[Federal Register Volume 85, Number 111 (Tuesday, June 9, 2020)]
[Rules and Regulations]
[Pages 35201-35208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12188]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Parts 302, 303, 305, 307, and 309

RIN 0970-AC75


Child Support

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

ACTION: Final rule; technical corrections.

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SUMMARY: This rule is intended to eliminate regulations that are 
outdated or unnecessary and to make technical amendments to the 
Flexibility, Efficiency, and Modernization in Child Support Enforcement 
(FEM) final rule, published on December 20, 2016, including to amend 
the compliance date for review and adjustment of child support orders. 
The Office of Child Support Enforcement is also making conforming 
amendments to the regulations as a result of the Bipartisan Budget Act 
of 2018.

DATES: This final rule is effective on July 9, 2020. The compliance 
dates, or the dates that States must comply with the final rule, differ 
among the various sections of the Federal regulations. The reasons for 
delaying compliance dates include State legislative changes, system 
modifications, procedural updates, etc.
    For more information on compliance dates, see SUPPLEMENTARY 
INFORMATION.

FOR FURTHER INFORMATION CONTACT: The OCSE Division of Policy and 
Training at [email protected]. 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: 

Compliance Dates

    The compliance date, or the date by which the States must follow 
the rule, will be August 10, 2020 except, as noted below:
     Review and adjustment of child support orders [45 CFR 
303.8(b)(7)(ii)]: For those States that consider incarceration to be 
voluntary unemployment, this final rule will delay the compliance date 
for sending notices [45 CFR 303.8(b)(7)(ii)] to 1 year after completion 
of the first quadrennial review of the State's guidelines that 
commences on or after December 21, 2017.
     Annual collection fee for individuals not receiving title 
IV-A assistance [45 CFR 302.33(e)]: The compliance date is October 1, 
2018 unless the Secretary of Health and Human Services determines that 
State legislation (other than legislation appropriating funds) is 
required for a State to meet the requirements in section 454(6)(B)(ii) 
of the Social Security Act [42 U.S.C. 654(6)(B)(ii)]. In such a case, 
the State shall not be regarded as failing to meet such requirements 
before the first day of the first calendar quarter beginning after the 
first regular session of the State legislature that begins after 
February 9, 2018. For the purposes of determining this date, for States 
with a 2-year legislative session, each year of the session is deemed 
to be a separate regular session of the State legislature.
     Quarterly wage and unemployment compensation claims 
reporting to the National Directory of New Hires [45 CFR 303.108(c)]: 
The compliance date for reporting quarterly wage information is 1 year 
after the publication of the final rule. However, if State law 
revisions are needed, the compliance date is the first day of the 
second calendar quarter beginning after the close of the first regular 
session of the State legislature that begins after July 9, 2020.
     Functional requirements for computerized support 
enforcement systems in operation by October 1, 2000 [45 CFR 
307.11(c)(3)(i) and(ii)]: The compliance date for system enhancements 
to add Social Security Retirement (SSR) with concurrent Supplemental 
Security Income (SSI) to prevent garnishment of these funds from the 
noncustodial parent's financial account will be February 4, 2021.

I. Statutory Authority

    This final rule is published under the authority granted to the 
Secretary of Health and Human Services by section 1102 of the Social 
Security Act (Act) [42 U.S.C. 1302]. Section 1102 of the Act authorizes 
the Secretary to publish regulations, not inconsistent with the Act, as 
may be necessary for the efficient administration of the functions for 
which the Secretary is responsible under the Act. Additionally, the 
Secretary has authority under section 452(a)(1) of the Act [42 U.S.C. 
652(a)(1)], through a designee, to ``establish such

[[Page 35202]]

standards for State programs for locating noncustodial parents, 
establishing paternity, and obtaining child support . . . as [the 
designee] determines to be necessary to assure that such programs will 
be effective.'' Rules promulgated under section 452(a)(1) must meet two 
conditions. First, the Secretary's designee must find that the rule 
meets one of the statutory objectives of ``locating noncustodial 
parents, establishing paternity, and obtaining child support.'' Second, 
the Secretary's designee must determine that the rule is necessary to 
``assure that such programs will be effective.''
    Section 454(13) of the Act [42 U.S.C. 654(13)] requires a State 
plan to ``provide that the State will comply with such other 
requirements and standards as the Secretary determines to be necessary 
to the establishment of an effective program for locating noncustodial 
parents, establishing paternity, obtaining support orders, and 
collecting support payments and provide that information requests by 
parents who are residents of other States be treated with the same 
priority as requests by parents who are residents of the State 
submitting the plan.''
    This final rule is published in accordance with the following 
sections of the Act: Section 451--Appropriation; section 452--Duties of 
the Secretary; section 453--Federal parent locator service; section 
453A--State directory of new hires; section 454--State plan for child 
and spousal support; section 454A--Automated data processing; section 
455--Payments to States; section 459--Consent by the United States to 
income withholding, garnishment, and similar proceedings for 
enforcement of child support and alimony obligations; section 460--
Civil actions to enforce support obligations; section 464--Collection 
of past-due support from Federal tax refunds; section 466--Requirement 
of statutorily prescribed procedures to improve effectiveness of child 
support enforcement; and section 467--State guidelines for child 
support awards.

