that is funded entirely with Tribal funds, the 
comprehensive Tribal IV-D agency must include operation and maintenance 
costs in its annual Title IV-D program budget submission in accordance 
with Sec.  309.15(c) wherein requirements for annual budget submissions 
are detailed.
    In addition, paragraph (a)(6) would require that in order to 
receive FFP in the costs of the installation, operation, and 
maintenance of essential Office Automation capabilities, the 
comprehensive Tribal IV-D agency must include such costs in its annual 
Title IV-D program budget submission in accordance with Sec.  
309.15(c). Currently, States maintaining their computerized

[[Page 33056]]

IV-D systems in an operations and maintenance-only mode may close their 
APD and thereafter request FFP for their operation and maintenance 
costs through specific line-item submissions in their ``Quarterly 
Report of Expenditures and Estimates,'' (OCSE Form 396A). Given the 
efficacy of this existing procedure used with States, and the 
predictability and general reasonableness of such costs, a similar 
process for Tribes to request FFP for operation and maintenance cost 
reimbursement is appropriate. Therefore, this rule will allow Tribes to 
request FFP in the costs of installation, operation, and maintenance of 
essential Office Automation capabilities, an inherently operational 
activity, through a comprehensive Tribal IV-D agency's Title IV-D 
program budget submission, ``Financial Status Report,'' (OCSE Form 
296A) in accordance with requirements listed at Sec.  309.15(c).
    The gradated variation in conditions that must be met in order to 
obtain FFP in the costs of the activities under this proposed paragraph 
(a) are designed to reflect the varying automation levels of 
comprehensive Tribal IV-D agencies. For example, the conditions that a 
comprehensive Tribal IV-D agency would be required to meet in order to 
obtain FFP in the costs of installing Office Automation would be less 
involved than the conditions required for a comprehensive Tribal IV-D 
agency that is requesting FFP in the installation costs of accessing a 
State or another comprehensive Tribal IV-D program's APD system. 
Proposed Sec.  310.20 provides comprehensive Tribal IV-D agencies with 
the flexibility to determine which automation approaches and 
application procedures best suit the program-specific needs of that 
Tribe or Tribal organization. The provisions in proposed paragraph (a) 
are consistent with Tribal IV-D program staff input to reduce the 
burden of the APD application process.
    Provisions under Sec.  310.20(b) would describe the required 
procedures for submittal of an APD. Proposed paragraph (b) states that 
the comprehensive Tribal IV-D agency must submit an APD for a 
Computerized Tribal IV-D System to the Commissioner of the Office, 
Attention: Division of State and Tribal Systems. The APD submitted by 
the comprehensive Tribal IV-D agency must be approved and signed by the 
comprehensive Tribal IV-D agency Director and the authorized 
representative of the Tribe or Tribal organization prior to submission 
to the Office for approval. The above procedures for submitting an APD 
would ensure that the proper authorities representing the Tribe or 
Tribal organization agree with the details in the APD application 
documents and that the Program Director and appropriate Tribal 
officials are aware of responsibilities in acquiring automation for the 
Tribal IV-D program.
Section 310.25 What conditions apply to acquisitions of Computerized 
Tribal IV-D Systems?
    This proposed section details specific conditions that must be met 
in the acquisition process of Computerized Tribal IV-D Systems. 
Comprehensive Tribal IV-D agencies that have elected to automate 
program activities through Office Automation or another alternative to 
Computerized Tribal IV-D Systems as discussed in proposed Sec.  310.5, 
would not be subject to the requirements presented in proposed Sec.  
310.25. This section is derived from and comparable to Sec.  307.31 and 
45 CFR 95.617 which are respectively entitled FFP at the 80 Percent 
Rate for Computerized [State] Support Enforcement Systems and Software 
and Ownership Rights.
    In proposed paragraph (a) of this section entitled APD Approval, a 
comprehensive Tribal IV-D agency must have an approved APD in 
accordance with the applicable requirements of proposed Sec.  310.20. 
This paragraph (a) would establish protocol for when a comprehensive 
Tribal IV-D agency may engage in acquisition procedures in the purchase 
of a Computerized Tribal IV-D System. The requirement that a 
comprehensive Tribal IV-D agency must have an approved APD prior to 
initiating acquisition of a Computerized Tribal IV-D System safeguards 
all parties involved by ensuring that authorities from the Tribe or 
Tribal organization and the Department are in agreement about the use, 
funding, and parameters of each comprehensive Tribal IV-D agency's 
specific plan for automating case-processing and record-keeping program 
activities.
    Under proposed paragraph (b), which is entitled Procurements, 
Requests for Proposals (RFP) and similar procurement documents, 
contracts, and contract amendments involving costs eligible for FFP, 
must be submitted to the Office for approval prior to release of the 
procurement document, and prior to the execution of the resultant 
contract when a procurement is anticipated to or will exceed the 
Simplified Acquisition Threshold. The Simplified Acquisition Threshold 
for ADP systems, equipment, and service acquisitions is defined in 
proposed Sec.  310.1(a)(10) as a Tribe or Tribal organization's 
monetary threshold for determining whether competitive acquisition 
rules are required for a given procurement or $100,000, whichever is 
less. The Simplified Acquisition Threshold represents the maximum 
amount of monies that a comprehensive Tribal IV-D agency may expend 
without submitting the subject solicitation document (RFP, etc.) and 
resultant contract to the Office for review and written approval prior 
to its execution. As previously stated in the proposed rule, this 
threshold is derived from 45 CFR 92.36(d)(1), which references small 
purchase procedures as a procurement method for securing items of cost 
not exceeding the Simplified Acquisition Threshold fixed at 41 U.S.C. 
403(11) (currently $100,000). This is appropriately adapted for this 
rule because of the need to ensure full and open competition in 
acquisitions in accordance with 45 CFR 92.36(c), and to ensure 
consistency with regulations at 45 CFR 95.611(b) governing State ADP 
acquisitions funded at enhanced FFP rates of reimbursement.
    Beyond just ensuring consistency with regulations governing State 
acquisitions funded at enhanced FFP rates, in proposing a Simplified 
Acquisition Threshold at $100,000 or the threshold set by a Tribe or 
Tribal organization, whichever is less, we determined that such monies 
would meet the funding needs of the majority of comprehensive Tribal 
IV-D agencies which service moderate caseloads. Therefore, under this 
proposed paragraph (b), only those comprehensive Tribal IV-D agencies 
with significantly larger caseloads would likely be impacted by the 
requirement to submit RFP's and contracts to the Office for approval 
prior to their respective release or execution if they are anticipated 
to exceed the Simplified Acquisition Threshold.
    Proposed paragraph (c)(1) is entitled Software and Ownership Rights 
and requires that all procurement and contract instruments must include 
a clause that provides that the comprehensive Tribal IV-D agency will 
have all ownership rights to Computerized Tribal IV-D System software 
or enhancements thereof and all associated documentation designed, 
developed, or installed with FFP. Intergovernmental Service Agreements 
are not subject to this requirement. This exception for 
Intergovernmental Service Agreements ensures consistent application of 
current policy among all grantees, State and Tribal, and is derived 
from current Federal regulations at 45 CFR 95.613(b) that exempt 
Service Agreements from the procurement

[[Page 33057]]

standards applicable to State acquisitions of ADP equipment and 
services. Additionally, proposed paragraph (c)(2), states that the 
Office reserves a royalty-free, nonexclusive, and irrevocable license 
to reproduce, publish, or otherwise use and to authorize others to use 
for Federal Government purposes, such software, modifications and 
documentation developed under this part. Under paragraph (c)(3) FFP 
would not be available for the costs of rental or purchase of 
proprietary application software developed specifically for a 
Computerized Tribal IV-D System. Commercial-off-the-shelf (COTS) 
software packages that are sold or leased to the general public at 
established catalog or market prices are not subject to the ownership 
and license provisions of this requirement. The requirements stated in 
this proposed paragraph (c) are not unique to Child Support Enforcement 
regulations. Rather, the proposed requirements would be a restatement 
of current Departmental regulations that have applied to all automated 
systems acquisitions, and not just those in the IV-D program. Federal 
policy in this area, as stated in Federal regulations at 45 CFR 92.34 
and 95.617, and as restated in child support automation regulations for 
State IV-D programs at 45 CFR 307.30 and 45 CFR 307.31, is appropriate 
and best protects the Federal interest in IV-D and other Federal 
systems development efforts.
    In proposed paragraph (d) of this section, a comprehensive Tribal 
IV-D agency is not required to submit procurement documents, contracts, 
and contract amendments for acquisitions under the Simplified 
Acquisition Threshold set by the Tribe or Tribal organization or 
$100,000, whichever is less, unless specifically requested to do so in 
writing by the Office. The Office believes that procurement activities 
which fall under the Simplified Acquisition Threshold amount would not 
require submittal of procurement documents, contracts, and contract 
amendments because such acquisitions already fall under the existing 
procurement regulations of 45 CFR 92.36 (Procurement) and because 
applying such a threshold ensures a consistency of approach between 
State and Tribal grantees relative to procurements funded at enhanced 
rates of FFP.
Section 310.30 Under what circumstances would FFP be suspended or 
disallowed in the costs of Computerized Tribal IV-D Systems?
    This section of the proposed rule identifies circumstances under 
which the Office would suspend or disallow FFP in the costs of 
Computerized Tribal IV-D Systems. This section does not apply to Office 
Automation enhancements or another alternative to Computerized Tribal 
IV-D Systems as discussed in proposed Sec.  310.5. The proposed content 
of this section is derived from Sec.  307.40 which is entitled 
Suspension of Approval of Advance Planning Documents for Computerized 
Support Enforcement Systems and addresses suspension and disallowance 
of FFP in the costs of State computerized child support enforcement 
systems.
    Proposed paragraph (a) of this section entitled Suspension of APD 
approval states that the Office will suspend approval of the APD for a 
Computerized Tribal IV-D System approved under Part 310 as of the date 
that the system ceases to comply substantially with the criteria, 
requirements, and other provisions of the APD. The Office will notify a 
Tribal IV-D agency in writing of a notice of suspension, with such 
suspension effective as of the date on which there is no longer 
substantial compliance. The intent of the Office is to minimize the 
likelihood of suspension of a comprehensive Tribal IV-D agency's APD by 
engaging in supportive efforts such as technical assistance, policy 
guidance, and on-going communication and collaboration between the 
comprehensive Tribal IV-D agency and the Office. The Office believes 
that such preventive efforts would likely facilitate early 
identification of difficulties associated with a Computerized Tribal 
IV-D System and the corresponding APD and thereby assist the Office and 
the comprehensive Tribal IV-D agency in taking appropriate corrective 
action, before more punitive measures, such as suspension of funding, 
become necessary.
    Notwithstanding the above-stated intent, the Office deems it 
necessary to include provisions relating to suspension of an APD in 
this proposed paragraph (a) in order to clearly establish suspension as 
a possible consequence for a computerized Tribal IV-D support 
enforcement system that is substantially out of compliance with its 
APD.
    Proposed paragraph (b) of this section entitled Suspension of FFP 
states that if the Office suspends approval of an APD in accordance 
with proposed Part 310 during the installation, operation, or 
enhancement of a Computerized Tribal IV-D System, FFP will not be 
available in any expenditure incurred under the APD after the date of 
the suspension until the date the Office determines that the 
comprehensive Tribal IV-D agency has taken the actions specified in the 
notice of suspension described in paragraph (a). The Office will notify 
the comprehensive Tribal IV-D agency in writing upon making such a 
determination.
    We proposed the above provision in paragraph (b) to ensure that 
Federal funding is managed and distributed in the most productive, 
efficient and cost-effective manner possible, and to ensure the Office 
has the means necessary to enforce its fiduciary responsibilities.
Section 310.35 Under what circumstances would emergency FFP be 
available for Computerized Tribal IV-D Systems?
    In this section we propose that emergency FFP in the costs of 
computerized Tribal IV-D support enforcement systems and Office 
Automation would be available for qualifying circumstances. This 
proposed section is similar to 45 CFR 95.624, which is entitled 
Consideration for FFP in Emergency Situations and which lays out 
procedures which must be followed in applying for emergency FFP. This 
proposed section has been appropriately revised from Sec.  95.624 and 
made applicable to the specific needs of comprehensive Tribal IV-D 
programs.
    Under proposed paragraph (a) of this section, which is entitled 
Conditions that must be met for emergency FFP, the Office will consider 
waiving the approval requirements for acquisitions in emergency 
situations, such as natural or man-made disasters, upon receipt of a 
written request from the comprehensive Tribal IV-D agency. In order for 
the Office to consider waiving the approval requirements in proposed 
Sec.  310.25 the comprehensive Tribal IV-D agency must submit a written 
request to the Office prior to the acquisition of any ADP equipment or 
services. The written request must be sent by registered mail and 
include: (i) A brief description of the ADP equipment and/or services 
to be acquired and an estimate of their costs; (ii) a brief description 
of the circumstances which resulted in the comprehensive Tribal IV-D 
agency's need to proceed prior to obtaining approval from the Office; 
and (iii) a description of the harm that will be caused if the 
comprehensive Tribal IV-D agency does not acquire immediately the ADP 
equipment and services.
    Under proposed paragraph (a)(2), upon receipt of the information, 
the Office will, within 14 working days of receipt, take one of the 
following actions: (i) Inform the comprehensive Tribal IV-D agency in 
writing that the request has been disapproved and the