II. Background

    This final rule carries out the President's directives in Executive 
Orders (E.O.) 13771 and 13777. Executive Order 13777 requires each 
agency to establish a Regulatory Reform Task Force that shall evaluate 
existing regulations (as defined in section 4 of E.O. 13771) and make 
recommendations to the agency head regarding their repeal, replacement, 
or modification, consistent with applicable law. This rule eliminates 
identified regulatory requirements that are outdated and unnecessary. 
Additionally, this regulation makes a few technical amendments and 
needed policy adjustments.
    This Technical Corrections final rule addresses several updates we 
will discuss in Section III, and the three substantive changes 
mentioned here. First, OCSE is amending the compliance date for Review 
and adjustment of child support orders in Sec.  303.8(b)(7)(ii). The 
changes addressed in this rule, makes a technical change, that will 
allow those States that consider incarceration to be voluntary 
unemployment additional time to comply with the FEM final rule.
    Second, on February 9, 2018, the President signed the Bipartisan 
Budget Act of 2018, Public Law 115-123. Section 53117 of Public Law 
115-123, Modernizing child support enforcement fees, amends section 
454(6)(B)(ii) of the Social Security Act to increase the annual 
collection fee from $25 to $35 for services provided by the State child 
support agency to individuals not receiving title IV-A assistance, 
i.e., Temporary Assistance for Needy Families (TANF). The law also 
revises the amount from $500 to $550 that the State must collect and 
disburse to the family before imposing the fee each Federal fiscal 
year. This final rule codifies these statutory requirements.
    Finally, to obtain more timely National Directory of New Hires 
(NDNH) data, the Office of Child Support Enforcement (OCSE) is amending 
Sec.  303.108(c) to reduce the timeframe to report wage information to 
the NDNH from the end of the fourth month following the reporting 
period to the end of the second month following the reporting period. 
This is a change from the Notice of Proposed Rulemaking, due to 
recommendations in comments received on the proposed rule, and is 
outlined in the response to comments under Section III.

III. Summary Descriptions of the Regulatory Provisions and Response to 
Comments

    The following is a summary of the regulatory provisions included in 
the final rule and, where appropriate, how these provisions differ from 
what was initially included in the Notice of Proposed Rulemaking 
(NPRM). The NPRM was published in the Federal Register on December 18, 
2018 (83 FR 64803 through 64807). The regulatory provisions included in 
this final rule are discussed by section, and includes the rationale 
when changes from the NPRM were necessary.
    OCSE received 43 sets of comments from States, the Department of 
Labor, workforce agencies, and other interested entities. We posted 30 
sets of comments on www.regulations.gov; 11 comments were duplicate 
responses (when the same commenter submitted the same response more 
than once or via alternate methods e.g., mail and online), and 2 
comments were not posted because they were outside of the scope of the 
NPRM. The posted comments were from the following groups: 21 State 
child support agencies, 3 national child support organizations, 5 State 
workforce agencies, and 1 national workforce agency.
    Generally, the comments received on the NPRM were in agreement or 
support of the proposed changes. However, there were comments that 
sought further clarification or addressed concerns with the proposed 
changes. Therefore, in this section, OCSE will discuss those comments 
seeking clarification or addressing specific concerns. In drafting the 
final rule, OCSE closely reviewed the comments and made a number of 
adjustments in response to those comments. Additionally, some 
provisions did not receive any comment. Immediately following the 
Summary Description for each provision, OCSE includes the Response to 
Comments and provides the rationale for any changes made to the 
proposed rule.

Section 302.33: Services to Individuals Not Receiving Title IV-A 
Assistance

    OCSE proposed to revise 45 CFR 302.33(e) because section 
454(6)(B)(ii) of the Social Security Act, on which it is based, was 
amended by Section 53117 of the Bipartisan Budget Act of 2018, Public 
Law 115-123, Modernizing Child Support Enforcement Fees. The $25 annual 
fee was increased to $35 by this statutory amendment. In addition, this 
amendment changed the amount the State must collect and disburse to the 
family each year before imposing and collecting the annual fee which 
was changed from $500 to $550. OCSE received four comments in support 
of this provision.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, 45 CFR 302.33(e) is adopted as proposed.

Section 302.51: Distribution of Support Collections

    This section has been added to the final rule to address a 
technical correction needed in the regulations in section 45 CFR 
302.51(a)(5), regarding the corresponding change made to Sec.  
302.33(e) which updates the annual fee from $25 to $35 based on the 
Bipartisan Budget Act of 2018. We are removing ``$25'' and replacing it 
with

[[Page 35203]]

``$35'' to update the annual fee amount. This change was not proposed 
in the NPRM and therefore no comments were received.

Section 303.7: Provision of Services in Intergovernmental IV-D Cases

    This section has been added to the final rule to address a 
technical correction needed in the regulations in section 45 CFR 
303.7(f), regarding the corresponding change made to Sec.  302.33(e) 
which updates the annual fee from $25 to $35 based on the Bipartisan 
Budget Act of 2018. We are removing ``$25'' and replacing it with 
``$35'' to update the annual fee amount. This change was not proposed 
in the NPRM and therefore no comments were received.