[[Page 33058]]

reason for disapproval; or (ii) inform the comprehensive Tribal IV-D 
agency in writing that the Office recognizes that an emergency exists 
and that within 90 calendar days from the date of the initial written 
request under paragraph (a)(1) the comprehensive Tribal IV-D agency 
must submit a formal request for approval which includes the 
information specified at Sec.  310.25 in order for the ADP equipment or 
services acquisition to be considered for the Office's approval.
    Emergency FFP in the costs of Computerized Tribal IV-D Systems and 
Office Automation is included in this proposed rule in recognition of 
past natural and man-made disasters such as the 9/11 terrorist attacks 
and hurricanes Katrina and Rita, as well as unforeseeable emergency 
situations that may significantly impact comprehensive Tribal IV-D 
programs in the future. This authority has proven vital in the past, 
such as when use of such emergency authority permitted State grantees 
to procure necessary computer equipment and software to restore program 
services disrupted by hurricanes Katrina and Rita, and do so without 
the delay inherent in first submitting the procurement request for 
Federal review and prior approval. The proposed procedures which 
require a comprehensive Tribal IV-D agency to submit a written request 
to the Office and require the Office to take appropriate action within 
14 working days ensure speedy and expedient management of child support 
resources during times of crisis.
    Proposed paragraph (b) of this section states that if the Office 
approves the request submitted under paragraph (a)(2), FFP will be 
available from the date the comprehensive Tribal IV-D agency acquires 
the ADP equipment and services. In this section, proposed paragraph (b) 
would equip comprehensive Tribal IV-D agencies to respond to approved 
emergency situations with the assurance that the Office would provide 
added support to ensure continued operations of comprehensive Tribal 
IV-D program functions.

Subpart D--Accountability and Monitoring Computerized Tribal IV-D 
Systems

Section 310.40 What requirements apply for accessing systems and 
records for monitoring Computerized Tribal IV-D Systems and Office 
Automation?
    This proposed section identifies requirements that would facilitate 
accountability and monitoring procedures of Computerized Tribal IV-D 
Systems and Office Automation, including accessing systems and records. 
This section of the proposed rule is derived from 45 CFR 95.615 which 
is entitled Access to Systems and Records and addresses the 
Department's right to access State computerized support enforcement 
systems for the purposes of monitoring the conditions for approval, as 
well as the efficiency, economy and effectiveness of the State system.
    In accordance with 45 CFR Part 95 of this title, under proposed 
Sec.  310.40 a comprehensive Tribal IV-D agency must allow the Office 
access to the system in all of its aspects, including installation, 
operation, and cost records of contractors and subcontractors, and of 
Service Agreements at such intervals as are deemed necessary by the 
Office to determine whether the conditions for FFP approval are being 
met and to determine the efficiency, effectiveness, reasonableness of 
the system and its cost. As discussed in the justification for proposed 
Sec.  310.30 of this proposed rule, on-going access to Computerized 
Tribal IV-D Systems and Office Automation records would enable the 
Office to facilitate early identification of difficulties associated 
with Tribal IV-D automation and to engage in supportive efforts such as 
technical assistance, policy guidance, and on-going communication and 
collaboration with comprehensive Tribal IV-D agencies. This technique 
of identifying and addressing system challenges early on has proven to 
be an effective management tool as evidenced by the Office's experience 
in monitoring State computerized support enforcement systems.

Paperwork Reduction Act of 1995

    Under the Paperwork Reduction Act of 1995 (Pub. L. 104-13), all 
Departments are required to submit to the Office of Management and 
Budget (OMB) for review and approval any reporting or recordkeeping 
requirements inherent in a proposed or final rule. Interested parties 
may comment to OMB on these requirements as described below. This NPRM 
contains reporting requirements at proposed 45 CFR Part 310. The 
Department has submitted these reporting requirements to OMB for its 
review.
    Proposed Part 310 contains a regulatory requirement that, in order 
to receive funding for a Computerized Tribal IV-D System, a Tribe or 
Tribal organization must submit an Advanced Planning Document (APD) 
which represents the sole systems effort being undertaken by the 
comprehensive IV-D agency; describes the projected resource 
requirements for staff, hardware, software, network connections and 
other needs and resources available and expected to be available; 
contains a proposed schedule of project milestones; contains a proposed 
budget; and contains a statement that the Tribal IV-D agency agrees in 
writing to use the Computerized Tribal IV-D System for a minimum period 
of time. Tribes and Tribal organizations must respond if they wish to 
operate a Federally-funded Computerized Tribal IV-D System. The 
potential respondents to these information collection requirements are 
approximately 40 Federally-recognized Tribes, and Tribal organizations, 
during Year 1; 5 additional Federally-recognized Tribes and Tribal 
organizations during Year 2; and 5 additional Federally-recognized 
Tribes and Tribal organizations during Year 3; for a three-year total 
of 50 grantees. This information collection requirement will impose the 
estimated total annual burden on the Tribes and Tribal organizations 
described in the table below:

----------------------------------------------------------------------------------------------------------------
                                                                                      Average
             Information collection                  Number of     Response per     burden per     Total annual
                                                    respondents     respondent       response         burden
----------------------------------------------------------------------------------------------------------------
                                                     Year 1
----------------------------------------------------------------------------------------------------------------
APD.............................................              40               2             108           8,640
Acquisitions (RFPs, Contracts, etc.)............               6               2              24             288
                                                 ---------------------------------------------------------------
    Total.......................................  ..............  ..............  ..............           8,928
----------------------------------------------------------------------------------------------------------------

[[Page 33059]]

 
                                                     Year 2
----------------------------------------------------------------------------------------------------------------
APD.............................................            * 11               2             108           2,376
Acquisitions (RFPs, Contracts, etc.)............               6               2              24             288
                                                 ---------------------------------------------------------------
    Total.......................................  ..............  ..............  ..............           2,664
----------------------------------------------------------------------------------------------------------------
                                                     Year 3
----------------------------------------------------------------------------------------------------------------
APD.............................................             * 8               2             108           1,728
Acquisitions (RFPs, Contracts, etc.)............               3               2              24             102
                                                 ---------------------------------------------------------------
    Total.......................................  ..............  ..............  ..............           1,848
----------------------------------------------------------------------------------------------------------------
* Figures reflect APDs from 5 additional Tribes in Year 2 and Year 3 as well as APD Updates from Tribes included
  in Year 1 and 2 respectively.

    Total Burden for 3 Years: 13,440.
    Total Annual Burden Averaged over 3 Years: 4,480 per year.
    The Administration for Children and Families will consider comments 
by the public on this proposed collection of information in the 
following areas:
     Evaluating whether the proposed collection is necessary 
for the proper performance of the functions of ACF, including whether 
the information will have practical utility;
     Evaluating the accuracy of ACF's estimate of the burden of 
the proposed collection of information, including the validity of the 
methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technology, e.g., 
permitting electronic submission of responses.
    OMB is required to make a decision concerning the collection of 
information contained in these regulations between 30 and 60 days after 
their publication 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 regulations. Written comments 
to OMB for the proposed information collection should be sent directly 
to the following: Office of Management and Budget, either by fax to 
202-395-6974 or by e-mail to [email protected]. Please mark 
faxes and e-mails to the attention of the desk officer for ACF.

Regulatory Flexibility Analysis

    The Secretary certifies, under 5 U.S.C. 605(b), the Regulatory 
Flexibility Act (Pub. L. 96-354), that these regulations will not 
result in a significant impact on a substantial number of small 
entities because the primary impact of these regulations is on Tribal 
governments. Tribal governments are not considered small entities under 
the Act.

Regulatory Impact Analysis

    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. 
Moreover, we have consulted with the Office of Management and Budget 
(OMB) and determined that these rules meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, they 
were subject to OMB review.
    We have determined that the proposed rule is not an economically 
significant rule and will not result in the expenditure by State, 
local, and Tribal governments, in the aggregate, or by the private 
sector, of more than $100 million in any one year. Therefore, we have 
not prepared a budgetary impact statement. We anticipate that the costs 
associated with this rule will be: FY 2009--$8m; FY 2010--$4m; FY 
2011--$2m; FY 2012--$3m; FY 2013--$3; FY 2013--$3m.
    The proposed regulations are authorized by 42 U.S.C. 655(f) and 42 
U.S.C. 1302 and represent the proposed regulations governing direct 
funding for computerized systems and Office Automation of Tribal CSE 
agencies that demonstrate the capacity to operate a child support 
enforcement program, including establishment of paternity; 
establishment, modification and enforcement of support orders; and 
location of noncustodial parents.
    The Executive Order encourages agencies, as appropriate, to provide 
the public with meaningful participation in the regulatory process. As 
described elsewhere in the preamble, ACF consulted with Tribes and 
Tribal organizations and their representatives to obtain their views 
prior to the publication of this NPRM.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, Public Law 
104-4 (Unfunded Mandates Act), requires that a covered agency prepare a 
budgetary impact statement before promulgating a rule that includes a 
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.
    As indicated above, we have determined this rule will not result in 
the expenditure by State, local and Tribal governments, in the 
aggregate, or by the private sector, of more than $100 million in any 
one year.

Congressional Review

    This proposed rule is not a major rule as defined in 5 U.S.C., 
Chapter 8.

Assessment of Federal Regulations and Policies on Family Well-Being

    We certify that we have made an assessment of this rule's impact on 
the well-being of families, as required under Sec. 654 of the Treasury 
and General Appropriations Act of 1999. This proposed rule gives 
flexibility to Tribes and Tribal organizations to use technological 
advancements to meet program objectives that serve this purpose.

Executive Order 13132

    Executive Order 13132 prohibits an agency from publishing any rule 
that has federalism implications if the rule either imposes substantial 
direct compliance costs on State and local

[[Page 33060]]

governments or is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. We do not believe the regulation 
has federalism impact as defined in the Executive order. However, 
consistent with Executive Order 13132, the Department specifically 
solicits comments from State and local government officials on this 
proposed rule.

List of Subjects

45 CFR 309

    Child Support, Grant programs--Social programs, Indians, Native 
Americans.

45 CFR 310

    Child Support, Grant programs--Social programs, Indians, Native 
Americans.

>(Catalogue of Federal Domestic Assistance Programs No. 93.563, 
Child Support Enforcement Program)

    Dated: October 19, 2007.
Daniel C. Schneider
Acting Assistant Secretary for Children and Families.

    Approved: March 3, 2008.
Michael O. Leavitt,
Secretary,Department of Health and Human Services.
    For the reasons discussed in the preamble, title 45 chapter III of 
the Code of Federal Regulations is amended as follows:

PART 309--TRIBAL CHILD SUPPORT ENFORCEMENT (IV-D) PROGRAM

    1. The authority citation for part 309 continues to read as 
follows:

    Authority: 42 U.S.C. 655(f), 1302.

    2. In Sec.  309.145, revise paragraph (h) to read as follows:


Sec.  309.145  What costs are allowable for Tribal IV-D programs 
carried out under Sec.  309.65(a) of this part?