Section 303.11: Case Closure Criteria

    OCSE proposed to revise 45 CFR 303.11(b)(9)(ii) to allow case 
closure when the noncustodial parent is also receiving concurrent 
Supplemental Security Income (SSI) and Social Security Retirement (SSR) 
benefits. The rationale for closing concurrent SSI/Social Security 
Disability Income (SSDI) cases applies equally to concurrent SSI/SSR 
cases because the noncustodial parent meets the low-income means-tested 
criteria for the SSI program. The concurrent SSI/SSR noncustodial 
parent receives no more income than a SSI/SSDI recipient. SSDI and SSR 
benefits are related in that SSR benefits take the place of SSDI when 
an individual reaches retirement age. Additionally, this provision 
remains optional, and provides States with the flexibility to close the 
case when deemed appropriate by the State. OCSE received nine comments 
in support of this provision. Additionally, OCSE received two comments 
suggesting that the case closure code be broadened to include other 
means tested programs and one commenter asked if the case closure 
criteria is still optional.
    Comment: One commenter agreed with the proposed provision, and 
suggested that OCSE broaden this closure code to include any case where 
the noncustodial parent's only source of income is a means-tested 
income program equal to or less than if the noncustodial parent 
qualified for SSI. This commenter stated the rationale would be the 
same and would not lead to some cases being unable to close due to an 
unequal treatment of participants.
    Response: OCSE understands that there are other income categories 
that may seem related, however, this case closure provision is specific 
to noncustodial parents who receive SSI payments.
    Comment: One commenter suggested that Social Security Survivor's 
benefits should be included ahead of including Social Security 
Retirement and believed this should be added to this criteria.
    Response: OCSE disagrees. We are including SSR as a technical 
correction to this provision because of its close association with 
SSDI, as described here and under Sec.  307.11. Considering any other 
benefits at this time is outside the scope of the regulation. As 
previously stated, a recipient receives concurrent SSI and either SSDI 
or SSR benefits under title II of the Act when the disabled 
noncustodial parent qualifies for the means-tested SSI benefits on the 
basis of his or her income and assets, but also qualifies for the SSDI 
or SSR benefits. In these cases, the Social Security Administration 
pays a combination of benefits up to the SSI benefit level. Therefore, 
a recipient who receives a concurrent SSI/SSDI or SSI/SSR benefit 
receives no additional money if they transition from a SSDI benefit to 
a SSR benefit because the recipient reached the appropriate retirement 
age. As such, only those cases that the State deems appropriate to 
close under Sec.  303.11(b)(9)(ii) may be considered.
    Comment: One commenter asked if this case closure criteria is still 
optional.
    Response: Yes. This case closure criterion remains optional. The 
IV-D agency should review those cases where the noncustodial parent is 
a recipient of SSI to determine on a case-by-case basis if it is 
appropriate to continue to enforce obligations for child support when 
other forms of income may be available or to close the case.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, and considering the comments received, OCSE 
finalizes 45 CFR 303.11(b)(9)(ii) as proposed.

Section 303.71: Requests for Full Collection Services by the Secretary 
of the Treasury

    OCSE proposed to remove 45 CFR 303.71, ``Requests for full 
collection services by the Secretary of the Treasury.'' Due to the low 
number of cases currently being referred, and the availability of other 
more effective enforcement procedures, OCSE is removing this provision. 
States have not submitted any new cases for this enforcement procedure 
since 2013. Since the inception of this provision, we have made a 
number of more effective enforcement procedures available to States. 
Given that States are no longer widely using this enforcement tool, we 
are streamlining the regulations by removing this provision. However, 
this provision is statutory, therefore the removal of Sec.  303.71 will 
not impact a State's ability to use this procedure, pursuant to section 
452(b) of the Act [42 U.S.C. 652(b)], if it so chooses. Five commenters 
agreed with the provision and two commenters agreed with the provision 
and requested that OCSE publish guidance.
    Comment: Two commenters agreed with the proposed provision, and 
suggested publication of guidance to clarify when States can use this 
enforcement action.
    Response: States may contact [email protected] for guidance 
if they elect to use this provision.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, and considering the comments received, OCSE 
removes 45 CFR 303.71 as proposed.

Section 303.73: Applications To Use the Courts of the United States To 
Enforce Court Orders

    OCSE proposed to remove 45 CFR 303.73, ``Applications to use the 
courts of the United States to enforce court orders,'' because it is no 
longer necessary. As stated in the NPRM, this provision involves a 
State seeking to use the Federal courts to enforce a child support 
order against an absent parent in another State, by applying to the 
Secretary for permission to use a United States district court for such 
purpose based on instructions issued by OCSE. This provision, 
originally promulgated at 45 CFR 302.72 in 1975, was needed to enforce 
interstate orders. Since then, the ``Preventing Sex Trafficking and 
Strengthening Families Act,'' enacted on September 29, 2014 (Pub. L. 
113-183), amended section 466(f) of the Social Security Act, 42 U.S.C. 
666, requiring all States to enact the 2008 amendments to the Uniform 
Interstate Family Support Act ``officially adopted as of September 30, 
2008 by the National Conference of Commissioners on Uniform State 
Laws'' (referred to as UIFSA 2008). UIFSA 2008 makes the requirements 
in this provision obsolete since it establishes procedures for 
enforcing interstate orders.
    Currently, all States are using UIFSA 2008, which defines a 
tribunal as a court, administrative agency, or quasi-judicial entity 
authorized to establish, enforce, or modify support orders or to 
determine parentage of a child. UIFSA also establishes rules/standards 
related to personal, subject matter, and long-arm jurisdiction, and 
establishes procedures on registering/enforcing foreign orders. 
However, OCSE acknowledges that there are still statutory provisions, 
in sections

[[Page 35204]]

452(a)(8) and 460 of the Act, 42 U.S.C. 652(a)(8) and 660 that permit 
States to apply to the Secretary for permission to use a United States 
district court, and that Action Transmittal, issued February 6, 1976 
(OCSE-AT-76-1) and revised May 12, 1976 (OCSE-AT-76-8), provides 
guidance for use of Federal courts and instructions to State IV-D 
agencies for preparation and submission of applications for 
certification to use a U.S. district court. OCSE received four comments 
in support of this proposed change.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, OCSE removes 45 CFR 303.73 as proposed.

Section 303.108: Quarterly Wage and Unemployment Compensation Claims 
Reporting to the National Directory of New Hires

    Section 453A(g)(2)(B) of the Act, 42 U.S.C. 653a(g)(2), requires 
that the State Directory of New Hires shall, on a quarterly basis, 
furnish to the NDNH information concerning the wages and unemployment 
compensation paid to individuals, by such dates, in such format, and 
containing such information as the Secretary of Health and Human 
Services shall specify in regulations. In accordance with 45 CFR 
303.108(c), the State must report quarterly wage information no later 
than the end of the fourth month following the reporting period. 
However, the State reports quarterly unemployment compensation claim 
information no later than the end of the first month following the 
reporting period.
    In the NPRM, OCSE proposed to change that provision to reduce the 
timeframe for reporting quarterly wage data, proposing that States 
report by the end of the first month following the reporting period. 
This would align the timeframes for when States must report wage and 
unemployment compensation claims data to the NDNH and help ensure State 
child support programs receive data more timely to locate parents and 
to establish and enforce support orders. However, the timeframe OCSE 
proposed garnered alternate suggestions from several commenters, 
including the Department of Labor, national labor organizations, State 
workforce agencies, and child support agencies. In addition, OCSE 
received two comments regarding compliance with implementing the 
requirement.
    Comment: Several commenters expressed that the timeframe proposed 
by the NPRM does not provide sufficient time for the State to report 
quarterly wage data to the NDNH, based on the timeframe that employers 
must report to their States. Commenters stated that most States permit 
employers to file their wage reports up through the end of the month 
after a calendar quarter ends. This would mean that those States would 
need to provide the data to the NDNH on the same deadline. Commenters 
advised that States provide information that has actually been received 
and processed into their systems, and they are unable to do so with the 
same deadline as employers. As an alternative, several commenters 
suggested moving the deadline to report quarterly wage information to 
the NDNH to no sooner than the end of the second month after a calendar 
quarter.
    Response: OCSE agrees with the alternative suggestion to change the 
reporting timeframe from the proposed end of the first month following 
the reporting period to the end of the second month following the 
reporting period. This will assist in streamlining the receipt of 
timely data to the NDNH and help State child support programs receive 
data to locate parents and to establish and enforce support orders in a 
more timely manner.
    Comment: Some commenters suggested moving the deadline to report 
quarterly wage information to the NDNH to no sooner than the end of the 
third month after a calendar quarter.
    Response: OCSE understands that, due to varying systems and 
employer deadlines, more time would be preferable. However, we received 
feedback from the Department of Labor and a national labor 
organization. They have provided an alternative to the proposed change 
in the NPRM. They suggested moving the deadline to report quarterly 
wage information to the NDNH to no later than the end of the second 
month after a calendar quarter, and OCSE agrees.
    Comment: One commenter stated that there is concern regarding the 
significant system changes required to implement this provision, and 
stated that timely reporting may not always be possible because of 
potentially conflicting reporting requirements placed on child support 
agencies, State workforce development agencies, and employers and 
indicated that it is impossible to know if implementation was possible.
    Response: OCSE understands the complexities of implementation. In 
the final rule, OCSE adopts a timeframe for reporting quarterly wage 
data to the NDNH different than the timeframe proposed in the NPRM, so 
that reporting is due by the end of the second month following the 
reporting period. In addition, States will have one year from the 
publication date of the final rule to comply with this change. For 
those States that will be required to change their State law, the 
compliance date will be the first day of the second calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after July 9, 2020.
    Comment: One commenter suggested that the compliance date for 
implementation of the proposed changes to Sec.  303.108 should be 
delayed, if a State needs to adopt changes in State law.
    Response: OCSE agrees and has amended the compliance date from the 
NPRM. The compliance date of this provision in the final rule is 1 year 
after the publication of the final rule unless State law revisions are 
needed, in which case the compliance date is the first day of the 
second calendar quarter beginning after the close of the first regular 
session of the State legislature that begins after July 9, 2020.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, and considering the comments received, OCSE 
finalizes Sec.  303.108(c) by changing the timeframe for reporting 
quarterly wage data to the end of the second month following the 
reporting period, instead of the end of the first month as proposed.