* * * * *
    (h) Automated data processing computer systems, including:
    (1) Planning efforts in the identification, evaluation, and 
selection of an automated data processing computer system solution 
meeting the program requirements defined in a Tribal IV-D plan and the 
automated systems requirements in part 310 of this chapter;
    (2) Installation, operation, maintenance, and enhancement of a 
Model Tribal System as defined in and meeting the requirements of part 
310 of this title;
    (3) Procurement, installation, operation and maintenance of 
essential Office Automation capability;
    (4) Establishment of Intergovernmental Service Agreements with a 
State and another comprehensive Tribal IV-D agency for access to the 
State or other Tribe's existing automated data processing computer 
system to support Tribal IV-D program operations, and Reasonable Costs 
associated with use of such a system;
    (5) Operation and maintenance of a Tribal automated data processing 
system funded entirely with Tribal funds if the software ownership 
rights and license requirements in Sec.  310.25(c) are met; and
    (6) Other automation and automated data processing computer system 
costs in accordance with instructions and guidance issued by the 
Secretary.
* * * * *
    1. Revise part 310 to read as follows:

PART 310--COMPUTERIZED TRIBAL IV-D SYSTEMS AND OFFICE AUTOMATION

Subpart A--General Provisions
Sec.
310.0 What does this part cover?
310.1 What definitions apply to this part?
Subpart B--Requirements for Computerized Tribal IV-D Systems and Office 
Automation
310.5 What options are available for Computerized Tribal IV-D 
Systems and Office Automation?
310.10 What are the functional requirements for the Model Tribal IV-
D System?
310.15 What are the safeguards and processes that comprehensive 
Tribal IV-D agencies must have in place to ensure the security and 
privacy of Computerized Tribal IV-D Systems and Office Automation?
Subpart C--Funding for Computerized Tribal IV-D Systems and Office 
Automation
310.20 What are the conditions for funding the installation, 
operation, maintenance and enhancement of computerized Tribal IV-D 
systems and Office Automation?
310.25 What conditions apply to acquisitions of Computerized Tribal 
IV-D Systems?
310.30 Under what circumstances would FFP be suspended or disallowed 
in the costs of Computerized Tribal IV-D Systems?
310.35 Under what circumstances would emergency FFP be available for 
Computerized Tribal IV-D Systems?
Subpart D--Accountability and Monitoring Procedures for Computerized 
Tribal IV-D Systems
310.40 What requirements apply for accessing systems and records for 
monitoring Computerized Tribal IV-D Systems and Office Automation?

    Authority: 42 U.S.C. 655(f) and 1302.

Subpart A--General Provisions


Sec.  310.0  What does this part cover?

    This part addresses conditions for funding and requirements 
governing Computerized Tribal IV-D Systems and Office Automation 
including:
    (a) The automated systems options for comprehensive Tribal IV-D 
programs in Sec.  310.5 of this part;
    (b) The functional requirements for the Model Tribal Systems in 
Sec.  310.10 of this part;
    (c) The security and privacy requirements for Computerized Tribal 
IV-D Systems and office automation in Sec.  310.15 of this part;
    (d) The conditions for funding the installation, operation, 
maintenance, and enhancement of Computerized Tribal IV-D Systems and 
Office Automation in Sec.  310.20 of this part;
    (e) The conditions that apply to acquisitions of Computerized 
Tribal IV-D Systems in Sec.  310.25 of this part; and
    (f) The accountability and monitoring of Computerized Tribal IV-D 
Systems in Sec.  310.40 of this part.


Sec.  310.1  What definitions apply to this part?

    (a) The following definitions apply to this part:
    (1) Automated Data Processing Services (ADP Services) means 
services for installation, maintenance, operation, and enhancement of 
ADP equipment and software performed by a comprehensive Tribal IV-D 
agency or for that agency through a services agreement or other 
contractual relationship with a State, another Tribe or private sector 
entity.
    (2) Comprehensive Tribal IV-D Agency means the organizational unit 
in the Tribe or Tribal organization that has the authority for 
administering or supervising a comprehensive Tribal IV-D program under 
section 455(f) of the Act and implementing regulations in part 309 of 
this chapter. This is an agency meeting all requirements of Sec.  
309.65(a) of the chapter which is not in the start-up phase under Sec.  
309.65(b) of this chapter.
    (3) Computerized Tribal IV-D System means a comprehensive Tribal 
IV-D program's system of data processing that is performed by 
electronic or electrical machines so interconnected and interacting as 
to minimize the need for human assistance or intervention. A 
Computerized Tribal IV-D System is:
    (i) The Model Tribal System; or
    (ii) Access to a State or comprehensive Tribal IV-D agency's 
existing automated data processing computer system through an 
Intergovernmental Service Agreement;

[[Page 33061]]

    (4) Installation means the act of installing ADP equipment and 
software, performing data conversion, and turnover to operation status.
    (5) Maintenance is the totality of activities required to provide 
cost-effective support to an operational ADP system. Maintenance is 
generally routine in nature and can include activities such as: 
Upgrading ADP hardware, and revising/creating new reports, making 
limited data element/data base changes, minor data presentation 
changes, and other software corrections.
    (6) Model Tribal System means an ADP system designed and developed 
by the Office for comprehensive Tribal IV-D programs to include system 
specifications and requirements as specified in this part. The Model 
Tribal System effectively and efficiently allows a comprehensive Tribal 
IV-D agency to monitor, account for, and control all child support 
enforcement services and activities pursuant to part 309 of this 
chapter.
    (7) Office Automation means a generic adjunct component of a 
computer system that supports the routine administrative functions in 
an organization (e.g., electronic mail, word processing, internet 
access), as well as similar functions performed as part of an automated 
data processing system. Office Automation is not specifically designed 
to meet the programmatic and business-centric needs of an organization.
    (8) Reasonable Cost means a cost that is determined to be 
reasonable if, in its nature and amount, it does not exceed that which 
would be incurred by a prudent person under the circumstances 
prevailing at the time the decision was made to incur the cost. In 
determining reasonableness with regard to ADP systems cost, 
consideration shall be given to:
    (i) Whether the cost is of a type generally recognized as ordinary 
and necessary for the operation of a comprehensive Tribal IV-D agency;
    (ii) The restraints or requirements imposed by such factors as: 
sound business practices; arms-length bargaining; Federal, Tribal laws 
and regulations; and terms and conditions of any direct federal 
funding;
    (iii) Whether the individual concerned acted with prudence in the 
circumstances considering his or her responsibilities to the 
comprehensive Tribal IV-D agency, its employees, the public at large, 
and the Federal Government;
    (iv) Market prices for comparable goods or services;
    (v) Significant deviations from the established practices of the 
comprehensive Tribal IV-D agency which may unjustifiably increase the 
cost; and
    (vi) Whether a project's Total Acquisition Cost is in excess of the 
comprehensive Tribal IV-D agency's total Tribal IV-D program grant 
award for the year in which the request is made.
    (9) Service Agreement means a document signed by the Tribe or 
Tribal organization operating a comprehensive Tribal IV-D program under 
Sec.  309.65(a) and the State or other comprehensive Tribal IV-D 
program whenever the latter provides data processing services to the 
former and identifies those ADP services that the State or other 
comprehensive Tribal IV-D program will provide to the Tribe or Tribal 
organization. Additionally, a Service Agreement would include the 
following details:
     Schedule of charges for each identified ADP service and a 
certification that these charges apply equally to all users;
     Description of the method(s) of accounting for the 
services rendered under the agreement and computing service charges;
     Assurances that services provided will be timely and 
satisfactory;
     Assurances that information in the computer system as well 
as access, use and disposal of ADP data will be safeguarded in 
accordance with proposed Sec.  310.15;
     Beginning and ending dates of the period of time covered 
by the Service Agreement; and
     Schedule of expected total charges for the period of the 
Service Agreement.
    (10) Simplified Acquisition Threshold for ADP systems, equipment, 
and service acquisitions means a Tribe or Tribal organization's 
monetary threshold for determining whether competitive acquisition 
rules are required for a given procurement or $100,000, whichever is 
less.
    (b) The following terms apply to this part and are defined in Sec.  
95.605 of this title:
    ``Acquisition'';
    ``Advanced Planning Document (APD)'';
    ``Design or System Design'';
    ``Development'';
    ``Enhancement'';
    ``Federal Financial Participation (FFP)'';
    ``Operation'';
    ``Project'';
    ``Software''; and
    ``Total Acquisition Cost''.
    (c) All of the terms defined in Sec.  309.05 of this chapter apply 
to this part.

Subpart B: Requirements for Computerized Tribal IV-D Systems


Sec.  310.5  What options are available for Computerized Tribal IV-D 
Systems and office automation?

    (a) Allowable computerized support enforcement systems for a 
Comprehensive Tribal IV-D agency. A comprehensive Tribal IV-D agency 
may have in effect an operational computerized support enforcement 
system that meets Federal requirements under this part.
    (b) Computerized Tribal IV-D Systems. A Computerized Tribal IV-D 
System must be one of the design options listed below. A comprehensive 
Tribal IV-D program may automate its case processing and record-keeping 
processes through:
    (1) Installation, operation, maintenance, or enhancement of the 
Model Tribal System designed by the Office to address the program 
requirements defined in a Tribal IV-D plan in accordance with Sec.  
309.65(a) of this chapter and the functional requirements in Sec.  
310.10 of this part;
    (2) Establishment of Intergovernmental Service Agreements with a 
State or another comprehensive Tribal IV-D agency for access to that 
agency's existing automated data processing computer system to support 
comprehensive Tribal IV-D program operations.
    (c) Office Automation. A comprehensive Tribal IV-D agency may opt 
to conduct automated data processing and record-keeping activities 
through Office Automation. Allowable activities under this section 
include procurement, installation, operation and maintenance of 
essential Office Automation capability as defined in Sec.  310.1 of 
this part.
    (d) Alternative to Computerized Tribal IV-D Systems and Office 
Automation. A comprehensive Tribal IV-D agency may design, develop, 
procure, or enhance an automated data processing system funded entirely 
with Tribal funds.


Sec.  310.10  What are the functional requirements for the Model Tribal 
IV-D system?

    A Model Tribal IV-D system must:
    (a) Accept, maintain and process the actions in the support 
collection and paternity determination processes under the Tribal IV-D 
plan, including:
    (1) Identifying information such as social security numbers, names, 
dates of birth, home addresses and mailing addresses (including postal 
zip codes) on individuals against whom paternity and support 
obligations are sought to be established or enforced and on

[[Page 33062]]

individuals to whom support obligations are owed, and other data as may 
be requested by the Office;
    (2) Verifying information on individuals referred to in paragraph 
(a)(1) of this section with Tribal, Federal, State and local agencies, 
both intra-tribal and intergovernmental;
    (3) Maintaining information pertaining to:
    (i) Applications and referrals for Tribal IV-D services, including:
    (A) Case record;
    (B) Referral to the appropriate processing unit (i.e., locate or 
paternity establishment);
    (C) Caseworker notification;
    (D) Case Identification Number; and
    (E) Participant Identification Number;
    (ii) Delinquency and enforcement activities;
    (iii) Intra-tribal, intergovernmental, and Federal location of the 
putative father and noncustodial parents;
    (iv) The establishment of paternity;
    (v) The establishment of support obligations;
    (vi) The payment and status of current support obligations;
    (vii) The payment and status of arrearage accounts;
    (4) Maintaining data on case actions administered by both the 
initiating and responding jurisdictions in intergovernmental cases;
    (b) Update, maintain and manage all IV-D cases under the Tribal IV-
D plan from initial application or referral through collection and 
enforcement, including any events, transactions, or actions taken 
therein;
    (c) Record and report any fees collected, either directly or by 
interfacing with State or Tribal financial management and expenditure 
information;
    (d) Distribute current support and arrearage collections in 
accordance with Federal regulations at Sec.  309.115 of this chapter 
and Tribal laws;
    (e) Maintain, process and monitor accounts receivable on all 
amounts owed, collected, and distributed with regard to:
    (1) Detailed payment histories that include the following:
    (i) Amount of each payment;
    (ii) Date of each collection;
    (iii) Method of payment;
    (iv) Distribution of payments; and
    (v) Date of each disbursement;
    (2) Automated income withholding activities such as:
    (i) Recording and maintaining any date the noncustodial parent 
defaults on payment of the support obligation in an amount equal to the 
support payable for one month;
    (ii) Generating the Standard Federal Income Withholding Form; and
    (iii) Allocating amounts received by income withholding according 
to Sec. Sec.  309.110 and 309.115 of this chapter.
    (f) Maintain and automatically generate data necessary to meet 
Federal reporting requirements on a timely basis as prescribed by the 
Office. At a minimum this must include:
    (1) Yearly notices on support collected, which are itemized by 
month of collection and provided to families receiving services under 
the comprehensive Tribal IV-D program as required in Sec.  309.75(c) of 
this chapter, to all case participants regarding support collections; 
and
    (2) Reports submitted to the Office for program monitoring and 
program performance as required in Sec.  309.170 of this chapter;
    (g) Provide automated processes to enable the Office to monitor 
Tribal IV-D program operations and to assess program performance 
through the audit of financial and statistical data maintained by the 
system; and
    (h) Provide security to prevent unauthorized access to, or use of, 
the data in the system as detailed in Sec.  310.15 of this part.