Section 305.65: State Cooperation in Audit

    This section has been added to the final rule to address a 
technical correction needed in the regulations in section 45 CFR 
305.65(b), regarding definitions of part 305, which are found in Sec.  
305.1. We are removing ``Sec.  305.2'' and replacing it with ``Sec.  
305.1'' to correct the section citation. This change was not proposed 
in the NPRM and therefore no comments were received.

Section 307.11: Functional Requirements for Computerized Support 
Enforcement Systems in Operation by October 1, 2000

    OCSE proposed several revisions to Sec.  307.11(c)(3) (i) and (ii). 
The first proposed change was a technical correction to the FEM final 
rule to include noncustodial parents who receive concurrent 
Supplemental Security Income (SSI) and Social Security Retirement (SSR) 
benefits under title II of the Act. In the FEM final rule, Sec.  
307.11(c)(3)(i) precludes garnishment of financial accounts for SSI 
recipients and concurrent SSI and SSDI recipients. Paragraph (c)(3)(ii) 
requires the State to make the SSI recipient whole if the State 
inappropriately garnishes the SSI benefit or concurrent SSI and SSDI 
benefits from the noncustodial parent's

[[Page 35205]]

financial account and return these monies within 5 business days after 
the State becomes aware that the noncustodial parent was 
inappropriately garnished. In the NPRM for this rule, OCSE proposed 
amending these provisions to also apply these requirements to 
concurrent SSI and SSR benefits. As indicated in the NPRM, a disabled 
noncustodial parent qualifies for the means-tested SSI benefit on the 
basis of his or her income and assets, but also qualifies for the SSDI 
or SSR benefits because of employment credits. Individuals eligible to 
receive SSR may be eligible to receive SSI benefits when their SSR 
benefit is below SSI income and assets limits. Given that the 
noncustodial parent is eligible for concurrent benefits, meets the SSI 
means-tested criteria, and receives the same benefit amount as a SSI 
beneficiary, the state should not garnish the SSDI or the SSR portion 
from the noncustodial parent's financial account.
    Second, OCSE proposed to amend Sec.  307.11(c)(3)(i) and (ii) by 
adding ``or through an income withholding order'' as an additional 
method of garnishment of funds that would be subject to the 
requirements in these paragraphs, in addition to garnishment of funds 
from the noncustodial parent's financial account. OCSE received several 
comments regarding the proposed changes to Sec.  307.11(c)(3)(i) and 
(ii). Most did not approve or agree with the proposed changes. However, 
OCSE also received comments that were in favor of the proposed changes. 
As stated in the FEM Final Rule, OCSE emphasizes that it makes no 
changes to its policy regarding recipients of title II benefits being 
subject to garnishment, as outlined in section 459(h)(1)(A)(ii)(I) of 
the Act, 42 U.S.C. 659(h)(1)(A)(ii)(I). When a recipient receives title 
II benefits only, those benefits are subject to garnishment, as can be 
found in Dear Colleague Letters (DCL), and Policy Interpretation 
Questions (PIQ) (DCL-13-06; PIQ-09-01; DCL-00-103). Title II benefits, 
such as SSDI and SSR benefits, are considered remuneration from 
employment, and therefore, State or Tribal child support agencies are 
allowed to continue to garnish the benefits of child support directly 
from the Federal payor as authorized under section 459(h) of the Act. 
States can request Title II and Title XVI information through the State 
Verification and Exchange System (SVES) when they submit a locate 
request through their statewide system or the Child Support Portal.
    Comment: Two commenters mentioned that the 5 days to return the 
funds received via income withholding, already sent to families is 
problematic.
    Response: OCSE understands the concern regarding the timeframe by 
which funds must be returned, and it has made some adjustments in the 
final rule. The FEM final rule currently requires the State to refund 
any funds improperly garnished within 5 business days after the agency 
determines that SSI payments or concurrent SSI payments and SSDI 
benefits were incorrectly garnished from the noncustodial parent's 
financial account. This Technical Corrections final rule, amends 
paragraphs (c)(3)(i) and (ii) to include concurrent SSI and SSR 
recipients, but the number of days remains unchanged. In this final 
rule, OCSE adds a new optional component under paragraph (c)(3)(iii), 
which outlines that the State should return funds improperly garnished 
from an income withholding order in accordance with Sec.  
303.100(a)(8).
    Comment: Three commenters requested that we not make the return of 
concurrent SSI and SSDI or SSR retroactive.
    Response: This policy applies once the regulation is in effect and 
states have until February 4, 2021 to be compliant with Sec.  
307.11(c)(3)(i) and (ii). There is no requirement that the policy be 
applied retroactively. States will need to return funds improperly 
garnished from financial accounts within 5 business days after 
determining the payments were incorrectly garnished. However, if those 
funds were from an income withholding order, the State should return 
funds improperly garnished in accordance with Sec.  303.100(a)(8) for 
States adopting Sec.  307.11(c)(3)(iii).
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, and considering the comments received, OCSE 
finalizes the proposed revision to Sec.  307.11(c)(3) with changes. 
OCSE amends paragraphs (c)(3)(i) and (ii) to include concurrent SSI and 
SSR recipients, however, the income withholding provision that was 
proposed has been modified in this final rule. Instead, OCSE adds, in 
the final rule, a new paragraph (c)(3)(iii) to include an optional 
component for States regarding noncustodial parents who receive 
concurrent SSI payments and either SSDI or SSR benefits under title II 
of the Act. For those noncustodial parents who are beneficiaries of SSI 
and concurrent SSDI or SSR, the State has the option to prevent 
garnishment of the concurrent SSI and SSDI or SSR payment through an 
income withholding order, and return funds incorrectly withheld in 
accordance with 45 CFR 303.100(a)(8) when deemed appropriate by the 
State. This optional provision will give States flexibility regarding 
concurrent SSI and SSDI or SSR benefits in cases involving noncustodial 
parents living at or below the subsistence level.

Section 307.30: Federal Financial Participation at the 90 Percent Rate 
for Statewide Computerized Support Enforcement Systems

    OCSE proposed removing Sec.  307.30 because this section is 
outdated. OCSE no longer has the authority to provide enhanced Federal 
financial participation (FFP) funding at the 90 percent rate for 
statewide computerized support enforcement systems. The 90 percent 
enhanced funding was only available for expenditures for the planning, 
design, development, installation, or enhancement of a statewide 
computerized support enforcement system during the Federal fiscal years 
1996 and 1997. OCSE received three comments in support of the proposed 
removal.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, OCSE removes 45 CFR 307.30 as proposed.

Section 307.31: Federal Financial Participation at the 80 Percent Rate 
for Computerized Support Enforcement Systems

    OCSE proposed removing Sec.  307.31 because this section is 
outdated. OCSE no longer has the authority to provide enhanced FFP 
funding at the 80 percent rate for statewide computerized support 
enforcement systems. The 80 percent enhanced funding was only available 
for expenditures for the planning, design, development, installation, 
or enhancement of a statewide computerized support enforcement system 
until September 30, 2001. OCSE received two comments in support of the 
proposed removal.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, OCSE removes 45 CFR 307.31 as proposed.

Section 309.20: Who submits a Tribal IV-D program application and 
where?

    OCSE proposed revising Sec.  309.20(b) to remove an outdated 
address and add ``Federal Office of Child Support Enforcement''. OCSE 
did not receive any comments on this provision.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, OCSE removes 45 CFR 309.20 as proposed.

[[Page 35206]]

Section 309.75: What administrative and management procedures must a 
Tribe or Tribal organization include in a Tribal IV-D plan?

    An Interim Final Rule effective December 26, 2014 (79 FR 75871), 
issued jointly by the Office of Management and Budget (OMB), HHS, and a 
number of Federal agencies, implements ``Uniform Administrative 
Requirements, Cost Principles and Audit Requirements for Federal 
Awards'' (UAR). OCSE proposed revising the reference regarding OMB 
Circular A-133, which was superseded by the UAR effective December 26, 
2014 (79 FR 75871), to the updated reference 45 CFR part 75, subpart F. 
OCSE did not receive any comments on this provision.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, OCSE revises 45 CFR 309.75 as proposed.

Section 309.155: What uses of Tribal IV-D program funds are not 
allowable?

    OCSE proposed revising the reference in Sec.  309.155(g) regarding 
OMB Circular A-87, which was superseded by the UAR effective December 
26, 2014 (79 FR 75871) to the updated reference 45 CFR part 75, subpart 
E. OCSE did not receive any comments on this provision.
    Summary of Regulatory Changes: For the reasons described in the 
proposed rule and above, OCSE revises 45 CFR 309.155 as proposed.

Section 309.170: What statistical and narrative reporting requirements 
apply to Tribal IV-D programs?

    This section has been added to address a technical change needed in 
the regulations in Sec.  309.170(a), regarding the OCSE-34 form and an 
update to the reporting timeframe. The form was previously designated 
as OCSE-34A, however it is now OCSE-34 and the reporting period for the 
first three quarters of the funding period has changed from 30 days to 
45 days. This change was not proposed in the NPRM and therefore no 
comments were received.
    Summary of Regulatory Changes: For the reasons described above, 
OCSE finalizes the technical change to 45 CFR 309.170(a) by replacing 
``OCSE-34A'' with ``OCSE-34,'' and changing ``30 days'' to ``45 days.''