Sec.  310.15  What are the safeguards and processes that comprehensive 
Tribal IV-D agencies must have in place to ensure the security and 
privacy of Computerized Tribal IV-D Systems and Office Automation?

    (a) Information integrity and security. The comprehensive Tribal 
IV-D agency must have safeguards on the integrity, accuracy, 
completeness, access to, and use of data in the Computerized Tribal IV-
D System and Office Automation. Computerized Tribal IV-D and Office 
Automation Systems should be compliant with the Federal Information 
Security Management Act, and the Privacy Act. Some of the required 
safeguards must include written policies and procedures concerning the 
following:
    (1) Periodic evaluations of the system for risk of security and 
privacy breaches;
    (2) Procedures to allow Tribal IV-D personnel controlled access and 
use of IV-D data, including:
    (i) Specifying the data which may be used for particular IV-D 
program purposes, and the personnel permitted access to such data;
    (ii) Permitting access to and use of data for the purpose of 
exchanging information with State and Tribal agencies administering 
programs under titles IV-A, IV-E and XIX of the Act to the extent 
necessary to carry out the comprehensive Tribal IV-D agency's 
responsibilities with respect to such programs;
    (3) Maintenance and control of application software program data;
    (4) Mechanisms to back-up and otherwise protect hardware, software, 
documents, and other communications; and
    (5) Mechanisms to report breaches of personally identifiable 
information to the Department of Homeland Security, and to respond to 
those breaches.
    (b) Monitoring of access. The comprehensive Tribal IV-D agency must 
monitor routine access to and use of the Computerized Tribal IV-D 
System and Office Automation through methods such as audit trails and 
feedback mechanisms to guard against, and promptly identify, 
unauthorized access or use;
    (c) Training and information. The comprehensive Tribal IV-D agency 
must have procedures to ensure that all personnel, including Tribal IV-
D staff and contractors, who may have access to or be required to use 
confidential program data in the Computerized Tribal IV-D System and 
Office Automation are adequately trained in security procedures.
    (d) Penalties. The comprehensive Tribal IV-D agency must have 
administrative penalties, including dismissal from employment, for 
unauthorized access to, disclosure or use of confidential information.

Subpart C--Funding for Computerized Tribal IV-D Systems and Office 
Automation


Sec.  310.20  What are the conditions for funding the installation, 
operation, maintenance and enhancement of Computerized Tribal IV-D 
Systems and Office Automation?

    (a) Conditions that must be met for FFP at the applicable matching 
in Sec.  309.130(c) of this chapter for Computerized Tribal IV-D 
Systems. The following conditions must be met to obtain FFP in the 
costs of installation, operation, maintenance, and enhancement of a 
Computerized Tribal IV-D System at the applicable matching rate under 
Sec.  309.130(c) of this chapter:
    (1) A comprehensive Tribal IV-D agency must have submitted, and the 
Office must have approved, an Advance Planning Document (APD) for the 
installation and enhancement of a Computerized Tribal IV-D System;
    (2) An APD for installation of a Computerized Tribal IV-D System 
must:
    (i) Represent the sole systems effort being undertaken by the 
comprehensive Tribal IV-D agency under this part;
    (ii) Describe the projected resource requirements for staff, 
hardware, software, network connections and other needs and the 
resources available or expected to be available to meet the 
requirements;

[[Page 33063]]

    (iii) Contain a proposed schedule of project milestones with detail 
sufficient to describe the tasks, activities, and complexity of the 
initial implementation project;
    (iv) Contain a proposed budget including a description of 
expenditures by category and amount for items related to installing, 
operating, maintaining, and enhancing the Computerized Tribal IV-D 
System that are eligible for Federal funding at the applicable matching 
rate under Sec.  309.130(c) of this chapter; and
    (v) Contain a statement that the comprehensive Tribal IV-D agency 
agrees in writing to use the Computerized Tribal IV-D System for a 
minimum period of time;
    (3) The following conditions, in addition to those in paragraphs 
(a)(1) and (a)(2) of this section, must be met to obtain FFP in the 
installation costs of access to a State or another comprehensive Tribal 
IV-D program's ADP system established under an Intergovernmental 
Service Agreement. The comprehensive Tribal IV-D agency must:
    (i) Maintain a copy of each intergovernmental cooperative agreement 
and Service Agreement in its files for Federal review; and
    (ii) Ensure that the:
    (A) Service Agreement for which FFP is being sought, meets the 
definition of a Service Agreement as defined in proposed Sec.  310.1 of 
this title;
    (C) Claims for FFP conform to the timely claim provisions of part 
95 subpart A of this title; and
    (D) Service Agreement was not previously disapproved by the 
Department.
    (4) The following conditions, in addition to those in paragraphs 
(1) through (3) of this section, must be met in order for a 
comprehensive Tribal IV-D agency to obtain FFP in the costs of 
enhancements to their Computerized Tribal IV-D System:
    (i) The project's Total Acquisition Cost cannot exceed the 
comprehensive Tribal IV-D agency's total Tribal IV-D program grant 
award for the year in which the acquisition request is made; and
    (ii) The APD budget, schedule and commitment to use the 
Computerized Tribal IV-D System for a specified minimum period of time 
must be updated to reflect the enhancement project.
    (5) To receive FFP in the costs of the operation and maintenance of 
a Computerized Tribal IV-D System installed under proposed 310.20 or 
developed under Sec.  309.145(h)(5), which refers to a Tribal automated 
data processing system that is funded entirely with Tribal funds, the 
comprehensive Tribal IV-D agency must include operation and maintenance 
costs in its annual Title IV-D program budget submission in accordance 
with Sec.  309.15(c) of this chapter;
    (6) To receive FFP in the costs of the installation, operation, and 
maintenance of essential Office Automation capabilities, the 
comprehensive Tribal IV-D agency must include such costs in its annual 
Title IV-D program budget submission in accordance with Sec.  309.15(c) 
of this chapter;
    (b) Procedure for APD Submittal. The comprehensive Tribal IV-D 
agency must submit an APD for a Computerized Tribal IV-D System to the 
Commissioner of OCSE, Attention: Division of State and Tribal Systems. 
The APD submitted by the comprehensive Tribal IV-D agency must be 
approved and signed by the comprehensive Tribal IV-D agency Director 
and the appropriate Tribal officials prior to submission to OCSE for 
Office approval.