IV. Regulatory Review

Paperwork Reduction Act

    The Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et seq., provides 
that a Federal agency generally cannot conduct or sponsor a collection 
of information, and the public is generally not required to respond to 
an information collection, unless it is approved by OMB under the PRA. 
All Departments are required by the PRA to submit to OMB for review and 
approval any reporting or recordkeeping requirements inherent in a 
proposed or final rule. For this final rule, States will need to 
resubmit the State plan preprint page 3.8-3, which is a PRA collection 
activity already covered under OMB Control number 0970-0017 as part of 
the ``State Plan for Child Support Collection and Establishment of 
Paternity Under Title IV-D of the Social Security Act.'' This final 
rule imposes no additional information collection requirements under 
the Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d); as a result, no 
new PRA approval needs to be sought or obtained.
    There is one amended and one new optional provision as a result of 
these regulations, which are one-time enhancements to statewide child 
support systems. The description and total estimated burden for the 
changes are described in the chart below.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Number of respondents:   Average burden hours                   National     National state
        Section and purpose                Instrument                  54                 per response        Total cost   federal share       share
--------------------------------------------------------------------------------------------------------------------------------------------------------
Added requirement under Sec.         Systems Modification..  One time system         100 hours x $100 x 54      $540,000        $356,400        $183,600
 307.11(c)(3)(i) and (ii) to                                  enhancement.            States.
 include Social Security Retirement
 (SSR) as part of the automated
 procedure to identify the
 recipient of Supplemental Security
 Income (SSI).
Added optional requirement under     Systems Modification..  One time system         100 hours x $100 x 27       270,000         178,200          91,800
 Sec.   307.11(c)(3)(iii) to                                  enhancement.            States.
 prevent garnishing through an
 income withholding order related
 to SSI or to return incorrectly
 garnished funds.
                                                                                                            --------------------------------------------
    Totals.........................  ......................  ......................  8,100 hours...........      810,000         534,600         275,400
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The systems enhancements above will add SSR to existing State 
systems functional requirements under Sec.  307.11(c)(3)(i) and (ii) 
and, optionally, under Sec.  307.11(c)(3)(iii). For the optional 
enhancement, we estimate half of the States, or approximately 27, will 
opt to implement. OCSE has not included a burden estimate in this rule 
to update the amount and collection threshold for the annual fee under 
Sec.  302.33(e) because most States have already enacted this statutory 
change, since it was promulgated February 2018.

Regulatory Flexibility Analysis

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

Regulatory Impact Analysis

Executive Orders 12866, 13563, and 13771
    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. OMB has determined that this rule is a significant 
regulatory action under E.O. 12866. This rule has been reviewed by OMB.
    While there are some costs associated with these regulations, they 
are not economically significant as defined under E.O. 12866. One 
economic impact of the final rule is associated with the change in the 
annual fee from $25 to $35 under 45 CFR 302.33(e). Based on data 
collected on the OCSE-34 Child Support Enforcement Program Quarterly 
Collection Report, OCSE estimates the impact of this change to be 
approximately $17 million, which represents a transfer from States and 
parents to the Federal Government. An

[[Page 35207]]

area with associated Federal costs is modifying the child support 
statewide automated system for one-time system enhancements to 
accommodate amended and optional criteria to identify noncustodial 
parents receiving SSI and concurrent SSR. The following estimates were 
derived from our table in section IV under Paperwork Reduction Act. The 
total cost for the required systems enhancement is estimated at 
$540,000 and for the optional systems enhancement is $270,000. These 
costs are to modify statewide IV-D systems for the States at a cost of 
$100 an hour (with an assumption that 27 States will implement the 
optional provision). The total net cost to modify statewide systems in 
the final rule is $810,000, and the total Federal costs is $534,600. 
This rule is not subject to the requirements of E.O. 13771 because this 
rule results in no more than de minimis costs.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act (Pub. L. 104-4) requires agencies 
to prepare an assessment of anticipated costs and benefits before 
promulgating any rule that may result in an annual expenditure by 
State, local, and Tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation). That threshold level is currently approximately $154 
million. This rule does not impose any mandates on State, local, or 
Tribal governments, or the private sector that will result in an annual 
expenditure of $154 million or more.

Congressional Review

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of lnformation and Regulatory Affairs designated this rule 
as not a 'major rule' as defined by 5 U.S.C. 804(2).

Assessment of Federal Regulations and Policies on Families

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 requires Federal agencies to determine whether a policy or 
regulation may affect family well-being. If the agency's determination 
is affirmative, then the agency must prepare an impact assessment 
addressing seven criteria specified in the law. This regulation makes 
technical changes in the child support regulations. This regulation 
will not have an adverse impact on family well-being as defined in the 
legislation.

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 governments and 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. This rule does not have federalism impact as defined 
in the Executive Order.

List of Subjects

45 CFR Part 302

    Child support, State Plan Requirements.

45 CFR Part 303

    Child support, Standards for program operations.

45 CFR Part 305

    Child support, Program performance measures, Standards, Financial 
incentives, and Penalties.

45 CFR Part 307

    Child support, Computerized support enforcement systems.

45 CFR Part 309

    Child support, Tribal child support enforcement (IV-D) program.

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

    Dated: May 29, 2020.
Lynn A. Johnson,
Assistant Secretary for Children and Families.
    Approved: May 29, 2020.
Alex M. Azar II,
Secretary.

    For the reasons discussed above, the Department of Health and Human 
Services amends 45 CFR chapter III as follows:

PART 302--STATE PLAN REQUIREMENTS

0
1. The authority citation for part 302 continues to read as follows:

    Authority: 42 U.S.C. 651 through 658, 659a, 660, 664, 666, 667, 
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and 1396(k).


Sec.  302.33   [Amended]

0
2. Amend Sec.  302.33 by:
0
a. Removing ``Annual $25 fee'' and adding in its place ``Annual 
collection fee'' in the paragraph (e) subject heading;
0
b. Removing the dollar amount ``$25'' and adding in its place``$35'' 
wherever it appears in paragraphs (e)(1) introductory text and (e)(2), 
(4), and (5); and
0
c. Removing the dollar amount ``$500'' and adding in its place ``$550'' 
in paragraphs (e)(1)(i) and (e)(3) introductory text.