Sec.  310.25  What conditions apply to acquisitions of Computerized 
Tribal IV-D Systems?

    (a) APD Approval. A comprehensive Tribal IV-D agency must have an 
approved APD in accordance with the applicable requirements of Sec.  
310.20 of this part prior to initiating acquisition of a Computerized 
Tribal IV-D System.
    (b) Procurements. Requests for Proposals (RFP) and similar 
procurement documents, contracts, and contract amendments involving 
costs eligible for FFP, must be submitted to the Office for approval 
prior to release of the procurement document, and prior to the 
execution of the resultant contract when a procurement is anticipated 
to or will exceed the Simplified Acquisition Threshold.
    (c) Software and ownership rights. (1) All procurement and contract 
instruments must include a clause that provides that the comprehensive 
Tribal IV-D agency will have all ownership rights to Computerized 
Tribal IV-D System software or enhancements thereof and all associated 
documentation designed, developed or installed with FFP. 
Intergovernmental Service Agreements are not subject to this paragraph.
    (2) The Office reserves a royalty-free, nonexclusive, and 
irrevocable license to reproduce, publish, or otherwise use and to 
authorize others to use for Federal Government purposes, such software, 
modifications and documentation.
    (3) FFP is not available for the costs of rental or purchase of 
proprietary application software developed specifically for a 
Computerized Tribal IV-D System. Commercial-off-the-shelf (COTS) 
software packages that are sold or leased to the general public at 
established catalog or market prices are not subject to the ownership 
and license provisions of this requirement.
    (d) Requirements for acquisitions under the threshold amount. A 
comprehensive Tribal IV-D agency is not required to submit procurement 
documents, contracts, and contract amendments for acquisitions under 
the Simplified Acquisition Threshold unless specifically requested to 
do so in writing by the Office.


Sec.  310.30  Under what circumstances would FFP be suspended or 
disallowed in the costs of Computerized Tribal IV-D Systems?

    (a) Suspension of APD approval. The Office will suspend approval of 
the APD for a Computerized Tribal IV-D System approved under this part 
as of the date that the system ceases to comply substantially with the 
criteria, requirements, and other provisions of the APD. The Office 
will notify a Tribal IV-D agency in writing in a notice of suspension, 
with such suspension effective as of the date on which there is no 
longer substantial compliance.
    (b) Suspension of FFP. If the Office suspends approval of an APD in 
accordance with this part during the installation, operation, or 
enhancement of a Computerized Tribal IV-D System, FFP will not be 
available in any expenditure incurred under the APD after the date of 
the suspension until the date the Office determines that the 
comprehensive Tribal IV-D agency has taken the actions specified in the 
notice of suspension described in paragraph (a) of this section. The 
Office will notify the comprehensive Tribal IV-D agency in writing upon 
making such a determination.


Sec.  310.35  Under what circumstances would emergency FFP be available 
for Computerized Tribal IV-D Systems?

    (a) Conditions that must be met for emergency FFP. The Office will 
consider waiving the approval requirements for acquisitions in 
emergency situations, such as natural or man-made disasters, upon 
receipt of a written request from the comprehensive Tribal IV-D agency. 
In order for the Office to consider waiving the approval requirements 
in Sec.  310.25 of this part, the following conditions must be met:
    (1) The comprehensive Tribal IV-D agency must submit a written 
request to the Office prior to the acquisition of any

[[Page 33064]]

ADP equipment or services. The written request must be sent by 
registered mail and include:
    (i) A brief description of the ADP equipment and/or services to be 
acquired and an estimate of their costs;
    (ii) A brief description of the circumstances which resulted in the 
comprehensive Tribal IV-D agency's need to proceed prior to obtaining 
approval from the Office; and
    (iii) A description of the harm that will be caused if the 
comprehensive Tribal IV-D agency does not acquire immediately the ADP 
equipment and services.
    (2) Upon receipt of the information, the Office will, within 14 
working days of receipt, take one of the following actions:
    (i) Inform the comprehensive Tribal IV-D agency in writing that the 
request has been disapproved and the reason for disapproval; or
    (ii) Inform the comprehensive Tribal IV-D agency in writing that 
the Office recognizes that an emergency exists and that within 90 
calendar days from the date of the initial written request under 
paragraph (a)(1) of this section the comprehensive Tribal IV-D agency 
must submit a formal request for approval which includes the 
information specified at Sec.  310.25 of this title in order for the 
ADP equipment or services acquisition to be considered for the Office's 
approval.
    (b) Effective date of emergency FFP. If the Office approves the 
request submitted under paragraph (a)(2) of this section, FFP will be 
available from the date the comprehensive Tribal IV-D agency acquires 
the ADP equipment and services.

Subpart D--Accountability and Monitoring Procedures for 
Computerized Tribal IV-D Systems


Sec.  310.40  What requirements apply for accessing systems and records 
for monitoring Computerized Tribal IV-D Systems and Office Automation?

    In accordance with Part 95 of this title, a comprehensive Tribal 
IV-D agency must allow the Office access to the system in all of its 
aspects, including installation, operation, and cost records of 
contractors and subcontractors, and of Service Agreements at such 
intervals as are deemed necessary by the Office to determine whether 
the conditions for FFP approval are being met and to determine the 
efficiency, effectiveness, reasonableness of the system and its cost.

[FR Doc. E8-13042 Filed 6-10-08; 8:45 am]
BILLING CODE 4120-01-P