Sec.  302.51  [Amended]

0
3. Amend Sec.  302.51 in paragraphs (a)(5)(i) and (ii) by removing the 
dollar amount ``$25'' and adding in its place ``$35'' wherever it 
appears.

PART 303--STANDARDS FOR PROGRAM OPERATIONS

0
4. The authority citation for part 303 continues to read as follows:

    Authority: 42 U.S.C. 651 through 658, 659a, 660, 663, 664, 666, 
667, 1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), and 
1396(k), and 25 U.S.C. 1603(12) and 1621e.


Sec.  303.7   [Amended]

0
5. Amend Sec.  303.7 in paragraph (f) by removing the dollar amount 
``$25'' and adding in its place ``$35'' wherever it appears.

0
6. Amend Sec.  303.11 by revising paragraph (b)(9)(ii) to read as 
follows:


Sec.  303.11  Case closure criteria.

* * * * *
    (b) * * *
    (9) * * *
    (ii) Both SSI payments and either Social Security Disability 
Insurance (SSDI) or Social Security Retirement (SSR) benefits under 
title II of the Act.
* * * * *


Sec.  303.71   [Removed]

0
7. Remove Sec.  303.71.


Sec.  303.73  [Removed]

0
8. Remove Sec.  303.73.

0
9. Amend Sec.  303.108 by revising the subject heading and the first 
sentence in paragraph (c) to read as follows:


Sec.  303.108  Quarterly wage and unemployment compensation claims 
reporting to the National Directory of New Hires.

* * * * *
    (c) What timeframes apply for reporting quarterly wage and 
unemployment compensation claims data? The State shall report wage 
information for the reporting period no later than the end of the 
second month following the reporting period. * * *
* * * * *

[[Page 35208]]

PART 305--PROGRAM PERFORMANCE MEASURES, STANDARDS, FINANCIAL 
INCENTIVES, AND PENALTIES

0
10. The authority citation for part 305 continues to read as follows:

    Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 
1302.


Sec.  305.65  [Amended]

0
11. Amend Sec.  305.65 by removing ``Sec.  305.2'' and adding in its 
place ``Sec.  305.1'' in paragraph (b).

PART 307--COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS

0
12. The authority citation for part 307 continues to read as follows:

    Authority: 42 U.S.C. 652 through 658, 664, 666 through 669A, and 
1302.

0
13. Amend Sec.  307.11 by revising paragraphs (c)(3)(i) and (ii), and 
adding paragraph (c)(3)(iii) as follows:


Sec.  307.11   Functional requirements for computerized support 
enforcement systems in operation by October 1, 2000.

* * * * *
    (c) * * *
    (3) * * *
    (i) Identify cases which have been previously identified as 
involving a noncustodial parent who is a recipient of Supplemental 
Security Income (SSI) payments or concurrent SSI payments and Social 
Security Disability Insurance (SSDI) or Social Security Retirement 
(SSR) benefits under title II of the Act, to prevent garnishment of 
these funds from the noncustodial parent's financial account; and
    (ii) Return funds to a noncustodial parent, within 5 business days 
after the agency determines that SSI payments or concurrent SSI 
payments and SSDI or SSR benefits under title II of the Act, in the 
noncustodial parent's financial account have been incorrectly 
garnished.
    (iii) At the option of the State, identify cases involving a 
noncustodial parent who is a recipient of concurrent SSI payments and 
either SSDI or SSR benefits under title II of the Act and prevent 
garnishment of these funds from the noncustodial parent through an 
income withholding order; and return funds to a noncustodial parent in 
accordance with Sec.  303.100(a)(8), after the agency determines that 
concurrent SSI payments and either SSDI or SSR benefits have been 
incorrectly garnished from the noncustodial parent through an income 
withholding order.
* * * * *


Sec.  307.30   [Removed]

0
14. Remove Sec.  307.30.


Sec.  307.31  [Removed]

0
15. Remove Sec.  307.31.

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

0
16. The authority citation for part 309 continues to read as follows:

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


Sec.  309.20   [Amended]

0
17. Amend Sec.  309.20 in paragraph (b) by removing the words ``Tribal 
Child Support Enforcement Program, 370 L'Enfant Promenade, SW, 
Washington, DC 20447'' and adding in their place the words ``Federal 
Office of Child Support Enforcement''.


Sec.  309.75   [Amended]

0
18. Amend Sec.  309.75 in paragraph (d) by removing the words ``OMB 
Circular A-133'' and adding in their place the words ``45 CFR part 75, 
subpart F''.


Sec.  309.155  [Amended]

0
19. Amend Sec.  309.155 in paragraph (g) by removing the words ``OMB 
Circular A-87'' and adding in their place the words ``45 CFR part 75, 
subpart E''.


Sec.  309.170   [Amended]

0
20. Amend Sec.  309.170 in paragraph (a) by removing the words ``OCSE-
34A'' and adding in their place the words ``OCSE-34'', and by removing 
``30'' and adding in its place ``45''.

[FR Doc. 2020-12188 Filed 6-8-20; 8:45 am]
 BILLING CODE 4184-42-P